Pave-Aways Holdings (2011) Limited - Limited company accounts 18.2

REGISTERED NUMBER: 07431863 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018

FOR

PAVE-AWAYS HOLDINGS (2011) LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

S P Owen

Mrs V L Lawson

REGISTERED OFFICE:

Avenue Mill

Knockin

Oswestry

Shropshire

SY10 8HQ

REGISTERED NUMBER:

07431863 (England and Wales)

AUDITORS:

D.R.E. & Co. (Audit) Limited

Chartered Accountants & Statutory Auditors

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

The directors present their strategic report of the company and the group for the year ended 31 March 2018.

REVIEW OF BUSINESS

The directors review key performance indicators which include sales levels which have increased from the past year to

be the highest recorded in our 45 years of business. The gross profit has dropped which can be attributed to the

completion of the two largest projects in the last year which did not return the expected profit levels. The projects were

very successful providing a high quality product to its clients.

The last twelve months have continued to see the construction market busy but more competitive which is another

contributing factor to the reduction in gross profits. The effect of competition in the market has dropped profit levels in

tender, the solution to this has been to concentrate on tenders in other areas within a 60 mile radius of our head office at

Knockin.

We continue to develop new clients within and outside Shropshire and at the same time support the local communities

through our supply chain and community benefits programme.

Pave-Aways Ltd has maintained its financial stability in the past year, has no borrowings and is self financing, with

sufficient reserves to enable growth over the next five years. Pave-Aways continues to grow in stature and reputation

based on its core strengths of honesty, reliability and belief in supporting the local supply chain and striving for

continuous improvement through all our projects.

A prudent approach, strong financial record, excellent workmanship and a direct hands on approach by the directors

which has been developed over 45 years, continue to provide comfort to its workforce and to its clients that prove

Pave-Aways go one step above its direct competition in the construction market.

PRINCIPAL RISKS AND UNCERTAINTIES

The construction industry is still a very competitive market. This is a continuing risk and may result in tenders being

unsuccessful in favour of competitors. However Pave-Aways Ltd has developed a strong client base which has seen

repeat business and contracts during the last twelve months. It has further consolidated its position as a leading building

contractor in Shropshire and the surrounding counties.

ON BEHALF OF THE BOARD:

S P Owen - Director

12 November 2018

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

31 March 2018.

PRINCIPAL ACTIVITY

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

work.

Pave-Aways Holdings (2011) Ltd, the non-trading holding company of the group, was incorporated on 8 November

2010. The company acquired its shareholding in Pave-Aways Ltd and its subsidiary via a group reconstruction on 1 July

2011.

DIVIDENDS

An interim dividend of £1,349.944 per share was paid on 28 April 2017. The directors recommend that no final dividend

be paid.

The total distribution of dividends for the year ended 31 March 2018 will be £ 86,397 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

S P Owen has held office during the whole of the period from 1 April 2017 to the date of this report.

Other changes in directors holding office are as follows:

Mrs B H Jones - resigned 9 November 2017

Mrs V L Lawson - appointed 13 November 2017

GOING CONCERN

These financial statements have been prepared on the going concern basis as the directors expect the group to continue

to operate for the foreseeable future.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the

directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

group's auditors are aware of that information.

AUDITORS

The auditors, D.R.E. & Co. (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

S P Owen - Director

12 November 2018

Opinion

We have audited the financial statements of Pave-Aways Holdings (2011) Limited (the 'parent company') and its

subsidiaries (the 'group') for the year ended 31 March 2018 which comprise the Consolidated Statement of

Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in

Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated

Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The

financial reporting framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the

UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2018 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the group in accordance with the ethical requirements

that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have

fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

you where:

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

-

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the

Auditors thereon.

