BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Company Registration No. 01671240 (England and Wales)
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
COMPANY INFORMATION
Directors
Mr M D Pilgrim
Mr S A Pilgrim
Company number
01671240
Registered office
Commercial House
New Chester Road
Tranmere
Birkenhead
CH41 9BP
Auditor
DSG Audit
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
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 - 32
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

Principal activities

The principal activity of the company and group continued to be that of a builder's merchant.

Review of the business

The results for the year and the financial position at the year end were considered satisfactory by the directors.

 

As shown in the profit and loss account, turnover in the year has decreased by 5% from £17.5m to £16.6m as at 30 September 2024. Operating profit has decreased from £2.0m to £0.9m and profit after tax has decreased from £1.6m to £0.7m as at 30 September 2024.

 

The balance sheet remains strong with net assets of £7.7m compared to £7.4m in 2023. Cash has also increased from £4.8m to £5.2m by 30 September 2024.

 

See key performance indicators below for further details.

Principal risks and uncertainties

The principal risks and uncertainties facing the company and group are as follows:

 

Business conditions and the general economy

The profitability of the group and company could be adversely affected by a worsening of general economic conditions in the United Kingdom. Factors such as unemployment, interest rates and inflation could significantly affect the sector. Whilst a short term worsening in the economic conditions in the United Kingdom should not significantly adversely impact profitability, a sustained downturn over a number of years would be likely to lead to reduced profit in this area.

 

Liquidity risk

The group and company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group and company has sufficient liquid resources to meet the operating needs of the business.

 

Credit risk

The group and company monitors credit risk closely and considers that its current policies of credit checks meets its objectives. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

 

Competition

Customer demands are changing and competitive pressure is a continuing risk for the group. Given the potential economic volatility in our markets, we are continuously monitoring trading trends and ways in which to improve the management of our working capital.

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Key performance indicators

The directors monitor progress by reference to a number of financial key performance indicators. Performance for the current year, together with comparative data for the previous year, are set out below:

 

(a) Turnover

Turnover in the year was £16.6m (2023: £17.5m) being a 5% decrease in the year.

 

(b) Gross Profit %

This is gross profit expressed as a percentage of turnover. Gross profit % for 2024 was 14.2% (2023: 19.0%). The reduction in gross profit % is driven by material cost rises during the year. This is partially offset by any rebates the group and company receive during the period.

 

(c) Operating profit

The operating profit at 30 September 2024 was £0.9m compared to £2.0m in 2023. The main reason for this is the reduction in gross margin. The directors regularly review materials costs and also look to maintain an appropriate level of overheads.

Future developments

The group and company is focussed on continuing to grow the business both organically and via acquisition, should the right opportunity arise.

On behalf of the board

Mr M D Pilgrim
Director
18 June 2025
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

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

Results and dividends

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

Ordinary dividends were paid amounting to £365,000. 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 M D Pilgrim
Mr S A Pilgrim
Auditor

DSG resigned as auditor on 11 September 2024. DSG Audit were appointed on 11 September 2024 as auditor 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 company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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. It has done so in respect of the company's principal activity, financial risk management policies and future developments.

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 M D Pilgrim
Director
18 June 2025
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 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.

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
- 5 -
Opinion

We have audited the financial statements of Birkenhead Building & Roofing Supplies Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 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 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:

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BIRKENHEAD BUILDING & ROOFING SUPPLIES 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.

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

Discussions were held with, and enquiries made of, management and those charged with governance 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 company.

The following laws and regulations were identified as being of significance to the company:

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 company 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 entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
- 7 -

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 company’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).

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.

