Valerie Coltman Holdings Limited - Limited company accounts 20.1

REGISTERED NUMBER: 06824310 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

FOR

VALERIE COLTMAN HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

T A Jobson

D S Frost

REGISTERED OFFICE:

London Road

Canwell

Sutton Coldfield

West Midlands

B75 5SX

REGISTERED NUMBER:

06824310 (England and Wales)

AUDITORS:

Prime

Chartered Accountants

Statutory Auditor

No. 3 Caroline Court

13 Caroline Street

St Paul's Square

Birmingham

B3 1TR

The directors present their strategic report of the company and the group for the year ended 31 March 2020.

REVIEW OF BUSINESS

The group continued its strategy and saw sales grow by 8.5% to £9.5m and gross profit margin rise by 6.1%

to 26.3% during the year. This improved margin coupled with a strong control on administration expenses

produced a profit of £722,801, after tax, compared to a loss of £189,296 in the previous year.

The group's initial steps to improve efficiency and flexibility within the business continued to yield positive

results and further cement the group's reputation as a reliable provider of quality concrete products.

Now that the first stage of the change strategy, in returning the group to profitability whilst maintaining a

quality product, has been completed, the group invested in plant to further improve efficiencies and maintain

competitive pricing. During the year the group invested over £225,000 in plant, including a Prestressed

flooring machine and Precast equipment.

Despite this investment the group was able to improve its net current asset position by 76.7% to £1,160,171

and improve cash by £233,531 to £1,639,582 at the year end.

The group ended the year in lockdown, following the Covid-19 pandemic and Government restrictions,

however it was able to return to production by the end of April 2020 and has been supplying product since.

As expected the Government restrictions were challenging and as the building industry slowly opened after

initial closure at the end of March, trading has been difficult but in the first quarter of the new year sales were

strong and the group maintained profitability.

Management's vision to ensure the business was flexible has put it in a strong position to change its

approach in the current "new normal", whilst continuing to provide the same level of service to customers and

take advantage of opportunities. The current economic climate has not deterred the group from investment

and after the year end further Precast equipment has been purchased. The group is committed to its five

year investment plan and has adequate resources in place.

The main KPIs for the business are:

1. The level of turnover, which at £9.5m was up 8.5% from the previous year;

2. Gross profit margin, which was 26.3% compared to 20.2% in the previous year; and

3. Orders in hand, which at the balance sheet date were £5.5m which is 8% lower than the previous year.

The business continues to enjoy and extend a wide customer base of blue chip construction companies and

contractors, but is continuing to attract new customers. The spread and quality of the customer base, and

continued control of production and delivery, has been proven and is considered key elements to the ongoing

commercial and financial success of the group.

PRINCIPAL RISKS AND UNCERTAINTIES

The UK construction market is showing mixed signals in the current climate but house building appears to

remain buoyant following lifting of lockdown restrictions. The Government's strategy for affordable housing

continues to drive demand in the industry.

The principal risk to the business is managing its growth whilst competing effectively with the group's

competitors. To address these risks the directors are:

- Focusing on and providing a top quality service to existing customers;

- Reviewing costs and reducing them where practicable;

- Implementing a sustainable capital investment programme;

- Assessing production and delivery timeframes and success rates;

- Constantly monitoring the level of staff and increasing or reducing the workforce as necessary to ensure

efficiency;

- Protecting vital supply chains; and

- Enhancing its efforts to ensure that all accessible enquiries that are received are processed with attractive

proposals.

DEVELOPMENT

The group designs, manufactures and erects structural prestressed and precast concrete elements for its

customers and this is expected to continue for the foreseeable future.

The directors acknowledge that there are difficult trading conditions to come and the unexpected nature of

the current situation provides less certainty. The directors are confident that the changes they have made to

the business model in previous years, its success in returning to profitability and continual investment in plant

provide a strong base from which to meet these challenges positively.

ON BEHALF OF THE BOARD:

T A Jobson - Director

29 September 2020

The directors present their report with the financial statements of the company and the group for the year

ended 31 March 2020.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the design, manufacture and erection

of precast concrete elements.

