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

NMSB made key strategic investments to secure its long-term operational and financial health. The company secured a new aggregate reserve at Ashley Manor Farm with Hampshire County Council and commenced the application process for an extension to the North of its existing Hurn quarry with BCP Council. These actions significantly strengthen the company's consented reserves and development pipeline, ensuring a robust operational presence and future revenue streams for the foreseeable future.

The downwards trend in activity of the aggregates market in the UK noted towards the end of the previous year continued throughout 2024. Coupled with production problems due to the high levels of rainfall, the results were considerably below budget and the prior year.

However, we observed growth within the Merchant division, with considerable market share still to be captured in the Poole area. The diversity of the business and its customer base remains a core strength. The long-term outlook is positive, supported by measures already in place to restore profitability.

The company continues to manage its finances predominantly through the cash generated in the normal course of trading, together with routine control of working capital. We are further supported by our banks through a mixture of finance agreements and loans.

The recent surge in inflation presents a significant risk to the company's profitability moving forward. Our ability to fully pass on increased costs to customers is limited by competitive market dynamics. While we actively manage pricing to preserve our gross profit margin, this remains a key area of focus.

There is also a significant risk of a UK recession, driven by the cost-of-living crisis and higher interest rates, that could pose a challenge, particularly to house-building activity, a key sector for our operations. However, despite the difficulty in quantifying these macroeconomic risks, the company's diverse financial position and asset base, complemented by strong shareholder support, fortify its resilience.

The Directors are confident that these strengths, along with the acquisition of prestigious high-profile customers in 2024 and a sustained customer retention rate exceeding 95%, combined with our proactive cost-efficiency strategies, are sufficient to maintain operational steadiness until market conditions become more favourable.

We remain fully focused on our commitment to the environment and the importance of developing a sustainable business which holds a high reputational value to the community and its stakeholders. 2024 saw the business receive two awards: the prestigious Sustainable Green Investment Award at the Hampshire Business Awards, recognising our leadership in sustainability. This milestone reflects our innovative green construction practices and commitment to creating a sustainable future. The second win was for the New Forest Business Partnership’s Contribution to the Community Award, recognising our ongoing commitment to community engagement and corporate social responsibility in the New Forest.

The company continues to keep its employees informed on matters impacting them through the quarterly in person ‘business updates’, via newsletters, notice boards and toolbox talks. We run a yearly employee engagement survey that leads the programme for specific employee training and business improvement.

During the year the company has continued to raise awareness of mental health issues and promote employee access to support services offered under the employee assistance programmes.

We place paramount importance on the health and safety of our employees. A key initiative this year was the successful launch of our new Health, Safety, Quality, and Environmental (HSQE) management system. This digital platform empowers all personnel by providing an intuitive interface for reporting incidents or observations and grants instant access to critical processes and risk assessments, ultimately strengthening our commitment to a safe and sustainable working environment.

On behalf of the board

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

The principal activities of the company continued to be that of extraction, processing and distribution of aggregates, production and sale of bagged aggregates, sale of bulk fill materials and recycled products, landfill operators, operating cartaway from site service, supply of limestone and decorative products, supply of horticultural products, operators of a skip and waste disposal business, operators of ready mixed concrete plants and operation of builders merchant depots.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company has indemnified one or more directors of New Milton Sand & Ballast Limited against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision was in force during the year.

1. Why We Have This Policy

This policy outlines NMSB’s approach to identifying, assessing, and managing financial risks to ensure long-term financial stability, compliance with regulatory requirements, and alignment with the company’s strategic objectives.

This policy applies to all NMSB operations and subsidiaries. It is reviewed annually by the Finance Director and approved by the Board of Directors.

2. How We Manage Risk

The Board of Directors holds overall responsibility for establishing and overseeing the risk management framework. The Finance Director is responsible for implementing this framework, monitoring risk exposures, and reporting to the Board on a regular basis.

Risk management at NMSB involves:

- Identifying key financial risks.

- Assessing their potential impact and likelihood.

- Implementing mitigation measures and controls.

- Monitoring and reporting on risk exposure and performance.

Quarterly risk assessments are conducted, and findings are reviewed by the Board of Directors.

3. Dealing with Customer Payments

What it means: Credit risk arises from trade receivables and cash held with financial institutions.

