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REGISTERED NUMBER: 03517787 (England and Wales)















K.E.LUNNESS AGGREGATES LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MAY 2024






K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024










Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 15


K.E.LUNNESS AGGREGATES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2024







DIRECTOR: K E Lunness



SECRETARY: G M Lunness



REGISTERED OFFICE: Manor House
Beckingham Road
Walkeringham
Doncaster
DN10 4AZ



REGISTERED NUMBER: 03517787 (England and Wales)



INDEPENDENT AUDITORS: Xeinadin Audit Limited
Sidings House
Sidings Court
Lakeside
Doncaster
South Yorkshire
DN4 5NU



BANKERS: National Westminster Bank Plc
13 Boothferry Road
Goole
DN14 5DE

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024


The director presents his strategic report for the year ended 31 May 2024.

REVIEW OF BUSINESS
The Company's principal activity is the supply and distribution of aggregates which the director plans to continue for the foreseeable future.

Performance is in line with the Directors expectations. In the past year the business has heavily invested in plant.

FINANCIAL KEY PERFORMANCE INDICATORS
2024 2023
Turnover £10,563,881 £11,681,561

Profit before Finance Costs and Depreciation £753,112 £415,292

Profit before Finance Costs and Depreciation Percentage 7.1% 3.6%

Net Profit / (Loss) before Taxation £105,787 (£284,488)

Net Cash in Hand £23,144 £4,580

Net Current (Liabilities) (£390,058) (£648,632)

Net Assets £1,222,756 £1,126,632


PRINCIPAL RISKS AND UNCERTAINTIES
Sales and Profit Risk
The company's turnover has increased on the prior year due to investment, and the directors aims to grow the business, drive efficiencies and increase profitability by the use of the latest technology and processes.

Debt Risk
Due to the broad customer base, this reduces the exposure to the loss of a single customer.

Liquidity Risk
The director monitors the Company and its cash flow on an ongoing basis to ensure it is adequate.

ONGOING DEVELOPMENTS AND FUTURE STRATEGY
The Company's strategy is to continue to grow the turnover and the business, and continue to improve efficiencies and maximise its share of the market place.

ON BEHALF OF THE BOARD:





K E Lunness - Director


21 February 2025

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 MAY 2024


The director presents his report with the financial statements of the company for the year ended 31 May 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of The principal activity of the company in the year under review was that of the sale and transportation of aggregates.

DIVIDENDS
No interim dividend was paid during the year. The director recommends a final dividend of £20,000 per share.

The total distribution of dividends for the year ended 31 May 2024 will be £40,000 (2023: £13,500).

DIRECTOR
K E Lunness held office during the whole of the period from 1 June 2023 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





K E Lunness - Director


21 February 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
K.E.LUNNESS AGGREGATES LIMITED


Opinion
We have audited the financial statements of K.E.Lunness Aggregates Limited (the 'company') for the year ended 31 May 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
K.E.LUNNESS AGGREGATES LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
K.E.LUNNESS AGGREGATES LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Company, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements.

As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation on the financial statements, such as the Companies Act 2006 and FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procedures performed by the engagement team include:

- Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud;
- Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
- Evaluation of management's controls designed to prevent and detect irregularities;
- Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;
- Assessing and evaluating the business rationale of significant transactions outside the normal course of business;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Review of correspondence with regulators in so far as they are related to the financial statements;
- Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
K.E.LUNNESS AGGREGATES LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Kelvin Fitton BA FCA (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited
Sidings House
Sidings Court
Lakeside
Doncaster
South Yorkshire
DN4 5NU

25 February 2025

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   

TURNOVER 10,563,881 11,681,561

Cost of sales 9,290,440 10,507,240
GROSS PROFIT 1,273,441 1,174,321

Administrative expenses 1,067,064 1,334,416
206,377 (160,095 )

Other operating income 48,000 8,059
OPERATING PROFIT/(LOSS) 4 254,377 (152,036 )

Interest receivable and similar income - 13
254,377 (152,023 )

Interest payable and similar expenses 5 148,590 132,465
PROFIT/(LOSS) BEFORE TAXATION 105,787 (284,488 )