The principal activity of the company is that of a holding company.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2020 (2019: £Nil).

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2019 to the date of

this report.

T A Jobson

D S Frost

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), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland'. 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 ought to have taken as a director in order to make himself aware of any relevant audit information

and to establish that the group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

T A Jobson - Director

29 September 2020

Opinion

We have audited the financial statements of Valerie Coltman Holdings Limited (the 'parent company') and its

subsidiaries (the 'group') for the year ended 31 March 2020 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 31 March 2020 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.

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 four, 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.

Peter Hewston FCA (Senior Statutory Auditor)

for and on behalf of Prime

Chartered Accountants

Statutory Auditor

No. 3 Caroline Court

13 Caroline Street

St Paul's Square

Birmingham

B3 1TR

29 September 2020

TURNOVER

3

9,458,881

8,716,171

Cost of sales

6,974,792

6,955,104

GROSS PROFIT

2,484,089

1,761,067

Administrative expenses

2,035,051

1,952,099

OPERATING PROFIT/(LOSS)

5

449,038

(191,032

)

Interest receivable and similar income

3,870

1,834

452,908

(189,198

)

Interest payable and similar expenses

6

107

98

PROFIT/(LOSS) BEFORE TAXATION

452,801

(189,296

)

Tax on profit/(loss)

7

(270,000

)

-

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

722,801

(189,296

)

Profit/(loss) attributable to:

Owners of the parent

722,801

(189,296

)

PROFIT/(LOSS) FOR THE YEAR

722,801

(189,296

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

722,801

(189,296

)

Total comprehensive income attributable to:

Owners of the parent

722,801

(189,296

)

FIXED ASSETS

Intangible assets

9

60,995

54,253

Tangible assets

10

925,600

691,970

Investments

11

-

-

986,595

746,223

CURRENT ASSETS

Stocks

12

334,345

347,748

Debtors

13

1,885,810

1,394,978

Cash at bank

1,639,582

1,406,051

3,859,737

3,148,777

CREDITORS

Amounts falling due within one year

14

2,699,566

2,492,313

NET CURRENT ASSETS

1,160,171

656,464

TOTAL ASSETS LESS CURRENT LIABILITIES

2,146,766

1,402,687

CREDITORS

Amounts falling due after more than one year

15

(111

)

(1,333

)

PROVISIONS FOR LIABILITIES

18

(522,500

)

(500,000

)

NET ASSETS

1,624,155

901,354

CAPITAL AND RESERVES

Called up share capital

19

900,000

900,000

Retained earnings

20

724,155

1,354

SHAREHOLDERS' FUNDS

1,624,155

901,354

The financial statements were approved by the Board of Directors and authorised for issue on

29 September 2020 and were signed on its behalf by:

T A Jobson - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

458,480

413,873

Investments

11

900,000

900,000

1,358,480

1,313,873

CURRENT ASSETS

Debtors

13

1,077,594

699,236

Cash at bank

271,459

500,811

1,349,053

1,200,047

CREDITORS

Amounts falling due within one year

14

1,371,841

1,186,769

NET CURRENT (LIABILITIES)/ASSETS

(22,788

)

13,278

TOTAL ASSETS LESS CURRENT LIABILITIES

1,335,692

1,327,151

PROVISIONS FOR LIABILITIES

18

522,500

500,000

NET ASSETS

813,192

827,151

CAPITAL AND RESERVES

Called up share capital

19

900,000

900,000

Retained earnings

20

(86,808

)

(72,849

)

SHAREHOLDERS' FUNDS

813,192

827,151

Company's loss for the financial year

(13,959

)

(80,325

)

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2020 and were signed on its behalf by:

T A Jobson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2018

900,000

190,650

1,090,650

Changes in equity

Total comprehensive income

-

(189,296

)

(189,296

)

Balance at 31 March 2019

900,000

1,354

901,354

Changes in equity

Total comprehensive income

-

722,801

722,801

Balance at 31 March 2020

900,000

724,155

1,624,155

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2018

900,000

7,476

907,476

Changes in equity

Total comprehensive income

-

(80,325

)

