Registration number:
for the Year Ended
Dragon Asphalt Ltd
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Dragon Asphalt Ltd
Company Information
Directors |
Mr M Cowley Ms K Pryor Mr C D Barron |
Company secretary |
Mr S Gorman |
Registered office |
|
Auditors |
|
Dragon Asphalt Ltd
Strategic Report for the Year Ended 31 August 2024
The directors present their strategic report for the year ended 31 August 2024.
Principal activity
The principal activity of the company is the manufacture of asphalt products for construction purposes.
Fair review of the business
At a glance
We produce and supply asphalt products used for the repair, maintenance and construction of roads and pavements. Our key focus is utilities and local authorities, along with smaller civil engineering projects. We operate from 3 locations and have grown market share through a commitment to quality products and a fast turnaround.
249 active customers
15 minutes average turnaround time
3 operational plants
74% revenue growth
The essential nature of maintaining roads and utilities means we operate in a market segment which is:
• largely non-discretionary
• resilient to large fluctuations; and
• has not traditionally suffered from the sustained downturns seen in other segments of construction.
Business Review
Financial highlights
The financial results for the 12 months to 31 August 2024 reported record revenues of £16m (2023: £15.8m).
Earnings before interest, tax, deprecation and amortisation (EBITDA) for the period were £2.46m (2023: £3.18m).
Adjusted EBITDA - removing the specific cost in relation to new site development were £2.89m (2023: £3.18m).
Net cash flow generation remained extremely strong at £2.21m (2023: £2.56m).
Dragon Asphalt Ltd
Strategic Report for the Year Ended 31 August 2024
Market and performance
Despite a wider market contraction in the year, Dragon has continued to grow revenue, increase market share and maintain strong financial performance.
Revenues exceeded £16m for the first time, an adjusted EBITDA of £2.89m takes consideration to the pre-operational costs of setting up the new Trafford operation. Profitability remains stable despite significant increases in raw material costs (5.5%) driven by high hydrocarbon increases adversely affecting bitumen, power and drying costs.
Our Trafford plant became operational in the final month of the financial year so the full impact of this expansion will not be seen until next year’s financial statements. The plant launched to immediate local demand, supplying over 2,000 tonnes of product in its first full month.
Continued investment in both operational efficiency and business development at our Stanton plant has led to growth in its market share as the year progressed, delivering consistently stronger performance, and it is currently supplying over 4,000 tonnes of product per month to the local customer base.
Alongside the continued success of our Newport plant, with all three plants operational for the coming year, we are projecting growth in both revenues and profitability.
Cash and balance sheet
We have continued to produce strong cashflows during the year, enabling us to invest in new locations. Strategic financing arrangements have allowed us to continue to invest in assets and operations, whilst maintaining sufficient cash headroom and working capital.
Year-end cash balances have reduced as the Trafford plant became operational in the final month of the year, with material cost and expenses pre-operational costs incurred prior to the plant being revenue generating. It is forecast to become cash generative during its first year of being operational.
Tangible assets more than doubled in the year to £10.7m (2023: £4.9m) due to additions of over £6m, including the addition of our Trafford plant.
Outlook
With the incoming Labour Government committing to spend £35 billion on Roads and Infrastructure in the next 5 years, including a pledge to increase spending on local road maintenance by 50% next year, we are in a strong position to continue our growth trend.
Dragon Asphalt Ltd
Strategic Report for the Year Ended 31 August 2024
Our model for growth
Our strategy continues to focus on providing value to collect customers who purchase smaller loads of product. By ensuring we have the right range of quality products readily available, and focusing on minimising wait times, we continue to attract a loyal base of repeat customers. We are proud of this focus, publishing our average wait times each week on our website.
We place great focus on customer feedback, continually seeking to improve our products to make them not only compliant, but best-in-class for their specific needs.
With our Newport plant being the epitome of “The Dragon Way”, during the year we have continued to embed this DNA at Stanton and have already been excited to see how our approach has enthused both our new team and our new clients in Trafford.
During the year, we have enhanced our approach to process management and training to ensure that as we grow, each and every member of our team understands our core values, our focus and the approach and behaviours that have underpinned our success to date.
We have engaged in strategic recruitment, expanding our senior leadership team to support our Managing Director and recruiting a dedicated Business Development Manager to develop a roadmap for geographical expansion.
