Company Registration No. 04004654 (England and Wales)
SMITH'S (GLOUCESTER) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
SMITH'S (GLOUCESTER) LIMITED
COMPANY INFORMATION
Directors
A R Smith
A Smith
Mrs H Lane
Mr P Smith
Mrs R Pullin
Miss L Smith
Company number
04004654
Registered office
Brook Farm
Moreton Valence
Gloucester
England
GL2 7ND
Auditor
Griffiths Marshall
4th Floor
Llanthony Warehouse
The Docks
Gloucester
Gloucestershire
GL1 2EH
Business address
Brook Farm
Moreton Valence
Gloucester
England
GL2 7ND
Bankers
Santander
Santander Corporate & Commercial
3rd Floor
One Glass Wharf, Avon Street
Bristol
BS2 0EL
Solicitors
Trowers & Hamlins  LLP
The Senate
Southernhay Gardens
Exeter
EX1 1UG
SMITH'S (GLOUCESTER) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 33
SMITH'S (GLOUCESTER) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present their strategic report for the year ended 30 September 2024.

Review of the business

The group operates within the waste management and construction sectors.

Principal risks and uncertainties

The process of risk acceptance and risk management is addressed through a framework of policies, procedures and controls, all of which are subject to board approval and are reviewed annually.

 

The primary risk continues to be inconsistent market demand. Whilst we have delivered a 9% increase in annual turnover, market demand itself has remained largely unpredictable. However, we anticipate a gradually improving market within the next couple of years as the cycle of bank interest rate reductions continue and customers gain increasing confidence to invest.

 

Increases in both National Insurance contributions and National Minimum Wage from April 2025 will have a significant impact in a competitive labour market. The focus remains on investing in and upskilling staff.

 

Whilst credit risk remains a factor within the industries in which we operate, we continue to minimise our risks through credit insurance and a careful approach to credit approval.

Development and performance

The result of the company are set out in pages 10 to 33. They show a profit before tax of £2,459,510 (2023 -£1,856,462). The company held shareholder’s funds of £18,109,373 (2023 - £16,305,686) at 30 September 2024.

 

The performance of the group for this financial period was very encouraging, with our KPI’s below showing strong positive movements against prior year. We achieved 9% revenue growth, but with a close focus on cost control and improving efficiencies, we delivered a positive step change in both operating profits and cash generation, enabling a 15% reduction in net debt.

 

Operationally we continue to move forward at pace. The company invested in a new operating site during the year which has allowed us to operate our entire transport fleet from one location, creating logistical efficiencies across our different operations and allowing us to promote best practice through a consolidated Operations Centre.

 

Investment in our capital assets and back-office systems has continued, with new additions of plant and vehicles totaling £7.3m (2023: £7.7m), which will further provide improvements in efficiency, reliability and customer service.

Key performance indicators

The board monitors progress of the company by reference to the following KPI's:

 

 

2024

2023 Variance

Turnover (£'000)

79,640

73,319 6,321 9%

Operating Profit (£'000)

4,181

2,960 1,221 41%

EBITDA (£'000)

11,009

9,612 1,397 15%

EBITDA/Turnover (%)

Cash Generated From Operations

8,267,721

8,541,980

Net Debt (£'000)

18.55%

10.82%

 

13.8%

10,197

24,452

13.1% 0.7%

7,130 3,067 43%

28,845 4,393 15%

 

 

 

SMITH'S (GLOUCESTER) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

On behalf of the board

Mrs R Pullin
Director
10 April 2025
SMITH'S (GLOUCESTER) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The group operates within the waste management and construction sectors.

Results and dividends

The results for the year are set out on page 10.

No interim or final dividends were paid during the year ended 30 September 2024 (2023 - £Nil).

Directors

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

A R Smith
A Smith
Mrs H Lane
Mr P Smith
Mrs R Pullin
Miss L Smith
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the year end were equivalent to 62 day's purchases, based on the average daily amount invoiced by suppliers during the year.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement
The company's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.

Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
Auditor

In accordance with the company's articles, a resolution proposing that Griffiths Marshall be reappointed as auditor of the company will be put at a General Meeting.

