| Premier Road Surfacing Limited |
| Strategic Report |
|
| The directors present their strategic report on the company for the year ended 31 March 2025. |
|
| Review of the business |
The company's principle activity is that of civil engineering.
The director looks to identify opportunities for growth within the business with a view to increase its business with current customers and to add further quality customers to its customer base. The company will continue to prioritise service and quality of goods to its current customers. |
|
| Results and performance |
The results of the company, as set out on page 7, show a profit on ordinary activity before tax of £297,781 (2024: £1,537,419).
The company is based in the midlands and is strategically placed to take on contracts nationwide. |
|
| Key Performance Indicators ("KPI's") |
Operating profit has decreased to £370,535 (4%) (2024: £1,611,756 (11%)).
Profit on ordinary activities before taxation has decreased to £297,781 (3%) (2024: £1,537,419 (11%)). The decrease is attributable to certain customers struggling in the current climate and therefore the amount of work available has decreased.
The profit for the year, after taxation, amounted to £225,780 (2024: £1,073,849).
Ordinary dividends paid during the year amounted to £175,000 (2024: £1,000,000).
Return on capital employed has decreased to 17% (2024: 89%). Return on capital employed is calculated as profit before interest and tax, divided by capital employed, which is taken to be total assets less current liabilities, less investments, less cash, plus overdrafts and other short term borrowings. |
|
| Business environment |
| The company operates in a competitive market against companies of various sizes. The market does change and continues to be highly competitive and therefore it is necessary to ensure the company continues to evolve and meet the requirements of the customers. |
|
| Principle risks and uncertainties |
The company has identified its principle risks and uncertainties as strong competition for sales combined with availability of workers.
The company maintains a robust position by ensuring quality of work. The company works closely with its work force and many have worked for the company for a number of years.
It is necessary to ensure the company continues to evolve and provide a quality service to the customer.
The company has a strong balance sheet, a high quality customer base and has continued to trade strongly. It is anticipated that the company will continue as a going concern. |
|
| This report was approved by the board on 18 September 2025 and signed on its behalf. |
|
| M Poulson |
| Director |
|
|
| The comparative figures have not been audited as the company did not require an audit in the prior year. |
|
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
|
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
|
| Other information |
| The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
| We have nothing to report in this regard. |
|
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| ● |
the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| ● |
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
|
| Matters on which we are required to report by exception |
| Premier Road Surfacing Limited |
| Statement of Cash Flows |
| for the year ended 31 March 2025 |
|
| Notes |
|
2025 |
|
2024 |
| £ |
£ |
| Operating activities |
| Profit for the financial year |
225,780 |
|
1,073,849 |
|
| Adjustments for: |
| (Profit)/loss on sale of fixed assets |
(5,778) |
|
5,799 |
| Interest receivable |
(2,210) |
|
(1,868) |
| Interest payable |
80,741 |
|
70,406 |
| Tax on profit on ordinary activities |
72,001 |
|
463,570 |
| Depreciation |
295,533 |
|
277,291 |
| Decrease in stocks |
- |
|
3,000 |
| Decrease/(increase) in debtors |
343,788 |
|
(233,541) |
| Decrease in creditors |
(162,334) |
|
(59,703) |
|
|
|
847,521 |
|
1,598,803 |
|
| Interest received |
2,210 |
|
1,868 |
| Interest paid |
|
|
(5,698) |
|
- |
| Interest element of finance lease payments |
(75,043) |
|
(70,406) |
| Corporation tax paid |
(75,718) |
|
(38,555) |
|
| Cash generated by operating activities |
693,272 |
|
1,491,710 |
|
|
|
|
|
|
| Investing activities |
| Payments to acquire tangible fixed assets |
(10,985) |
|
(50,034) |
| Proceeds from sale of tangible fixed assets |
109,151 |
|
192 |
|
| Cash generated by/(used in) investing activities |
98,166 |
|
(49,842) |
|
|
|
|
|
|
