The Mortar and Screed Company Limited 08873886 false 2024-01-01 2024-12-31 2024-12-31 The principal activity of the company is that of the production of mortar screed. Digita Accounts Production Advanced 6.30.9574.0 true true true true 08873886 2024-01-01 2024-12-31 08873886 2024-12-31 08873886 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2024-12-31 08873886 bus:OrdinaryShareClass2 bus:Non-cumulativeShares 2024-12-31 08873886 bus:Consolidated 2024-12-31 08873886 core:AcceleratedTaxDepreciationDeferredTax 2024-12-31 08873886 core:OtherDeferredTax 2024-12-31 08873886 core:TaxLossesCarry-forwardsDeferredTax 2024-12-31 08873886 core:RetainedEarningsAccumulatedLosses 2024-12-31 08873886 core:ShareCapital 2024-12-31 08873886 core:FinanceLeases core:CurrentFinancialInstruments 2024-12-31 08873886 core:FinanceLeases core:Non-currentFinancialInstruments 2024-12-31 08873886 core:CurrentFinancialInstruments 2024-12-31 08873886 core:CurrentFinancialInstruments core:WithinOneYear 2024-12-31 08873886 core:CurrentFinancialInstruments core:WithinOneYear 2 2024-12-31 08873886 core:Non-currentFinancialInstruments core:AfterOneYear 2024-12-31 08873886 core:BetweenOneFiveYears 2024-12-31 08873886 core:BetweenTwoFiveYears 2024-12-31 08873886 core:MoreThanFiveYears 2024-12-31 08873886 core:WithinOneYear 2024-12-31 08873886 core:ConstructionInProgressAssetsUnderConstruction 2024-12-31 08873886 core:FurnitureFittingsToolsEquipment 2024-12-31 08873886 core:LandBuildings 2024-12-31 08873886 core:MotorVehicles 2024-12-31 08873886 core:OtherPropertyPlantEquipment 2024-12-31 08873886 core:DeferredTaxation 2024-12-31 08873886 bus:FRS102 2024-01-01 2024-12-31 08873886 bus:Audited 2024-01-01 2024-12-31 08873886 bus:FullAccounts 2024-01-01 2024-12-31 08873886 bus:RegisteredOffice 2024-01-01 2024-12-31 08873886 bus:Director1 2024-01-01 2024-12-31 08873886 bus:Director2 2024-01-01 2024-12-31 08873886 bus:OrdinaryShareClass1 bus:Non-cumulativeNon-redeemableShares 2024-01-01 2024-12-31 08873886 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2024-01-01 2024-12-31 08873886 bus:OrdinaryShareClass2 bus:Non-cumulativeNon-redeemableShares 2024-01-01 2024-12-31 08873886 bus:OrdinaryShareClass2 bus:Non-cumulativeShares 2024-01-01 2024-12-31 08873886 bus:Consolidated 2024-01-01 2024-12-31 08873886 bus:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 08873886 1 2024-01-01 2024-12-31 08873886 2 2024-01-01 2024-12-31 08873886 3 2024-01-01 2024-12-31 08873886 core:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 08873886 core:ShareCapital 2024-01-01 2024-12-31 08873886 core:Buildings 2024-01-01 2024-12-31 08873886 core:ConstructionInProgressAssetsUnderConstruction 2024-01-01 2024-12-31 08873886 core:FurnitureFittingsToolsEquipment 2024-01-01 2024-12-31 08873886 core:LandBuildings 2024-01-01 2024-12-31 08873886 core:MotorCars 2024-01-01 2024-12-31 08873886 core:MotorVehicles 2024-01-01 2024-12-31 08873886 core:OfficeEquipment 2024-01-01 2024-12-31 08873886 core:OtherPropertyPlantEquipment 2024-01-01 2024-12-31 08873886 core:PlantMachinery 2024-01-01 2024-12-31 08873886 core:DeferredTaxation 2024-01-01 2024-12-31 08873886 core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2024-01-01 2024-12-31 08873886 core:OtherRelatedParties 2024-01-01 2024-12-31 08873886 core:UKTax 2024-01-01 2024-12-31 08873886 countries:EnglandWales 2024-01-01 2024-12-31 08873886 2023-12-31 08873886 core:RetainedEarningsAccumulatedLosses 2023-12-31 08873886 core:ShareCapital 2023-12-31 08873886 core:ConstructionInProgressAssetsUnderConstruction 2023-12-31 08873886 core:FurnitureFittingsToolsEquipment 2023-12-31 08873886 core:LandBuildings 2023-12-31 08873886 core:MotorVehicles 2023-12-31 08873886 core:OtherPropertyPlantEquipment 2023-12-31 08873886 core:DeferredTaxation 2023-12-31 08873886 2023-01-01 2023-12-31 08873886 2023-12-31 08873886 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2023-12-31 08873886 bus:OrdinaryShareClass2 bus:Non-cumulativeShares 2023-12-31 08873886 core:AcceleratedTaxDepreciationDeferredTax 2023-12-31 08873886 core:OtherDeferredTax 2023-12-31 08873886 core:TaxLossesCarry-forwardsDeferredTax 2023-12-31 08873886 core:FinanceLeases core:CurrentFinancialInstruments 2023-12-31 08873886 core:FinanceLeases core:Non-currentFinancialInstruments 2023-12-31 08873886 core:CurrentFinancialInstruments 2023-12-31 08873886 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 08873886 core:CurrentFinancialInstruments core:WithinOneYear 2 2023-12-31 08873886 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 08873886 core:BetweenOneFiveYears 2023-12-31 08873886 core:BetweenTwoFiveYears 2023-12-31 08873886 core:MoreThanFiveYears 2023-12-31 08873886 core:WithinOneYear 2023-12-31 08873886 core:ConstructionInProgressAssetsUnderConstruction 2023-12-31 08873886 core:FurnitureFittingsToolsEquipment 2023-12-31 08873886 core:LandBuildings 2023-12-31 08873886 core:MotorVehicles 2023-12-31 08873886 core:OtherPropertyPlantEquipment 2023-12-31 08873886 bus:OrdinaryShareClass1 bus:Non-cumulativeNon-redeemableShares 2023-01-01 2023-12-31 08873886 bus:OrdinaryShareClass2 bus:Non-cumulativeNon-redeemableShares 2023-01-01 2023-12-31 08873886 1 2023-01-01 2023-12-31 08873886 2 2023-01-01 2023-12-31 08873886 3 2023-01-01 2023-12-31 08873886 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 08873886 core:ShareCapital 2023-01-01 2023-12-31 08873886 core:UKTax 2023-01-01 2023-12-31 08873886 2022-12-31 08873886 core:RetainedEarningsAccumulatedLosses 2022-12-31 08873886 core:ShareCapital 2022-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 08873886

