Company Registration number:
Portland Stone Firms Limited
for the Year Ended 31 March 2023
Portland Stone Firms Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Portland Stone Firms Limited
Company Information
Directors |
M Stewkesbury M J Smith |
Company secretary |
E Smith |
Registered office |
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Auditors |
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Portland Stone Firms Limited
Strategic Report for the Year Ended 31 March 2023
The directors present their strategic report for the year ended 31 March 2023.
Principal activity
The principal activity of the company is the quarrying, mining and manufacture of Portland Stone from its landholdings.
Fair review of the business
The group maintained its strong order intake with an upturn in the market. An increased focus on niche masonry sales and previously delayed manufacture information being released from our customers, significantly increased turnover and profitability.
The group continues to invest in its quarry, mining and factory plant, consolidating the commitment to delivering quality products to an expanding client base, whilst retaining existing custom.
This has been reflected in a strong performance in the year with increases in turnover, gross and net profit despite cost pressure, particularly relating to energy and fuel. To mitigate the impact of these costs, the company invested in solar panels during the year to reduce costs and improve the company’s environmental footprint.
The results for the year have strengthened the group’s balance sheet with a significant increase in net current assets and a continued reduction in hire purchase obligations. The group does not have any bank debt.
As disclosed in note 1, these financial statements include a correction for a prior period error in the year to 31 March 2022 due to the group over accruing royalties payable to landowners of £170,000.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2023 |
2022 |
Turnover |
£ |
4,624,430 |
3,670,742 |
Gross profit |
£ |
1,677,028 |
934,791 |
(Loss)/Profit before tax |
£ |
522,976 |
(220,916) |
The balance sheet remains strong with net assets of £7.6m.
Future developments
The masonry market remains buoyant, and we anticipate the demand to remain high for the foreseeable future. With additional investment in new quarry and factory plant efficiencies continue to improve.
Considering the cash position, order book, banking facilities available and the potential for additional borrowing based on the investment property and other assets held by the group, the Directors have concluded that the group is a going concern for a period of at least the next 12 months from the approval of these accounts and have prepared these accounts on that basis.
Portland Stone Firms Limited
Strategic Report for the Year Ended 31 March 2023
Principal risks and uncertainties
Portland stone is a premium construction product and therefore the group is shielded from much of the general economic situation as many of end customers of the group’s product are high net worth individuals or it is used in prestigious redevelopments, however approximately 20% of the group’s output is used in general construction and a slowdown in house building has affected this product line.
As mentioned above, this is mitigated by the more bespoke and high-end product the group is offering and whilst there has been some slowdown during the year to 31 March 2024, there is a secured order book for the next year, and we remain confident on delivering a quality service, with any impact to broadly focus on dimension block sales should this be a dominant factor.
We continue to place great emphasis on staff training and the health and safety of our employees to not only meet our legal obligations but as part of our retention policies for our skilled workforce.
Approved by the Board on
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Portland Stone Firms Limited
Directors' Report for the Year Ended 31 March 2023
The directors present their report and the consolidated financial statements for the year ended 31 March 2023.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company manages its working capital requirements by constant review and by using long term funding for fixed assets where appropriate.
Price risk, credit risk, liquidity risk and cash flow risk
The company has funding in place with substantial share capital and loans from shareholders. These, together with specific asset backed finance, provide the working capital and finance for capital investment.
Trade debtors are managed by policies concerning the credit offered to customers and regular monitoring of amounts outstanding.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Future Developments
The future developments of the business are included within the strategic report.
