SNC HOLDINGS (NW) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
Company Registration No. 08443494 (England and Wales)
SNC HOLDINGS (NW) LIMITED
COMPANY INFORMATION
Directors
Mr S P Quinn
Mr B Doran
Company number
08443494
Registered office
Unit 8
Sankey Valley Industrial Estate
Earlestown
Newton-le-Willows
WA12 8DN
Auditor
DSG Audit
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
SNC HOLDINGS (NW) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 34
SNC HOLDINGS (NW) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

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

Review of the business

The principal activity of the group continued to be that of vacuum excavation.

 

The principal activity of the company continued to be that of a holding company.

 

The results for the year show an increase in turnover of 8.3% from £16.5m to £17.9m and a decrease in operating profit from c.£2.6m to c.£2.0m. The group has net assets of £17.5m compared to £16.9m in the prior year.

Principal risks and uncertainties

Management has considered potential operational challenges, including but not restricted to, an assessment of the robustness of their supply chain and broader logistic arrangements as well as the impact this might have on going concern. See the going concern policy for further information.

 

Financial risk management objectives and policies

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

 

Due to the nature of the financial instruments used by the group there is no material exposure to price risk. The group's approach to managing other risks applicable to financial instruments concerned is shown below.

 

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.

 

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due and to take advantage of early payment discounts were available.

Key performance indicators

Our principle key performance indicators measure gross margin, sales in value, debtor days and effective usage of fixed assets.

Future developments

The group has a strong balance sheet, cash position and a loyal customer base.

Group prospects

The Directors believe the group is well placed to continue to trade profitably and will seek to use its existing capacity and any future investment in plant and machinery together with its experience and skills to maintain its existing market share and develop new opportunities.

On behalf of the board

Mr S P Quinn
Director
28 May 2025
SNC HOLDINGS (NW) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

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

Results and dividends

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

Ordinary dividends were paid amounting to £426,005. 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 S P Quinn
Mr B Doran
Ms M Hughes
(Resigned 16 February 2024)
Post reporting date events

There are no adjusting or non-adjusting events which have come to light at this current time.

Future developments

The group plans to continue to grow the business and its reputation throughout the industry. The external commercial environment is expected to remain competitive but management remain confident that the group will maintain or increase its market share going forward.

Auditor

DSG resigned as auditor on 11 September 2024. DSG Audit were appointed on 11 September 2024 to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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 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.

Strategic report

The group and company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. This has been done in respect of principal activities and financial instruments.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

SNC HOLDINGS (NW) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
On behalf of the board
Mr S P Quinn
Director
28 May 2025
SNC HOLDINGS (NW) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -

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.

SNC HOLDINGS (NW) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SNC HOLDINGS (NW) LIMITED
- 5 -
Opinion

We have audited the financial statements of SNC Holdings (NW) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the group profit and loss account, 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:

SNC HOLDINGS (NW) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SNC HOLDINGS (NW) 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.

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

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity:

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

SNC HOLDINGS (NW) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SNC HOLDINGS (NW) LIMITED
- 7 -

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.

Jean Ellis BA FCA CTA (Senior Statutory Auditor)
For and on behalf of DSG Audit, Statutory Auditor
Chartered Accountants
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
28 May 2025
SNC HOLDINGS (NW) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
17,903,395
16,538,614
Cost of sales
(10,409,863)
(9,696,618)
Gross profit
7,493,532
6,841,996
Administrative expenses
(5,504,824)
(4,198,093)
Other operating income
19,143
5,120
Operating profit
4
2,007,851
2,649,023
Share of profits of associates
72,346
95,872
Interest payable and similar expenses
5
(1,012,684)
(545,214)
Profit before taxation
1,067,513
2,199,681
Tax on profit
7
(844,274)
(998,400)
Profit for the financial year
223,239
1,201,281
Profit for the financial year is all attributable to the owners of the parent company.

The notes on pages 15 to 34 form part of these financial statements.

