Registered number
13940764
Gibbs Surfacing (Northern) Limited
Filleted Financial Statements
31 August 2024
Gibbs Surfacing (Northern) Limited
Company Information
Directors
Mr V Gibbs
Mr C Philbin
Mr C Daly
Ms V Gibbs
Secretary
Ms V Gibbs
Accountants
Roberts, Emery and Co Ltd
Chartered Certified Accountant
13 Clinton Place
Liverpool
L12 7HB
Registered office
21 Turnpike Road
Blunsdon
Swindon
Wiltshire
SN26 7EA
Registered number
13940764
Gibbs Surfacing (Northern) Limited
Registered number: 13940764
Directors' Report
The directors present their report and accounts for the year ended 31 August 2024.
Principal activities
The company’s principal activity during the year continued to be surfacing contracting.
The Directors are pleased to report a significant improvement in the Company's operating margins when compared to its early trading performance. During the first 18 months trading period, ending on 31/08/23, the Company faced various headwinds notably bad debts of £135k principally due to Buckingham Group being put into Administration circa July 2023.
Additionally, as a new business without established relationships with local and national material suppliers, the Company incurred higher procurement costs which negatively impacted turnover and net profitability. These headwinds, exacerbated by the oil price hike and its effect on asphalt prices following Russia’s invasion of Ukraine, inevitably led to a subdued financial performance during the initial trading period.
Over the twelve months to 31/08/24, however, the Company saw a gradual and significant improvement in its trading relationship with new customers and its existing supply chain partners. Following a period of growing confidence from these partners, more competitive rates for asphalt & macadam materials followed. This shift enabled the Company to align its pricing policy with that of local key competitors, boosting the Company’s ability to win bigger contracts. As a result, turnover and profitability has increased significantly year on year (£86,496 pre tax profit vis a vis £383,022).
Looking forward, the Directors are very optimistic about future prospects. The Company now enjoys a large volume of repeat work from its customer base which is testament to both the quality of work and service delivered, as well as underscoring the strength of all relationships that have been built in the period since trading began in April 2022. The ongoing support of supply chain partners along with substantial investment in new plant, equipment and employee training, positions the Company positively to capitalise on current and future market opportunities.
Based on performance in the first half of the current financial year (six months to 28/2/25) the Directors can expect, barring any unforeseen headwinds, that the Company will deliver a further improvement in profitability for the full year to 31/08/25 which will further strengthen its balance sheet. In the medium term, the Directors plan to position the Company to expand its trading footprint to all areas of the construction marketplace, including Local Authority annual contract works, in addition to working more with tier one national construction companies.
Directors
The following persons served as directors during the year:
Mr V Gibbs
Mr C Philbin
Mr C Daly
Ms V Gibbs
Small company provisions
This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
This report was approved by the board on 16 April 2025 and signed on its behalf.
Mr C Daly
Director
Gibbs Surfacing (Northern) Limited
Report to the directors on the preparation of the unaudited statutory accounts of Gibbs Surfacing (Northern) Limited for the year ended 31 August 2024
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Gibbs Surfacing (Northern) Limited for the year ended 31 August 2024 which comprise of the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at
http://rulebook.accaglobal.com/
Our work has been undertaken in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/factsheet163.
Roberts, Emery and Co Ltd
Chartered Certified Accountant
13 Clinton Place
Liverpool
L12 7HB
16 April 2025
Gibbs Surfacing (Northern) Limited
Registered number: 13940764
Balance Sheet
as at 31 August 2024
Notes 2024 2023
£ £
Fixed assets
Tangible assets 3 438,704 222,777
Current assets
Stocks 7,335 2,981
Debtors 4 1,295,485 795,992
Cash at bank and in hand 306,535 135,185
1,609,355 934,158
Creditors: amounts falling due within one year 5 (973,104) (556,359)
Net current assets 636,251 377,799
Total assets less current liabilities 1,074,955 600,576
Creditors: amounts falling due after more than one year 6 (570,984) (513,080)
Provisions for liabilities 8 (127,983) (42,328)
Net assets 375,988 45,168
Capital and reserves
Called up share capital 1,000 1,000
Revaluation reserve 7 26,771 -
Profit and loss account 348,217 44,168
Shareholders' funds 375,988 45,168
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr C Daly
Director
Approved by the board on 16 April 2025
Gibbs Surfacing (Northern) Limited
Notes to the Accounts
for the year ended 31 August 2024
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Asset class Depreciation method and rate
Motor vehicles 15% reducing balance
Plant and machinery 15% reducing balance
Office equipment 33% straight line
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Defined contribution pension oligation
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2024 2023
Number Number
Average number of persons employed by the company 25 14
3 Tangible fixed assets
Land and buildings Plant and machinery etc Motor vehicles Total
£ £ £ £
Cost
At 1 September 2023 - 202,043 88,350 290,393
Additions - 158,902 134,455 293,357
Revaluation 61,462 (34,691) 26,771
Disposals - (15,700) (21,700) (37,400)
At 31 August 2024 - 406,707 166,414 573,121
Depreciation
At 1 September 2023 - 47,737 19,879 67,616
Charge for the year - 47,300 27,916 75,216
On disposals - (3,532) (4,883) (8,415)
At 31 August 2024 - 91,505 42,912 134,417
Net book value
At 31 August 2024 - 315,202 123,502 438,704
At 31 August 2023 - 154,306 68,471 222,777
4 Debtors 2024 2023
£ £
Trade debtors 1,139,052 706,698
VAT 144,174 84,148
Prepayments 12,009 5,146
Other debtors 250 -
1,295,485 795,992
5 Creditors: amounts falling due within one year 2024 2023
£ £
Obligations under finance lease and hire purchase contracts 102,916 57,168
Trade creditors 726,820 429,756
Taxation and social security costs 31,825 33,800
Directors loan account 103,130 27,000
Accruals 4,271 8,000
Other creditors 4,142 635
973,104 556,359
6 Creditors: amounts falling due after one year 2024 2023
£ £
Obligations under finance lease and hire purchase contracts 173,134 28,179
Other creditors 397,850 484,901
570,984 513,080
7 Revaluation reserve 2024 2023
£ £
Gain on revaluation of fixed assets 26,771 -
At 31 August 2024 26,771 -
8 Provisions 2024 2023
£ £
Provision for doubtful debts 25,000 -
Deferred taxation 102,983 42,328
127,983 42,328
9 Financial commitments 2024 2023
£ £
Amounts contracted for but not provided in the accounts 36,350 36,350
10 Related party transactions
Key mangement personnel
Included within other creditors due after more then 1 year is £397,850 (2023 £484,901) being amounts owed to P Sweeney, part of the companies key management personnel.
11 Other information
Gibbs Surfacing (Northern) Limited is a private company limited by shares and incorporated in England. Its registered office is:
21 Turnpike Road
Blunsdon
Swindon
Wiltshire
SN26 7EA
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