Company registration number 02615062 (England and Wales)
WADE BUILDING SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
WADE BUILDING SERVICES LIMITED
COMPANY INFORMATION
Director
Mr I S Basi
Company number
02615062
Registered office
Groveland Road
Tipton
West Midlands
DY4 7TN
Auditor
CK Audit
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
Business address
Groveland Road
Tipton
West Midlands
DY4 7TN
WADE BUILDING SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
WADE BUILDING SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The director presents the strategic report for the year ended 31 August 2024.
Review of the business
The principal activity of the company is the sale of building materials nationally, specialising in the structural components, and also the hire and sales of temporary fencing and all associated products.
During the year, the company successfully completed a management buyout (MBO), reinforcing our commitment to long-term strategic growth and stability.
Overall, the Directors are satisfied with the financial results for the year. The 2023/24 period saw a decrease in turnover. Alongside rising material and servicing costs, this impacted gross profit margins further, reflecting a more challenging market environment.
We continue to invest in facilities and operational processes is expected to yield further benefits, supported by a strong and promising order book for the year ahead.
The Directors consider the company’s financial position as at 31st August 2024 to be satisfactory, with resilience to navigate potential sector uncertainties.
Principal risks and uncertainties
The company actively assesses business risks, ensuring mitigation strategies are in place. The Directors evaluate each risk’s likelihood and impact, implementing appropriate controls accordingly.
The UK market remains highly competitive, with tight profit margins posing an ongoing challenge. Key risks such as credit management, health and safety, and regulatory compliance are closely managed at the Director level. Despite this, the company benefits from a diverse customer base, with promising opportunities continuing to emerge.
Development and performance
The company’s key performance indicators, turnover and operating profit, reflect its financial strength. Compared to the previous year, turnover has decreased, and profit margins have been affected.
Despite a decrease in turnover, the company remains profitable and has continued to invest in key areas, including software, workforce development, and vehicles, to strengthen operational efficiency and support future growth.
Mr I S Basi
Director
29 May 2025
WADE BUILDING SERVICES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
The director presents his annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company is the hire and sale of scaffolding and temporary fencing, and the sale of lintels and other products to the building industry.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £27,500. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr W C Pierce
(Resigned 26 September 2024)
Mr A C Clowes
(Resigned 26 September 2024)
Mr I S Basi
Auditor
In accordance with the company's articles, a resolution proposing that CK Audit be reappointed as auditor of the company will be put at a General Meeting.
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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr I S Basi
Director
29 May 2025
WADE BUILDING SERVICES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
WADE BUILDING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WADE BUILDING SERVICES LIMITED
- 4 -
Opinion
We have audited the financial statements of Wade Building Services Limited (the 'company') for the year ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
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.
For accounting periods up to 31 August 2022 the company was able to claim an exemption from the requirement to appoint auditors as a small company and consequently prepared and filed financial statements that were not subject to audit. The company is no longer able to claim the audit exemption and the directors have appointed auditors in respect of the financial statements for the period ended 31 August 2023. We were unable to obtain sufficient appropriate audit evidence of the opening balances and the transactions recorded in the comparative period as the company was not previously subject to audit. Consequently we were unable to determine whether any adjustments to the comparative figures were necessary which may have had an effect on the profit to 31 August 2023.
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 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 financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.
WADE BUILDING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WADE BUILDING SERVICES LIMITED (CONTINUED)
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the 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 or the director's 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:
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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identified and assessed the risks of material misstatement of the financial statements, in respect of irregularities whether due to fraud or error, or non compliance with laws and regulations and then designed and performed 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, our procedures included the following:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company by discussion and enquiry with the directors and management team and our general knowledge and experience of the construction industry.
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation;
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with relevant regulators.
WADE BUILDING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WADE BUILDING SERVICES LIMITED (CONTINUED)
- 6 -
Audit response to risks identified
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed included but were not limited to:
Discussions with directors and management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
Confirming our understanding of controls by performing a walk through test or observation and enquiry;
Performing analytical procedures to identify any unusual or unexpected relationships;
Challenging assumptions and judgements made by management;
Identifying and testing journal entries;
Reviewing unusual or unexpected transactions; and
Agreeing the financial statement disclosures to underlying supporting documentation.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. 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, if any.
