Pave-Aways Holdings Limited - Limited company accounts 22.3

REGISTERED NUMBER: 07431863 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR

PAVE-AWAYS HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

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 2022.

REVIEW OF BUSINESS

The year to date has seen the turnover for Pave-Aways Ltd increase and return toward pre-2020 levels despite the

ongoing risks to the business from Covid and Brexit. Pave-Aways Ltd have managed the effects of both by increasing programme planning and communications on site which in turn has improved the output on site without risking the health of our employees and supply chain. Our loyal Clients supported our stance with several projects having an agreed revised completion date with no extra costs claimed from the client. The order book and sales figures for 22/23 continue to show the recovery within Shropshire and Mid Wales with an order book to date of £18 million secured.

During the year, Pave-Aways Ltd maintained the level of direct employees and continued to support its local supply

chain which are both key items for its business. Pave-Aways Ltd remains in a strong financial position with zero

borrowing, it is in a stronger position than many of its competitors. Pave-Aways Ltd and its directors continue to

reinforce their commitment to its corporate social behaviour and its ethos of adding social value to the community in

which its projects are undertaken. This has been demonstrated by its helping of over 40 local small businesses

throughout the counties that it works in.

Key performance indicators

2022

2021

% change

Turnover

£25,353,143

£19,410,405

30.6%

Gross profit

£2,088,298

£1,465,888

42.5%

Shareholders' funds

£5,189,696

£4,963,335

4.6%

Gross margin

8.2%

7.5%

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 to compete for work. The effect of Covid is under control but Brexit still poses the biggest risk to the business with the supply chain increasing the costs of materials with little warning and delivery periods being extended. Proactive programme management and risk control have become key features in our ISO procedures. The risks are being further mitigated by intelligent estimating and not committing to long term tenders.

There is a continuing risk which may result in tenders being unsuccessful in favour of our competitors.

However Pave-Aways Ltd continues to work for a developed and strong client base and resource team which has seen continued repeat business and contracts. Pave-Aways Ltd continues to support the local supply chain, the communities in which it works, and to build a lasting legacy where each individual project is located.

ENVIRONMENTAL POLICY

The group is committed to minimising the impact on the environment of its construction work. In the last 12 months it has introduced baling of plastics and cardboards from site and also electric vehicles.

HEALTH AND SAFETY

It is the group's policy to ensure, as far as reasonably practical, the health and safety and welfare of all of its

employees, subcontractors, clients and visitors and to comply with relevant health and safety legislation. The group employs a full time health and safety officer and has a comprehensive health and safety policy, which is reviewed and updated regularly and risk assessments are undertaken to assess hazards and whom they are likely to affect.

The group also employs a Well-Being Officer to provide mental and physical health support to its workforce and has been recognised by being shortlisted in the Shropshire Chamber of Commerce Awards.

ON BEHALF OF THE BOARD:

S P Owen - Director

17 November 2022

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2022.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of civil engineering, building and construction work.

DIVIDENDS

An interim dividend of £4,583.33 per Ordinary share was voted on 6th April 2021 and £1,612.90 per A share, £1,050 per B share and £150,000 per C share were voted on 21 December 2021. The directors recommend that no final dividend be voted.

Total distribution of dividends for the year ended 31 March 2022 was £1,021,332.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2021 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

17 November 2022

Opinion

We have audited the financial statements of Pave-Aways Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022 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 2022 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

In auditing the financial statements, we have concluded that the directors' 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 group's and the parent 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 directors with respect to going concern are described in the relevant sections of this report.

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 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 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.

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

-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with directors and other

management, and from our commercial knowledge and experience of the client's operating sector;

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial

statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment,

environmental and health and safety legislation;

-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management; and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to

instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and

-reviewing the client's system notes and internal controls.

To address the risk of fraud through management bias and override of controls, we:

-performed analytical procedures to identify any unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias;

-investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-agreeing financial statement disclosures to underlying supporting documentation;

-enquiring of management as to actual and potential litigation and claims

- reviewing correspondence with HMRC.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 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

17 November 2022

TURNOVER

25,353,143

19,410,405

Cost of sales

(23,264,845

)

(17,944,517

)

GROSS PROFIT

2,088,298

1,465,888

Administrative expenses

(858,361

)

(820,480

)

1,229,937

645,408

Other operating income

107,321

439,839

OPERATING PROFIT

5

1,337,258

1,085,247

Interest receivable and similar income

5,728

2,329

1,342,986

1,087,576

Interest payable and similar expenses

6

-

(29

)

PROFIT BEFORE TAXATION

1,342,986

1,087,547

Tax on profit

7

(54,555

)

(98,783

)

PROFIT FOR THE FINANCIAL YEAR

1,288,431

988,764

OTHER COMPREHENSIVE INCOME

Purchase of own shares

-

36

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

36

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,288,431

988,800

Profit attributable to:

Owners of the parent

1,288,431

988,764

Total comprehensive income attributable to:

Owners of the parent

1,288,431

988,800

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

1,016,672

973,423

Investments

12

-

-

1,016,672

973,423

CURRENT ASSETS

Stocks

13

9,350

11,702

Debtors

14

6,378,279

6,577,647

Cash at bank

5,150,158

2,876,794

11,537,787

9,466,143

CREDITORS

Amounts falling due within one year

15

7,258,331

5,405,961

NET CURRENT ASSETS

4,279,456

4,060,182

TOTAL ASSETS LESS CURRENT LIABILITIES

5,296,128

5,033,605

PROVISIONS FOR LIABILITIES

17

106,432

70,270

NET ASSETS

5,189,696

4,963,335

CAPITAL AND RESERVES

Called up share capital

18

46

46

Share premium

19

24,872

24,872

Capital redemption reserve

19

79

79

Retained earnings

19

5,205,437

4,938,338

SHAREHOLDERS' FUNDS

5,230,434

4,963,335

NON-CONTROLLING INTERESTS

(40,738

)