SNC HOLDINGS (NW) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
2024
2023
£
£
Profit for the year
223,239
1,201,281
Other comprehensive income
Revaluation of tangible fixed assets
1,193,292
3,498,918
Tax relating to other comprehensive income
(595,995)
(661,140)
Other comprehensive income for the year
597,297
2,837,778
Total comprehensive income for the year
820,536
4,039,059
Total comprehensive income for the year is all attributable to the owners of the parent company.
SNC HOLDINGS (NW) LIMITED
GROUP BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
367,333
-
0
Tangible assets
10
34,973,792
28,846,731
Investments
12
275,580
203,234
35,616,705
29,049,965
Current assets
Stocks
15
96,743
5,080
Debtors
16
5,317,645
3,762,446
Cash at bank and in hand
667,447
1,186,618
6,081,835
4,954,144
Creditors: amounts falling due within one year
17
(7,086,500)
(5,114,468)
Net current liabilities
(1,004,665)
(160,324)
Total assets less current liabilities
34,612,040
28,889,641
Creditors: amounts falling due after more than one year
18
(12,023,527)
(7,804,336)
Provisions for liabilities
Deferred tax liability
21
5,080,845
4,211,155
(5,080,845)
(4,211,155)
Net assets
17,507,668
16,874,150
Capital and reserves
Called up share capital
23
100
100
Revaluation reserve
6,817,243
6,848,752
Profit and loss reserves
10,690,325
10,025,298
Total equity
17,507,668
16,874,150

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 28 May 2025 and are signed on its behalf by:
28 May 2025
Mr S P Quinn
Director
Company registration number 08443494 (England and Wales)
SNC HOLDINGS (NW) LIMITED
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
367,333
-
0
Investment property
11
2,206,658
1,706,658
Investments
12
2,469,126
11,251
5,043,117
1,717,909
Current assets
Debtors
16
198,500
309,023
Cash at bank and in hand
64,163
662,430
262,663
971,453
Creditors: amounts falling due within one year
17
(2,634,327)
(302,456)
Net current (liabilities)/assets
(2,371,664)
668,997
Total assets less current liabilities
2,671,453
2,386,906
Creditors: amounts falling due after more than one year
18
(284,561)
(307,729)
Provisions for liabilities
Deferred tax liability
21
256,742
161,742
(256,742)
(161,742)
Net assets
2,130,150
1,917,435
Capital and reserves
Called up share capital
23
100
100
Revaluation reserve
505,079
5,079
Profit and loss reserves
1,624,971
1,912,256
Total equity
2,130,150
1,917,435

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 £138,720 (2023 - £2,223,538 profit).

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 28 May 2025 and are signed on its behalf by:
28 May 2025
Mr S P Quinn
Director
Company registration number 08443494 (England and Wales)
SNC HOLDINGS (NW) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2022
100
4,339,270
8,760,364
13,099,734
Year ended 31 August 2023:
Profit for the year
-
-
1,201,281
1,201,281
Other comprehensive income:
Revaluation of tangible fixed assets
-
3,498,918
-
3,498,918
Tax relating to other comprehensive income
-
(661,140)
-
0
(661,140)
Total comprehensive income
-
2,837,778
1,201,281
4,039,059
Dividends
8
-
-
(1,007,694)
(1,007,694)
Other movements
-
(328,296)
1,071,347
743,051
Balance at 31 August 2023
100
6,848,752
10,025,298
16,874,150
Year ended 31 August 2024:
Profit for the year
-
-
223,239
223,239
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,193,292
-
1,193,292
Tax relating to other comprehensive income
-
(595,995)
-
0
(595,995)
Total comprehensive income
-
597,297
223,239
820,536
Dividends
8
-
-
(426,005)
(426,005)
Other movements
-
(628,806)
867,793
238,987
Balance at 31 August 2024
100
6,817,243
10,690,325
17,507,668
SNC HOLDINGS (NW) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
(as restated)
Notes
£
£
£
£
Balance at 1 September 2022
100
-
0
696,412
696,512
Year ended 31 August 2023:
Profit for the year
-
-
2,223,538
2,223,538
Other comprehensive income:
Revaluation of tangible fixed assets
-
5,079
-
5,079
Total comprehensive income
-
5,079
2,223,538
2,228,617
Dividends
8
-
-
(1,007,694)
(1,007,694)
Balance at 31 August 2023
100
5,079
1,912,256
1,917,435
Year ended 31 August 2024:
Profit for the year
-
-
138,720
138,720
Other comprehensive income:
Revaluation of tangible fixed assets
-
500,000
-
500,000
Total comprehensive income
-
500,000
138,720
638,720
Dividends
8
-
-
(426,005)
(426,005)
Balance at 31 August 2024
100
505,079
1,624,971
2,130,150
SNC HOLDINGS (NW) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
4,911,393
5,750,799
Interest paid
(1,012,684)
(545,214)
Income taxes paid
(818,841)
(743,051)
Net cash inflow from operating activities
3,079,868
4,462,534
Investing activities
Purchase of business
(2,823,750)
-
Purchase of tangible fixed assets
(189,295)
(791,307)
Proceeds from disposal of tangible fixed assets
1,815,000
660,524
Proceeds from disposal of associates
-
(50)
Net cash used in investing activities
(1,198,045)
(130,833)
Financing activities
Repayment of borrowings
(425,000)
-
Proceeds from new bank loans
4,868,000
-
Repayment of bank loans
(335,776)
(21,636)
Payment of finance leases obligations
(6,082,213)
(3,950,262)
Dividends paid to equity shareholders
(426,005)
(1,007,694)
Net cash used in financing activities
(2,400,994)
(4,979,592)
Net decrease in cash and cash equivalents
(519,171)
(647,891)
Cash and cash equivalents at beginning of year
1,186,618
1,834,509
Cash and cash equivalents at end of year
667,447
1,186,618
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
1
Accounting policies
Company information

