Newlay Concrete Limited
Registered number: 06540511
Annual report and financial statements
For the 18 months ended 31 March 2024
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NEWLAY CONCRETE LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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Santander Corporate & Commercial Banking
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ABN AMRO Commercial Finance PLC
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NEWLAY CONCRETE LIMITED
CONTENTS
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Independent Auditor's Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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NEWLAY CONCRETE LIMITED
STRATEGIC REPORT
FOR THE 18 MONTHS ENDED 31 MARCH 2024
The director presents their Strategic Report for the 18 month period ended 31 March 2024 for Newlay Concrete Limited.
The Company continued its principal activity throughout the current year. The principal activity continued to be the manufacture and sale of concrete blocks and other products and merchanting.
The Statement of Comprehensive income is set out on page 9 and shows that the Company has achieved a turnover for the 18 months ended of £26,018,662 (12 months ended 30 September 2022: £16,987,555) and a pre tax profit of £590,653 (12 months ended 30 September 2022: £802,265).
The net assets of the Company reduced from £4,126,791 to £4,093,869.
The director is pleased to report these results for the financial period to 31 March 2024.
The strategic investments that the company has made will allow the business to improve margins and profitability in 2024 and beyond.
Principal risks and uncertainties
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The principal risks of the Company are set out below:
Market risk
A depressed housing market can suppress the financial returns of the company because of a lack of demand for precast concrete products. The housing market is proving to be very resilient in the current climate and is widely expected to lead the economy out of recession.
Seasonality risk
The construction industry is historically slow in winter. The company ensures it has adequate cash reserves and manages cashflow accordingly.
Financing risk
The business has sufficient working capital and financing to manage its demands and needs. Further funding is available, should this be necessary The business regularly updates its cash flow forecasting.
Obsolescence risk
There is a risk that the company’s manufacturing processes and/or its range of products do not keep pace with more modern efficient procedures/products. This would result in other suppliers being more favourable to customers due to their more extensive product range or their price.
Financial key performance indicators
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The strategic objective of the Company is to generate shareholder value through growth of the block manufacturing business. Over the past 5 years the Company’s revenue has achieved growth at a compound rate of 5.2%.
It should be noted that the financial period ended 31 March 2024 includes two winter periods. The Company performs weak in the winter periods and taking that into consideration the director is encouraged by the increase in operating profit for the period.
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NEWLAY CONCRETE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE 18 MONTHS ENDED 31 MARCH 2024
This report was approved by the board and signed on its behalf.
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NEWLAY CONCRETE LIMITED
DIRECTOR'S REPORT
FOR THE 18 MONTHS ENDED 31 MARCH 2024
The director presents his report and the financial statements for the 18 months ended 31 March 2024.
Director's responsibilities statement
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The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the 18 months, after taxation, amounted to £288,419 ( 12 months ended 30 September 2022 - £812,361).
The director who served during the 18 months was:
The Company continues to invest in new equipment and has placed an order for new HGV's for delivery in 2023.
The company remains fully committed to a new, modern and highly efficient block factory at our Dewsbury plant.
The directors would like to thank all staff, customers and suppliers for their commitment and support over the last 18 months.
Matters covered in the Strategic Report
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Certain information is not shown in the Director's Report because it is shown in the Strategic Report on pages 1 and 2 instead under S414C(11). The Strategic Report includes a business review, principal risks and uncertainties, and information on the Company's key performance.
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NEWLAY CONCRETE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE 18 MONTHS ENDED 31 MARCH 2024
Disclosure of information to auditor
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The director at the time when this Director's Report is approved has confirmed that:
∙so far as he is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Going concern
The financial statements have been prepared on a going concern basis. The Director has prepared detailed budgets and cash flow projections which have been regularly updated in the light of the current economic climate and market conditions. On the basis of the detailed budgets and projections at the date of the signing of the balance sheet the Director believes that the Company can continue to operate within its existing banking facilities. Therefore the Director deems it appropriate that the financial statements should be prepared on a going concern basis.
The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 2 April 2025 and signed on its behalf.