Approved by the Board on
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Portland Stone Firms Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Portland Stone Firms Limited
Independent Auditor's Report to the Members of Portland Stone Firms Limited
Opinion
We have audited the financial statements of Portland Stone Firms Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2023 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Portland Stone Firms Limited
Independent Auditor's Report to the Members of Portland Stone Firms Limited
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
In the light of our knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Portland Stone Firms Limited
Independent Auditor's Report to the Members of Portland Stone Firms Limited
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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:
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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; |
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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; |
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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, taxation legislation, employment, environmental and health and safety legislation; |
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
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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:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
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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:
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performed analytical procedures to identify any unusual or unexpected relationships; |
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tested journal entries to identify unusual transactions; |
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assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
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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:
Portland Stone Firms Limited
Independent Auditor's Report to the Members of Portland Stone Firms Limited
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agreeing financial statement disclosures to underlying supporting documentation; and |
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enquiring of management as to actual and potential litigation and claims. |
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 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 auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Goodwood House
Blackbrook Park Avenue
Somerset
TA1 2PX
Portland Stone Firms Limited
Consolidated Profit and Loss Account
for the Year Ended 31 March 2023
Note |
2023 |
(As restated) |
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Turnover |
|
|
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Cost of sales |
( |
( |
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Gross profit |
|
|
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Administrative expenses |
( |
( |
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Other operating income |
|
|
|
Operating profit/(loss) |
|
( |
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Other interest receivable and similar income |
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Interest payable and similar charges |
( |
( |
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Profit/(loss) before tax |
|
( |
|
Taxation |
( |
( |
|
Profit/(loss) for the financial year |
|
( |
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
( |
Portland Stone Firms Limited
Consolidated Statement of Comprehensive Income
for the Year Ended 31 March 2023
2023 |
(As restated) |
|
Profit/(loss) for the year |
|
( |
Total comprehensive income for the year |
|
( |
Total comprehensive income attributable to: |
||
Owners of the company |
|
( |
Portland Stone Firms Limited
(Registration number: 02912016)
Consolidated Balance Sheet as at 31 March 2023
Note |
2023 |
(As restated) |
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Fixed assets |
|||
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Revaluation reserve |
|
|
|
Profit and loss account |
|
|
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Equity attributable to owners of the company |
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|
|
Total equity |
|
|
Approved and authorised by the
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Portland Stone Firms Limited
(Registration number: 02912016)
Balance Sheet as at 31 March 2023
Note |
2023 |
(As restated) |
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Fixed assets |
|||
Tangible assets |
|
|
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Investment property |
|
|
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Investments |
|
|
|
|
|
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Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
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Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
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Revaluation reserve |
|
|
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Retained earnings |
|
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Shareholders' funds |
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The company made a profit after tax for the financial year of £522,816 (2022 - loss of £442,190).
Approved and authorised by the
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Portland Stone Firms Limited
Consolidated Statement of Changes in Equity
for the Year Ended 31 March 2023
Ordinary share capital |
Revaluation reserve |
Profit and loss reserve (as restated) |
Total |
Total equity |
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At 1 April 2022 |
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Movement in year : |
|||||
Profit for the year |
- |
- |
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Total comprehensive income |
- |
- |
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|
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At 31 March 2023 |
|
|
|
|
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Ordinary share capital |
Revaluation reserve |
Profit and loss reserve |
Total |
Total equity |
|
At 1 April 2021 |
|
|
|
|
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Movement in year : |
|||||
Loss for the year (as restated) |
- |
- |
( |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
( |
Realisation of gain on sale of investment property |
- |
(1,116,902) |
1,116,902 |
- |
- |
Total movement for the year |
- |
(1,116,902) |
674,712 |
(442,190) |
(442,190) |
At 31 March 2022 (as restated) |
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|
|
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Portland Stone Firms Limited
Statement of Changes in Equity
for the Year Ended 31 March 2023
Ordinary share capital |
Revaluation reserve |
Profit and loss reserve (as restated) |
Total |
|
At 1 April 2022 |
|
|
|
|
Movement in year : |
||||
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
At 31 March 2023 |
|
|
|
|
Ordinary share capital |
Revaluation reserve |
Profit and loss reserve |
Total |
|
At 1 April 2021 |
|
|
|
|
Movement in year : |
||||
Loss for the year (as restated) |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
Realisation of gain on sale of investment property |
- |
(1,116,902) |
1,116,902 |
- |
- |
(1,116,902) |
674,712 |
(442,190) |
|
At 31 March 2022 (as restated) |
|
|
|
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Portland Stone Firms Limited
Consolidated Statement of Cash Flows
for the Year Ended 31 March 2023
Note |
2023 |
(As restated) |
|
Cash flows from operating activities |
|||
Profit/(loss) for the year |
|
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Loss from sales of investment properties |
|
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
(Increase)/decrease in trade debtors |
( |
|
|
Increase/(decrease) in trade creditors |
|
( |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
- |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of investment properties |
- |
( |
|
Proceeds from sale of investment properties |
- |
|
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
- |
( |
|
Repayment of other borrowing |
- |
( |
|
Payments to finance lease creditors |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 April 2022 |
|
|
|
Cash and cash equivalents at 31 March 2023 |
679,080 |
275,303 |
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are presented in Sterling (£).
