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Registration number: 8948772

Haywood Crushing Demolition Limited

Annual Report and Financial Statements

for the Year Ended 30 June 2024

 

Haywood Crushing Demolition Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account and Statement of Retained Earnings

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12 to 13

Notes to the Financial Statements

14 to 28

 

Haywood Crushing Demolition Limited

Company Information

Directors

Mr I C Musto

Mr J J Musto

Registered office

Unit 14 Haywood Industrial Estate
Wellington
Hereford
HR4 8DZ

Bankers

Lloyds Bank
Hereford
8 High Town
Hereford
HR1 2AE

Auditors

Young & Co
Chartered Accountants and Registered Auditors
St Ethelbert House
Ryelands Street
Hereford
Herefordshire
HR4 0LA

 

Haywood Crushing Demolition Limited

Strategic Report for the Year Ended 30 June 2024

The directors present their strategic report for the year ended 30 June 2024.

Principal activity

The principal activity of the company is demolition contractors.

Fair review of the business

The directors consider the the results for the year and the financial position at the year end to be excellent. The directors expect the performance in 2025 to be better than 2024. The company made an operating profit of £2.61m compared with an operating profit of £5.62m in 2023. Profit before tax has decreased from £5.29m to £1.94m. Return on capital employed has decreased from 47.65% to 18.36%. Return on capital employed is calculated as profit before interest and tax divided by capital employed, which constitutes total assets less current liabilities, less investments, less cash, plus overdrafts and other short term borrowings.

Principal risks and uncertainties

The directors consider the following to summarise the key risks and uncertainties facing the company:

• Market Risk - Fluctuations in the market place in the industry.

• Credit Risk - The company has the risk of not being remunerated for the work it has completed.

• Liquidity and Cash Flow Risk - Ensuring costs can be met on a timely basis without affecting the company's future.

For the risks mentioned the directors agree a policy to address each of these:

• Market Risk - The directors consider the price of their services to be very competitive in the current market and will continue to monitor this in the future.

• Credit Risk - Given the loyalty and size of the customers the company holds, the directors, in their opinion, believe the risk is well spread and they intend to maintain this policy in the future.

• Liquidity and Cash Flow Risk - During the year, the company was able to successfully manage its cash flow.

Approved and authorised by the Board on 21 March 2025 and signed on its behalf by:
 

.........................................
Mr I C Musto
Director

 

Haywood Crushing Demolition Limited

Directors' Report for the Year Ended 30 June 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Directors of the company

The directors who held office during the year were as follows:

Mr I C Musto

Mr J J Musto

Environmental matters

The company recognises the importance of it's environmental responsibilities, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by the company's activities.

Future developments

The directors are proposing to remain focused on the core activity of demolition contracting and are expecting to pursue more lucrative contracts with existing and new customers in the next financial year.

Disclosure of information to the auditors

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.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Young & Co as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved and authorised by the Board on 21 March 2025 and signed on its behalf by:
 

.........................................
Mr I C Musto
Director

 

Haywood Crushing Demolition Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 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.

 

Haywood Crushing Demolition Limited

Independent Auditor's Report to the Members of Haywood Crushing Demolition Limited

Opinion

We have audited the financial statements of Haywood Crushing Demolition Limited (the 'company') for the year ended 30 June 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, Statement of Changes in Equity, 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:

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.

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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s 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.

 

Haywood Crushing Demolition Limited

Independent Auditor's Report to the Members of Haywood Crushing Demolition Limited
(continued)

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 4, 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.

 

Haywood Crushing Demolition Limited

Independent Auditor's Report to the Members of Haywood Crushing Demolition Limited
(continued)

Auditor Responsibilities for the audit of the financial statements

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

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.

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
• understanding the design of the company’s remuneration policies.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of noncompliance throughout the audit.

 

To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions;
• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
• investigated the rationale behind significant or unusual transactions.