The Mortar and Screed Company Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2024

 

The Mortar and Screed Company Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 25

 

The Mortar and Screed Company Limited

Company Information

Directors

R M Parton

P Padfield

Registered office

The Oaklands
Station Road
Admaston
Telford
Shropshire
TF5 0AN

Auditors

CBSL Accountants Limited
Chartered Accountant & Statutory Auditor
Rowan House North
1 The Professional Quarter
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 

The Mortar and Screed Company Limited

Strategic Report for the Year Ended 31 December 2024

The directors present their strategic report for the year ended 31 December 2024.

Principal activity

The principal activity of the company is that of the production of mortar screed.

Fair review of the business

The directors aim to present a balance and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and non-complex nature of the business.

The company continued to produce and distribute mortar screed to its wide customer base in the Midlands and beyond. The company continues to invest in its plant and equipment and in increasing capacity with capital expenditure totalling over £1m for the year. The fixed assets' net book value totalled £7.9m at 31 December 2024 (2023 - £8.5m).

Turnover for the year decreased by 3.0% to £13.7m and gross profit decreased from £1.4m to £888k. Net assets totalled £2.99m at 31 December 2024 (2023 - £3.33m).

Principal risks and uncertainties

The principal risks and uncertainties facing the business are similiar to those of the sector as a whole. Availability of resources, production efficiencies and staff retention are the key uncertainties that affect the long term performance of the business. The directors focus investment on ensuring that the impact of these risks on the business are minimised as far as possible.

Approved and authorised by the Board on 18 December 2025 and signed on its behalf by:
 


R M Parton
Director

 

The Mortar and Screed Company Limited

Directors' Report for the Year Ended 31 December 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors of the company

The directors who held office during the year were as follows:

R M Parton

P Padfield

Financial instruments

Objectives and policies

The company's prinicipal financial instruments comprise bank balances, trade debtors, trade creditors and finance leases for plant and machinery additions.

