Hazelberry Developments Limited - Limited company accounts 18.2

REGISTERED NUMBER: SC559860 (Scotland)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31st March 2019

for

Hazelberry Developments Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

to

5

Consolidated Income Statement

6

Consolidated Other Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

to

24

DIRECTORS:

S I Dodd

Mrs L Dodd

REGISTERED OFFICE:

Tundergarth Mains

Tundergarth

Lockerbie

DUMFRIESSHIRE

DG11 2PU

REGISTERED NUMBER:

SC559860 (Scotland)

AUDITORS:

Farries, Kirk and McVean

Chartered Accountants

Statutory Auditors

Dumfries Enterprise Park

Heathhall

Dumfries

DUMFRIESSHIRE

DG1 3SJ

SOLICITORS:

JHS Law

8 Bank Street

Dumfries

DG1 2NS

Hazelberry Developments Limited is a holding company. The main trading activity of the group is carried out by Grange Quarry

Limited.

Grange Quarry Limited supply aggregates, concrete, sand, lime and liquid screed to the Civil Engineering, Agriculture, Highways,

Rail, Forestry, Nuclear and Renewables industries. The company was incorporated in 2000 and has now expanded to trade from four

different sites in Dumfries & Galloway.

The directors believe that the company is well placed to service their customers throughout Scotland and the North of England,

although most of the business continues to be within Dumfriesshire. The extensive experience that both they and their staff have in

the industry is to the benefit of both the company and its customers.

REVIEW OF BUSINESS

The directors are pleased with the results. The group has had another successful year ot trade. Turnover has decreased from £11.3m

to £10.6m but gross profit has increased from £5.2m to £5.8m. Gross profit percentage has increased from 45.7% to 55.2%. Bottom

line profits before tax have remained unchanged at £2.6m.

Key Performance Indicators (KPI's)

Given the straightforward nature of the business, the directors are of the opinion that there are no additional KPI's other than the

measures of turnover and gross profit reported above that are necessary for an understanding of the development, performance or

position of the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks

and uncertainties affecting the company are considered to relate to competition from both national and independent machinery

dealers, employee retention and product availability.

Financial risk management

The company's operations expose it to little in the way of financial risk. However, a variety of financial risks do exist to an extent

including credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit

the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The

amount of exposure to any individual is subject to a limit which can only be reassessed by a director.

Liquidity risk

The company requires only limited short term debt finance to ensure there are sufficient available funds for operations.

Interest rate risk

The company has interest bearing liabilities including a bank loan. The amount of interest charged on these liabilities is not sufficient

to significantly affect company operations.

ON BEHALF OF THE BOARD:

S I Dodd - Director

27th December 2019

The directors present their report with the financial statements of the company and the group for the year ended 31st March 2019.

DIVIDENDS

An interim dividend of £749.46 per share was paid on 31st March 2019. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31st March 2019 will be £ 74,946 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1st April 2018 to the date of this report.

S I Dodd

Mrs L Dodd

DONATIONS AND EXPENDITURE

During the year donations totalling £1,420 were made to local groups (2018 - £7,513).

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the

group 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 and the

group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other

irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of

which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in

order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that

information.

AUDITORS

The auditors, Farries, Kirk and McVean, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S I Dodd - Director

27th December 2019

Opinion

We have audited the financial statements of Hazelberry Developments Limited (the 'parent company') and its subsidiaries (the

'group') for the year ended 31st March 2019 which comprise the Consolidated Income Statement, Consolidated Other

Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity,

Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement,

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 group's and of the parent company affairs as at 31st March 2019 and of the group's profit 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 Auditors' responsibilities for the audit of the financial statements

section of our report. We are independent of the group 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 comparative financial figures have not been subject to audit.

Opinions on other matters prescribed by the Companies Act 2006

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

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

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of

the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic

alternative but to do so.

Auditors' 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 a Report of the Auditors 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 for the audit of the financial statements is located on the Financial Reporting Council's

website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Gerald McGill, BA CA (Senior Statutory Auditor)

for and on behalf of Farries, Kirk and McVean

Chartered Accountants

Statutory Auditors

Dumfries Enterprise Park

Heathhall

Dumfries

DUMFRIESSHIRE

DG1 3SJ

27th December 2019

TURNOVER

10,586,095

11,339,743

Cost of sales

(4,617,299

)

(6,160,423

)

GROSS PROFIT

5,968,796

5,179,320

Administrative expenses

(3,350,138

)

(2,571,263

)

OPERATING PROFIT

4

2,618,658

2,608,057

Income from fixed asset investments

4,887

-

Interest receivable and similar income

2,233

600

2,625,778

2,608,657

Interest payable and similar expenses

5

(31,952

)

(33,710

)

PROFIT BEFORE TAXATION

2,593,826

2,574,947

Tax on profit

6

(437,591

)

(466,754

)

PROFIT FOR THE FINANCIAL YEAR

2,156,235

2,108,193

Profit attributable to:

Owners of the parent

2,156,235

2,108,193

PROFIT FOR THE YEAR

2,156,235

2,108,193

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,156,235

2,108,193

Total comprehensive income attributable to:

Owners of the parent

2,156,233

2,108,191

Non-controlling interests

2

2

2,156,235

2,108,193

FIXED ASSETS

Intangible assets

9

8,080

-

Tangible assets

10

5,846,442

5,104,026

Investments

11

2,509,946

2,418,518

Investment property

12

-

-

8,364,468

7,522,544

CURRENT ASSETS

Debtors

13

1,953,977

1,866,703

Cash at bank

3,276,637

2,052,590

5,230,614

3,919,293

CREDITORS

Amounts falling due within one year

14

(2,265,083

)

