Company registration number 01059577 (England and Wales)
STOWELL CONCRETE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
STOWELL CONCRETE LIMITED
COMPANY INFORMATION
Directors
Mr V Stowell
Mrs M Stowell
Miss B Stowell
(Appointed 6 December 2024)
Secretary
Mrs M Stowell
Company number
01059577
Registered office
Arnolds Way
Yatton
North Somerset
England
BS49 4QN
Auditor
Pareto Analysis Limited
Parkview
23 Wadham Street
Weston-super-Mare
Somerset
BS23 1JZ
Accoutants
Xeinadin South Wales & West Limited
Celtic House, Caxton Place Pentwyn
Cardiff
South Glamorgan
CF23 8HA
Solicitors
Shakespeare Martineau
One Temple Quay
Temple Back East
Bristol
BS1 6DZ
STOWELL CONCRETE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
STOWELL CONCRETE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of the manufacture of concrete products.
Fair review of the business
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
We are an independent family business who has been producing concrete products for over 60 years. With three manufacturing works in Somerset, we supply a full complement of concrete and insulating blocks, reconstituted stone walling and T - beams for general construction work. Also produced are kerbs, channels and paving to suit the requirement of the road builder as well as a range of landscaping products.
We pride ourselves in our ability to provide quality products in a timely manner with short lead times.
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and net margin.
Turnover for the year decreased by 28.1% from the previous year.
Operating profit decreased to £405,138 from £3,334,988 and the net operating margin was 2.1% compared to 12.2% last year. The balance of profit after tax has been added to reserves.
Given the nature of the Company's activities, the Company's directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.
Principal risks and uncertainties
The future growth of the company is dependent on the competitiveness of the company in relation to its industry rivals and the business environment generally.
Mr V Stowell
Director
11 March 2025
STOWELL CONCRETE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr V Stowell
Mrs M Stowell
Miss B Stowell
(Appointed 6 December 2024)
Financial instruments
Objectives and policies
The company invests in new plant and equipment each year in order to remain efficient and competitive. This will enable the company to deliver increased turnover while retaining a competitive margin.
Price risk, credit risk, liquidity risk and cash flow risk
The company has no borrowing other than its creditors and is therefore in a strong position to adapt to market conditions.
With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.
Auditor
The auditors Pareto Analysis Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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 of disclosure to auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
STOWELL CONCRETE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Employee involvement
The company involves all its employees in its objectives, plans and performance and on other relevant matters of interest to employees through various communication methods and regular company meetings.
Environmental matters
The company recognises the importance of its environmental responsibilities, monitors its impact on the environment, and designed and implements policies to reduce any damage that may be caused by the company's activities.
On behalf of the board
Mr V Stowell
Director
11 March 2025
STOWELL CONCRETE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STOWELL CONCRETE LIMITED
- 4 -
Opinion
We have audited the financial statements of Stowell Concrete Limited (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 30 June 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.
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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.
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 course of 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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
STOWELL CONCRETE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STOWELL CONCRETE LIMITED (CONTINUED)
- 5 -
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:
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 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 directors' responsibilities statement, 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 is 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting 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 misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006) and the relevant direct and indirect tax compliance regulation in the United Kingdom. In addition, the Company has to comply with laws and regulations relating to health and safety, employment, data protection and anti-bribery and corruption.
STOWELL CONCRETE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STOWELL CONCRETE LIMITED (CONTINUED)
- 6 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Paul William John (Senior Statutory Auditor)
For and on behalf of Pareto Analysis Limited, Statutory Auditor
Parkview
23 Wadham Street
Weston-super-Mare
Somerset
BS23 1JZ
11 March 2025
STOWELL CONCRETE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
19,739,292
27,440,109
Cost of sales
(12,489,336)
(15,447,881)
Gross profit
7,249,956
11,992,228
Distribution costs
(1,995,253)
(2,870,208)
Administrative expenses
(4,849,563)
(5,787,033)
Operating profit
3
405,140
3,334,987
Interest receivable and similar income
7
97,174
14,424
Gain/(loss) on financial assets at fair value through profit and loss account
8
568,433
(382,023)
Profit before taxation
1,070,747
2,967,388
Tax on profit
9
(433,249)
(485,740)
Profit for the financial year
637,498
2,481,648
The profit and loss account has been prepared on the basis that all operations are continuing operations.
