Registration number:
Norman Emerson Group Limited
for the Period from 1 January 2024 to 30 September 2024
Norman Emerson Group Limited
Contents
|
Company Information |
|
|
Strategic Report |
|
|
Directors' Report |
|
|
Statement of Directors' Responsibilities |
|
|
Independent Auditor's Report |
|
|
Profit and Loss Account |
|
|
Statement of Comprehensive Income |
|
|
Balance Sheet |
|
|
Statement of Changes in Equity |
|
|
Statement of Cash Flows |
|
|
Notes to the Financial Statements |
Norman Emerson Group Limited
Company Information
|
Directors |
Mr Seamus McKeague Mr Gerard McKeague Mr Patrick McKeague |
|
Registered office |
|
|
Auditors |
|
Norman Emerson Group Limited
Strategic Report for the Period from 1 January 2024 to 30 September 2024
The directors present their strategic report for the period from 1 January 2024 to 30 September 2024.
Principal activity
The principal activity of the company is extraction, processing and distribution of sand and related products.
Fair review of the business
In June 2024, the company was acquired by Creagh Concrete Products Limited. Creagh Concrete Products Limited have provided financial support alongside refinanced bank borrowings to initially reduce the company's financial liabilities and to provide a strong platform for returning to profitibilty and future growth.
Subsequent to acquisition, the company has also undertaken a robust restructuring process to streamline the business operations and ensure the business’s core trading activities return to profitability. This restructure included the key acquisition of a new sand dredger after the reporting period which will ensure continuity of raw materials, ensuring that production and sales targets are met. The planning process continues regarding the Hortensia, however this is no longer critical to the company's sand dredging operations.
The directors are confident that the business can return to profitability in the next financial year.
The company's key financial and other performance indicators during the period were as follows:
|
Financial KPIs |
Unit |
2024 |
2023 |
|
Turnover |
£000s |
7,881 |
9,539 |
|
Gross profit |
£000s |
910 |
1,270 |
|
Gross profit margin |
% |
12 |
13 |
|
Operating profit/(loss) |
£000s |
111 |
(66) |
|
Profit/(loss) before tax |
£000s |
(144) |
(365) |
Principal risks and uncertainties
The principal risks and uncertainties faced by the group relate to possible adverse changes in the economic environment, including a decline in the overall activity, actions of competitors which may decrease the company's revenues or margins, high fuel prices, incurring bad debt from customers and inclement weather.
Annual forecasts are prepared and variances against these forecasts are measured on a monthly basis to ensure their effects can be accurately estimated and appropriate action taken.
Approved and authorised by the
|
......................................... |
Norman Emerson Group Limited
Directors' Report for the Period from 1 January 2024 to 30 September 2024
The directors present their report and the financial statements for the period from 1 January 2024 to 30 September 2024.
Directors of the company
The directors who held office during the period were as follows:
Financial instruments
Objectives and policies
The company's operations expose it to a variety of financial risks that include price, credit, foreign exchange risk, interest rate risk and liquidity risk and cash flow risk. The company has in place a risk management programme that seeks to limit adverse effects on its financial performance.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk
The company is exposed to certain commodity price risks as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.
Credit risk
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board.
Foreign exchange risk
The company has its principal operations in the United Kingdom and Ireland and therefore fluctuations in currency exchange rates may affect reported operating results and financial position. The company is exposed to some foreign exchange risk in the normal course of its business, however the costs of continually managing exposure to foreign exchange rate variances is deemed to exceed any potential benefits.
Interest rate risk
The company is exposed to interest rate movements on its bank loans with variable interest rates. These are monitored by the directors.
Liquidity and cash flow risk
The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for its operations and planned expansions.