| Financing activities |
| Equity dividends paid |
(175,000) |
|
(1,000,000) |
| Capital element of finance lease payments |
(621,424) |
|
(469,862) |
|
| Cash used in financing activities |
(796,424) |
|
(1,469,862) |
|
|
|
|
|
|
| Net cash used |
| Cash generated by operating activities |
693,272 |
|
1,491,710 |
| Cash generated by/(used in) investing activities |
98,166 |
|
(49,842) |
| Cash used in financing activities |
(796,424) |
|
(1,469,862) |
|
| Net cash used |
(4,986) |
|
(27,994) |
|
| Cash and cash equivalents at 1 April |
307,427 |
|
335,421 |
| Cash and cash equivalents at 31 March |
302,441 |
|
307,427 |
|
|
|
|
|
|
| Cash and cash equivalents comprise: |
| Cash at bank |
302,441 |
|
307,427 |
|
|
|
|
|
|
|
|
|
Stocks |
|
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. 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. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
| 2 |
Critical accounting estimates and judgements |
|
|
The preparation of accounts requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. No key judgements or estimates have been identified in preparation of these financial statements. |
|
|
| 3 |
Analysis of turnover |
2025 |
|
2024 |
| £ |
£ |
|
|
Sale of goods and services |
10,515,013 |
|
14,046,779 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
10,515,013 |
|
14,046,779 |
|
|
|
|
|
|
|
|
|
|
| 4 |
Operating profit |
2025 |
|
2024 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
28,220 |
|
47,858 |
|
Depreciation of assets held under finance leases and hire purchase contracts |
|
267,313 |
|
229,433 |
|
Auditors' remuneration for audit services |
10,000 |
|
- |
|
Auditors' remuneration for other services |
4,300 |
|
- |
|
Carrying amount of stock sold |
4,414,971 |
|
6,516,139 |
|
|
|
|
|
|
|
|
|
|
| 5 |
Directors' emoluments |
2025 |
|
2024 |
| £ |
£ |
|
|
Emoluments |
246,507 |
|
216,961 |
|
Company contributions to defined contribution pension plans |
3,693 |
|
2,643 |
|
|
|
|
|
|
250,200 |
|
219,604 |
|
|
|
|
|
|
|
|
|
|
|
Highest paid director: |
|
Emoluments |
118,173 |
|
101,288 |
|
Company contributions to defined contribution pension plans |
1,321 |
|
1,321 |
|
|
|
|
|
|
119,494 |
|
102,609 |
|
|
|
|
|
|
|
|
|
|
|
Number of directors to whom retirement benefits accrued: |
2025 |
|
2024 |
| Number |
Number |
|
|
Defined contribution plans |
3 |
|
3 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Staff costs |
2025 |
|
2024 |
| £ |
£ |
|
|
Wages and salaries |
2,632,790 |
|
2,633,054 |
|
Social security costs |
291,232 |
|
296,037 |
|
Other pension costs |
52,742 |
|
52,080 |
|
|
|
|
|
|
2,976,764 |
|
2,981,171 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
11 |
|
9 |
|
Manufacturing |
36 |
|
37 |
|
|
|
|
|
|
47 |
|
46 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Interest payable |
2025 |
|
2024 |
| £ |
£ |
|
|
Other loans |
5,698 |
|
- |
|
Finance charges payable under finance leases and hire purchase contracts |
|
75,043 |
|
70,406 |
|
|
|
|
|
|
80,741 |
|
70,406 |
|
|
|
|
|
|
|
|
|
|
| 8 |
Taxation |
2025 |
|
2024 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
36,547 |
|
354,023 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
35,454 |
|
109,547 |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
72,001 |
|
463,570 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
Profit on ordinary activities before tax |
297,781 |
|
1,537,419 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
25% |
|
| £ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
74,445 |
|
384,355 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
(2,445) |
|
2,120 |
|
Capital allowances for period in excess of depreciation |
(35,453) |
|
(32,452) |
|
|
Current tax charge for period |
36,547 |
|
354,023 |
|
|
|
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
There are no significant factors that are expected to affect the future tax charge. |
|
|
| 9 |
Tangible fixed assets |
|
|
|
|
Plant, machinery and vehicles |
|
Fixtures, fittings, tools and equipment |
|
Total |
|
|
|
|
At cost |
|
At cost |
| £ |
£ |
£ |
|
Cost or valuation |
|
At 1 April 2024 |
2,795,178 |
|
53,071 |
|
2,848,249 |
|
Additions |
555,810 |
|
1,785 |
|
557,595 |
|
Disposals |
(425,197) |
|
(7,611) |
|
(432,808) |
|
At 31 March 2025 |
2,925,791 |
|
47,245 |
|
2,973,036 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2024 |
1,400,321 |
|
33,193 |
|
1,433,514 |
|
Charge for the year |
292,384 |
|
3,149 |
|
295,533 |
|
On disposals |
