Company registration number 03296833 (England and Wales)
CROMAR BUILDING PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
CROMAR BUILDING PRODUCTS LIMITED
COMPANY INFORMATION
Directors
M E Marshall
C N Marshall
D J Marshall
Company number
03296833
Registered office
3, 4 & 5 Northside Industrial Estate
Whitley Bridge
Goole
East Yorkshire
United Kingdom
DN14 0GH
Auditor
Duncan & Toplis Audit Ltd
14 London Road
Newark
Nottinghamshire
NG24 1TW
CROMAR BUILDING PRODUCTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
CROMAR BUILDING PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.

Review of the Business

The principal activity of the Company continued to be that of a “one stop shop” for all product groups into the building trade. The Company is split into two trading divisions. The core division continues to be the manufacture and distribution of roofing and waterproofing products whilst the second division offers a range of products including sealants, adhesives, building chemicals and other related products.

 

We aim to present a balanced and comprehensive review of the developments and performance of our Company during the year and its financial position at the year end. Our review is consistent with the size and non-complex nature of the Company and is written in the context of the risks and uncertainties we face.

 

The Company has had a quiet year and in line with expectations set by the directors. The construction industry has remained flat, and demand has not increased across all sectors.

 

We operate in a competitive and price sensitive market and unfortunately as a result of all the issues stated above, we have been forced to go to market with several price reductions this year,

But have improved margins overall, and our customer base has remained loyal,

 

However, the market conditions have led to an increase in the Company’s trading margin to 26% from 23%. Despite the turnover being reduced. This has shown itself to be a more profitable year. The margin achieved is considered a reflection of the market at the year-end.

 

The key financial performance indicators in the financial year were as follows:

 

 

2024

2023

 

£’000

£’000

Turnover

37,405

37,827

Turnover growth

(422)

(2,253)

Turnover growth %

(1%)

(15)%

Gross margin %

31%

26%

Profit before tax

5,928

4,290

 

The Company remains in a very strong financial position at the year end. It’s net assets at the year-end stood at £15.9 million, up from £12.3 million at the previous year end. This is a reflection of the success of the company this financial year and the directors are pleased that the Company’s financial performance has been converted into a strong net asset and cash position. The company’s net current asset level gives it the ability to meet the continuing high demand for products and sufficient liquidity to invest in new and existing product lines to further develop the two division’s market share and profitability.

Principal risks and uncertainties

The Company operates in a highly competitive market place which brings risks associated with price competition and the resulting impact on margins. The Company mitigates this risk by constantly reviewing manufacturing efficiencies, logistics and purchasing efficiencies.

 

The Company’s principal financial instruments comprise of bank balances, trade debtors and trade creditors. The Company finances its working capital requirements through the cash flow generated from profitable trading as well as the liquid assets it has invested in from retained profits brought forward. In order to manage risk, maintain flexibility and act as a potential source of finance for future growth the Company retains a facility with its main bankers.

 

CROMAR BUILDING PRODUCTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Development and performance

Cromar Building Products Limited has gained an enviable reputation as a leader in bringing new products to the UK building products market place. We continue to invest resources and time into developing our product range and researching new products.

 

Statement by the directors in performance of their statutory duties in accordance with S172(1) Companies Act 2006

The board of directors of the company consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regards to the shareholders and matters set out in S172(1)(a-f) of the Companies Act 2006) in the decisions taken during the year ended 31 March 2024.

 

Employee Interests

Consultation and discussion with all employees takes place throughout the organisation. Directors’ meetings are held regularly. Matters of importance that affect the financial and economic performance of the business are communicated to the employees.

 

Long term decision making

The board meets regularly to review performance and make decisions which impact the future performance of the company. The board make decisions on significant contracts to ensure they meet internal guidelines and support the future performance of the company.

 

Engagement with suppliers, customers and others in a business relationship with the company

We aim to deal with our customers and suppliers with a high degree of integrity as we rely on them to help us provide supplies and services in order to operate our business.

 

Community and environment

As a locally owned building trade supplier company, the company takes its responsibilities to its local communities and environment seriously.

 

High standard of business conduct

As a locally owned company, the company is actively focussed on maintaining its reputation. The company regularly reviews its operations and performance to ensure they are legally compliant, economically efficient, and both socially and environmentally ethical.

 

Acting fairly

The company, and its board of directors, make decisions taking into account the needs of the company, its shareholders and its wider stake holding community.

 

On behalf of the board

C N Marshall
Director
17 February 2025
CROMAR BUILDING PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activity of the company continued to be the manufacture and distribution of roofing and waterproofing products to the building trade.