(2,311,558

)

NET CURRENT ASSETS

2,965,531

1,607,735

TOTAL ASSETS LESS CURRENT LIABILITIES

11,329,999

9,130,279

CREDITORS

Amounts falling due after more than one year

15

(762,658

)

(642,203

)

PROVISIONS FOR LIABILITIES

19

(566,861

)

(568,885

)

NET ASSETS

10,000,480

7,919,191

CAPITAL AND RESERVES

Called up share capital

20

100

100

Revaluation reserve

21

93,000

93,000

Retained earnings

21

9,907,378

7,826,089

SHAREHOLDERS' FUNDS

10,000,478

7,919,189

NON-CONTROLLING INTERESTS

22

2

2

TOTAL EQUITY

10,000,480

7,919,191

The financial statements were approved by the Board of Directors on 27th December 2019 and were signed on its behalf by:

S I Dodd - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

2,510,046

100

Investment property

12

65,000

-

2,575,046

100

CURRENT ASSETS

Debtors

13

351,783

24,100

Cash at bank

2,321,664

21,349

2,673,447

45,449

CREDITORS

Amounts falling due within one year

14

(296,057

)

(15,197

)

NET CURRENT ASSETS

2,377,390

30,252

TOTAL ASSETS LESS CURRENT LIABILITIES

4,952,436

30,352

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

4,952,336

30,252

SHAREHOLDERS' FUNDS

4,952,436

30,352

Company's profit for the financial year

4,997,030

30,252

The financial statements were approved by the Board of Directors on 27th December 2019 and were signed on its behalf by:

S I Dodd - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 8th March 2017

-

5,890,326

93,000

Changes in equity

Issue of share capital

100

-

-

Dividends

-

(172,430

)

-

Total comprehensive income

-

2,108,193

-

Balance at 31st March 2018

100

7,826,089

93,000

Changes in equity

Dividends

-

(74,946

)

-

Total comprehensive income

-

2,156,235

-

Balance at 31st March 2019

100

9,907,378

93,000

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 8th March 2017

5,983,326

-

5,983,326

Changes in equity

Issue of share capital

100

-

100

Dividends

(172,430

)

-

(172,430

)

Total comprehensive income

2,108,193

2

2,108,195

Balance at 31st March 2018

7,919,189

2

7,919,191

Changes in equity

Dividends

(74,946

)

-

(74,946

)

Total comprehensive income

2,156,235

2

2,156,237

Balance at 31st March 2019

10,000,478

4

10,000,482

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100

-

100

Total comprehensive income

-

30,252

30,252

Balance at 31st March 2018

100

30,252

30,352

Changes in equity

Dividends

-

(74,946

)

(74,946

)

Total comprehensive income

-

4,997,030

4,997,030

Balance at 31st March 2019

100

4,952,336

4,952,436

Cash flows from operating activities

Cash generated from operations

1

3,415,970

2,705,702

Interest paid

(9,039

)

-

Interest element of hire purchase payments paid

(22,913

)

(33,710

)

Tax paid

(439,626

)

(374,323

)

Net cash from operating activities

2,944,392

2,297,669

Cash flows from investing activities

Purchase of intangible fixed assets

(10,089

)

-

Purchase of tangible fixed assets

(1,521,631

)

(5,349,076

)

Purchase of fixed asset investments

(24,580

)

(2,410,983

)

Sale of tangible fixed assets

192,000

323,750

Sale of fixed asset investments

22,635

-

Opening capital in subsidiary

-

8,196,179

Interest received

2,233

600

Dividends received

4,887

-

Net cash from investing activities

(1,334,545

)

760,470

Cash flows from financing activities

New loans in year

600,000

-

Loan repayments in year

(30,253

)

-

Capital repayments in year

(720,601

)

(833,219

)

Amount withdrawn by directors

(160,000

)

-

Share issue

-

100

Equity dividends paid

(74,946

)

(172,430

)

Net cash from financing activities

(385,800

)

(1,005,549

)

Increase in cash and cash equivalents

1,224,047

2,052,590

Cash and cash equivalents at beginning of year

2

2,052,590

-

Cash and cash equivalents at end of year

2

3,276,637

2,052,590

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

8.3.17

Year Ended

to

31.3.19

31.3.18

£

£

Profit before taxation

2,593,826

2,574,947

Depreciation charges

719,012

651,727

Loss on disposal of fixed assets

69,552

42,374

Gain on revaluation of fixed assets

(88,823

)

(7,535

)

Finance costs

31,952

33,710

Finance income

(7,120

)

(600

)

3,318,399

3,294,623

Decrease/(increase) in trade and other debtors

72,726

(1,866,703

)

Increase in trade and other creditors

24,845

1,277,782

Cash generated from operations

3,415,970

2,705,702

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance

Sheet amounts:

Year ended 31st March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

3,276,637

2,052,590

Period ended 31st March 2018

31.3.18

8.3.17

£

£

Cash and cash equivalents

2,052,590

-

1.	STATUTORY INFORMATION

Hazelberry Developments Limited is a private company, limited by shares , registered in Scotland. The company's registered

number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been 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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover comprises revenue recognised by the company in respect of sales of stone, aggregates and concrete processed

before close of business on the last working day of the year, excluding value added tax.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any

accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Buildings

-

4% on cost

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

15% on reducing balance

Amounts written off each asset over the estimated useful life represent cost less residual value.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively

enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in

which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted

or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be

recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire

purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over

their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the

future payments is treated as a liability.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are

charged to profit or loss in the period to which they relate.