Company registration number 15091535 (England and Wales)
TRINITY SURFACING GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2024
Affinia
Swift House
Ground Floor
18 Hoffmanns Way
Chelmsford
Essex
UK
CM1 1GU
TRINITY SURFACING GROUP LIMITED
COMPANY INFORMATION
Directors
Mr D J Smith
(Appointed 23 August 2023)
Mr A D Winter
(Appointed 23 August 2023)
Company number
15091535
Registered office
Unit 15
Kingsnorth Industrial Estate
Hoo
Rochester
ME3 9ND
Auditor
Affinia (Chelmsford)
Swift House
Ground Floor
18 Hoffmanns Way
Chelmsford
Essex
UK
CM1 1GU
TRINITY SURFACING GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Income statement
9
Group statement of comprehensive income
10
Group statement of financial position
11
Company statement of financial position
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 32
TRINITY SURFACING GROUP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 JULY 2024
- 1 -
The directors present the strategic report for the period ended 31 July 2024.
Review of the business
This is the first set of results for Trinity Surfacing Group Limited which cover the period from the Company's incorporation on 23 August 2023 to 31 July 2024. Consequently, no financial comparatives are presented. The Group started trading from the date of acquisition of Trinity Surfacing Limited and therefore results are for 11 months of trading. The Company was incorporated with the strategic purpose of acquiring 100 per cent ownership of Trinity Surfacing Limited and Trinity Highways Limited. The Company completed the acquisition of the Trinity Surfacing limited and Trinity Highways Limited on 6 September 2023 for a total amount of £3 million through issuance of 3 million preference shares with £1 par value and by issuing £1,200 cash for Trinity Highways Limited.
Principal risks and uncertainties
Many of our clients are now seeing the impacts of the recent economic turmoil. Whilst this does not effect out current order book, it is highly likely that the upcoming years will be affected. We are fortunate that we have a diverse market including commercial clients as well as local authority clients to enable our work portfolio to be spread and dampen any industry shocks.
Development and performance
We maintain a strong reputation for providing our clients with completed projects on time, budget and to the quality required. This enables us to win repeat work with a loyal client base.
We continue to invest in modern plant and machinery to serve our workforce and clients.
Key performance indicators
Mr D J Smith
Director
26 March 2025
TRINITY SURFACING GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 JULY 2024
- 2 -
The directors present their annual report and financial statements for the period ended 31 July 2024.
Principal activities
The principal activity of the company and group continued to be that of construction of road surfaces.
Results and dividends
The results for the period are set out on page 9.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr D J Smith
(Appointed 23 August 2023)
Mr A D Winter
(Appointed 23 August 2023)
Mr B Bridges
(Appointed 23 August 2023 and resigned 11 December 2024)
Financial instruments
Liquidity risk
The group's objective is to maintain a balance between continuing of funding and flexible use of funding by way of invoice discounting arrangement, company credit cards and similar arrangements. Short term flexibility is achieved by overdrafts facilities.
Interest rate risk
The group has a policy to manage any exposure to interest rate fluctuations so as to finance its operations through retained profits.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Financial assets
The group has no financial assets other than short-term debtors and cash at bank.
Auditor
Affinia (Chelmsford) were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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 auditor of the company 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 auditor of the company is aware of that information.
Incorporation
The parent company was incorporated on 23 August 2023 and on 6 September 2023, control of Trinity Surfacing Limited and Trinity Highways Limited was gained.
TRINITY SURFACING GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 3 -
On behalf of the board
Mr D J Smith
Director
26 March 2025
TRINITY SURFACING GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 JULY 2024
- 4 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
TRINITY SURFACING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRINITY SURFACING GROUP LIMITED
- 5 -
Qualified opinion on financial statements
We have audited the financial statements of Trinity Surfacing Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 July 2024 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
During the audit, we were unable to obtain sufficient appropriate audit evidence regarding the reserves and net assets of Trinity Surfacing Limited at the date of acquisition due to the previous period accounts of the subsidiary not being audited. As a result, there is a degree of uncertainty in the valuation of reserves and net assets at the acquisition date, including the fair value of assets at the point of acquisition. Consequently, we were unable to determine whether any adjustments might be necessary in respect of the reported amounts of goodwill, reserves, and net assets in the consolidated financial statements for the year ended 31 July 2024.
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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
TRINITY SURFACING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRINITY SURFACING GROUP LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
Except for the matter described in the Basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
Except for the matter described in the basis for qualified opinion section of our report, 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 misstatement in the directors' report.