STOWELL CONCRETE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
£
£
Profit for the year
637,498
2,481,648
Other comprehensive income
-
-
Total comprehensive income for the year
637,498
2,481,648
STOWELL CONCRETE LIMITED
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
13,567,251
16,200,782
Investments
11
6,514,544
11,513,739
20,081,795
27,714,521
Current assets
Stocks
13
8,830,180
7,339,700
Debtors
14
13,268,741
8,251,914
Cash at bank and in hand
6,744,876
5,471,414
28,843,797
21,063,028
Creditors: amounts falling due within one year
15
(3,313,544)
(3,603,739)
Net current assets
25,530,253
17,459,289
Total assets less current liabilities
45,612,048
45,173,810
Provisions for liabilities
Deferred tax liability
16
26,647
225,907
(26,647)
(225,907)
Net assets
45,585,401
44,947,903
Capital and reserves
Called up share capital
18
100,000
100,000
Profit and loss reserves
45,485,401
44,847,903
Total equity
45,585,401
44,947,903
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 11 March 2025 and are signed on its behalf by:
Mr V Stowell
Mrs M Stowell
Director
Director
Company registration number 01059577 (England and Wales)
STOWELL CONCRETE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2022
100,000
42,366,255
42,466,255
Year ended 30 June 2023:
Profit and total comprehensive income
-
2,481,648
2,481,648
Balance at 30 June 2023
100,000
44,847,903
44,947,903
Year ended 30 June 2024:
Profit and total comprehensive income
-
637,498
637,498
Balance at 30 June 2024
100,000
45,485,401
45,585,401
STOWELL CONCRETE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
21
(3,691,465)
5,961,166
Income taxes paid
(458,159)
(950,829)
Net cash (outflow)/inflow from operating activities
(4,149,624)
5,010,337
Investing activities
Purchase of tangible fixed assets
(271,573)
(5,355,558)
Proceeds from disposal of tangible fixed assets
29,857
12,425
Proceeds from disposal of investments
5,567,628
Interest received
97,174
14,424
Net cash generated from/(used in) investing activities
5,423,086
(5,328,709)
Net increase/(decrease) in cash and cash equivalents
1,273,462
(318,372)
Cash and cash equivalents at beginning of year
5,471,414
5,789,786
Cash and cash equivalents at end of year
6,744,876
5,471,414
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information
Stowell Concrete Limited is a private company limited by shares incorporated in England and Wales. The registered office is Arnolds Way, Yatton, North Somerset, England, BS49 4QN.
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 under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties 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.
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
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.
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
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:
Freehold land and buildings
10% reducing balance basis
Short leasehold buildings
10% reducing balance basis
Plant and equipment
25% reducing balance basis
Fixtures and fittings
15% reducing balance basis
Computers
25% reducing balance basis
Motor vehicles
25% reducing balance 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.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Investments are shown at fair market value and any profits or losses in the year are recognised in the Profit and Loss account. Fair value has been determined based on the quoted market price in an active market
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
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.
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.
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
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.
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.
