BANWY FUELS LIMITED
Company registration number 05535664 (England and Wales)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
BANWY FUELS LIMITED
COMPANY INFORMATION
Directors
Mr C M Edwards
Mrs H J Edwards
Company number
05535664
Registered office
Glanverniew
Llangyniew
Welshpool
Powys
SY21 9EH
Auditor
Dyke Yaxley Limited
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
BANWY FUELS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
BANWY FUELS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
The directors present the strategic report for the year ended 31 July 2024.
Review of the business
The directors are happy with the company performance throughout the year and continues to monitor this through the gross margin which is 9.8% for the year, an increase on the previous year (2023 9.5%).
The company continues to retain existing customers and has gained a significant number of new customers which has been achieved through the hard work of the entire team providing an excellent service along with competitive prices.
Investment has been made into the infrastructure of the loading depot and the vehicle fleet to provide an even more efficient delivery service
The demand for renewable fuels for commercial use continues to grow. As part of its efforts to provide more sustainable solutions the company has made available the low carbon fuel HVO (Hydrotreated Vegetable Oil). This renewable fuel is an alternative to road diesel and gas oil and can therefore be used in diesel engines whilst producing fewer carbon emissions.
Principal risks and uncertainties
Government investment in renewables such as air source heat pumps and a continued lack of commitment to renewable liquid fuels continues to be a concern. The company is supporting UKIFDA in promoting HVO as a lower carbon form of heating.
There remains concern that further competition in the market will drive prices down and erode profit margins. It is therefore imperative that the company continues to budget well and exercise tight control over costs.
Development and performance
The company has invested in infrastructure to improve efficiency and new products to provide more sustainable solutions. The customer base has increased at the same time putting the company in a strong position within the current market.
Other performance indicators
The directors monitor the company performance throughout the year through the gross margin which is 9.8% for the year, an increase on the previous year (2023 9.5%)
Mr C M Edwards
Director
6 February 2025
BANWY FUELS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company is that of distributors of fuel.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £240,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D E Edwards
(Resigned 15 July 2024)
Mr C M Edwards
Mrs H J Edwards
Auditor
The auditor, Dyke Yaxley Limited, 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.
On behalf of the board
Mr C M Edwards
Director
6 February 2025
BANWY FUELS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BANWY FUELS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BANWY FUELS LIMITED
- 4 -
Opinion
We have audited the financial statements of Banwy Fuels Limited (the 'company') for the year ended 31 July 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BANWY FUELS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BANWY FUELS LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities including fraud
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:
Enquiry of management, those charged with governance around actual and potential litigation and claims.
Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Enquiry of management to gain an understanding on the entity's policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud.
In addition we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty. These include compliance with transport, environmental and health and safety legislation.
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.
BANWY FUELS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BANWY FUELS LIMITED (CONTINUED)
- 6 -
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.
Elwyn Turner FCA
Senior Statutory Auditor
For and on behalf of Dyke Yaxley Limited
7 February 2025
Chartered Accountants
Statutory Auditor
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
BANWY FUELS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
38,113,509
40,973,343
Cost of sales
(34,386,149)
(37,062,942)
Gross profit
3,727,360
3,910,401
Distribution costs
(463,747)
(484,718)
Administrative expenses
(1,884,898)
(1,528,862)
Operating profit
4
1,378,715
1,896,821
Interest receivable and similar income
8
136,384
33,805
Interest payable and similar expenses
9
(14,073)
(9,924)
Profit before taxation
1,501,026
1,920,702
Tax on profit
10
(383,305)
(399,953)
Profit for the financial year
1,117,721
1,520,749
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BANWY FUELS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
2024
2023
£
£
Profit for the year
1,117,721
1,520,749
Other comprehensive income
-
-
Total comprehensive income for the year
1,117,721
1,520,749
BANWY FUELS LIMITED
BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
Tangible assets
12
1,183,545
841,493
Investments
13
100
100
1,183,645
841,593
Current assets
Stocks
15
502,404
758,505
Debtors
16
3,864,936
3,073,573
Cash at bank and in hand
2,370,372
4,157,799
6,737,712
7,989,877
Creditors: amounts falling due within one year
