Pave-Aways Holdings (2011) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 07431863 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

FOR

PAVE-AWAYS HOLDINGS (2011) LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of 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

DIRECTORS:

S P Owen

Mrs V L Lawson

REGISTERED OFFICE:

Avenue Mill

Knockin

Oswestry

Shropshire

SY10 8HQ

REGISTERED NUMBER:

07431863 (England and Wales)

AUDITORS:

D.R.E. & Co. (Audit) Limited

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

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

REVIEW OF BUSINESS

The year to date has brought the highest turnover for Pave Aways in its continued 47 year history. The record breaking sales have continued to be delivered to exceptional high standards. The order book and sales figures for 20/21 will reduce due to effects of Brexit and Covid but we will continue to ensure we maintain our employees and supply chain providing support at all times.

Coupled with the existing financial stability, zero borrowing and self-financing approach, Pave Aways is in a stronger position that many of its competitors.

Pave Aways and its Directors continue to reinforce their commitments to its corporate social behaviour and its ethos of adding social value to the community in which its projects are built and in which its staff and their families live.

PRINCIPAL RISKS AND UNCERTAINTIES

The construction industry is still a very competitive market continuing to see larger companies coming into Shropshire, Mid Wales and Telford and compete for work. The effect of Covid is causing uncertainty and increased costs as Pave Aways works to safeguard employees and clients. The effect of Brexit is still not clear.

These are a continuing risk and may result in tenders being unsuccessful in favour of our competitors.

However Pave-Aways Ltd has developed a strong client base and resource team which has seen continued repeat business and contracts. Pave Aways continue to support the local supply chain and communities in which we work to prove our stance and build a lasting legacy where each individual projects is located.

ON BEHALF OF THE BOARD:

S P Owen - Director

22 December 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 civil engineering, building and construction work.

DIVIDENDS

Interim dividends of £4,583.38 per share and £2,000.00 per share were voted on 8th May 2019 and 17th January 2020 respectively. The directors recommend that no final dividend be voted.

Dividend waivers of £251,220 have been made and the total distribution of dividends for the year ended 31 March 2020 was £288,613.

DIRECTORS

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

S P Owen

Mrs V L Lawson

GOING CONCERN

These financial statements have been prepared on the going concern basis as the directors expect the group to continue to operate for the foreseeable future.

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, D.R.E. & Co. (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S P Owen - Director

22 December 2020

Opinion

We have audited the financial statements of Pave-Aways Holdings (2011) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2020 which comprise the Consolidated Statement of 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 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.

Aled Davies FCCA (Senior Statutory Auditor)

for and on behalf of D.R.E. & Co. (Audit) Limited

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

22 December 2020

TURNOVER

29,141,959

21,580,796

Cost of sales

(27,856,594

)

(20,426,301

)

GROSS PROFIT

1,285,365

1,154,495

Administrative expenses

(958,808

)

(1,193,019

)

326,557

(38,524

)

Other operating income

66,895

24,184

OPERATING PROFIT/(LOSS)

5

393,452

(14,340

)

Interest receivable and similar income

8,948

7,363

402,400

(6,977

)

Interest payable and similar expenses

6

-

(70

)

PROFIT/(LOSS) BEFORE TAXATION

402,400

(7,047

)

Tax on profit/(loss)

7

(106,171

)

(21,737

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

296,229

(28,784

)

OTHER COMPREHENSIVE INCOME

Purchase of own shares

-

(865,005

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(865,005

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

296,229

(893,789

)

Profit/(loss) attributable to:

Owners of the parent

296,229

(28,784

)

Total comprehensive income attributable to:

Owners of the parent

296,229

(893,789

)

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

1,073,843

1,134,174

Investments

12

-

-

1,073,843

1,134,174

CURRENT ASSETS

Stocks

13

52,286

65,560

Debtors

14

6,129,942

5,741,416

Cash at bank

2,891,900

3,139,220

9,074,128

8,946,196

CREDITORS

Amounts falling due within one year

15

5,769,527

5,712,911

NET CURRENT ASSETS

3,304,601

3,233,285

TOTAL ASSETS LESS CURRENT LIABILITIES

4,378,444

4,367,459

PROVISIONS FOR LIABILITIES

17

82,861

79,492

NET ASSETS

4,295,583

4,287,967

CAPITAL AND RESERVES

Called up share capital

18

82

82

Share premium

19

24,872

24,872

Capital redemption reserve

19

43

43

Own shares reserves

19

(36

)

(36

)

Retained earnings

19

4,270,622

4,263,006

SHAREHOLDERS' FUNDS

4,295,583

4,287,967

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2020 and were signed on its behalf by:

S P Owen - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

2,763,750

2,763,750

2,763,750

2,763,750

CURRENT ASSETS

Debtors

14

-

416

Cash at bank

132,313

113,527

132,313

113,943

CREDITORS

Amounts falling due within one year

15

1,779,665

1,615,460

NET CURRENT LIABILITIES

(1,647,352

)

(1,501,517

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,116,398

1,262,233

CAPITAL AND RESERVES

Called up share capital

18

82

82

Share premium

19

24,872

24,872

Capital redemption reserve

19

43

43

Own shares reserves

19

(36

)

(36

)

Retained earnings

19

1,091,437

1,237,272

SHAREHOLDERS' FUNDS

1,116,398

1,262,233

Company's profit/(loss) for the financial year

142,778

(119,656

)

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2020 and were signed on its behalf by:

S P Owen - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 April 2018

100

5,294,813

24,872

Changes in equity

Issue of share capital

(18

)

