REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2022 |
FOR |
TOPEK SOUTHERN LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2022 |
FOR |
TOPEK SOUTHERN LIMITED |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
TOPEK SOUTHERN LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 AUGUST 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
Appledram Barns |
Birdham Road |
Chichester |
West Sussex |
PO20 7EQ |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2022 |
The directors present their strategic report for the year ended 31 August 2022. |
INTRODUCTION |
The company continues to work with blue chip clients, which we also refer to as "end users" and adopting a specialism approach to building envelope works for the majority of its turnover. |
This client model has been adopted from years of research into our "perfect client avatar" model and will continue to be at the forefront of the success of the business. |
This is a scalable business due to its unique and collaborative approach to our supply chain and clients, allowing the continuation of its profitably and continued growth in the years to come. All the while maintaining high levels of client satisfaction and employee engagement and loyalty on both fronts. |
BUSINESS PERFORMANCE |
The performance of the business during the 2021-22 financial year continued to be positive and showed a growth in turnover and similar results in profitability as in the years gone by. |
Overheads increased as we prepared for large growth scheduled within the 2022-23 financial year. The investment into the business was made in several areas, such as; research and development (R&D), software, recruitment, key personnel promotions, external consultancy, department creation and development, business boltons, employee packages and benefits improvements, training schemes and much more. |
The business continued improvements in all forms, but especially in metric measurement amidst the uncertainty of Brexit and the Covid-19 pandemic, it continues to showcase its long term planning and work/client type is the leading pillar of its success and we have every confidence it will continue to be in the years to come. |
FINANCIAL KEY PERFORMANCE INDICATORS |
2022 | 2021 |
Turnover (£) | £18,062,113 | £14,047,820 |
Turnover growth (%) | 28.57% | 53.86% |
Gross Profit (£) | £5,437,171 | £4,611,525 |
Gross Profit (%) | 30.10% | 32.83% |
KPI's for the upcoming financial year look increasingly positive, with over 40 million pounds in secured orders, with over 30 million pounds worth of secured work expected to be billed and invoiced during the 2022-23 financial year. Giving financial security to the business. |
THE ROLE OF THE BOARD OF DIRECTORS |
Main responsibilities |
The Board's primary responsibility is to promote the long-term success of the company by delivering on its goals year on year, whilst maintaining high levels of satisfaction with all. |
This is affected by setting out our strategy with the ongoing performance monitoring. The Board holds board meetings monthly to review the main aspects of our business, including financial reviews and forecasts, resources, internal controls, performance, opportunities and risks. |
All directors are directly responsible for and involved in all projects with day to day management carried out by senior management and must act in the way they consider, in good faith, would be most likely to promote the success of our vision and core values, which are at the forefront of all we do. |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2022 |
Short and long term planning |
The board and senior management team partake in various forms of planning to ensure we are on track with our short and long term goals. We carry these out in various forms such as; |
- | Weekly senior leadership team (SLT) meetings - Tracking all key performance metrics across the business |
- | Monthly board of director meetings - Reviewing business approach and long term risks |
- | 6 weekly SLT meetings - Increased emphasis on performance, risks and approach model to all |
- | 90 day goal setting meetings - Reviewing previous successes and mistakes, whilst setting the goals and key performance indicators for the 90 days ahead |
- | Yearly/annual goal setting and review meetings - Reviewing the year has gone by and our 1, 3, 5 & 10 year targets, whilst setting long term goals in line with the same review system to ensure continued success. Measuring, reporting and overcoming risks to the business and its clients, employees and supply chain alike. |
Employee engagement |
Employee engagement is a core value to the business, where we continue to invest in our people and are proud to have our culture as a leading fundamental as to why our recruitment drive has been so successful in recent years as we continue to grow year on year. |
We have invested in R&D to improve our engagement and have implementation plans for the 2022-23 financial year to improve upon it once more. |
This improvement will come in many forms, such as dedicated staff members, software implementation, improved employee benefits and a large emphasis on providing communication platforms for all employees to improve their own experiences day to day. |
Client relationships |
The company adopts a specialist client avatar model, that ensures we are able to provide value to our clients in the most impactful way, from project to project and remain a positive influence on their businesses outside of the projects themselves. |
A large share of the work will be the company acting in the capacity of a principal contractor whilst on site for blue chip clients, due to the majority of its work being on live/occupied buildings or buildings intended to be refurbished during shut down periods to enable a speedy completion to allow the building assets to continue generating revenue thereafter. |
We continue to take a specialist approach model to live and occupied schemes, enabling limited disruption to the building owner and tenants alike, whilst maintaining high outputs of programme performance, with strict control on safety in all forms. |
Supply chain relationships |
We continue to engage, review and seek out supply chain improvements to enable the business performances to improve, whilst rewarding loyalty and excellence provided in return. |
We work closely with our suppliers, encouraging and educating them and our employees to recognise their responsibilities regarding protecting the environment and achieving our environmental objectives and targets. Communicating and consulting with all stakeholders as appropriate. |
STAKEHOLDER ENGAGEMENT |
