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Registration number: 3089788

Specialist Surfacing Limited

Annual Report and Financial Statements

for the Year Ended 30 September 2024

 

Specialist Surfacing Limited

Contents

Strategic Report

1 to 2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 21

 

Specialist Surfacing Limited

Strategic Report for the Year Ended 30 September 2024

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

Principal activity

The principal activity of the company is that of macadam surfacing.

Fair review of the business

The financial year ended 30 September 2024 has been highly profitable with operating profits achieved in excess of £3.1 million. There has been an increase in the GP margin from 19.2% in the previous year to 22.5%. This has been due to a reduction in raw material costs.

The balance sheet remains in a strong position, with net cash and cash equivalents at the year-end of £4.4 million (£1.1 million in 2023).

The company remains in a good position as the company aims to improve the margin and to continue achieving a good level of profitability. We are therefore pleased with the performance in 2024 and the outlook for the 2025-year end.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£000

20,705

20,458

Gross profit

£000

4,657

3,920

Gross margin

%

22

19

Operating profit

£000

3,161

2,462

Operating profit margin

%

15

12

Principal risks and uncertainties

Company performance post year end remains in line with expectations. Despite this, the company still faces risks and uncertainties in the course of its day-to-day operations. The successful management of risk is essential to enable the company to deliver its strategic objectives.

Noted below are key risks and uncertainties applicable to the company. Control of each of these risks is essential to ensure the ongoing success of the business. As such, the management is primarily the responsibility of the directors which is supported by the management throughout the company.

Supply chain risk:

The supply chain crisis which followed the pandemic has eased slightly resulting improved margins. Unavailability of materials can lead to unexpected downtime. Thanks to our excellent relationship with suppliers, built on a partnership approach to delivering high quality surfacing to our customers, the company continues to mitigate the impact of this risk.

Financial risk:

As the company operates it is open to potential uncertainties such as financial risks, most notably credit risk and liquidity risk. The effects of credit risks are controlled by the adoption of policies that require appropriate credit checking and monitoring of new customers and also for supplier and subcontractors, particularly when placing large orders. The company has no ongoing disputes or debts. Liquidity risk is managed by monitoring the cash flow position to ensure that sufficient funds are available to meet amounts due for current and future operations. The company remains in a strong cash position but management are aware how suddenly this can fluctuate in the construction sector.

 

Specialist Surfacing Limited

Strategic Report for the Year Ended 30 September 2024

Market risk:

In order to minimise exposure to market risk we undertake contracts with a variety of customers. We plan to take advantage of long term public and private investment plans for road infrastructure, whilst maintaining our existing diverse workload. We recognise the risk of not focusing on completing our contractual obligations and therefore strive to fulfil these to a good quality, time scale and budget. Our success in this area generates repeat custom and protects the company position in the market place.

Workforce and materials risk:

If the availability of skilled workers, subcontractors or materials is insufficient to meet demand, this could lead to increased costs and therefore impact profitability. We maintain regular contact with suppliers, negotiating contract volumes, pricing and duration. We provide high level and site-specific programme information to the subcontractor base to aid with demand planning. When selecting our subcontractors, we consider competencies particularly in relation to health and safety, quality, previous performance and financial stability. Over the years we have built good relationships with subcontractors as management. For our own workforce, investment is continued to be made in their training and development. Should circumstances change whereby there is a major negative impact on supply chain, the company has the financial resources to ride out an enforced temporary reduction in its activity.

Health and safety risk:

The company has detailed procedures and policies in place to minimise health and safety risks which are inherent due to the nature of the business. The directors take this responsibility seriously and in order to manage this risk procedures and policies are constantly being reviewed.

Approved by the Board on 23 May 2025 and signed on its behalf by:

Mr S A Hunt
Director

   
     
 

Specialist Surfacing Limited

Directors' Report for the Year Ended 30 September 2024

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

Directors of the company

The directors who held office during the year were as follows:

Mr J D Horton

Mr C A Tate

Mr D T Hunt

Mr S Morse

Mr S A Hunt

Mrs G P Hunt

Financial instruments

Objectives and policies

The directors take the management of risk very seriously and as such have policies and procedures in place which have been authorised by the Board. Managing risk is seen as a key attribute of the company, as such, regular Board meetings are held where current management accounts are available to highlight any financial risks to be dealt with.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the availability of cash balances and the monies held in investments. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors. Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

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 by the Board on 23 May 2025 and signed on its behalf by:


Mr S A Hunt
Director

 

Specialist Surfacing Limited

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.

