Company registration number 02775128 (England and Wales)
GEORGE COX & SONS LIMITED
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
GEORGE COX & SONS LIMITED
COMPANY INFORMATION
Directors
Mr C F Cox
Mr J P Walsh
Mr M J Holroyd
Mr M A Edwards
Company number
02775128
Registered office
Hall Lane Works
Farnworth
Bolton
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
Bankers
Svenska Handelsbanken AB
6 The Courtyard
Calvin Street
Bolton
GEORGE COX & SONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
GEORGE COX & SONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 1 -
The directors present the strategic report for the year ended 30 September 2022.
Fair review of the business
The directors consider turnover and gross profit to be key performance indicators.
2022 2021
£ £
Turnover 11,058,465 12,639,818
Gross profit 1,629,726 1,603,547
2022 saw turnover reduced by 12.5% from the previous year but remained in line with pre-pandemic activity levels. Gross profit margin increased from 12.7% to 14.7% reflecting the success in focusing on higher margin work. Significant inflationary pressures along with supply chain shortages held back the company from making further improvements. These inflationary pressures did impact upon the administrative costs of the business, resulting in a reduction in net profit margin.
The company’s existing long-term frameworks continue to perform well ensuring a steady workflow throughout the year. Additional frameworks came on stream late in the year helping to provide a strong forward order book.
Cash balances remained very good throughout the year, showing further improvements from the historic highs from the prior year.
Supply chain issues have now eased, though costs remain high, impacting the profitability on some projects. Local agreement was secured with some clients to pass on much of the increases. The company has been successful in its efforts in broadening its sub-contractor supply base to ensure greater resilience.
Expansion of the company’s Skills Development Programme has continued, ensuring that over 15% of its workforce are now on recognised apprenticeship programmes.
The company’s Social Matrix system continues to outperform targets set by its clients for social value outcomes. Its latest external audit recorded achieving 124% of client set target.
As part of its Community Programme the company has started work on locally planting over 7,500 trees to mark its 75th year of continuous trading.
Principal risks and uncertainties
The company regularly updates and reviews its working practices in consultation with industry bodies, its workforce, and its supply chain. A full ‘business impact’ developed during the recent pandemic has now been broadened to incorporate the challenges to the supply chain.
All members of staff are consulted on their views and options on risk analysis, which are regularly reviewed by the Directors to prevent any negative impact on trading.
Mr C F Cox
Director
16 January 2023
GEORGE COX & SONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 2 -
The directors present their report for the year ended 30 September 2022.
Principal activities
The principal activity of the company continued to be that of highway contractors.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £281,000. 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 C F Cox
Mr J P Walsh
Mr M J Holroyd
Mr M A Edwards
Future developments
Economic uncertainties continue to disrupt both our industry and our sector. We expect turnover and profitability to be around similar levels to 2021.
Auditor
The auditors, Barlow Andrews LLP, are deemed to be reappointed under section 487 (2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually 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
auditor
is aware of that information.
On behalf of the board
Mr C F Cox
Director
16 January 2023
GEORGE COX & SONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 3 -
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.
GEORGE COX & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GEORGE COX & SONS LIMITED
- 4 -
Opinion
We have audited the financial statements of George Cox & Sons Limited
(the 'company')
for the year ended 30 September 2022 which comprise
the Profit And Loss Account, the Balance Sheet, the Statement of Changes in Equity
, the Statement of Cash Flows
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 FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 September 2022 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.
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.
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'
r
eport 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.
GEORGE COX & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GEORGE COX & SONS LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
.
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'
r
esponsibilities
s
tatement, 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
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
-
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the construction sector;
-
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
-
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
GEORGE COX & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GEORGE COX & SONS LIMITED
- 6 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested journal entries to identify unusual transactions; and
-
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
Alison Cornes
Senior Statutory Auditor
For and on behalf of Barlow Andrews LLP
16 January 2023
Chartered Accountants
Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
BL1 4BY
GEORGE COX & SONS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
11,058,465
12,639,818
Cost of sales
(9,428,739)
(11,036,271)
Gross profit
1,629,726
1,603,547
Administrative expenses
(1,309,362)
(1,027,945)
Other operating income
33,252
55,946
Operating profit
4
353,616
631,548
Interest payable and similar expenses
8
(4,810)
(5,645)
Profit before taxation
348,806
625,903
Tax on profit
9
(65,978)
(116,925)
Profit for the financial year
282,828
508,978
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There is no other comprehensive income for the year. The total comprehensive income is the profit for the financial year shown above.