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2023.
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Changes in accounting estimate
Depreciation of mining equipment
In line with management's assessment of the residual economic value of the group's large mining equipment, the depreciation calculation has been amended in the current year to include a residual value.
This has had the effect of reducing the depreciation charge by £204,339 in the current year.
Prior period errors
The accounts for the year ended 31 March 2022 contained an accrual for royalties based on management's expectations of the amounts payable to landowners for mining activity carried out by the group..
Subsequently it has been determined that this accrual was overstated by £170,000. This had the effect of overstating the group's loss for the year ended 31 March 2022 by this amount less the corporation tax deduction of £32,300. Net assets were therefore understated by £137,700.
Judgements
As set out in the Strategic Report, the directors have concluded that the group is a going concern for a period of at least 12 months from the date of approval of these accounts. This assessment takes into account the cash resources of the company, the potential for additional borrowing based on the investment property and other assets held by the group and the known orders in place for the year ahead. |
Key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects that period. If the revision affects both current and future periods then it is recognised in both the current and future periods.
The group has significant holdings of land in a relatively small area on the Island of Portland and with comparatively little market data available on which to base the valuation of investment property. The valuation of the investment property takes into account information that is available, including from previous independent valuations and also prices obtained when land has been disposed of.
The group also depreciates its mineral holdings, held within land and buildings, based on the volume of stone that is extracted from its holdings. This is an estimate only as there is no certainty over the size and quality of the mineral holdings not yet extracted with the estimate based on survey reports.
The group depreciates its plant and machinery at 20% reducing balance. Included in this class of assets are large mining machines which the directors consider to have a residual value. Accordingly, in these accounts, the depreciation calculation has been amended and a reduction to the historic depreciation charged has been included totalling £204,339.
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Turnover recognition
Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods provided to customers.
Turnover is recognised on despatch of goods.
Government grants
Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences present as other debtors or deferred income within the balance sheet.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.
Tangible assets
Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Asset class |
Depreciation method and rate |
Freehold land |
In proportion to the minerals extracted during the year |
Short leasehold land and buildings |
Over the term of the lease |
Plant and machinery |
20% reducing balance |
Motor vehicles |
25% reducing balance |
Freehold land, not classed as investment property, where there is no mining or quarrying activity is not depreciated.
Investment property
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
Fully written off |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.
Loans receivable are measured initially at fair value, net of transaction cost, and subsequently at amortised cost using the effective interest method less any impairment.
Stocks
Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities are measured initially at fair value, net of transaction costs, and subsequently at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Reserves
Called up share capital represents the nominal value of shares that have been issued.
Profit and loss account includes all current and prior period profits and losses.
Revaluation reserve is the surplus or deficit arising on the revaluation of an asset of a company.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payments obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the group in independently administered funds.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
Other revenue |
|
|
|
|
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
Government grants |
- |
|
Rental income |
|
|
|
|
Operating profit/(loss) |
Arrived at after charging/(crediting):
2023 |
2022 |
|
Depreciation expense |
|
|
Operating lease expense - other |
467 |
- |
Profit on disposal of tangible fixed assets |
( |
( |
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
- |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Foreign exchange (losses)/gains |
( |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
2023 |
2022 |
|
Production |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
56,823 |
46,391 |
Auditors' remuneration |
2023 |
2022 |
|
Audit of these financial statements |
16,000 |
13,500 |
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Taxation |
Tax charged/(credited) in the profit and loss account:
2023 |
(As restated) |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
2,546 |
86,571 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax expense in the profit and loss account |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
(As restated) |
|
Profit/(loss) before tax |
|
( |
Corporation tax at standard rate |
|
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
UK deferred tax expense relating to changes in tax rates or laws |
- |
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
- |
Tax increase from effect of capital allowances and depreciation |
|
|
Total tax charge |
|
|
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 April 2022 |
|
|
At 31 March 2023 |
|
|
Amortisation |
||
At 1 April 2022 |
|
|
At 31 March 2023 |
|
|
Carrying amount |
||
At 31 March 2023 |
- |
- |
Tangible assets |
Group
Land and buildings |
Motor vehicles |
Plant and machinery |
Total |
|
Cost or valuation |
||||
At 1 April 2022 |
|
|
|
|
Additions |
|
- |
|
|
Disposals |
( |
- |
- |
( |
At 31 March 2023 |
|
|
|
|
Depreciation |
||||
At 1 April 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 March 2023 |
|
|
|
|
Carrying amount |
||||
At 31 March 2023 |
|
|
|
|
At 31 March 2022 |
|
|
|
|
Included within the net book value of land and buildings above is £2,248,056 (2022 - £2,249,620) in respect of freehold land and buildings and £70,149 (2022 - £155,656) in respect of short leasehold land and buildings.
