BESBLOCK LIMITED
Company registration number 01059042 (England and Wales)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
BESBLOCK LIMITED
COMPANY INFORMATION
Directors
Mr G Lyons
(Appointed 19 May 2023)
Mr P Hollingsworth
(Appointed 19 May 2023)
Company number
01059042
Registered office
Bardon Hall
Copt Oak Road
Markfield
Leicestershire
LE67 9PJ
Auditor
Dyke Yaxley Limited
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
BESBLOCK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
BESBLOCK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -
The directors present the strategic report for the year ended 30 April 2023.
Fair review of the business
Trading conditions have recovered to pre Covid 19 levels. Builders merchant trade shows stable trading throughout the year. Private Housebuilder volumes have increased further but have an uncertain future in light of interest rate and inflationary pressures. Our housebuilder customers are predicting a potential reduction is sales of around 10%. The SME developer market has continued to grow allowing us to retain a broad customer base thus reducing exposure to potential market volatility.
Principal risks and uncertainties
Whilst the potential for recession is greater than the previous year, the directors have considered potential measures in the event of a market contraction. Production volumes could be reduced in order to mitigate the potential financial burden. A cautious approach with regard to overhead and capital purchases will continue as the market enters a difficult period.
Financial Risk
Increased price inflation has exerted considerable pressure for some of our customers. The need to exercise caution within all sectors is recognised. Stronger credit control procedures for all elements of our business have been implemented. A continuing cautious approach for new account applications is encouraged by the directors.
Research and development
The directors have continued to develop new products and have allowed the introduction of new solutions in order to satisfy forthcoming building regulation changes. Our commitment to further reduce operational co2 has been augmented significantly with the further acquisition of electric and hybrid electric vehicles. Our energy from waste wood plant enters its second year of operation following its commissioning in May 2021. The reliance on the business to use fossil fuels has been heavily reduced with a large proportion of our production fuelled by waste wood. The company commits to continue to stay ahead of its competition as this global agenda develops. The continued representation by directors via working groups and trade associations ensures a broad knowledge of current and proposed regulatory matters.
Mr G Lyons
Director
28 November 2023
BESBLOCK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -
The directors present their annual report and financial statements for the year ended 30 April 2023.
Principal activities
The principal activity of the company continued to be that of the manufacture of high quality building blocks.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £500,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A B Huxley
(Resigned 19 May 2023)
Mr D J Icke
(Resigned 31 March 2023)
Mr M J Fulwell
(Resigned 19 May 2023)
Mr G Lyons
(Appointed 19 May 2023)
Mr P Hollingsworth
(Appointed 19 May 2023)
Market value of land and buildings
The land and buildings were professionally valued on 1 May 2014 by Andrew Dixon & Company and carried forward as deemed cost under FRS 102.
Post reporting date events
On 19th May 2023 Aggregate Industries UK Limited acquired Besblock Limited.
Auditor
The auditors, Dyke Yaxley Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
Disclosure in the Strategic Report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of review of business, principal risks and uncertainties and future developments.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
BESBLOCK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
On behalf of the board
Mr G Lyons
Director
28 November 2023
BESBLOCK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2023
- 4 -
The directors are responsible 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:
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 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.
BESBLOCK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BESBLOCK LIMITED
- 5 -
Qualified opinion on financial statements
We have audited the financial statements of Besblock Limited (the 'company') for the year ended 30 April 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:
give a true and fair view of the state of the company's affairs as at 30 April 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 qualified opinion
We did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 30 April 2023, which are included in the balance sheet at £980,317, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.
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 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 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.
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 contained within the annual report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
BESBLOCK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BESBLOCK LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year 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 respect solely of the limitation on our work relating to stock, described above:
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records had been maintained.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 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 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'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.
BESBLOCK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BESBLOCK LIMITED
- 7 -
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:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.