17
(1,433,668)
(1,757,279)
Net current assets
5,304,044
6,232,598
Total assets less current liabilities
6,487,689
7,074,191
Creditors: amounts falling due after more than one year
18
(2,778)
(70,352)
Provisions for liabilities
Provisions
20
115,000
90,000
Deferred tax liability
21
294,470
208,619
(409,470)
(298,619)
Net assets
6,075,441
6,705,220
Capital and reserves
Called up share capital
23
50
100
Capital redemption reserve
24
50
Profit and loss reserves
6,075,341
6,705,120
Total equity
6,075,441
6,705,220
The financial statements were approved by the board of directors and authorised for issue on 6 February 2025 and are signed on its behalf by:
Mr C M Edwards
Director
Company Registration No. 05535664
BANWY FUELS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2022
100
5,424,371
5,424,471
Year ended 31 July 2023:
Profit and total comprehensive income
-
-
1,520,749
1,520,749
Dividends
11
-
-
(240,000)
(240,000)
Balance at 31 July 2023
100
6,705,120
6,705,220
Year ended 31 July 2024:
Profit and total comprehensive income
-
-
1,117,721
1,117,721
Dividends
11
-
-
(240,000)
(240,000)
Redemption of shares
23
50
(1,507,500)
(1,507,450)
Reduction of shares
23
(50)
-
(50)
Balance at 31 July 2024
50
50
6,075,341
6,075,441
BANWY FUELS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
946,360
3,466,008
Interest paid
(14,073)
(9,924)
Income taxes paid
(382,435)
(539,441)
Net cash inflow from operating activities
549,852
2,916,643
Investing activities
Purchase of tangible fixed assets
(625,621)
(165,627)
Proceeds from disposal of tangible fixed assets
28,002
Interest received
136,384
33,805
Net cash used in investing activities
(461,235)
(131,822)
Financing activities
Redemption of shares
(1,507,500)
Payment of finance leases obligations
(128,544)
(173,855)
Dividends paid
(240,000)
(240,000)
Net cash used in financing activities
(1,876,044)
(413,855)
Net (decrease)/increase in cash and cash equivalents
(1,787,427)
2,370,966
Cash and cash equivalents at beginning of year
4,157,799
1,786,833
Cash and cash equivalents at end of year
2,370,372
4,157,799
BANWY FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
1
Accounting policies
Company information
Banwy Fuels Limited is a private company limited by shares incorporated in England and Wales. The registered office is Glanverniew, Llangyniew, Welshpool, Powys, SY21 9EH.
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 directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods 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.
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:
Land and buildings Freehold
5% straight line
Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
25% reducing balance
Motor vehicles
25% 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 credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
BANWY FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
1.7
Stocks
Stocks are stated using the average cost method.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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.
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
BANWY FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -
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.
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Dilapidation provision
Determining the best estimate of the amount required to settle the obligation at the reporting date, in relation to the dilapidation provision, requires an overall assessment of the total expected remediation costs to be made. Further details of the dilapidation provision valuation are set out in note 20.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Fuel
35,097,738
37,012,105
Coal and gas
858,628
1,031,834
Other
346,380
448,368
Wood pellets
1,810,763
2,481,036
38,113,509
40,973,343
2024
2023
£
£
Other revenue
Interest income
136,384
33,805
BANWY FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 15 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(39)
118
Fees payable to the company's auditor for the audit of the company's financial statements
21,700
19,500
Depreciation of owned tangible fixed assets
170,832
121,518
Depreciation of tangible fixed assets held under finance leases
79,534
106,047
Loss on disposal of tangible fixed assets
5,201
-
Operating lease charges
59,535
74,527
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
21,700
19,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
26
25
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
826,998
779,560
Social security costs
71,027
69,857
Pension costs
255,484
16,619
1,153,509
866,036
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
37,225
37,129
Company pension contributions to defined contribution schemes
238,271
650
275,496
37,779
BANWY FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
7
Directors' remuneration
(Continued)
- 16 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 0).
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
136,384
33,805
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
136,384
33,805
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
9,449
10,054
Other interest
4,624
(130)
14,073
9,924
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
297,626
381,975
Adjustments in respect of prior periods
(172)
Total current tax
297,454
381,975
Deferred tax
Origination and reversal of timing differences
85,851
17,978
Total tax charge
383,305
399,953
On 1 April 2023, the rate of corporation tax increased from 19% to 25%.
