Company registration number 07622278 (England and Wales)
ESTUARY OILS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
ESTUARY OILS LIMITED
COMPANY INFORMATION
DIRECTOR
A G Mould
SECRETARY
Tina Mould
COMPANY NUMBER
07622278
REGISTERED OFFICE
Estuary Oil Depot
Progress Industrial Estate
Station Road
Rogiet
NP26 3UE
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
ESTUARY OILS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Independent auditor's report
6 - 10
Profit and loss account
11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 27
ESTUARY OILS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The director presents the strategic report for the year ended 31 August 2024.

PRINCIPAL ACTIVITIES

The principal activity of the company continued to be that of 31 August 2024.

REVIEW OF THE BUSINESS

The results of the year are shown in the profit and loss account on page 11 and reflects another successful trading year with 13.80% growth in revenue.

 

Turnover has increased due to the increase in volume sold driven with the drop in fuel prices as a result of decline in crude oil pricing on the global market.

 

The company continues to build on the successes of previous years; ensuring managed and sustained business growth. This year was considered a ‘normal trading year’, as previous years were subject to global concerns such as COVID and the Russian / Ukraine Conflict.

 

We were pleased to see the business trajectory continue; demonstrating consistency in trade and ownership of market share.

 

The company’s success is predominately due to the hard work from our dedicated staff, effective purchasing, excellent customer/delivery service and the diversification of its product portfolio.

 

The company has continued with its policy of investment in new tankers; minimising downtime and reducing maintenance costs.

PRINCIPAL RISKS AND UNCERTAINTIES

We note that due to weaker economic climate, combined with a warmer than expected winter, distributors are looking to support financial performance by securing business at any cost. This is creating a very competitive landscape. We also note the expansion of delivery territories and new entrants as a way of securing market share. We will closely monitor the situation and react accordingly to defend our position in the market.

 

The management team also continues to monitor the economic and political impact over the swing in cost of fuel and the credit/exposure risk this poses. The company will continue to manage this closely and minimise debt risk through policy, control and negotiations with our trade insurers.

ESTUARY OILS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
FINANCIAL MANAGEMENT RISK

The company's trading activity is subject to risks such as price risk and credit risk. Considering the size of the company, there are no sub committee to monitor the risk management, however these are monitored by the director and the business development manager.

 

Price risk

The prices of the oil fluctuates each day and are subject to the crude oil price. However, the low stockholding management and daily price monitoring system used to track and determine the selling prices enable the company to maintain a stable gross margin. The process in place is proven to be effective and efficient subject to the size and nature of the risk involved.

 

Credit risk

All customers are passed through credit checks before sales are made and appropriate credit risk insurance are in place to mitigate the risk. The exposure to defaults is controlled by means of credit limits that is regularly monitored by the management.

SUSTAINABILITY

The company is committed to creating value with an ongoing and increasing sense of responsibility towards the society. The main trading activity involves the supply of diesel and heating oils to domestic customers which is efficiently managed by the company using modern fleet of tankers and technologies to minimise fuel consumption and emissions.

S172 STATEMENT

The director of the company acts in a way that considers and promotes the success of the company in line with the requirements of s172 of the Companies Act 2006.

 

When making decisions, the director considers all stakeholders and the wider impacts of such decisions, including the impact of the company's operations on the community and environment, responsible business practises and the likely consequences of decisions in the long term and also promote the success of the company for the benefit of its members as a whole.

 

The company strongly focus on the well being of its employees. The company continues to hold direct meetings with employees from all areas of the company. As a family run company employees have direct access to the senior management team on a day to day basis. Good working relationships with suppliers are important to the success of the Company. The Company at all times acts responsibly and ethically in its dealings with suppliers.

 

 

 

 

 

ESTUARY OILS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

On behalf of the board

A G Mould
DIRECTOR
7 April 2025
ESTUARY OILS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -

The director presents his annual report and financial statements for the year ended 31 August 2024.

RESULTS AND DIVIDENDS

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £466,000. The director does not recommend payment of a further dividend.

DIRECTOR

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

A G Mould
STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 

In preparing these financial statements, the director is required to:

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

ESTUARY OILS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -

In preparing these financial statements, the director is required to:

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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
A G Mould
DIRECTOR
7 April 2025
ESTUARY OILS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESTUARY OILS LIMITED
- 6 -
Opinion

We have audited the financial statements of Estuary Oils Limited (the 'company') for the year ended 31 August 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:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

ESTUARY OILS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESTUARY OILS LIMITED (CONTINUED)
- 7 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

ESTUARY OILS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESTUARY OILS LIMITED (CONTINUED)
- 8 -
Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
ESTUARY OILS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESTUARY OILS LIMITED (CONTINUED)
- 9 -
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The auditor’s explanation of its audit response will depend on the risks identified but may include:

- Enquiry of management, those charged with around actual and potential litigation and claims.

