REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
FOR |
PHOENIX BRICKWORK (UK) LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
FOR |
PHOENIX BRICKWORK (UK) LIMITED |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
PHOENIX BRICKWORK (UK) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Fleming Court |
Leigh Road |
Eastleigh |
Southampton |
Hampshire |
SO50 9PD |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
The directors present their strategic report for the year ended 30th September 2024. |
REVIEW OF BUSINESS |
Phoenix Brickwork (UK) Limited is a leading masonry, drywall and steel framing system company based in the centre of the United Kingdom. The company regularly wins work in association with the main construction companies within the United Kingdom with contracts up to £5m in value spanning across multiple years with a diverse portfolio across commercial, refurbishment and residential. Phoenix Brickwork (UK) Limited have undertaken large scale projects for public use such as a prison and hospitals. |
During this financial year their strategy has been to secure fewer, but larger projects with main contractors in a favoured geographical area. Many of which Phoenix Brickwork (UK) Limited are on their approved or preferred supply chain. The aim was to maintain the number of live projects which required fewer overhead costs, therefore increasing the overall margin. |
This can be seen in the consistent Turnover of £18.1m (2023: £18.4m, 2024: £18.1m) in the business along with an improvement in the profit before tax of the business of £353K or 31% (2023: £1.1m, 2024: £1.4m). |
A review on the location of projects undertaken has seen a reduction in direct costs (cost of sale). This is because Phoenix Brickwork (UK) Limited were able to have improved control of direct labour costs, reduction in agency labour needed and less travel expenses incurred. |
Cost of sales have fallen from 2023 to 2024 by 1% or £125k (2023: £14.2m, 2023: £14.1m). The cost of sales as a percentage of turnover for 2024 was 77%, this mirrors 2023 which was 77%. |
There was a decrease in administrative expenditure during 2024 by 12% or £387,499 (2023: £3.1m, 2024: £2.7m) due to the number of administrative employees decreasing, efficient overhead cost control and a review on expenditure. |
Phoenix Brickwork (UK) Limited showcased strong resilience during this period. The management swiftly adapted to the changing circumstances and implemented stringent health and safety measures to protect our employees. |
The company remained operational with continued profits being achieved by the business by having a strategic plan and the management working closely together to meet the needs of the business. |
We have maintained close communication with our clients and suppliers, ensuring minimal disruption to our production and distribution processes. This adaptability and resilience enabled us to meet the ongoing demand for the business. |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Cashflow availability in the business |
Increased inflationary pressure on costs for the business. Due to costs associated with projects being key to the actual profitability of the business, the inflation rate in the UK is deemed to be a key risk to the business. To mitigate this risk, the business looks to avoid locking into costs in contracts which are likely to result in losses being made. |
The company has also reviewed procurement procedures to produce KPIs on the measure of credit terms offered by suppliers to maximise cashflow, as well as how IT can aid the back office workings of the business. |
There has also been constant reporting of liquidity ratios and WIP days. These are targeted to ensure continual improvement in the company's cash position. |
The business has also ensured capital expenditure and borrowings is for essential purposes only, reducing its debt liability. |
Recently it has been reported externally of various larger construction companies entering into Administration. Phoenix Brickwork (UK) Limited has taken out a credit insurance policy for its debtors year, to offer the company some assurances around debtors due. New internal procedures for monitoring, assessing and authorising extended credit terms have also been implemented during the financial year. |
Project management risks |
The company keeps strong controls in place in regard to spending, having a procurement team who regularly assess costs for the business. Additionally, there is a company ethos in place to incentivise the employees to keep control of costs associated with projects along with assessing non-essential spend. |
Improvements to Commercial Reporting around live projects ensures that the company is proactive in monitoring real time information to react quickly as needed, with information relayed to the relevant management personnel. |
Environmental risks |
Phoenix Brickwork (UK) Limited assigns experienced employees who oversee the key departments of the business. This is completed so that costs are accurately judged, and pricing of contracts are appropriate for the business to continue to make profits along with ensuring that payment terms support the cashflow requirements of the business. |
Organisational risk |
