Walton Civil Engineering and Surfacing Contractors Limited - Period Ending 2023-03-31
Walton Civil Engineering and Surfacing Contractors Limited - Period Ending 2023-03-31
Year Ended
Registration number:
Walton Civil Engineering and Surfacing Contractors Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Walton Civil Engineering and Surfacing Contractors Limited
Company Information
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Directors |
A Walton T M Payne |
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Company secretary |
B Walton |
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Registered office |
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Auditors |
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Walton Civil Engineering and Surfacing Contractors Limited
Strategic Report for the Year Ended 31 March 2023
The directors present their strategic report for the year ended 31 March 2023.
Principal activity
The principal activity of the company is that of utility reinstatement and surfacing contractors.
Review of the business
This financial year has been a consistent set of trading results.
Our contractual analysis showing a total sale of approx. 13m with a Net margin of 16.4% utilising 14,863 men in the year. Approx. 60 men per day on average.
This year has proved that the move to more planned project work has been the right decision as we have managed to maintain margins, during a difficult economic time.
Again, this year the biggest challenge has been controlling price increases, with inflation being at higher levels than in the recent past.
Controlling wages and maintaining labour resource levels within the business has been a challenge with other businesses within the market inflating the base wage and on top of this there is the inflationary pressures on wages.
However, we have managed to minimise the increase from our suppliers to help maintain our margin as best we can.
Labour continues to be a battle on two fronts.
1. Finding the right skillset at the right price.
2. Fibre companies are setting the wages at a higher rate than the market standard.
We also have challenges with regards pricing and availability of rental/leased vehicles. The price of vehicles in general continues to increase above inflation, but the market doesn’t seem to have recovered from covid with the availability of vehicles and parts still being delayed beyond expected lead times.
Some of the above costs have spiralled way outside of the CPI/RPI formulas that we tend to work to on a contractual basis.
There has been a reduced level in competition of companies that hand lay only, which has helped us win and maintain works, but there has been move towards awarding works to full turnkey companies that excavate and reinstate.
Walton Civil Engineering and Surfacing Contractors Limited
Strategic Report for the Year Ended 31 March 2023
The company's key financial performance indicators during the year were as follows:
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Unit |
2023 |
2022 |
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Turnover |
£'000 |
12,856 |
12,022 |
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Gross profit |
£'000 |
3,939 |
3,540 |
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Gross profit margin |
% |
31 |
29 |
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Operating profit |
£'000 |
2,084 |
1,790 |
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Net assets |
£'000 |
2,422 |
3,418 |
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Cash generated from operations |
£'000 |
2,389 |
2,048 |
As described below, the future development of the company is subject to a number of principal business risks. Notwithstanding those risks, the directors are satisfied that the financial year to March 2024 will continue to be a successful period for the company.
Employee Ownership Trust update
This year has seen continued repayments being made to the former shareholders, meeting the agreed payment plan, without adversely affecting the businesses cashflow.
The Directorship and the Operations of Walton Civil Engineering will not change at this time. However, we continue to build the structure to ensure the company is less reliant on family members. This has meant that in the interim period we have had to increase the resource levels during this time of transition. This will be a continued process over the next couple of years, however, we are already seeing far less requirements being put on the family members.
At this time, we are not actively marketing as a business, but looking to maintain current levels of turnover and margin, unless a good opportunity arises.
Investments
This year the expected 10 vans did not arrive due to market delays but will arrive at end of quarter 2 in 23/24.
We continue to develop our IT system and next year’s plan is to look at the option of moving everything to the cloud to help reduce risk to the business. We continue to consider “off the shelf” IT products and development of our IT systems to improve automation across all departments.
Walton Civil Engineering and Surfacing Contractors Limited
Strategic Report for the Year Ended 31 March 2023
Principal risks and uncertainties
As mentioned in last years strategic report and within the current review, our biggest challenge has been trying to maintain our margins and finding/maintaining labour with the right skillset and at the right rate. Currently we cannot see an end to this in the short term until inflation/CPI is under control. Due to this our levels of communication with our clients continues to be high.