Arising solely from the limitation of scope of our work relating to reserves and net assets of Trinity Surfacing Limited at the date of acquisition, referred to above:
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
TRINITY SURFACING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRINITY SURFACING GROUP LIMITED
- 7 -
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors, and from our commercial knowledge and experience of the construction of road surfaces sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including Companies Act 2006, taxation legislation, data protection, and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and reviewing for evidence of correspondence with legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
TRINITY SURFACING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRINITY SURFACING GROUP LIMITED
- 8 -
Richard Lane (Senior Statutory Auditor)
For and on behalf of Affinia (Chelmsford)
26 March 2025
Chartered Accountants
Statutory Auditor
Swift House
Ground Floor
18 Hoffmanns Way
Chelmsford
Essex
UK
CM1 1GU
TRINITY SURFACING GROUP LIMITED
GROUP INCOME STATEMENT
FOR THE PERIOD ENDED 31 JULY 2024
- 9 -
Period
ended
31 July
2024
Notes
£
Turnover
3
18,294,410
Cost of sales
(15,048,756)
Gross profit
3,245,654
Administrative expenses
(2,566,088)
Operating profit
4
679,566
Interest payable and similar expenses
7
(114,368)
Profit before taxation
565,198
Tax on profit
8
(243,603)
Profit for the financial period
321,595
Profit for the financial period is all attributable to the owners of the parent company.
TRINITY SURFACING GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 JULY 2024
- 10 -
Period
ended
31 July
2024
£
Profit for the period
321,595
Other comprehensive income
-
Cash flow hedges gain arising in the period
Total comprehensive income for the period
321,595
Total comprehensive income for the period is all attributable to the owners of the parent company.
TRINITY SURFACING GROUP LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
- 11 -
2024
Notes
£
£
Fixed assets
Goodwill
9
1,916,114
Tangible assets
10
2,663,820
4,579,934
Current assets
Debtors
13
5,353,432
Cash at bank and in hand
317,802
5,671,234
Creditors: amounts falling due within one year
14
(4,628,248)
Net current assets
1,042,986
Total assets less current liabilities
5,622,920
Creditors: amounts falling due after more than one year
15
(2,976,642)
Provisions for liabilities
Deferred tax liability
18
480,313
(480,313)
Net assets
2,165,965
Capital and reserves
Called up share capital
20
1,844,370
Profit and loss reserves
321,595
Total equity
2,165,965
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on
26 March 2025
26 March 2025
and are signed on its behalf by:
Mr D J Smith
Director
Company registration number 15091535 (England and Wales)
TRINITY SURFACING GROUP LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
- 12 -
2024
Notes
£
£
Fixed assets
Investments
11
3,000,000
Current assets
Debtors
13
1,000
Net current assets
1,000
Total assets less current liabilities
3,001,000
Creditors: amounts falling due after more than one year
15
(1,156,630)
Net assets
1,844,370
Capital and reserves
Called up share capital
20
1,844,370
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0.
The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
Mr D J Smith
Director
Company registration number 15091535 (England and Wales)
TRINITY SURFACING GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JULY 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 23 August 2023
Period ended 31 July 2024:
Profit and total comprehensive income
-
321,595
321,595
Issue of share capital
20
1,844,370
-
1,844,370
Balance at 31 July 2024
1,844,370
321,595
2,165,965
TRINITY SURFACING GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JULY 2024
- 14 -
Share capital
Notes
£
Balance at 23 August 2023
Period ended 31 July 2024:
Profit and total comprehensive income
-
Issue of share capital
20
1,844,370
Balance at 31 July 2024
1,844,370
TRINITY SURFACING GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 JULY 2024
- 15 -
2024
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
614,778
Interest paid
(3,319)
Income taxes refunded
193,193
Net cash inflow/(outflow) from operating activities
804,652
Investing activities
Purchase of tangible fixed assets
(482,713)
Proceeds from disposal of tangible fixed assets
29,776
Purchase of subsidiaries, net of cash acquired
155,704
Net cash used in investing activities
(297,233)
Financing activities
Proceeds from issue of shares
1,000
Repayment of bank loans
(10,113)
Payment of finance leases obligations
(180,505)
Net cash used in financing activities
(189,618)
Net increase in cash and cash equivalents
317,802
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
317,802
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2024
- 16 -
1
Accounting policies
Company information
Trinity Surfacing Group Limited (“the group”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 15, Kingsnorth Industrial Estate, Hoo, Rochester, ME3 9ND.
The group consists of Trinity Surfacing Group Limited and Trinity Surfacing Limited.
1.1
Reporting period
The group was incorporated on 23 August 2023. As a result, the financial statements are for a period of not equal to 12 months with no comparative results.