Stakeholder engagement continues to be at the forefront of the company's communication strategies ensuring relevant information is not only communicated, but understood at all levels, with further emphasis on improving these channels of communication in the years to come. |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Economic uncertainty remains the single biggest risk within the construction sector and we manage these risk through robust systems and procedures. We have a healthy forward order book for repeat order clients through 2022 into 2023 and continue to build our reputation and client list through our proven delivery record. |
Additionally, the speed and extent of economic recovery from the Coronavirus pandemic will continue to impact on our sector and we continue to monitor closely our supply chain and clients to manage risks on new and existing projects. Accordingly, we have adapted the way we operate our business and have continued to work with our clients to manage the risks on both existing and new projects, to ensure that there is no detrimental effect on the business's ability to continue to trade. |
FUTURE DEVELOPMENTS |
The directors understand the construction industry and also the evolving market in which it operates. The company is totally focussed on meeting the needs of the UK Market as we continue to review and improve on regulations regarding fire protection. To this end, the company continually invests in developing solutions which provide excellence in processes from conception to completion. This investment aims to keep us as the preferred envelope provider of choice when working on live and occupied buildings in the "end user" and refurbishment market. |
A lot of investment has gone into exploring and investigating software to improve operational impact on the business. These investigations have earmarked three confirmed software implementation plans for the 2022-23 financial year. |
Software one: |
Will be improving operational efficiency and better control of all documentation to stakeholders at all levels |
Software two: |
Will be improving employee engagement and communication on business strategy, goals and financial recordings |
Software three: |
Will be improving employee engagement, culture and allow a communication channel for employees to improve their day to day experience with the business |
ON BEHALF OF THE BOARD: |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 AUGUST 2022 |
The directors present their report with the financial statements of the company for the year ended 31 August 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of bespoke building solutions. |
DIVIDENDS |
During the year dividends of £179,710 (2021 - £150,000) were paid. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2021 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling. The company does not enter into any formally designated hedging arrangements. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the 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 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. |
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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 AUGUST 2022 |
AUDITORS |
Lewis Brownlee (Chichester) Limited were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TOPEK SOUTHERN LIMITED |
Opinion |
We have audited the financial statements of Topek Southern Limited (the 'company') for the year ended 31 August 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 August 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. |
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 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. |
Other information |
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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. |
Other matters |
The financial statements for the comparative period are unaudited. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TOPEK SOUTHERN LIMITED |
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 identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page five, 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 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. |
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. |
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. |
The extent to which the audit was considered capable of detecting irregularities including fraud |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | 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 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 legislation such as 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 inspecting legal correspondence, where applicable; 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TOPEK SOUTHERN LIMITED |
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; |
- | assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors, where applicable. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
Appledram Barns |
Birdham Road |
Chichester |
West Sussex |
PO20 7EQ |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
3,165,816 | 3,126,536 |
Other operating income | 5 |
OPERATING PROFIT | 7 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
BALANCE SHEET |
31 AUGUST 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Profit and loss account |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 AUGUST 2022 |
Called up | Profit and |
share | loss | Total |
capital | account | equity |
£ | £ | £ |
Balance at 1 September 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 August 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 August 2022 |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 22 |
Interest paid | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Bank loan repayments in year | ( |
) | ( |
) |
Hire purchase capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
23 |
1,588,901 |
Cash and cash equivalents at end of year |
23 |
2,679,034 |
3,307,298 |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2022 |
1. | STATUTORY INFORMATION |
Topek Southern Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
Monetary amounts in these Financial Statements are rounded to the nearest £1. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirement of paragraph 33.7. |
Going concern |
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. |
Turnover |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Rendering of services |
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- | the amount of turnover can be measured reliably; |
- | it is probable that the Company will receive the consideration due under the contract; |
- | the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
- | the costs incurred and the costs to complete the contract can be measured reliably. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows: |
Plant and machinery | - | 25% on cost |
Fixtures and fittings | - | 15% on cost |
Motor vehicles | - | 25% on cost |
