Company registration number SC579769 (Scotland)
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 25
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr Derek Logan
Mr Gary McKeating
Company number
SC579769
Registered office
19 James Street
Righead Industrial Estate
Bellshill
Scotland
ML4 3LU
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

The directors present the strategic report for the year ended 31 October 2024.

Review of the business

The year was not without its challenges amid the backdrop of economic uncertainty and rising inflation. During the year under review revenue decreased by 8% to £16.2 million. Despite this, the group has continued to be profitable with profit before tax increasing to £2.6m (2023: £2.4m)

 

Overall the directors are delighted with the results for the year and the prospects for 2025 provide an opportunity for further growth in the future.

Principal risks and uncertainties

The directors have assessed the main risk facing the company as being the competition from other companies within the industry. The directors believe that the reputation of the company and the quality of the products will mitigate this risk.

Key performance indicators

The directors consider the key performance indicators of the company to be the gross profit margin and the operating margin. Gross profit margin has increased to 27.2% (2023: 24.5%) and operating margin increased to 15.4% (2023: 13.7%).

Financial Risk Management Objectives and Policies

The group finances its operations through its retained profits. Management's objective is to retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due.

On behalf of the board

Mr Derek Logan
Director
12 May 2025
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Principal activities

The principal activity of the company and group continued to be that of supplying specialist ground pipeline products.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £574,132 (£468,247). The directors do not recommend payment of a further dividend.

Directors

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

Mr Gary Craig
(Resigned 17 June 2024)
Mr Derek Logan
Mr Gary McKeating
Auditor

The auditor, Consilium Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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.

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.

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
On behalf of the board
Mr Derek Logan
Director
12 May 2025
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
- 5 -
Opinion

We have audited the financial statements of Civils And Drainage Supplies (Group) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise 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:

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
- 6 -
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.

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
- 7 -

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.

David Holt
Senior Statutory Auditor
For and on behalf of Consilium Audit Limited
Statutory Auditor
169 West George Street
Glasgow
Scotland
G2 2LB
Date:
20 May 2025
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
16,248,702
17,674,235
Cost of sales
(11,831,762)
(13,348,224)
Gross profit
4,416,940
4,326,011
Administrative expenses
(1,916,286)
(1,903,445)
Operating profit
4
2,500,654
2,422,566
Interest receivable and similar income
8
95,283
35,485
Interest payable and similar expenses
9
(10,032)
(9,996)
Profit before taxation
2,585,905
2,448,055
Tax on profit
10
(670,601)
(558,064)
Profit for the financial year
1,915,304
1,889,991
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the 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.

The notes on pages 14 to 25 form part of these financial statements.

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
131,441
129,743
Current assets
Stocks
15
1,804,424
1,494,073
Debtors
16
3,893,655
3,718,431
Cash at bank and in hand
4,894,991
5,153,390
10,593,070
10,365,894
Creditors: amounts falling due within one year
17
(3,549,440)
(3,120,960)
Net current assets
7,043,630
7,244,934
Total assets less current liabilities
7,175,071
7,374,677
Provisions for liabilities
Deferred tax liability
18
22,307
27,785
(22,307)
(27,785)
Net assets
7,152,764
7,346,892
Capital and reserves
Called up share capital
20
21,177
23,530
Capital redemption reserve
2,353
-
0
Profit and loss reserves
7,129,234
7,323,362
Total equity
7,152,764
7,346,892

The notes on pages 14 to 25 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 12 May 2025 and are signed on its behalf by:
12 May 2025
Mr Derek Logan
Director
Company registration number SC579769 (Scotland)
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
1,964,525
1,964,525
Current assets
Cash at bank and in hand
15,094
413
Creditors: amounts falling due within one year
17
(1,938,472)
(1,938,472)
Net current liabilities
(1,923,378)
(1,938,059)
Net assets
41,147
26,466
Capital and reserves
Called up share capital
20
21,177
23,530
Capital redemption reserve
2,353
-
0
Profit and loss reserves
17,617
2,936
Total equity
41,147
26,466

The notes on pages 14 to 25 form part of these financial statements.

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 £2,124,113 (2023 - £468,247 profit).

