BROOKLAND SAND & AGGREGATES LIMITED
COMPANY INFORMATION
Director
NM Cleave
Company number
07104105
Registered office
Littlejohns Pit
Cocksbarrow
ST AUSTELL
Cornwall
PL26 8XT
Auditor
RRL LLP
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
BROOKLAND SAND & AGGREGATES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 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 - 23
BROOKLAND SAND & AGGREGATES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The director presents the strategic report for the year ended 30 June 2024.

Review of the business

 

Turnover for the year ended 30 June 2024 exceeded £13 million. This is a reduction on the previous year, as anticipated, due to the tailing off of supplies to the Cornwall A30 project which is nearing completion. The budget for the forthcoming year has been prepared accordingly and demonstrates that the company will continue to trade well.

As a consequence of the reduced turnover, direct costs have fallen, whilst other costs and overheads have remained relatively stable.

Principal risks and uncertainties

 

Uncertainties concerning the general economic climate, particularly following the change in UK government in 2024, make it difficult to predict and plan for the future.

Any fluctuations in activity within the construction industry has a direct impact on the company’s turnover.

Whilst the company continues to successfully retain its management team and workforce, the possible loss of key personnel and staff continues to be a risk. This is mitigated by the director’s ongoing approach to succession planning.

Understanding the dangerous working environment in which the business operates, the company continues to invest to ensure compliance with all relevant regulations and safeguard employees and visitors.

The healthy balance sheet together with the management teams’ combined experience will be of benefit to the company in overcoming any difficult economic challenges.

Development and performance

 

The director continues to recognise the importance of maintaining accreditation of internationally recognised ISO certifications. Achieving certification under ISO 9001, demonstrates the company’s commitment to produce quality products and Certification under ISO 14001 illustrates the company’s continuing objective to reduce its environmental impact and streamline its operations.

Continued profitability ensures that the company is able to sustain its policy to invest in the updating of plant and equipment.

Good relationships with suppliers enable the company to source goods and services at competitive prices.

The company continues to maintain strong working relationships with long-term customers, suppliers and hauliers whilst forming and developing associations with new contacts.

Key performance indicators

 

The director considers volume of production, turnover and profit after tax to be key performance indicators.

Debtor balances are constantly monitored and controlled. Checks are run on new customers before any orders are taken.

The balance sheet continues to remain strong. In August 2023 the company was able to hibernate the facility provided by Lloyds via the “Receivables Finance Agreement”, with a view to implementing a planned exit from the agreement in due course. Long term liabilities have been reduced and cash balances remain healthy, demonstrating that the company has no liquidity issues.

 

 

- 1 -
BROOKLAND SAND & AGGREGATES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

On behalf of the board

NM Cleave
Director
19 March 2025
- 2 -
BROOKLAND SAND & AGGREGATES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The director presents his annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of the production of aggregates and sands for general building uses.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £30,000. The director does not recommend payment of a further dividend.

Director

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

NM Cleave
Auditor

The auditor, RRL LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
NM Cleave
Director
19 March 2025
- 3 -
BROOKLAND SAND & AGGREGATES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024

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:

 

 

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.

- 4 -
BROOKLAND SAND & AGGREGATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BROOKLAND SAND & AGGREGATES LIMITED
Opinion

We have audited the financial statements of Brookland Sand & Aggregates Limited (the 'company') for the year ended 30 June 2024 which comprise 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

Other information

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:

- 5 -
BROOKLAND SAND & AGGREGATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BROOKLAND SAND & AGGREGATES LIMITED (CONTINUED)
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:

Responsibilities of director
- 6 -

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

 

As part of our audit work, we obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the laws and regulations most significant to the company, as well as the laws and regulations that have a direct impact on the preparation of the financial statements are: the Companies Act 2006, employee legislation and health and safety legislation.

