Burflex (Scaffolding) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04844360 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31st July 2019

for

Burflex (Scaffolding) Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

S Cox

Mrs T A Cox

SECRETARY:

Mrs T A Cox

REGISTERED OFFICE:

Burflex House

Clay Street

Hull

HU8 8HA

REGISTERED NUMBER:

04844360 (England and Wales)

AUDITORS:

cbaSadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

BANKERS:

NatWest Bank plc

1 Humber Quays

Wellington Street West

Hull

HU1 2DG

The directors present their strategic report for the year ended 31st July 2019.

REVIEW OF BUSINESS

The key performance indicators of turnover, turnover growth, gross profit and net profit before taxation communicate

the financial performance of the company as a whole.

The key performance indicators for the last 3 years are as follows:

2019

2018

2017

£

£

£

Turnover

8,577,994

9,564,814

8,674,454

Turnover growth %

(10.3%)

10.3%

(9.1%)

GP Margin %

90.1%

84.4%

89.8%

Profit before taxation

611,318

1,350,456

1,138,038

The fall in turnover was due to a reduction in the number of one off commercial contracts undertaken in the year.

The company has opened a new yard in Leeds, which became fully operational during the year, in order to service sites

across West Yorkshire where the company has seen an increase in demand.

The company has also purchased a new site in Corby in order to expand the company's reach of customer's sites across

the country.

Overall, the company found itself in a good financial position at the end of the financial year end and continues to hold

sufficient cash reserves.

The directors are satisfied with the trading results for the year.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main

purpose of these instruments is to raise funds and finance the company's operations.

Price risk

The company is a supplier and installer of scaffolding. The prices of the services provided are based/reduced on

account of pricing pressure and competition. This risk is managed by monitoring the market continuously.

Foreign exchange risk

The company is not affected by foreign currency transactions

Credit risk

Credit checks are carried out on all customers. Amounts outstanding for both time and credit limits are regularly

monitored. The company does experience bad debts but believes they have systems in place to mitigate these risks.

Liquidity risk

The company's liquidity risk is managed by ensuring sufficient funds are available to meet amounts due and does not

consider that liquidity poses a significant risk.

Interest rate and cash flow risk

The company had a favourable cash balance during the year and therefore does not consider that interest rates or cash

flow pose a significant risk.

FUTURE DEVELOPMENTS

The company is looking to expand further into the commercial sector of the market whilst continuing to supply to the

domestic housing market.

The Covid-19 pandemic has had an impact as expected but the company has continued to trade throughout albeit at

reduced levels. The company has also won contracts with a major housebuilder for the next two years as well as some

larger one off contracts that will be completed in the 2020 accounts.

ON BEHALF OF THE BOARD:

S Cox - Director

20th July 2020

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply and fixing of scaffolding.

DIVIDENDS

An interim dividend of £6,500 per share was paid on 6th April 2019. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31st July 2019 will be £ 650,000 .

FUTURE DEVELOPMENTS

These details have been provided in the company's strategic report.

DIRECTORS

The directors during the year under review were:

S Cox

Mrs T A Cox

The beneficial interests of the directors holding office on 31st July 2019 in the issued share capital of the company were

as follows:

31.7.19

1.8.18

Ordinary £1 shares

S Cox

51

51

Mrs T A Cox

49

49

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main

purpose of these instruments is to raise funds and finance the company's operations.

Revenue Maintenance

The company actively markets and manages its portfolio of products to focus on revenue building and maintenance

which, over the life cycle of the products can contribute to the future profits of the business.

Risks and uncertainties

These details have been provided in the company's strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on

the company's website.

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 company'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

company's auditors are aware of that information.

AUDITORS

The auditors, cbaSadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S Cox - Director

20th July 2020

Opinion

We have audited the financial statements of Burflex (Scaffolding) Ltd (the 'company') for the year ended 31st July 2019

which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow

Statement and Notes to the 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 company's affairs as at 31st July 2019 and of its 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 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

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 company'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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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

-	the 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 company and its environment obtained in the course of the audit,

we have not identified material misstatements in the 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, 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, 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 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.

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.

Alan Brocklehurst (Senior Statutory Auditor)

for and on behalf of cbaSadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

20th July 2020

TURNOVER

8,577,994

9,564,814

Cost of sales

(847,028

)

(1,494,359

)

GROSS PROFIT

7,730,966

8,070,455

Administrative expenses

(7,118,383

)

(6,697,338

)

612,583

1,373,117

Other operating income

24,749

4,186

OPERATING PROFIT

4

637,332

1,377,303

Interest receivable and similar income

125

112

637,457

1,377,415

Interest payable and similar expenses

5

(26,139

)

(26,959

)

PROFIT BEFORE TAXATION

611,318

1,350,456

Tax on profit

6

(120,228

)

(261,331

)

