Fowles Crushed Concrete Limited - Limited company accounts 20.1

REGISTERED NUMBER: 02516587 (England and Wales)

DIRECTOR'S REPORT AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

FOR

FOWLES CRUSHED CONCRETE LIMITED

Page

Company Information

1

Director's Report

2

Independent Auditors' Report

4

Statement of Income and Retained Earnings

6

Balance Sheet

7

Notes to the Financial Statements

8

DIRECTOR:

Mr W T Fowles

REGISTERED OFFICE:

Puerorum House

26 Greet Queen Street

London

WC2B 5BL

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

SOLICITORS:

Geoffrey Bryant & Company LLP

54 High Street

Eton

Windsor

SL4 6BL

The director presents his report with the financial statements of the company for the year ended 30 September 2020.

PRINCIPAL ACTIVITY

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

DIRECTORS

Mr W T Fowles has held office during the whole of the period from 1 October 2019 to the date of this report.

Other changes in directors holding office are as follows:

Mr T Fowles - deceased 17 July 2020

GOING CONCERN

At the date of approval of the accounts, the UK is experiencing high levels of economic, social and political uncertainty surrounding Covid-19. As such, in assessing the company's ability to adopt the going concern basis in preparation of the financial statements, the director has considered the financial impact that Covid-19 may have on the business.

As part of this assessment, the director has taken into account the expected business activity levels in light of Covid-19. The director will continue to monitor the situation closely, but at the date of signing the accounts, given the current cash position of the company and the capacity to raise funds to mitigate the impact of any issues arising, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The director has therefore prepared the financial statements on a going concern basis.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing 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.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mr W T Fowles - Director

15 July 2021

Opinion

We have audited the financial statements of Fowles Crushed Concrete Limited (the 'company') for the year ended 30 September 2020 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 Section 1A '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 2020 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The director is responsible for the other information. The other information comprises the information in 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 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Director's Report has 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 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; or

-	the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Director's Report.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page two, 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.

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

15 July 2021

TURNOVER

10,993,959

9,610,865

Cost of sales

7,758,390

6,431,397

GROSS PROFIT

3,235,569

3,179,468

Administrative expenses

2,561,708

2,584,528

673,861

594,940

Other operating income

10,788

-

OPERATING PROFIT

5

684,649

594,940

Interest receivable and similar income

17

20

684,666

594,960

Interest payable and similar expenses

11,392

9,651

PROFIT BEFORE TAXATION

673,274

585,309

Tax on profit

136,983

113,625

PROFIT FOR THE FINANCIAL YEAR

536,291

471,684

Retained earnings at beginning of year

6,851,877

6,380,193

RETAINED EARNINGS AT END OF YEAR

7,388,168

6,851,877

FIXED ASSETS

Tangible assets

6

601,903

688,137

CURRENT ASSETS

Debtors

7

5,840,590

6,786,527

Cash at bank

1,768,604

246,011

7,609,194

7,032,538

CREDITORS

Amounts falling due within one year

8

750,515

729,432

NET CURRENT ASSETS

6,858,679

6,303,106

TOTAL ASSETS LESS CURRENT LIABILITIES

7,460,582

6,991,243

CREDITORS

Amounts falling due after more than one year

9

(4,665

)

(60,643

)

PROVISIONS FOR LIABILITIES

(67,747

)

(78,721

)

NET ASSETS

7,388,170

6,851,879

CAPITAL AND RESERVES

Called up share capital

11

2

2

Retained earnings

7,388,168

6,851,877

SHAREHOLDERS' FUNDS

7,388,170

6,851,879

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the director and authorised for issue on 15 July 2021 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

The financial statements of Fowles Crushed Concrete Limited have been prepared in compliance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" including the provisions of Section 1A "Small Entities" ("FRS 102 1A") 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 2020 the company had net current assets of £6,858,679. 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 £3,799,593 is due from group companies. These companies have confirmed their current intention to provide support to the company for the twelve-month period from the date of the signing of these financial statements.

Covid is one of the most significant economic events for the world and its effects are subject to unprecedented levels of uncertainty of outcomes with a full range of possible effects unknown. The director has assessed the company's financial position and has carried out a detailed review of the potential implications of the impact that Covid may have on the business. After carrying out this review, the director has a reasonable expectation that the company will continue to operate for the foreseeable future, and as such have continued to adopt the going concern basis of accounting in preparing 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.

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 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2019 - 9 ) .

5.	OPERATING PROFIT

The operating profit is stated after charging:

2020

2019

£

£

Depreciation - owned assets

44,964

41,460

Depreciation - assets on hire purchase contracts

43,680

51,388

Loss on disposal of fixed assets

16,596

-

Auditors' remuneration

7,650

7,600

6.	TANGIBLE ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 October 2019

198,239

831,446

1,029,685

Additions

5,135

41,371

46,506

Disposals

-

(115,000

)

(115,000

)

At 30 September 2020

203,374

757,817

961,191

DEPRECIATION

At 1 October 2019

5,435

336,113

341,548

Charge for year

8,135

80,509

88,644

Eliminated on disposal

-

(70,904

)

(70,904

)

At 30 September 2020

13,570

345,718

359,288

NET BOOK VALUE

At 30 September 2020

189,804

412,099

601,903

At 30 September 2019

192,804

495,333

688,137

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

Plant and

machinery

etc

£

COST

At 1 October 2019

and 30 September 2020

403,045

DEPRECIATION

At 1 October 2019

111,845

Charge for year

43,680

At 30 September 2020

155,525

NET BOOK VALUE

At 30 September 2020

247,520

At 30 September 2019

291,200

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

1,641,741

1,153,419

Amounts owed by group undertakings

3,799,593

5,348,303

Other debtors

399,256

284,805

5,840,590

6,786,527

Bad debts written off against trade debtors in the year £17,881 (2019 - £1,591).

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

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Hire purchase contracts

55,979

55,979

Trade creditors

556,932

377,974

Taxation and social security

83,289

231,883

Other creditors

54,315

63,596

750,515

729,432

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Hire purchase contracts

4,665

60,643

10.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Hire purchase contracts

60,644

116,622

The hire purchase contracts are secured on the assets concerned.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

2

Ordinary shares

£1

2

2

12.	PENSION COMMITMENTS

At 30 September 2020, included in other creditors falling due within one year are unpaid contributions of £888 (2019 - £Nil) due to a defined contribution pension scheme.

13.	CONTINGENT LIABILITIES

There is a cross guarantee between group companies, including Fowles Crushed Concrete Limited, as security against the bank loan for the purchase of the site from which the group operates.

14.	OTHER FINANCIAL COMMITMENTS

At the balance sheet date, the company had total financial commitments which are not included in the balance sheet of £331,698 (2019 - £450,392), of which an amount of £152,960 (2019 - £150,213) is committed to be paid within one year.

15.	PARENT AND ULTIMATE CONTROLLING PARTY