 

The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

 

BROOKLAND SAND & AGGREGATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BROOKLAND SAND & AGGREGATES LIMITED (CONTINUED)

We also communicate relevant identified laws and regulations and potential fraud risk to all engagement team members and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Our audit approach also considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud being in respect of cut off and completion risk around revenue recognition. Under ISA (UK) we are also required to undertake procedures to respond to the risk of management override of controls. Our procedures included the following:

 

 

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Josh Stevens ACA
Senior Statutory Auditor
For and on behalf of RRL LLP
26 March 2025
Chartered Accountants
Statutory Auditor
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
- 7 -
BROOKLAND SAND & AGGREGATES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
2024
2023
Notes
£
£
Turnover
13,056,996
14,972,159
Cost of sales
(9,063,554)
(10,802,836)
Gross profit
3,993,442
4,169,323
Administrative expenses
(2,805,358)
(2,663,606)
Other operating income
6,564
27,433
Operating profit
3
1,194,648
1,533,150
Interest receivable and similar income
6
15,791
-
0
Interest payable and similar expenses
7
(149,471)
(141,684)
Profit before taxation
1,060,968
1,391,466
Tax on profit
8
(257,000)
(542,000)
Profit for the financial year
803,968
849,466
- 8 -
BROOKLAND SAND & AGGREGATES LIMITED
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
8,160,524
8,446,543
Current assets
Stocks
11
55,793
78,384
Debtors
12
2,090,872
1,998,324
Cash at bank and in hand
1,259,661
1,060,125
3,406,326
3,136,833
Creditors: amounts falling due within one year
13
(2,532,081)
(3,019,513)
Net current assets
874,245
117,320
Total assets less current liabilities
9,034,769
8,563,863
Creditors: amounts falling due after more than one year
14
(812,194)
(1,372,256)
Provisions for liabilities
Deferred tax liability
16
1,593,000
1,336,000
(1,593,000)
(1,336,000)
Net assets
6,629,575
5,855,607
Capital and reserves
Called up share capital
18
99
99
Profit and loss reserves
6,629,476
5,855,508
Total equity
6,629,575
5,855,607

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 19 March 2025
NM Cleave
Director
Company registration number 07104105 (England and Wales)
- 9 -
BROOKLAND SAND & AGGREGATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
99
5,006,042
5,006,141
Year ended 30 June 2023:
Profit and total comprehensive income
-
849,466
849,466
Balance at 30 June 2023
99
5,855,508
5,855,607
Year ended 30 June 2024:
Profit and total comprehensive income
-
803,968
803,968
Dividends
9
-
(30,000)
(30,000)
Balance at 30 June 2024
99
6,629,476
6,629,575
- 10 -
BROOKLAND SAND & AGGREGATES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
2,297,162
1,722,659
Interest paid
(149,471)
(141,684)
Net cash inflow from operating activities
2,147,691
1,580,975
Investing activities
Purchase of tangible fixed assets
(754,466)
(524,526)
Proceeds from disposal of tangible fixed assets
383,000
866,750
Interest received
15,791
-
0
Net cash (used in)/generated from investing activities
(355,675)
342,224
Financing activities
Payment of finance leases obligations
(1,562,480)
(1,560,587)
Dividends paid
(30,000)
-
0
Net cash used in financing activities
(1,592,480)
(1,560,587)
Net increase in cash and cash equivalents
199,536
362,612
Cash and cash equivalents at beginning of year
1,060,125
697,513
Cash and cash equivalents at end of year
1,259,661
1,060,125
- 11 -
BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
Company information

Brookland Sand & Aggregates Limited is a private company limited by shares incorporated in England and Wales. The registered office is Littlejohns Pit, Cocksbarrow, ST AUSTELL, Cornwall, PL26 8XT.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. 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
- 12 -

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

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.

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

Plant and machinery
20% straight line, 25% reducing balance, 20% reducing balance and 10% reducing balance

Freehold land is not depreciated.

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.

BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
1.5
Impairment of fixed assets
- 13 -

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

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

 

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

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

1.6
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.7
Cash and cash equivalents

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

1.8
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.

BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
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, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

- 14 -
BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
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
Taxation

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

Current tax

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

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

- 15 -
BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
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.

- 16 -

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.

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.

 

The key area of estimation uncertainty as assessed by management is the estimation of useful life of plant and equipment in determining depreciation rates.

BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange (gains)/losses
-
0
127
Fees payable to the company's auditor for the audit of the company's financial statements
11,390
10,850
Depreciation of owned tangible fixed assets
633,913
498,342
Depreciation of tangible fixed assets held under finance leases
553,706
412,460
Loss on disposal of tangible fixed assets
131,366
247,109
Operating lease charges
43,971
38,998
4
Employees

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

2024
2023
Number
Number
15
16

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
647,434
624,936
Social security costs
69,756
67,763
Pension costs
175,884
25,006
893,074
717,705
5
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
93,750
86,000
Company pension contributions to defined contribution schemes
152,642
2,642
246,392
88,642
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
15,791
-
0
- 17 -
BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
(Continued)
6
Interest receivable and similar income
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
15,791
-
0
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
149,471
141,684
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
257,000
542,000

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

2024
2023
£
£
Profit before taxation
1,060,968
1,391,466
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
265,242
264,379
Tax effect of expenses that are not deductible in determining taxable profit
2,156
294
Unutilised tax losses carried forward
(175,859)
(23,096)
Deferred tax charge
257,000
542,000
Net capital allowances
(91,539)
(244,012)
Capital gains
-
0
2,435
Taxation charge for the year
257,000
542,000

Unrelieved corporation tax losses to be carried forward amount to £730,460 (2023: £1,443,894).