PROFIT FOR THE FINANCIAL YEAR

491,090

1,089,125

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

491,090

1,089,125

FIXED ASSETS

Tangible assets

8

4,087,060

3,977,763

CURRENT ASSETS

Debtors

9

462,857

790,830

Cash at bank

314,660

759,777

777,517

1,550,607

CREDITORS

Amounts falling due within one year

10

1,131,866

1,417,227

NET CURRENT (LIABILITIES)/ASSETS

(354,349

)

133,380

TOTAL ASSETS LESS CURRENT LIABILITIES

3,732,711

4,111,143

CREDITORS

Amounts falling due after more than one year

11

(134,768

)

(325,676

)

PROVISIONS FOR LIABILITIES

15

(155,607

)

(184,221

)

NET ASSETS

3,442,336

3,601,246

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

3,442,236

3,601,146

SHAREHOLDERS' FUNDS

3,442,336

3,601,246

The financial statements were approved by the Board of Directors and authorised for issue on 20th July 2020 and were signed on its behalf by:

S Cox - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st August 2017

100

3,162,021

3,162,121

Changes in equity

Dividends

-

(650,000

)

(650,000

)

Total comprehensive income

-

1,089,125

1,089,125

Balance at 31st July 2018

100

3,601,146

3,601,246

Changes in equity

Dividends

-

(650,000

)

(650,000

)

Total comprehensive income

-

491,090

491,090

Balance at 31st July 2019

100

3,442,236

3,442,336

Cash flows from operating activities

Cash generated from operations

1

1,458,469

2,035,621

Interest paid

(8,110

)

(8,426

)

Interest element of hire purchase payments paid

(18,029

)

(18,533

)

Tax paid

(278,818

)

(289,572

)

Net cash from operating activities

1,153,512

1,719,090

Cash flows from investing activities

Purchase of tangible fixed assets

(840,759

)

(820,320

)

Sale of tangible fixed assets

22,950

-

Interest received

125

112

Net cash from investing activities

(817,684

)

(820,208

)

Cash flows from financing activities

Loan repayments in year

(18,508

)

(18,193

)

Capital repayments in year

(265,585

)

(274,267

)

Amount withdrawn by directors

153,148

(384

)

Equity dividends paid

(650,000

)

(650,000

)

Net cash from financing activities

(780,945

)

(942,844

)

Decrease in cash and cash equivalents

(445,117

)

(43,962

)

Cash and cash equivalents at beginning of year

2

759,777

803,739

Cash and cash equivalents at end of year

2

314,660

759,777

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

2019

2018

£

£

Profit before taxation

611,318

1,350,456

Depreciation charges

710,078

802,567

(Profit)/loss on disposal of fixed assets

(1,566

)

5,916

Finance costs

26,139

26,959

Finance income

(125

)

(112

)

1,345,844

2,185,786

Decrease/(increase) in trade and other debtors

327,973

(123,847

)

Decrease in trade and other creditors

(215,348

)

(26,318

)

Cash generated from operations

1,458,469

2,035,621

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 July 2019

31.7.19

1.8.18

£

£

Cash and cash equivalents

314,660

759,777

Year ended 31st July 2018

31.7.18

1.8.17

£

£

Cash and cash equivalents

759,777

803,739

1.	STATUTORY INFORMATION

Burflex (Scaffolding) Ltd is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

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.

Freehold property

-

not provided

Improvements to property

-

over the period of the lease

Plant and machinery

-

15% on cost and 10% on cost

Fixtures and fittings

-

20% on cost and 15% on reducing balance

Motor vehicles

-

25% on cost and 25% on reducing balance

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, 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.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

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

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

Going concern

The directors are satisfied that the financial statements have been prepared on a Going Concern basis having

considered the longevity of its contracts with the existing customers base.

Further information regarding the company's business activities, together with the factors likely to affect its

future development, performance and position is set out in the Strategic Report.

3.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

4,485,403

4,285,656

Social security costs

463,906

436,317

Other pension costs

75,290

39,297

5,024,599

4,761,270

The average number of employees during the year was as follows:

2019

2018

Management and administration

20

19

Drivers and yard

28

21

Site

79

84

127

124

2019

2018

£

£

Directors' remuneration

28,888

28,766

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2019

2018

£

£

Hire of plant and machinery

28,238

30,431

Other operating leases

30,594

-

Depreciation - owned assets

602,922

601,966

Depreciation - assets on hire purchase contracts

107,156

200,601

(Profit)/loss on disposal of fixed assets

(1,566

)

5,916

Auditors' remuneration

4,000

4,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Loan interest

8,110

8,426

Hire purchase interest

18,029

18,533

26,139

26,959

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2019

2018

£

£

Current tax:

UK corporation tax

148,842

278,818

Deferred taxation

(28,614

)

(17,487

)

Tax on profit

120,228

261,331

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

2019

2018

£

£

Profit before tax

611,318

1,350,456

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

116,150

256,587

Effects of:

Expenses not deductible for tax purposes

2,786

1,056

Depreciation in excess of capital allowances

29,906

21,175

Deferred Taxation movement

(28,614

)

(17,487

)

Total tax charge

120,228

261,331