 

Specialist Surfacing Limited

Independent Auditor's Report to the Members of Specialist Surfacing Limited

Opinion

We have audited the financial statements of Specialist Surfacing Limited (the 'company') for the year ended 30 September 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 30 September 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.

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 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

Specialist Surfacing Limited

Independent Auditor's Report to the Members of Specialist Surfacing Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and 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 4, 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's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Specialist Surfacing Limited

Independent Auditor's Report to the Members of Specialist Surfacing Limited

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

the nature of the industry and sector, control environment and business performance;

the company’s own assessment of the risks that irregularities may occur either as a result of fraud or error;

results of our enquiries of management about their own identification and assessment of the risks of irregularities;

the key laws and regulations under which the business operates and whether management were aware of any instances of noncompliance; and

whether the management have knowledge of any actual, suspected or alleged fraud.

 

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 following areas: revenue recognition; working capital transactions and management override.

 

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override:

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

 

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 included the UK Companies Act, Tax legislation, and Regulations established by regulators in the key markets in which the company operates.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included the operating and environmental regulations relevant to the company as well as health and safety regulations relevant to the company. In addition to the above, our procedures to respond to risks identified included the following:

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having a direct effect on the financial statements;

enquiring of management, concerning any actual and potential litigation and claims;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

in addressing the risk of fraud in revenue recognition, we have performed focussed testing on trades close to the year-end, depth testing and analytical review procedures to assess accuracy and completeness of revenue recognised;

 

Specialist Surfacing Limited

Independent Auditor's Report to the Members of Specialist Surfacing Limited

in addressing the risk of fraud in the use of purchase ledger/working capital transactions, we have reviewed the accounting treatments adopted by management against the specific contractual terms and arrangements associated with each individual transaction and reviewed the related disclosures in the financial statements; and

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become
aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.





Robert Smith BSc FCA (Senior Statutory Auditor)
For and on behalf of RNS Chartered Accountants, Statutory Auditor

50-54 Oswald Road
Scunthorpe
North Lincolnshire
DN15 7PQ

23 May 2025

 

Specialist Surfacing Limited

Profit and Loss Account for the Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

20,705,402

20,457,972

Cost of sales

 

(16,048,686)

(16,537,576)

Gross profit

 

4,656,716

3,920,396

Administrative expenses

 

(1,495,895)

(1,458,128)

Operating profit

4

3,160,821

2,462,268

Other interest receivable and similar income

5

101,346

76,015

Interest payable and similar expenses

6

-

(125)

   

101,346

75,890

Profit before tax

 

3,262,167

2,538,158

Tax on profit

10

(745,409)

(570,988)

Profit for the financial year

 

2,516,758

1,967,170

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Specialist Surfacing Limited

(Registration number: 3089788)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

11

1,429,827

1,511,453

Current assets

 

Stocks

12

126,556

181,492

Debtors

13

4,681,605

5,874,147

Cash at bank and in hand

14

4,414,744

1,101,177

 

9,222,905

7,156,816

Creditors: Amounts falling due within one year

15

(6,800,589)

(5,216,133)

Net current assets

 

2,422,316

1,940,683

Total assets less current liabilities

 

3,852,143

3,452,136

Creditors: Amounts falling due after more than one year

15

-

(68,836)

Provisions for liabilities

16

(338,938)

(386,853)

Net assets

 

3,513,205

2,996,447

Capital and reserves

 

Called up share capital

18

480

480

Profit and loss account

3,512,725

2,995,967

Total equity

 

3,513,205

2,996,447

Approved and authorised by the Board on 23 May 2025 and signed on its behalf by:
 


Mr S A Hunt
Director

   
 

