W D L (Contracting) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03886047 (England and Wales)

W D L (Contracting) Limited

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 March 2020

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Statement of Financial Position

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTORS:

Mr M Lewis

Mr R A Lewis

Mr C J Pascoe

Mr G Lockyer

Mr A Christopher

SECRETARY:

Mr M Lewis

REGISTERED OFFICE:

Stuart Quarry

Chapel Road

Penderyn

Rhondda Cynon Taff

CF44 9JY

REGISTERED NUMBER:

03886047 (England and Wales)

AUDITORS:

O'Brien & Partners

Chartered Accountants

& Statutory Auditors

Highdale House

7 Centre Court

Treforest Industrial Estate

Pontypridd

Rhondda Cynon Taff

CF37 5YR

The directors present their strategic report for the year ended 31 March 2020.

REVIEW OF BUSINESS

The company continues to operate as a ground-working contractor to the major UK house builders within South East Wales. The impact of the Covid-19 pandemic on the company resulted in a major disruption during the spring of 2020, resulting in a decrease in turnover during this period and the furloughing of many of the site based employees. Fortunately, as a result of prudent management of resources, the company maintained its regular payment structure during the height of the pandemic and remains financially resilient. There was a staged return to work on sites through the summer and we can report that the company's activities are returning to levels seen before the pandemic took hold. New procedures have been put in place to ensure the safety of our employees during this time.

KEY FINANCIAL HIGHLIGHTS

As previous years demand for new housing continued to be strong through 2019 and 2020, the major house builders continued to push ahead throughout South Wales for both speculative and housing association developments. Unfortunately, the performance of the company through the second half of the financial year was affected by the poor winter weather and as a consequence there was a reduction in turnover of 9.87%. However, due to prompt action by management during that period we can report an increase in net profit which is detailed below.

2020

2019

2018

Turnover

£34,280,118

£38,034,060

£31,817,810

Turnover growth (reduction)

(9.87%

)

19.53%

31.81%

Gross profit margin

12.55%

9.34%

9.34%

Profit before tax

6.91%

4.08%

2.13%

PRINCIPAL RISKS AND UNCERTAINTIES

The key current risk is the ongoing Covid-19 pandemic and what its long-term effects will be on the construction industry. At present the UK government is continuing to actively invest in long term infrastructure projects and regional administrations have also increased their spend on 'ready to go' projects. This added to the company's resilience planning and in-house capability and resources, with its highly proactive approach to managing risk, puts the company in a good position to move forward in this challenging period for the country.

ON BEHALF OF THE BOARD:

Mr M Lewis - Director

18 December 2020

The directors present their report with the financial statements of the company for the year ended 31 March 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of civil engineering.

DIVIDENDS

An interim dividend of £1,000,000 per share was paid on . The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2020 will be £ 1,000,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report.

Mr M Lewis

Mr R A Lewis

Other changes in directors holding office are as follows:

Mr C J Pascoe , Mr G Lockyer and Mr A Christopher were appointed as directors after 31 March 2020 but prior to the date of this report.

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors and group inter company loans. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Financial support from parent and other subsidiary undertakings is provided and available to support financing the company's operations.

DONATIONS

During the year the company made charitable donations totalling £44,283 (2019: £12,563)

FUTURE DEVELOPMENTS

The future prospects of the company and our industry remain positive despite concerns about Brexit. The company actively tenders for development contracts and continues to be successful in being awarded new contracts. The company continues to invest in IT systems and also in its workforce.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

AUDITORS

The auditors, O'Brien & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M Lewis - Director

18 December 2020

Opinion

We have audited the financial statements of W D L (Contracting) Limited (the 'company') for the year ended 31 March 2020 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity 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 March 2020 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

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

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

-

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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.

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 Statement of Directors' Responsibilities set out on page four, 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.

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.