Norman Emerson Group Limited
Directors' Report for the Period from 1 January 2024 to 30 September 2024 (continued)
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
|
......................................... |
Norman Emerson Group Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
|
• |
select suitable accounting policies and apply them consistently; |
|
• |
make judgements and accounting estimates that are reasonable and prudent; |
|
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
|
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Norman Emerson Group Limited
Independent Auditor's Report to the Members of Norman Emerson Group Limited
Opinion
We have audited the financial statements of Norman Emerson Group Limited (the 'company') for the period from 1 January 2024 to 30 September 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the period then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Norman Emerson Group Limited
Independent Auditor's Report to the Members of Norman Emerson Group Limited (continued)
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
|
• |
the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
|
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
|
• |
We made enquiries of management to understand how the company is complying with its legal and regulatory obligations. |
|
• |
We evaluated the susceptibility of the financial statements to material misstatement and discussed with management the areas where we believed risk of fraud may be higher and what procedures are in place to prevent or detect fraud or non-compliance. |
|
• |
We reviewed manual journal entries for any unusual postings. |
|
• |
We performed tests in areas where significant accounting estimates and judgements are made to assess their reasonableness. |
Norman Emerson Group Limited
Independent Auditor's Report to the Members of Norman Emerson Group Limited (continued)
|
There are inherent limitations in the audit procedures described above. The further removed any non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Furthermore, the risk of material misstatement due to fraud is higher than the risk of material misstatement due to error, as fraud may involve deliberate concealment. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Belfast
BT9 6BS
Norman Emerson Group Limited
Profit and Loss Account for the Period from 1 January 2024 to 30 September 2024
|
Note |
9-months ended |
Year ended |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Distribution costs |
( |
( |
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit/(loss) |
|
( |
|
|
Interest payable and similar expenses |
( |
( |
|
|
Loss before tax |
( |
( |
|
|
Taxation |
|
|
|
|
Profit/(loss) for the financial period |
|
( |
The above results were derived from continuing operations.
The company has no recognised gains or losses for the period other than the results above.
Norman Emerson Group Limited
Statement of Comprehensive Income for the Period from 1 January 2024 to 30 September 2024
|
9-months ended |
Year ended |
|
|
Profit/(loss) for the period |
|
( |
|
Deficit on property, plant and equipment revaluation |
- |
( |
|
Deferred tax related to items recognised as items of other comprehensive income |
- |
|
|
- |
(89,928) |
|
|
Total comprehensive income for the period |
|
( |
Norman Emerson Group Limited
(Registration number: NI007919)
Balance Sheet as at 30 September 2024
|
Note |
30 September |
31 December |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Investment property |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
- |
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Revaluation reserve |
|
|
|
|
Non-distributable reserve |
|
|
|
|
Profit and loss account |
|
|
|
|
Total equity |
|
|
Approved and authorised by the
|
......................................... |
Norman Emerson Group Limited
Statement of Changes in Equity for the Period from 1 January 2024 to 30 September 2024
|
Share capital |
Revaluation reserve |
Non-distributable reserve |
Retained earnings |
Total |
|
|
At 1 January 2024 |
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
|
|
|
Transfers |
- |
167,674 |
- |
(167,674) |
- |
|
At 30 September 2024 |
|
|
|
|
|
|
Share capital |
Revaluation reserve |
Non-distributable reserve |
Retained earnings |
Total |
|
|
At 1 January 2023 |
|
|
|
|
|
|
Loss for the period |
- |
- |
- |
( |
( |
|
Other comprehensive income |
- |
( |
- |
- |
( |
|
Total comprehensive income |
- |
( |
- |
( |
( |
|
Dividends |
- |
- |
- |
( |
( |
|
Transfers |
- |
(25,487) |
14,578 |
10,909 |
- |
|
At 31 December 2023 |
200,005 |
2,179,311 |
36,067 |
579,318 |
2,994,701 |
Norman Emerson Group Limited
Statement of Cash Flows for the Period from 1 January 2024 to 30 September 2024
|
Note |
9-months ended |
Year ended |
|
|
Cash flows from operating activities |
|||
|
Profit/(loss) for the period |
|
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Changes in fair value of investment property |
- |
( |
|
|
Loss on disposal of tangible assets |
|
|
|
|
Finance costs |
|
|
|
|
Income tax expense |
( |
( |
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease in stocks |
|
|
|
|
Increase in trade debtors |
( |
( |
|
|
(Increase)/decrease in other debtors |
(89,028) |
20,115 |
|
|
Increase in trade creditors |
|
|
|
|
Increase in other creditors |
1,165,997 |
53,378 |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
- |
|
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
(Decrease)/increase in utilisation of invoice discounting facility |
(66,320) |
260,069 |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Proceeds from other borrowing draw downs |
- |
|
|
|
Repayment of other borrowing |
( |
- |
|
|
Proceeds from finance lease draw downs |
60,000 |
377,798 |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
- |
( |
|
|
Net cash flows from financing activities |
( |
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 January |
( |
( |
|
|
Cash and cash equivalents at 30 September |
57,329 |
(250,002) |
|
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024
|
General information |
The company is a private company limited by share capital, incorporated in the United Kingdom.
The address of its registered office is:
These financial statements were authorised for issue by the
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
2 |
Accounting policies (continued) |
Going concern
The company’s business activities and its financial position are described in Strategic Report.
The company made a loss of £143,512 before tax for the 9 month period (loss for the year ended 31 December 2023 - £364,941). During the year the company was acquired by Creagh Concrete Products Limited. Subsequent to the acquisition, the company has gone through a cost saving review and certain operational decisions have been made in order to return the company to profitability within the near future.