1.2
Accounting convention
These are the first financial statements of the Group in accordance with “The Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) and the requirements of the Companies Act 2006.
The group has early adopted the March 2024 amendments to FRS 102 within these financial statements for the current accounting period.
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.
1.3
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.4
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Trinity Surfacing Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 July 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.5
Going concern
Due to the level of reserves and the profitability of the company, attrue the time of approving the financial statements and the time the company has been in existence, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.6
Turnover
Turnover represents net invoiced sales. The amount recorded as turnover in respect of long term contracts is ascertained by reference to the output method for applying the percentage of completion method.
Revenue is recognised once work that has been performed has been certified for approval based on the stage of completion of the contract’s activity by the customer in relation to the total work to be completed on the contract. Once the application and invoice for works performed have been approved by the customer, amounts are then paid to the entity by the customer.
As included in Note 1.2 above, the group has early adopted the amendments of the 31 March 2024 FRS 102 within these financial statements. Contract costs are as a result, charged to profit and loss as incurred irrespective of the stage of completion
Turnover is measured at the fair value of the consideration received or receivable, excluding value added tax.
1.7
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.8
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:
Leasehold land and buildings
10% reducing balance
Right of use asset
Shorter of the lease term and the useful life of the asset
Plant and equipment
20% reducing balance
Fixtures and fittings
20% reducing balance
Computers
20% reducing balance
Motor vehicles
20% reducing balance
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 recognised in the income statement.
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.10
Impairment of fixed assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
1.12
Financial instruments
The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 19 -
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.
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.
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 group 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.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 20 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 group’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 income statement, 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 if, and only if, there is 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.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 21 -
1.17
Leases
As per note 1.2, The group has early adopted the 31 March 2024 amendments to FRS 102 within these financial statements for the current accounting period. The previous accounting period has also been adjusted to reflect this early amendment in relation to the impacts to accounting for leases.
At inception of a contract, the company assesses whether the contract is or contains a lease. A contract is, or contains, a lease if it conveys the right to control the use of the identified asset for a period of time and in exchange for consideration.
The group as a lessee:
At the commencement of the lease term, a right-of-use asset and a lease liability is recognised on the statement of financial position.
The right-of-use asset is measured at cost comprising the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories.
The lease liability is measured at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the incremental borrowing rate is utilised.
At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:
(a) fixed payments less any lease incentives receivable;
(b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
(c) amounts expected to be payable by the lessee under residual value guarantees;
(d) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option and;
(e) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.
Right-of-use assets are accounted for as property, plant and equipment. They are depreciated using the straight-line or unit of production basis at rates considered appropriate to reduce the carrying value over the estimated useful lives to the estimated residual values. Where it is not certain that an asset will be taken over by the company at the end of the lease, the asset is depreciated over the shorter of the lease period and the estimated useful life of the asset.
Lease payments are allocated between the lease finance cost and the capital repayment using the effective interest rate method. Lease finance costs are charged to the statement of profit and loss as they become due. The carrying amount of the lease liability is remeasured to reflect any reassessment, lease modifications or revised in-substance fixed payments. The amount of the remeasurement is recognised as an adjustment to the right of-use asset and any further reduction required is recognised in profit or loss.
Short-Term and Low Value Leases
Leases with a lease term of less than 12 months or leases of assets which are low value in nature are not recognised on the statement of financial position. The lease payments on these leases are recognised as an expense on a straight-line basis over the lease term.
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 22 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Bad debt probision
Provision is made for bad debts. This requires management's best estimate of the value of payments expected to be received in the future. In addition, the timing of the cash flows requires management's judgement.
Impairment of Intangible Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset's recoverable amount to determine the extent of the impairment loss. An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.
Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses on continuing operations are recognised in the income statement in those expense categories consistent with the function of the impaired asset.
For assets 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, not to exceed the carrying amount that would have been determined, net of depreciation, had no impairment losses been recognised for the asset or cash generating unit in prior years. A reversal of impairment loss is recognised immediately.
3
Turnover
2024
£
Turnover analysed by class of business
Construction of road surfacing
18,269,087
Other income
25,323
18,294,410
2024
£
Turnover analysed by geographical market
United Kingdom
18,294,410
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 23 -
4
Operating profit
2024
£
Operating profit for the period is stated after charging:
Fees payable to the group's auditor for the audit of the group's financial statements
3,000
Depreciation of owned tangible fixed assets
350,049
Loss on disposal of tangible fixed assets
84,637
Amortisation of intangible assets
193,847
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the period was:
Group
Company
2024
2024
Number
Number
Directors
3
3
Administration
16
-
Production
20
-
Total
39
3
Their aggregate remuneration comprised:
Group
Company
2024
2024
£
£
Wages and salaries
2,066,837
Social security costs
235,232
-
Pension costs
22,518
2,324,587
6
Directors' remuneration
2024
£
Remuneration for qualifying services
60,019
Social security costs
4,523
64,542
Key management personnel is regards as comprising the board of directors and the total remuneration of key management personnel is disclosed above.