Tax on profit/(loss) 6 (30,337 ) (16,333 )
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

136,124

(268,155

)

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   

PROFIT/(LOSS) FOR THE YEAR 136,124 (268,155 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

136,124

(268,155

)

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

BALANCE SHEET
31 MAY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 2,081,967 2,519,783

CURRENT ASSETS
Stocks 9 400,588 406,945
Debtors 10 1,936,327 2,281,985
Cash at bank 23,144 4,580
2,360,059 2,693,510
CREDITORS
Amounts falling due within one year 11 2,750,117 3,342,142
NET CURRENT LIABILITIES (390,058 ) (648,632 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,691,909

1,871,151

CREDITORS
Amounts falling due after more than one
year

12

(181,933

)

(477,957

)

PROVISIONS FOR LIABILITIES 16 (287,220 ) (266,562 )
NET ASSETS 1,222,756 1,126,632

CAPITAL AND RESERVES
Called up share capital 17 2 2
Revaluation reserve 18 77,500 77,500
Retained earnings 18 1,145,254 1,049,130
SHAREHOLDERS' FUNDS 1,222,756 1,126,632

The financial statements were approved by the director and authorised for issue on 21 February 2025 and were signed by:





K E Lunness - Director


K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 June 2022 2 1,330,785 77,500 1,408,287

Changes in equity
Dividends - (13,500 ) - (13,500 )
Total comprehensive income - (268,155 ) - (268,155 )
Balance at 31 May 2023 2 1,049,130 77,500 1,126,632

Changes in equity
Dividends - (40,000 ) - (40,000 )
Total comprehensive income - 136,124 - 136,124
Balance at 31 May 2024 2 1,145,254 77,500 1,222,756

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 880,570 667,396
Interest paid (12,925 ) (12,687 )
Interest element of hire purchase payments
paid

(135,665

)

(119,778

)
Tax paid 50,995 268,860
Net cash from operating activities 782,975 803,791

Cash flows from investing activities
Purchase of tangible fixed assets (107,954 ) (562,983 )
Sale of tangible fixed assets 113,796 25,145
Interest received - 13
Net cash from investing activities 5,842 (537,825 )

Cash flows from financing activities
Loan repayments in year (60,001 ) (60,000 )
HP capital repayments in year (670,252 ) (329,779 )
Equity dividends paid (40,000 ) (13,500 )
Net cash from financing activities (770,253 ) (403,279 )

Increase/(decrease) in cash and cash equivalents 18,564 (137,313 )
Cash and cash equivalents at beginning of
year

2

4,580

141,893

Cash and cash equivalents at end of year 2 23,144 4,580

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024


1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit/(loss) before taxation 105,787 (284,488 )
Depreciation charges 470,113 535,862
Profit on disposal of fixed assets (38,138 ) (15,826 )
Finance costs 148,590 132,465
Finance income - (13 )
686,352 368,000
Decrease in stocks 6,357 123,873
Decrease/(increase) in trade and other debtors 345,658 (46,065 )
(Decrease)/increase in trade and other creditors (157,797 ) 221,588
Cash generated from operations 880,570 667,396

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2024
31.5.24 1.6.23
£    £   
Cash and cash equivalents 23,144 4,580
Year ended 31 May 2023
31.5.23 1.6.22
£    £   
Cash and cash equivalents 4,580 141,893


K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.6.23 Cash flow At 31.5.24
£    £    £   
Net cash
Cash at bank 4,580 18,564 23,144
4,580 18,564 23,144
Debt
Finance leases (1,095,450 ) 670,252 (425,198 )
Debts falling due within 1 year (60,000 ) - (60,000 )
Debts falling due after 1 year (120,000 ) 60,000 (60,000 )
(1,275,450 ) 730,252 (545,198 )
Total (1,270,870 ) 748,816 (522,054 )

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024


1. STATUTORY INFORMATION

K.E.Lunness Aggregates Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principal place of business is Betteras Hill Quarry, Brotherton Road, Monk Fryston, LS25 5HD

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going Concern
On the basis of their assessment of the company's financial position, the directors have no significant uncertainties that the company will continue in operational existence for the foreseeable future, therefore the director considers it appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates
The company prepares its financial statements in accordance with FRS 102, the application of which often requires judgements to be made by management when formulating the company's financial position and results. The directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period, or in the period of the review and future periods if the revision affects both current and future periods.