Laura Leslie BSc FCA (Senior Statutory Auditor)
For and on behalf of DSG Audit, Statutory Auditor
Chartered Accountants
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
18 June 2025
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
16,637,606
17,455,463
Cost of sales
(14,270,305)
(14,139,126)
Gross profit
2,367,301
3,316,337
Administrative expenses
(1,517,639)
(1,305,302)
Other operating income
4,304
1,304
Operating profit
4
853,966
2,012,339
Interest receivable and similar income
7
133,588
63,412
Interest payable and similar expenses
8
(1,119)
(3,945)
Profit before taxation
986,435
2,071,806
Tax on profit
9
(261,440)
(470,825)
Profit for the financial year
25
724,995
1,600,981
Profit for the financial year is all attributable to the owners of the parent company.
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
£
£
Profit for the year
724,995
1,600,981
Other comprehensive income
-
-
Total comprehensive income for the year
724,995
1,600,981
Total comprehensive income for the year is all attributable to the owners of the parent company.
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
300,094
350,110
Tangible assets
12
456,650
449,741
756,744
799,851
Current assets
Stocks
16
3,108,943
3,289,460
Debtors
17
1,219,298
1,429,230
Cash at bank and in hand
5,159,235
4,814,233
9,487,476
9,532,923
Creditors: amounts falling due within one year
18
(2,402,643)
(2,819,217)
Net current assets
7,084,833
6,713,706
Total assets less current liabilities
7,841,577
7,513,557
Creditors: amounts falling due after more than one year
19
(35,404)
(56,708)
Provisions for liabilities
Deferred tax liability
21
64,910
75,581
(64,910)
(75,581)
Net assets
7,741,263
7,381,268
Capital and reserves
Called up share capital
24
55
55
Capital redemption reserve
25
(1,939,939)
(1,939,939)
Profit and loss reserves
25
9,681,147
9,321,152
Total equity
7,741,263
7,381,268
The financial statements were approved by the board of directors and authorised for issue on 18 June 2025 and are signed on its behalf by:
18 June 2025
Mr M D Pilgrim
Director
Company registration number 01671240 (England and Wales)
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
453,769
442,243
Investments
13
1,588,975
1,588,975
2,042,744
2,031,218
Current assets
Stocks
16
2,418,817
2,722,763
Debtors
17
1,196,943
1,390,168
Cash at bank and in hand
5,075,523
4,720,225
8,691,283
8,833,156
Creditors: amounts falling due within one year
18
(4,426,264)
(4,525,799)
Net current assets
4,265,019
4,307,357
Total assets less current liabilities
6,307,763
6,338,575
Creditors: amounts falling due after more than one year
19
(28,737)
(40,041)
Provisions for liabilities
Deferred tax liability
21
64,190
73,706
(64,190)
(73,706)
Net assets
6,214,836
6,224,828
Capital and reserves
Called up share capital
24
55
55
Capital redemption reserve
25
(1,939,939)
(1,939,939)
Profit and loss reserves
25
8,154,720
8,164,712
Total equity
6,214,836
6,224,828

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 £355,008 (2023 - £1,195,984 profit).

The financial statements were approved by the board of directors and authorised for issue on 18 June 2025 and are signed on its behalf by:
18 June 2025
Mr M D Pilgrim
Director
Company registration number 01671240 (England and Wales)
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
55
(1,939,939)
7,882,171
5,942,287
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
1,600,981
1,600,981
Dividends
10
-
-
(162,000)
(162,000)
Balance at 30 September 2023
55
(1,939,939)
9,321,152
7,381,268
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
724,995
724,995
Dividends
10
-
-
(365,000)
(365,000)
Balance at 30 September 2024
55
(1,939,939)
9,681,147
7,741,263
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
55
(1,939,939)
7,130,728
5,190,844
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
1,195,984
1,195,984
Dividends
10
-
-
(162,000)
(162,000)
Balance at 30 September 2023
55
(1,939,939)
8,164,712
6,224,828
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
355,008
355,008
Dividends
10
-
-
(365,000)
(365,000)
Balance at 30 September 2024
55
(1,939,939)
8,154,720
6,214,836
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
906,315
1,940,184
Interest paid
(1,119)
(3,945)
Income taxes paid
(69,522)
(462,228)
Net cash inflow from operating activities
835,674
1,474,011
Investing activities
Purchase of tangible fixed assets
(134,724)
(272,548)
Interest received
133,588
63,412
Net cash used in investing activities
(1,136)
(209,136)
Financing activities
Repayment of bank loans
(20,000)
(20,000)
Dividends paid to equity shareholders
(365,000)
(162,000)
Net cash used in financing activities
(385,000)
(182,000)
Net increase in cash and cash equivalents
449,538
1,082,875
Cash and cash equivalents at beginning of year
4,709,697
3,626,822
Cash and cash equivalents at end of year
5,159,235
4,709,697
Relating to:
Cash at bank and in hand
5,159,235
4,814,233
Bank overdrafts included in creditors payable within one year
-
(104,536)
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
1
Accounting policies
Company information

Birkenhead Building & Roofing Supplies Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Commercial House, New Chester Road, Tranmere, Birkenhead, CH41 9BP .

 

The group consists of Birkenhead Building & Roofing Supplies Limited and all of its subsidiaries.

 

The principal activity of the company and the group is 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 certain financial instruments 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.

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 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 Birkenhead Building & Roofing Supplies Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 September 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.

1.4
Going concern

The accounts have been prepared on a going concern basis. The group generated a pre-tax profit for the year of £986,435 (2023: £2,071,806) and has net assets of £7,741,263 (2023: £7,381,268) at 30 September 2024, together with cash reserves of £5,159,235.