BANWY FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
10
Taxation
(Continued)
- 17 -
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
1,501,026
1,920,702
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.01%)
375,257
403,539
Tax effect of expenses that are not deductible in determining taxable profit
9,182
Adjustments in respect of prior years
(172)
Permanent capital allowances in excess of depreciation
(86,813)
(21,999)
Other non-reversing timing differences
85,851
17,978
Pensions
435
Taxation charge for the year
383,305
399,953
11
Dividends
2024
2023
£
£
Interim paid
240,000
240,000
12
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2023
27,062
226,830
33,121
1,638,411
1,925,424
Additions
197,947
1,212
426,462
625,621
Disposals
(121,822)
(121,822)
At 31 July 2024
27,062
424,777
34,333
1,943,051
2,429,223
Depreciation and impairment
At 1 August 2023
20,044
150,738
25,775
887,374
1,083,931
Depreciation charged in the year
1,353
31,208
2,016
215,789
250,366
Eliminated in respect of disposals
(88,619)
(88,619)
At 31 July 2024
21,397
181,946
27,791
1,014,544
1,245,678
Carrying amount
At 31 July 2024
5,665
242,831
6,542
928,507
1,183,545
At 31 July 2023
7,018
76,092
7,346
751,037
841,493
BANWY FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
12
Tangible fixed assets
(Continued)
- 18 -
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
£
£
Motor vehicles
238,605
318,139
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
100
100
14
Subsidiaries
Details of the company's subsidiaries at 31 July 2024 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Banwy Gas and Biomass Limited
1
Ordinary shares
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Glanverniew, Llangyniew, Welshpool, Powys, SY21 9EH
This subsidiary is a dormant company.
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
502,404
758,505
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,012,558
2,510,289
Other debtors
833,962
428,041
Prepayments and accrued income
18,416
135,243
3,864,936
3,073,573
BANWY FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 19 -
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
67,574
128,544
Trade creditors
1,138,481
1,241,879
Amounts owed to group undertakings
100
100
Corporation tax
146,992
231,973
Other taxation and social security
20,433
14,640
Other creditors
38,238
120,493
Accruals and deferred income
21,850
19,650
1,433,668
1,757,279
Obligations under hire purchase contracts are secured on the assets to which they relate.
There is a fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant & machinery held with HSBC Bank Plc.
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
2,778
70,352
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
67,574
128,544
In two to five years
2,778
70,352
70,352
198,896
20
Provisions for liabilities
2024
2023
£
£
Gas bottle provision
65,000
65,000
Dilapidation provision
50,000
25,000
115,000
90,000
BANWY FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
20
Provisions for liabilities
(Continued)
- 20 -
Movements on provisions:
Gas bottle provision
Dilapidation provision
Total
£
£
£
At 1 August 2023
65,000
25,000
90,000
Additional provisions in the year
-
25,000
25,000
At 31 July 2024
65,000
50,000
115,000
21
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
294,470
208,619
2024
Movements in the year:
£
Liability at 1 August 2023
208,619
Charge to profit or loss
85,851
Liability at 31 July 2024
294,470
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.
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
255,484
16,619
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.
23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50
100
50
100
BANWY FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
23
Share capital
(Continued)
- 21 -
During the year, 50 ordinary shares of £1 each were redeemed at a premium from the director D Edwards. The purpose for the redemption was to assist with succession challenges for the business and to return surplus capital to the shareholder. The premium paid has been charged to distributable reserves in the Profit & Loss Account.
On termination of membership, the shares held were cancelled.
24
Capital redemption reserve
The Capital Redemption Reserve represents the nominal value of shares bought back and subsequently cancelled. This reserve is non-distributable and is maintained in accordance with Section 733 of the Companies Act 2006.
25
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
22,000
22,000
Between two and five years
88,000
88,000
In over five years
154,000
176,000
264,000
286,000
26
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
170,767
27
Related party transactions
Transactions with related parties
At the year end, the company had the following balances with related parties:
The balance of the interest free loan to Banwy Investments Limited, a company controlled by the directors C M Edwards and D E Edwards, was £415,264 (2023 - £265,264). This loan is repayable on demand.
There is a debtor balance of £2,499 (This was a credit balance of £64,101 in 2023) with Banwy Feeds.
There is a credit balance of £100 (2023 - £100) and a debtor balance of £220 (2023 - £95) with Banwy Gas & Biomass Limited.
BANWY FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 22 -
28
Directors' transactions
Dividends totalling £240,000 (2023 - £240,000) were paid in the year in respect of shares held by the company's directors.
During the year the directors C M Edwards and H J Edwards made interest free loans to the company, these loans are repayable on demand and the amounts owing at the year end was £3,332.
29
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,117,721
1,520,749
Adjustments for:
Taxation charged
383,305
399,953
Finance costs
14,073
9,924
Investment income
(136,384)
(33,805)
Loss on disposal of tangible fixed assets
5,201
-
Depreciation and impairment of tangible fixed assets
250,366
227,565
Increase in provisions
25,000
90,000
Movements in working capital:
Decrease in stocks
256,101
61,514
(Increase)/decrease in debtors
(791,363)
1,208,176
Decrease in creditors
(177,660)
(18,068)
Cash generated from operations
946,360
3,466,008
30
Analysis of changes in net funds
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
4,157,799
(1,787,427)
2,370,372
Obligations under finance leases
(198,896)
128,544
(70,352)
3,958,903
(1,658,883)
2,300,020
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