The company's cash balances are held to achieve a competitive rate of interest and an invoice discounting facility for short term borrowing. Trade debtors are managed by regular monitoring of amounts outstanding and applying credit limits for customers. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Finance lease liabilities are spread over the useful life of the assets to ensure income generation matches the repayments of capital due.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 18 December 2025 and signed on its behalf by:
 


R M Parton
Director

 

The Mortar and Screed Company Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

The Mortar and Screed Company Limited

Independent Auditor's Report to the Members of The Mortar and Screed Company Limited

Opinion

We have audited the financial statements of The Mortar and Screed Company Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

The Mortar and Screed Company Limited

Independent Auditor's Report to the Members of The Mortar and Screed Company Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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 Mortar and Screed Company Limited

Independent Auditor's Report to the Members of The Mortar and Screed Company Limited

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to this company and its sector and determined that the most significant are those relating to the reporting framework and the relevant UK tax legislation.

• We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures.

• As an audit engagement team, we assessed the susceptibility of the company’s financial statements to material misstatement including how fraud might occur and considered the opportunities and incentives that may exist within the company for fraud. We considered the controls that the company has established to address the risks identified to prevent, deter and detect fraud; and how the management and directors monitor those controls.

• Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Those procedures involved: - enquiries of management and those charged with governance; - journal entry testing; - assessing whether judgements in making accounting estimates are indicative of a potential bias; and – evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

• Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included revenue recognition and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

• We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

 

The Mortar and Screed Company Limited

Independent Auditor's Report to the Members of The Mortar and Screed Company Limited

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.



Louise Osselton FCA (Senior Statutory Auditor)
For and on behalf of CBSL Accountants Limited, Statutory Auditor

Rowan House North
1 The Professional Quarter
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

18 December 2025

 

The Mortar and Screed Company Limited

Profit and Loss Account for the Year Ended 31 December 2024

Note

2024
£

2023
£

Turnover

3

13,684,912

14,102,884

Cost of sales

 

(12,796,613)

(12,675,012)

Gross profit

 

888,299

1,427,872

Administrative expenses

 

(772,069)

(674,295)

Operating profit

5

116,230

753,577

Interest payable and similar expenses

6

(310,701)

(278,059)

(Loss)/profit before tax

 

(194,471)

475,518

Tax on (loss)/profit

9

22,340

(156,862)

(Loss)/profit for the financial year

 

(172,131)

318,656

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

The Mortar and Screed Company Limited

(Registration number: 08873886)
Balance Sheet as at 31 December 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

10

7,916,318

8,491,207

Current assets

 

Stocks

11

379,929

394,833

Debtors

12

3,839,205

3,630,477

Cash at bank and in hand

 

3,230

20,633

 

4,222,364

4,045,943

Creditors: Amounts falling due within one year

14

(4,677,397)

(4,776,037)

Net current liabilities

 

(455,033)

(730,094)

Total assets less current liabilities

 

7,461,285

7,761,113

Creditors: Amounts falling due after more than one year

14

(3,675,218)

(3,612,776)

Provisions for liabilities

15

(800,971)

(816,110)

Net assets

 

2,985,096

3,332,227

Capital and reserves

 

Called up share capital

240

240

Retained earnings

2,984,856

3,331,987

Shareholders' funds

 

2,985,096

3,332,227

Approved and authorised by the Board on 18 December 2025 and signed on its behalf by:
 


R M Parton
Director

 

The Mortar and Screed Company Limited

Statement of Changes in Equity for the Year Ended 31 December 2024

Share capital
£

Retained earnings
£

Total
£

At 1 January 2024

240

3,331,987

3,332,227

Loss for the year

-

(172,131)

(172,131)

Dividends

-

(175,000)

(175,000)

At 31 December 2024

240

2,984,856

2,985,096

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

240

3,238,331

3,238,571

Profit for the year

-

318,656

318,656

Dividends

-

(225,000)

(225,000)

At 31 December 2023

240

3,331,987

3,332,227

 

The Mortar and Screed Company Limited

Statement of Cash Flows for the Year Ended 31 December 2024

Note

2024
£

2023
£

Cash flows from operating activities

(Loss)/profit for the year

 

(172,131)