Lewis Van Emden (Senior Statutory Auditor)

for and on behalf of O'Brien & Partners

Chartered Accountants

& Statutory Auditors

Highdale House

7 Centre Court

Treforest Industrial Estate

Pontypridd

Rhondda Cynon Taff

CF37 5YR

18 December 2020

TURNOVER

3

34,280,118

38,034,060

Cost of sales

30,097,223

34,479,918

GROSS PROFIT

4,182,895

3,554,142

Distribution costs

254,073

321,453

Administrative expenses

1,571,832

1,689,541

1,825,905

2,010,994

OPERATING PROFIT

5

2,356,990

1,543,148

Interest receivable and similar income

11,237

9,342

PROFIT BEFORE TAXATION

2,368,227

1,552,490

Tax on profit

6

450,385

296,173

PROFIT FOR THE FINANCIAL YEAR

1,917,842

1,256,317

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,917,842

1,256,317

CURRENT ASSETS

Stocks

8

1,042,755

917,357

Debtors

9

6,992,598

7,146,541

Cash at bank and in hand

1,889,929

1,755,005

9,925,282

9,818,903

CREDITORS

Amounts falling due within one year

10

5,478,795

5,868,680

NET CURRENT ASSETS

4,446,487

3,950,223

TOTAL ASSETS LESS CURRENT LIABILITIES

4,446,487

3,950,223

CREDITORS

Amounts falling due after more than one year

11

(723,560

)

(914,758

)

PROVISIONS FOR LIABILITIES

14

(2,437,741

)

(2,668,121

)

NET ASSETS

1,285,186

367,344

CAPITAL AND RESERVES

Called up share capital

15

1

1

Retained earnings

16

1,285,185

367,343

SHAREHOLDERS' FUNDS

1,285,186

367,344

The financial statements were approved by the Board of Directors and authorised for issue on 18 December 2020 and were signed on its behalf by:

Mr M Lewis - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2018

1

1,611,026

1,611,027

Changes in equity

Dividends

-

(2,500,000

)

(2,500,000

)

Total comprehensive income

-

1,256,317

1,256,317

Balance at 31 March 2019

1

367,343

367,344

Changes in equity

Dividends

-

(1,000,000

)

(1,000,000

)

Total comprehensive income

-

1,917,842

1,917,842

Balance at 31 March 2020

1

1,285,185

1,285,186

1.	STATUTORY INFORMATION

W D L (Contracting) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in theses financial statements are rounded to the nearest £.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepared publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7.

The financial statements of the company are consolidated in the financial statements of WD Lewis (Holdings) Limited. These consolidated financial statements are available from its registered office, Stuart Quarry, Chapel Road, Penderyn, Rhondda Cynon Taff, CF44 9JY.

Significant judgements and estimates

The application of the company's accounting policies, the management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Turnover

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of discounts and rebates allowed by the company and value added tax.

Long term contract retention income is only recognised as turnover if received by the date of approval of the company's financial statements for that financial year.

Contract turnover is calculated as that proportion of total contract value which revenue generated to date bears to total expected revenue for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer.

Inventories

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Taxation and deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Employee benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Other employee benefits such as paid holiday arrangements are recognised as an expense in the period in which they are incurred.

Provisions

Provisions are recognised when he company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

Long term contracts

Long term contract balances are stated at net cost less foreseeable losses less any applicable payments on account. The amount recorded as turnover in respect of long term contracts is ascertained by reference to the value of work carried out to date, less all attributable profits accumulated on contracts less than 60% complete at the balance sheet date and less 45% of attributable profits on contracts more than 60% and less than 100% complete at the balance sheet date. Attributable profit is recognised as the difference between measured contract valuations and related costs. Amounts recoverable on contracts are shown within debtors in the balance sheet. Full provision is made for losses on all contracts in the period in which they are first foreseen.

3.

TURNOVER

The company operates in the UK and all of its turnover is attributable to the UK market.

4.	EMPLOYEES AND DIRECTORS

31.3.20

31.3.19

£

£

Wages and salaries

7,886,348

7,422,492

Social security costs

769,389

741,762

Other pension costs

264,473

199,030

8,920,210

8,363,284

The average number of employees during the year was as follows:

31.3.20

31.3.19

Production and sales

200

191

Office management

27

26

227

217

31.3.20

31.3.19

£

£

Directors' remuneration

-

-

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.20

31.3.19

£

£

Hire of plant and machinery

3,741,248

3,625,873

Auditors' remuneration

22,013

22,000

Taxation compliance services

2,000

2,000

Pensions

264,473

199,031

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.3.20

31.3.19

£

£

Current tax:

UK corporation tax

450,385

296,173

Tax on profit

450,385

296,173

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.20

31.3.19

£

£

Profit before tax

2,368,227

1,552,490

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

449,963

294,973

Effects of:

Disallowable expenses

422

1,200

Total tax charge

450,385

296,173

7.

