Company registration number 03607828 (England and Wales)
THE CONCRETE COMPANY (THORNEY) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
THE CONCRETE COMPANY (THORNEY) LIMITED
COMPANY INFORMATION
Director
Mr T E Dighton
Secretary
Mrs J Dighton
Company number
03607828
Registered office
Station Road
Thorney
Peterborough
United Kingdom
PE6 0QE
Auditor
Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
Business address
Station Road
Thorney
Peterborough
United Kingdom
PE6 0QE
Bankers
Barclays Bank PLC
1 Church Street
Peterborough
Cambridgeshire
United Kingdom
PE1 1XB
THE CONCRETE COMPANY (THORNEY) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
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 - 26
THE CONCRETE COMPANY (THORNEY) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The director presents the strategic report and financial statements for the year ended 30 June 2024.
Review of the business
The company returned a net loss before interest and taxation of £370,053 (2023 - net profit before interest and taxation of £242,651).
Principal risks and uncertainties
The performance of the company depends, in a large part, on varying conditions in the market of the geographical area it serves, in particular the construction industry, as well as fluctuations in the wider economy. The company's plants and operations are subject to increasingly stringent environmental and safety laws, and every effort is made to ensure compliance with all material aspects of these laws and regulations.
The company's principal financial instruments comprise of trade debtors and trade creditors. The main purpose of these instruments is to raise funds for and finance the company's operations.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
The main key performance indicators used to monitor the performance of the business include:-
GP Margin
Debtors days
Stock turnover days
Development and performance
The position of the company at the year end is shown in the balance sheet.
Mr T E Dighton
Director
26 March 2025
THE CONCRETE COMPANY (THORNEY) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The director presents his annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activities of the company continued to be that of selling ready mixed concrete and material haulage.
Results and dividends
The results for the year are set out on page 7.
An interim ordinary dividend was paid amounting to £55,000 (2023 - £138,000). The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr T E Dighton
Future developments
The external environment is expected to remain competitive in the year ended 30 June 2025.
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr T E Dighton
Director
26 March 2025
THE CONCRETE COMPANY (THORNEY) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
THE CONCRETE COMPANY (THORNEY) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE CONCRETE COMPANY (THORNEY) LIMITED
- 4 -
Opinion
We have audited the financial statements of The Concrete Company (Thorney) 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 loss 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
THE CONCRETE COMPANY (THORNEY) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE CONCRETE COMPANY (THORNEY) LIMITED
- 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 director's 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 director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
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.
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.
THE CONCRETE COMPANY (THORNEY) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE CONCRETE COMPANY (THORNEY) LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Tracey Richardson BSc (Hons) FCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
26 March 2025
Chartered Accountants
Statutory Auditor
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
THE CONCRETE COMPANY (THORNEY) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
7,598,694
11,130,654
Cost of sales
(6,790,988)
(9,678,800)
Gross profit
807,706
1,451,854
Administrative expenses
(1,203,784)
(1,239,325)
Other operating income
26,025
30,122
Operating (loss)/profit
6
(370,053)
242,651
Interest receivable and similar income
7
9,270
5,024
Interest payable and similar expenses
8
(34,265)
(23,717)
(Loss)/profit before taxation
(395,048)
223,958
Tax on (loss)/profit
9
(164,351)
(Loss)/profit for the financial year
(395,048)
59,607
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE CONCRETE COMPANY (THORNEY) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
£
£
(Loss)/profit for the year
(395,048)
59,607
Other comprehensive income
-
-
Total comprehensive income for the year
(395,048)
59,607
THE CONCRETE COMPANY (THORNEY) LIMITED
BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
5,769,785
6,028,387
Current assets
Stocks
13
332,561
225,407
Debtors
14
844,302
1,002,835
Cash at bank and in hand
640,579
830,763
1,817,442
2,059,005
Creditors: amounts falling due within one year
15
(1,939,165)
(1,948,745)
Net current (liabilities)/assets
(121,723)
110,260
Total assets less current liabilities
5,648,062
6,138,647
Creditors: amounts falling due after more than one year
16
(385,555)
(426,092)
Provisions for liabilities
Deferred tax liability
17
615,566
615,566
(615,566)
(615,566)
Net assets
4,646,941
5,096,989
Capital and reserves
Called up share capital
20
10,000
10,000
Revaluation reserve
1,397,533
1,422,373
Profit and loss reserves
3,239,408
3,664,616
Total equity
4,646,941
5,096,989
The financial statements were approved and signed by the director and authorised for issue on 26 March 2025
Mr T E Dighton
Director
Company Registration No. 03607828
THE CONCRETE COMPANY (THORNEY) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
10,000
1,510,172
3,655,210
5,175,382
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
59,607
59,607
Dividends
10
-
-
(138,000)
(138,000)
Transfers
-
(87,799)
87,799
-
Balance at 30 June 2023
10,000
1,422,373
3,664,616
5,096,989
Year ended 30 June 2024:
Loss and total comprehensive income for the year
-
-
(395,048)
(395,048)
Dividends
10
-
-
(55,000)
(55,000)
Transfers
-
(24,840)
24,840
-
Balance at 30 June 2024
10,000
1,397,533
3,239,408
4,646,941
THE CONCRETE COMPANY (THORNEY) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
149,110
638,623
Interest paid
(34,265)
(23,717)
Income taxes refunded/(paid)
24,767
(91,801)
Net cash inflow from operating activities
139,612
523,105
Investing activities