Our opinion on the financial statements does not cover the other information and 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, 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the

Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and

for such internal control as the directors determine necessary to enable the preparation of financial statements that are

free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease

operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Aled Davies FCCA (Senior Statutory Auditor)

for and on behalf of D.R.E. & Co. (Audit) Limited

Chartered Accountants & Statutory Auditors

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

12 November 2018

TURNOVER

28,784,163

27,930,024

Cost of sales

(27,486,134

)

(25,400,080

)

GROSS PROFIT

1,298,029

2,529,944

Administrative expenses

(751,873

)

(725,289

)

546,156

1,804,655

Other operating income

5,005

19,229

OPERATING PROFIT

5

551,161

1,823,884

Interest receivable and similar income

2,246

4,793

553,407

1,828,677

Interest payable and similar expenses

6

(3,777

)

(13,266

)

PROFIT BEFORE TAXATION

549,630

1,815,411

Tax on profit

7

(106,193

)

(359,152

)

PROFIT FOR THE FINANCIAL YEAR

443,437

1,456,259

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

443,437

1,456,259

Profit attributable to:

Owners of the parent

443,437

1,456,259

Total comprehensive income attributable to:

Owners of the parent

443,437

1,456,259

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

1,140,525

955,502

Investments

12

-

-

1,140,525

955,502

CURRENT ASSETS

Stocks

13

9,650

116,218

Debtors

14

3,240,984

5,230,422

Cash at bank

4,638,638

2,943,230

7,889,272

8,289,870

CREDITORS

Amounts falling due within one year

15

3,635,565

4,208,276

NET CURRENT ASSETS

4,253,707

4,081,594

TOTAL ASSETS LESS CURRENT LIABILITIES

5,394,232

5,037,096

PROVISIONS FOR LIABILITIES

17

74,458

74,361

NET ASSETS

5,319,774

4,962,735

CAPITAL AND RESERVES

Called up share capital

18

100

100

Share premium

19

24,872

24,872

Capital redemption reserve

19

25

25

Retained earnings

19

5,294,777

4,937,738

SHAREHOLDERS' FUNDS

5,319,774

4,962,735

The financial statements were approved by the Board of Directors on 12 November 2018 and were signed on its behalf

by:

S P Owen - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

2,763,750

2,763,750

2,763,750

2,763,750

CURRENT ASSETS

Debtors

14

148,947

-

Cash at bank

1,097,878

1,455,123

1,246,825

1,455,123

CREDITORS

Amounts falling due within one year

15

1,625,663

1,738,499

NET CURRENT LIABILITIES

(378,838

)

(283,376

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,384,912

2,480,374

CAPITAL AND RESERVES

Called up share capital

18

100

100

Share premium

19

24,872

24,872

Capital redemption reserve

19

25

25

Retained earnings

19

2,359,915

2,455,377

SHAREHOLDERS' FUNDS

2,384,912

2,480,374

Company's (loss)/profit for the financial year

(9,065

)

1,430,721

The financial statements were approved by the Board of Directors on 12 November 2018 and were signed on its behalf by:

S P Owen - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2016

100

4,342,772

-

-

4,342,872

Changes in equity

Issue of share capital

-

-

24,872

-

24,872

Dividends

-

(223,203

)

-

-

(223,203

)

Total comprehensive income

-

818,169

-

25

818,194

Balance at 31 March 2017

100

4,937,738

24,872

25

4,962,735

Changes in equity

Dividends

-

(86,397

)

-

-

(86,397

)

Total comprehensive income

-

443,437

-

-

443,437

Balance at 31 March 2018

100

5,294,778

24,872

25

5,319,775

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2016

100

1,885,949

-

-

1,886,049

Changes in equity

Issue of share capital

-

-

24,872

-

24,872

Dividends

-

(223,203

)

-

-

(223,203

)

Total comprehensive income

-

792,631

-

25

792,656

Balance at 31 March 2017

100

2,455,377

24,872

25

2,480,374

Changes in equity

Dividends

-

(86,397

)

-

-

(86,397

)

Total comprehensive income

-

(9,065

)

-

-

(9,065

)