The valuation of stock of aggregates involves assessing production costs and potential impairment in ascertaining the figure of stock reported in the accounts (note 10.)

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer;
- the Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably; and
- it is probable that the Company will receive the consideration due under the transaction.

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold Property- not provided
Plant and machinery- 20% on reducing balance
Fixtures and fittings- 20% on cost
Motor vehicles- 25% on cost
Computer equipment- Straight line over 3 years


Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
Financial assets and liabilities are recognised when the company becomes party to the contractual provisions for the relevant instrument. All of the company's financial instruments are cash or basic debt instruments, comprising trade receivables and payables, other receivables and payables and a related party loan. Such financial instruments are measures initially at the transaction price and subsequently at amortised cost. Financial instruments are considered for objective evidence of impairment at the end of each reporting period and any impairment is recognised in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Trade and other debtors
Trade and other debtors are measured at transaction price less any impairment unless the arrangement constitutes a financing transaction in which case the transaction is measured at the present value of the future receipts discounted at the prevailing market rate of interest. Loans are initially measured at fair value and are subsequently measured at amortised cost using the effective interest method less any impairment.

Trade and other creditors
Trade and other creditors are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,307,565 1,422,845
Social security costs 117,772 124,549
Other pension costs 21,330 17,983
1,446,667 1,565,377

The average number of employees during the year was as follows:
2024 2023

Office staff 7 14
Production staff 19 14
26 28

2024 2023
£    £   
Director's remuneration 11,960 11,960

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


4. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 23,943 14,729
Depreciation - owned assets 29,855 45,432
Depreciation - assets on hire purchase contracts 440,257 490,430
Profit on disposal of fixed assets (38,138 ) (15,826 )
Auditors' remuneration 10,900 5,005
Auditors' remuneration for non audit work 6,850 17,095

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest 12,925 12,687
Hire purchase 135,665 119,778
148,590 132,465

6. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax (50,995 ) -

Deferred tax 20,658 (16,333 )
Tax on profit/(loss) (30,337 ) (16,333 )

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


6. TAXATION - continued

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit/(loss) before tax 105,787 (284,488 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 20.003%)

26,447

(56,906

)

Effects of:
Expenses not deductible for tax purposes - 425
Utilisation of tax losses (81,377 ) -
Adjustments to tax charge in respect of previous periods (50,995 ) -
Unwinding of timing differences 75,588 -
Enhanced Capital Allowances - (27,888 )
Difference in tax rates - movement - (17,574 )
Difference in tax rates - 85,610
Total tax credit (30,337 ) (16,333 )

7. DIVIDENDS
2024 2023
£    £   
Interim 40,000 13,500

8. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST OR VALUATION
At 1 June 2023 210,000 4,916,040 4,145
Additions - 4,120 -
Disposals - (144,783 ) -
At 31 May 2024 210,000 4,775,377 4,145
DEPRECIATION
At 1 June 2023 - 2,672,660 3,799
Charge for year - 439,832 346
Eliminated on disposal - (93,255 ) -
At 31 May 2024 - 3,019,237 4,145
NET BOOK VALUE
At 31 May 2024 210,000 1,756,140 -
At 31 May 2023 210,000 2,243,380 346

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


8. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1 June 2023 309,143 19,638 5,458,966
Additions 101,960 1,874 107,954
Disposals (76,928 ) (7,194 ) (228,905 )
At 31 May 2024 334,175 14,318 5,338,015
DEPRECIATION
At 1 June 2023 246,523 16,201 2,939,183
Charge for year 27,736 2,198 470,112
Eliminated on disposal (52,798 ) (7,194 ) (153,247 )
At 31 May 2024 221,461 11,205 3,256,048
NET BOOK VALUE
At 31 May 2024 112,714 3,113 2,081,967
At 31 May 2023 62,620 3,437 2,519,783

Cost or valuation at 31 May 2024 is represented by:

Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
Valuation in 2019 77,500 - -
Cost 132,500 4,775,377 4,145
210,000 4,775,377 4,145

Motor Computer
vehicles equipment Totals
£    £    £   
Valuation in 2019 - - 77,500
Cost 334,175 14,318 5,260,515
334,175 14,318 5,338,015

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


8. TANGIBLE FIXED ASSETS - continued

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2024 2023
£    £   
Cost 132,500 132,500

Freehold land and buildings were valued on an open market basis on 31 May 2019 by Andrew Houlden BSc (Hons) MRICS FAAV .