SNC Holdings (NW) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 8, Sankey Valley Industrial Estate, Earlestown, Newton-le-Willows, WA12 8DN.

 

The group consists of SNC Holdings (NW) Limited and all of its subsidiaries.

 

The principal activities of the group and company are disclosed in the Strategic Report.

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 plant and machinery at fair value. 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.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company SNC Holdings (NW) 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 August 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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

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

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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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.

SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 17 -

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:

Freehold land and buildings
Not depreciated
Leasehold improvements
Not depreciated
Plant and equipment
10 - 25% reducing balance
Fixtures and fittings
10 - 20% reducing balance
Computers
25 - 33% reducing balance
Motor vehicles
25% reducing balance

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.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
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.

1.11
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.

1.12
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.

SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 19 -
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.

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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.

SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 20 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
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.

1.14
Taxation

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

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.

SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 21 -
1.15
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.

1.16
Retirement benefits

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

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.18
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.

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.

SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Recoverability of receivables

Management reviews the carrying amount of trade receivables on a regular basis to identify items where recoverability may be in doubt. The timing and quantum of any impairment of receivables is a matter of management judgement.

Determining and reassessing residual values and useful economic lives of tangible assets

The group depreciates tangible assets over their estimated useful lives. In determining appropriate useful lives of assets, the directors have considered historic performance as well as future expectations for factors such as expected usage of the asset, physical wear and tear, technical and commercial obsolescence and legal limitations of the usage of the asset, such as lease terms. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

 

Judgement is applied to determine the residual values for tangible assets. When determining the residual values, the directors have assessed the amount that the group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. At each reporting date, the directors have also assessed whether there have been any indicators, such as a change in how the asset is used, significant unexpected wear and tear and changes in market prices, which suggest previous estimates may differ from current expectations. Where this is the case, the residual value and/or useful life is amended and accounted for on a prospective basis.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of services
17,903,395
16,538,614
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
17,903,395
16,538,614
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
149
1,505
Fees payable to the group's auditor for the audit of the group's financial statements
12,500
7,800
Depreciation of owned tangible fixed assets
(1,498,741)
576,200
Depreciation of tangible fixed assets held under finance leases
2,190,146
1,846,892
Loss/(profit) on disposal of tangible fixed assets
268,579
(13,523)
Amortisation of intangible assets
12,667
-
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
5
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
136,551
21,944
Interest on invoice finance arrangements
60,028
-
0
Other interest on financial liabilities
23,500
2,096
Interest on finance leases and hire purchase contracts
792,216
520,726
Other interest
389
448
Total finance costs
1,012,684
545,214
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
Selling and distribution
145
116
3
3
Management
3
3
-
-
Total
148
119
3
3

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,485,173
4,998,815
-
0
-
0
Social security costs
801,379
653,439
-
-
Pension costs
93,369
93,586
-
0
-
0
6,379,921
5,745,840
-
0
-
0
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
182,903
280,151
Deferred tax
Origination and reversal of timing differences
661,371
718,249
Total tax charge
844,274
998,400
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
7
Taxation
(Continued)
- 24 -

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
1,067,513
2,199,681
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
266,878
417,939
Tax effect of expenses that are not deductible in determining taxable profit
-
0
(422)
Effect of change in corporation tax rate
-
30,394
Permanent capital allowances in excess of depreciation
80,139
(6,018)
Deferred tax
497,257
556,507
Taxation charge
844,274
998,400