Results and dividends

The results for the year are set out on page 10.

During the year, dividends on Ordinary shares were paid amounting to £813,984 (2023: £1,684,664). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M E Marshall
C N Marshall
D J Marshall
Auditor

The auditor, Duncan & Toplis Audit Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The UK annual quantity of emissions (in tonnes) of carbon dioxide equivalent resulting from the combustion of gas was 0 Carbon Tonnes (0 kWh).

 

The UK annual quantity of emissions (in tonnes) of carbon dioxide equivalent resulting from the purchase of electricity for own use was 46 Carbon Tonnes (290,395 kWh)

 

The UK annual quantity of emissions (in tonnes) of carbon dioxide equivalent resulting from the diesel fuel used to power machinery was 528 Carbon Tonnes (2,210,275 kWh)

 

The UK annual quantity of emissions (in tonnes) of carbon dioxide equivalent resulting from fuel for use in business travel was 44 Carbon Tonnes (16,676 kWh).

 

Cromar Building Products Limited uses a range of methodologies to calculate the above information, including utility bills and the UK Government GHG Conversion Factors for Company Reporting.

 

Cromar Building Products Limited engages 74 members of staff, and uses a total of 618 Carbon Tonnes of energy, equating to 8 Carbon Tonnes per member of staff.

 

Cromar Building Products Limited is committed to improving energy efficiency and continuously reviews energy usage to see if improvements can be made without negatively impacting customers or the supply chain.

 

Strategic report

The strategic report for the year ended 31 May 2024 contains details of the company’s strategy, business environment, business performance, future developments and principal risks and uncertainties.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

CROMAR BUILDING PRODUCTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
On behalf of the board
C N Marshall
Director
17 February 2025
CROMAR BUILDING PRODUCTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 5 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are required to:

 

 

The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

CROMAR BUILDING PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CROMAR BUILDING PRODUCTS LIMITED
- 6 -
Opinion

We have audited the financial statements of Cromar Building Products Limited (the ' company') for the year ended 31st May 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Statement of Cash Flows and 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:

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 Auditor's 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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Directors' Report and the Directors' Responsibilities Statement, but does not include the financial statements and our Auditors' Report 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 our audit:

CROMAR BUILDING PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CROMAR BUILDING PRODUCTS LIMITED
- 7 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page seven, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

CROMAR BUILDING PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CROMAR BUILDING PRODUCTS LIMITED
- 8 -
Auditor's 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 an auditor's report 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.

 

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

 

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

 

Secondly, the company is subject to other laws and regulations where the consequence for noncompliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations and Employment laws.

 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a verification of the company's vehicle operating license. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

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 Auditors' Report.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor's report.

CROMAR BUILDING PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CROMAR BUILDING PRODUCTS LIMITED
- 9 -

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 an auditor's report 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.

Rachel Rudkin FCCA (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Ltd
19 February 2025
Chartered Accountants
Statutory Auditor
14 London Road
Newark
Nottinghamshire
NG24 1TW
CROMAR BUILDING PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
37,405,354
37,827,004
Cost of sales
(25,711,307)
(27,974,623)
Gross profit
11,694,047
9,852,381
Distribution costs
(1,981,899)
(1,874,330)
Administrative expenses
(3,816,061)
(3,694,420)
Other operating income
-
0
6,350
Operating profit
4
5,896,087
4,289,981
Interest receivable and similar income
8
32,032
3,517
Interest payable and similar expenses
9
(413)
(3,736)
Profit before taxation
5,927,706
4,289,762
Tax on profit
10
(1,506,517)
(855,959)
Profit for the financial year
4,421,189
3,433,803