With high inflation and interest rates, the risk of clients defaulting on payments due to financial difficulties, we therefore must be careful who we work for and the credit terms we offer or even if we offer credit terms at all. Every potential client is credit checked and assessed on an individual basis, but due to the information on accounts being up to 12 months old this in itself increases the risk. We reduce this as much as possible with more favourable payment terms and monitoring clients credit ratings on a regular basis.
A continued review of Capital expenditure in terms of Transport and IT is in place and we will continue to hire plant in accordance with the current service level agreement.
We continue to repay EOT Loan accounts on a regular basis to reduce interest payments as much as possible. We continue to budget for corporation tax and loan/interest repayments to help ensure cashflow is not an issue.
We have secured a large framework agreement for the next 3 years to help underpin/maintain stability going forward.
On a non-trading front, we aim to maximise rental value at every depot that is possible.
Walton Civil Engineering and Surfacing Contractors Limited
Directors' Report for the Year Ended 31 March 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
Directors of the company
The directors who held office during the year were as follows:
Dividends
The directors recommended and paid a dividend in the year of £nil (2021 - £82,955).
Financial instruments
Objectives and policies
The company’s principal financial instruments comprise bank balances (including cash and bank loans), trade debtors and creditors, and hire purchase / finance lease obligations. The company’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The company’s approach to dealing with these risks is shown below.
Credit risk, liquidity risk and cash flow risk
Credit risk
The company’s credit risk is primarily attributable to its trade debtors. Trade debtors are recognised and carried at the lower of their original invoiced value and their recoverable amount. To manage this risk, the company performs credit checks on new customers, puts credit limits in place and actively manages its customer ledger and has credit insurance in place.
Liquidity risk
In order to maintain liquidity and ensure that sufficient funds are available for ongoing operations and future developments, the company has an invoice financing facility for certain customers, as well as external bank borrowings and finance lease obligations. The company actively manages its total net debt from such obligations against its current assets and future projections.
Cash flow risk
In the current financial year the net cash position has dropped from £1.87m at 1 April 2022 to £936k as at 31 March 2023.
Future developments
An indication of likely future developments in the business and particulars of any significant events which have occurred since the end of the financial year have been included in the Strategic Report.
Walton Civil Engineering and Surfacing Contractors Limited
Directors' Report for the Year Ended 31 March 2023
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
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Walton Civil Engineering and Surfacing Contractors Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Walton Civil Engineering and Surfacing Contractors Limited
Independent Auditor's Report to the Members of Walton Civil Engineering and Surfacing Contractors Limited
Opinion
We have audited the financial statements of Walton Civil Engineering and Surfacing Contractors Limited (the 'company') for the year ended 31 March 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 March 2023 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s 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.
Walton Civil Engineering and Surfacing Contractors Limited
Independent Auditor's Report to the Members of Walton Civil Engineering and Surfacing Contractors Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' 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 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 7, 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor 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:
Walton Civil Engineering and Surfacing Contractors Limited
Independent Auditor's Report to the Members of Walton Civil Engineering and Surfacing Contractors Limited
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the company’s ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
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Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. |
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Enquiries of management regarding their knowledge of any breaches of health and safety regulations, and review of Board meeting minutes for relevant matters identified. |
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Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance. |
As part of our enquiries, we discussed with management whether there had been any instances of known or alleged fraud, of which management confirmed there were none.
We assessed the susceptibility of the financial statements to material misstatement through management override or fraud and obtained an understanding of the controls in place to mitigate the risk of fraud. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key risks we identified were the reduction of tax liabilities and/or the overstatement of the financial position of the company for commercial purposes. Based upon our understanding we designed and conducted audit procedures including:
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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. |
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Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates. |
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Performed cut off procedures for revenue recognition both before the year end and after. |
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Investigated the rationale behind significant or unusual transactions. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the company. We gained an understanding of the industry in which the company operates as part of this assessment to identify the key laws and regulations affecting the company. As part of this, we reviewed the company’s website for indication of any regulations and certification in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were the The New Roads and Street Works Act, as well as health and safety regulations, tax legislation and employment law. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
Walton Civil Engineering and Surfacing Contractors Limited
Independent Auditor's Report to the Members of Walton Civil Engineering and Surfacing Contractors Limited
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.