SMITH'S (GLOUCESTER) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
1,447,091
582,573
- Electricity purchased
679,055
870,118
- Fuel consumed for transport
40,617,503
40,524,971
- Fuel consumed for non-transport
8,046,061
13,967,714
50,789,710
55,945,376
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
265
107
- Fuel consumed for owned transport
9,575
9,689
- Fuel consumed for non-transport
1,926
3,321
11,766
13,117
Scope 2 - indirect emissions
- Electricity purchased
153
196
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
38
34
Total gross emissions
11,957
13,347
Intensity ratio
TC02e / £'000 Turnover
0.15
0.18
Quantification and reporting methodology

For continuity, this report uses the Energy Savings Opportunities Scheme (ESOS) methodology carried forward to the 2023-24 reporting year. The 2024 UK Government Conversion Factors for Company reporting have been employed.

 

The company has measured its Scope 1 and 2 emissions and included Scope 3 emissions related to employee use of their own vehicles, where they claim mileage or fuel allowance. Additionally, under Scope 1 the company has reported non transport related fuel emissions and, under Scope 3, the company has reported emissions from transmission and distribution losses for Scope 2 purchased electricity.

 

Element Consultants Ltd carried out the ESOS 2015, 2019 & 2023 reports and the SECR 2021, 2022 & 2023 reports in conjunction with Smiths and has applied the same verification process to this SECR report while following the Greenhouse Gas Protocol methodology. It remains our opinion that the company operates a robust transaction recording system and is able to account for and report energy consumption accurately in compliance with the letter and spirit of the ESOS regulations.

Intensity measurement

The intensity ratio has been changed from kWh/m2 floor area to kWh/£’000 turnover (energy consumed per thousand pounds of turnover) to more accurately reflect energy consumption by and carbon emissions from the business independently of business premises areas. The 2023 intensity ratios have been amended to the same basis above.

SMITH'S (GLOUCESTER) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
Measures taken to improve energy efficiency

The longer-term aspirations of the company are defined in the Smiths Sustainability Approach on the company’s website. The company has produced a draft Sustainability Plan with dated targets and will update the plan, setting new targets annually. The majority of recommendations in the ESOS Phase 2 report have been wholly or partially implemented. ESOS Phase 3 reporting has been completed and an action plan is being drawn up and will be publicly available.

 

Twenty-one electric vehicles have been purchased into the fleet and all new replacement company cars will be electric. The vehicle tracking and route scheduling software is used in conjunction with training to highlight exceptional mpg for vans and general transport. HVO continues to be offered to clients as a replacement for diesel. Boiler, radiator heating and air conditioning controls and insulation continue to be upgraded and the fitting of internal and external LED lighting continues. The new Brook Farm HQ has been surveyed for energy efficiency and, with more modern building stock, better insulation and better monitoring, will be more efficient. A Solar PV feasibility study has been carried out at Moreton Valance and an initial assessment has been completed for Brook Farm. Other works in progress include data logging of the generator supplies at Moreton Valence and an initial assessment of hybrid generators. Increasing volumes of waste continue to be diverted from landfill to energy from waste.

 

The main Intensity Ratio (TCO2e / £’000 Turnover) has dropped by 17.5% in the last year.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

 

On behalf of the board
Mrs R Pullin
Director
10 April 2025
SMITH'S (GLOUCESTER) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

SMITH'S (GLOUCESTER) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SMITH'S (GLOUCESTER) LIMITED
- 7 -
Opinion

We have audited the financial statements of Smith's (Gloucester) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

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. 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:

SMITH'S (GLOUCESTER) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMITH'S (GLOUCESTER) LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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 Smiths (Gloucester) Limited and the industry in which it operates and, considered the risk of acts by Management and directors of Smiths (Gloucester) Limited which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with the Companies Act 2006 and Employment Law. We made enquiries of the Directors to obtain further understanding of risks of non-compliance.

 

We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

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.

SMITH'S (GLOUCESTER) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMITH'S (GLOUCESTER) LIMITED
- 9 -

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.

Stephen Humphries
(Senior Statutory Auditor)
For and on behalf of Griffiths Marshall
15 April 2025
Chartered Accountants
Statutory Auditor
4th Floor
Llanthony Warehouse
The Docks
Gloucester
Gloucestershire
GL1 2EH
SMITH'S (GLOUCESTER) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
79,640,238
73,319,604
Cost of sales
(69,876,940)
(63,561,001)
Gross profit
9,763,298
9,758,603
Administrative expenses
(5,582,582)
(6,798,207)
Operating profit
5
4,180,716
2,960,396
Interest receivable and similar income
8
50,959
145,370
Interest payable and similar expenses
9
(1,772,165)
(1,249,304)
Profit before taxation
2,459,510
1,856,462
Tax on profit
10
(655,823)
592,190
Profit for the financial year
1,803,687
2,448,652
Profit for the financial year is all attributable to the owners of the parent company.

