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REGISTERED NUMBER: 00885849 (England and Wales)













STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

FOR

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 15


HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 AUGUST 2024







DIRECTORS: D G Southouse
J R Bailey
Ms V Vasiliauskaite





REGISTERED OFFICE: Woodside Depot
Polegate Road
Hailsham
East Sussex
BN27 3PG





REGISTERED NUMBER: 00885849 (England and Wales)





AUDITORS: Watson Associates (Audit Services) Ltd
Statutory Auditor
30 - 34 North Street
Hailsham
East Sussex
BN27 1DW

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

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

REVIEW OF BUSINESS
We are satisfied with the performance during the year, which has seen an increase in sales of 41.2% on the prior year.

The following key measures give an overview of the company's financial health:

Key Measures 2024 2023
Gross Profit 16.00% 22.73%
Net Profit 4.15% 3.77%
Debtor Days 31 days 22 days
Creditor Days 42 days 37 days
EBITDA £1,321,624 £935,737

PRINCIPAL RISKS AND UNCERTAINTIES
As with any business the company faces various risks such as competition from other companies, price fluctuations from suppliers and the risk associated with any potential economic downtown. However, the company is well positioned to deal with any of these potential risks

ON BEHALF OF THE BOARD:





J R Bailey - Director


5 March 2025

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 AUGUST 2024

The directors present their report with the financial statements of the company for the year ended 31 August 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of roadway and hard surface construction.

DIVIDENDS
No interim dividend was paid during the year. The directors recommend a final dividend of £49.55 per share.

The total distribution of dividends for the year ended 31 August 2024 will be £ 550,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report.

D G Southouse
J R Bailey
Ms V Vasiliauskaite

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

-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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 AUGUST 2024


AUDITORS
The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J R Bailey - Director


5 March 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED

Opinion
We have audited the financial statements of Hailsham Roadway Construction Co. Limited (the 'company') for the year ended 31 August 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 August 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 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 and the Report of the Directors, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED


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 Directors 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 Directors have been prepared in accordance with applicable legal requirements.

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 Directors.

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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAILSHAM ROADWAY CONSTRUCTION CO.
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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and
determined that the most significant are those that relate to:
- FRS 102 - this is the financial reporting framework with which the company's financial statements must
comply
- Companies Act 2006 - this is the Act of Parliament with which the company must adhere to in the
preparation of its financial statements
- Local tax legislation
Audit procedures performed by the engagement team to detect irregularities, including fraud from instances
of non-compliance with laws and regulations included:
- Discussions with management, including consideration of known or suspected instances of non-compliance
with laws and regulations and fraud;
- Reading key correspondence from appropriate regulatory bodies;
- Reviewing source documents for evidence of unusual or unexpected relationships;
- Reviewing relevant meeting minutes including those of the board of directors;
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks
of material misstatement due to fraud;
- In addressing the risk of fraud through management override of controls, testing the appropriateness of
journal entries and other adjustments; assessing whether the judgements made in making accounting
estimates are indicative of a potential bias; and evaluating the business rationale of any significant
transactions that are unusual or outside the normal course of business whilst also taking into account future
events that are inherently uncertain. We focused on the valuation of stock and debtors; and the assessment
of impairment of tangible assets;
- Testing transactions entered into that are outside of the normal course of the Company's business.
No contradictory evidence was identified which suggested instances of non-compliance with laws and
regulations or instances of fraud.
We considered the risk of fraud through management override and, in response, we incorporated testing of
manual journal entries into our audit approach. We tested journal entries throughout the year, in particular
those posted with unusual account combinations and those posted by unexpected users. We also considered
the influence of personnel and procedures designed to address this risk consisted of a review of the
organisational structure and relationships within the company.
No transactions were identified outside the normal course of business.
Based on the results of our risk assessment we designed our audit procedures to identify and to address
material misstatements in relation to fraud. The segregation of duties were identified as being limited and
these were assessed through transactional testing.
We did not identify any transactions that met the risk criteria. No additional testing was carried out.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on
the financial statements from our general commercial and sector experience, through discussion with the
directors and other management (as required by auditing standards), and from inspection of the group's
regulatory and legal correspondence and discussed with the directors and other management the policies and
procedures regarding compliance with laws and regulations. We communicated identified laws and
regulations throughout our team and remained alert to any indications of non-compliance throughout the
audit.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED

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.

