Fowles Crushed Concrete Limited - Limited company accounts 20.1

REGISTERED NUMBER: 02516587 (England and Wales)

STRATEGIC REPORT, DIRECTOR'S REPORT AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

FOR

FOWLES CRUSHED CONCRETE LIMITED

Page

Company Information

1

Strategic Report

2

Director's Report

3

Independent Auditors' Report

4

Statement of Income and Retained Earnings

7

Balance Sheet

8

Notes to the Financial Statements

9

DIRECTOR:

Mr W T Fowles

REGISTERED OFFICE:

Hythe End Farm

Hythe End Road

Wraysbury

Middlesex

TW19 5AW

REGISTERED NUMBER:

02516587 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Jeremy Laurence Hyde FCCA

AUDITORS:

CG LEE Limited

Chartered Certified Accountants

Statutory Auditors

Ingram House

Meridian Way

Norwich

Norfolk

NR7 0TA

BANKERS:

NatWest Bank plc

135 Bishopsgate

London

EC2M 3UR

SOLICITORS:

Geoffrey Bryant & Company LLP

54 High Street

Eton

Windsor

SL4 6BL

The director presents his strategic report for the year ended 30 September 2021.

BUSINESS REVIEW

The principal activities of the company were that of the provision of waste processing and haulage. The company processes waste material from sites throughout London and the Home Counties.

The director is satisfied with the activity levels and performance achieved during the year under review in the context of the waste recycling sector, given the market conditions prevalent in that sector during the period.

FINANCIAL HIGHLIGHTS

The key performance indicators for the company are turnover, gross profit and operating profit. The relevant indicators are shown below, and they are subject to regular review.

2021

2020

2019

Turnover £'000

18,802

10,994

9,611

Gross profit £'000

4,473

3,236

3,179

Gross margin %

23.8

29.4

33.1

Operating profit £'000

1,777

685

595

Operating profit margin %

9.5

6.2

6.2

FUTURE OUTLOOK

The waste processing and recycling sector continues to be robust and the directors are taking positive steps to increase market share in the current areas of operation.

FINANCIAL RISK MANAGEMENT

The company is exposed to a variety of financial risks resulting from its operational activities. The company's risk management is coordinated with key management personnel, focusing on actively securing the company's short to medium term cash flows.

Liquidity and credit risk

At 30 September 2021, the company had a cash balance which the director believes is sufficient to maintain robust liquidity should the company have a sudden downturn in sales. The company reviews its working capital requirement on a regular basis to ensure it meets the needs of the growing business.

The company sells to most of its customers on customary credit terms and is, as a result, exposed to the usual credit risk and cash flow risk associated with this form of trading.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the company are:

Environmental issues and regulatory controls

The most significant risk facing the company has been defending its ability to trade fully from a group company's recycling site.

Operational health and safety

Failure to maintain a trained workforce could adversely affect the company, and health and safety is reviewed on a regular basis.

Interest risk

Interest rate risk reflects the company exposure to fluctuations in interest rates. The risk arises because the company's floating rate bank loan bears interest based on LIBOR and the company has a cross guarantee regarding this.

ON BEHALF OF THE BOARD:

Mr W T Fowles - Director

16 June 2022

The director presents his report with the financial statements of the company for the year ended 30 September 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of waste processing and recycling.

DIVIDENDS

Particulars of dividends paid are detailed in note 11 to the financial statements

DIRECTOR

Mr W T Fowles held office during the whole of the period from 1 October 2020 to the date of this report.

GOING CONCERN

The director has a reasonable expectation that the company has adequate resources to continue in operational existence for the duration of the going concern period despite the ongoing uncertainties surrounding the Covid-19 pandemic and Brexit.

In considering whether the company's financial statements can be prepared on a going concern basis, the director has assessed the expected business activity level of the company together with factors likely to affect its performance, financial position and capacity to raise funds.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is 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 he 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 company's auditors are aware of that information.

AUDITORS

CG LEE Limited, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with Section 487(2) of the Companies Act 2006 unless the company receives notice under Section 488(1) of the Act.

ON BEHALF OF THE BOARD:

Mr W T Fowles - Director

16 June 2022

Opinion

We have audited the financial statements of Fowles Crushed Concrete Limited (the 'company') for the year ended 30 September 2021 which comprise the Statement of Income and Retained Earnings, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2021 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

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

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Director's Report, but does not include the financial statements and our Auditors' Report thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Director's Report 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 Director's Report.