The business maintains a high level of standards, exceeding those required by law in the United Kingdom and has many accreditations. The business ensures that standards are met by suppliers that comfort can be obtained that the businesses are working towards common goals. |
The business seeks to ensure that employees in the business are rewarded for the performance of the company as a whole. There are regular reviews of the business structure along with ensuring that there are incentives in place to keep key personnel in the business. |
The business also invests heavily in operative and staff training to ensure that they are compliant in legislation, maintain high safety standards and continual development for its staff. |
GROWTH AND EXPANSION |
Throughout the financial year, Phoenix Brickwork (UK) Limited has slightly decreased in turnover but achieved a higher profit before tax through securing larger contracts and increased reputation within the industry. |
Their ability to deliver high-quality products within specified timelines played a crucial role in winning these contracts. |
Phoenix Brickwork (UK) Limited strengthened their position as a trusted supplier within the construction industry to position the business for further growth. There are no immediate plans to change the business model in the short term. |
Strengthened Management Team recognising the need for a more streamlined and efficient organisational structure, Phoenix Brickwork (UK) Limited invested in enhancing its management team. |
Phoenix Brickwork (UK) Limited's management team brought diverse expertise and experience, contributing to improved operational efficiency, enhanced customer service, and effective resource allocation. Their strategic vision and leadership have been instrumental in driving the company's profit and positioning them for long-term success. |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
FINANCIAL PERFORMANCE |
The financial performance of Phoenix Brickwork (UK) Limited remained strong during the year. Despite the challenging economic climate, their profit before tax increased by £353,417 (31%) to £1.4m from financial year 2023. |
This profit growth can be attributed to securing larger contracts and expanding our customer base. |
Furthermore, our profitability improved during the year due to focus on costs and internal controls to ensure that profitability and cashflow of the business are maintained into the future. |
Key performance indicators 2024 to 2023 turnover dropped by 1%. Gross profit margin was consistent at 23%; |
ROCE 44.82%. |
Gross Profit decreased vaguely by 3%. This shows because of a decrease in turnover by 1%. Profit before tax margin (PBT) margin increased by 31%. Return On Capital Employed (ROCE) is a positive position at 44.82%. |
FUTURE OUTLOOK |
Looking ahead, Phoenix Brickwork (UK) Limited is well-positioned for continued success. They will leverage their strong market presence, skilled workforce, and technological advancements to capture new opportunities, and assess the current portfolio of the business to ensure that positive projects are taken on by the business. |
Strategic focus will be on sustainable growth, innovation, and customer-centricity. They will continue to invest in further resources for the business to ensure that there is scope along with good quality resources being available. |
RESEARCH AND DEVELOPMENT ACTIVITIES |
Phoenix Brickwork (UK) Limited has been developing internal IT systems by ways of a bespoke App that allows efficient and accurate record keeping in real time information. We are further developing the app to communicate with existing software systems. This has been a long term project that is ever evolving with our own coding being written. This is always well received by internal users and clients. |
They also begin researching into fire barriers and protection for the Brickwork trades with testing now completed. |
The company also embarked upon research and development within the Drywall's division with fire testing carried out jointly with a client to achieve warranties. The issue that had arose was due to a product that couldn't be used in adverse temperatures, but no other approved product was available. |
ON BEHALF OF THE BOARD: |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
The directors present their report with the financial statements of the company for the year ended 30th September 2024. |
DIVIDENDS |
The total distribution of dividends for the year ended 30th September 2024 will be £335,249. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st October 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
Items required under Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 to be disclosed in the Report of the Directors are set out in the Strategic Report in accordance with section 414C(11) of the Companies Act 2006. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Langdowns DFK Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PHOENIX BRICKWORK (UK) LIMITED |
Opinion |
We have audited the financial statements of Phoenix Brickwork (UK) Limited (the 'company') for the year ended 30th September 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30th September 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PHOENIX BRICKWORK (UK) LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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: |