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Ground Floor
90 Victoria Street
BS1 6DP
Walton Civil Engineering and Surfacing Contractors Limited
Profit and Loss Account
Year Ended 31 March 2023
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Note |
2023 |
2022 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
2,084,107 |
1,790,704 |
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Other interest receivable and similar income |
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Interest payable and similar expenses |
( |
( |
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(22,452) |
(21,518) |
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Profit before tax |
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Tax on profit |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Walton Civil Engineering and Surfacing Contractors Limited
Balance Sheet
31 March 2023
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Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Investments |
- |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Capital redemption reserve |
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Profit and loss account |
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Shareholders' funds |
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Approved and authorised by the
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Company Registration Number: 03457890
Walton Civil Engineering and Surfacing Contractors Limited
Statement of Changes in Equity
Year Ended 31 March 2023
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Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 April 2022 |
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|
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3,263,498 |
3,373,797 |
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Prior period adjustment |
- |
- |
- |
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At 1 April 2022 (As restated) |
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Profit for the year |
- |
- |
- |
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Total comprehensive income |
- |
- |
- |
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|
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Dividends |
- |
- |
- |
( |
( |
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At 31 March 2023 |
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Share capital |
Share premium |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total |
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At 1 April 2021 |
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|
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Profit for the year |
- |
- |
- |
- |
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Other comprehensive income |
- |
- |
- |
( |
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- |
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Total comprehensive income |
- |
- |
- |
( |
|
|
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Dividends |
- |
- |
- |
- |
( |
( |
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At 31 March 2022 |
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- |
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Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office and principal place of activity is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The company's financial statements have been prepared in accordance with FRS102 - the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. There are no material departures from FRS102.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The functional currency of Walton Civil Engineering and Surfacing Contractors Limited is considered to be pounds sterling because this is the currency of the primary economic environment in which the company operates.
Prior year adjustment
The prior year profit and loss account has been restated by £44,792, from a profit of £1,359,853 to £1,404,645. The restatement is the result of a prior year adjustment removing the provision for a bad debt. The overall impact on opening net assets is an increase from £3,373,797 to £3,418,589.
Summary of disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 12 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
- the requirement of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);
- the requirement of Section 7 Statement of Cash Flows;
- the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
- the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A..
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Group accounts not prepared
Going concern
On the basis of their assessment of the company's financial position and resources, the directors are satisfied that it remains appropriate for the company to adopt the going concern basis of accounting in preparing these financial statements.
As mentioned within the review of business section in the strategic report, our biggest challenge has been trying to maintain margin and, of course, finding labour with the right skillset and at the right rate. We cannot see an end to this in the short/medium term and our levels of communication with our clients remains high.
Key accounting judgements and sources of estimation uncertainty
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key judgement that has a significant impact on the financial statements is in respect of going concern, as described above.
The key estimates that have a significant effect on the amounts recognised in the financial statements are in respect of accrued income and the carrying value of tangible fixed assets, trade debtor valuation and fiscal liabilities.
Accrued income is recognised with reference to the stage of completion of the job, which requires estimation as to the value of the work performed which has not yet been invoiced. The carrying amount is £94,057 (2022 - £296,599).
Tangible fixed assets are carried at cost, less accumulated depreciation and any subsequent accumulated impairment loss. This requires an estimation in the depreciation rates used as well as assessment of the ongoing economic contribution of the assets of the company as to whether an indicator of impairment has occurred. The carrying amount is £1,244,306 (2022 - £902,181).