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
19,739,292
27,440,109
2024
2023
£
£
Other revenue
Interest income
97,174
14,424
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
2,887,090
3,622,557
Profit on disposal of tangible fixed assets
(11,843)
(12,264)
Operating lease charges
9,083
7,948
4
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
10,500
7,250
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production
47
50
Administration and support
24
21
Total
71
71
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
5
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,487,670
5,569,013
Social security costs
519,479
680,478
Pension costs
475,716
268,510
5,482,865
6,518,001
Redundancy payments made or committed
45,000
107,576
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
785,000
1,110,000
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
430,000
680,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
59,017
13,317
Other interest income
38,157
1,107
Total income
97,174
14,424
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
59,017
13,317
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
8
Gain/(loss) on financial assets at fair value through profit and loss account
2024
2023
£
£
Gain/(loss) on financial assets at fair value through profit and loss account
568,433
(382,023)
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
632,508
646,512
Deferred tax
Origination and reversal of timing differences
(199,259)
(160,772)
Total tax charge
433,249
485,740
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
1,070,747
2,967,388
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
267,687
741,847
Tax effect of expenses that are not deductible in determining taxable profit
3,792
79,592
Change in unrecognised deferred tax assets
(199,259)
(177,451)
Effect of change in corporation tax rate
(162,957)
Depreciation on assets not qualifying for tax allowances
361,029
4,709
Taxation charge for the year
433,249
485,740
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
10
Tangible fixed assets
Freehold land and buildings
Short leasehold buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 July 2023
919,751
10,392,568
24,758,706
896,211
119,018
1,498,353
38,584,607
Additions
133,806
93,430
1,021
3,960
39,356
271,573
Disposals
(12,100)
(59,368)
(71,468)
At 30 June 2024
919,751
10,526,374
24,840,036
897,232
122,978
1,478,341
38,784,712
Depreciation and impairment
At 1 July 2023
541,600
3,175,474
16,658,100
515,664
104,351
1,388,636
22,383,825
Depreciation charged in the year
2,135
735,091
2,052,634
59,561
4,904
32,765
2,887,090
Eliminated in respect of disposals
(12,100)
(41,354)
(53,454)
At 30 June 2024
543,735
3,910,565
18,698,634
575,225
109,255
1,380,047
25,217,461
Carrying amount
At 30 June 2024
376,016
6,615,809
6,141,402
322,007
13,723
98,294
13,567,251
At 30 June 2023
378,151
7,217,094
8,100,606
380,547
14,667
109,717
16,200,782
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
11
Fixed asset investments
2024
2023
£
£
Listed investments
6,514,544
11,513,739
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 July 2023
11,513,739
Valuation changes
570,251
Disposals
(5,569,446)
At 30 June 2024
6,514,544
Carrying amount
At 30 June 2024
6,514,544
At 30 June 2023
11,513,739
12
Financial instruments
Financial assets measured at fair value
Investments
Valuation on stock market
The fair value is £6,514,544 (2023 - £11,513,739) and the change in value included in profit or loss is £570,251 (2023 - £(382,023)).
13
Stocks
2024
2023
£
£
Raw materials and consumables
376,359
487,668
Finished goods and goods for resale
8,453,821
6,852,032
8,830,180
7,339,700
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,937,636
5,253,276
Corporation tax recoverable
318,327
492,677
Amounts due from related parties
9,000,000
2,500,000
Other debtors
2,350
-
Prepayments and accrued income
10,428
5,961
13,268,741
8,251,914
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,361,611
1,746,158
Taxation and social security
620,961
491,445
Amounts due to related parties
799,001
449,000
Accruals and deferred income
531,971
917,136
3,313,544
3,603,739
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
26,647
225,907
2024
Movements in the year:
£
Liability at 1 July 2023
225,907
Credit to profit or loss
(199,260)
Liability at 30 June 2024
26,647
The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
475,716
268,510
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.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
19
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Stowell Trust
20 acres of land used by the company, and where its head office is situated, is held in a trust jointly controlled by Vincent Stowell, Margaret Stowell, Georgina Minakawa and Quinton Stowell. No rent is charged to the company for its use.
Stowell Holdings Limited
The director of the company, Mr V J Stowell, is also a director of Stowell Holdings Limited.
During the year, the company advanced Stowell Holdings Limited £6,500,000. At the balance sheet date, the amount due to the company is £9,000,000. No interest has been charged on the outstanding balance.
20
Ultimate controlling party
The company share capital is owned 100% by Stowell Holdings Ltd.
The directors ultimately control the company by virtue of their controlling shareholding in Stowell Holdings Ltd.
STOWELL CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
21
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit after taxation
637,498
2,481,648
Adjustments for:
Taxation charged
433,249
485,740
Investment income
(97,174)
(14,424)
Gain on disposal of tangible fixed assets
(11,843)
(12,264)
Depreciation and impairment of tangible fixed assets
2,887,090
3,622,557
Other gains and losses
(568,433)
382,023
Movements in working capital:
Increase in stocks
(1,490,480)
(1,679,639)
(Increase)/decrease in debtors
(5,191,177)
1,517,858
Decrease in creditors
(290,195)
(822,333)
Cash (absorbed by)/generated from operations
(3,691,465)
5,961,166
22
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
5,471,414
1,273,462
6,744,876
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