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.
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.
Frances Clapham
Senior Statutory Auditor
For and on behalf of CK Audit
29 May 2025
Chartered Accountants
Statutory Auditor
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
WADE BUILDING SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
17,153,506
18,464,262
Cost of sales
(14,552,303)
(15,319,852)
Gross profit
2,601,203
3,144,410
Distribution costs
(663,772)
(671,325)
Administrative expenses
(1,319,896)
(1,178,091)
Other operating income
11,295
Operating profit
3
628,830
1,294,994
Interest receivable and similar income
6
53,541
Interest payable and similar expenses
7
(5,551)
Profit before taxation
682,371
1,289,443
Tax on profit
8
(173,737)
(268,794)
Profit for the financial year
508,634
1,020,649
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 12 to 22 form part of these financial statements.
WADE BUILDING SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
£
£
Profit for the year
508,634
1,020,649
Other comprehensive income
Tax relating to other comprehensive income
(6,446)
Total comprehensive income for the year
508,634
1,014,203
The notes on pages 12 to 22 form part of these financial statements.
WADE BUILDING SERVICES LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,337,535
1,155,493
Current assets
Stocks
11
3,471,598
2,196,158
Debtors
12
2,955,860
2,359,714
Cash at bank and in hand
3,006,733
3,241,919
9,434,191
7,797,791
Creditors: amounts falling due within one year
13
(6,201,379)
(4,914,475)
Net current assets
3,232,812
2,883,316
Total assets less current liabilities
4,570,347
4,038,809
Provisions for liabilities
Deferred tax liability
14
167,115
116,711
(167,115)
(116,711)
Net assets
4,403,232
3,922,098
Capital and reserves
Called up share capital
16
55,000
55,000
Revaluation reserve
249,508
249,508
Capital redemption reserve
306,455
306,455
Profit and loss reserves
3,792,269
3,311,135
Total equity
4,403,232
3,922,098
The notes on pages 12 to 22 form part of these financial statements.
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 29 May 2025 and are signed on its behalf by:
Mr I S Basi
Director
Company registration number 02615062 (England and Wales)
WADE BUILDING SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 September 2022
55,000
255,954
306,455
2,482,986
3,100,395
Year ended 31 August 2023:
Profit
-
-
-
1,020,649
1,020,649
Other comprehensive income:
Tax relating to other comprehensive income
-
(6,446)
-
(6,446)
Total comprehensive income
-
(6,446)
-
1,020,649
1,014,203
Dividends
9
-
-
-
(192,500)
(192,500)
Balance at 31 August 2023
55,000
249,508
306,455
3,311,135
3,922,098
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
-
508,634
508,634
Dividends
9
-
-
-
(27,500)
(27,500)
Balance at 31 August 2024
55,000
249,508
306,455
3,792,269
4,403,232
The notes on pages 12 to 22 form part of these financial statements.
WADE BUILDING SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
279,006
1,428,530
Interest paid
(5,551)
Income taxes paid
(279,197)
(217,094)
Net cash (outflow)/inflow from operating activities
(191)
1,205,885
Investing activities
Purchase of tangible fixed assets
(299,836)
(54,750)
Proceeds from disposal of tangible fixed assets
38,800
Interest received
53,541
Net cash used in investing activities
(207,495)
(54,750)
Financing activities
Repayment of bank loans
(335,980)
Dividends paid
(27,500)
(192,500)
Net cash used in financing activities
(27,500)
(528,480)
Net (decrease)/increase in cash and cash equivalents
(235,186)
622,655
Cash and cash equivalents at beginning of year
3,241,919
2,619,264
Cash and cash equivalents at end of year
3,006,733
3,241,919
The notes on pages 12 to 22 form part of these financial statements.
WADE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
1
Accounting policies
Company information
Wade Building Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Groveland Road, Tipton, West Midlands, DY4 7TN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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.
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:
Land and buildings Freehold
Nil - 10% straight line
Plant and machinery
5-50% straight line
Fixtures, fittings & equipment
20% straight line
Motor vehicles
25/50% 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 credited or charged to profit or loss.
Freehold property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in the SOCI.
WADE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets
At each reporting period end date, the company 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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
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.