Trade debtors are recognised and carried at the lower of their original invoiced value and their recoverable amount. The company actively manages its customer ledger and has credit insurance in place for the majority of their customers. The carrying amount is £2,553,449 (2022 - £2,462,966).
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
Revenue in respect of civil engineering services supplied is recognised with reference to the stage of completion of the contract. Stage of completion is measured with reference to the value of the work performed.
Government grants
Government revenue grants are accounted for under the accruals method. These are credited to the profit and loss when the company is entitiled to the income.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and assets under constructions, over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Freehold property |
2-3.3% straight line |
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Plant and machinery |
25% reducing balance |
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Fixtures and fittings |
25% reducing balance |
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Motor vehicles |
25% reducing balance |
Investments
Investments in subsidiaries and other investments are measured at cost less impairment.
Stocks
Stock is measured at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Leases
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. The treatment of finance leases is as set out in the accounting policy for financial instruments detailed below.
Rental income from operating leases (net of any incentives given to the lesees) is recognised on a straight-line basis over the lease term.
Defined contribution pension obligation
The company operates a defined contribution pension scheme for eligible staff. Contributions are charged to the profit and loss account when they become payable in accordance with the rules of the scheme.
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Hire purchase and finance lease obligations;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans and hire purchase and finance lease obligations, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Assets held under hire purchases and finance lease are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. The asset is subsequently measured as discussed in the tangible fixed asset accounting policy above. Finance lease obligations are subsequently measured at amortised cost using the effective interest method.
Impairment
Financial guarantee contracts
This disclosure box set not to appear in S1A template - in full FRS102 this will need to deleted if not required
|
Turnover |
The company's turnover arises solely in the UK and relates to the company's principal activity.
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
2023 |
2022 |
|
|
Rental income |
|
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
|
2023 |
2022 |
|
|
Gain/(loss) on disposal of Tangible assets |
|
( |
|
Loss from disposals of investments |
( |
- |
|
14,858 |
(68,506) |
|
Operating profit |
Arrived at after charging/(crediting)
|
2023 |
2022 |
|
|
Depreciation - owned assets |
|
|
|
Depreciation of plant and machinery (finance leases) |
244,079 |
176,443 |
|
(Profit)/loss on disposal of property, plant and equipment |
( |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2023 |
2022 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2023 |
2022 |
|
|
Operations |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2023 |
2022 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
- |
|
73,968 |
18,108 |
|
Auditor's remuneration |
|
2023 |
2022 |
|
|
Audit of the financial statements |
|
|
|
Other interest receivable and similar income |
|
2023 |
2022 |
|
|
Bank interest |
|
|
|
Interest payable and similar expenses |
|
2023 |
2022 |
|
|
Interest on bank overdrafts and borrowings |
- |
|
|
Interest on finance leases and hire purchase contracts |
|
|
|
|
|
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2023 |
2022 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
|
|
262,680 |
356,020 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Arising from changes in tax rates and laws |
- |
|
|
Total deferred taxation |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2023 |
2022 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax expense relating to changes in tax rates or laws |
- |
|
|
UK deferred tax expense relating to changes in tax rates or laws |
|
- |
|
Deferred tax expense from unrecognised temporary difference from a prior period |
|
- |
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
( |
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
|
Tax decrease from other short-term timing differences |
- |
( |
|
Tax decrease arising from overseas tax suffered/expensed |
( |
- |
|
Tax decrease from effect of adjustment in research and development tax credit |
- |
( |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
( |
|
Total tax charge |
|
|
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Deferred tax
Deferred tax assets and liabilities
|
2023 |
Asset |
Liability |
|
Difference between accumulated depreciation and capital allowances |
- |
|
|
- |
|
|
2022 |
Asset |
Liability |
|
Difference between accumulated depreciation and capital allowances |
- |
|
|
- |
|
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Tangible assets |
|
Fixtures and fittings |
Motor vehicles |
Plant and machinery |
Total |
|
|
Cost or valuation |
||||
|
At 1 April 2022 |
|
|
|
|
|
Additions |
- |
- |
|
|
|
Disposals |
- |
- |
( |
( |
|
At 31 March 2023 |
|
|
|
|
|
Depreciation |
||||
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At 1 April 2022 |
|
|
|
|
|
Charge for the year |
|
|
|
|
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Eliminated on disposal |
- |
- |
( |
( |
|
At 31 March 2023 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 March 2023 |
|
|
|
|
|
At 31 March 2022 |
|
|
|
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Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2023 |
2022 |
|
|
Property, plant and equipment |
847,396 |
543,095 |
|
Motor vehicles |
15,346 |
20,462 |
|
862,742 |
563,557 |
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Investments |
|
2023 |
2022 |
|
|
Investments in subsidiaries |
- |
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 April 2022 and 31 March 2021 |
|
|
Disposals |
( |
|
At 31 March 2023 |
- |
|
Carrying amount |
|
|
At 31 March 2023 |
- |
|
At 31 March 2022 |
|
The company's 100% investment in the subsidiary Walton-Payne Limited was dissolved on the 12th of July 2022.