 

Preparation of accounts on a going concern basis assumes that the group and company will have sufficient funds to continue to pay its debts as and when they fall due and thus continue to trade. The director has taken into account the current economic uncertainty and effects on consumer confidence and they have a reasonable expectation that the group and company have adequate resources to continue in operational existence for the foreseeable future.

 

Thus the directors continue to adopt the going concern basis 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.

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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.

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
2% straight line
Leasehold land and buildings
10% straight line
Leasehold improvements
10% straight line
Plant and equipment
15% straight line
Fixtures and fittings
10% - 15% straight line
Computers
33% straight line
Motor vehicles
10% - 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
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 entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.9
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.

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.

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -

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.

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.

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
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.

Other financial liabilities

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.

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
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.

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

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
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
16,637,606
17,455,463
2024
2023
£
£
Turnover analysed by geographical market
UK
16,637,606
17,455,463
2024
2023
£
£
Other revenue
Interest income
133,588
63,412
Grants received
4,304
1,304
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(4,304)
(1,304)
Depreciation of owned tangible fixed assets
127,815
98,560
Amortisation of intangible assets
50,016
50,016
Operating lease charges
58,750
40,000
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
13,350
11,550
Audit of the financial statements of the company's subsidiaries
4,500
3,950
17,850
15,500
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
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
42
41
36
36

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,179,752
1,075,072
1,023,348
953,398
Social security costs
102,868
89,625
89,727
78,780
Pension costs
502,310
178,623
498,904
175,909
1,784,930
1,343,320
1,611,979
1,208,087
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
111,264
55,432
Other interest income
22,324
7,980
Total income
133,588
63,412
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
1,108
3,231
Other interest
11
714
Total finance costs
1,119
3,945
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
272,110
424,092
Adjustments in respect of prior periods
-
0
(5,616)
Total current tax
272,110
418,476
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
2024
2023
£
£
(Continued)
- 23 -
Deferred tax
Origination and reversal of timing differences
(10,670)
52,349
Total tax charge
261,440
470,825

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
986,435
2,071,806
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
246,609
393,643
Tax effect of expenses that are not deductible in determining taxable profit
25,502
(3,659)
Effect of change in corporation tax rate
-
57,968
Research and development tax credit
-
0
(71,085)
Under/(over) provided in prior years
(1)
(11,167)
Deferred tax movement
(10,670)
105,125
Taxation charge
261,440
470,825
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
365,000
162,000
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
1,080,658
Amortisation and impairment
At 1 October 2023
730,548
Amortisation charged for the year
50,016
At 30 September 2024
780,564
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Intangible fixed assets
(Continued)
- 24 -
Carrying amount
At 30 September 2024
300,094
At 30 September 2023
350,110
Company
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
580,500
Amortisation and impairment
At 1 October 2023 and 30 September 2024
580,500
Carrying amount
At 30 September 2024
-
0
At 30 September 2023
-
0

 

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 October 2023
178,694
88,993
142,788
392,505
18,813
151,872
1,285,888
2,259,553
Additions
-
0
-
0
61,250
68,800
-
0
4,674
-
0
134,724
At 30 September 2024
178,694
88,993
204,038
461,305
18,813
156,546
1,285,888
2,394,277
Depreciation and impairment
At 1 October 2023
44,422
88,992
142,787
255,914
16,337
150,803
1,110,557
1,809,812
Depreciation charged in the year
3,173
-
0
6,125
38,997
1,163
2,594
75,763
127,815
At 30 September 2024
47,595
88,992
148,912
294,911
17,500
153,397
1,186,320
1,937,627
Carrying amount
At 30 September 2024
131,099
1
55,126
166,394
1,313
3,149
99,568
456,650
At 30 September 2023
134,272
1
1
136,591
2,476
1,069
175,331
449,741
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
12
Tangible fixed assets
(Continued)
- 26 -
Company
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 October 2023
178,694
88,993
142,788
392,505
18,594
138,803
1,239,938
2,200,315
Additions
-
0
-
0
61,250
68,800
-
0
4,674
-
0
134,724
At 30 September 2024
178,694
88,993
204,038
461,305
18,594
143,477
1,239,938
2,335,039
Depreciation and impairment
At 1 October 2023
44,422
88,992
142,787
255,914
16,171
137,737
1,072,049
1,758,072
Depreciation charged in the year
3,173
-
0
6,125
38,997
1,141
2,594
71,168
123,198
At 30 September 2024
47,595
88,992
148,912
294,911
17,312
140,331
1,143,217
1,881,270
Carrying amount
At 30 September 2024
131,099
1
55,126
166,394
1,282
3,146
96,721
453,769
At 30 September 2023
134,272
1
1
136,591
2,423
1,066
167,889
442,243
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
12
Tangible fixed assets
(Continued)
- 27 -

Included in cost of land and buildings is freehold land of £20,000 (2023: £20,000) which is not depreciated.