In order to maintain our position as a market leader in the collect segment, we recognise that innovation is crucial. We are committed to empowering our team to identify, explore and implement new initiatives to deliver value to our customers, with a particular focus on carbon reduction and environmental, as well and the possibilities provided by the development of AI and automation.
Safety, Health, Environment and Quality
We are proud to report our unwavering commitment to excellence in Health & Safety, quality, and environmental management. Our dedication is reflected in our 100% compliance with all audits related to ISO 9001, 14001, and 45001 standards. This achievement underscores our relentless pursuit of operational excellence, ensuring the highest quality of our products and services while safeguarding the well-being of our employees and minimising our environmental impact. We remain steadfast in our mission to uphold these standards, fostering a safe, sustainable, and high-quality operational environment.
Employee and stakeholder engagement and involvement is ingrained within the company’s integrated management system. While the core features of these management systems are now well established and proven, the systems are ever evolving to ensure continual improvement and adaption to the future growth of the business.
Dragon Asphalt Ltd
Strategic Report for the Year Ended 31 August 2024
Principal risks and uncertainties
Whilst Dragon has been fortunate to experience significant growth since its inception, we recognise that we operate in a market which has inherent and material risks.
Market
Whilst the outlook is broadly positive, the wider construction market has experienced contraction during the year, driven by inflation, high interest rates and political uncertainty. During wider construction market downturns, suppliers who typically serve larger projects can refocus on our segment, strengthening competition. With some notable failures in the construction sector in the year, whilst the market has stabilised, it is still not showing strong signs of confidence for the coming year. Ensuring a continued focus on delivering our differentiators remains our key mitigation to this risk.
Cost pressure
Our core input cost is the purchase of raw materials, including aggregate and bitumen. Consequently, we are continually exposed to changes in commodity prices, but take an active approach to monitoring and, where appropriate, hedging risk.
Operational
We continue to be committed to a robust integrated management system, with hands-on involvement and oversight from our senior leadership team. We are fortunate to experience strong engagement from across the team, including quality and safety.
Cash collection and liquidity
Whilst growth is core to our strategy, we recognise that geographic expansion requires significant capital investment and consequently creates a demand on cash. Whilst we are ambitious with growth plans, we take great care to be prudent in planning cash requirements and ensuring sufficient cash headroom.
In addition, during any periods where the construction sector has been exposed to material business failures, it is important we remain vigilant in our credit management. Whilst our segment is somewhat insulated from these wider sector risks due its differing end client base, we maintain appropriate credit control processes to mitigate risk.
Good Governance
Christopher Barron, our Managing Director, was appointed to the board on 23 November 2023. The board now comprises 3 directors, supported by the Company Secretary.
Supported by our accountants and other advisors, we produce and review a monthly management pack, setting out financial performance and other KPIs.
We are committed to engaging regularly and appropriately with external auditors to ensure compliance.
The board continue to be actively engaged with our shareholders, providing regular updates on performance, strategy and objectives.
Dragon Asphalt Ltd
Strategic Report for the Year Ended 31 August 2024
Environmental, social and community impact
Environment
We are conscious that asphalt production by its nature may affect the environment.
To ensure we continue to mitigate this, we produce usage KPIs which are measured and managed as part of our overall business targets and objectives. Our integrated management system is ISO9001 accredited, and our operations are audited annually to ensure consistency and compliance.
Looking to the year ahead, we are expanding our existing carbon reduction initiatives, adopting a holistic approach to the company’s carbon footprint and identifying opportunities which this improved insight could offer.
Supporting communities
We continue to provide support to a range of community initiatives, including charities and grass roots sports organisations - in particular those focusing on youth development. We do this locally to our plants, contributing to ensuring that local young people are able to benefit from enhanced facilities and equipment. Many of our stakeholders share a commitment to supporting these initiatives, deepening our connections with them.
Approved and authorised by the
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Dragon Asphalt Ltd
Directors' Report for the Year Ended 31 August 2024
The directors present their report and the financial statements for the year ended 31 August 2024.
Directors of the company
The directors who held office during the year were as follows:
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
......................................... |
Dragon Asphalt Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
Dragon Asphalt Ltd
Independent Auditor's Report to the Members of Dragon Asphalt Ltd
Opinion
We have audited the financial statements of Dragon Asphalt Ltd (the 'company') for the year ended 31 August 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 August 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 auditor 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.