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Restriction on title and pledged as security
Investment properties |
Group
2023 |
|
At 1 April 2022 and 31 March 2023 |
|
The investment properties were revalued on 9 August 2012 by Hull Gregson Hull, Chartered Surveyors, who are external to the company, on an open market basis and updated as appropriate annually by the directors.
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
||||
2023 |
2022 |
||||||
Subsidiary undertakings |
|||||||
|
Same as company |
|
|
|
|||
|
Same as company |
|
|
|
|||
* indicates direct investment of the company
Subsidiary undertakings
Cladding Consultants UK Limited The principal activity of Cladding Consultants UK Limited is |
Stone Firms Limited The principal activity of Stone Firms Limited is |
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Raw materials and consumables |
- |
|
- |
|
Work in progress |
|
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
|
|
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Debtors |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Trade debtors |
|
|
|
|
Amounts owed by group undertakings |
- |
- |
|
|
Other debtors |
|
|
- |
- |
Prepayments |
|
|
|
|
Total current trade and other debtors |
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash on hand |
|
|
|
|
Cash at bank |
|
|
|
|
|
|
|
|
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Creditors |
Group |
Company |
||||
Note |
2023 |
(As restated) |
2023 |
(As restated) |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
Other creditors |
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
Corporation tax |
141,294 |
193,019 |
141,294 |
193,019 |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
Deferred tax and other provisions |
Group
Deferred tax |
Total |
|
At 1 April 2022 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 31 March 2023 |
|
|
|
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Revaluation of property |
- |
|
- |
|
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
2022 |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Revaluation of property |
- |
|
- |
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £Nil (2022 - £Nil) were payable to the scheme at the end of the year and are included in creditors.
Loans and borrowings |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Current loans and borrowings |
||||
Hire purchase contracts |
|
|
|
|
Other borrowings |
|
|
|
|
|
|
|
|
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Non-current loans and borrowings |
||||
Hire purchase contracts |
|
|
|
|
Group
Other borrowings
Hire purchase contracts are denominated in £ with a nominal interest rate of base rate plus 2%. The carrying amount at year end is £287,779 (2022 - £509,034).
Finance leases are secured upon the assets to which they relate.
Other borrowings also include £439,610 (2022 - £418,563) due to a related party as set out in note 23.
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Contingent liabilities |
Group
A subsidiary company has received a corporation tax assessment, including interest, totalling £282,890. Based on professional advice received, the directors believe this to be ringfenced in the subsidiary company which has no assets to settle this assessment.
Analysis of changes in net debt |
Group
At 1 April 2022 |
Financing cash flows |
At 31 March 2023 |
|
Cash and cash equivalents |
|||
Cash |
275,150 |
403,777 |
678,927 |
Borrowings |
|||
Lease liabilities |
(509,035) |
221,256 |
(287,779) |
|
|||
( |
|
|
Related party transactions |
Group
Key management personnel
The directors are considered to be the only key management and their remuneration is disclosed in Note 9.
Summary of transactions with entities with joint control or significant interest
Interest of £Nil (2022 - £Nil) was charged in the year and at the year end the amount owed by the company was £439,610 (2022 - £418,563).
During the prior year the company sold investment property for £1,112,000 to that company and in the current year a £21,047 retention has been clawed back by that company.
Portland Stone Firms Limited
Notes to the Financial Statements
for the Year Ended 31 March 2023
Summary of transactions with other related parties
Rent of £33,068 (2022 - £31,617) was paid to close relatives of a director.
Rent of £36,000 (2022 - £36,000) was paid to a trust under common control of a shareholder.
Company
Summary of transactions with subsidiaries
Parent and ultimate parent undertaking |
The ultimate controlling party is