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.




Stephen James Moore FCCA (Senior Statutory Auditor)
for and on behalf of Watson Associates (Audit Services) Ltd
Statutory Auditor
30 - 34 North Street
Hailsham
East Sussex
BN27 1DW

5 March 2025

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
Notes £    £   

TURNOVER 18,136,573 12,846,072

Cost of sales (15,234,482 ) (9,927,210 )
GROSS PROFIT 2,902,091 2,918,862

Administrative expenses (2,052,834 ) (2,363,071 )
OPERATING PROFIT 4 849,257 555,791

Interest receivable and similar income 863 -
850,120 555,791

Interest payable and similar expenses 5 (96,915 ) (72,423 )
PROFIT BEFORE TAXATION 753,205 483,368

Tax on profit 6 (219,430 ) (6,609 )
PROFIT FOR THE FINANCIAL YEAR 533,775 476,759

OTHER COMPREHENSIVE
Current year revaluation
Income tax relating to other
comprehensive

-

-
OTHER COMPREHENSIVE FOR THE
YEAR, NET OF INCOME TAX

-

-
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

533,775

476,759

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

STATEMENT OF FINANCIAL POSITION
31 AUGUST 2024

2024 2023
Notes £    £   
FIXED ASSETS
Tangible assets 8 2,704,978 2,424,329

CURRENT ASSETS
Stocks 9 1,831,038 1,684,429
Debtors 10 2,631,746 1,917,801
Cash at bank and in hand 398,235 39,047
4,861,019 3,641,277
CREDITORS
Amounts falling due within one year 11 (2,914,476 ) (1,760,362 )
NET CURRENT ASSETS 1,946,543 1,880,915
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,651,521

4,305,244

CREDITORS
Amounts falling due after more than one
year

12

1,059,445

916,373

PROVISIONS FOR LIABILITIES 16 586,689 367,259

CAPITAL AND RESERVES
Called up share capital 17 11,100 11,100
Share premium 18 218,900 218,900
Retained earnings 18 2,775,387 2,791,612
SHAREHOLDERS' FUNDS 3,005,387 3,021,612
4,651,521 4,305,244

The financial statements were approved by the Board of Directors and authorised for issue on 5 March 2025 and were signed on its behalf by:





J R Bailey - Director


HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

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

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 September 2022 11,100 2,689,853 218,900 2,919,853

Changes in equity
Dividends - (375,000 ) - (375,000 )
Total comprehensive income - 476,759 - 476,759
Balance at 31 August 2023 11,100 2,791,612 218,900 3,021,612

Changes in equity
Dividends - (550,000 ) - (550,000 )
Total comprehensive income - 533,775 - 533,775
Balance at 31 August 2024 11,100 2,775,387 218,900 3,005,387

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,236,178 1,214,783
Interest paid (3,134 ) (12,013 )
Interest element of hire purchase
payments paid

(93,781

)

(60,410

)
Tax paid - (47,120 )
Net cash from operating activities 1,139,263 1,095,240

Cash flows from investing activities
Purchase of tangible fixed assets (931,581 ) (1,334,111 )
Sale of tangible fixed assets 173,754 73,049
Interest received 863 -
Net cash from investing activities (756,964 ) (1,261,062 )

Cash flows from financing activities
New loans in year 995,595 746,595
Capital repayments in year (730,619 ) (346,283 )
Amount withdrawn by directors - (100 )
Movement in intercompany balance 261,913 346,767
Equity dividends paid (550,000 ) (375,000 )
Net cash from financing activities (23,111 ) 371,979