DIVIDENDS

31.3.20

31.3.19

£

£

shares of each

Interim dividends

1,000,000

2,500,000

8.

STOCKS

31.3.20

31.3.19

£

£

Long term work-in-progress

785,282

511,955

Raw materials

257,473

405,402

1,042,755

917,357

9.

DEBTORS

31.3.20

31.3.19

£

£

Amounts falling due within one year:

Trade debtors

4,174

-

Other debtors

2

2

Amounts receivable on contracts

2,425,576

4,251,071

Retentions receivable

178,080

280,849

Amounts due from group undertakings

3,456,689

1,383,535

VAT repayable

180,140

316,326

Accrued income

24,377

-

6,269,038

6,231,783

Amounts falling due after more than one year:

Retentions receivable

723,560

914,758

Aggregate amounts

6,992,598

7,146,541

Amounts due to group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.20

31.3.19

£

£

Bank loans and overdrafts (see note 12)

-

81,488

Trade creditors

2,266,740

3,629,753

Corporation tax

320,411

36,173

Social security and other taxes

417,667

503,452

Other creditors

278,408

399,133

Excess payments on account

529,621

484,024

Amounts due to group undertakings

1,398,429

282,481

Accrued expenses

267,519

452,176

5,478,795

5,868,680

Amounts owed to group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.20

31.3.19

£

£

Retentions receivable provision

723,560

914,758

12.

LOANS

An analysis of the maturity of loans is given below:

31.3.20

31.3.19

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

-

81,488

13.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.20

31.3.19

£

£

Bank overdraft

-

81,488

The bank overdraft is secured by way of a group unlimited multilateral guarantee given by the company and its parent W D Lewis (Holdings) Limited and fellow subsidiaries William D Lewis (Aberdare) Limited, W D L (Concrete Products) Limited and W D L Homes Limited.

14.	PROVISIONS FOR LIABILITIES

31.3.20

31.3.19

£

£

Other provisions

Provision for foreseeable losses

905,000

996,000

Provisions for site costs

1,532,741

1,672,121

2,437,741

2,668,121

Other

provisions

£

Balance at 1 April 2019

2,668,121

Profit and loss account

(230,380

)

Balance at 31 March 2020

2,437,741

15.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.3.20

31.3.19

value:

£

£

1

Ordinary

£1

1

1

16.

RESERVES

Retained

earnings

£

At 1 April 2019

367,343

Profit for the year

1,917,842

Dividends

(1,000,000

)

At 31 March 2020

1,285,185

Called up share capital represents the nominal value of shares that have been issued.

Retained earnings includes all current and prior period retained profit and losses.

17.	PENSION COMMITMENTS

The company operates a defined contribution scheme for certain employees and contributes to separate individual defined contribution schemes for certain directors. The assets of all schemes are held separately from those of the company in independently administered funds.

The pension cost charge represents contributions payable by the company to the funds and amounted to £264,473 (2019 - £199,031), the amount outstanding at the year end was £21,396 (2019: £19,177).

18.	ULTIMATE PARENT COMPANY

The company's ultimate parent undertaking is W D Lewis (Holdings) Limited, a company incorporated in England and Wales.

19.	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.

The financial statements of the company are consolidated in the financial statements of WD Lewis (Holdings) Limited. These consolidated financial statements are available from its registered office, Stuart Quarry, Penderyn, Aberdare, Rhondda Cynon Taff, CF44 9JY.

20.	ULTIMATE CONTROLLING PARTY

The ultimate controlling parties at the year end were Mr R Lewis and Mr M Lewis by virtue of their equal shareholdings in WD Lewis (Holdings) Limited.

21.	GUARANTEES

HSBC Bank hold a first fixed charge over book and other debts, chattels, goodwill and uncalled capital both present and future and a first floating charge over all assets and undertaking both present and future.

A company unlimited multilateral guarantee has been given by W D Lewis (Holdings) Limited, William D Lewis (Aberdare) Limited, WDL (Contracting) Limited, WDL Homes Limited and WDL (Concrete Products) Limited to guarantee the liabilities of HSBC Bank plc.