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 24 -
7
Interest payable and similar expenses
2024
£
Other finance costs:
Interest on finance leases and hire purchase contracts
110,216
Other interest
4,152
Total finance costs
114,368
8
Taxation
2024
£
Current tax
UK corporation tax on profits for the current period
48,913
Deferred tax
Origination and reversal of timing differences
194,690
Total tax charge
243,603
The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:
2024
£
Profit before taxation
565,198
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
141,300
Tax effect of expenses that are not deductible in determining taxable profit
102,518
Permanent capital allowances in excess of depreciation
(191,186)
Other permanent differences
(3,719)
Measurement of deferred tax
194,690
Taxation charge
243,603
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 25 -
9
Intangible fixed assets
Group
Goodwill
£
Cost
At 23 August 2023
Additions
2,109,961
At 31 July 2024
2,109,961
Amortisation and impairment
At 23 August 2023
Amortisation charged for the period
193,847
At 31 July 2024
193,847
Carrying amount
At 31 July 2024
1,916,114
The parent company has no Intangible fixed assets.
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 26 -
10
Tangible fixed assets
Group
Right of use assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 23 August 2023
Additions
903,901
45,810
15,539
517,467
1,482,717
Business combinations
486,146
9,589
854,136
3,461
7,996
284,237
1,645,565
Disposals
(179,622)
(1,410)
(89,690)
(270,722)
At 31 July 2024
486,146
9,589
1,578,415
47,861
23,535
712,014
2,857,560
Depreciation and impairment
At 23 August 2023
Depreciation charged in the period
54,590
1,077
208,356
2,957
2,834
80,235
350,049
Eliminated in respect of disposals
(114,336)
(508)
(41,465)
(156,309)
At 31 July 2024
54,590
1,077
94,020
2,449
2,834
38,770
193,740
Carrying amount
At 31 July 2024
431,556
8,512
1,484,395
45,412
20,701
673,244
2,663,820
The parent company has no tangible fixed assets.
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
10
Tangible fixed assets
(Continued)
- 27 -
The net carrying value of the tangible fixed assets includes plant and machinery amounting to £1,436,799 as well as motor vehicles amounting to £673,244 that are held under finance leases or hire purchase contracts.
11
Fixed asset investments
Group
Company
2024
2024
Notes
£
£
Investments in subsidiaries
12
3,000,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 23 August 2023
-
Additions
3,000,000
At 31 July 2024
3,000,000
Carrying amount
At 31 July 2024
3,000,000
12
Subsidiaries
Details of the company's subsidiaries at 31 July 2024 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Trinity Surfacing Ltd
1
Ordinary
100.00
Trinity Highways Ltd
1
Ordinary
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Unit 15, Kingsnorth Industrial Estate, Hoo, Rochester, ME3 9ND
13
Debtors
Group
Company
2024
2024
Amounts falling due within one year:
£
£
Trade debtors
4,573,872
Corporation tax recoverable
134
Other debtors
568,184
1,000
Prepayments and accrued income
211,242
5,353,432
1,000
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
13
Debtors
(Continued)
- 28 -
Included within trade debtors are retentions due from customers. The group performs regular reviews of the recoverability of these amounts. The total amount of retentions included within trade debtors at the balance sheet date is £531,788. The impairment charges amounted to £54,890.
14
Creditors: amounts falling due within one year
Group
Company
2024
2024
Notes
£
£
Bank loans
16
10,000
Obligations under finance leases
17
487,137
Lease liabilities
16
50,247
Trade creditors
3,140,108
Corporation tax payable
48,913
Other taxation and social security
111,566
-
Other creditors
298,348
Accruals and deferred income
481,929
4,628,248
During the reporting period, Trinity Surfacing Limited had a charge with Aldermore Bank which was satisfied and a new charge was raised on 12 April 2024 by Lloyds Bank PLC. As at 31 July 2024, the outstanding balance owed by Lloyds Bank Commercial Finance Limited included within other debtors was £11,406.
There was a new charge for Trinity Surfacing Limited that was raised on 30 July 2024 by Lloyds Bank PLC. The facility is secured by a debenture over all the assets of the company and a joint and several personal guarantee from the directors and shareholders. There were no charges during the current year relating to the Company.