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

SMITH'S (GLOUCESTER) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
£
£
Profit for the year
1,803,687
2,448,652
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
1,803,687
2,448,652
Total comprehensive income for the year is all attributable to the owners of the parent company.
SMITH'S (GLOUCESTER) LIMITED
GROUP BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,086,802
1,297,615
Tangible assets
12
38,608,303
40,105,410
Investments
13
100
100
39,695,205
41,403,125
Current assets
Stocks
15
2,129,317
4,117,840
Debtors
17
22,104,148
22,098,159
Cash at bank and in hand
2,862,660
1,473,575
27,096,125
27,689,574
Creditors: amounts falling due within one year
18
(30,439,055)
(31,110,284)
Net current liabilities
(3,342,930)
(3,420,710)
Total assets less current liabilities
36,352,275
37,982,415
Creditors: amounts falling due after more than one year
19
(13,522,384)
(16,484,694)
Provisions for liabilities
Deferred tax liability
22
4,720,518
5,192,035
(4,720,518)
(5,192,035)
Net assets
18,109,373
16,305,686
Capital and reserves
Called up share capital
24
100
100
Revaluation reserve
563,169
563,169
Profit and loss reserves
17,546,104
15,742,417
Total equity
18,109,373
16,305,686
The financial statements were approved by the board of directors and authorised for issue on 10 April 2025 and are signed on its behalf by:
10 April 2025
Mrs R Pullin
Director
SMITH'S (GLOUCESTER) LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
405,000
435,000
Tangible assets
12
32,577,936
34,064,132
Investments
13
5,611,215
5,611,215
38,594,151
40,110,347
Current assets
Stocks
15
1,782,652
3,704,298
Debtors
17
21,254,650
20,868,051
Cash at bank and in hand
2,773,934
1,399,182
25,811,236
25,971,531
Creditors: amounts falling due within one year
18
(29,575,528)
(29,850,657)
Net current liabilities
(3,764,292)
(3,879,126)
Total assets less current liabilities
34,829,859
36,231,221
Creditors: amounts falling due after more than one year
19
(12,774,702)
(15,508,462)
Provisions for liabilities
Deferred tax liability
22
4,340,442
4,762,303
(4,340,442)
(4,762,303)
Net assets
17,714,715
15,960,456
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
17,714,615
15,960,356
Total equity
17,714,715
15,960,456

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,754,260 (2023 - £2,952,225 profit).

The financial statements were approved by the board of directors and authorised for issue on 10 April 2025 and are signed on its behalf by:
10 April 2025
Mrs R Pullin
Director
Company registration number 04004654 (England and Wales)
SMITH'S (GLOUCESTER) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
100
619,112
13,894,677
14,513,889
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
2,448,652
2,448,652
Other movements
-
(55,943)
(600,912)
(656,855)
Balance at 30 September 2023
100
563,169
15,742,417
16,305,686
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
1,803,687
1,803,687
Balance at 30 September 2024
100
563,169
17,546,104
18,109,373
SMITH'S (GLOUCESTER) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
100
13,008,131
13,008,231
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
2,952,225
2,952,225
Balance at 30 September 2023
100
15,960,356
15,960,456
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
1,754,259
1,754,259
Balance at 30 September 2024
100
17,714,615
17,714,715
SMITH'S (GLOUCESTER) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
10,197,085
7,130,072
Interest paid
(1,772,165)
(1,249,304)
Net cash inflow from operating activities
8,424,920
5,880,768
Investing activities
Purchase of tangible fixed assets
(7,332,064)
(7,720,824)
Proceeds from disposal of tangible fixed assets
3,249,098
4,448,763
Interest received
50,959
145,370
Net cash used in investing activities
(4,032,007)
(3,126,691)
Financing activities
Repayment of bank loans
(1,351,666)
(1,055,588)
Payment of finance leases obligations
(2,407,496)
(1,411,815)
Net cash used in financing activities
(3,759,162)
(2,467,403)
Net increase in cash and cash equivalents
633,751
286,674
Cash and cash equivalents at beginning of year
(2,842,026)
(3,128,700)
Cash and cash equivalents at end of year
(2,208,275)
(2,842,026)
Relating to:
Cash at bank and in hand
2,862,660
1,473,575
Bank overdrafts included in creditors payable within one year
(5,070,935)
(4,315,601)
SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
1
Accounting policies
Company information

Smith's (Gloucester) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Brook Farm, Moreton Valence, Gloucester, England, GL2 7ND.