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
WADE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
WADE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
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 company’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 when the company has 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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Building Product Sales
17,107,524
18,464,262
Analysis per statutory database
17,107,524
18,464,262
Statutory database analysis does not agree to the trial balance by:
45,982
-
2024
2023
£
£
Other revenue
Interest income
53,541
-
WADE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
2
Turnover and other revenue
(Continued)
- 16 -
All of the turnover was attributable to the UK.
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,850
13,475
Depreciation of owned tangible fixed assets
111,324
77,019
Profit on disposal of tangible fixed assets
(32,329)
-
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Distribution
18
19
Administration
12
12
Sales
12
9
Total
42
40
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,319,515
1,247,170
Social security costs
125,498
124,912
Pension costs
50,325
46,835
1,495,338
1,418,917
5
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
200,625
226,663
WADE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
5
Director's remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
120,100
163,156
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
53,541
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
53,541
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
5,551
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
125,771
279,195
Deferred tax
Origination and reversal of timing differences
47,966
(10,401)
Total tax charge
173,737
268,794
WADE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
Taxation
(Continued)
- 18 -
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
682,371
1,289,443
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
170,593
277,488
Tax effect of expenses that are not deductible in determining taxable profit
3,119
1,649
Depreciation on assets not qualifying for tax allowances
3,028
Other non-reversing timing differences
25
(3,371)
Deferred tax adjustments in respect of prior years
(10,000)
Taxation charge for the year
173,737
268,794
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
6,446
9
Dividends
2024
2023
£
£
Interim paid
27,500
192,500
WADE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
10
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2023
1,056,806
153,764
128,936
331,896
1,671,402
Additions
24,457
9,379
266,000
299,836
Disposals
(176,145)
(176,145)
At 31 August 2024
1,056,806
178,221
138,315
421,751
1,795,093
Depreciation and impairment
At 1 September 2023
59,838
121,395
128,936
205,739
515,908
Depreciation charged in the year
14,080
16,370
5,120
75,754
111,324
Eliminated in respect of disposals
(169,674)
(169,674)
At 31 August 2024
73,918
137,765
134,056
111,819
457,558
Carrying amount
At 31 August 2024
982,888
40,456
4,259
309,932
1,337,535
At 31 August 2023
996,967
32,369
126,157
1,155,493
Freehold land and buildings is included at deemed cost as follows:
2024
2023
£
£
Historical cost
685,085
685,085
Revaluation
371,630
371,630
Deemed cost
1,056,715
1,056,715
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,471,598
2,196,158
WADE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,917,581
2,325,076
Other debtors
2,900
Prepayments and accrued income
20,730
22,427
2,941,211
2,347,503
Deferred tax asset (note 14)
14,649
12,211
2,955,860
2,359,714
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
5,469,828
4,096,781
Corporation tax
125,771
279,196
Other taxation and social security
32,356
86,790
Other creditors
506
1,194
Accruals and deferred income
572,918
450,514
6,201,379
4,914,475
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
87,578
37,174
14,649
10,961
Revaluations
79,537
79,537
-
-
Provisions
-
-
-
1,250
167,115
116,711
14,649
12,211
2024
Movements in the year:
£
Liability at 1 September 2023
104,500
Charge to profit or loss
47,966
Liability at 31 August 2024
152,466
WADE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,325
46,835
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
55,000
55,000
55,000
55,000
17
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
1,835
2,835
Between two and five years
1,836
1,835
4,671
18
Events after the reporting date
Subsequent to the balance sheet date, certain shareholders sold their holdings to an existing shareholder, resulting in a change in the ownership structure. The transaction does not affect the financial position as at 31 December 2024 and is considered a non-adjusting event. However, due to its financial impact on the future governance of the company, this event is disclosed.
WADE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
19
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
508,634
1,020,649
Adjustments for:
Taxation charged
173,737
268,794
Finance costs
5,551
Investment income
(53,541)
Gain on disposal of tangible fixed assets
(32,329)
-
Depreciation and impairment of tangible fixed assets
111,324
77,019
Movements in working capital:
(Increase)/decrease in stocks
(1,275,440)
98,366
(Increase)/decrease in debtors
(593,708)
492,094
Increase/(decrease) in creditors
1,440,329
(533,943)
Cash generated from operations
279,006
1,428,530
20
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
3,241,919
(235,186)
3,006,733
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