(80,325

)

Balance at 31 March 2019

900,000

(72,849

)

827,151

Changes in equity

Total comprehensive income

-

(13,959

)

(13,959

)

Balance at 31 March 2020

900,000

(86,808

)

813,192

Cash flows from operating activities

Cash generated from operations

1

635,695

860,605

Interest paid

(107

)

(98

)

Net cash from operating activities

635,588

860,507

Cash flows from investing activities

Purchase of intangible fixed assets

(33,077

)

(38,890

)

Purchase of tangible fixed assets

(371,517

)

(49,330

)

Interest received

3,870

1,834

Net cash from investing activities

(400,724

)

(86,386

)

Cash flows from financing activities

Capital repayments in year

(1,333

)

(1,223

)

Net cash from financing activities

(1,333

)

(1,223

)

Increase in cash and cash equivalents

233,531

772,898

Cash and cash equivalents at beginning of year

2

1,406,051

633,153

Cash and cash equivalents at end of year

2

1,639,582

1,406,051

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2020

2019

£

£

Profit/(loss) before taxation

452,801

(189,296

)

Depreciation charges

164,222

129,189

Land re-instatement costs

22,500

100,000

Finance costs

107

98

Finance income

(3,870

)

(1,834

)

635,760

38,157

Decrease in stocks

13,403

74,088

(Increase)/decrease in trade and other debtors

(220,832

)

316,736

Increase in trade and other creditors

207,364

431,624

Cash generated from operations

635,695

860,605

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 31 March 2020

31.3.20

1.4.19

£

£

Cash and cash equivalents

1,639,582

1,406,051

Year ended 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

1,406,051

633,153

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.19

Cash flow

At 31.3.20

£

£

£

Net cash

Cash at bank

1,406,051

233,531

1,639,582

1,406,051

233,531

1,639,582

Debt

Finance leases

(2,777

)

1,333

(1,444

)

(2,777

)

1,333

(1,444

)

Total

1,403,274

234,864

1,638,138

1.	STATUTORY INFORMATION

Valerie Coltman Holdings Limited 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 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" including the

provisions of Section 1A " Small Entities" and the Companies Act 2006. The financial statements

have been prepared under the historical cost convention.

Valerie Coltman Holdings Limited meets the definition of a qualifying entity under FRS102 and has

therefore taken exemption of the disclosure exemptions available to it in respect of its separate

financial statements, which are presented alongside the consolidated financial statements.

Exemptions have been taken in relation to financial instruments and remuneration of key personnel.

Basis of consolidation

The group financial statements consolidate the financial statements of the company and its subsidiary

undertakings drawn up to 31 March each year. The results of subsidiaries acquired or sold are

consolidated for the periods from or to the date on which control passed.

In 2010, Valerie Coltman Holdings Limited became the parent company of the group. The business

combination was classed as a group reconstruction and accounted for under the merger method, in

accordance with Section 19 of FRS 102. Where necessary, adjustments are made to the financial

statements of subsidiaries to bring the accounting policies used in line with those used by the group.

All inter-group transactions, balances, income and expenses are eliminated on consolidation.

Under S408 of the Companies Act 2006 the company is exempt from the requirement to present its

own profit and loss account. Its profit and loss for the period is shown on page 11 of the financial

statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard

102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose

related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed

within the financial statements.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax. Revenue is

recognised on the completion of each stage of work during a contract.

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.

Freehold property

-

10% on cost

Plant and machinery

-

10-33% on cost

Fixtures and fittings

-

10% on cost

Computer equipment

-

20% on cost

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due

allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling

costs in bringing stocks to their present location and condition.

Financial instruments

(i) Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call

with banks, other short-term liquid investments with original maturities of three months or less, and

bank overdrafts.

(ii) Financial assets and liabilities

All financial assets and liabilities are recognised when the company becomes party to the contractual

provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in

the assets of the company after deducting all its liabilities.