The financial statements were approved by the board of directors and authorised for issue on 12 May 2025 and are signed on its behalf by:
12 May 2025
Mr Derek Logan
Director
Company registration number SC579769 (Scotland)
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
23,530
-
0
5,901,618
5,925,148
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
1,889,991
1,889,991
Dividends
11
-
-
(468,247)
(468,247)
Balance at 31 October 2023
23,530
-
0
7,323,362
7,346,892
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
1,915,304
1,915,304
Dividends
11
-
-
(574,132)
(574,132)
Own shares acquired
(2,353)
2,353
(1,535,300)
(1,535,300)
Balance at 31 October 2024
21,177
2,353
7,129,234
7,152,764

The notes on pages 14 to 25 form part of these financial statements.

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
23,530
-
0
2,936
26,466
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
468,247
468,247
Dividends
11
-
-
(468,247)
(468,247)
Balance at 31 October 2023
23,530
-
0
2,936
26,466
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
2,124,113
2,124,113
Dividends
11
-
-
(574,132)
(574,132)
Own shares acquired
(2,353)
2,353
(1,535,300)
(1,535,300)
Balance at 31 October 2024
21,177
2,353
17,617
41,147

The notes on pages 14 to 25 form part of these financial statements.

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
2,364,641
2,508,272
Interest paid
(10,032)
(9,996)
Income taxes paid
(559,243)
(565,953)
Net cash inflow from operating activities
1,795,366
1,932,323
Investing activities
Purchase of tangible fixed assets
(39,616)
(69,477)
Interest received
95,283
35,485
Net cash generated from/(used in) investing activities
55,667
(33,992)
Financing activities
Purchase of own shares
(1,535,300)
-
0
Dividends paid to equity shareholders
(574,132)
(468,247)
Net cash used in financing activities
(2,109,432)
(468,247)
Net (decrease)/increase in cash and cash equivalents
(258,399)
1,430,084
Cash and cash equivalents at beginning of year
5,153,390
3,723,306
Cash and cash equivalents at end of year
4,894,991
5,153,390

The notes on pages 14 to 25 form part of these financial statements.

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
1
Accounting policies
Company information

Civils And Drainage Supplies (Group) Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 19 James Street, Righead Industrial Estate, Bellshill, Scotland, ML4 3LU.

 

The group consists of Civils And Drainage Supplies (Group) 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. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Civils And Drainage Supplies (Group) 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 31 October 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Going concern

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

1.5
Turnover

The turnover shown in the Statement of Comprehensive Income represents the value of all goods sold during the year, less returns received at a selling price exclusive of Value Added Tax. Sales are recognised at the point at which the Company has fulfilled its contractual obligations to the customer

1.6
Tangible fixed assets

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

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

Plant and equipment
20% straight line
Fixtures and fittings
15% straight line
Computers
25% straight line
Motor vehicles
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.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

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.

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
1.10
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.

1.11
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 initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

1.12
Equity instruments

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

1.13
Taxation

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

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
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
Retirement benefits

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

1.15
Leases

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 lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.16
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.

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Supplier rebates

Determine provision for rebates receivable at the year-end with reference to supplier rebates agreements.

Trade debtors

Determine whether any bad debt provision is required via review of trade debtors, with debts provided for on a specific basis. Factors considered include customer payment history and agreed credit terms.

Stock

Determine whether any stock provision is required via comparison of cost and net realisable value of stock on an item by item basis.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
16,248,702
17,674,235
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
37,918
28,919
Operating lease charges
172,500
172,500
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company's subsidiaries
23,050
22,400
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
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
Office and administration
4
4
-
-
Sales, marketing and distribution
18
17
-
-
Total
22
21
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
799,095
757,077
-
0
-
0
Social security costs
77,807
68,091
-
-
Pension costs
16,039
16,509
-
0
-
0
892,941
841,677
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
82,749
106,719
Company pension contributions to defined contribution schemes
7,520
9,616
90,269
116,335
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
95,283
35,485
9
Interest payable and similar expenses
2024
2023
£
£
Interest on invoice finance arrangements
10,032
9,996
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
676,079
547,600
Deferred tax
Origination and reversal of timing differences
(5,478)
10,464
Total tax charge
670,601
558,064