Specialist Surfacing Limited

Statement of Changes in Equity for the Year Ended 30 September 2024

Share capital
£

Retained earnings
£

Total
£

At 1 October 2023

480

2,995,967

2,996,447

Profit for the year

-

2,516,758

2,516,758

Total comprehensive income

-

2,516,758

2,516,758

Dividends

-

(2,000,000)

(2,000,000)

At 30 September 2024

480

3,512,725

3,513,205

Share capital
£

Retained earnings
£

Total
£

At 1 October 2022

480

2,668,797

2,669,277

Profit for the year

-

1,967,170

1,967,170

Total comprehensive income

-

1,967,170

1,967,170

Dividends

-

(1,640,000)

(1,640,000)

At 30 September 2023

480

2,995,967

2,996,447

 

Specialist Surfacing Limited

Statement of Cash Flows for the Year Ended 30 September 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

2,516,758

1,967,170

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

540,269

588,336

Profit on disposal of tangible assets

(188,166)

(142,009)

Finance income

5

(101,346)

(76,015)

Finance costs

6

-

125

Corporation tax expense

10

745,409

570,988

 

3,512,924

2,908,595

Working capital adjustments

 

Decrease/(increase) in stocks

12

54,936

(36,137)

Decrease in trade debtors

13

1,192,542

393,923

Increase/(decrease) in trade creditors

15

1,351,295

(1,561,591)

Cash generated from operations

 

6,111,697

1,704,790

Corporation tax paid

10

(629,000)

(376,180)

Net cash flow from operating activities

 

5,482,697

1,328,610

Cash flows from investing activities

 

Interest received

5

101,346

76,015

Acquisitions of tangible assets

(475,218)

(674,047)

Proceeds from sale of tangible assets

 

204,742

203,167

Net cash flows from investing activities

 

(169,130)

(394,865)

Cash flows from financing activities

 

Interest paid

6

-

(125)

Dividends paid

19

(2,000,000)

(1,640,000)

Net cash flows from financing activities

 

(2,000,000)

(1,640,125)

Net increase/(decrease) in cash and cash equivalents

 

3,313,567

(706,380)

Cash and cash equivalents at 1 October

 

1,101,177

1,807,557

Cash and cash equivalents at 30 September

 

4,414,744

1,101,177

 

Specialist Surfacing Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
26-30 Midland Road
Scunthorpe
North Lincolnshire
DN16 1DQ

Registered number: 3089788

2

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.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current 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.

 

Specialist Surfacing Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

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 over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, fittings & equipment

over 5 to 7 years

Motor vehicles

25% on cost per annum

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 merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured less a provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised at the transaction price.

 

Specialist Surfacing Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

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.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Rendering of services

20,705,402

20,457,972

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

776,351

759,522

Profit on disposal of property, plant and equipment

(188,166)

(142,009)

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

110,791

76,015

Other finance income

(9,445)

-

101,346

76,015

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

-

125

 

Specialist Surfacing Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

3,353,837

3,089,793

Social security costs

356,805

353,777

Pension costs, defined contribution scheme

81,244

68,805

3,791,886

3,512,375

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

43

44

Administration and support

9

9

52

53

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

352,155

307,966

Contributions paid to money purchase schemes

18,140

14,517

370,295

322,483

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2024
£

2023
£

Remuneration

147,605

109,196

Company contributions to money purchase pension schemes

6,455

5,106

 

Specialist Surfacing Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

8,995

8,380


 

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

793,324

517,917

Deferred taxation

Arising from origination and reversal of timing differences

(47,915)

53,071

Tax expense in the profit and loss account

745,409

570,988

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

3,262,167

2,538,158

Corporation tax at standard rate

815,542

634,540

Effect of expense not deductible in determining taxable profit

1,106

6,855

Deferred tax (credit)/expense

(47,915)

53,071

Tax decrease from effect of capital allowances and depreciation

(21,643)

(53,071)

Adjustments relating to changes in tax rates

(1,681)

(70,407)

Total tax charge

745,409

570,988

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

338,938

 

Specialist Surfacing Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

2023

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

386,853

11

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 October 2023

3,546,789

1,269,304

4,816,093

Additions

317,902

157,316

475,218

Disposals

(407,530)

