GRP Construction Products Limited Group accounts (Group and Company)

GRP CONSTRUCTION PRODUCTS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 13487827

GRP Construction Products Limited

Financial Statements

31 December 2022

GRP Construction Products Limited

Financial Statements

Period from 1 July 2021 to 31 December 2022

Contents	Pages

Officers and professional advisers	1

Strategic report	2

Directors' report	3 to 5

Independent auditor's report to the members	6 to 9

Consolidated statement of comprehensive income	10

Consolidated statement of financial position	11

Company statement of financial position	12

Consolidated statement of changes in equity	13

Company statement of changes in equity	14

Consolidated statement of cash flows	15

Notes to the financial statements	16 to 28

GRP Construction Products Limited

Officers and Professional Advisers

The board of directors	C Bainbridge
	L Francis
	M Wilcox

Registered office	Unit 3 Ring Road
	Zone 2 Burntwood Business Park
	Burntwood
	Staffordshire
	WS7 3JQ

Auditor	BSN Associates Limited
	Chartered accountants & statutory auditor
	3B Swallowfield Courtyard
	Wolverhampton Road
	Oldbury
	West Midlands
	B69 2JG

GRP Construction Products Limited

Strategic Report

Period from 1 July 2021 to 31 December 2022

On the 12 January 2022 the company acquired Filon GRP Limited and its subsidiaries. The principal activity of the group during the period was the manufacture of glass reinforced polyester sheeting. We can report that 2022 was a challenging period due to a combination of raw material supply and increased prices, however due to our strategy in place around raw material supply this enabled the group to benefit from additional orders from both new and existing customers that our competitors couldn't meet. In addition we also managed to pass on some of the price increases to our customers. As a result turnover was strong and increased on the previous year by 38.2% at subsidiary level. The group achieved a profit before taxation in the financial period of which £336,000 was from monies received for a Covid insurance claim and £914,000 is due to the negative goodwill on the acquisition of the group, taking these into account profit before taxation is still strong. The group is pleased with its performance during the year and remains positive despite the challenging economic conditions which face the market. The group saw continued interest in its innovative roof refurbishment products along with the introduction of new and retention of existing customers together with additions to product lines. The group will continue to pursue new business opportunities and continue its research and development programme whilst concentrating on its core capabilities. Our growth strategy is all about careful, consistent and considered development within the industry. Although there are potential external threats, the group is actively and successfully seeking customers in alternative market sectors to reduce the reliance on its traditional core business of industrial roofing. The directors measure the business's financial performance against certain key performance indicators (KPIs). These KPIs include sales level, gross profit margin and added value. The gross profit margin for 2022 was 39.4%.

This report was approved by the board of directors on 3 May 2023 and signed on behalf of the board by:

M Wilcox

Director

Registered office:

Unit 3 Ring Road

Zone 2 Burntwood Business Park

Burntwood

Staffordshire

WS7 3JQ

GRP Construction Products Limited

Directors' Report

Period from 1 July 2021 to 31 December 2022

The directors present their report and the financial statements of the group for the period ended 31 December 2022 .

Directors

The directors who served the company during the period were as follows:

C Bainbridge	(Appointed 12 January 2022)
L Francis	(Appointed 1 July 2021)
M Wilcox	(Appointed 12 January 2022)

Dividends

A dividend has been paid during the year totalling £100,000. The directors do not recommend the payment of any final dividends.

Future developments

The directors are confident about the future and continued success of the group. Turnover levels are expected to continue to increase with similar gross profit margins being retained. The group should continue to be profitable in the next financial year.

Financial instruments

The main risks that the group is exposed to include credit risk, interest rate risk and price risk. The directors monitor these risks on a regular basis and take the most appropriate course of action.

The group insures its customers debts reducing its exposure to credit risk, any customers that cannot be insured are reviewed by the directors and assessed on an individual basis as to whether advance payment or credit will be given. All such customers are reviewed on a regular basis by the directors.

The group has facilities in place with its bank which therefore minimises its exposure to interest rate risk, subject to any movement in the bank base rate.