GEORGE COX & SONS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2022
30 September 2022
- 8 -
2022
2021
Notes
£
£
£
£
Current assets
Stocks
11
219,986
153,563
Debtors
12
3,071,549
3,369,678
Cash at bank and in hand
822,713
742,364
4,114,248
4,265,605
Creditors: amounts falling due within one year
13
(3,148,625)
(3,285,879)
Net current assets
965,623
979,726
Creditors: amounts falling due after more than one year
14
(105,667)
(115,667)
Provisions for liabilities
Provisions
16
(32,450)
(38,381)
(32,450)
(38,381)
Net assets
827,506
825,678
Capital and reserves
Called up share capital
18
72,851
72,851
Share premium account
19
115,165
115,165
Profit and loss reserves
639,490
637,662
Total equity
827,506
825,678
The financial statements were approved by the board of directors and authorised for issue on 16 January 2023 and are signed on its behalf by:
Mr C F Cox
Director
Company Registration No. 02775128
GEORGE COX & SONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2020
72,851
115,165
603,900
791,916
Year ended 30 September 2021:
Profit and total comprehensive income for the year
-
-
508,978
508,978
Dividends
10
-
-
(475,216)
(475,216)
Balance at 30 September 2021
72,851
115,165
637,662
825,678
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
-
282,828
282,828
Dividends
10
-
-
(281,000)
(281,000)
Balance at 30 September 2022
72,851
115,165
639,490
827,506
GEORGE COX & SONS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 10 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
492,789
516,721
Interest paid
(4,810)
(5,645)
Income taxes paid
(116,630)
(19,126)
Net cash inflow from operating activities
371,349
491,950
Financing activities
Repayment of borrowings
(10,000)
(49,333)
Dividends paid
(281,000)
(475,216)
Net cash used in financing activities
(291,000)
(524,549)
Net increase/(decrease) in cash and cash equivalents
80,349
(32,599)
Cash and cash equivalents at beginning of year
742,364
774,963
Cash and cash equivalents at end of year
822,713
742,364
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 11 -
1
Accounting policies
Company information
George Cox & Sons Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Hall Lane Works, Farnworth, Bolton.
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 a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
This expectation is based upon a strong forward order book, along with forecasts for sales and cash, reinforcing the position of the directors in continuing 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 services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
Profit is recognised on long term contracts if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account, turnover and related costs as contract activity progresses. Turnover is calculated as the proportion of the contract value which is estimated to have been completed.
1.4
Stocks
Stock is valued at the lower of cost and net realisable value.
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.
1.5
Construction contracts
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 12 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors, loans due from group
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors and loans
, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable.
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.
1.10
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
When the company receives claims from third parties or employees, it makes a provision for the estimated uninsured element of each claim.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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 lease
d
asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
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
.
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 14 -
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.
Critical judgements
The key source of estimation and uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Personal injury claims
A provision is made for the excess payable over insurance proceeds on any personal injury claim made against the company. Due to the nature of the claims, it can be many years before the provision crystallises.
3
Turnover and other revenue
The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom. An analysis of the company's turnover is as follows:
2022
2021
£
£
Turnover analysed by class of business
Highway contractor
11,058,465
12,639,818
2022
2021
£
£
Other revenue
Grants received
16,193
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(16,193)
Operating lease charges
78,496
87,388
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,400
15,970
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 15 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Management
15
10
Administration
12
14
Site operatives
43
43
Total
70
67
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
2,110,487
2,168,423
Social security costs
201,589
216,339
Pension costs
60,911
60,659
2,372,987
2,445,421
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
28,828
82,475
Company pension contributions to defined contribution schemes
440
1,317
29,268
83,792
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2021 - 1).