At the year end the company had net assets of £2,994,701 (31 December 2023 - £3,319,486) and net current liabilities of £2,750,075 (31 December 2023 - £2,452,157).
The company continues to review its financial position to ensure there are sufficient resources and access to working capital facilities in order to meet current and potential future financial demands.
Taking into account the acquisition by Creagh Concrete Products Limited with the financial support in place, alongside restructuring measures implemented, the directors believe the company is able to manage its business risks and continue to trade ongoing contracts with customers and suppliers. The acquisition of the new sand dredger also provides long-term security of raw materials.
In the preparation of its financial projections the Directors recognise that the current economic conditions globally have a negative impact on business activity and confidence, however they note that demand within the company’s market continues to be strong and its sales order book is robust.
After making enquiries, the directors are confident that the company has adequate resources in place, with sufficient headroom for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and Financial statements.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
2 |
Accounting policies (continued) |
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Freehold land and buildings |
Not depreciated on the basis that residual value is expected to be no less than net book value |
|
Plant and machinery |
10-25% reducing balance and 5% straight line |
|
Motor vehicles |
10-25% reducing balance |
|
Fixtures and fittings |
20% reducing balance |
|
Sand barges |
6.67% straight line |
Investment property
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
2 |
Accounting policies (continued) |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
2 |
Accounting policies (continued) |
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
Judgements and key sources of estimation uncertainty |
In the application of the company'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. These 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 revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:
Useful economic life of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Inventory provision
The company considers the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.
Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
|
Turnover |
The analysis of the company's turnover for the period from continuing operations is as follows:
|
9-months ended |
Year ended |
|
|
Sale of goods |
|
|
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
Other operating income |
The analysis of the company's other operating income for the period is as follows:
|
9-months ended |
Year ended |
|
|
Miscellaneous other operating income |
|
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the period is as follows:
|
9-months ended |
Year ended |
|
|
Loss on disposal of tangible assets |
( |
( |
|
Operating profit/(loss) |
Arrived at after charging/(crediting)
|
9-months ended |
Year ended |
|
|
Depreciation expense |
|
|
|
Loss on disposal of property, plant and equipment |
|
|
|
Interest payable and similar expenses |
|
9-months ended |
Year ended |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
|
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
9-months ended |
Year ended |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Other short-term employee benefits |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:
|
9-months ended |
Year ended |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
|
9-months ended |
Year ended |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
87,651 |
258,526 |
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
10 |
Directors' remuneration (continued) |
During the period the number of directors who were receiving benefits and share incentives was as follows:
|
9-months ended |
Year ended |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
9-months ended |
Year ended |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
9-months ended |
Year ended |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
( |
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
12 |
Taxation (continued) |
The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
9-months ended |
Year ended |
|
|
Loss before tax |
( |
( |
|
Corporation tax at standard rate |
( |
( |
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
( |
|
|
Tax increase from effect of unrelieved tax losses carried forward |
|
|
|
Deferred tax credit from unrecognised tax loss or credit |
( |
( |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
(4,704) |
|
Total tax credit |
( |
( |
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
12 |
Taxation (continued) |
Deferred tax
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Accelerated tax depreciation |
- |
|
|
Revaluation of property, plant and equipment |
- |
|
|
Revaluation of investment property |
- |
|
|
Tax losses |
|
- |
|
|
|
|
2023 |
Asset |
Liability |
|
Accelerated tax depreciation |
- |
|
|
Revaluation of property, plant and equipment |
- |
|
|
Revaluation of investment property |
- |
|
|
Tax losses |
|
- |
|
|
|
Tax relating to items recognised in other comprehensive income or equity
|
9-months ended |
Year ended |
|
|
Deferred tax related to items recognised as items of other comprehensive income |
- |
( |
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
Tangible assets |
|
Freehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Motor vehicles |
Sand barges |
Total |
|
|
Cost or valuation |
||||||
|
At 1 January 2024 |
|
|
|
|
|
|
|
Additions |
- |
|
|
|
|
|
|
Disposals |
- |
- |
- |
( |
- |
( |
|
At 30 September 2024 |
|
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 January 2024 |
- |
|
|
|
|
|
|
Charge for the period |
- |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
- |
( |
|
At 30 September 2024 |
- |
|
|
|
|
|
|
Carrying amount |
||||||
|
At 30 September 2024 |
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
Included within the net book value of land and buildings above is £4,490,000 (2023 - £4,490,000) in respect of freehold land and buildings.