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1,588,975
1,588,975
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
1,588,975
Carrying amount
At 30 September 2024
1,588,975
At 30 September 2023
1,588,975
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Neston Building Supplies Limited
Enterprise House, Bromborough, Wiiral, CH62 4UE
Builder's merchants
Ordinary
100.00
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,179,287
1,195,817
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
2,079,653
2,366,431
n/a
n/a
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
3,108,943
3,289,460
2,418,817
2,722,763
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
953,228
976,614
868,873
872,268
Corporation tax recoverable
10,047
201,044
10,047
201,044
Amounts owed by group undertakings
-
-
63,902
-
Other debtors
226,060
219,203
226,060
219,203
Prepayments and accrued income
29,963
32,369
28,061
97,653
1,219,298
1,429,230
1,196,943
1,390,168
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
20,000
124,536
10,000
114,536
Trade creditors
1,969,998
2,009,899
1,856,570
1,907,817
Amounts owed to group undertakings
-
0
-
0
2,340,437
1,981,291
Corporation tax payable
141,157
129,565
-
0
-
0
Other taxation and social security
193,863
355,251
153,526
334,083
Government grants
22
1,304
1,304
1,304
1,304
Other creditors
6,351
105,753
5,687
105,089
Accruals and deferred income
69,970
92,909
58,740
81,679
2,402,643
2,819,217
4,426,264
4,525,799
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
13,334
33,334
6,667
16,667
Government grants
22
22,070
23,374
22,070
23,374
35,404
56,708
28,737
40,041
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
33,334
53,334
16,667
26,667
Bank overdrafts
-
0
104,536
-
0
104,536
33,334
157,870
16,667
131,203
Payable within one year
20,000
124,536
10,000
114,536
Payable after one year
13,334
33,334
6,667
16,667

 

Each company in the group took a £50k bounce back loan. Monthly repayments are being made of £833.33 on each loan and the loan repayment date is anticipated to be May 2026.

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
64,910
75,581
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
64,190
73,706
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
75,581
73,706
Credit to profit or loss
(10,671)
(9,516)
Liability at 30 September 2024
64,910
64,190

The deferred tax liability set out above is expected to reverse within 12-24 months and relates to accelerated capital allowances that are expected to mature within the same period.

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
22
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
23,374
24,678
23,374
24,678

Deferred income is included in the financial statements as follows:

Current liabilities
1,304
1,304
1,304
1,304
Non-current liabilities
22,070
23,374
22,070
23,374
23,374
24,678
23,374
24,678
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
502,310
178,623

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.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 50p each
110
110
55
55
25
Reserves
Profit and loss reserves

The profit and loss reserve represents cumulative profits or losses net of dividends and other adjustments.

 

Capital redemption reserve

The capital redemption reserve relates to own shares arising in the connection of shares which have been bought or sold by employees and/or directors of the company.

BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
26
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
158,000
214,000
158,000
158,000
Between two and five years
632,000
856,000
632,000
632,000
In over five years
326,500
549,250
326,500
399,917
1,116,500
1,619,250
1,116,500
1,189,917
27
Related party transactions

Birkenhead Building & Roofing Supplies Limited rents its premises from Pilgrim Retirement Death Benefit Scheme; of which the Directors are trustees. Rent incurred in the year was £168,000 (2023: £168,000).

 

Neston Building Supplies Limited rents its premises from a company with common shareholders and directors. Rent incurred in the year was £58,750 (2023: £76,000).

28
Controlling party

There is no one ultimate controlling party.

29
Cash generated from group operations
2024
2023
£
£
Profit after taxation
724,995
1,600,981
Adjustments for:
Taxation charged
261,440
470,825
Finance costs
1,119
3,945
Investment income
(133,588)
(63,412)
Amortisation and impairment of intangible assets
50,016
50,016
Depreciation and impairment of tangible fixed assets
127,815
98,560
Movements in working capital:
Decrease/(increase) in stocks
180,517
(59,327)
Decrease in debtors
18,935
243,757
Decrease in creditors
(323,630)
(403,857)
Decrease in deferred income
(1,304)
(1,304)
Cash generated from operations
906,315
1,940,184
BIRKENHEAD BUILDING & ROOFING SUPPLIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
30
Analysis of changes in net funds - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
4,814,233
345,002
5,159,235
Bank overdrafts
(104,536)
104,536
-
0
4,709,697
449,538
5,159,235
Borrowings excluding overdrafts
(53,334)
20,000
(33,334)
4,656,363
469,538
5,125,901
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