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CROMAR BUILDING PRODUCTS LIMITED
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
46,123
53,299
Tangible assets
13
1,038,508
907,870
1,084,631
961,169
Current assets
Stocks
15
4,609,666
5,262,584
Debtors
16
8,764,991
8,988,956
Cash at bank and in hand
8,762,918
3,721,662
22,137,575
17,973,202
Creditors: amounts falling due within one year
17
(7,098,920)
(6,458,805)
Net current assets
15,038,655
11,514,397
Total assets less current liabilities
16,123,286
12,475,566
Provisions for liabilities
(210,497)
(169,982)
Net assets
15,912,789
12,305,584
Capital and reserves
Called up share capital
20
9,000
9,000
Profit and loss reserves
15,903,789
12,296,584
Total equity
15,912,789
12,305,584
The financial statements were approved by the board of directors and authorised for issue on 17 February 2025 and are signed on its behalf by:
M E Marshall
Director
Company Registration No. 03296833
CROMAR BUILDING PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2022
9,000
10,547,445
10,556,445
Year ended 31 May 2023:
Profit and total comprehensive income
-
3,433,803
3,433,803
Dividends
11
-
(1,684,664)
(1,684,664)
Balance at 31 May 2023
9,000
12,296,584
12,305,584
Year ended 31 May 2024:
Profit and total comprehensive income
-
4,421,189
4,421,189
Dividends
11
-
(813,984)
(813,984)
Balance at 31 May 2024
9,000
15,903,789
15,912,789
CROMAR BUILDING PRODUCTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
7,714,865
3,522,623
Interest paid
(413)
(3,736)
Net income taxes paid
(1,257,839)
(760,000)
Net cash inflow from operating activities
6,456,613
2,758,887
Investing activities
Purchase of tangible fixed assets
(432,725)
(219,955)
Proceeds on disposal of tangible fixed assets
8,200
-
0
Loans made in the period
(208,880)
-
0
Interest received
32,032
3,517
Net cash used in investing activities
(601,373)
(216,438)
Financing activities
Dividends paid
(813,984)
(1,684,664)
Net cash used in financing activities
(813,984)
(1,684,664)
Net increase in cash and cash equivalents
5,041,256
857,785
Cash and cash equivalents at beginning of year
3,721,662
2,863,877
Cash and cash equivalents at end of year
8,762,918
3,721,662
CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
1
Accounting policies
Company information

Cromar Building Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3, 4 & 5 Northside Industrial Estate, Whitley Bridge, Goole, East Yorkshire, United Kingdom, DN14 0GH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

Specifically, the directors have considered the impact of the current economic challenges on the company’s trade, workforce and supply chain, as well as the wider economy. The directors are confident that they have in place plans to deal with any negative changes in trade that may arise.

The company has been able to trade in line with expectations in the period since 1 June 2024 to present and has continued to generate profits and operating cash flows. The business has remained resilient to supply chain challenges relating to various market events and the Directors are confident that any further disruption can be managed. The company has no external debt and has a strong net asset base. Even in extreme downside scenarios the Directors have options available to them in order to preserve cash flow and allow the business to settle its liabilities as they fall due. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Licenses and software
33% on a straight line basis
Intellectual property
10% on a straight line basis
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold property improvements
25% on a straight line basis
Plant and machinery
5% to 25% on a straight line basis
Fixtures, fittings & equipment
20% to 33% on a straight line basis
Motor vehicles
25% on a straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, 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 estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Depreciation

The depreciation policy has been set accordingly to managements experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost or effort and therefore amounts are charged annually. The depreciation charged during the year was £302,087 (2023: £266,033) which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Stock provisions

At each reporting date an assessment is made for provisions required to properly recognise damaged, slow moving and obsolete goods. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss and provided for in the balance sheet. Reversals of impairment are also recognized in profit and loss where these arise.

Rebate accruals

At each reporting date an assessment is made for provisions required to properly recognise rebates due to customers. The provision is calculated on the basis of a constructive obligation and reliably estimated on the predicted annual outflow of economic benefit. The provision is recognised in profit and loss and provided in the balance sheet.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Roofing and waterproofing products
33,678,789
33,705,392
Builders range
3,726,565
4,121,612
37,405,354
37,827,004
CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Turnover analysed by geographical market
UK
36,370,611
36,434,130
Europe
969,724
1,335,655
Rest of the World
65,019
57,219
37,405,354
37,827,004
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(225,097)
35,457
Depreciation of owned tangible fixed assets
302,087
266,033
Profit on disposal of tangible fixed assets
(8,200)
-
Amortisation of intangible assets
7,176
7,177
Operating lease charges
471,763
472,641
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,500
28,400
For other services
Taxation compliance services
-
0
2,735
All other non-audit services
-
0
7,246
-
9,981
CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Number of production and distribution staff
35
30
Number of sales staff
16
16
Number of administration staff
11
12
Number of management staff
12
12
Total
74
70

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,567,016
2,312,166
Social security costs
272,819
254,391
Pension costs
89,466
63,169
2,929,301
2,629,726
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
73,521
66,710
Company pension contributions to defined contribution schemes
28,000
-
101,521
66,710

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

The directors are considered to be key management of the company.