-

TOTAL EQUITY

5,189,696

4,963,335

The financial statements were approved by the Board of Directors and authorised for issue on 17 November 2022 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

1,989

524

Cash at bank

1,041,354

561,643

1,043,343

562,167

CREDITORS

Amounts falling due within one year

15

1,792,046

1,785,809

NET CURRENT LIABILITIES

(748,703

)

(1,223,642

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,015,047

1,540,108

CAPITAL AND RESERVES

Called up share capital

18

46

46

Share premium

19

24,872

24,872

Capital redemption reserve

19

79

79

Retained earnings

19

1,990,050

1,515,111

SHAREHOLDERS' FUNDS

2,015,047

1,540,108

Company's profit for the financial year

1,496,271

744,723

The financial statements were approved by the Board of Directors and authorised for issue on 17 November 2022 and were signed on its behalf by:

S P Owen - Director

Called up

Capital

share

Retained

Share

redemption

capital

earnings

premium

reserve

£

£

£

£

Balance at 1 April 2020

82

4,270,623

24,872

43

Changes in equity

Issue of share capital

(36

)

-

-

-

Dividends

-

(321,013

)

-

-

Total comprehensive income

-

988,728

-

36

Balance at 31 March 2021

46

4,938,338

24,872

79

Changes in equity

Dividends

-

(1,021,332

)

-

-

Total comprehensive income

-

1,288,431

-

-

Balance at 31 March 2022

46

5,205,437

24,872

79

Own

shares

Non-controlling

Total

reserves

Total

interests

equity

£

£

£

£

Balance at 1 April 2020

(36

)

4,295,584

-

4,295,584

Changes in equity

Issue of share capital

-

(36

)

-

(36

)

Dividends

-

(321,013

)

-

(321,013

)

Total comprehensive income

36

988,800

-

988,800

Balance at 31 March 2021

-

4,963,335

-

4,963,335

Changes in equity

Dividends

-

(1,021,332

)

(40,838

)

(1,062,170

)

Total comprehensive income

-

1,288,431

-

1,288,431

Balance at 31 March 2022

-

5,230,434

(40,838

)

5,189,596

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 April 2020

82

1,091,437

24,872

Changes in equity

Issue of share capital

(36

)

-

-

Dividends

-

(321,013

)

-

Total comprehensive income

-

744,687

-

Balance at 31 March 2021

46

1,515,111

24,872

Changes in equity

Dividends

-

(1,021,332

)

-

Total comprehensive income

-

1,496,271

-

Balance at 31 March 2022

46

1,990,050

24,872

Capital

Own

redemption

shares

Total

reserve

reserves

equity

£

£

£

Balance at 1 April 2020

43

(36

)

1,116,398

Changes in equity

Issue of share capital

-

-

(36

)

Dividends

-

-

(321,013

)

Total comprehensive income

36

36

744,759

Balance at 31 March 2021

79

-

1,540,108

Changes in equity

Dividends

-

-

(1,021,332

)

Total comprehensive income

-

-

1,496,271

Balance at 31 March 2022

79

-

2,015,047

Cash flows from operating activities

Cash generated from operations

1

3,439,934

380,095

Interest paid

-

(29

)

Tax paid

16,995

(87,146

)

Net cash from operating activities

3,456,929

292,920

Cash flows from investing activities

Purchase of tangible fixed assets

(166,615

)

(4,545

)

Sale of tangible fixed assets

46,132

8,500

Sale of fixed asset investments

(1

)

-

Interest received

5,728

2,329

Net cash from investing activities

(114,756

)

6,284

Cash flows from financing activities

Amount introduced by directors

1,000

7,739

Amount withdrawn by directors

(7,739

)

(1,000

)

Share buyback

-

(36

)

Dividend paid to minority interest

(40,738

)

-

Equity dividends paid

(1,021,332

)

(321,013

)

Net cash from financing activities

(1,068,809

)

(314,310

)

Increase/(decrease) in cash and cash equivalents

2,273,364

(15,106

)

Cash and cash equivalents at beginning of year

2

2,876,794

2,891,900

Cash and cash equivalents at end of year

2

5,150,158

2,876,794

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

31.3.22

31.3.21

£

£

Profit before taxation

1,342,986

1,087,547

Depreciation charges

81,157

95,231

(Profit)/loss on disposal of fixed assets

(3,922

)

1,235

Finance costs

-

29

Finance income

(5,728

)

(2,329

)

1,414,493

1,181,713

Decrease in stocks

2,352

40,584

Decrease/(increase) in trade and other debtors

199,368

(447,705

)

Increase/(decrease) in trade and other creditors

1,823,721

(394,497

)

Cash generated from operations

3,439,934

380,095

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 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

5,150,158

2,876,794

Year ended 31 March 2021

31.3.21

1.4.20

£

£

Cash and cash equivalents

2,876,794

2,891,900

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.21

Cash flow

At 31.3.22

£

£

£

Net cash

Cash at bank

2,876,794

2,273,364

5,150,158

2,876,794

2,273,364

5,150,158

Total

2,876,794

2,273,364

5,150,158