REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Audited Financial Statements for the Year Ended 31 July 2024 |
for |
Ovamill Limited |
REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Audited Financial Statements for the Year Ended 31 July 2024 |
for |
Ovamill Limited |
Ovamill Limited (Registered number: 05399481) |
Contents of the Financial Statements |
for the Year Ended 31 July 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 4 |
Report of the Independent Auditors | 6 |
Statement of Income and Retained Earnings | 9 |
Balance Sheet | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 14 |
Ovamill Limited |
Company Information |
for the Year Ended 31 July 2024 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Senior statutory auditor: |
Auditors: |
East Coast House |
Galahad Road |
Gorleston |
Great Yarmouth |
Norfolk |
NR31 7RU |
Ovamill Limited (Registered number: 05399481) |
Strategic Report |
for the Year Ended 31 July 2024 |
The directors present their strategic report for the year ended 31 July 2024. |
Introduction |
The principal activity of the company during the year was that of groundwork, commercial, and domestic building services. |
Strategy |
The company aims to increase turnover and gross margin through increased levels of activity, pricing and management. To increase net profit by containing overheads and ensuring maximum efficiency whilst maintaining good client communication and support. Overall to deliver the strategy within the parameters of trading conditions to maintain position as experts in the field. |
To provide staff with above industry standard training at all levels throughout the company, encompassing the highest levels of health and safety training to develop employees to their full potential. |
Objectives |
The company will look to strengthen its reputation in the building sector through the continued provision of high levels of customer service and continue its focus to attract new contracts and new customers on a local and regional basis in both commercial and residential sectors. |
Review of business |
The year ended 31 July 2024 has improved when compared to the previous year although has remained a challenging year following on from the impact of the coronavirus, effects of the Russian invasion of Ukraine and the instability that has been caused to the working environment, global supply chain, market demand, moving into the cost of living crisis and rampant inflation. Throughout this period the company has shown its resilience and agility in how it has responded to significant changes in customer demand, availability of materials and price fluctuations. Considering conditions incurred during the year, the company's turnover increased from £10,770,041 to £12,350,658 (14.67%). |
The gross profit percentage increased to 9% from 18%. The slow down of the worldwide economy has impacted the availability of specific construction materials leading to significant shortages and upward price pressure. Ovamill has leveraged its good relationships with suppliers to ensure availability of materials but has at times been forced to absorb the cost increases on ongoing contracts. |
Ovamill has continued to see regular enquires for new work and is satisfied with the level of upcoming projects moving forward into 2025. Many larger projects have been delayed in the past and Ovamill has retained its core staff base and relationships with subcontractors in order to be able to deliver on future projects as the industry picks up alongside delayed projects as they commence. |
Operationally the company continued to set high standards for health and safety. |
The company benefitted from previously acquired trading premises in Norwich from which it serviced its contracts in the area and successfully used the premises to attract new business through better pricing delivered from a closer base of operations. |
The directors have evaluated the company's financial position including the reviewing of post year end management information and forward looking information. The directors consider the company has sufficient cash and financing arrangements to meet its liabilities as they fall due. |
Key performance indicators of the company are turnover and profit. Given the straightforward nature of the business, the company directors are of the opinion that further analysis of performance indicators is not necessary for the understanding of the development, performance and position of the business. |
Ovamill Limited (Registered number: 05399481) |
Strategic Report |
for the Year Ended 31 July 2024 |
Principal risks and uncertainties |
The company is exposed to industry risk operating in a volatile industry during challenging economic times which has in part been caused by significant events such as Brexit, Ukraine war, political instability, inflation and cost of living crisis. These events have manifested themselves through difficulties in onsite working conditions, the supply of qualified labour, availability of construction materials and increases in material costs. |
To mitigate these risks and the volatility such events can cause to demand within the construction industry, management have been regularly assessing the business' resilience to change and establishing plans that act to safeguard the business against several scenarios and their impact on turnover. |
The company is agile to change, has developed strong relationships with clients and suppliers and has reinvested profits over the years to retain a robust balance sheet and strong financial position. The company is well positioned to manage current and future risks and capitalise on the opportunities at present and in the future. |