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
595,995
661,140
8
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
310,512
613,991
Interim paid
115,493
393,703
426,005
1,007,694
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
9
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 September 2023
-
0
Additions
380,000
At 31 August 2024
380,000
Amortisation and impairment
At 1 September 2023
-
0
Amortisation charged for the year
12,667
At 31 August 2024
12,667
Carrying amount
At 31 August 2024
367,333
At 31 August 2023
-
0
Company
Goodwill
£
Cost
At 1 September 2023
-
0
Additions
380,000
At 31 August 2024
380,000
Amortisation and impairment
At 1 September 2023
-
0
Amortisation charged for the year
12,667
At 31 August 2024
12,667
Carrying amount
At 31 August 2024
367,333
At 31 August 2023
-
0
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -
10
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 September 2023
1,055,404
627,787
29,767,188
63,166
48,934
153,904
31,716,383
Additions
-
0
74,981
5,229,629
6,818
4,796
-
0
5,316,224
Business combinations
-
0
-
0
4,795,094
-
0
2,934
186,646
4,984,674
Disposals
-
0
-
0
(2,639,500)
-
0
-
0
-
0
(2,639,500)
Revaluation
-
0
-
0
341,387
-
0
-
0
-
0
341,387
At 31 August 2024
1,055,404
702,768
37,493,798
69,984
56,664
340,550
39,719,168
Depreciation and impairment
At 1 September 2023
-
0
-
0
2,763,759
30,385
31,823
43,685
2,869,652
Depreciation charged in the year
-
0
-
0
2,830,505
3,699
5,401
41,946
2,881,551
Eliminated in respect of disposals
-
0
-
0
(555,921)
-
0
-
0
-
0
(555,921)
Revaluation
-
0
-
0
(449,906)
-
0
-
0
-
0
(449,906)
At 31 August 2024
-
0
-
0
4,588,437
34,084
37,224
85,631
4,745,376
Carrying amount
At 31 August 2024
1,055,404
702,768
32,905,361
35,900
19,440
254,919
34,973,792
At 31 August 2023
1,055,404
627,787
27,003,429
32,781
17,111
110,219
28,846,731
The company had no tangible fixed assets at 31 August 2024 or 31 August 2023.
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
10
Tangible fixed assets
(Continued)
- 27 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
21,110,153
20,231,498
-
0
-
0

The fair value of the tangible assets is based on directors valuation as at the 31 August 2024. It is deemed that the director has sufficient knowledge of current market values of similar assets.

11
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 September 2023
-
1,706,658
Revaluation
-
500,000
At 31 August 2024
-
2,206,658

The directors have considered the value of the investment property as at the year end and have reflected what they believe to be the increase in the value of the property.

12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
2,469,076
11,201
Investments in associates
14
275,580
203,234
50
50
275,580
203,234
2,469,126
11,251
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
12
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 September 2023
203,234
Additions
72,346
At 31 August 2024
275,580
Carrying amount
At 31 August 2024
275,580
At 31 August 2023
203,234
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 September 2023
11,251
Additions
2,457,875
At 31 August 2024
2,469,126
Carrying amount
At 31 August 2024
2,469,126
At 31 August 2023
11,251
13
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
SNC Commercials Limited
Unit 8 Sankey Valley Industrial Estate, Earlestown, Newton-Le-Willows, Merseyside, WA12 8DN
Ordinary
100.00
S N C Plant Services Limited
Unit 8 Sankey Valley Industrial Estate, Earlestown, Newton-Le-Willows, Merseyside, WA12 8DN
Ordinary
100.00
Pier (UK) Limited
Unit 8 Sankey Valley Industrial Estate, Earlestown, Newton-Le-Willows, Merseyside, WA12 8DN
Ordinary
100.00
Safe Excavation Limited
Yard 4 Nuralite Industrial Centre, Canal Road, Higham, Rochester, England, ME3 7JA
Ordinary
100.00
Galvac Limited
Kennedy House, 5 Cheltenham Street, Salford, Greater Manchester, M6 6WY
Ordinary
100.00
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
13
Subsidiaries
(Continued)
- 29 -

All of the subsidiaries are included in the consolidated accounts.

 

The following trading subsidiaries have not been audited in accordance with Section 479A of the Companies Act.