 

The group consists of Smith's (Gloucester) Limited and all of its subsidiaries.

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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Smith's (Gloucester) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.5
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

 

Revenue Recognition

Construction & Demolition Contracts revenue is recognised on the receipt of a surveyor’s certificate from the contractors. Plant Hire revenue is recognised on the delivery of a piece of plant to hire and income is accrued over the length of hire period. Waste Recycling revenue is recognised on collection of waste from a customer's site, on receipt of waste across the weighbridge and on delivery of recycled product. Provision is made for the potential disposal cost of waste at the time of collection, or receipt over weighbridge.

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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is shown below.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Goodwill on Consolidation - Straight line over 10 years

Purchased Goodwill - Straight line over 5 years

1.7
Tangible fixed assets

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

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

Land and Buildings Freehold
5% Straight line
Plant and Machinery
20-25% Straight line
Fixtures, Fittings & Equipment
25% Straight line
Motor Vehicles
20-25% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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.

1.9
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.

1.10
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.11
Cash and cash equivalents

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

1.12
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.

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 group 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.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price.

 

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.

SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.13
Taxation

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

Current tax

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

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the 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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant.

SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Services
79,640,238
73,319,604
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
79,640,238
73,319,604
2024
2023
£
£
Other revenue
Interest income
50,959
145,370
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
42,500
41,100
Audit of the financial statements of the company's subsidiaries
6,250
5,750
48,750
46,850
SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
908,893
2,001,887
Depreciation of tangible fixed assets held under finance leases
5,708,453
3,898,951
Profit on disposal of tangible fixed assets
(1,037,273)
(2,199,168)
Amortisation of intangible assets
210,813
210,813
Operating lease charges
823,951
643,898
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Employees
551
606
490
538

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
20,956,781
21,041,658
18,951,638
19,731,250
Social security costs
2,093,153
2,075,837
1,878,261
1,950,716
Pension costs
455,018
432,419
378,677
381,466
23,504,952
23,549,914
21,208,576
22,063,432
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
374,842
321,833
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
-
0
27
Other interest income
50,959
145,343
Total income
50,959
145,370
SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
8
Interest receivable and similar income
(Continued)
- 24 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
27
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,772,165
1,249,304
10
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
655,823
(592,190)

The actual charge/(credit) 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
2,459,510
1,856,462
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
614,878
464,116
Tax effect of expenses that are not deductible in determining taxable profit
8,164
2,139
Tax effect of utilisation of tax losses not previously recognised
-
0
113,937
Unutilised tax losses carried forward
-
0
240,150
Permanent capital allowances in excess of depreciation
706,659
(322,215)
Depreciation on assets not qualifying for tax allowances
11,754
8,548
Amortisation on assets not qualifying for tax allowances
45,203
45,203
Other permanent differences
-
0
(250)
Profit on disposal of tangible assets
(259,318)
(551,627)
Deferred tax movement
(471,517)
(592,191)
Taxation charge/(credit)
655,823
(592,190)
SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
2,832,516
Amortisation and impairment
At 1 October 2023
1,534,901
Amortisation charged for the year
210,813
At 30 September 2024
1,745,714
Carrying amount
At 30 September 2024
1,086,802
At 30 September 2023
1,297,615
Company
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
700,000
Amortisation and impairment
At 1 October 2023
265,000
Amortisation charged for the year
30,000
At 30 September 2024
295,000
Carrying amount
At 30 September 2024
405,000
At 30 September 2023
435,000
SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
12
Tangible fixed assets
Group
Land and Buildings Freehold
Plant and Machinery
Fixtures, Fittings & Equipment
Motor Vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
5,943,637
37,396,647
350,114
21,248,549
64,938,947
Additions
213,639
2,433,050
389,232
4,296,143
7,332,064
Disposals
-
0
(5,800,069)
-
0
(4,445,378)
(10,245,447)
Prior year adjustment
-
0
1,426,860
-
0
-
0
1,426,860
At 30 September 2024
6,157,276
35,456,488
739,346
21,099,314
63,452,424
Depreciation and impairment
At 1 October 2023
1,556,543
11,995,263
350,114
10,931,617
24,833,537
Depreciation charged in the year
47,014
4,130,623
11,345
2,428,364
6,617,346
Eliminated in respect of disposals
-
0
(4,053,065)
-
0
(3,980,557)
(8,033,622)
Prior year adjustment
-
0
1,426,860
-
0
-
0
1,426,860
At 30 September 2024
1,603,557
13,499,681
361,459
9,379,424
24,844,121
Carrying amount
At 30 September 2024
4,553,719
21,956,807
377,887
11,719,890
38,608,303
At 30 September 2023
4,387,094
25,401,384
-
0
10,316,932
40,105,410
Company
Land and Buildings Freehold
Plant and Machinery
Fixtures, Fittings & Equipment
Motor Vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
4,393,637
33,453,701
350,114
20,628,599
58,826,052
Additions
213,639
1,888,747
389,232
4,269,048
6,760,666
Disposals
-
0
(4,638,473)
-
0
(4,268,198)
(8,906,671)
Transfers
-
0
1,426,860
-
0
-
0
1,426,860
At 30 September 2024
4,607,276
32,130,836
739,346
20,629,449
58,106,907
Depreciation and impairment
At 1 October 2023
1,504,876
11,899,654
350,114
11,007,275
24,761,918
Depreciation charged in the year
16,014
3,704,610
11,345
2,354,677
6,086,646
Eliminated in respect of disposals
-
0
(2,943,075)
-
0
(3,803,378)
(6,746,453)
Transfers
-
0
1,426,860
-
0
-
0
1,426,860
At 30 September 2024
1,520,890
14,088,048
361,459
9,558,574
25,528,971
Carrying amount
At 30 September 2024
3,086,386
18,042,788
377,887
11,070,875
32,577,936
At 30 September 2023
2,888,761
21,554,047
-
0
9,621,324
34,064,132
SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
12
Tangible fixed assets
(Continued)
- 27 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and Machinery
22,845,996
22,325,397
22,845,996
22,325,397
Motor Vehicles
6,278,365
6,562,391
6,278,365
6,562,391
29,124,361
28,887,788
29,124,361
28,887,788