Purchase of tangible fixed assets
(334,635)
(601,145)
Proceeds from disposal of tangible fixed assets
126,366
35,986
Interest received
9,270
5,024
Net cash used in investing activities
(198,999)
(560,135)
Financing activities
Repayment of borrowings
(25,000)
(25,000)
Payment of finance leases obligations
(50,797)
(15,154)
Dividends paid
(55,000)
(138,000)
Net cash used in financing activities
(130,797)
(178,154)
Net decrease in cash and cash equivalents
(190,184)
(215,184)
Cash and cash equivalents at beginning of year
830,763
1,045,947
Cash and cash equivalents at end of year
640,579
830,763
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information
The Concrete Company (Thorney) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Station Road, Thorney, Peterborough, United Kingdom, PE6 0QE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention, modified to include the revaluation of freehold properties and to include 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 director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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.
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows. The change in depreciation rates results from a review of the expected lives of the company's fixed assets following the revaluation of the company's major assets. The revised rates are will represent a fairer spread of the cost of the assets over their expected useful lives.
Freehold land and buildings
Land: Nil, Buildings: straight line over 50 years
Leasehold property
Term of the lease
Plant and machinery
5% per annum
Fixtures, fittings and equipment
20% per annum
Motor vehicles
15% and 10% per annum
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.
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset 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 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.
1.6
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.
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.
1.7
Cash at bank and in hand
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.
1.8
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.
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 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 receipts 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.
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
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
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Determining residual values and useful economic lives of property, plant and equipment
The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors.
Judgment is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value, management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.
Determining quantities of stock held
The stock take undertaken by the company requires management to estimate quantities of aggregates. fuel and oil that are held. Estimations and judgements are made by management based on their experience in the sector and quantities delivered around the year end.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Concrete, aggregate, skip hire, haulage and vehicle hire
7,598,694
11,130,654
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
7,598,694
11,130,654
2024
2023
£
£
Other revenue
Interest income
9,270
5,024
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management
1
1
Administration and sales
14
14
Drivers and yardmen
31
41
Total
46
56
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,621,180
1,936,508
Social security costs
171,186
211,059
Pension costs
34,222
41,829
1,826,588
2,189,396
5
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
12,500
12,600
Company pension contributions to defined contribution schemes
1,600
1,600
14,100
14,200
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
6
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,435
9,720
Depreciation of owned tangible fixed assets
336,800
388,412
Depreciation of tangible fixed assets held under finance leases
113,362
76,050
Loss on disposal of tangible fixed assets
16,709
14,528
Operating lease charges
39,040
39,404
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
8,460
Other interest income
810
5,024
Total income
9,270
5,024
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
8,460
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
8,200
8,400
Other finance costs:
Interest on finance leases and hire purchase contracts
26,065
15,317
34,265
23,717
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(24,767)
Deferred tax
Origination and reversal of timing differences
189,118
Total tax charge
164,351
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 20 -
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(395,048)
223,958
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(98,762)
42,552
Tax effect of expenses that are not deductible in determining taxable profit
981
2,013
Unutilised tax losses carried forward
65,056
Adjustments in respect of prior years
(24,767)
Permanent capital allowances in excess of depreciation
69,962
11,425
Tax losses utilised
(32,588)
(55,990)
Deferred tax movement
189,118
Other
(4,649)
Taxation charge for the year
-
164,351
10
Dividends
2024
2023
£
£
Interim paid
55,000
138,000
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold property
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 July 2023
2,999,683
17,502
2,224,970
187,524
3,493,905
8,923,584
Additions
172,206
2,412
160,017
334,635
Disposals
(189,800)
(344,582)
(534,382)
At 30 June 2024
2,999,683
17,502
2,207,376
189,936
3,309,340
8,723,837
Depreciation and impairment
At 1 July 2023
113,311
3,150
753,827
169,907
1,855,002
2,895,197
Depreciation charged in the year
14,646
350
104,161
5,064
325,941
450,162
Eliminated in respect of disposals
(85,410)
(305,897)
(391,307)
At 30 June 2024
127,957
3,500
772,578
174,971
1,875,046
2,954,052
Carrying amount
At 30 June 2024
2,871,726
14,002
1,434,798
14,965
1,434,294
5,769,785
At 30 June 2023
2,886,372
14,352
1,471,143
17,617
1,638,903
6,028,387
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery
212,654
45,309
Motor vehicles
758,536
531,509
971,190
576,818
Depreciation charge for the year in respect of leased assets
113,362
76,050
The freehold and leasehold land and buildings were valued on an open market basis by a firm of independent Chartered Surveyors, A. J. Brooker MRICS Chartered Surveyor, on a market value and existing use basis as at 30 June 2015.