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
2,585,905
2,448,055
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
646,476
551,248
Tax effect of expenses that are not deductible in determining taxable profit
23,926
6,965
Depreciation on assets not qualifying for tax allowances
199
199
Enhanced capital allowances
-
0
(348)
Taxation charge
670,601
558,064

From April 2023 onwards, the main rate of Corporation Tax rose from 19% to 25%. Companies with profits of £50,000 or less continued to be taxed at 19% which was a new small profits rate. The tax rate utilised in the current year is 25% (2023: 23%). Deferred tax has been calculated at a rate of 25%.

11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
574,132
468,247
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
12
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2023
108,689
62,233
21,657
-
0
192,579
Additions
10,811
-
0
2,305
26,500
39,616
At 31 October 2024
119,500
62,233
23,962
26,500
232,195
Depreciation and impairment
At 1 November 2023
21,864
34,832
6,140
-
0
62,836
Depreciation charged in the year
22,250
8,717
5,847
1,104
37,918
At 31 October 2024
44,114
43,549
11,987
1,104
100,754
Carrying amount
At 31 October 2024
75,386
18,684
11,975
25,396
131,441
At 31 October 2023
86,825
27,401
15,517
-
0
129,743
The company had no tangible fixed assets at 31 October 2024 or 31 October 2023.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1,964,525
1,964,525
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023 and 31 October 2024
1,964,525
Carrying amount
At 31 October 2024
1,964,525
At 31 October 2023
1,964,525
14
Subsidiaries

Details of the company's subsidiaries at 31 October 2024 are as follows:

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
14
Subsidiaries
(Continued)
- 22 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
CDU Supplies Limited
19 James Street, Righead Industrial Estate, Bellshill, ML4 3LU
Ordinary
100.00
-
Civils and Drainage Supplies Limited
C/O Daly, Hoggett & Co, 5-11 Mortimer Street, London, England, W1T 3HS
Ordinary
0
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
1,804,424
1,494,073
-
0
-
0
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,491,761
3,358,219
-
0
-
0
Other debtors
318,978
279,811
-
0
-
0
Prepayments and accrued income
82,916
80,401
-
0
-
0
3,893,655
3,718,431
-
-
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
2,773,485
2,419,877
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,938,472
1,938,472
Corporation tax payable
373,140
261,782
-
0
-
0
Other taxation and social security
175,518
161,638
-
-
Other creditors
2,034
-
0
-
0
-
0
Accruals and deferred income
225,263
277,663
-
0
-
0
3,549,440
3,120,960
1,938,472
1,938,472
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
18
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
22,307
27,785
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
27,785
-
Credit to profit or loss
(5,478)
-
Liability at 31 October 2024
22,307
-
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
16,039
16,509

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.

20
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
21,177
23,530
21,177
23,530

During the year, the company repurchased 2,353 of its ordinary shares for consideration of £1,535,300. The shares were subsequently cancelled.

CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
21
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
325,923
297,871
-
-
Between two and five years
928,943
917,297
-
-
In over five years
345,000
517,500
-
-
1,599,866
1,732,668
-
-
22
Related party transactions

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

 

No further transactions with related parties were undertaken such as are required to be disclosed under the provisions of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

23
Controlling party

In the opinion of the directors there is no ultimate controlling party.

24
Cash generated from group operations
2024
2023
£
£
Profit after taxation
1,915,304
1,889,991
Adjustments for:
Taxation charged
670,601
558,064
Finance costs
10,032
9,996
Investment income
(95,283)
(35,485)
Depreciation and impairment of tangible fixed assets
37,918
28,919
Movements in working capital:
Increase in stocks
(310,351)
(138,249)
(Increase)/decrease in debtors
(175,224)
727,435
Increase/(decrease) in creditors
311,644
(532,399)
Cash generated from operations
2,364,641
2,508,272
CIVILS AND DRAINAGE SUPPLIES (GROUP) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
25
Analysis of changes in net funds - group
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
5,153,390
(258,399)
4,894,991
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