The group is exposed to fluctuations in both market prices and availability of supply of materials from its suppliers to mitigate this the group diversifies its risk by using several suppliers for each type of raw material and regularly agrees prices with its suppliers going forward.

Events after the end of the reporting period

No events have occurred since the reporting date that require adjustment or disclosure in the accounts.

Research and development

The group has continued to carry out research and development activities in the period to enable it to maintain its position in the market place with the product range and new and innovative ideas that it develops.

Disclosure of information in the strategic report

The strategic report is detailed on page 2 of the financial statements.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial period. 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 group and the company and 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 judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.

This report was approved by the board of directors on 3 May 2023 and signed on behalf of the board by:

M Wilcox

Director

Registered office:

Unit 3 Ring Road

Zone 2 Burntwood Business Park

Burntwood

Staffordshire

WS7 3JQ

GRP Construction Products Limited

Independent Auditor's Report to the Members of GRP Construction Products Limited

Period from 1 July 2021 to 31 December 2022

Opinion

We have audited the financial statements of GRP Construction Products Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2022 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, 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 FRS 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's affairs as at 31 December 2022 and of the group's profit for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's 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 or 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement, 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 is 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.

Auditor's 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 auditor’s 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. 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: Irregularities that result from fraud might be inherently more difficult than irregularities that result from error, which gives risk to a risk of material misstatement. We are of the opinion that the planned audit approach, the documentation and interrogation of the entity's controls means that the audit procedures carried out were capable of detecting irregularities, including fraud. We have also reviewed financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We have audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. We have also made enquiries of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 auditor's 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.

Hannah Justice FCA FCCA

(Senior Statutory Auditor)

For and on behalf of

BSN Associates Limited

Chartered accountants & statutory auditor

3B Swallowfield Courtyard

Wolverhampton Road

Oldbury

West Midlands

B69 2JG

3 May 2023

GRP Construction Products Limited

Consolidated Statement of Comprehensive Income

Period from 1 July 2021 to 31 December 2022

		Period from
		1 Jul 21 to
		31 Dec 22
Note		£000
Turnover	4	17,064

Raw material and consumables		9,349
Change in stocks of finished goods and work in progress		( 313)
Staff costs	7	2,832
Depreciation and other amounts written off tangible and intangible fixed assets		( 835)
Other operating expenses		2,713
		--------
Operating profit	5	3,318

Other interest receivable and similar income	9	1
Amounts written off investments		242
Interest payable and similar expenses	10	74
		--------
Profit before taxation		3,003

Tax on profit

	11	439
		-------
Profit for the financial period and total comprehensive income		2,564
		-------

All the activities of the group are from continuing operations.

GRP Construction Products Limited

Consolidated Statement of Financial Position

31 December 2022

	31 Dec 22
Note	£000

Fixed assets

Tangible assets	14	1,962

Current assets

Stocks	16	1,757
Debtors	17	3,134
Cash at bank and in hand		1,107
		-------
		5,998

Creditors: amounts falling due within one year	18	3,461
		-------
Net current assets		2,537
		-------
Total assets less current liabilities		4,499

Creditors: amounts falling due after more than one year	19	1,317

Provisions	20	218
		-------
Net assets		2,964
		-------

Capital and reserves

Called up share capital	24	500
Profit and loss account	25	2,464
		-------
Shareholders funds		2,964
		-------

These financial statements were approved by the board of directors and authorised for issue on 3 May 2023 , and are signed on behalf of the board by:

L Francis

Director

Company registration number: 13487827

GRP Construction Products Limited

Company Statement of Financial Position

31 December 2022

	31 Dec 22
Note	£000

Fixed assets

Investments	15	5,043

Creditors: amounts falling due within one year	18	4,543
		-------
Net current liabilities		4,543
		-------
Total assets less current liabilities		500
		----

Capital and reserves

Called up share capital	24	500
		----
Shareholders funds		500
		----

The profit for the financial period of the parent company was £ 100,000 .