- 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.

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.

ESTUARY OILS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESTUARY OILS LIMITED (CONTINUED)
- 10 -

Use of our 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.

Simon Tee
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
8 April 2025
ESTUARY OILS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
2024
2023
Notes
£
£
TURNOVER
3
79,439,550
69,806,052
Cost of sales
(72,823,397)
(63,220,990)
GROSS PROFIT
6,616,153
6,585,062
Administrative expenses
(2,705,675)
(2,495,913)
OPERATING PROFIT
4
3,910,478
4,089,149
Interest receivable and similar income
8
194,261
11,727
PROFIT BEFORE TAXATION
4,104,739
4,100,876
Tax on profit
9
(1,089,164)
(896,636)
PROFIT FOR THE FINANCIAL YEAR
3,015,575
3,204,240

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ESTUARY OILS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
2024
2023
£
£
PROFIT FOR THE YEAR
3,015,575
3,204,240
OTHER COMPREHENSIVE INCOME
-
-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
3,015,575
3,204,240
ESTUARY OILS LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 13 -
2024
2023
Notes
£
£
FIXED ASSETS
Tangible assets
11
1,329,038
1,468,936
CURRENT ASSETS
Stocks
12
1,069,626
800,271
Debtors
13
7,600,909
7,096,924
Investments
14
1,290,461
1,169,991
Cash at bank and in hand
8,007,488
6,549,814
17,968,484
15,617,000
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
15
(6,809,345)
(7,173,290)
NET CURRENT ASSETS
11,159,139
8,443,710
TOTAL ASSETS LESS CURRENT LIABILITIES
12,488,177
9,912,646
PROVISIONS FOR LIABILITIES
Deferred tax liability
16
(380,858)
(354,902)
NET ASSETS
12,107,319
9,557,744
CAPITAL AND RESERVES
Called up share capital
18
10,102
10,102
Profit and loss reserves
12,097,217
9,547,642
TOTAL EQUITY
12,107,319
9,557,744
The financial statements were approved and signed by the director and authorised for issue on 7 April 2025
A G Mould
Director
Company registration number 07622278 (England and Wales)
ESTUARY OILS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
BALANCE AT 1 SEPTEMBER 2022
10,102
6,821,402
6,831,504
YEAR ENDED 31 AUGUST 2023:
Profit and total comprehensive income
-
3,204,240
3,204,240
Dividends
10
-
(478,000)
(478,000)
BALANCE AT 31 AUGUST 2023
10,102
9,547,642
9,557,744
YEAR ENDED 31 AUGUST 2024:
Profit and total comprehensive income
-
3,015,575
3,015,575
Dividends
10
-
(466,000)
(466,000)
BALANCE AT 31 AUGUST 2024
10,102
12,097,217
12,107,319
ESTUARY OILS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
2024
2023
Notes
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year after tax
3,015,575
3,204,240
Adjustments for:
Taxation charged
1,089,164
896,636
Investment income
(194,261)
(11,727)
Gain on disposal of tangible fixed assets
(143,853)
(29,355)
Depreciation and impairment of tangible fixed assets
383,124
328,050
Movements in working capital:
(Increase)/decrease in stocks
(269,355)
144,384
Increase in debtors
(577,233)
(157,657)
(Decrease)/increase in creditors
(874,645)
3,280,638
Cash generated from operations
2,428,516
7,655,209
Income taxes paid
(552,507)
(1,660,214)
Net cash inflow from operating activities
1,876,008
5,994,995
INVESTING ACTIVITIES
Purchase of tangible fixed assets
(315,373)
(625,171)
Proceeds from disposal of tangible fixed assets
216,000
96,500
Proceeds from disposal of investments
(120,470)
(499,749)
Repayment of loans
73,248
(73,248)
Interest received
65,735
2,294
Dividends received
8,689
6,265
Other income received from investments
119,837
3,168
Net cash generated from/(used in) investing activities
47,666
(1,089,941)
FINANCING ACTIVITIES
Dividends paid
(466,000)
(478,000)
Net cash used in financing activities
(466,000)
(478,000)
NET INCREASE IN CASH AND CASH EQUIVALENTS
1,457,674
4,427,054
Cash and cash equivalents at beginning of year
6,549,814
2,122,760
CASH AND CASH EQUIVALENTS AT END OF YEAR
8,007,488
6,549,814
ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
1
ACCOUNTING POLICIES
Company information

Estuary Oils Limited is a private company limited by shares incorporated in England and Wales. The registered office is Estuary Oil Depot, Progress Industrial Estate, Station Road, Rogiet, NP26 3UE.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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

 

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

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Plant and machinery
15% reducing balance
Equipments
33% reducing balance
Motor vehicles
25% reducing balance
ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
ACCOUNTING POLICIES
(Continued)
- 17 -

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
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.