 

Company            Company Number

SNC Commercials Limited        08119919

S N C Plant Services Limited    04267125

Pier (UK) Limited            04277266

Safe Excavation Limited        10435314

Galvac Limited 11538813

14
Associates

Details of associates at 31 August 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Central Southern Excavations Limited
Compound A3 Youngs Industrial Estate, Paices Hill, Aldermaston, Berkshire, England, RG7 4PW
Ordinary
50
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
96,743
5,080
-
0
-
0
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,207,467
2,691,208
-
0
-
0
Amounts owed by group undertakings
-
-
1,742
77,363
Amounts owed by undertakings in which the company has a participating interest
50,775
126,000
41,000
126,000
Other debtors
906,244
813,339
155,742
105,410
Prepayments and accrued income
153,159
131,899
16
250
5,317,645
3,762,446
198,500
309,023
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 30 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
1,156,552
47,827
48,552
47,827
Obligations under finance leases
20
4,149,232
3,627,997
-
0
-
0
Trade creditors
627,287
293,863
-
0
184
Amounts owed to group undertakings
-
0
-
0
2,570,215
230,586
Corporation tax payable
703,617
679,344
-
0
9,547
Other taxation and social security
190,524
213,006
-
-
Other creditors
204,098
228,328
50
50
Accruals and deferred income
55,190
24,103
15,510
14,262
7,086,500
5,114,468
2,634,327
302,456
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
3,731,228
307,729
284,561
307,729
Obligations under finance leases
20
8,292,299
7,496,607
-
0
-
0
12,023,527
7,804,336
284,561
307,729
Amounts included above which fall due after five years are as follows:
Payable by instalments
90,352
116,422
90,352
116,422
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
4,887,780
355,556
333,113
355,556
Payable within one year
1,156,552
47,827
48,552
47,827
Payable after one year
3,731,228
307,729
284,561
307,729
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
19
Loans and overdrafts
(Continued)
- 31 -

Included within bank loans is £333,113 (2023: £355,556) in respect of a loan that is secured by a fixed charge on the property of the group. The loan is repayable by monthly instalments of £3,065 and interest is payable at 2.5% above the banks base rate.

 

Included within bank loans is £168,000 (2023: £nil) which is repayable by monthly instalments and interest is payable at 0.1% above the banks base rate.

 

Included within bank loans is £4,386,667 (2023: £nil) which is repayable by monthly instalments and interest is payable at 2.2% above the banks base rate.

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
4,149,232
3,627,997
-
0
-
0
In two to five years
8,292,299
7,496,607
-
0
-
0
12,441,531
11,124,604
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
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
82,208
1,803,840
Revaluations
4,998,637
2,407,315
5,080,845
4,211,155
Liabilities
Liabilities
2024
2023
Company
£
£
Investment property
256,742
161,742
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
21
Deferred taxation
(Continued)
- 32 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 September 2023
4,211,155
161,742
Charge to profit or loss
774,690
-
Other
95,000
95,000
Liability at 31 August 2024
5,080,845
256,742
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
93,369
93,586

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.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
84
84
84
84
B Ordinary shares of £1 each
16
16
16
16
100
100
100
100
SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 33 -
24
Acquisition of a business

On 18 April 2024 the group acquired 100% percent of the issued capital of Galvac Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
4,972,118
-
4,972,118
Inventories
91,663
-
91,663
Trade and other receivables
340,998
-
340,998
Cash and cash equivalents
126,458
-
126,458
Borrowings
(425,000)
-
(425,000)
Obligations under finance leases
(2,259,655)
-
(2,259,655)
Trade and other payables
(130,297)
-
(130,297)
Tax liabilities
(210,907)
-
(210,907)
Deferred tax
(61,628)
-
(61,628)
Total identifiable net assets
2,443,750
-
2,443,750
Goodwill
380,000
Total consideration
2,823,750
The consideration was satisfied by:
£
Cash
2,823,750
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,400,663
Loss after tax
(267,260)
25
Controlling party

The controlling party is Mr S Quinn by virtue of his 100% shareholding in the company.

SNC HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 34 -
26
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
223,239
1,201,281
Adjustments for:
Share of results of associates and joint ventures
(72,346)
(95,872)
Taxation charged
844,274
998,400
Finance costs
1,012,684
545,214
Loss/(gain) on disposal of tangible fixed assets
268,579
(13,523)
Amortisation and impairment of intangible assets
12,667
-
Depreciation and impairment of tangible fixed assets
2,881,551
2,423,092
Movements in working capital:
(Increase)/decrease in debtors
(1,214,201)
4,928
Increase in creditors
944,002
687,279
Cash generated from operations
4,900,449
5,750,799
27
Analysis of changes in net debt - group
1 September 2023
Cash flows
New finance leases
31 August 2024
£
£
£
£
Cash at bank and in hand
1,186,618
(519,171)
-
667,447
Borrowings excluding overdrafts
(355,556)
(4,532,224)
-
(4,887,780)
Obligations under finance leases
(11,124,604)
3,822,558
(5,139,485)
(12,441,531)
(10,293,542)
(1,228,837)
(5,139,485)
(16,661,864)
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