Balance at 31 March 2018

100

2,359,915

24,872

25

2,384,912

Cash flows from operating activities

Cash generated from operations

1

2,628,615

(472,808

)

Interest paid

(3,777

)

(13,266

)

Tax paid

(346,282

)

(504,780

)

Net cash from operating activities

2,278,556

(990,854

)

Cash flows from investing activities

Purchase of tangible fixed assets

(360,945

)

(258,466

)

Sale of tangible fixed assets

10,886

11,358

Interest received

2,246

4,793

Net cash from investing activities

(347,813

)

(242,315

)

Cash flows from financing activities

Amount introduced by directors

-

5,615

Amount withdrawn by directors

(148,938

)

-

Share issue

-

24,897

Share buyback

-

(638,090

)

Equity dividends paid

(86,397

)

(223,203

)

Net cash from financing activities

(235,335

)

(830,781

)

Increase/(decrease) in cash and cash equivalents

1,695,408

(2,063,950

)

Cash and cash equivalents at beginning of year

2

2,943,230

5,007,180

Cash and cash equivalents at end of year

2

4,638,638

2,943,230

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

31.3.18

31.3.17

£

£

Profit before taxation

549,630

1,815,411

Depreciation charges

130,889

105,873

Loss on disposal of fixed assets

34,147

9,341

Finance costs

3,777

13,266

Finance income

(2,246

)

(4,793

)

716,197

1,939,098

Decrease/(increase) in stocks

106,568

(47,648

)

Decrease/(increase) in trade and other debtors

2,138,376

(1,572,727

)

Decrease in trade and other creditors

(332,526

)

(791,531

)

Cash generated from operations

2,628,615

(472,808

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

4,638,638

2,943,230

Year ended 31 March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

2,943,230

5,007,180

1.	STATUTORY INFORMATION

Pave-Aways Holdings (2011) is a private company limited by shares, incorporated in the UK and registered in

England & Wales. The company's registered number and address can be found on the company information

page.

The principal place of business is Avenue Mill, Knockin, Oswestry, Shropshire, SY10 8HQ.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The

Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The financial statements are presented in Sterling (£), rounded to nearest £1.

Going Concern

The financial statements have been prepared under a going concern basis on the directors expectation that the

group will continue to operate in the foreseeable future.

Basis of consolidation

The consolidated financial statements present the results of the parent company and those of it's subsidiaries. All

consolidated subsidiaries have coterminous financial year ends. Inter group transactions have been eliminated

from the financial statements and subsidiary results have been restated, where possible to reflect comparable

accounting policies. The financial statements therefore include:

Pave-Aways Holdings (2011) Ltd (Parent company)

Pave-Aways Ltd (100% subsidiary)

Pave-Aways Trustee Ltd (Dormant 100% subsidiary of Pave-Aways Ltd)

Significant judgements and estimates

The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by

definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of

causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are

addressed below.

The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of

trade and other debtors, management considers factors including the current credit rating of the debtor, the

ageing profile of debtors and historical experience. See note 14 for the net carrying amount of debtors.

Turnover

Turnover represents net invoiced work done, excluding value added tax. Sales relating to long term contracts are

recognised to its stage of completion. Other sales are recognised at the point of completion of work done.

Goodwill

Negative goodwill resulting from the acquisition of the shares in Pave-Aways Ltd in 2011, was written off to

reserves in the first year.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life.

Freehold property

-

2% on cost

Plant and machinery

-

15% on cost and 15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on reducing balance

Computer equipment

-

33% on reducing balance

Freehold property is revalued by the directors at the end of each financial period with depreciation charged to

write off the difference in values, down to its estimated realisable value.

Stocks

Stocks and short term work in progress are valued at the lower of cost and net realisable value, after making due

allowance for obsolete and slow moving items.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Financial instruments

Basic financial instruments are recognised at amortised cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of

Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or

directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The group makes contributions to employee's private pensions schemes and to a company directors' scheme.

Costs are allocated against profits as incurred.