318,656

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

1,526,764

1,601,469

Loss on disposal of tangible assets

4

20,234

52,980

Finance costs

6

310,701

278,059

Income tax expense

9

(22,340)

156,862

 

1,663,228

2,408,026

Working capital adjustments

 

Decrease/(increase) in stocks

11

14,904

(217,913)

Increase in trade debtors

12

(256,887)

(214,770)

(Decrease)/increase in trade creditors

14

(412,021)

305,841

Cash generated from operations

 

1,009,224

2,281,184

Income taxes received

9

55,360

-

Net cash flow from operating activities

 

1,064,584

2,281,184

Cash flows from investing activities

 

Acquisitions of tangible assets

(202,661)

(416,855)

Proceeds from sale of tangible assets

 

105,352

219,834

Net cash flows from investing activities

 

(97,309)

(197,021)

Cash flows from financing activities

 

Interest paid

6

(310,701)

(278,059)

Proceeds from bank borrowing draw downs

 

361,766

4,942

Proceeds from other borrowing draw downs

 

669,006

-

Repayment of other borrowing

 

-

(55,000)

Payments to finance lease creditors

 

(1,529,749)

(1,654,476)

Dividends paid

20

(175,000)

(225,000)

Net cash flows from financing activities

 

(984,678)

(2,207,593)

Net decrease in cash and cash equivalents

 

(17,403)

(123,430)

Cash and cash equivalents at 1 January

 

20,633

144,063

Cash and cash equivalents at 31 December

 

3,230

20,633

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
The Oaklands
Station Road
Admaston
Telford
Shropshire
TF5 0AN

The principal place of business is:
Four Ashes Industrial Estate
Enterprise Drive
Four Ashes
Wolverhampton
WV10 7DF

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Key sources of estimation uncertainty

The preparation of the financial statements requires the use of certain critical accounting estimates and requires management to exercise its judgement in the process of applying accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements include revenue recognition and depreciation. The principal accounting policies have been consistently applied.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

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 balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold property costs

10% straight line

Plant and machinery

10% straight line

Mobile plant

16.67% - 20% straight line

Motor cars

15% straight line

Fixtures and fittings

3 years straight line

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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss in the period to which they relate.

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

13,684,912

14,102,884

4

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
£

2023
£

Loss on disposal of tangible assets

(20,234)

(52,980)

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

1,526,764

1,601,469

Loss on disposal of property, plant and equipment

20,234

52,980

6

Interest payable and similar expenses

2024
£

2023
£

Interest on obligations under finance leases and hire purchase contracts

307,367

278,059

Interest expense on other finance liabilities

3,334

-

310,701

278,059

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

2,326,683

2,316,371

Social security costs

241,925

236,365

Pension costs, defined contribution scheme

47,174

45,491

2,615,782

2,598,227

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

61

60

Administration and support

3

3

64

63

8

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

7,400

7,200


 

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

9

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax adjustment to prior periods

(7,201)

-

Deferred taxation

Arising from origination and reversal of timing differences

(11,549)

150,196

Arising from changes in tax rates and laws

(3,590)

6,666

Total deferred taxation

(15,139)

156,862

Tax (receipt)/expense in the income statement

(22,340)

156,862

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

(Loss)/profit before tax

(194,471)

475,518

Corporation tax at standard rate

(48,618)

118,880

Decrease in UK and foreign current tax from adjustment for prior periods

(7,201)

-

Tax increase from effect of capital allowances and depreciation

5,946

3,212

Effect of expense not deductible in determining taxable profit (tax loss)

31,123

24,514

Deferred tax (credit)/expense from unrecognised temporary difference from a prior period

(3,590)

10,256

Total tax (credit)/charge

(22,340)

156,862

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Accelerated tax depreciation

1,196,811

Tax losses carry-forwards

(394,524)

Other short term timing differences

(1,316)

800,971

2023

Liability
£

Accelerated tax depreciation

1,321,470

Tax losses carry-forwards

(504,120)

Other short term timing differences

(1,240)

816,110

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

10

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Mobile plant
 £

Motor cars
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2024

1,605,729

350,364

6,617,165

203,014

3,746,112

12,522,384

Additions

107,992

6,799

424,719

271,147

266,804

1,077,461

Disposals

-

-

(446,430)

(47,209)

(67,809)

(561,448)