We designed audit procedures to respond to the risk, recognising that 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 by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
We did not identify any key audit matters relating to irregularities, including fraud.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Elwyn Turner FCA
Senior Statutory Auditor
For and on behalf of Dyke Yaxley Limited
29 November 2023
Chartered Accountants
Statutory Auditor
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
BESBLOCK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
17,890,347
16,001,857
Cost of sales
(12,191,265)
(10,628,577)
Gross profit
5,699,082
5,373,280
Administrative expenses
(2,906,529)
(2,514,988)
Other operating income
192,000
18,117
Operating profit
4
2,984,553
2,876,409
Interest receivable and similar income
7
25,460
84
Interest payable and similar expenses
8
(90,070)
(93,267)
Profit before taxation
2,919,943
2,783,226
Tax on profit
9
(751,094)
(368,726)
Profit for the financial year
2,168,849
2,414,500
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BESBLOCK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 9 -
2023
2022
£
£
Profit for the year
2,168,849
2,414,500
Other comprehensive income
-
-
Total comprehensive income for the year
2,168,849
2,414,500
BESBLOCK LIMITED
BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
10,096,787
10,060,064
Current assets
Stocks
12
908,318
781,308
Debtors
13
3,759,032
3,163,134
Cash at bank and in hand
843,082
344,555
5,510,432
4,288,997
Creditors: amounts falling due within one year
14
(2,496,915)
(2,840,112)
Net current assets
3,013,517
1,448,885
Total assets less current liabilities
13,110,304
11,508,949
Creditors: amounts falling due after more than one year
15
(945,507)
(1,250,788)
Provisions for liabilities
Deferred tax liability
18
1,040,324
802,537
(1,040,324)
(802,537)
Net assets
11,124,473
9,455,624
Capital and reserves
Called up share capital
20
9,548
9,548
Revaluation reserve
799,426
799,426
Capital redemption reserve
9,547
9,547
Profit and loss reserves
10,305,952
8,637,103
Total equity
11,124,473
9,455,624
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 28 November 2023 and are signed on its behalf by:
Mr G Lyons
Director
Company registration number 01059042 (England and Wales)
BESBLOCK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 May 2021
9,548
799,426
9,547
7,673,467
8,491,988
Year ended 30 April 2022:
Profit and total comprehensive income
-
-
-
2,414,500
2,414,500
Dividends
10
-
-
-
(1,450,864)
(1,450,864)
Balance at 30 April 2022
9,548
799,426
9,547
8,637,103
9,455,624
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
2,168,849
2,168,849
Dividends
10
-
-
-
(500,000)
(500,000)
Balance at 30 April 2023
9,548
799,426
9,547
10,305,952
11,124,473
BESBLOCK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
3,210,911
3,638,575
Interest paid
(90,070)
(93,267)
Income taxes paid
(447,550)
(268,043)
Net cash inflow from operating activities
2,673,291
3,277,265
Investing activities
Purchase of tangible fixed assets
(816,540)
(1,285,076)
Proceeds from disposal of tangible fixed assets
345,499
152,430
Loans made (DLA)
(545,845)
Interest received
25,460
84
Net cash used in investing activities
(991,426)
(1,132,562)
Financing activities
Repayment of bank loans
(325,843)
(335,570)
Payment of finance leases obligations
(357,495)
(493,903)
Dividends paid
(500,000)
(1,450,864)
Net cash used in financing activities
(1,183,338)
(2,280,337)
Net increase/(decrease) in cash and cash equivalents
498,527
(135,634)
Cash and cash equivalents at beginning of year
344,555
480,189
Cash and cash equivalents at end of year
843,082
344,555
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 13 -
1
Accounting policies
Company information
Besblock Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bardon Hall, Copt Oak Road, Markfield, Leicestershire, LE67 9PJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
Not depreciated/2% straight line
Plant and machinery
10% reducing balance or 20% straight line
Fixtures, fittings & equipment
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred taxation is provided at appropriate rates on all timing differences using the liability method only to the extent that, in the opinion of the directors, there is a reasonable probability that a liability or asset will crystallise in the foreseeable future.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 16 -
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Sale of blocks
15,075,578
13,545,733
Transport
2,324,263
2,219,911
Air pressure and SAP calculations
490,506
236,213
17,890,347
16,001,857
2023
2022
£
£
Other revenue
Interest income
25,460
84
Grants received
-
18,117
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
663
809
Government grants
-
(18,117)
Fees payable to the company's auditor for the audit of the company's financial statements
16,000
11,950
Depreciation of owned tangible fixed assets
714,116
589,819
Depreciation of tangible fixed assets held under finance leases
157,578
249,458
Profit on disposal of tangible fixed assets
(45,447)
(8,390)
Operating lease charges
88,727
49,583
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
51
66
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,791,956
2,613,638
Social security costs
340,591
294,859
Pension costs
86,162
84,658
3,218,709
2,993,155
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
312,145
419,449
Company pension contributions to defined contribution schemes
33,509
41,670
345,654
461,119
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
246,070
246,070
Company pension contributions to defined contribution schemes
10,000
10,000
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
25,460
84
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
25,460
84
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
62,721
66,630
Other finance costs:
Interest on finance leases and hire purchase contracts
27,349
26,637
90,070
93,267