Future outlook |
Ovamill has implemented robust changes over the last couple of years to ensure the successful continuation of the business. The business has retained core staff bank, invested in training and assets so that it can capitalise on an upturn in the construction industry when economic conditions improve. |
On behalf of the board: |
20 March 2025 |
Ovamill Limited (Registered number: 05399481) |
Directors' Report |
for the Year Ended 31 July 2024 |
The directors present their report with the financial statements of the company for the year ended 31 July 2024. |
Dividends |
Dividends of £350,000 (2023 : £Nil) were paid in the year to Ovamill Group Limited. |
Directors |
The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Ovamill Limited (Registered number: 05399481) |
Directors' Report |
for the Year Ended 31 July 2024 |
Auditors |
The auditors, Stephenson Smart (East Anglia) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Ovamill Limited |
Opinion |
We have audited the financial statements of Ovamill Limited (the 'company') for the year ended 31 July 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Report of the Independent Auditors to the Members of |
Ovamill Limited |
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 the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
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 Directors' Report. |
We have nothing to report in respect of the following matters where 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
Report of the Independent Auditors to the Members of |
Ovamill Limited |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We considered, based on our knowledge of the trading environment and structure of the company, areas in which the threat of material misstatement exists concerning irregularity. Irregularities, including fraud, were considered at length throughout our audit work including as part of our communication with both the directors and our audit team. |
We have reviewed the company's policies in adhering to laws and regulations and identified where non compliance could materially affect the financial statements and the extent to which irregularities could impact the financial statements vary considerably. |
The company is subject to regulation that directly affects the financial statements, such as taxation and company law, which has been assessed when we have audited the related financial items. |
The company is also subject to regulations that, in instances of non-compliance, would have a material impact on balances or disclosures within the financial statements, such as fines, penalties and interest. Areas such as employment law compliance, Health and Safety or GDPR. The limited procedures required to be undertaken as contained within the auditing standards did not identify any areas of non-compliance. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations |
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 Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
East Coast House |
Galahad Road |
Gorleston |
Great Yarmouth |
Norfolk |
NR31 7RU |
Ovamill Limited (Registered number: 05399481) |
Statement of Income and Retained Earnings |
for the Year Ended 31 July 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ |
Turnover | 3 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
493,029 | (620,321 | ) |
Other operating income | 4 |
Operating profit/(loss) | ( |
) |
Interest receivable and similar income |
541,806 | (585,863 | ) |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
Profit/(loss) before taxation | 7 | ( |
) |
Tax on profit/(loss) | 9 | ( |
) | ( |
) |
Profit/(loss) for the financial year | ( |
) |
Retained earnings at beginning of year as previously reported |
6,346,150 |
6,927,385 |
Dividends | 10 | ( |
) |
Prior year adjustment - corrections of material errors |
11 |
(42,412 |
) |
- |
Retained earnings at end of year |
Ovamill Limited (Registered number: 05399481) |
Balance Sheet |
31 July 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ |
Fixed assets |
Tangible assets | 12 |
Current assets |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
Provisions for liabilities | 18 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 19 |
Retained earnings | 20 | 6,303,738 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
Ovamill Limited (Registered number: 05399481) |
Cash Flow Statement |
for the Year Ended 31 July 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Interest received |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Sale of investment property |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Loan to parent company | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
2,860,536 |
Cash and cash equivalents at end of year | 2 | 2,178,579 | 1,229,945 |
Ovamill Limited (Registered number: 05399481) |
Notes to the Cash Flow Statement |
for the Year Ended 31 July 2024 |
1. | Reconciliation of profit/(loss) before taxation to cash generated from operations |
2024 | 2023 |
as restated |
£ | £ |
Profit/(loss) before taxation | ( |
) |
Depreciation charges |
Loss on disposal of fixed assets |
Interest received | (9,003 | ) | (8,600 | ) |
Finance costs | 10,882 | 20,980 |
Finance income | (20,494 | ) | (10,888 | ) |
951,273 | (98,259 | ) |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | Cash and cash equivalents |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 July 2024 |