The Director considers the valuation to still be appropriate at 31 May 2024.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST OR VALUATION
At 1 June 2023 4,590,701 35,700 4,626,401
Additions - 101,961 101,961
Disposals (115,500 ) (35,700 ) (151,200 )
Transfer to ownership (2,632,205 ) - (2,632,205 )
At 31 May 2024 1,842,996 101,961 1,944,957
DEPRECIATION
At 1 June 2023 2,406,457 17,106 2,423,563
Charge for year 427,387 12,870 440,257
Eliminated on disposal (68,191 ) (17,106 ) (85,297 )
Transfer to ownership (1,713,796 ) - (1,713,796 )
At 31 May 2024 1,051,857 12,870 1,064,727
NET BOOK VALUE
At 31 May 2024 791,139 89,091 880,230
At 31 May 2023 2,184,244 18,594 2,202,838

9. STOCKS
2024 2023
£    £   
Stocks 400,588 406,945

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,925,645 2,211,197
Other debtors - 42,089
Prepayments 10,682 28,699
1,936,327 2,281,985

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 60,000 60,000
Hire purchase contracts (see note 14) 303,265 737,493
Trade creditors 1,424,745 1,557,907
Social security and other taxes 27,563 24,890
VAT 61,154 88,781
Other creditors 48,657 19,258
Directors loan account 22,584 196,419
Factoring account 766,899 560,793
Accrued expenses 35,250 96,601
2,750,117 3,342,142

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 13) 60,000 120,000
Hire purchase contracts (see note 14) 121,933 357,957
181,933 477,957

None of the amounts due after more than one year are due after more than five years.

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 60,000 60,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 60,000 60,000

Amounts falling due between two and five years:
Bank loans - 2-5 years - 60,000

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year 303,265 737,493
Between one and five years 121,933 357,957
425,198 1,095,450

15. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 120,000 180,000
Hire purchase contracts 425,198 1,095,450
545,198 1,275,450

Bank borrowings are secured by way of legal charges over the company's freehold property.

The hire purchase liabilities are secured on the relevant assets.

The factoring account has a fixed and floating charge secured over all assets, cash and amounts coming due.

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 287,220 266,562

Deferred
tax
£   
Balance at 1 June 2023 266,562
Provided during year 20,658
Balance at 31 May 2024 287,220

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
2 Ordinary £1 2 2

K.E.LUNNESS AGGREGATES LIMITED (REGISTERED NUMBER: 03517787)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


17. CALLED UP SHARE CAPITAL - continued

Ordinary Shares have full rights in the company with regards to voting, dividend and capital distribution

18. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 June 2023 1,049,130 77,500 1,126,630
Profit for the year 136,124 136,124
Dividends (40,000 ) (40,000 )
At 31 May 2024 1,145,254 77,500 1,222,754

19. RELATED PARTY DISCLOSURES

Newthorpe Aggregates Limited
A company in which K.E. Lunness is a director and shareholder

During the year the company made sales, at an arms length basis, of £588,735 (2023: £705,384). During the year the company also made purchases of £856,263 (2023: £670,529).
At the year end date £46,569 was due to (2023: £42,089 due from) Newthorpe Aggregates Ltd.

New-Con (Yorkshire) Ltd - formally Newthorpe Contracting Ltd
A company in which K.E. Lunness is a director and shareholder

During the year the Company made sales, on an arms length basis in the sum of £13,484 (2023: £41,668). There is a loan due from Newthorpe Contracting Ltd with no set repayment date. The amount outstanding on the loan at the year end was £Nil (2023: £49,937).

20. ULTIMATE CONTROLLING PARTY

The controlling party is K E Lunness by virtue of holding 100% of the ordinary share capital.