Freehold land and buildings with a carrying amount of £3,983,235 (2023 - £3,920,720) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
100
100
5,611,215
5,611,215
Movements in fixed asset investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
100
Carrying amount
At 30 September 2024
100
At 30 September 2023
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
5,611,215
Carrying amount
At 30 September 2024
5,611,215
At 30 September 2023
5,611,215
SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Smith's (Demolition) Limited
England & Wales
Ordinary
100.00
Smith's Transport Limited
England & Wales
Ordinary
100.00
Smith's (Waste Management) Limited
England & Wales
Ordinary
100.00
Smith's (Plant Hire) Limited
England & Wales
Ordinary
100.00
Smith's Construction (Gloucester) Limited
England & Wales
Ordinary
100.00
Smith's Energy Limited
England & Wales
Ordinary
100.00
Ermin Plant (Hire & Services) Limited
England & Wales
Ordinary
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
346,665
413,542
-
-
Work in progress
1,576,107
3,375,117
1,576,107
3,375,117
Finished goods and goods for resale
206,545
329,181
206,545
329,181
2,129,317
4,117,840
1,782,652
3,704,298
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
16,787,841
15,748,515
16,108,258
14,839,965
Carrying amount of financial liabilities
Measured at amortised cost
42,839,713
45,743,351
41,499,345
43,659,585
SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
12,723,474
10,822,243
12,044,291
10,117,955
Other debtors
4,064,367
4,926,272
4,063,967
4,722,010
Prepayments and accrued income
733,153
639,150
667,212
557,742
17,520,994
16,387,665
16,775,470
15,397,707
Amounts falling due after more than one year:
Deferred tax asset (note 22)
4,583,154
5,710,494
4,479,180
5,470,344
Total debtors
22,104,148
22,098,159
21,254,650
20,868,051
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
5,941,109
5,713,933
5,941,109
5,713,933
Obligations under finance leases
21
7,850,982
8,119,676
7,392,230
7,626,151
Trade creditors
12,522,242
12,137,903
11,933,323
11,698,977
Other taxation and social security
1,121,726
1,851,627
850,885
1,699,534
Other creditors
2,279,752
2,648,513
2,747,237
2,487,060
Accruals and deferred income
723,244
638,632
710,744
625,002
30,439,055
31,110,284
29,575,528
29,850,657
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
2,438,283
3,261,791
2,438,283
3,261,791
Obligations under finance leases
21
11,084,101
13,222,903
10,336,419
12,246,671
13,522,384
16,484,694
12,774,702
15,508,462
SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,308,457
4,660,123
3,308,457
4,660,123
Bank overdrafts
5,070,935
4,315,601
5,070,935
4,315,601
8,379,392
8,975,724
8,379,392
8,975,724
Payable within one year
5,941,109
5,713,933
5,941,109
5,713,933
Payable after one year
2,438,283
3,261,791
2,438,283
3,261,791

The long-term loans are secured by a personal guarantee from Mr A Smith of £3,960,000 along with first legal charge over multiple freehold property totalling £2,470,000.