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
13 |
Tangible assets (continued) |
Revaluation
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
30 September |
31 December |
|
|
Plant and machinery |
278,724 |
302,353 |
|
Motor vehicles |
379,329 |
398,466 |
|
658,053 |
700,819 |
|
Investment properties |
|
30 September |
|
|
At 1 January |
|
|
At 30 September |
|
The company's investment property was revalued by independent external valuers Osborne King on 27 November 2023 on an open market basis.
|
Investments |
|
30 September |
31 December |
|
|
Investments in subsidiaries |
|
|
|
Investments in joint ventures |
|
|
|
|
|
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
15 |
Investments (continued) |
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 January 2024 |
|
|
At 30 September 2024 |
|
|
Carrying amount |
|
|
At 30 September 2024 |
|
|
At 31 December 2023 |
|
|
Joint ventures |
£ |
|
Cost |
|
|
At 1 January 2024 |
|
|
At 30 September 2024 |
|
|
Carrying amount |
|
|
At 30 September 2024 |
|
|
At 31 December 2023 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
38 Blackpark Road, Toomebridge, Co. Antrim N Ireland |
|
|
|
|
Joint ventures |
||||
|
|
Murray House, Murray Street, Belfast, Co. Antrim |
50 C Ordinary shares |
|
|
|
N Ireland |
||||
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
15 |
Investments (continued) |
|
Subsidiary undertakings |
|
Emerson Sand & Gravel Limited
Emerson Sand & Gravel Limited is a |
|
Joint ventures |
|
Lough Neagh Sand Traders Limited The principal activity of Lough Neagh Sand Traders Limited is management consultancy. |
|
Stocks |
|
30 September |
31 December |
|
|
Other inventories |
|
|
|
Debtors |
|
30 September |
31 December |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
|
Cash and cash equivalents |
|
30 September |
31 December |
|
|
Cash at bank |
|
- |
|
Bank overdrafts |
- |
( |
|
Cash and cash equivalents in statement of cash flows |
57,329 |
(250,002) |
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
Creditors |
|
Note |
30 September |
31 December |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to related parties |
|
- |
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other payables |
|
|
|
|
Accrued expenses |
|
|
|
|
Loans from directors |
- |
45,847 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 30 September 2024 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
Share capital |
Allotted, called up and fully paid shares
|
30 September |
31 December |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
200,005 |
|
200,005 |
|
Loans and borrowings |
Non-current loans and borrowings
|
30 September |
31 December |
|
|
Bank borrowings |
|
|
|
Hire purchase contracts |
|
|
|
|
|
|
|
30 September |
31 December |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
|
|
|
Bank overdrafts |
- |
|
|
Hire purchase contracts |
|
|
|
Invoice discounting |
1,200,545 |
1,266,865 |
|
|
|
|
Bank borrowings
|
|
|
|
The company has provided a debenture over the assets and undertakings of the company, a first legal charge over the company's land and property assets and a letter of subordination over the repayment of any directors loans and/or third party loans.
Norman Emerson Group Limited
Notes to the Financial Statements for the Period from 1 January 2024 to 30 September 2024 (continued)
|
23 |
Loans and borrowings (continued) |
The invoice discounting facility is subject to a nominal interest rate of 3.25% above the base rate on its variable outstanding balance.
Amounts advanced under the invoice discounting arrangements are secured by an equitable assignment of book debts.
|
Dividends |
Interim dividends paid
|
30 September |
31 December |
|||
|
Interim dividend of £Nil (2023 - £ |
- |
|
||
|
Related party transactions |
Graeme and Geoffrey Emerson T/A Emerson Brothers
Graeme and Geoffrey Emerson T/A Emerson Brothers are considered to be a related party as they were shareholders in Norman Emerson Group Limited during part of the financial period. Sales transactions with Emerson Brothers include service charges and sales of £410 (2023 - £4,591). Emerson Brothers charged the company £78,950 (2023 - £90,099) for plant repairs and maintenance during the period in which they were a related party. Emerson Brothers also operate as owner drivers and charged the company £61,905 (2023 - £711,077) during the period in which they were a related party for haulage services. At 30 September 2024 the aggregate balance owed to Emerson Brothers was £339,861 (2023 - £335,855 ).
Lough Neagh Sand Traders Limited
The company owns a 25% holding of Lough Neagh Sand Traders Limited giving it significant influence over the entity. Sales during the period totalled £13,875 (2023 - £28,840) and relate to a contribution paid by Lough Neagh Sand Traders Limited towards Conor Jordan's management of the company on behalf of all the sand traders around the Lough. Lough Neagh Sand Traders Limited charged the company £Nil (2023 - £47,548) during the period for the purchase of sand from other sand traders around the Lough.