 

Haywood Crushing Demolition Limited

Independent Auditor's Report to the Members of Haywood Crushing Demolition Limited
(continued)

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• enquiring of management as to actual and potential litigation and claims; and
• reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

......................................
Danny King ACA (Senior Statutory Auditor)
For and on behalf of Young & Co, Statutory Auditor

St Ethelbert House
Ryelands Street
Hereford
Herefordshire
HR4 0LA

21 March 2025

 

Haywood Crushing Demolition Limited

Statement of Income and Retained Earnings for the Year Ended 30 June 2024

Note

2024
£

2023
£

Turnover

3

18,175,125

22,510,983

Cost of sales

 

(8,692,169)

(9,227,911)

Gross profit

 

9,482,956

13,283,072

Administrative expenses

 

(6,888,900)

(7,686,479)

Other operating income

4

14,364

19,855

Operating profit

6

2,608,420

5,616,448

Other interest receivable and similar income

7

2,009

-

Interest payable and similar charges

8

(673,292)

(325,831)

 

(671,283)

(325,831)

Profit before tax

 

1,937,137

5,290,617

Taxation

12

268,679

(1,343,866)

Profit for the financial year

 

2,205,816

3,946,751

Retained earnings brought forward

 

5,769,416

3,942,665

Dividends paid

 

(200,000)

(2,120,000)

Retained earnings carried forward

 

7,775,232

5,769,416

 

Haywood Crushing Demolition Limited

(Registration number: 8948772)
Balance Sheet as at 30 June 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

13

10,956,572

10,329,487

Other financial assets

14

100

100

 

10,956,672

10,329,587

Current assets

 

Stocks

15

2,150,292

2,052,555

Debtors

16

3,012,915

3,830,338

Cash at bank and in hand

 

1,395,010

798,007

 

6,558,217

6,680,900

Creditors: Amounts falling due within one year

18

(4,140,905)

(6,441,878)

Net current assets

 

2,417,312

239,022

Total assets less current liabilities

 

13,373,984

10,568,609

Creditors: Amounts falling due after more than one year

18

(4,204,095)

(3,391,081)

Provisions for liabilities

19

(1,394,557)

(1,408,012)

Net assets

 

7,775,332

5,769,516

Capital and reserves

 

Called up share capital

100

100

Retained earnings

7,775,232

5,769,416

Shareholders' funds

 

7,775,332

5,769,516

Approved and authorised by the Board on 21 March 2025 and signed on its behalf by:
 

.........................................
Mr I C Musto
Director

 

Haywood Crushing Demolition Limited

Statement of Changes in Equity for the Year Ended 30 June 2024

Share capital
£

Retained earnings
£

Total
£

At 1 July 2023

100

5,769,416

5,769,516

Profit for the year

-

2,205,816

2,205,816

Dividends

-

(200,000)

(200,000)

At 30 June 2024

100

7,775,232

7,775,332

Share capital
£

Retained earnings
£

Total
£

At 1 July 2022

100

3,942,665

3,942,765

Profit for the year

-

3,946,751

3,946,751

Dividends

-

(2,120,000)

(2,120,000)

At 30 June 2023

100

5,769,416

5,769,516

 

Haywood Crushing Demolition Limited

Statement of Cash Flows for the Year Ended 30 June 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

2,205,816

3,946,751

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

1,877,919

1,371,661

Profit on disposal of tangible assets

5

(70,292)

(162,199)

Finance income

7

(2,009)

-

Finance costs

8

673,292

325,831

Income tax expense

12

(268,679)

1,343,866

 

4,416,047

6,825,910

Working capital adjustments

 

Increase in stocks

15

(97,737)

(1,005,640)

Decrease/(increase) in trade debtors

16

806,416

(710,712)

(Decrease)/increase in trade creditors

18

(1,812,464)

1,469,113

Cash generated from operations

 

3,312,262

6,578,671

Income taxes paid

12

(446,244)

(133,861)

Net cash flow from operating activities

 

2,866,018

6,444,810

Cash flows from investing activities

 

Interest received

7

2,009

-

Acquisitions of tangible assets

(3,415,737)

(6,038,456)

Proceeds from sale of tangible assets

 

981,025

242,648

Acquisition of financial investments other than trading investments

 

-

(100)

Net cash flows from investing activities

 

(2,432,703)

(5,795,908)

Cash flows from financing activities

 

Interest paid

8

(673,292)

(325,831)

Proceeds from bank borrowing draw downs

 

(200,614)

433,374

Payments to finance lease creditors

 

1,237,594

1,389,317

Dividends paid

23

(200,000)

(2,120,000)

Net cash flows from financing activities

 

163,688

(623,140)