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

 

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

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

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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

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

1.7
Cash and cash equivalents

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

ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
ACCOUNTING POLICIES
(Continued)
- 18 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
ACCOUNTING POLICIES
(Continued)
- 19 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
ACCOUNTING POLICIES
(Continued)
- 20 -
Current tax

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

Deferred tax

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

 

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

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
TURNOVER AND OTHER REVENUE
2024
2023
£
£
Turnover analysed by class of business
Fuel and lubricants
79,439,550
69,806,052
2024
2023
£
£
Other revenue
Interest income
185,572
5,462
Dividends received
8,689
6,265
4
OPERATING PROFIT
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
383,124
328,050
Profit on disposal of tangible fixed assets
(143,853)
(29,355)
Impairment of trade debtors
189,161
-
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
9,000
9,000
ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
6
EMPLOYEES

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

2024
2023
Number
Number
27
27

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
980,971
939,487
Social security costs
101,357
96,714
Pension costs
309,310
295,616
1,391,638
1,331,817
7
DIRECTOR'S REMUNERATION
2024
2023
£
£
Remuneration for qualifying services
9,100
9,100
8
INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
Interest income
Interest on bank deposits
62,849
-
0
Other interest income
2,886
2,294
Total interest revenue
65,735
2,294
Other income from investments
Dividends received
8,689
6,265
Gains on financial instruments measured at fair value through profit or loss
119,837
3,168
Total income
194,261
11,727
ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
INTEREST RECEIVABLE AND SIMILAR INCOME
(Continued)
- 23 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
65,735
2,294
Interest on financial assets measured at fair value through profit or loss
119,837
3,168
9
TAXATION
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,063,208
835,982
Adjustments in respect of prior periods
-
0
15,056
Total current tax
1,063,208
851,038
Deferred tax
Origination and reversal of timing differences
25,956
45,598
Total tax charge
1,089,164
896,636
ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
9
TAXATION
(Continued)
- 24 -

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
4,104,739
4,100,876
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,026,185
1,025,219
Tax effect of expenses that are not deductible in determining taxable profit
1,622
(2,036)
Adjustments in respect of prior years
-
0
2,316
Permanent capital allowances in excess of depreciation
-
0
6,503
Other non-reversing timing differences
25,956
-
0
Other permanent differences
35,401
-
0
Tax at marginal rate
-
0
(135,366)
Taxation charge for the year
1,089,164
896,636
10
DIVIDENDS
2024
2023
£
£
Final paid
466,000
478,000
ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
11
TANGIBLE FIXED ASSETS
Plant and machinery
Equipments
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2023
177,236
30,003
1,873,263
2,080,502
Additions
28,401
23,664
263,308
315,373
Disposals
(19,500)
-
0
(156,622)
(176,122)
At 31 August 2024
186,137
53,667
1,979,949
2,219,753
Depreciation and impairment
At 1 September 2023
44,345
22,193
545,028
611,566
Depreciation charged in the year
21,040
5,964
356,120
383,124
Eliminated in respect of disposals
(8,655)
-
0
(95,320)
(103,975)
At 31 August 2024
56,730
28,157
805,828
890,715
Carrying amount
At 31 August 2024
129,407
25,510
1,174,121
1,329,038
At 31 August 2023
132,891
7,810
1,328,235
1,468,936
12
STOCKS
2024
2023
£
£
Finished goods and goods for resale
1,069,626
800,271
13
DEBTORS
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,821,258
5,828,657
Other debtors
175,892
948,184
Prepayments and accrued income
603,759
320,083
7,600,909
7,096,924
ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -
14
CURRENT ASSET INVESTMENTS
2024
2023
£
£
Unlisted investments
1,290,461
1,169,991
15
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
2023
£
£
Trade creditors
5,732,801
6,722,575
Corporation tax
916,418
405,717
Other taxation and social security
25,854
37,483
Other creditors
134,223
7,466
Accruals and deferred income
49
49
6,809,345
7,173,290
16
DEFERRED TAXATION

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
380,858
354,902
2024
Movements in the year:
£
Liability at 1 September 2023
354,902
Charge to profit or loss
25,956
Liability at 31 August 2024
380,858

 

ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 27 -
17
RETIREMENT BENEFIT SCHEMES
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
309,310
295,616

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

18
SHARE CAPITAL
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,102
10,102
10,102
10,102
19
ANALYSIS OF CHANGES IN NET FUNDS
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
6,549,814
1,457,674
8,007,488
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