31.7.24 | 1.8.23 |
£ | £ |
Cash and cash equivalents | 2,178,579 | 1,229,945 |
Year ended 31 July 2023 |
31.7.23 | 1.8.22 |
as restated |
£ | £ |
Cash and cash equivalents | 1,229,945 | 2,860,536 |
Ovamill Limited (Registered number: 05399481) |
Notes to the Cash Flow Statement |
for the Year Ended 31 July 2024 |
3. | Analysis of changes in net funds |
At 1.8.23 | Cash flow | At 31.7.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,229,945 | 948,634 | 2,178,579 |
1,229,945 | 2,178,579 |
Debt |
Finance leases | (372,179 | ) | 97,848 | (274,331 | ) |
(372,179 | ) | 97,848 | (274,331 | ) |
Total | 857,766 | 1,046,482 | 1,904,248 |
Ovamill Limited (Registered number: 05399481) |
Notes to the Financial Statements |
for the Year Ended 31 July 2024 |
1. | Statement of compliance |
2. | Accounting policies |
Basis of preparing the financial statements |
The financial statements have been prepared on the historical cost convention. |
The financial statements are prepared in sterling, which is the functional currency of the entity. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Revenue recognition |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Where revenue is received on a construction contract, revenue is measured on the basis as disclosed within the construction contract accounting policy. |
Tangible fixed assets |
Tangible fixed assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
Depreciation |
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, the useful economic life of that asset as follows:- |
Plant and machinery - 20% reducing balance |
Motor vehicles - 25% reducing balance |
Office equipment - 20% reducing balance |
Construction industry training grants |
Construction industry training grants have been received during the year to assist with the ongoing costs incurred in training employees within the construction industry. |
Under the accural model, construction industry training grants relating to revenue are recongnised systematic basis over the periods to which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period to which it becomes receivable. |
Ovamill Limited (Registered number: 05399481) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
2. | Accounting policies - continued |
Inventories |
Inventories have been valued at the lower of cost and net estimated selling price, less costs to sell. |
Work in progress |
Work in progress is either certified by an independent valuer and is valued at the the certified selling price or calculated based on actual costs to date plus a mark up. |
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Ovamill Limited (Registered number: 05399481) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
2. | Accounting policies - continued |
Hire purchase and leasing commitments |
Assets held under finance leases and hire purchase contracts are recongnised in the balance sheet as assets and liabilities as the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. |
Lease payments are apportioned between the Finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. |
Defined contribution plans |
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. |
Cash and cash equivalents |
Cash and cash equivalents in the cash flow statement comprise of cash in bank and in hand. |
Construction contracts |
Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. |
Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. |
When it is probable that total contract costs will exceed total contract revenue, the expected loss is expensed immediately, with a corresponding provision for an onerous contract being recognised. |
Where the collectability of an amount already recognised as contract revenue is no longer probable, the uncollectible amount is expensed rather than recognised as an adjustment to the amount of contract revenue. |
The entity uses the percentage of completion of a contract to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments. |
Where stage of completion of construction contracts is uncertain, or difficult to ascertain, revenue will be recognised in line with costs incurred to date as a proportion of estimated costs for each contract. |
Ovamill Limited (Registered number: 05399481) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
2. | Accounting policies - continued |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
3. | Turnover |
The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
as restated |
£ | £ |
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom. |
4. | Other operating income |
2024 | 2023 |
as restated |
£ | £ |
Rents received |
Training grants |
Insurance claims receivable |
Interest received from HMRC |
28,283 | 23,570 |
Ovamill Limited (Registered number: 05399481) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
5. | Employees and directors |
2024 | 2023 |
as restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
as restated |
Administration staff | 9 | 4 |
Management staff | 4 | 4 |
Operations | 47 | 56 |
2024 | 2023 |
as restated |
£ | £ |
Directors' remuneration |
During the year contributions of £47,791 (2023: £120,000) were paid in to the directors' pension schemes. |
6. | Interest payable and similar expenses |
2024 | 2023 |
as restated |
£ | £ |
HMRC interest |
Hire purchase |
7. | Profit/(loss) before taxation |
The profit (2023 - loss) is stated after charging: |
2024 | 2023 |
as restated |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Ovamill Limited (Registered number: 05399481) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
8. | Auditors' remuneration |