As part of our audit planning procedures we identify the significant laws and regulations applicable to the company based upon our knowledge of the company, the industry in which it operates and from making enquiries with management. We consider those laws and regulations where non-compliance may have a material effect on the financial statements and those which have a direct impact on the financial statements. We identified that the most significant laws and regulations applicable during the year were compliance with the requirements of the Companies Act 2006, compliance with Health and Safety Regulations, ISO certification and compliance via ISOcomply. |
Audit procedures performed by the engagement team in relation to laws and regulations include making enquiries of management as to any known or suspected instances of non-compliance, maintaining awareness throughout the course of the audit as to any indications of instances of non-compliance and undertaking a review of the disclosures in the financial statements to supporting information and to disclosure checklists. |
We also consider areas that are at a higher risk of causing material misstatement in the financial statements due to irregularities, including those resulting from fraud and how such fraud may occur. We discuss with senior management the key controls in place to mitigate the risk of fraud and enquire as to whether they are aware of, or suspect, any fraudulent activities having taken place. |
Throughout the audit, we maintain an appropriate level of professional scepticism when provided with information and explanations. We consider the appropriateness of significant accounting journals that were processed during the year, assess the reasonableness of any significant accounting estimates and consider whether there were any indications of bias by management during the year that represents a risk of material misstatement due to fraud. We also carry out analytical procedures to identify any unusual or unexpected variances to expectations as these may be an indication of management over-ride or management bias. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PHOENIX BRICKWORK (UK) LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
Fleming Court |
Leigh Road |
Eastleigh |
Southampton |
Hampshire |
SO50 9PD |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 5 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,339,910 | 1,108,428 |
Other operating income |
OPERATING PROFIT |
Interest receivable and similar income |
1,708,369 | 1,363,356 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION | 8 |
Tax on profit | 9 | 658,397 | 80,562 |
PROFIT FOR THE FINANCIAL YEAR |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
BALANCE SHEET |
30TH SEPTEMBER 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors: amounts falling due within one year | 13 |
Debtors: amounts falling due after more than one year |
13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share-based payments | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
Called up |
share | Retained | Share-based | Total |
capital | earnings | payments | equity |
£ | £ | £ | £ |
Balance at 1st October 2022 |
Changes in equity |
Issue of share capital | - | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Equity settled share-based payments |
- |
- |
Balance at 30th September 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Equity settled share-based payments |
- |
- |
Balance at 30th September 2024 |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
1. | STATUTORY INFORMATION |
Phoenix Brickwork (UK) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.48(a)(iii), 11.48(a)(iv) and 11.48(b); |
• | the requirements of paragraphs 12.26; |
• | the requirement of paragraph 33.7. |
Turnover and profit recognition |
Turnover represents amounts due on contracts completed in the year adjusted for turnover attributable to long term work in progress, excluding value added tax and trade discounts. |
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with |
reasonable certainty. The profit included is calculated to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value based on the percentage deemed complete by the assessment of the quantity surveyor for both Phoenix Brickwork (UK) Limited and the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen. |
Cumulative turnover is compared with total payments on account. If turnover exceeds payments on account, an amount recoverable on contract is recognized and separately disclosed within debtors. |
If payments on account are greater than turnover to date, the excess is classified within creditors. |
Turnover from a contract to provide services is recognised when all of the following conditions are satisfied: |
- the amount of turnover can be measured reliably; |
- it is probable that the group will receive the consideration due under the contract; |
- the stage of completion of the contract at the end of the reporting period can be measured reliably; |
and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change in the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are |