At 31 December 2024

1,713,721

357,163

6,595,454

426,952

3,945,107

13,038,397

Depreciation

At 1 January 2024

47,120

182,226

2,484,671

100,544

1,216,616

4,031,177

Charge for the year

23,783

47,180

1,117,095

58,202

280,504

1,526,764

Eliminated on disposal

-

-

(410,004)

(25,858)

-

(435,862)

At 31 December 2024

70,903

229,406

3,191,762

132,888

1,497,120

5,122,079

Carrying amount

At 31 December 2024

1,642,818

127,757

3,403,692

294,064

2,447,987

7,916,318

At 31 December 2023

1,558,609

168,138

4,132,494

102,470

2,529,496

8,491,207

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Included within the net book value of land and buildings above is £115,954 (2023 - £115,954) in respect of freehold land and buildings and £1,526,865 (2023 - £1,442,655) in respect of short leasehold land and buildings.
 

Included in the carrying value of tangible fixed assets are assets held under finance leases with a net book value at the year end of £4,719,267 (2023 - £5,261,688). The depreciation charge for the year on these assets amounted to £921,348 (2023 - £937,538).

11

Stocks

2024
£

2023
£

Work in progress

102,092

91,421

Other inventories

277,837

303,412

379,929

394,833

12

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

1,516,748

1,163,596

Other debtors

 

1,997,556

2,039,129

Prepayments

 

324,901

379,593

Income tax asset

9

-

48,159

   

3,839,205

3,630,477

13

Cash and cash equivalents

2024
£

2023
£

Cash on hand

820

820

Cash at bank

2,410

19,813

3,230

20,633

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

14

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

18

2,308,295

1,994,914

Trade creditors

 

685,182

1,170,142

Social security and other taxes

 

604,105

72,033

Outstanding defined contribution pension costs

 

5,265

4,959

Other payables

 

719,594

636,741

Accruals

 

354,956

897,248

 

4,677,397

4,776,037

Due after one year

 

Loans and borrowings

18

2,391,512

2,998,076

Other non-current financial liabilities

 

1,283,706

614,700

 

3,675,218

3,612,776

15

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2024

816,110

816,110

Increase (decrease) in existing provisions

(15,139)

(15,139)

At 31 December 2024

800,971

800,971

16

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 £47,174 (2023 - £45,491).

Contributions totalling £5,265 (2023 - £4,959) were payable to the scheme at the end of the year and are included in creditors.

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

17

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary A of £1 each

120

120

120

120

Ordinary B of £1 each

120

120

120

120

240

240

240

240

18

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Finance lease liabilities

2,391,512

2,998,076

Current loans and borrowings

2024
£

2023
£

Bank borrowings

1,000,830

639,064

Finance lease liabilities

1,307,465

1,355,850

2,308,295

1,994,914

The HP and finance lease liabilities are secured against the assets to which they relate.

Bank borrowings relates to an invoice discounting facility.

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

19

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

1,307,465

1,355,850

Later than one year and not later than five years

1,989,812

2,450,197

Later than five years

401,700

547,864

3,698,977

4,353,911

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

30,000

30,000

Later than one year and not later than five years

120,000

120,000

Later than five years

510,000

540,000

660,000

690,000

20

Dividends

Interim dividends paid

2024
£

2023
£

Interim dividend of £Nil per each Ordinary A

-

-

Interim dividend of £1,458.3333 (2023 - £1,875.00) per each Ordinary B

175,000

225,000

175,000

225,000

 

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

21

Related party transactions

Summary of transactions with entities with joint control or significant interest

Directors advances
 At the year end the directors loan account was overdrawn by £342,104 (2023 - £362,484), which is included in Other debtors. No interest is charged on the loan.
 

Summary of transactions with other related parties

R M Parton, director, has an interest in all of the Companies listed below:-

 Monies due to related parties at the year end were as follows :-

Staffordshire Sand and Gravel Company Limited £443,406 (2023 - £443,406)
Salop Sand and Gravel Supply Company Limited £1,338,451 (2023 - £792,096)

Monies due from related parties at the year end amounted to :-

Wildmoor Quarry Products Limited £1,051,332 (2023 - £1,094,260)
Shropshire Sand and Gravel Company Limited £271,840 (2023 - £264,840)
SSG Haulage Ltd £35,425 (2023 - £27,601)
Cheshire & North Wales Sand & Gravel Limited £296,500 (2023 - £288,516)