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

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

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

-	certain disclosures of director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and tax legislation, and we considered the extent to which non­ compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

-

discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation;

-

evaluating management's controls designed to prevent and detect irregularities;

-

identifying and testing of journal entries for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; and

-

reviewing significant accounting estimates for management bias.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 Auditors' Report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Jeremy Laurence Hyde FCCA (Senior Statutory Auditor)

for and on behalf of CG LEE Limited

Chartered Certified Accountants

Statutory Auditors

Ingram House

Meridian Way

Norwich

Norfolk

NR7 0TA

16 June 2022

TURNOVER

5

18,802,332

10,993,959

Cost of sales

14,329,564

7,758,390

GROSS PROFIT

4,472,768

3,235,569

Administrative expenses

2,696,040

2,561,708

1,776,728

673,861

Other operating income

-

10,788

OPERATING PROFIT

8

1,776,728

684,649

Interest receivable and similar income

9,018

17

1,785,746

684,666

Interest payable and similar expenses

9

9,651

11,392

PROFIT BEFORE TAXATION

1,776,095

673,274

Tax on profit

10

130,600

136,983

PROFIT FOR THE FINANCIAL YEAR

1,645,495

536,291

Retained earnings at beginning of year

7,388,168

6,851,877

Dividends

11

(264,000

)

-

RETAINED EARNINGS AT END OF YEAR

8,769,663

7,388,168

FIXED ASSETS

Tangible assets

12

660,907

601,903

CURRENT ASSETS

Debtors

13

5,680,341

5,840,590

Cash at bank and in hand

3,283,372

1,768,604

8,963,713

7,609,194

CREDITORS

Amounts falling due within one year

14

769,830

750,515

NET CURRENT ASSETS

8,193,883

6,858,679

TOTAL ASSETS LESS CURRENT LIABILITIES

8,854,790

7,460,582

CREDITORS

Amounts falling due after more than one year

15

-

(4,665

)

PROVISIONS FOR LIABILITIES

18

(85,125

)

(67,747

)

NET ASSETS

8,769,665

7,388,170

CAPITAL AND RESERVES

Called up share capital

19

2

2

Retained earnings

20

8,769,663

7,388,168

SHAREHOLDERS' FUNDS

8,769,665

7,388,170

The financial statements were approved by the director and authorised for issue on 16 June 2022 and were signed by:

Mr W T Fowles - Director

1.	STATUTORY INFORMATION

Fowles Crushed Concrete 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 Company Information page.

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

These financial statements are prepared on a going concern basis, under the historical cost convention. The financial statements are presented in pound sterling which is the company's functional currency. All amounts have been rounded to the nearest £, unless indicated otherwise.

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

Going concern

As at 30 September 2021 the company had net current assets of £8,193,883. The following matter has been considered by the directors in determining the appropriateness of the going concern basis of preparation in the financial statements:

(i)

an amount of £2,794,858 is due from group companies. The company has confirmed its current intention to provide support to these companies for the twelve-month period from the date of the signing of these financial statements.

The director has a reasonable expectation that the company has adequate resources to continue in operational existence for the duration of the going concern period despite the ongoing uncertainties surrounding the Covid-19 pandemic and Brexit.

In considering whether the company's financial statements can be prepared on a going concern basis, the director has assessed the expected business activity level of the company together with factors likely to affect its performance, financial position and capacity to raise funds.

Exemption for qualifying entities under frs 102

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of the company's ultimate parent Fowles Holdings Limited.

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 headed by Fowles Holdings Limited.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of value added tax and trade discounts.

Employee benefits

Short term benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense in the period in which the service is received.

Tangible assets

Tangible assets are recorded at cost less accumulated depreciation. Cost includes the original purchase price of the asset plus costs attributable to bringing the asset to its working condition for its intended use. Depreciation is charged from the time when tangible assets are brought into use and is calculated so as to write off the cost of the fixed assets, less their estimated residual values, over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are as follows:

Freehold property

- 4% straight line

Plant and machinery etc

- 15% on reducing balance

Government grants

Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grant will be received. These grants are recognised in the income statement on a systematic basis over the periods in which the related costs towards which they are intended to compensate are recognised as expenses.

Coronavirus Job Retention Scheme (CJRS)

Grants received in relation to the government's Coronavirus Job Retention Scheme are recognised within other operating income. The grant is accounted for on the accruals basis once the related payroll return has been submitted.

Trade and other debtors

Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

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.

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.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical judgements in applying the company's accounting policies

There are no critical judgements in applying the company's accounting policies.

Key accounting estimates and assumptions

The company 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.

Depreciation of tangible assets

An allowance for depreciation is made against tangible assets and charged to profit or loss over the useful economic lives of the assets. The useful economic life assessment of an asset is based on the time in which benefits of the asset are realised to the company. See note 12 for the net carrying value of the tangible assets, and note 3 for the useful economic lives for each class of assets.

Impairment of debtors

The directors make an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, the directors consider factors including the credit worthiness and financial conditions of customers. See note 13 for the net carrying amount of the debtors and associated impairment provision.

Going concern

The directors make an estimate of the future performance of the company in order to prepare the financial statements under the going concern methodology. When assessing the future performance, the directors considers financial projections which reflect the current and expected market conditions, operational cash flow requirements and financing opportunities. See note 3 for detailed consideration of going concern.

