Registration number:
Northcot Brick Ltd
for the Year Ended 30 June 2025
Northcot Brick Ltd
Contents
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Company Information |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account and Statement of Retained Earnings |
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Balance Sheet |
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Notes to the Financial Statements |
Northcot Brick Ltd
Company Information
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Directors |
Mr AJ Parker Mr M J H Hodgskin-Brown |
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Company secretary |
Mrs A Hodgskin-Brown P Keenan |
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Registered office |
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Auditors |
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Northcot Brick Ltd
Directors' Report for the Year Ended 30 June 2025
The directors present their report and the financial statements for the year ended 30 June 2025.
Directors of the company
The directors who held office during the year were as follows:
Going concern
Based on the current market conditions, the level of cash held and the surplus of bricks ready for distribution, the directors believe there is no material uncertainty that may cast doubt on the entity's ability to continue as a going concern.
Principal threats at the present time are rising energy prices and reducing national demand for bricks currently. The strategy of producing bespoke and unique brick products continues to work well.
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. The principal activity of the client is brick manufacture.
Approved and authorised by the
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Northcot Brick Ltd
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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Northcot Brick Ltd
Independent Auditor's Report to the Members of Northcot Brick Ltd
Opinion
We have audited the financial statements of Northcot Brick Ltd (the 'company') for the year ended 30 June 2025, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, 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 June 2025 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 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 accordance with the current standards governing audits we have taken advantage of the Ethical Standards provisions issued by the Financial Reporting Council (FRC), relating to “Ethical Standard - Provisions Available for Small Entities”, with reference to manamgent & familiarity threats.
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.
Northcot Brick Ltd
Independent Auditor's Report to the Members of Northcot Brick Ltd
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Directors' Report has 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 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 3], 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:
Northcot Brick Ltd
Independent Auditor's Report to the Members of Northcot Brick Ltd
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and, considered the risk of acts by management and the directors of the company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with the Companies Act 2006 and the Financial Reporting Standard 102. We made enquiries of the directors of the company to obtain further understanding of risks of non-compliance.
We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:
• agreement of the financial statement disclosures to underlying supporting documentation;
• enquiries of management regarding known or suspected instances of non-compliance with laws and regulations;
• review of minutes of the director and management board meetings throughout the year; and
• obtaining an understanding of the control environment in place to prevent and detect irregularities.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are
inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
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.
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For and on behalf of
Church Street
Swadlincote
Derbyshire
DE11 8LN
Northcot Brick Ltd
Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 June 2025
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Note |
2025 |
2024 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating loss |
( |
( |
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(Loss)/gain on financial assets at fair value through profit and loss |
( |
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Other interest receivable and similar income |
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(33,986) |
796,801 |
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(Loss)/profit before tax |
( |
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Taxation |
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( |
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(Loss)/profit for the financial year |
( |
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Retained earnings brought forward |
6,986,880 |
6,647,472 |
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Retained earnings carried forward |
6,801,129 |
6,986,880 |
Northcot Brick Ltd
(Registration number: 00494330)
Balance Sheet as at 30 June 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Tangible assets |
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Investment property |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
2,000 |
2,000 |
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Other reserves |
1,584,373 |
499,862 |
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Retained earnings |
5,716,618 |
6,986,880 |
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Shareholders' funds |
7,302,991 |
7,488,742 |
Approved and authorised by the
.........................................
Director
Northcot Brick Ltd
Notes to the Financial Statements for the Year Ended 30 June 2025
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General information |
The company is a private company limited by share capital, incorporated in England in the United Kingdom.
The address of its registered office is:
The principal place of business is:
Station Road
Blockley
Moreton-in-Marsh
Gloucestershire
GL56 9LH
These financial statements were authorised for issue by the
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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 UK 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.
The presentation of the financial statements is in pound sterling and is rounded to the nearest £1.
Summary of disclosure exemptions
The company has elected to take up certain exemptions in accordance with disclosure exemptions for group subsidiaries under FRS 102 which include:
1. Preparation of a cash flow statement
2. Preparation of a strategic report
3. Disclosure of intra-group transactions
4. Disclosure of key management remuneration
.
Northcot Brick Ltd
Notes to the Financial Statements for the Year Ended 30 June 2025
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 which is when the bricks are despatched or, with the properties, when the date is reached as agreed in the signed contract;
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 current and 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.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
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.
Tangible assets
Tangible assets are stated in the statement of financial position 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. The company does not capitalise any interest charges incurred during the asset acquisition and installation processes.
Tangible assets are reviewed monthly for potential signs of impairment during the stock take and are also reviewed annually by management. Any impairment is assessed and adjusted as required are made.
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:
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Asset class |
Depreciation method and rate |
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Land and Buildings |
2% on cost of buildings |
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Plant and Machinery |
10% to 25% on cost |
Investment property
This year, the valuation was carried out by the directors based on the rental yield basis used by professional valuers within the group. It is assumed that the basis used by the professional valuer for other group properties is a reasonable formula for the properties in the company.