-

-

Dividends

-

(138,000

)

-

Total comprehensive income

-

(893,807

)

-

Balance at 31 March 2019

82

4,263,006

24,872

Changes in equity

Dividends

-

(288,613

)

-

Total comprehensive income

-

296,229

-

Balance at 31 March 2020

82

4,270,622

24,872

Capital

Own

redemption

shares

Total

reserve

reserves

equity

£

£

£

Balance at 1 April 2018

25

(36

)

5,319,774

Changes in equity

Issue of share capital

-

-

(18

)

Dividends

-

-

(138,000

)

Total comprehensive income

18

-

(893,789

)

Balance at 31 March 2019

43

(36

)

4,287,967

Changes in equity

Dividends

-

-

(288,613

)

Total comprehensive income

-

-

296,229

Balance at 31 March 2020

43

(36

)

4,295,583

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 April 2018

100

2,359,951

24,872

Changes in equity

Issue of share capital

(18

)

-

-

Dividends

-

(138,000

)

-

Total comprehensive income

-

(984,679

)

-

Balance at 31 March 2019

82

1,237,272

24,872

Changes in equity

Dividends

-

(288,613

)

-

Total comprehensive income

-

142,778

-

Balance at 31 March 2020

82

1,091,437

24,872

Capital

Own

redemption

shares

Total

reserve

reserves

equity

£

£

£

Balance at 1 April 2018

25

(36

)

2,384,912

Changes in equity

Issue of share capital

-

-

(18

)

Dividends

-

-

(138,000

)

Total comprehensive income

18

-

(984,661

)

Balance at 31 March 2019

43

(36

)

1,262,233

Changes in equity

Dividends

-

-

(288,613

)

Total comprehensive income

-

-

142,778

Balance at 31 March 2020

43

(36

)

1,116,398

Cash flows from operating activities

Cash generated from operations

1

2,780

(358,721

)

Interest paid

-

(70

)

Tax paid

94,435

(195,000

)

Net cash from operating activities

97,215

(553,791

)

Cash flows from investing activities

Purchase of tangible fixed assets

(100,324

)

(144,633

)

Sale of tangible fixed assets

43,193

35,818

Interest received

8,948

7,363

Net cash from investing activities

(48,183

)

(101,452

)

Cash flows from financing activities

Amount introduced by directors

-

398,871

Amount withdrawn by directors

(7,739

)

(240,023

)

Share buyback

-

(865,023

)

Equity dividends paid

(288,613

)

(138,000

)

Net cash from financing activities

(296,352

)

(844,175

)

Decrease in cash and cash equivalents

(247,320

)

(1,499,418

)

Cash and cash equivalents at beginning of year

2

3,139,220

4,638,638

Cash and cash equivalents at end of year

2

2,891,900

3,139,220

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

31.3.20

31.3.19

£

£

Profit/(loss) before taxation

402,400

(7,047

)

Depreciation charges

107,600

117,180

Loss/(profit) on disposal of fixed assets

9,862

(2,014

)

Finance costs

-

70

Finance income

(8,948

)

(7,363

)

510,914

100,826

Decrease/(increase) in stocks

13,274

(55,910

)

Increase in trade and other debtors

(558,237

)

(2,479,659

)

Increase in trade and other creditors

36,829

2,076,022

Cash generated from operations

2,780

(358,721

)

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

2,891,900

3,139,220

Year ended 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

3,139,220

4,638,638

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.19

Cash flow

At 31.3.20

£

£

£

Net cash

Cash at bank

3,139,220

(247,320

)

2,891,900

3,139,220

(247,320

)

2,891,900

Total

3,139,220

(247,320

)

2,891,900

1.	STATUTORY INFORMATION

Pave-Aways Holdings (2011) is a private company limited by shares, incorporated in the UK and registered in England & Wales. The company's registered number and address can be found on the company information page.

The principal place of business is Avenue Mill, Knockin, Oswestry, Shropshire, SY10 8HQ.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The financial statements are presented in Sterling (£), rounded to nearest £1.

Going Concern

The financial statements have been prepared under a going concern basis on the directors expectation that the group will continue to operate in the foreseeable future.

Basis of consolidation

The consolidated financial statements present the results of the parent company and those of it's subsidiaries. All consolidated subsidiaries have coterminous financial year ends. Inter group transactions have been eliminated from the financial statements and subsidiary results have been restated, where possible to reflect comparable accounting policies. The financial statements therefore include:

Pave-Aways Holdings (2011) Ltd (Parent company)

Pave-Aways Ltd (100% subsidiary)

Pave-Aways Trustee Ltd (Dormant 100% subsidiary of Pave-Aways Ltd)

Significant judgements and estimates

The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 14 for the net carrying amount of debtors.

Turnover

Turnover represents net invoiced work done, excluding value added tax. Sales relating to long term contracts are recognised to its stage of completion. Other sales are recognised at the point of completion of work done.

Goodwill

Negative goodwill resulting from the acquisition of the shares in Pave-Aways Ltd in 2011, was written off to reserves in the first year.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on cost and 15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on reducing balance

Computer equipment

-

33% on reducing balance

Freehold property is revalued by the directors at the end of each financial period with depreciation charged to write off the difference in values, down to its estimated realisable value.

Stocks

Stocks and short term 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 includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Financial instruments

Basic financial instruments are recognised at amortised cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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

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 group makes contributions to employee's private pensions schemes and to a company directors' scheme. Costs are allocated against profits as incurred.