4. Making Sure We Have Enough Cash

What it means: Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due.

Objective: Maintain sufficient liquidity to meet operational and capital requirements.

Policies:

- Prepare rolling cash flow forecasts covering a minimum of 12 months.

- Maintain access to committed banking and credit facilities.

- Monitor working capital ratios and covenant compliance.

- Establish a minimum liquidity buffer policy.

Monitoring: Weekly cash flow tracking and quarterly liquidity review by the Finance Director and Board of Directors.

5. Handling Interest and Currency Changes

What it means: Market risk includes exposure to changes in interest rates and foreign exchange rates.

Objective: Limit exposure to fluctuations in market variables that may affect profitability.

Policies:

- Use fixed-rate borrowings where feasible.

- Perform annual interest rate sensitivity analysis.

- Evaluate hedging instruments where cost-effective.

Monitoring: Annual review of debt portfolio and market exposure.

6. Managing Fuel and Material Costs

What it means: The company is exposed to fluctuations in the cost of fuel, transport, and raw materials.

Objective: Stabilise input costs and protect profit margins.

Policies:

- Negotiate long-term supply contracts with key suppliers.

- Monitor market trends and adjust pricing strategies as needed.

- Consider forward purchase agreements where beneficial.

Monitoring: Quarterly review of supplier costs and fuel price trends.

7. Managing Our Money and Investments

What it means: The company manages its capital to ensure it can continue as a going concern while maximising shareholder value.

Objective: Maintain an optimal capital structure that supports strategic growth.

Policies:

- Monitor gearing ratios and ensure alignment with target levels.

- Balance equity and debt financing to fund operations and major projects.

- Review dividend policies in line with liquidity and investment needs.

Monitoring: Quarterly financial performance reviews and annual capital adequacy assessment.

8. Using Financial Tools

What it means: The company uses basic financial instruments including trade receivables, payables, and bank loans.

Policies:

- Financial instruments are initially measured at transaction price.

- Subsequent measurement is at amortised cost using the effective interest method.

- The company does not engage in speculative trading of financial instruments.

9. Who Does What

- Board of Directors: Oversight and approval of the financial risk management framework. Review of risk management reports and control effectiveness.

- Finance Director: Implementation, monitoring, and reporting of financial risks. Independent review of controls and policy adherence.

- Operational Managers: Compliance with approved policies and procedures.

10. Keeping Track and Reporting

- Key risk indicators (KRIs) are tracked monthly and reported to management.

- Significant exposures and breaches are escalated to the Board immediately.

- Annual reports to the Board summarise overall risk performance and mitigation effectiveness.

11. Reviewing This Policy

This policy is reviewed annually by the Finance Director and approved by the Board of Directors. Any significant changes are communicated to all relevant personnel.

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of New Milton Sand And Ballast Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its loss 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 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 our 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.

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 directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• 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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential 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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

New Milton Sand And Ballast Limited is a private company limited by shares incorporated in England and Wales. The registered office is Caird Avenue, New Milton, Hampshire, United Kingdom, BH25 5PX.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Drew Group Holdings Limited. These consolidated financial statements are available from its registered office, Caird Avenue, New Milton, Hampshire, United Kingdom, BH25 5PX.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

The company is a subsidiary of Drew Group Holdings Limited and has entered into guarantees in relation to certain group borrowings and liabilities. It also trades with and has balances due to and from group undertakings.true

In assessing whether the financial statements should be prepared on a going concern basis, the directors have considered the outlook of the group and company and in so doing have given consideration to the current and future operating results and cashflow requirements of the business. The directors continue to assess the group’s cashflow requirements and expect its current and future banking and asset finance facilities to be sufficient to provide the group with the resources necessary.

Trading conditions continue to be challenging, and the directors have put in place a number of cost saving and business improvement measures that they expect to lead to improved trading conditions moving forward. In addition, there has been a considerable investment in new plant since the year end which will improve capacity capabilities and margins in key areas.

The directors are confident that that the value of the land and building portfolio is significantly in excess of the borrowings of the group and that they will be able to further strengthen the short term cashflow position of the group by identifying cash generation opportunities from non operating assets as required.

Capital expenditure continues to be managed carefully and asset finance obtained as far as possible for essential capital expenditure.