Northcot Brick Ltd
Notes to the Financial Statements for the Year Ended 30 June 2025
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 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.
Cost calculation for finished goods is based on fixed and variable costs. The cost basis for fixed costs is based on an estimated prodction level that can be achieved at the site, not taking into account external factors which may influence the amount of bricks produed.
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.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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 benefit pension obligation
Contributions to the defined benefit scheme are charged to the Profit and Loss Account at rates determined by an independent actuary so as to spread the cost of pensions over employees' working lives. Contributions to the defined contribution scheme are charged to the Profit and Loss Account as they become payable.
Northcot Brick Ltd
Notes to the Financial Statements for the Year Ended 30 June 2025
Long term employee benefits
Employers are entitled to holiday pay in accordance with current regulations. As the year end and holiday period are different, this gives rise to a holiday pay accrual. This is based upon the proportion of holiday days used per staff member at the year end with an accrual or prepayment being reserved as appropriate in the financial statements.
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Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
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2025 |
2024 |
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Sale of goods |
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
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2025 |
2024 |
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Rental income from investment property |
313,701 |
214,450 |
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Operating loss |
Arrived at after charging/(crediting)
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2025 |
2024 |
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Depreciation expense |
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Other interest receivable and similar income |
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2025 |
2024 |
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Interest income on bank deposits |
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Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
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2025 |
2024 |
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Wages and salaries |
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Social security costs |
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Pension costs, defined contribution scheme |
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Other employee expense |
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The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
Northcot Brick Ltd
Notes to the Financial Statements for the Year Ended 30 June 2025
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2025 |
2024 |
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Production |
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Administration and support |
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Auditors' remuneration |
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2025 |
2024 |
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Audit of the financial statements |
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Other fees to auditors |
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All other services relating to corporate finance transactions on behalf of the company or any associates |
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Taxation |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
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Current taxation |
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UK corporation tax |
( |
( |
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Deferred taxation |
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Arising from changes in tax rates and laws |
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Tax (receipt)/expense in the income statement |
( |
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
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(Loss)/profit before tax |
( |
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Corporation tax at standard rate |
- |
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Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
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Total tax (credit)/charge |
( |
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Northcot Brick Ltd
Notes to the Financial Statements for the Year Ended 30 June 2025
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Tangible assets |
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Land and buildings |
Plant & machinery |
Total |
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Cost or valuation |
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At 1 July 2024 |
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Additions |
- |
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At 30 June 2025 |
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Depreciation |
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At 1 July 2024 |
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Charge for the year |
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At 30 June 2025 |
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Carrying amount |
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At 30 June 2025 |
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At 30 June 2024 |
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Included within the net book value of land and buildings above is £916,954 (2024 - £960,154) in respect of freehold land and buildings and £87,717 (2024 - £87,717) in respect of short leasehold land and buildings.
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:
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2025 |
2024 |
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Plant & Machinery |
- |
- |
Northcot Brick Ltd
Notes to the Financial Statements for the Year Ended 30 June 2025
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Investment properties |
|
2025 |
|
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At 1 July |
|
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Fair value adjustments |
( |
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At 30 June |
|
There has been no valuation of investment property by an independent valuer.
Included in fair value if investment property is freehold land of £10,000 (2024 - £10,000) which is not depreciated.
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Note |
2025 |
2021 |
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Cost |
1,163,151 |
1,163,151 |
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Aggregated depreciation |
(488,523) |
(465,260) |
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|
674,628 |
697,891 |
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Stocks |
|
2025 |
2024 |
|
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Raw materials and consumables |
|
|
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Production supplies |
|
|
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Finished goods and goods for resale |
|
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Debtors |
|
Current |
Note |
2025 |
2024 |
|
Trade debtors |
|
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Amounts owed by related parties |
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|
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Prepayments |
|
|
|
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Income tax asset |
- |
|
|
|
|
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Northcot Brick Ltd
Notes to the Financial Statements for the Year Ended 30 June 2025
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Cash and cash equivalents |
|
2025 |
2024 |
|
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Cash on hand |
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Cash at bank |
|
|
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Short-term deposits |
|
- |
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|
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Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
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Trade creditors |
|
|
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Amounts due to related parties |
|
|
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Social security and other taxes |
|
|
|
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Accruals |
|
|
|
|
|
|
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Deferred tax and other provisions |
|
Deferred tax |
Total |
|
|
At 1 July 2024 |
|
|
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Additional provisions |
|
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At 30 June 2025 |
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Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
2,000 |
|
2,000 |
Northcot Brick Ltd
Notes to the Financial Statements for the Year Ended 30 June 2025
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Contingent liabilities |
The bank account is part of a common bank account known as "Smith Companies Group Account" which has been guaranteed jointly and severally by E H Smith Holdings Limited, all its subsidiary companies and other non-group companies in which its shareholders and directors have interest. At 30 June 2025 there was no liability under this guarantee (2024 nil).
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Parent and ultimate parent undertaking |
The company's immediate parent is