(324,037) |
|
(5,398) |
|
(329,435) |
|
At 31 March 2025 |
1,368,668 |
|
30,944 |
|
1,399,612 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2025 |
1,557,123 |
|
16,301 |
|
1,573,424 |
|
At 31 March 2024 |
1,394,857 |
|
19,878 |
|
1,414,735 |
|
|
|
|
|
|
|
|
|
|
|
| 10 |
Stocks |
2025 |
|
2024 |
| £ |
£ |
|
|
Finished goods and goods for resale |
500 |
|
500 |
|
|
|
|
|
|
|
|
|
|
| 11 |
Debtors |
2025 |
|
2024 |
| £ |
£ |
|
|
Trade debtors |
1,821,845 |
|
1,906,672 |
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
1,742,307 |
|
1,918,124 |
|
Other debtors |
169,698 |
|
88,785 |
|
Prepayments and accrued income |
44,511 |
|
208,568 |
|
|
|
|
|
|
3,778,361 |
|
4,122,149 |
|
|
|
|
|
|
|
|
|
|
| 12 |
Creditors: amounts falling due within one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Obligations under finance lease and hire purchase contracts |
358,720 |
|
481,293 |
|
Trade creditors |
1,213,362 |
|
1,350,841 |
|
Corporation tax |
314,852 |
|
354,023 |
|
Other taxes and social security costs |
67,512 |
|
86,385 |
|
Other creditors |
3,004 |
|
5,604 |
|
Accruals and deferred income |
111,100 |
|
114,482 |
|
|
|
|
|
|
2,068,550 |
|
2,392,628 |
|
|
|
|
|
|
|
|
|
|
| 13 |
Creditors: amounts falling due after one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Obligations under finance lease and hire purchase contracts |
531,829 |
|
484,070 |
|
|
|
|
|
|
|
|
|
|
| 14 |
Obligations under finance leases and hire purchase |
2025 |
|
2024 |
|
contracts |
£ |
£ |
|
|
Amounts payable: |
|
Within one year |
358,720 |
|
481,293 |
|
Within two to five years |
531,829 |
|
484,070 |
|
|
|
|
|
|
890,549 |
|
965,363 |
|
|
|
|
|
|
|
|
|
|
Assets held under hire purchase agreements are secured on the assets concerned. |
|
|
| 15 |
Deferred taxation |
2025 |
|
2024 |
| £ |
£ |
|
|
Accelerated capital allowances |
389,137 |
|
353,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
|
At 1 April |
353,683 |
|
244,136 |
|
Charged to the profit and loss account |
35,454 |
|
109,547 |
|
|
At 31 March |
389,137 |
|
353,683 |
|
|
|
|
|
|
|
|
|
|
|
| 16 |
Share capital |
Nominal |
|
2025 |
|
2025 |
|
2024 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
1,000 |
|
1,000 |
|
1,000 |
|
|
|
|
|
|
|
|
|
|
| 17 |
Profit and loss account |
2025 |
|
2024 |
| £ |
£ |
|
|
At 1 April |
|
|
|
2,613,430 |
|
2,539,581 |
|
Profit for the financial year |
225,780 |
|
1,073,849 |
|
Dividends |
(175,000) |
|
(1,000,000) |
|
|
At 31 March |
2,664,210 |
|
2,613,430 |
|
|
|
|
|
|
|
|
|
|
| 18 |
Dividends |
2025 |
|
2024 |
| £ |
£ |
|
|
Dividends on ordinary shares (note 17) |
175,000 |
|
1,000,000 |
|
|
|
|
|
|
|
|
|
|
|
| 19 |
Defined benefit pension plans |
|
|
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund. Contributions payable by the company for the year amounted to £52,742 (2024: £52,080). |
|
|
| 20 |
Related party transactions |
2025 |
|
2024 |
| £ |
£ |
|
Entities with control, joint control or significant influence |
|
Dividends paid in the year amounted to £175,000 (2024: £1,000,000). |
|
Amounts due from entities with control |
1,742,307 |
|
1,918,124 |
|
|
|
|
|
|
|
|
|
|
Other related parties |
|
During the year an advance of £200,000 was made to a company controlled by one of the directors. The loan is interest free and repayable on demand. |
|
Amounts due from other related parties |
65,241 |
|
- |
|
|
|
|
|
|
|
|
|
|
| 21 |
Controlling party |
|
|
The company is controlled by its parent company, Premier Holdings 2021 Ltd, 5 Sheene Road, Leicester, LE4 1BF. |
|
|
| 22 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
| 23 |
Comparative restatement |
|
|
The comparatives have been restated to reclassify certain figures:
Balance sheet - reclassification of VAT debtor netted against creditors. This has resulted in a £90,609 increase in debtors and creditors.
Profit and loss - Amounts in respect of labour costs have been reclassified as cost of sales resulting in an increase of £262,578 in cost of sales and a decrease of £262,578 in administrative expenses.
There is no impact on the profit and loss account for the year ended 31 March 2025 in respect of either of the above reclassifications. |
|
|
| 24 |
Legal form of entity and country of incorporation |
|
|
Premier Road Surfacing Limited is a private company limited by shares and incorporated in England. |
|
|
| 25 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Granite House |
|
Granite Close |
|
Enderby |
|
Leicester |
|
LE19 4EA |