The group has continued to clear down loan liabilities in line with the banking agreements and several loans were cleared in the year or in early 2025. The directors are working with its existing and new lenders to agree new funding for the group and working closely with them to agree on the most appropriate future funding model for the business. Through disposal of excess property and other assets that are not used in the day to day operations the directors expect to significantly reduce its borrowings towards the end of 2025 and throughout 2026. In addition shareholders have also recently introduced new funds to the business.

Therefore, the directors believe that based on budgeted future trading, the continued support of its lenders, support from its shareholders and known commitments, the group has adequate resources to meet its liabilities as they fall due and the ability to operate as a going concern for a period of at least 12 months from the date of approval of these financial statements.

The directors therefore consider it appropriate to continue to adopt the going concern basis in the preparation of these financial statements.

Turnover, which is stated net of value added tax, represents the amounts derived from the provision of goods and services which fall within the company's continuing ordinary activities and is derived entirely within the UK.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Turnover is recognised when goods are despatched, skips are delivered or waste is delivered or collected for landfill.

Goodwill, being the amount paid in connection with the acquisition of businesses in 2009 and 2011 less the fair value of assets acquired, is being amortised evenly over estimated useful lives of between 5 to 20 years.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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

Interests in subsidiaries, and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

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

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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other debtors, amounts owed by group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation 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.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

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

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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

These are reviewed annually having regard to the outcomes following disposals and changes in specifications and manufacturing improvements to assets purchased.

The provision is based on the volume of land required to be restored to its original state following its use by the company. This provision includes the appropriate charges from the Environment Agency.

Trade debtors are reviewed monthly and a provision made where appropriate based on payment history and third party credit rating information.

Stock valuation

Stocks of loose aggregates are valued based on tonnage estimated by third party surveyors at the year end and cost of production including labour and overhead costs.    Costs of production are reviewed on an annual basis and adjusted accordingly.  Provision is made for slow moving or obsolete stock based on historic and future sales.

An analysis of the company's other revenue is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 1).

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

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

Freehold land and buildings with a carrying amount of £904,723 (2023 - £986,904) have been pledged to secure borrowings of the company.

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

Registered office addresses (all UK unless otherwise indicated):

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

Bank loans and overdrafts include amounts drawn down under an invoice discounting facility secured on outstanding trade debtors, and, amounts outstanding under agreed overdrafts secured under a fixed and floating charge over all assets of the company.

Obligations under finance leases are secured against the assets to which they relate.

Obligations under finance leases are secured against the assets to which they relate.

The long-term loans are secured by fixed charges over the company's assets.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The lease terms are from 3 to 7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

New Milton Sand & Ballast Limited hold the finance lease liability for five assets recognised in subsidiary companies. The aggregate amount of this liability is £221,935.

The provision for land restoration has been recognised to cover the future costs of restoring land to its original condition after commercial use. The liability is not expected to crystallise until 12 months after the balance sheet date.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £34,194 (2023: £30,575) were payable to the scheme at the end of the year and are included in creditors.

All share classes rank pari passu in all respects, but constitute separate classes of share.

The company is a member of a VAT group and is jointly and severally liable for the group liability, of £274,443 (2023: £334,197) at the year end.

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

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The following amounts were recognised as an expense in the period in respect of bad and doubtful debts due from related parties:

Summary of transactions with subsidiaries

Sales and purchases between subsidiaries are made at normal market prices. Outstanding balances with entities are unsecured, interest free and cash settlement, with exception of the loan, is expected within the normal credit terms.

The company has not provided or benefitted from any guarantees for any subsidiaries receivables or payables.

Summary of transactions with joint ventures

Sales and purchases between associates are made at normal market prices. Outstanding balances with entities are unsecured, interest free and cash settlement, with exception of the loan, is expected within the normal credit terms.

The company has not provided or benefitted from any guarantees for any associates receivables or payables.

Group transactions

The company has taken advantage of the exemption not to disclose transactions entered into between two or more members of the group as long as any subsidiary which is a party to the transaction is wholly owned by such a member.

The immediate and ultimate parent company for which consolidated financial statements are prepared is Drew Group Holdings Limited, incorporated in England and Wales. The registered office is Caird Avenue, New Milton, Hampshire, Caird Avenue, New Milton, BH25 5PX.