These financial statements were approved by the board of directors and authorised for issue on 3 May 2023 , and are signed on behalf of the board by:

L Francis

Director

Company registration number: 13487827

GRP Construction Products Limited

Consolidated Statement of Changes in Equity

Period from 1 July 2021 to 31 December 2022

		Called up share capital	Profit and loss account	Total
		£000	£000	£000
At 1 July 2021		–	–	–

Profit for the period			2,564	2,564
		----	-------	-------
Total comprehensive income for the period		–	2,564	2,564

Issue of shares		500	–	500
Dividends paid and payable	12	–	( 100)	( 100)
		----	----	----
Total investments by and distributions to owners		500	( 100)	400

		----	-------	-------
At 31 December 2022		500	2,464	2,964
		----	-------	-------

GRP Construction Products Limited

Company Statement of Changes in Equity

Period from 1 July 2021 to 31 December 2022

		Called up share capital	Profit and loss account	Total
		£000	£000	£000
At 1 July 2021		–	–	–

Profit for the period			100	100
		----	----	----
Total comprehensive income for the period		–	100	100

Issue of shares		500	–	500
Dividends paid and payable	12	–	( 100)	( 100)
		----	----	----
Total investments by and distributions to owners		500	( 100)	400

		----	----	----
At 31 December 2022		500	–	500
		----	----	----

GRP Construction Products Limited

Consolidated Statement of Cash Flows

Period from 1 July 2021 to 31 December 2022

	31 Dec 22
	£000

Cash flows from operating activities

Profit for the financial period	2,564

Adjustments for:
Depreciation of tangible assets	91
Amortisation of intangible assets	( 914)
Amounts written back to investments	242
Other interest receivable and similar income	( 1)
Interest payable and similar expenses	74
Gains on disposal of tangible assets	( 12)
Tax on profit	439
Accrued expenses	7

Changes in:
Stocks	( 598)
Trade and other debtors	( 1,587)
Trade and other creditors	1,460
Provisions and employee benefits	12
	-------
Cash generated from operations	1,777

Interest paid	( 74)
Interest received	1
Tax paid	( 180)
	-------
Net cash from operating activities	1,524
	-------

Cash flows from investing activities

Purchase of tangible assets	( 179)
Proceeds from sale of tangible assets	27
Acquisition of subsidiaries	( 2,217)
	-------
Net cash used in investing activities	( 2,369)
	-------

Cash flows from financing activities

Proceeds from issue of ordinary shares	500
Proceeds from borrowings	2,200
Repayments of borrowings	( 698)
Dividends paid	( 50)
	-------
Net cash from financing activities	1,952
	-------

Net increase in cash and cash equivalents	1,107
Cash and cash equivalents at beginning of period	–
	-------
Cash and cash equivalents at end of period	1,107
	-------

GRP Construction Products Limited

Notes to the Financial Statements

Period from 1 July 2021 to 31 December 2022

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 3 Ring Road, Zone 2 Burntwood Business Park, Burntwood, Staffordshire, WS7 3JQ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Consolidation

The financial statements consolidate the financial statements of GRP Construction Products Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the period are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported about the assets and liabilities of the group that are not readily apparent from other sources. These estimates and judgements are continually reviewed and are based on experience and other relevant factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are no key estimations or judgements that have been made by management in preparing these financial statements that would have a material impact on the assets and liabilities of the group .

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably .

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill	-	Negative goodwill written off in full
Development costs	-	2 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research and development

Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	2% straight line
Plant and machinery	-	7.5% - 25% Straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.

Investments in joint ventures

Investments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the joint venture.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	Period from
	1 Jul 21 to
	31 Dec 22
	£000
Sale of goods	17,064
	--------

The turnover is attributable to the one principal activity of the group. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	Period from
	1 Jul 21 to
	31 Dec 22
	£000
United Kingdom	16,961
Overseas	103
	--------
	17,064
	--------

5. Operating profit

Operating profit or loss is stated after charging/crediting:

	Period from
	1 Jul 21 to
	31 Dec 22
	£000
Gains on disposal of tangible assets	( 12)
Research and development expenditure written off	13
Auditors remuneration	15
Accountancy services	1
Tax advisory services	3
Operating lease rentals	53
	----

6. Auditor's remuneration

	Period from
	1 Jul 21 to
	31 Dec 22
	£000
Fees payable for the audit of the financial statements	15
	----

Fees payable to the company's auditor and its associates for other services:

Taxation advisory services	3
Other non-audit services	1
	----
	4
	----

7. Staff costs

The average number of persons employed by the group during the period, including the directors, amounted to:

	31 Dec 22
	No.
Production staff	42
Administrative staff	36
	----
	78
	----

The aggregate payroll costs incurred during the period, relating to the above, were:

	Period from
	1 Jul 21 to
	31 Dec 22
	£000
Wages and salaries	2,489
Social security costs	266
Other pension costs	77
	-------
	2,832
	-------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	Period from
	1 Jul 21 to
	31 Dec 22
	£000
Remuneration	226
Company contributions to defined contribution pension plans	10
	----
	236
	----

The number of directors who accrued benefits under company pension plans was as follows:

	31 Dec 22
	No.
Defined contribution plans	3
	----

Remuneration of the highest paid director in respect of qualifying services:

	Period from
	1 Jul 21 to
	31 Dec 22
	£000
Aggregate remuneration	93
Company contributions to defined contribution pension plans	5
	----
	98
	----

9. Other interest receivable and similar income

	Period from
	1 Jul 21 to
	31 Dec 22
	£000
Interest on cash and cash equivalents	1
	----

10. Interest payable and similar expenses

	Period from
	1 Jul 21 to
	31 Dec 22
	£000
Interest on banks loans and overdrafts	74
	----

11. Tax on profit

Major components of tax income

	Period from
	1 Jul 21 to
	31 Dec 22
	£000

Current tax:

UK current tax income	413
Adjustments in respect of prior periods	2
	----
Total current tax	415
	----

Deferred tax:

Origination and reversal of timing differences	24
	----
Tax on profit	439
	----

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the period is lower than the standard rate of corporation tax in the UK of 19 %.

	Period from
	1 Jul 21 to
	31 Dec 22
	£000
Profit on ordinary activities before taxation	3,003
	-------
Profit on ordinary activities by rate of tax	571
Adjustment to tax charge in respect of prior periods	2
Effect of expenses not deductible for tax purposes	9
Effect of capital allowances and depreciation	( 4)
Research and development relief	( 11)
Release of negative goodwill	( 174)
Impairment of investment	46
	-------
Tax on profit	439
	-------

12. Dividends

	31 Dec 22
	£000
Dividends paid during the period (excluding those for which a liability existed at the end of the prior period )	50
Dividends proposed before the period end and recognised as a liability	50
	----

13. Intangible assets

Group	Goodwill	Intellectual property	Total
	£000	£000	£000
Cost
At 1 July 2021	–	–	–
Additions	( 914)	–	( 914)
Acquisitions through business combinations	–	50	50
	----	----	----
At 31 December 2022	( 914)	50	( 864)
	----	----	----
Amortisation
At 1 July 2021	–	–	–
Charge for the period	( 914)	–	( 914)
Transfers	–	50	50
	----	----	----
At 31 December 2022	( 914)	50	( 864)
	----	----	----
Carrying amount
At 31 December 2022	–	–	–
	----	----	----

The company has no intangible assets.

14. Tangible assets

Group	Freehold property	Plant and machinery	Total
	£000	£000	£000
Cost
At 1 July 2021	–	–	–
Additions	–	179	179
Disposals	–	( 147)	( 147)
Acquisitions through business combinations	1,653	2,233	3,886
	-------	-------	-------
At 31 December 2022	1,653	2,265	3,918
	-------	-------	-------
Depreciation
At 1 July 2021	–	–	–
Charge for the period	18	73	91
Disposals	–	( 132)	( 132)
Transfers	283	1,714	1,997
	-------	-------	-------
At 31 December 2022	301	1,655	1,956
	-------	-------	-------
Carrying amount
At 31 December 2022	1,352	610	1,962
	-------	-------	-------

The company has no tangible assets.