Net increase in cash and cash equivalents

 

597,003

25,762

Cash and cash equivalents at 1 July

 

798,007

772,245

 

Haywood Crushing Demolition Limited

Statement of Cash Flows for the Year Ended 30 June 2024
(continued)

Note

2024
£

2023
£

Cash and cash equivalents at 30 June

 

1,395,010

798,007

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 14 Haywood Industrial Estate
Wellington
Hereford
HR4 8DZ
England

These financial statements were authorised for issue by the Board on 21 March 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

2

Accounting policies (continued)

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold property improvements

5% of cost per annum

Plant and machinery

15% of cost per annum

Plant and machinery - specialist machinery

15% of written down value per annum

Motor vehicles

25% of written down value per annum

Computer equipment

33.3% of cost per annum

Freehold property

2% of cost per annum

Freehold land

Not depreciated

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

2

Accounting policies (continued)

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

2

Accounting policies (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

2

Accounting policies (continued)

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2024
 £

2023
 £

Sale of goods and services

18,175,125

22,510,983

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
 £

2023
 £

Government grants

14,364

9,855

Miscellaneous other operating income

-

10,000

14,364

19,855

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
 £

2023
 £

Gain/loss on disposal of property, plant and equipment

70,292

162,199

6

Operating profit

Arrived at after charging/(crediting)

2024
 £

2023
 £

Depreciation expense

1,877,919

1,371,661

Operating lease expense - plant and machinery

1,489,074

2,277,220

Profit on disposal of property, plant and equipment

(70,292)

(162,199)

7

Other interest receivable and similar income

2024
 £

2023
 £

Other finance income

2,009

-

8

Interest payable and similar expenses

2024
 £

2023
 £

Interest on obligations under finance leases and hire purchase contracts

409,910

241,099

Interest expense on other finance liabilities

263,382

84,732

673,292

325,831

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
 £

2023
 £

Wages and salaries

2,460,931

2,165,005

Social security costs

273,772

246,681

Pension costs, defined contribution scheme

47,253

43,323

Other employee expense

21,550

47,533

2,803,506

2,502,542

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

41

37

Administration and support

3

3

Other departments

2

2

46

42

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
 £

2023
 £

Remuneration

154,740

153,405

Contributions paid to money purchase schemes

2,614

2,634

157,354

156,039

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
 No.

2023
 No.

Accruing benefits under money purchase pension scheme

2

2

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

11

Auditors' remuneration

2024
 £

2023
 £

Audit of the financial statements

18,000

16,450


 

12

Taxation

Tax charged/(credited) in the income statement

2024
 £

2023
 £

Current taxation

UK corporation tax

(255,224)

557,491

Deferred taxation

Arising from origination and reversal of timing differences

(13,455)

786,375

Tax (receipt)/expense in the income statement

(268,679)

1,343,866

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

12

Taxation (continued)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 20.5%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,937,137

5,290,617

Corporation tax at standard rate

484,284

1,084,576

Tax decrease from effect of capital allowances and depreciation

(904,902)

(110,084)

Effect of expense not deductible in determining taxable profit (tax loss)

508,749

24,341

Tax decrease from effect of unrelieved tax losses carried forward

(88,131)

-

Decrease in UK and foreign current tax from unrecognised tax loss or credit

(255,224)

-

Increase in UK and foreign current tax from unrecognised temporary difference from a prior period

-

7,110

Deferred tax (credit)/expense relating to changes in tax rates or laws

(13,455)

337,923

Total tax (credit)/charge

(268,679)

1,343,866

Deferred Tax is now provided at the main rate of UK Corporation Tax of 25% that came into effect at 1 April 2023.

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

13

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2023

1,373,532

10,212,754

1,319,554

12,905,840

Additions

267,973

3,012,772

134,992

3,415,737

Disposals

(908,051)

-

(11,600)

(919,651)

At 30 June 2024

733,454

13,225,526

1,442,946

15,401,926

Depreciation

At 1 July 2023

22,726

2,070,301

483,326

2,576,353

Charge for the year

8,636

1,644,154

225,129

1,877,919

Eliminated on disposal

(3,027)

-

(5,891)

(8,918)

At 30 June 2024

28,335

3,714,455

702,564

4,445,354

Carrying amount

At 30 June 2024

705,119

9,511,071

740,382

10,956,572

At 30 June 2023

1,350,806

8,142,453

836,228

10,329,487

Included within the net book value of land and buildings above is £324,480 (2023 - £1,229,504) in respect of freehold land and buildings and £380,639 (2023 - £121,302) in respect of long leasehold land and buildings.
 