9
Dividends
2024
2023
£
£
Final paid
30,000
-
0
- 18 -
BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Tangible fixed assets
Plant and machinery
£
Cost
At 1 July 2023
12,104,137
Additions
1,415,966
Disposals
(858,882)
At 30 June 2024
12,661,221
Depreciation and impairment
At 1 July 2023
3,657,594
Depreciation charged in the year
1,187,619
Eliminated in respect of disposals
(344,516)
At 30 June 2024
4,500,697
Carrying amount
At 30 June 2024
8,160,524
At 30 June 2023
8,446,543

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
3,319,606
5,035,394

Finance lease liabilities are secured on assets to which they relate.

11
Stocks
2024
2023
£
£
Finished goods and goods for resale
55,793
78,384
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,622,540
1,936,808
Other debtors
27,144
34,840
Prepayments and accrued income
441,188
26,676
2,090,872
1,998,324
- 19 -
BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Debtors
(Continued)

Other debtors include £19,418 (2023: £23,114) which relate to an invoice financing facility provided by Lloyds Bank Plc secured by a debenture over the assets of the company. In August 2023 the company was able to hibernate the facility provided by Lloyds via the “Receivables Finance Agreement”, with a view to implementing a planned exit from the agreement in due course.

13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
15
1,110,169
1,451,087
Trade creditors
743,142
955,538
Taxation and social security
191,308
111,626
Other creditors
8,123
8,289
Accruals and deferred income
479,339
492,973
2,532,081
3,019,513
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
15
812,194
1,372,256
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
1,110,169
1,451,087
In two to five years
812,194
1,372,256
1,922,363
2,823,343

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

- 20 -
BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,514,354
1,063,400
Tax losses
78,646
272,600
1,593,000
1,336,000
2024
Movements in the year:
£
Liability at 1 July 2023
1,336,000
Charge to profit or loss
257,000
Liability at 30 June 2024
1,593,000

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
175,884
25,006

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

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
99
99
99
99

The company has one class of ordinary shares which carry no right to fixed income.

- 21 -
BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
19
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
44,000
44,000
Between two and five years
162,333
176,000
In over five years
-
0
30,333
206,333
250,333
20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties being a partnership of which the company's director is also a partner:

Purchases
Purchases
2024
2023
£
£
Other related parties
1,811,545
1,841,102
2024
2023
Amounts due to related parties
£
£
Other related parties
163,625
213,457
Other information

Included in other creditors is the director's current account balance of £1,007 (2023: £1,059).

21
Ultimate controlling party

The ultimate controlling party is NM Cleave, director and shareholder.

- 22 -
BROOKLAND SAND & AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
803,968
849,466
Adjustments for:
Taxation charged
257,000
542,000
Finance costs
149,471
141,684
Investment income
(15,791)
-
0
Loss on disposal of tangible fixed assets
131,366
247,109
Depreciation and impairment of tangible fixed assets
1,187,619
910,802
Movements in working capital:
Decrease in stocks
22,591
8,680
(Increase)/decrease in debtors
(92,548)
893,201
Decrease in creditors
(146,514)
(1,870,283)
Cash generated from operations
2,297,162
1,722,659
23
Analysis of changes in net debt
1 July 2023
Cash flows
New finance leases
30 June 2024
£
£
£
£
Cash at bank and in hand
1,060,125
199,536
-
1,259,661
Obligations under finance leases
(2,823,343)
1,562,480
(661,500)
(1,922,363)
(1,763,218)
1,762,016
(661,500)
(662,702)
24
Auditor's liability limitation agreement

For the year ended 30 June 2024, the company entered into a liability limitation agreement with its auditors, the principal terms of which limit the liability of the auditors to £5,000,000 to relation to their responsibilities as auditors of the company. The date of this agreement was 5 November 2024.

- 23 -
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