Computer equipment | - | 25% on cost |
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. |
Financial instruments |
Financial instruments are classified by the director as basic or advanced following the conditions in FRS 102 section 11. Basic financial instruments are recognised at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. The company has no advanced financial instruments. |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account using the effective interest method. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
3. | CRITICAL ACCOUNTING 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. |
The critical judgements made by management that have a significant effect on the amounts recognised in the financial statements are described below. |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2022 |
Critical judgment and estimation uncertainty |
In respect of construction contracts, management undertake regular progress reviews. Profits or losses are recognised within the income statement as part of a contract's turnover and cost where management consider that the outcome of a construction contract can be estimated reliably. Reliable estimates are determined with reference to each contract's stage of completion, future costs to complete and recoverability of amounts invoiced or applied for. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2022 | 2021 |
£ | £ |
5. | OTHER OPERATING INCOME |
2022 | 2021 |
£ | £ |
Government grants |
6. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
Site workers | 22 | 13 |
Office staff | 19 | 15 |
2022 | 2021 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2022 |
7. | OPERATING PROFIT |
The operating profit is stated after charging: |
2022 | 2021 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the group financial statements of the parent company. |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank loan interest |
Interest on overdue taxation |
Hire purchase interest |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2021 - |
Effects of: |
Expenses not deductible for tax purposes |
Effect of enacted deferred tax rate | 20,256 | 19,097 |
Effect of super deduction allowance | (27,845 | ) | (12,004 | ) |
Losses surrendered from group undertakings | (65,274 | ) | - |
Total tax charge | 542,654 | 612,462 |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2022 |
9. | TAXATION - continued |
Factors that may affect the future tax charges |
At Budget 2021, the government announced that the Corporation Tax main rate for the years starting 1 April 2023 will increase from 19% to 25%. In addition, the government legislated in Finance Bill 2021 to introduce a small profits rate of 19% for financial year April 2023. The small profits rate will apply to profits of £50,000 or less. |
10. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of £1 each |
Interim |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 September 2021 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 August 2022 |
DEPRECIATION |
At 1 September 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 August 2022 |
NET BOOK VALUE |
At 31 August 2022 |
At 31 August 2021 |
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows: |
2022 | 2021 |
£ | £ |
Motor vehicles | 412,919 | 220,577 |
Depreciation of £60,196 (2021- £31,627) was charged on assets under hire purchase contracts. |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2022 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts recoverable on |
contracts |
Other debtors |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Amounts payable on contracts |
and payments received on |
account | 1,715,717 | 1,344,215 |
Corporation Tax |
Social security and other taxes |
VAT | 1,178,595 | 312,497 |
Other creditors |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2022 |
15. | LOANS - continued |
Bank loans comprise: |
Maturity date | Fixed interest | Monthly | Carrying amount |
rate | repayment | 2022 | 2021 |
£ | £ | £ |
Coronavirus business interruption loan | 2026 | 3.19% | 4,167 | 195,833 | 245,833 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable |
operating leases |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2022 | 2021 |
£ | £ |
Bank loans |
Hire purchase contracts | 405,415 | - |
Bank loans are secured by a bond and floating charge over all assets of the company. The company has provided a cross guarantee totalling £1,146,300 to other group members. |
Obligations under hire purchase contracts are secured on the assets purchased. |
18. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax | 163,970 | 79,570 |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2022 |
18. | PROVISIONS FOR LIABILITIES - continued |
Deferred tax |
£ |
Balance at 1 September 2021 |
Accelerated capital allowances | 84,400 |
Balance at 31 August 2022 |
The deferred tax rate used is 25% as set out in the government's Budget (2021 - 25%). |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
20. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. At the balance sheet date the company had an outstanding pension contributions liability of £15,161 (2021 - £8,982). |
21. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
At the year end the company was owed £140,079 (2021 - £140,792) from a company under common control. This amount is included within other debtors. |
Parent and ultimate parent undertaking |
The immediate and ultimate parent undertaking is TSL Assets Limited, incorporated in England and Wales. TSL Assets Limited prepares group financial statements of which copies can be requested at the registered office address of Birch House, Parklands Business Park, Forest Road, Denmead, Hants, PO76XP. |
22. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 20,251 | 1,551 |
3,315,027 | 3,238,185 |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
TOPEK SOUTHERN LIMITED (REGISTERED NUMBER: SC361395) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2022 |
23. | 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 August 2022 |
31/8/22 | 1/9/21 |
£ | £ |
Cash and cash equivalents | 2,679,034 | 3,307,298 |
Year ended 31 August 2021 |
31/8/21 | 1/9/20 |
£ | £ |
Cash and cash equivalents | 3,307,298 | 1,588,901 |
24. | ANALYSIS OF CHANGES IN NET FUNDS |
Other |
non-cash |
At 1/9/21 | Cash flow | changes | At 31/8/22 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 3,307,298 | (628,264 | ) | 2,679,034 |
3,307,298 | ( |
) | 2,679,034 |
Debt |
Finance leases | (216,512 | ) | 73,070 | (261,973 | ) | (405,415 | ) |
Debts falling due |
within 1 year | (50,000 | ) | - | - | (50,000 | ) |
Debts falling due |
after 1 year | (195,833 | ) | 50,000 | - | (145,833 | ) |
(462,345 | ) | 123,070 | (261,973 | ) | (601,248 | ) |
Total | 2,844,953 | (505,194 | ) | (261,973 | ) | 2,077,786 |