Other matter
The company took advantage of audit exemption for the year ended 31 August 2023 and therefore the comparatives were unaudited, although the year end stock take was attended in anticipation of the audit requirement for year ended 31 August 2024.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
Dragon Asphalt Ltd
Independent Auditor's Report to the Members of Dragon Asphalt Ltd
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and 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 8], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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:
Dragon Asphalt Ltd
Independent Auditor's Report to the Members of Dragon Asphalt Ltd
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of
irregularities, including fraud. As such, we have considered:
the nature of the industry and sector, control environment and business performance including the company's
remuneration policy, bonus levels, and performance targets;
the company's own assessment, including assessments made by key management, of the risks that
irregularities may occur either as a result of fraud or error;
any matters we identified having reviewed the company's policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any
instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud; and
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
the matters discussed amongst the audit engagement team.
As a result of these procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and identified the greatest potential for fraud in the areas in which management is
required to exercise significant judgement, such as the disclosure of adjusting items. In common with all
audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of
management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in,
focusing on provisions of those laws and regulations that had a direct effect on the determination of material
amounts and disclosures in the financial statements. The key laws and regulations we considered in this
context were the Companies Act, tax legislation and regulations concerning importing and exporting to and
from the UK.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
......................................
For and on behalf of
2 Old Bath Road
Berkshire
RG14 1QL
Dragon Asphalt Ltd
Profit and Loss Account for the Year Ended 31 August 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
2,064,111 |
2,993,338 |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(135,977) |
(100,041) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Dragon Asphalt Ltd
(Registration number: 11232672)
Balance Sheet as at 31 August 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current (liabilities)/assets |
( |
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
1,000 |
1,000 |
|
Share premium reserve |
499,000 |
499,000 |
|
Retained earnings |
5,418,629 |
4,763,556 |
|
Shareholders' funds |
5,918,629 |
5,263,556 |
Approved and authorised by the
......................................... |
Dragon Asphalt Ltd
Statement of Changes in Equity for the Year Ended 31 August 2024
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 September 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 August 2023 |
1,000 |
499,000 |
4,763,556 |
5,263,556 |
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 September 2023 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 August 2024 |
|
|
|
|
Dragon Asphalt Ltd
Statement of Cash Flows for the Year Ended 31 August 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
- |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Increase in trade debtors |
( |
( |
|
Increase in trade creditors |
|
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from other borrowing draw downs |
|
- |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
|
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 September |
|
|
|
Cash and cash equivalents at 31 August |
333,167 |
2,300,377 |
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
The principal place of business is:
16 West Way Road
Alexandra Docks
Newport
Gwent
NP20 2WD
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
At the balance sheet date, the company had net current liabilities of £2,010,219. This has been addressed post year end through the transfer of a loan of £3,013,000 to an asset finance facility as referenced in the adjusting events after the financial period note. The split of the asset finance facility between current and non-current liabilities leaves the post year end balance sheet in a net current asset position. The directors therefore consider the going concern basis to be appropriate.
Adjusting events after the financial period
A pre-inception loan used for the purchase of the Trafford facility was confirmed as being settled on 27 November 2024 and as such, the entire amount has been recognised as a current liability.
|
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the manufacture of concrete products for construction purposes in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax payable and deferred tax.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
3 - 20 years straight line |
Hardware and office equipment |
5 - 10 years straight line |
Software |
10 years straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for the manufacture of concrete products for construction purposes in the ordinary course of business.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Sale of goods |
|
|
The analysis of the company's Turnover for the year by market is as follows:
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
2024 |
2023 |
|
UK |
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2024 |
2023 |
|
Sub lease rental income |
|
|
Miscellaneous other operating income |
|
|
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
2024 |
2023 |
|
Gain on disposal of Tangible assets |
|
- |
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Operating lease expense - property |
|
|
Profit on disposal of property, plant and equipment |
( |
- |
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Staff recruitment costs |
|
|
Other employee expense |
|
|
|
|
There are no key management remuneration requiring disclosure other than that in relation to the directors of the company.