Increase in cash and cash equivalents 359,188 206,157
Cash and cash equivalents at
beginning of year

2

39,047

(167,110

)

Cash and cash equivalents at end of
year

2

398,235

39,047

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 753,205 483,368
Depreciation charges 471,505 378,915
Loss on disposal of fixed assets 5,676 26,477
Finance costs 96,915 72,423
Finance income (863 ) -
1,326,438 961,183
Increase in stocks (146,609 ) (746,409 )
(Increase)/decrease in trade and other debtors (975,858 ) 1,687,947
Increase/(decrease) in trade and other creditors 1,032,207 (687,938 )
Cash generated from operations 1,236,178 1,214,783

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 August 2024
31.8.24 1.9.23
£    £   
Cash and cash equivalents 398,235 39,047
Year ended 31 August 2023
31.8.23 1.9.22
£    £   
Cash and cash equivalents 39,047 102
Bank overdrafts - (167,212 )
39,047 (167,110 )


HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.9.23 Cash flow At 31.8.24
£    £    £   
Net cash
Cash at bank and in hand 39,047 359,188 398,235
39,047 359,188 398,235
Debt
Finance leases (1,207,858 ) (72,812 ) (1,280,670 )
Debts falling due within 1 year (58,721 ) 4,169 (54,552 )
Debts falling due after 1 year (22,500 ) (196,333 ) (218,833 )
(1,289,079 ) (264,976 ) (1,554,055 )
Total (1,250,032 ) 94,212 (1,155,820 )

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

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

1. STATUTORY INFORMATION

Hailsham Roadway Construction Co. 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.

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.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
No significant judgements have had to be made by management in preparing these financial statements.

There were no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The company recognises revenue when the significant risks and rewards of ownership have been transferred to the buyer; the company retains no continuing involvement or control over the goods; the amount of revenue can be measured reliably; and when it is probable that future economic benefits will flow to the entity.

In respect of construction contracts and the rendering of services, turnover represents revenue measured by reference to the stage of completion of the contract activity or of the service transaction at the end of the reporting period.

Rental income
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease unless the lease payments are structured to increase in line with expected general inflation in which case the income is recognised as revenue in accordance with the expected payments.

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

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

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
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.
Improvements to property - 20% on cost
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 20% on reducing balance

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Non-depreciation of freehold property is not in accordance with FRS102. However, as current market value is in excess of cost no provision is considered necessary. Regular impairment reviews are conducted to support the carrying value with any diminution in value being recognised in the period in which it occurs.

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Cost is calculated on a first in, first out basis and includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of manufacture/completion.

Net realisable value is based on estimated selling price less costs to complete and sell.

At the end of each reporting period stocks and work in progress are assessed for impairment. If any stock or work in progress is impaired, it is reduced to its net realisable value and an impairment charge is recognised in the income statement. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the income statement.

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

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

2. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-putable ordinary shares.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

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.

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

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

2. ACCOUNTING POLICIES - continued

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.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,064,307 2,059,283
Social security costs 212,068 220,045
Other pension costs 41,353 31,846
2,317,728 2,311,174

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

Directors 2 2
Employees 43 47
45 49

2024 2023
£    £   
Directors' remuneration 135,930 137,454

4. OPERATING PROFIT

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

2024 2023
£    £   
Depreciation - owned assets 181,368 182,902
Depreciation - assets on hire purchase contracts 290,134 196,014
(Profit)/loss on disposal of fixed assets (10,657 ) 26,477

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 1,183 8,738
Bank loan interest 1,951 2,643
Other interest - 632
Hire purchase 93,781 60,410
96,915 72,423

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

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

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Deferred tax 219,430 6,609
Tax on profit 219,430 6,609

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

2024 2023
£    £   
Profit before tax 753,205 483,368
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19%)

188,301

91,840

Effects of:
Expenses not deductible for tax purposes 8,843 3,764
Capital allowances in excess of depreciation (81,265 ) (147,088 )
Utilisation of tax losses (113,317 ) -

Profit & loss on disposal (2,664 ) 5,031
Losses in the year - 46,453
relief
Deferred tax 219,430 6,609
Donations 102 -
Total tax charge 219,430 6,609

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 August 2024.