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NEWLAY CONCRETE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWLAY CONCRETE LIMITED
Opinion
We have audited the financial statements of Newlay Concrete Limited (the ‘Company’) for the 18 months ended 31 March 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 March 2024 and of its profit for the 18 months then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the "Auditor’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.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The 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.
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NEWLAY CONCRETE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWLAY CONCRETE LIMITED
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 the audit:
∙the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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 Directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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NEWLAY CONCRETE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWLAY CONCRETE LIMITED
Responsibilities of Directors
As explained more fully in the Directors' responsibilities statement set out on page 3, 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 the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: anti-money laundering regulation and the Bribery Act 2010.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
• Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
• Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
• Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
• Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation and the Companies Act 2006.
In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to carrying value of stock, revenue recognition (which we pinpointed to the cut off assertion) and significant one-off or unusual transactions.
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NEWLAY CONCRETE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWLAY CONCRETE LIMITED
Our audit procedures in relation to fraud included but were not limited to:
• Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
• Gaining an understanding of the internal controls established to mitigate risks related to fraud;
• Discussing amongst the engagement team the risks of fraud; and
• Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of the audit 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.
Ashley Barraclough (Senior Statutory Auditor)
for and on behalf of
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
5th Floor
3 Wellington Place
Leeds
LS1 4AP
2 April 2025
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NEWLAY CONCRETE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 18 MONTHS ENDED 31 MARCH 2024
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12 months ended
30 September
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Interest payable and similar expenses
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Profit for the financial 18 months
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There were no recognised gains and losses for the 18 month period ended 31 March 2024 or the 12 month period ended 30 September 2022 other than those included in the statement of comprehensive income.
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There was no other comprehensive income for the 18 month period ended 31 March 2024 (12 month period ended 30 September 2022:£NIL).
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The notes on pages 12 to 34 form part of these financial statements.
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NEWLAY CONCRETE LIMITED
REGISTERED NUMBER: 06540511
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current (liabilities)/assets
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 April 2025.
The notes on pages 12 to 34 form part of these financial statements.
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NEWLAY CONCRETE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE 18 MONTHS ENDED 31 MARCH 2024
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the 18 months
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Total comprehensive income for the 18 months
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Contributions by and distributions to owners
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Dividends: Equity capital
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The notes on pages 12 to 34 form part of these financial statements.
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
Newlay Concrete Limited ("the Company") is limited by share capital and incorporated in the United Kingdom. The address of its registered office is Thornhill Works, Calder Road, Ravensthorpe, Dewsbury, WF12 9HY.
The functioning currency of the company is Pounds Sterling as this is the currency of the primary economic environment in which the Company operates.
The current period has been prepared on an 18 month basis to the 31 March 2024, in comparison to the prior year reporting period which was prepared on a 12 month basis, therefore the results of the two periods are not directly comparable.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23; and
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Hargreaves (GB) Group Limited as at 31 March 2024 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ .
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis. The Director has prepared detailed budgets and cash flow projections which have been regularly updated in the light of the current economic climate and market conditions. On the basis of the detailed budgets and projections at the date of the signing of the balance sheet the Director believes that the Company can continue to operate within its existing banking facilities. Therefore the Director deems it appropriate that the financial statements should be prepared on a going concern basis.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Sale of goods
Revenue comprises the sale of concrete blocks and associated products supplied during the year and are recognised when all of the following conditions are satisfied:
• the Company has transferred the significant risks and rewards of ownership to the buyer;
• the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective controlover the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the Company will receive the consideration due under the transaction; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
• the amount of revenue can be measured reliably;
• it is probable that the Company will receive the consideration due under the contract;
• the stage of completion of the contract at the end of the reporting period can be measured reliably; and
• the costs incurred and the costs to complete the contract can be measured reliably.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the 18 months in which they are incurred.