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
430,713
451,421
Adjustments in respect of prior periods
82,594
(111,957)
Total current tax
513,307
339,464
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
9
Taxation
2023
2022
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
237,787
36,407
Previously unrecognised tax loss, tax credit or timing difference
(7,145)
Total deferred tax
237,787
29,262
Total tax charge
751,094
368,726
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
2,919,943
2,783,226
Expected tax charge based on the standard rate of corporation tax in the UK of 19.49% (2022: 19.00%)
569,097
528,813
Tax effect of expenses that are not deductible in determining taxable profit
21,490
8,007
Adjustments in respect of prior years
82,594
(111,957)
Permanent capital allowances in excess of depreciation
(114,421)
(80,576)
Research and development tax credit
(4,546)
Under/(over) provided in prior years
(11,968)
Deferred tax adjustments in respect of prior years
237,787
36,407
Patent box
(40,907)
Taxation charge for the year
751,094
368,726
10
Dividends
2023
2022
£
£
Interim paid
500,000
1,450,864
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 20 -
11
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 May 2022
4,225,435
6,364,689
311,396
3,589,637
14,491,157
Additions
203,006
48,169
302,252
655,042
1,208,469
Disposals
(477,902)
(477,902)
At 30 April 2023
4,428,441
6,412,858
613,648
3,766,777
15,221,724
Depreciation and impairment
At 1 May 2022
245,024
1,804,021
148,192
2,233,856
4,431,093
Depreciation charged in the year
31,000
376,401
65,140
399,153
871,694
Eliminated in respect of disposals
(177,850)
(177,850)
At 30 April 2023
276,024
2,180,422
213,332
2,455,159
5,124,937
Carrying amount
At 30 April 2023
4,152,417
4,232,436
400,316
1,311,618
10,096,787
At 30 April 2022
3,980,411
4,560,668
163,204
1,355,781
10,060,064
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and machinery
277,763
434,277
Motor vehicles
526,236
603,615
803,999
1,037,892
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £2,595,392 (2022 - £2,323,726), being cost £2,840,416 (2022 - £2,537,750) and depreciation £245,024 (2022 - £214,024).
12
Stocks
2023
2022
£
£
Raw materials and consumables
224,613
181,288
Finished goods and goods for resale
683,705
600,020
908,318
781,308
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 21 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,683,678
2,870,826
Other debtors
545,845
Prepayments and accrued income
529,509
292,308
3,759,032
3,163,134
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
396,490
360,231
Obligations under finance leases
17
225,503
247,890
Trade creditors
1,035,722
1,237,618
Corporation tax
142,017
76,260
Other taxation and social security
450,660
414,288
Other creditors
22,232
71,071
Accruals and deferred income
224,291
432,754
2,496,915
2,840,112
The finance lease obligations are secured on the relevant assets. The loan balance includes chattel mortgages secured on relevant assets.
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
775,179
1,137,281
Obligations under finance leases
17
170,328
113,507
945,507
1,250,788
16
Loans and overdrafts
2023
2022
£
£
Bank loans
1,171,669
1,497,512
Payable within one year
396,490
360,231
Payable after one year
775,179
1,137,281
The loans are secured by fixed charges over the freehold property registered at the land registry with title number SL18789.
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 22 -
17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
243,694
263,354
In two to five years
186,837
120,661
430,531
384,015
Less: future finance charges
(34,700)
(22,618)
395,831
361,397
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
852,803
615,016
Revaluations
187,521
187,521
1,040,324
802,537
2023
Movements in the year:
£
Liability at 1 May 2022
802,537
Charge to profit or loss
237,787
Liability at 30 April 2023
1,040,324
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
86,162
84,658
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 23 -
20
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
8,420 Ordinary A shares of £1 each
8,420
8,420
564 Ordinary C shares of £1 each
564
564
564 Ordinary D shares of £1 each
564
564
9,548
9,548
All shares have the same rights attached to them with the exception of the voting rights. The A, C, and D Ordinary Shares shall have attached to them full voting and capital distribution (including on winding up) rights; they shall have the right to a dividend as declared from time to time for that class of Shares but so that all classes of Ordinary Shares shall not rank pari passu for dividend entitlement purposes. The A, C, and D Ordinary Shares do not confer any rights of redemption.
21
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
1,880,807
1,466,409
Capital commitments have been made to the total of £1,466,409 of this £779,329 is due in the next 12 months.
22
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Andrew Huxley
545,845
(71,768)
BESBLOCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 24 -
23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,168,849
2,414,500
Adjustments for:
Taxation charged
751,094
368,726
Finance costs
90,070
93,267
Investment income
(25,460)
(84)
Gain on disposal of tangible fixed assets
(45,447)
(8,390)
Depreciation and impairment of tangible fixed assets
871,694
839,277
Movements in working capital:
Increase in stocks
(127,010)
(208,324)
Increase in debtors
(50,053)
(214,208)
(Decrease)/increase in creditors
(422,826)
353,811
Cash generated from operations
3,210,911
3,638,575
24
Analysis of changes in net debt
1 May 2022
Cash flows
New finance leases
30 April 2023
£
£
£
£
Cash at bank and in hand
344,555
498,527
-
843,082
Borrowings excluding overdrafts
(1,497,512)
325,843
-
(1,171,669)
Obligations under finance leases
(361,397)
357,495
(391,929)
(395,831)
(1,514,354)
1,181,865
(391,929)
(724,418)
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