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

14

Other financial assets (current and non-current)

Financial assets at fair value through profit and loss
£

Total
£

Non-current financial assets

Cost or valuation

At 1 July 2023

100

100

At 30 June 2024

100

100

Impairment

Carrying amount

At 30 June 2024

100

100

15

Stocks

2024
 £

2023
 £

Other inventories

2,150,292

2,052,555

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

16

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

1,857,043

2,876,239

Amounts owed by related parties

26

757,716

288,723

Other debtors

 

128,383

508,765

Prepayments

 

269,773

145,604

Income tax asset

12

-

11,007

   

3,012,915

3,830,338

17

Cash and cash equivalents

2024
 £

2023
 £

Cash at bank

1,395,010

798,007

18

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

22

2,239,583

2,015,617

trade creditors

 

1,469,957

2,326,226

Amounts due to related parties

26

-

964,230

Social security and other taxes

 

114,329

320,287

Outstanding defined contribution pension costs

 

6,750

4,279

Other payables

 

21,208

9,308

Accrued expenses

 

235,636

36,014

Income tax liability

12

53,442

765,917

 

4,140,905

6,441,878

Due after one year

 

Loans and borrowings

22

4,204,095

3,391,081

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

19

Provisions for liabilities

Deferred tax
£

Total
£

At 1 July 2023

1,408,012

1,408,012

Increase (decrease) in existing provisions

(13,455)

(13,455)

At 30 June 2024

1,394,557

1,394,557

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £47,253 (2023 - £43,323).

Contributions totalling £6,750 (2023 - £4,279) were payable to the scheme at the end of the year and are included in creditors.

21

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary Shares of £1 each

100

100

100

100

       

22

Loans and borrowings

2024
 £

2023
 £

Non-current loans and borrowings

Bank borrowings

625,507

830,261

HP and finance lease liabilities

3,578,588

2,560,820

4,204,095

3,391,081

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

22

Loans and borrowings (continued)

2024
 £

2023
 £

Current loans and borrowings

Bank borrowings

128,662

124,522

HP and finance lease liabilities

2,110,921

1,891,095

2,239,583

2,015,617

The hire purchase and finance lease obligations are secured on the assets to which they relate.

23

Dividends

2024

2023

£

£

Interim dividend of £2,000.00 (2023 - £21,200.00) per ordinary share

200,000

2,120,000

 

 

24

Commitments

Other financial commitments

Other financial commitments are equipment leases. They include amounts due after more than one year of £32,000.

The total amount of other financial commitments not provided in the financial statements was £111,165 (2023 - £223,015).

38 Post balance sheet event

There is an ongoing tax enquiry by H M Revenue & Customs into a related party. Some historic transactions between the company and the related party may be affected by the outcome of the enquiry. At the moment there is no indication that there will be a material impact on the company's profit or tax liabilities. However, a provision has been made but this has no impact on the profit and loss in the financial statements.

 

Haywood Crushing Demolition Limited

Notes to the Financial Statements for the Year Ended 30 June 2024
(continued)

26

Related party transactions

Loans to related parties

2024

Parent
£

Other related parties
£

Total
£

At start of period

(951,655)

276,148

(675,507)

Advanced

(207,886)

22,570

(185,316)

Repaid

1,621,055

(2,516)

1,618,539

At end of period

461,514

296,202

757,716

2023

Parent
£

Other related parties
£

Total
£

At start of period

146,539

276,148

422,687

Advanced

264,000

-

264,000

Repaid

(1,362,194)

-

(1,362,194)

At end of period

(951,655)

276,148

(675,507)

Terms of loans to related parties

The loan from the parent company is interest free, unsecured and has no fixed repayment terms.
 
The other related party undertakings include an unincorporated business wholly owned by one of the directors. The loan is interest free, unsecured and has no fixed repayment terms.

27

Parent and ultimate parent undertaking

The company's immediate parent is EJM Holdings (Hereford) Limited, incorporated in England and Wales.