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
4,810
5,645
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 16 -
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
66,273
116,925
Adjustments in respect of prior periods
(295)
Total current tax
65,978
116,925
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:
2022
2021
£
£
Profit before taxation
348,806
625,903
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
66,273
118,922
Adjustments in respect of prior years
(295)
Group relief
(1,997)
Taxation charge for the year
65,978
116,925
10
Dividends
2022
2021
£
£
Interim paid
281,000
475,216
11
Stocks
2022
2021
£
£
Raw materials and consumables
219,986
153,563
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 17 -
12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,254,129
1,527,885
Gross amounts owed by contract customers
868,619
874,659
Amounts owed by group undertakings
193,487
211,836
Other debtors
678,553
678,272
Prepayments and accrued income
76,761
77,026
3,071,549
3,369,678
13
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Other borrowings
15
10,000
10,000
Payments received on account
40,056
80,925
Trade creditors
2,336,979
2,202,165
Corporation tax
66,273
116,925
Other taxation and social security
406,434
426,067
Other creditors
12,062
6,760
Accruals and deferred income
276,821
443,037
3,148,625
3,285,879
14
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Other borrowings
15
105,667
115,667
15
Loans and overdrafts
2022
2021
£
£
Other borrowings
115,667
125,667
Payable within one year
10,000
10,000
Payable after one year
105,667
115,667
Other borrowings are secured by a personal guarantee from Mr C Cox, director. Interest is being charged on the loan at a rate of 4%. The loan is to be repaid in full by 31 December 2023.
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 18 -
16
Provisions for liabilities
2022
2021
£
£
Personal injury and damage claims
32,450
38,381
Movements on provisions:
Personal injury and damage claims
£
At 1 October 2021
38,381
Additional provisions in the year
15,600
Reversal of provision
(751)
Utilisation of provision
(20,780)
At 30 September 2022
32,450
When the company receives claims from third parties or employees it makes a provision for the estimated uninsured element of each claim.
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,911
60,659
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.
18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
72,851
72,851
72,851
72,851
The holders of ordinary shares are entitled to receive dividends and are entitled to one vote per share at the meetings of the Company. All shares rank equally with regard to the Company's residual assets.
19
Share premium account
The share premium account includes any premiums received on the issue of share capital. Any transaction costs associated with the issuing of shares are deducted from the share premium.
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 19 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
78,500
78,500
Between two and five years
278,708
314,000
In over five years
10,000
53,208
367,208
445,708
21
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2022
2021
£
£
Aggregate compensation
211,938
253,699
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Companies associated via the directors
During the year George Cox & Sons Limited incurred expenses of £443,040 (2021: £353,867) and made sales of £90,377 (2021: £82,600) to a company associated through the directors. At the year end £19,705 was due to (2021: £98,465 due from) the connected company.
In 2018, a company controlled by Mr C Cox, director, lent George Cox & Sons Limited £200,000. Interest is being charged on the loan at a rate of 4%. The balance due at the year end was £115,667 (2021: £125,667).
The loan is supported by a personal guarantee from Mr C Cox.
22
Ultimate controlling party
The ultimate parent company is George Cox Limited, a company registered in England and Wales. The registered office is Hall Lane Works, Farnworth, Bolton.
The company is included in the
consolidated financial statements
of
George Cox Limited. These consolidated financial statements are available from its registered office, Hall Lane Works, Bolton.
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 20 -
23
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
282,828
508,978
Adjustments for:
Taxation charged
65,978
116,925
Finance costs
4,810
5,645
Decrease in provisions
(5,931)
(1,618)
Movements in working capital:
(Increase)/decrease in stocks
(66,423)
9,440
Decrease/(increase) in debtors
298,129
(101,540)
Decrease in creditors
(86,602)
(21,109)
Cash generated from operations
492,789
516,721
24
Analysis of changes in net funds
1 October 2021
Cash flows
30 September 2022
£
£
£
Cash at bank and in hand
742,364
80,349
822,713
Borrowings excluding overdrafts
(125,667)
10,000
(115,667)
616,697
90,349
707,046
2022-09-30
2021-10-01
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