2023
Gross Tax Net
£    £    £   
Current year revaluation

7. DIVIDENDS
2024 2023
£    £   
Ordinary shares of 10p each
Final 550,000 375,000

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

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

8. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 September 2023 209,654 2,223,753 133,269 1,536,004 4,102,680
Additions 6,278 579,499 5,187 340,617 931,581
Disposals - (282,276 ) (35,609 ) (217,033 ) (534,918 )
At 31 August 2024 215,932 2,520,976 102,847 1,659,588 4,499,343
DEPRECIATION
At 1 September 2023 26,140 779,229 65,490 807,492 1,678,351
Charge for year 42,244 252,802 9,777 166,679 471,502
Eliminated on disposal - (141,075 ) (29,798 ) (184,615 ) (355,488 )
At 31 August 2024 68,384 890,956 45,469 789,556 1,794,365
NET BOOK VALUE
At 31 August 2024 147,548 1,630,020 57,378 870,032 2,704,978
At 31 August 2023 183,514 1,444,524 67,779 728,512 2,424,329

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 September 2023 1,237,473 708,371 1,945,844
Additions 488,654 255,685 744,339
Disposals (195,825 ) (27,840 ) (223,665 )
Transfer to ownership - (40,390 ) (40,390 )
At 31 August 2024 1,530,302 895,826 2,426,128
DEPRECIATION
At 1 September 2023 237,998 255,865 493,863
Charge for year 183,589 106,545 290,134
Eliminated on disposal (73,795 ) (11,507 ) (85,302 )
Transfer to ownership - (29,140 ) (29,140 )
At 31 August 2024 347,792 321,763 669,555
NET BOOK VALUE
At 31 August 2024 1,182,510 574,063 1,756,573
At 31 August 2023 999,475 452,506 1,451,981

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

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

9. STOCKS
2024 2023
£    £   
Raw materials 133,995 118,858
Work-in-progress 1,697,043 1,565,571
1,831,038 1,684,429

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,563,915 764,323
Amounts owed by group undertakings 715,655 977,568
Other debtors 52,077 21,498
Directors' current accounts 100 100
VAT 180,615 53,503
Prepayments and accrued income 119,384 100,809
2,631,746 1,917,801

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 54,552 58,721
Hire purchase contracts (see note 14) 440,058 313,985
Trade creditors 1,769,801 1,015,656
Social security and other taxes 152,994 115,733
Other creditors 16,080 12,829
Accruals and deferred income 480,991 243,438
2,914,476 1,760,362

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 13) 218,833 22,500
Hire purchase contracts (see note 14) 840,612 893,873
1,059,445 916,373

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

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

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 54,552 58,721

Amounts falling due between one and two years:
Bank loans - 1-2 years 57,202 10,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 161,631 12,500

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year 440,058 313,985
Between one and five years 840,612 893,873
1,280,670 1,207,858

15. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 273,385 81,221

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 586,689 367,259

HAILSHAM ROADWAY CONSTRUCTION CO.
LIMITED (REGISTERED NUMBER: 00885849)

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

16. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 September 2023 367,259
Charge to Statement of Comprehensive Income during year 219,430
Balance at 31 August 2024 586,689

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
111,000 Ordinary 10p 11,100 11,100

18. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 September 2023 2,791,612 218,900 3,010,512
Profit for the year 533,775 533,775
Dividends (550,000 ) (550,000 )
At 31 August 2024 2,775,387 218,900 2,994,287