The plant and machinery was valued by the director on a market value basis. The fleet vehicles were valued by the company's principal vehicle supplier, Truckeast, on an open market basis as at 30 June 2015.
These valuations were made on transition to FRS102 and therefore there is no requirement to continue to revalue.
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Tangible fixed assets
(Continued)
- 22 -
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2024
2023
£
£
Cost
10,247,370
10,057,078
Accumulated depreciation
7,690,879
7,616,653
Carrying value
2,556,491
2,440,425
12
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at cost
Trade debtors
793,245
911,085
Bank and cash
640,579
830,763
Measured at cost
1,433,824
1,741,848
Carrying amount of financial liabilities
Trade creditors
948,914
1,170,480
Obligations under hire purchase
340,759
391,556
Measured at cost
1,289,673
1,562,036
13
Stocks
2024
2023
£
£
Raw materials and consumables
332,561
225,407
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
793,245
911,085
Corporation tax recoverable
24,767
Other debtors
5,843
12,863
Prepayments and accrued income
45,214
54,120
844,302
1,002,835
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under hire purchase
19
205,204
240,464
Trade creditors
948,914
1,170,480
Other taxation and social security
252,821
209,747
Other creditors
514,732
249,782
Accruals and deferred income
17,494
78,272
1,939,165
1,948,745
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under hire purchase
19
135,555
151,092
Director's loan
250,000
275,000
The director's loan is unsecured. Interest is charged on this loan at 2% per annum.
Obligations under finance leases and hire purchase contracts are secured on motor vehicles.
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Deferred tax liability
615,566
615,566
There were no deferred tax movements in the year.
The deferred tax liability set out above is expected to reverse in the future and relates to accelerated capital allowances that are expected to mature within the same period.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,222
41,829
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.
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
19
Hire purchase obligations
2024
2023
Future minimum payments due under hire purchase:
£
£
Within one year
205,204
240,464
In two to five years
135,555
151,092
340,759
391,556
Hire purchase payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Hire purchase include purchase options at the end of the hire purchase period, and no restrictions are placed on the use of the assets. The average term is 3 years. All hire purchase is on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
Share capital
2024
2023
£
£
Ordinary share capital
Authorised
100,000 Ordinary shares of £1 each
100,000
100,000
Issued and fully paid
10,000 Ordinary shares of £1 each
10,000
10,000
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
45,764
40,424
Between two and five years
26,331
52,001
72,095
92,425
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
12,500
12,600
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
22
Related party transactions
(Continued)
- 25 -
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Other related parties
21,925
21,165
59,433
52,517
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Other related parties
412,552
97,470
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
1,550
3,900
23
Directors' transactions
Dividends totalling £47,000 (2023 - £78,000) were paid in the year in respect of shares held by the company's director.
The director owns one and a half of the twelve depots from which the company operated during the year. The company operated from these premises rent free.
Included in other creditors due within one year is £4,930 (2023 - £9,835) due to the director, Mr T E Dighton. This is repayable on demand and is interest free.
Included in other borrowings due after more than one year is £250,000 (2023 - £275,000) due to the director, Mr T E Dighton. Interest is charged at 2% per annum on this loan.
24
Ultimate controlling party
The company is under the control of Mr T E Dighton who owns 51% of the issued shares.
THE CONCRETE COMPANY (THORNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
25
Cash generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(395,048)
59,607
Adjustments for:
Taxation charged
164,351
Finance costs
34,265
23,717
Investment income
(9,270)
(5,024)
Loss on disposal of tangible fixed assets
16,710
14,528
Depreciation and impairment of tangible fixed assets
450,162
464,462
Movements in working capital:
Increase in stocks
(107,154)
(32,011)
Decrease in debtors
133,766
440,330
Increase/(decrease) in creditors
25,679
(491,337)
Cash generated from operations
149,110
638,623
26
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
830,763
(190,184)
640,579
Borrowings excluding overdrafts
(275,000)
25,000
(250,000)
Obligations under finance leases
(391,556)
50,797
(340,759)
164,207
(114,387)
49,820
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