 

During the year the directors, who are also shareholders, received dividends on Ordinary 'A', 'B' and 'C' Shares amounting to £813,984 (2023: £1,684,664).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
32,032
3,517
CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
413
3,736
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,466,002
865,775
Adjustments in respect of prior periods
-
0
(1,328)
Total current tax
1,466,002
864,447
Deferred tax
Origination and reversal of timing differences
40,515
(8,488)
Total tax charge
1,506,517
855,959

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
5,927,706
4,289,762
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
1,481,927
858,070
Tax effect of expenses that are not deductible in determining taxable profit
21,071
8,711
Adjustments in respect of prior years
-
0
(1,328)
Other permanent differences
3,012
(8,746)
Effect of change in deferred tax rates
-
0
(1,933)
Movement in deferred tax not recognised
507
1,185
Taxation charge for the year
1,506,517
855,959
11
Dividends
2024
2023
£
£
Interim paid
813,984
1,684,664
CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
12
Intangible fixed assets
Licenses and software
Intellectual property
Total
£
£
£
Cost
At 1 June 2023 and 31 May 2024
28,305
70,000
98,305
Amortisation and impairment
At 1 June 2023
26,923
18,083
45,006
Amortisation charged for the year
176
7,000
7,176
At 31 May 2024
27,099
25,083
52,182
Carrying amount
At 31 May 2024
1,206
44,917
46,123
At 31 May 2023
1,382
51,917
53,299
13
Tangible fixed assets
Leasehold property improvements
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 June 2023
914,772
2,976,696
243,349
4,134,817
Additions
14,859
414,189
3,677
432,725
Disposals
-
0
(52,526)
-
0
(52,526)
At 31 May 2024
929,631
3,338,359
247,026
4,515,016
Depreciation and impairment
At 1 June 2023
867,342
2,131,503
228,102
3,226,947
Depreciation charged in the year
27,598
262,140
12,349
302,087
Eliminated in respect of disposals
-
0
(52,526)
-
0
(52,526)
At 31 May 2024
894,940
2,341,117
240,451
3,476,508
Carrying amount
At 31 May 2024
34,691
997,242
6,575
1,038,508
At 31 May 2023
47,430
845,193
15,247
907,870
CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
14
Financial instruments

All financial assets and liabilities are measured at amortised cost.

15
Stocks
2024
2023
£
£
Raw materials and consumables
1,068,428
1,216,834
Finished goods and goods for resale
3,541,238
4,045,750
4,609,666
5,262,584
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
7,818,581
8,506,069
Other debtors
313,167
66,601
Prepayments and accrued income
633,243
416,286
8,764,991
8,988,956
17
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
4,713,956
4,338,095
Corporation tax
665,891
457,728
Other taxation and social security
505,253
427,424
Other creditors
11,652
310,660
Accruals and deferred income
1,202,168
924,898
7,098,920
6,458,805

At 31 May 2024 the amounts due in respect of the invoice discounting facility was £nil (2023: £nil). The facility is secured over the assets of the company.

CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
18
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
211,799
171,170
Retirement benefit obligations
(1,302)
(1,188)
210,497
169,982
2024
Movements in the year:
£
Liability at 1 June 2023
169,982
Charge to profit or loss
40,515
Liability at 31 May 2024
210,497
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,466
63,169

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the year end, unpaid pension commitments amounted to £11,652 (2023: £10,410).

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' shares of £1 each
6,300
6,300
6,300
6,300
Ordinary 'B' shares of £1 each
1,800
1,800
1,800
1,800
Ordinary 'C' shares of £1 each
900
900
900
900
9,000
9,000
9,000
9,000

Ordinary 'A', 'B' and 'C' shares have full voting and capital distribution (including winding up) rights. Each class of share is entitled to dividends but separate rights are attached to Ordinary 'A', 'B' and 'C' shares.

CROMAR BUILDING PRODUCTS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
221,323
448,767
Between two and five years
548,496
712,002
In over five years
-
0
59,593
769,819
1,220,362
23
Ultimate controlling party

The ultimate controlling party is M E Marshall by virtue of his shareholding and directorship of the company.

24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
4,421,189
3,433,803
Adjustments for:
Taxation charged
1,506,517
855,959
Finance costs
413
3,736
Investment income
(32,032)
(3,517)
Gain on disposal of tangible fixed assets
(8,200)
-
Amortisation and impairment of intangible assets
7,176
7,177
Depreciation and impairment of tangible fixed assets
302,087
266,033
Movements in working capital:
Decrease/(increase) in stocks
652,918
(1,047,823)
Decrease in debtors
432,845
689,360
Increase/(decrease) in creditors
731,952
(982,105)
Cash generated from operations
8,014,865
3,222,623
25
Analysis of changes in net funds
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
3,721,662
5,041,256
8,762,918
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