5.

TURNOVER

The directors are of the opinion that there is only one category of business which all arose within the United Kingdom and consequently no segmental analysis by activity has been provided.

6.

EMPLOYEES

2021

2020

£

£

Wages and salaries

247,460

202,848

Social security costs

23,535

18,212

Other pension costs

5,676

4,551

276,671

225,611

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

2021

2020

Administrative staff

9

8

7.	DIRECTORS' EMOLUMENTS

2021

2020

£

£

Directors' remuneration

33,768

33,768

Directors' pension contributions to money purchase schemes

826

827

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

Key management personnel compensation

All key management personnel are considered to be directors. As such, the key management personnel compensation is equivalent to the directors' emoluments above.

8.	OPERATING PROFIT

The operating profit is stated after charging:

2021

2020

£

£

Depreciation - owned assets

55,576

44,964

Depreciation - assets on hire purchase contracts

37,128

43,680

Loss on disposal of fixed assets

-

16,596

Auditors' remuneration

7,450

7,650

Auditors remuneration re: non-audit services

12,716

17,264

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

£

Other interest payable

-

1,741

Hire purchase

9,651

9,651

9,651

11,392

10.

TAXATION

Analysis of the tax charge

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

2021

2020

£

£

Current tax:

UK corporation tax

345,926

147,508

Adjustments in respect of prior years

(232,704

)

449

Total current tax

113,222

147,957

Deferred tax:

Accelerated capital allowances

17,378

(10,974

)

Tax on profit

130,600

136,983

UK corporation tax has been charged at 19% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021

2020

£

£

Profit before tax

1,776,095

673,274

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

337,458

127,922

Effects of:

Expenses not deductible for tax purposes

3,295

8,730

Adjustments to tax charge in respect of previous periods

(232,704

)

449

Impact of deferred tax rate change

20,430

-

Other tax adjustments

2,121

(118

)

Total tax charge

130,600

136,983

Factors that may affect future, current and total tax charges

An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on 24 May 2021. This change has been taken into account in measuring deferred tax assets and liabilities at the balance sheet date. These changes are not anticipated to have a material impact on the company's financial statements in future years.

11.

DIVIDENDS

2021

2020

£

£

Ordinary shares of £1 each

Interim

264,000

-

12.	TANGIBLE ASSETS

Freehold

Plant and

property

machinery

Totals

£

£

£

COST

At 1 October 2020

203,374

757,817

961,191

Additions

-

151,708

151,708

At 30 September 2021

203,374

909,525

1,112,899

DEPRECIATION

At 1 October 2020

13,570

345,718

359,288

Charge for year

8,135

84,569

92,704

At 30 September 2021

21,705

430,287

451,992

NET BOOK VALUE

At 30 September 2021

181,669

479,238

660,907

At 30 September 2020

189,804

412,099

601,903

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST

At 1 October 2020

and 30 September 2021

403,045

DEPRECIATION

At 1 October 2020

155,525

Charge for year

37,128

At 30 September 2021

192,653

NET BOOK VALUE

At 30 September 2021

210,392

At 30 September 2020

247,520

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

2,298,893

1,641,741

Amounts owed by group undertakings

2,794,858

3,799,593

Other debtors

30,000

36,222

Directors' current accounts

295,326

217,000

Corporation tax

108,730

-

Prepayments and accrued income

152,534

146,034

5,680,341

5,840,590

Trade debtors are stated after provisions for impairment of £nil (2020 - £15,076).

Amounts owed by group undertakings are unsecured, interest free and have no fixed date of repayment.

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Hire purchase contracts (see note 16)

4,665

55,979

Trade creditors

597,567

556,932

Amounts owed to group undertakings

11,589

-

Corporation tax

-

60,927

Social security and other taxes

5,968

3,614

VAT

87,716

18,748

Other creditors

-

888

Accrued expenses

62,325

53,427

769,830

750,515

Amounts owed to group undertakings are unsecured, interest free and have no fixed date of payment.

15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Hire purchase contracts (see note 16)

-

4,665

16.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2021

2020

£

£

Net obligations repayable:

Within one year

4,665

55,979

Between one and five years

-

4,665

4,665

60,644

17.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Hire purchase contracts

4,665

60,644

The hire purchase contracts are secured on the assets concerned.

18.	PROVISIONS FOR LIABILITIES

2021

2020

£

£

Deferred tax

Accelerated capital allowances

85,125

67,747

Deferred

tax

£

Balance at 1 October 2020

67,747

Charge to Statement of Comprehensive Income during year

17,378

Balance at 30 September 2021

85,125

Deferred tax has been provided at 19% or 25% in accordance with the expected timing of the reversal. The deferred tax liability expected to reverse in 2022 is £21,142. This primarily relates to the reversal of timing differences on capital allowances.