 

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
7,850,982
8,119,676
7,392,230
7,626,151
In two to five years
11,084,101
13,222,903
10,336,419
12,246,671
18,935,083
21,342,579
17,728,649
19,872,822

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances and Tax losses
4,720,518
5,192,035
-
-
Tax losses
-
-
4,583,154
5,710,494
4,720,518
5,192,035
4,583,154
5,710,494
SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
22
Deferred taxation
(Continued)
- 31 -
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances and Tax losses
4,340,442
4,762,303
-
-
Tax losses
-
-
4,479,180
5,470,344
4,340,442
4,762,303
4,479,180
5,470,344
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 October 2023
(518,459)
(708,041)
Charge to profit or loss
655,823
569,303
Liability/(Asset) at 30 September 2024
137,364
(138,738)

The deferred tax asset set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to reverse within the same period.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
455,018
432,419

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2024
2023
Ordinary share capital
£
£
Issued and fully paid
100 Ordinary shares of £1 each
100
100
SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including directors, is as follows.

2024
2023
£
£
Aggregate compensation
863,347
758,931

Guarantees

 

The long-term loans are secured by a personal guarantee from Mr A Smith of £3,000,000.

Group

At the year end the group was owed £1,613,878 (2023 - £1,783,438) from Mr A Smith trading as Street Farm and £471,545 (2023 - £441,755) from Smith's Plant Hire.

 

Company

Smith's (Gloucester) Limited owns 100% of the share capital of Smith's Construction (Gloucester) Limited, Smith's (Demolition) Limited, Smith's Transport Limited, Smith's (Waste Management) Limited, Smiths (Plant Hire) Limited, Ermin Plant (Hire & Services) Limited and Smith's Energy Limited. Mr A Smith is also a director and the sole shareholder of Smiths (Landscaping) Limited. All of the aforementioned companies are considered related parties to Smith's (Gloucester) Limited. Transactions between the parties are carried out within the company's sales and purchase ledger systems. At the balance sheet date the balances between these companies were as follows;

 

Smiths (Gloucester) Limited owed £479,384 (2023 - £203,862) to Ermin Plant Hire Limited

 

At the year end the company was owed £1,613,878 (2023 - £1,783,438) from Mr A Smith trading as Street Farm and £471,545 (2023 - £441,755) from Smith's Plant Hire.

26
Directors' transactions

No dividends were paid to any directors (2023 - £nil) in the financial period.

SMITH'S (GLOUCESTER) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,803,687
2,448,652
Adjustments for:
Taxation charged/(credited)
655,823
(592,190)
Finance costs
1,772,165
1,249,304
Investment income
(50,959)
(145,370)
Gain on disposal of tangible fixed assets
(1,037,273)
(2,199,168)
Amortisation and impairment of intangible assets
210,813
210,813
Depreciation and impairment of tangible fixed assets
6,617,346
6,441,257
Movements in working capital:
Decrease/(increase) in stocks
1,988,523
(860,856)
Increase in debtors
(1,133,329)
(43,437)
(Decrease)/increase in creditors
(629,711)
621,067
Cash generated from operations
10,197,085
7,130,072
28
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,473,575
1,389,085
2,862,660
Bank overdrafts
(4,315,601)
(755,334)
(5,070,935)
(2,842,026)
633,751
(2,208,275)
Borrowings excluding overdrafts
(4,660,123)
1,351,666
(3,308,457)
Obligations under finance leases
(21,342,579)
2,407,496
(18,935,083)
(28,844,728)
4,392,913
(24,451,815)
29
Analysis of changes in net debt - company
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,399,182
1,374,752
2,773,934
Bank overdrafts
(4,315,601)
(755,334)
(5,070,935)
(2,916,419)
619,418
(2,297,001)
Borrowings excluding overdrafts
(4,660,123)
1,351,666
(3,308,457)
Obligations under finance leases
(19,872,822)
2,144,173
(17,728,649)
(27,449,364)
4,115,257
(23,334,107)
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