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the 18 months comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
Intangible assets comprise acquired tipping rights and BSI accreditation.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Equipment, Fixtures and Fittings
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To be depreciated once the asset is in use
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit and loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
|
|
Financial instruments (continued)
|
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
- 18 -
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
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|
Financial instruments (continued)
|
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
- 19 -
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
- 20 -
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
Judgements in applying accounting policies and key sources of estimation uncertainty
|
In applying the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
Critical judgements in applying the accounting policies
The critical judgements that the directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements are discussed below:
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability and where applicable, the ability of the asset to be operated as planned. There have been no indicators of impairments identified during the current financial year.
Key sources of estimation uncertainity
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(i) Determining residual values and useful economic lives of tangible and intangible assets
The Company depreciates tangible assets, and amortises intangible assets, over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied. The estimation of useful lives of intangible assets is based on any contractual or legal rights associated with the asset, or the period in which the Company expects to use the asset if shorter. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is also applied, when determining the residual values for fixed assets. When determining the residual value, the directors have assessed the amount that the Company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful life. Where possible this is done with reference to external market prices.
- 21 -
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
|
|
An analysis of turnover by class of business is as follows:
|
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12 months ended
30 September
|
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Sale of concrete products
|
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All turnover arose within the United Kingdom.
|
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The operating profit is stated after charging:
|
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|
|
12 months ended
30 September
|
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Depreciation of tangible fixed assets - Owned assets
|
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Depreciation of tangible fixed assets - Hire purchase & Finance leases
|
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Amortisation of intangible assets
|
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Other operating lease rentals
|
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|
Defined contribution pension cost
|
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|
During the 18 months, the Company obtained the following services from the Company's auditor:
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12 months ended
30 September
|
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|
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Fees payable to the Company's auditor for the audit of the Company's financial statements
|
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- 22 -
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
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Staff costs were as follows:
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12 months ended
30 September
|
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Cost of defined contribution scheme
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The director's renumeration has been paid by Hargreaves (GB) Limited.
|
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The average monthly number of employees, including the director, during the 18 months was as follows:
|
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|
12 months ended
30 September
|
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Interest payable and similar expenses
|
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|
12 months ended
30 September
|
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Other loan interest payable
|
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|
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Finance leases and hire purchase contracts
|
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|
|
|
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- 23 -
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NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
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12 months ended
30 September
|
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Adjustments in respect of previous periods
|
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Origination and reversal of timing differences
|
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|
|
Adjustments in respect of prior periods
|
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|
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|
|
Taxation on profit/(loss) on ordinary activities
|
|
|
- 24 -
|
NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
9.Taxation (continued)
|
Factors affecting tax charge for the 18 months/year
|
|
The tax assessed for the 18 months/year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.01% (2022 - 19.00%). The differences are explained below:
|
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|
|
|
|
|
12 months ended
30 September
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities before tax
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.01% (2022 - 19.00%)
|
|
|
|
|
|
|
|
Expenses not deductible for tax purposes
|
|
|
|
|
|
|
|
Additional deduction for R&D expenditure
|
|
|
|
Adjustment to tax charge in respect of previous periods
|
|
|
|
Remeasurement of deferred tax for changes in tax rates
|
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|
|
Adjustments to tax charge in respect of previous periods - deferred tax
|
|
|
|
Other differences leading to an increase (decrease) in the tax charge
|
|
|
|
|
|
|
|
Remeasurement of deferred tax for
changes in tax rates
|
|
|
|
Total tax charge for the 18 months/year
|
|
|
|
Factors that may affect future tax charges
|
At 31 March 2024 the company has carried forward tax losses totalling £2,098,000 (30 September 2022: £290,000).