15. Investments

Group	Interests in associates
	£000
Share of net assets/cost
At 1 July 2021	–
Transfers	242
	----
At 31 December 2022	242
	----
Impairment
At 1 July 2021	–
Impairment losses	242
	----
At 31 December 2022	242
	----

Carrying amount
At 31 December 2022	–
	----

Company	Shares in group undertakings
	£000
Cost
At 1 July 2021	–
Additions	5,043
	-------
At 31 December 2022	5,043
	-------
Impairment
At 1 July 2021 and 31 December 2022	–
	-------

Carrying amount
At 31 December 2022	5,043
	-------

Subsidiaries, associates and other investments

Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:

	Class of share	Percentage of shares held
Subsidiary undertakings
Filon GRP Limited	Ordinary	100
Filon Products Limited	Ordinary	100
GRP Signs Limited	Ordinary	100

Other significant holdings
Mayan Roofing Systems Ltd	Ordinary	25

16. Stocks

	Group	Company
	31 Dec 22	31 Dec 22
	£000	£000
Raw materials and consumables	949	–
Finished goods and goods for resale	808	–
	-------	----
	1,757	–
	-------	----

17. Debtors

	Group	Company
	31 Dec 22	31 Dec 22
	£000	£000
Trade debtors	3,016	–
Prepayments and accrued income	96	–
Other debtors	22	–
	-------	----
	3,134	–
	-------	----

18. Creditors: amounts falling due within one year

	Group	Company
	31 Dec 22	31 Dec 22
	£000	£000
Bank loans and overdrafts	185	–
Trade creditors	2,111	–
Amounts owed to group undertakings	–	4,493
Accruals and deferred income	54	–
Corporation tax	427	–
Social security and other taxes	379	–
Dividends payable	50	50
Other creditors	255	–
	-------	-------
	3,461	4,543
	-------	-------

19. Creditors: amounts falling due after more than one year

	Group	Company
	31 Dec 22	31 Dec 22
	£000	£000
Bank loans and overdrafts	1,317	–
	-------	----

Included within creditors: amounts falling due after more than one year is an amount of £550,463 in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

Bank loan borrowings are secured by a first legal charge on the company's premises at Burntwood and a first fixed and floating charge over the company's other assets. Bank loans bear interest of 2% above the Bank of England base rate as published from time to time.

20. Provisions

Group	Warranties	Deferred tax (note 21)	Total
	£000	£000	£000
At 1 July 2021	–	–	–
Additions	12	25	37
Transfers	103	78	181
	----	----	----
At 31 December 2022	115	103	218
	----	----	----

The company does not have any provisions.

21. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	Group	Company
	31 Dec 22	31 Dec 22
	£000	£000
Included in provisions (note 20)	103	–
	----	----

The deferred tax account consists of the tax effect of timing differences in respect of:

	Group	Company
	31 Dec 22	31 Dec 22
	£000	£000
Accelerated capital allowances	108	–
Provisions	( 5)	–
	----	----
	103	–
	----	----

22. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 76,750 .

23. Financial instruments

Financial assets measured at transaction cost compromise cash at bank, trade and other debtors and amounted to £4,145,898 Financial liabilities measured at amortised cost compromise loans, trade and other creditors and amounted to £3,869,609.

24. Called up share capital

Issued, called up and fully paid

		31 Dec 22
	No.	£
Ordinary shares of £ 1 each	500,000	500
	---------	----

25. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses. Called up share capital - This reserve records the value of the shares issued.

26. Analysis of changes in net debt

	At 1 Jul 2021	Cash flows	At 31 Dec 2022
	£000	£000	£000
Cash at bank and in hand	–	1,107	1,107
Debt due within one year	–	(185)	(185)
Debt due after one year	–	(1,317)	(1,317)
	----	-------	-------
	–	( 395)	( 395)
	----	-------	-------

27. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	Group	Company
	31 Dec 22	31 Dec 22
	£000	£000
Not later than 1 year	55	–
Later than 1 year and not later than 5 years	80	–
	----	----
	135	–
	----	----

28. Other financial commitments

There is a cross guarantee in place between all group companies to secure group facilities.

GRP Construction Products Limited

Notes to the Financial Statements (continued)

Period from 1 July 2021 to 31 December 2022

29. Related party transactions

Company

The company is exempt from disclosing related party transaction with fellow group companies under FRS102 on the grounds that consolidated accounts are prepared. No other related party transactions have occurred in the year.

30. Controlling party

The directors consider that no one individual controls the company .