2024 | 2023 |
as restated |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
49,105 |
26,500 |
9. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit/(loss) |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
as restated |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( |
) |
Deferred tax | (76,991 | ) | 16,804 |
Group relief | (3,476 | ) | - |
Losses carried forward | - | 52,460 |
Total tax charge | 35,030 | 16,804 |
Ovamill Limited (Registered number: 05399481) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
10. | Dividends |
2024 | 2023 |
as restated |
£ | £ |
Ordinary shares shares of 1 each |
Interim |
11. | Prior year adjustment |
The comparatives have been adjusted to disclose a creditor for wages and increase in work in progress for the prior year. |
12. | Tangible fixed assets |
Plant and | Motor |
machinery | vehicles | Equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1 August 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 July 2024 |
Depreciation |
At 1 August 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 July 2024 |
Net book value |
At 31 July 2024 |
At 31 July 2023 |
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:- |
2024 | 2023 |
£ | £ |
Motor vehicles | 167,743 | 108,130 |
Plant and machinery | 338,008 | 336,331 |
505,751 | 444,461 |
Depreciation of £106,245 (2023 : £160,252) was charged to the Statement of Income and Retained Earnings. |
Ovamill Limited (Registered number: 05399481) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
13. | Stocks |
2024 | 2023 |
as restated |
£ | £ |
Inventories |
Work-in-progress |
14. | Debtors: amounts falling due within one year |
2024 | 2023 |
as restated |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts recoverable on contract |
Other debtors |
Tax |
Prepayments and accrued income |
15. | Creditors: amounts falling due within one year |
2024 | 2023 |
as restated |
£ | £ |
Hire purchase contracts (see note 17) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 67,326 | 170,981 |
Other creditors |
Accruals and deferred income |
Within Hire Purchase contracts are balances of £167,694 (2023: £257,859) that are secured on the assets to which they relate. |
16. | Creditors: amounts falling due after more than one year |
2024 | 2023 |
as restated |
£ | £ |
Hire purchase contracts (see note 17) |
Within Hire Purchase contracts are balances of £106,636 (2023: £114,320) that are secured on the assets to which they relate. |
Ovamill Limited (Registered number: 05399481) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
17. | Leasing agreements |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable |
operating leases |
2024 | 2023 |
as restated |
£ | £ |
Within one year |
Between one and five years |
18. | Provisions for liabilities |
2024 | 2023 |
as restated |
£ | £ |
Deferred tax | 422,751 | 499,742 |
Deferred tax |
£ |
Balance at 1 August 2023 |
Provided during year | ( |
) |
Balance at 31 July 2024 |
19. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | as restated |
£ | £ |
Ordinary shares | 1 | 5,000 | 5,000 |
Ovamill Limited (Registered number: 05399481) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
20. | Reserves |
Retained |
earnings |
£ |
At 1 August 2023 |
Prior year adjustment | ( |
) |
Profit for the year |
Dividends | ( |
) |
At 31 July 2024 |
21. | Contingent liabilities |
Ovamill Limited are aware of a present obligation as a result of a past obligating event. On the |
basis of evidence available when the financial statement for the year ended 31 July 2024 were |
approved, there is no obligation as a result of past events. |
22. | Directors' advances, credits and guarantees |
At the year end one of the directors owed the company £13,543 (2023 : £3,205), interest has been charged at a commercial rate as prescribed by HMRC. The maximum amount outstanding during the year was £13,543 (2023 : £3,205). |
23. | Related party disclosures |
During the year £189,617 (2023: £179,674) was paid in salaries and £32,112 (2023: £nil) to subcontractors who are close family members of the directors. |
All close family members were paid at market rate. |
Additionally during the year goods and services totalling £165,163 (2023 : £10,247) were supplied to Quayside Conservatories Limited and goods and services were received totalling £27,108 (2023 : £31,981). All transactions were supplied under normal commercial terms. At the year end Quayside Conservatories Ltd owed the company £21,024 (2023: £Nil). Quayside Conservatories Limited was until 30th July 2024 a subsidiary of Ovamill Group Limited which owned 50% of its shares and continues to own 100% of Ovamill Limited. Ovamill Group Limited is a director of Quayside Conservatories Limited. |
£35,000 was paid for rent of commercial premises in the year to a pension scheme of which the directors are members. Rent has been charged at market rate. |
During the year, key management not including directors were paid £165,208 (2023 : £ 156,981). |
24. | Ultimate controlling party |
Ovamill Group Limited, a company registered in England and Wales has ultimate control over Ovamill Limited. |
Ovamill Limited (Registered number: 05399481) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
25. | Employee benefits |
Defined contribution plans |
The amount recongnised in profit and loss as an expense in relation to defined contribution plans was £44,305 (2023: £42,797). |
26. | Construction industry training grants |
During the year £15,000 (2023 : £11,845) was received in respect of construction training grants. |