(194,689)

(602,219)

At 30 September 2024

3,457,161

1,231,931

4,689,092

Depreciation

At 1 October 2023

2,653,223

651,417

3,304,640

Charge for the year

304,186

236,082

540,268

Eliminated on disposal

(407,216)

(178,427)

(585,643)

At 30 September 2024

2,550,193

709,072

3,259,265

Carrying amount

At 30 September 2024

906,968

522,859

1,429,827

At 30 September 2023

893,566

617,887

1,511,453

12

Stocks

2024
£

2023
£

Other stocks

126,556

181,492

13

Debtors

Note

2024
£

2023
£

Trade debtors

 

4,098,418

3,793,479

Amounts owed by related parties

20

9,750

1,579,417

Other debtors

 

-

3,665

Prepayments

 

63,678

68,944

VAT

 

509,759

428,642

   

4,681,605

5,874,147

 

Specialist Surfacing Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

14

Cash and cash equivalents

2024
£

2023
£

Cash on hand

537

356

Cash at bank

4,414,207

1,100,821

4,414,744

1,101,177

15

Creditors

Note

2024
£

2023
£

Due within one year

 

Trade creditors

 

3,232,841

2,542,130

Amounts due to group undertakings

20

1,987,376

1,287,772

Social security and other taxes

 

574,743

431,654

Outstanding defined contribution pension costs

 

20,417

17,534

Other creditors

 

617,464

605,076

Accrued expenses and deferred income

 

367,748

331,967

 

6,800,589

5,216,133

Due after one year

 

Other non-current financial liabilities

 

-

68,836

16

Provisions for liabilities

Deferred tax
£

Total
£

At 1 October 2023

386,853

386,853

Increase in existing provisions

(47,915)

(47,915)

At 30 September 2024

338,938

338,938

17

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 £81,244 (2023 - £68,805).

Contributions totalling £20,417 (2023 - £17,534) were payable to the scheme at the end of the year and are included in creditors.

 

Specialist Surfacing Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

18

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary A shares of £1 each

360

360

360

360

Ordinary B shares of £1 each

120

120

120

120

480

480

480

480

19

Dividends

Final dividends paid

2024
£

2023
£

Final dividend of £4,166.67 (2023 - £3,416.67) per each Ordinary A shares

1,500,000

1,230,000

Final dividend of £4,166.67 (2023 - £3,416.67) per each Ordinary B shares

500,000

410,000

2,000,000

1,640,000

20

Related party transactions

Transactions with directors

Mr D and Mrs G Hunt, Mr S Morse, Mr C Tate and Mr J Horton

Ordinary dividends paid to directors in their capacity as shareholders during the year were £500,000 (2023 - £410,000).

At the balance sheet date the amount due to the directors was £499,920 (2023 - £578,756) of which £nil (2023 - £68,836) is due after one year. No interest is payable in respect of this balance.

Summary of transactions with parent

Hunt Group Limited
 (Parent company)

During the year the company sold goods to the value of £35,359 (2023 - £7,623) to, and purchased goods and services to the value of £594,844 (2023 - £285,605) from the parent company. At the balance sheet date the amount due to Hunt Group Limited was £1,987,376 (2023 - £1,268,329).

Summary of transactions with entities with joint control or significant interest

Group companies
 (Intercompany transactions)

 

Specialist Surfacing Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

During the year the company sold goods to the value of £4,013,883 (2023 - £4,876,078) to group companies. At the balance sheet date the amount due from group companies was £9,750 (2023 - £1,579,417). During the year the company bought goods to the value of £108,070 (2023 - £27,431) from group companies. At the balance sheet date the amount owing to group companies was £nil (2023 - £19,443).

21

Parent and ultimate parent undertaking

The company's immediate and ultimate parent is Hunt Group Limited, incorporated in the UK.

 The ultimate controlling party is Mr D T Hunt, a director of the company.

The parent of the largest group in which these financial statements are consolidated is Hunt Group Limited, incorporated in the UK.

The address of Hunt Group Limited is:
26 - 30 Midland Road
Scunthorpe
North Lincolnshire
DN16 1DQ