The bank loan is repayable over a term over of 5 years and is secured by the Government guarantees.
The finance leases are secured on the assets concerned.
15
Creditors: amounts falling due after more than one year
Group
Company
2024
2024
Notes
£
£
Bank loans and overdrafts
16
8,341
Obligations under finance leases
17
1,413,430
Lease liabilities
16
398,241
Other creditors
1,156,630
1,156,630
2,976,642
1,156,630
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
15
Creditors: amounts falling due after more than one year
(Continued)
- 29 -
Other creditors relates to preference shares issued in the period classified as liabilities in line with note 21.
This element of preference shares classified as liabilities is in relation to amounts redeemable by the preference shareholders on a return of assets on the event of liquidation, capital reduction or otherwise.
A period of 10 years from the date of issue of £3m preference shares on 6 September 2023 has been determined to be appropriate and discounting the anticipated payment to shareholders with an applied discount rate of 10% has arrived at £1,156,630 at 31 July 2024.
16
Loans and overdrafts
Group
Company
2024
2024
£
£
Bank loans
18,341
Payable within one year
10,000
Payable after one year
8,341
17
Finance lease obligations
Group
Company
2024
2024
£
£
Future minimum lease payments due under finance leases:
Within one year
537,384
In two to five years
1,811,671
2,349,055
-
The finance leases included above as per notes 15 and 16 are secured on the assets concerned.
The group has a 10 year operating lease for unit 15 Kingsnorth Industrial Estate Kent which terminates in March 2032 and has been included above as per noted 15 and 16.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
2024
Group
£
Accelerated capital allowances
480,313
The company has no deferred tax assets or liabilities.
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
18
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the period:
£
£
Liability at 23 August 2023
-
-
Liability at 6 September 2023
285,623
-
Charge to profit or loss
194,690
-
Liability at 31 July 2024
480,313
-
19
Retirement benefit schemes
2024
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
22,518
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
20
Share capital
Group and company
2024
2024
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
750
750
Ordinary A shares of £1 each
250
250
1,000
1,000
2024
2024
Preference share capital
Number
£
Issued and fully paid
Preference shares of £1 each
3,000,000
3,000,000
Preference shares classified as equity
1,843,370
Preference shares classified as liabilities
1,156,630
3,000,000
Total equity share capital
1,844,370
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 31 -
21
Acquisition of a business
On 6 September 2023 the group acquired 100 percent of the issued capital of Trinity Surfacing Ltd.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Tangible fixed assets
1,159,419
-
1,159,419
Trade and other receivables
4,031,686
-
4,031,686
Cash and cash equivalents
156,100
-
156,100
Trade and other payables
(4,351,934)
-
(4,351,934)
Provisions
(92,889)
-
(92,889)
Total identifiable net assets
902,382
-
902,382
Goodwill
2,097,618
Total consideration
3,000,000
The consideration was satisfied by:
£
Issue of shares
3,000,000
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
18,293,484
Profit after tax
321,672
On 6 September 2023 the group acquired 100 percent of the issued capital of Trinity Highways Ltd.
The business was acquired for no consideration.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Trade and other receivables
755
-
755
Cash and cash equivalents
3
-
3
Trade and other payables
(13,101)
-
(13,101)
Total identifiable net assets
(12,343)
-
(12,343)
Goodwill
12,343
Total consideration
1,200
TRINITY SURFACING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
21
Acquisition of a business
(Continued)
- 32 -
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
925
Loss after tax
(77)
In relation to Trinity Highways Limited, management are taking audit exemption by parent guarantee under S479A Companies Act 2006.
22
Controlling party
The group has been controlled throughout the period by Mr B Bridges and Mr D Smith, directors of the company, by virtue of their shareholding in the parent company.
23
Cash generated from/(absorbed by) group operations
2024
£
Profit for the period after tax
321,595
Adjustments for:
Taxation charged
243,603
Finance costs
114,368
Loss on disposal of tangible fixed assets
84,637
Amortisation and impairment of intangible assets
193,847
Depreciation and impairment of tangible fixed assets
350,049
Movements in working capital:
Increase in debtors
(1,623,559)
Increase in creditors
930,238
Cash generated from/(absorbed by) operations
614,778
24
Analysis of changes in net debt - group
23 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
-
317,802
317,802
Borrowings excluding overdrafts
-
(18,341)
(18,341)
Obligations under finance leases
-
(2,349,055)
(2,349,055)
-
(2,049,594)
(2,049,594)
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