recognised within costs of sales or administrative expenses, dependant upon it's nature. |
Investments in subsidiaries |
Investment in subsidiaries are initially valued at cost and reviewed annually for signs of impairment. If an |
impairment loss is identified, this is recognised immediately in the statement of income and retained earnings |
with the value of investments being reduced accordingly. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Basic financial instruments in debtors and creditors with no stated interest rate, and receivable or payable within one year are recorded at transactional price. Any losses arising from impairment are recognised in the income statement in other administrant expenses. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
3. | ACCOUNTING POLICIES - continued |
Lease and hire purchase |
Assets that are held by the company under leases which transfer substantially all the risk and rewards of |
ownership are classified as being held under hire purchase or finance leases. Leases which do not transfer |
substantially all the risk and rewards of ownership are classified as operating leases. |
Operating lease payments are recognised as an expense on a straight-line basis over the lease term. Assets |
obtained under hire purchase contracts and finance leases are capitalized as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such arrangements are included in creditors net of the finance charge allocated to future periods. |
The finance element of the rental payment is charged to the statement of income and retained earnings so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
Pension costs and other post-retirement benefits |
The company contributes to a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension |
plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid, the company has no further payment obligations. |
The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. |
Share based payments |
The company has entered into a share based payment arrangement in respect of equities issued. Share based payments are accounted for in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. |
Share based payments are recognised in the Financial Statements on the basis of the fair value of the shares at the balance sheet date in consideration with the hurdle value and the fair value of the shares at the grant date. |
Operating lease agreements |
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. |
4. | SIGNIFICANT JUDGEMENT AND ESTIMATES |
The company accounting policies, including the assumptions and judgements underlying them, are disclosed in the notes to the financial statements. These policies have been consistently applied in all material aspects and address such matters as revenue recognition, depreciation lives; |
Useful economic life of non-current assets |
The directors have reviewed the assets lives of all fixed asset classes, and have concluded that asset lives are appropriate. |
The actual lives of the assets are assessed annually and may vary depending on a number of factors. In |
re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance |
programmes are taken into account. |
Recognition of profit on long term contracts |
Profit recognition is based on an assessment of the overall profitability forecast on individual contracts. Losses are recognised as soon as they are foreseen. Profits are recognised by the directors when the outcome of the contract can be assessed with reasonable certainty. The profit recognised reflects that part of the total profit currently estimated to arise over the duration of the contract that fairly represents the profit attributable to work performed at the accounting date. |
Leases |
The directors determine whether leases entered into are an operating lease or a finance lease. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the company on a lease by lease basis based on an evaluation of the terms and conditions of the arrangement, and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet. |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
5. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
6. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production staff | 16 | 20 |
Administrative staff | 20 | 22 |
Management staff | 9 | 12 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Loan interest |
Other finance interest |
Hire purchase |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
8. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 545,239 | 563,086 |
Other operating leases | 51,973 | 58,776 |
Depreciation - owned assets | 52,855 | 67,880 |
Depreciation - assets on hire purchase contracts | 228,810 | 225,629 |
(Profit)/loss on disposal of fixed assets | (22,286) | (39,434) |
Auditors' remuneration | 33,000 | 12,500 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Under/(over) provision in |
prior year |
Research and development | ( |
) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit | 658,397 | 80,562 |
UK corporation tax has been charged at 25% . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Research & Development tax credit | ( |
) |
Under provision in prior year |
Share-based payments |
Temporary timing differences | ( |
) | ( |
) |
Group relief | ( |
) | ( |
) |
Deferred tax - timing differences | ( |