- 25 -
|
NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
|
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|
|
12 months ended
30 September
|
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Charge for the 18 months on owned assets
|
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- 26 -
|
NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
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|
|
Equipment fixtures & fittings
|
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|
|
Charge for the 18 month period
|
|
|
|
|
|
|
|
|
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|
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|
|
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|
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|
|
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|
|
Furniture, fittings and equipment
|
|
|
|
|
|
|
- 27 -
|
NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
|
Investment in subsidiary company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following was a subsidiary undertaking of the Company:
|
|
|
|
|
|
|
Newlay Cast Stone Limited
|
Thornhill Works Calder Road, Ravensthorpe, Dewsbury, England, WF12 9HY
|
|
|
|
|
|
|
|
|
|
|
|
Finished goods and goods for resale
|
|
|
|
|
|
|
|
|
|
|
- 28 -
|
NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
Due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 29 -
|
NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
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|
|
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|
|
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|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
Other taxation and social security
|
|
|
|
Obligations under finance lease and hire purchase contracts
|
|
|
|
Invoice discounting facility
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
The invoice discounting facility is secured against the Company's trade debtors.
The hire purchase liabilities are secured on the assets to which they relate and by way of a personal guarantee by D M Beaumont, Director.
There is a fixed and floating charge over all property of undertaking of the Company to Santander UK Plc.
All monies due or to become due from the group on any account to ABN Amro Commercial Finance Plc are secured by a mortgage and a fixed and floating charge over all assets of the company.
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
|
|
Creditors: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net obligations under finance leases and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 30 -
|
NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
|
|
Analysis of the maturity of loans is given below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due 1-2 years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase and finance leases
|
|
Minimum lease payments under hire purchase fall due as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 31 -
|
NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charged to the profit or loss
|
|
|
|
|
|
|
|
The provision for deferred taxation is made up as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated capital allowances
|
|
|
|
Short term timing differences
|
|
|
|
Losses and other deductions
|
|
|
|
|
|
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
2 (2022 - 2) Ordinary shares of £1.00 each
|
|
|
Profit & loss account
The profit & loss account reserve represents cumulative profits and losses net of dividends paid.
- 32 -
|
NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
|
|
At 31 March 2024 the Company had capital commitments as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted for but not provided in these financial statements
|
|
|
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge for the 18 month period to 31 March 2024 represents contributions payable by the company to the fund and amounted to £95,163 (12 month period ended 30 September 2022: £64,050). Contributions totalling £16,533 (30 September 2022: £12,253) were payable to the fund at the balance sheet date and are included in other creditors.
|
Commitments under operating leases
|
|
At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Later than 1 year and not later than 5 years
|
|
|
|
|
|
|
|
|
|
|
|
Lease payments recognised as an expense during the year are detailed in note 5.
|
- 33 -
|
NEWLAY CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
Related party transactions
|
The Company has taken advantage of the exemption conferred by FRS 102 Section 33 not to disclose transactions with wholly owned members of the group headed by Hargreaves Group (GB) Limited.
The smallest and largest group into which the Company's results are consolidated is the consolidated financial statements of Hargreaves Group (GB) Limited which can be obtained from Companies House, Crown Way, Cardiff, CF4 3UZ.
Mr D Beaumont, a director, has entered into personal guarantees on behalf of the Company of £2,250,000 (30 September 2022: £1,062,000).
During the year the Company entered into transactions with entities under common control. The Company sold and purchased goods and services in the 18 month period ended 31 March 2024 (including recharges and rent payments) to enities under common control with a value of £564,294 (12 month period ended 30 September 2022: £1,699,208) and £313,232 (12 month period ended 30 September 2022: £658,654) respectively.
The Company also entered into transactions with entities under the control of a director's relative. The Company sold and purchased goods and services in the 18 month period ended 31 March 2024 (including rent and other recharges) to such entities totalling £279,314 (12 month period ended 30 September 2022: £281,513) and £Nil (2022: £Nil) respectively.
Amounts due from such Companies at year end totalled £1,758,407 (2022: £1,881,695) and amounts due to these Companies totalled £2,476,753 (12 month period ended 30 September 2022: £1,041,733).
During the 18 month period ended 31 March 2024, rent totalling £87,000 (12 month period ended 30 September 2022: £290,000) fell due in respect of a property which is owned by the director.
The immediate and ultimate parent company is Hargreaves Group (GB) Limited, a company incorporated in England and Wales. The ultimate controlling party is Mr D. Beaumont, a director of the company, due to his majority shareholding.
- 34 -
|