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
Research and development |
|
- |
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
- |
Contributions paid to money purchase schemes |
|
- |
136,605 |
- |
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
Auditors' remuneration |
2024 |
2023 |
|
Audit of the financial statements |
|
- |
Other fees to auditors |
||
Taxation compliance services |
|
- |
All other non-audit services |
|
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
2024 |
2023 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Tax increase from other short-term timing differences |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
- |
( |
Tax increase from effect of unrelieved tax losses carried forward |
|
- |
Total tax charge |
|
|
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
Deferred tax
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Accelerated Capital Allowances |
- |
|
- |
|
2023 |
Asset |
Liability |
Accelerated Capital Allowances |
- |
|
- |
|
Tangible assets |
Hardware and office equipment |
Plant and machinery |
Software |
Total |
|
Cost or valuation |
||||
At 1 September 2023 |
|
|
|
|
Additions |
|
|
- |
|
Disposals |
- |
( |
- |
( |
At 31 August 2024 |
|
|
|
|
Depreciation |
||||
At 1 September 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
At 31 August 2024 |
|
|
|
|
Carrying amount |
||||
At 31 August 2024 |
|
|
|
|
At 31 August 2023 |
|
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2024 |
2023 |
|
Plant and machinery |
6,196,385 |
2,488,594 |
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
Stocks |
2024 |
2023 |
|
Other inventories |
|
|
Debtors |
2024 |
2023 |
|
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
|
Less non-current portion |
( |
( |
|
|
Cash and cash equivalents |
2024 |
2023 |
|
Cash at bank |
|
|
Creditors |
Note |
2024 |
2023 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Accruals |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 September 2023 |
|
|
Additional provisions |
|
|
At 31 August 2024 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
Ordinary A1 shares of £1 each |
266 |
266 |
259 |
259 |
Ordinary A2 shares of £1 each |
111 |
111 |
111 |
111 |
Ordinary A3 shares of £1 each |
25 |
25 |
25 |
25 |
Ordinary A4 shares of £1 each |
25 |
25 |
25 |
25 |
Ordinary A5 shares of £1 each |
25 |
25 |
50 |
50 |
Ordinary A6 shares of £1 each |
5 |
5 |
- |
- |
Ordinary A7 shares of £1 each |
28 |
28 |
15 |
15 |
Ordinary A8 shares of £1 each |
15 |
15 |
15 |
15 |
Ordinary B1 shares of £1 each |
261 |
261 |
254 |
254 |
Ordinary B2 shares of £1 each |
106 |
106 |
106 |
106 |
Ordinary B3 shares of £1 each |
25 |
25 |
25 |
25 |
Ordinary B4 shares of £1 each |
25 |
25 |
25 |
25 |
Ordinary B5 shares of £1 each |
25 |
25 |
50 |
50 |
Ordinary B6 shares of £1 each |
15 |
15 |
10 |
10 |
Ordinary B7 shares of £1 each |
28 |
28 |
15 |
15 |
Ordinary B8 shares of £1 each |
15 |
15 |
15 |
15 |
|
|
|
|
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
Loans and borrowings |
Non-current loans and borrowings
2024 |
2023 |
|
Hire purchase contracts |
|
|
Current loans and borrowings
2024 |
2023 |
|
Hire purchase contracts |
|
|
Other borrowings |
|
- |
|
|
The hire purchase facilities are secured against the fixed assets to which they relate.
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
- |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Analysis of changes in net debt |
At 1 September 2023 |
Cash flows |
At 31 August 2024 |
|
Cash and cash equivalents |
|||
Cash |
2,300,377 |
(1,967,210) |
333,167 |
Borrowings |
|||
Long term borrowings |
- |
(3,012,752) |
(3,012,752) |
Lease liabilities |
(2,313,767) |
1,033,442 |
(1,280,325) |
(2,313,767) |
(1,979,310) |
(4,293,077) |
|
( |
( |
( |
|
|
Related party transactions |
Transactions with directors |
2024 |
At 1 September 2023 |
Advances to director |
At 31 August 2024 |
Mr C D Barron |
|||
Director Loan |
- |
|
|
Dragon Asphalt Ltd
Notes to the Financial Statements for the Year Ended 31 August 2024
Other transactions with directors |
During the period the company provided an interest free loan to C D Barron. This loan is unsecured and repayments are to be made annually with the final repayment falling due in December 2028.
Summary of transactions with parent
- Dividends of £415,934 (2023 £94,595) were paid.
- Rent expenditure of £12,120 (2023 £48,480).
- Fixed asset addition of £549,183 (2023 £nil).
At the balance sheet the amount outstanding was £nil 2023 (£nil).
Summary of transactions with other related parties
Parent and ultimate parent undertaking |
The company's immediate parent is
These financial statements are available upon request from Companies House
Crown Way
Cardiff
CF14 3UZ