) |
Total tax charge | 658,397 | 80,562 |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
9. | TAXATION - continued |
The UK corporation tax rate went from 19% to 25% with effect from 1st April 2023. Therefore, the effective rate of tax for the prior year was 22%. |
The expected reversal of deferred tax liabilities in the succeeding period is £52,040 (2023: £88,258). This is in relation to the deferred tax liability recognised on accelerated capital allowances and other timing differences. |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of 1p each |
Interim | 199,458 | 90,000 |
A1 Ordinary shares of 1p each |
Interim | - | 28,902 |
A2 Ordinary shares of 1p each |
Interim | 72,298 | 31,621 |
A3 Ordinary shares of 1p each |
Interim | 8,955 | 11,861 |
A4 Ordinary shares of 1p each |
Interim | 23,264 | 10,780 |
A5 Ordinary shares of 1p each |
Interim | 28,002 | 8,777 |
A6 Ordinary shares of 1p each |
Interim | 3,272 | 5,780 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1st October 2023 |
Additions |
Disposals | ( |
) |
At 30th September 2024 |
DEPRECIATION |
At 1st October 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 30th September 2024 |
NET BOOK VALUE |
At 30th September 2024 |
At 30th September 2023 |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st October 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 30th September 2024 |
DEPRECIATION |
At 1st October 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30th September 2024 |
NET BOOK VALUE |
At 30th September 2024 |
At 30th September 2023 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1st October 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30th September 2024 |
DEPRECIATION |
At 1st October 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30th September 2024 |
NET BOOK VALUE |
At 30th September 2024 |
At 30th September 2023 |
12. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
Stocks with a value of £5,000 (2023: £5,000) have been pledged as security for liabilities of the |
company. |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
13. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Bad debt provision | (24,343 | ) | (50,894 | ) |
Amounts recoverable on contract |
Other debtors |
Related company loan | 2,657,465 | 2,010,984 |
Tax |
VAT |
Prepayments |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Other loans (see note 16) |
Hire purchase contracts (see note 17) |
Payments on account |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 16) |
Other loans (see note 16) |
Hire purchase contracts (see note 17) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Other loans |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
16. | LOANS - continued |
2024 | 2023 |
£ | £ |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Other loans - 1-2 years | 70,000 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Other loans - 2-5 years |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
In more than five years |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 427,916 | 409,120 |
Bank loans | 363,333 | 632,984 |
Other loans | 312,584 | 721,509 |
Bank loans of £330,000 (2023: £580,207) are secured by way of a debenture, borrowed under the Coronavirus Business Interruption Loan Scheme from the UK Government and a guarantee and debenture given by the group and other related companies. |
Bank loans of £nil (2023: £52,777) are secured over the assets to which they relate. |
Bank loans of £33,333 are secured by way of a personal guarantee given by the director. |
The hire purchase contracts are secured over the assets to which they relate. |
Other loans of £5,625 (2023: £275,404) are secured by way of a personal guarantee given by the director. |
Other loans of £208,333 (2023: £208,333) are secured by way of a debenture, borrowed under the Coronavirus Business Interruption Loan Scheme from the UK Government. |
Other loans of £98,626 (2023: £237,772) are secured over the assets to which they relate. |
19. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 92,553 | 142,035 |
Deferred |
tax |
£ |
Balance at 1st October 2023 |
Credit to Income Statement during year | ( |
) |
Balance at 30th September 2024 |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal value: |
2024 | 2023 |
10,000 | Ordinary | 1p | 100 | 100 |
600 | A1 Ordinary | 1p | 6 | 6 |
350 | A2 Ordinary | 1p | 4 | 4 |
350 | A3 Ordinary | 1p | 4 | 4 |
120 | A4 Ordinary | 1p | 1 | 1 |
120 | A5 Ordinary | 1p | 1 | 1 |
120 | A6 Ordinary | 1p | 1 | 1 |
117 | 117 |
During the previous year, the Ordinary A £1 and Ordinary B £1 shares were redesignated to Ordinary £1 shares. Subsequently, all Ordinary £1 shares were subdivided into Ordinary 1p shares. |
During the previous year, 600 A1 Ordinary shares of 1p each were allotted and fully paid at par value. |
During the previous year, 350 A2 Ordinary shares of 1p each were allotted and fully paid at par value. |
During the previous year, 350 A3 Ordinary shares of 1p each were allotted and fully paid at par value. |
During the previous year, 120 A4 Ordinary shares of 1p each were allotted and fully paid at par value. |
During the previous year, 120 A5 Ordinary shares of 1p each were allotted and fully paid at par value. |
During the previous year, 120 A6 Ordinary shares of 1p each were allotted and fully paid at par value. |