|
Stocks |
|
2023 |
2022 |
|
|
Raw materials and consumables |
|
|
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Debtors |
Details of trade and other debtors
£47,349 (2022 - £75,295) of trade debtors relates to customer retentions classified as non current.
|
2023 |
2022 |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments and accrued income |
|
|
|
|
|
|
|
Less amounts due after one year |
( |
( |
|
|
|
|
Cash and cash equivalents |
|
2023 |
2022 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
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Creditors |
|
2023 |
2022 |
|
|
Due within one year |
||
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Loans and borrowings |
|
|
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Trade creditors |
|
|
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Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accruals |
|
|
|
Corporation tax |
271,234 |
354,373 |
|
|
|
|
|
Due after one year |
||
|
Loans and borrowings |
|
|
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Loans and borrowings |
|
2023 |
2022 |
|
|
Non-current loans and borrowings |
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|
Finance lease liabilities |
|
|
|
2023 |
2022 |
|
|
Current loans and borrowings |
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Finance lease liabilities |
|
|
Finance lease liabilities are secured on the assets to which they relate.
|
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
|
2023 |
2022 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2023 |
2022 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
- |
|
Later than five years |
|
- |
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Operating leases - lessor
The total of future minimum lease payments is as follows:
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
2023 |
2022 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
- |
|
|
|
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Deferred tax and other provisions |
|
Deferred tax |
Total |
|
|
At 1 April 2022 |
|
|
|
Additional provisions |
|
|
|
At 31 March 2023 |
|
|
|
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||
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Pension schemes |
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2023 |
2022 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
50,000 |
|
50,000 |
|
|
|
50,000 |
|
50,000 |
|
|
|
25 |
|
25 |
|
|
|
2 |
|
2 |
|
|
|
2 |
|
2 |
|
|
|
|
|
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Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
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Related party transactions |
Group companies
The company is wholly owned by its parent company and has taken advantage of the exemption in FRS 102 to not disclose transactions with its parent company and other wholly owned subsidiaries in the group.
Walton Civil Engineering and Surfacing Contractors Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Dividends paid to directors |
|
2023 |
2022 |
|||
|
A Director 1 |
||||
|
A director and their spouse |
- |
11,826 |
||
|
A Director 2 |
||||
|
A director and their spouse |
- |
13,070 |
||
Summary of transactions with other related parties
|
Parent and ultimate parent undertaking |
The company's immediate parent is Miken Holdings Limited, a company incorporated in England and Wales. The parent of the smallest group in which these financial statements are consolidated is Miken Holdings Limited.
The address of Miken Holdings Limited is:
Millbrook Depot, Yelling Mill Lane, Shepton Mallet,
United Kingdom, BA4 4JT
The ultimate controlling party is the employees ownership trust, Walton Trustees Limited.