The rights of the shares are as follow: |
Each holder of Ordinary Shares, A1 Shares, A2 Shares, A3 Shares, A4 Shares, A5 Shares and A6 Shares shall be entitled to receive notice of, attend and vote at general meetings of the company. Each share is entitled to one vote in any circumstances. |
Dividends may be declared on one or several classes of shares to the exclusion of any class or classes and dividends at different rates may be declared on the respective classes of shares. |
Upon an Exit Event, the Exit Proceeds shall be applied on the following basis and in the following order of priority: |
Firstly, in paying to the holders of the Ordinary Shares, an aggregate amount up to but not exceeding £800,000, which shall be distributed to the holders of the Ordinary Shares pro rata to the amount paid up on the Ordinary Shares held by each such holder. |
Secondly, in distributing the balance to the holders of the Ordinary Shares, A1 Shares, A2 Shares, A3 Shares, A4 Shares, A5 Shares and A6 Shares pro rata to the amount paid up on those shares held by each such holder. |
21. | RESERVES |
Retained | Share-based |
earnings | payments | Totals |
£ | £ | £ |
At 1st October 2023 | 2,616,407 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Equity settled share-based payments |
- |
56,578 |
56,578 |
At 30th September 2024 | 3,145,249 |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
22. | PENSION COMMITMENTS |
The company contributes to a defined contribution pension scheme for their directors and employees. There were unpaid contributions due at the end of the period in relation to the schemes amounting to £7,473 (2023: £7,776). The amount recognised as an expense in the year was £37,804 (2023: £43,874). |
23. | ULTIMATE PARENT COMPANY |
Phoenix UK Group Limited (formerly known as Phoenix Scaffold (UK) Limited) is regarded by the directors as being the company's ultimate parent company. |
With an effective date of 7th June 2023, Phoenix Brickwork (UK) Limited became a subsidiary of Phoenix UK Group Limited, the ultimate parent company. Since 7th June 2023, Phoenix UK Group Limited has controlled 86% of the voting rights and of the rights to dividends and capital on winding up, in addition to the first £800,000 as per note 20, of Phoenix Brickwork (UK) Limited. Prior to 7th June 2023, the immediate and ultimate parent company was BMH Group Holdings Limited (formerly known as Phoenix UK Group Limited). |
The parent undertaking of the smallest and largest group within which this company belongs and for which group accounts are prepared is Phoenix UK Group Limited, registered at Unit 2 Plymouth Avenue, Brookhill Industrial Estate, Pinxton, Derbyshire, United Kingdom, NG16 6RA. Group accounts will be available from the Registrar of Companies. |
24. | OTHER FINANCIAL COMMITMENTS |
The company has given cross guarantees to banks and other financial institutions for other related companies' debts. The debt guaranteed at 30 September 2024 amounted to £19,742 (2023: £31,117). |
25. | RELATED PARTY DISCLOSURES |
2024 | 2023 |
£ | £ |
Dividends paid | 199,458 | 90,000 |
Amount due to related party |
2024 | 2023 |
£ | £ |
Dividends paid | 132,519 | 91,941 |
Key management personnel compensation | 262,709 | 362,708 |
Amount due to related party |
2024 | 2023 |
£ | £ |
Provision of services from related party | - | 38,400 |
PHOENIX BRICKWORK (UK) LIMITED (REGISTERED NUMBER: 07380737) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
25. | RELATED PARTY DISCLOSURES - continued |
2024 | 2023 |
£ | £ |
Sales | 751,521 | 6,300 |
Management charges receivable | 322,959 | 71,122 |
Sale of assets | 184,093 | - |
Interest receivable | 9,004 | 7,621 |
Dividends paid | 3,272 | 5,780 |
Management charges payable | 958,000 | 39,419 |
Hire of plant and machinery | 199,905 | 58,969 |
Rental costs | 86,494 | 55,015 |
Motor and travel expenses | 101,654 | 35,466 |
Provision of services from related party | 802,074 | 433,107 |
Amounts due to related party | 1,010,261 | 364,563 |
Amounts due from related party | 3,479,381 | 2,147,392 |
Included within the amount due from other related parties is £78,000 (2023: £102,555) in relation to a loan to the related party which is unsecured, with interest charged at 3.25% above the base rate of Royal Bank of Scotland PLC and is repayable in instalments over the next 5 years (2023: 6 years). |
The other amounts due from and to other related parties are unsecured, interest free and repayable on demand. |
26. | SHARE-BASED PAYMENT TRANSACTIONS |
During the previous year, Ordinary A shares were allotted at par value. The expected future sale price (Good Leaver Price) of the shares is linked to the shareholder being a Good Leaver and therefore the continued provision of services, as well as being subject to a Hurdle Value. The equity settled scheme's grant date is therefore based on the expected exit event date, estimated as being the retirement of the shareholders. |
The value of the equity instruments granted at the balance sheet date is based on the Good Leaver Price at the balance sheet date as defined by the company's Memorandum and Articles of Association, divided by the vesting period, being the expected number of years until the grant date. |