Company Registration No. 03961252 (England and Wales)
ABLE TOWING LIMITED
ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
ABLE TOWING LIMITED
COMPANY INFORMATION
Directors
I Miller
Mrs E Miller
A Miller
T Miller
Secretary
Mrs E Miller
Company number
03961252
Registered office
Carlyon Road
Atherstone
Warwickshire
CV9 1JE
Auditor
Leonard Wilson & Co
Colinton House
Leicester Road
Bedworth
Warwickshire
CV12 8AB
Business address
Carlyon Road
Atherstone
Warwickshire
CV9 1JE
Bankers
Lloyds Bank Plc
17-23 Coventry Street
Nuneaton
Warwickshire
CV11 5TD
ABLE TOWING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 24
ABLE TOWING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 1 -
The directors present the strategic report for the year ended 30 September 2022.
Fair review of the business
The results for the year and the financial position at the year end were considered most satisfactory by the
directors.
The group continued to invest in plant & machinery, computer and office equipment over the past year. Th
e
group
's
current
assets have
increased due to the increase in stock and cash at bank. The group's current liabilities increased due to the increase directors' loan account stated in note 14 following the vote of a dividend amounting to £4m as per the director's report. The combined effect of the above has slightly decreased the company's net assets from £18,394,291 in 2021 to £18,116,955 in 2022.
The
group
's turnover
decreased
from £
19,879,300 in 2021 to £19,138,109
for this financial year
.
The
group
's profit before tax amounted to £
4,542,448
compared to £
5,182,506
in the previous year.
The
directors
forecast the
company's turnover and
profit
s to be higher for the year ended 30 September 2022 in comparison to the prior year. The directors are confident the turnover was slightly reduced due to COVID 19 travel restrictions being lifted. The company encountered volatile raw material price increases throughout the year which affected the company's gross profit margin.
The director
s
expect the turnover and profits for the year ended 30 September 2023 to be similar to the 2022 year.
T
he directors are satisfied that the company can continue to prepare the accounts on a going concern basis.
Principal risks and uncertainties
The directors acknowledge that during the normal course of business there are a number of potential risks and
uncertainties which could have a material impact on the company's long term performance. The directors
acknowledge the responsibilities to implement a risk strategy to ensure that an appropriate risk framework is
operating effectively and has established systems to mitigate these risks.
I Miller
Director
9 January 2023
ABLE TOWING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 2 -
The directors present their annual report and financial statements for the year ended 30 September 2022.
Principal activities
The principal activity of the group continued to be that of
manufacturers and suppliers of towbars and
associated products and services.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £4,000,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
I Miller
Mrs E Miller
A Miller
T Miller
Auditor
In accordance with the company's articles, a resolution proposing that Leonard Wilson & Co be reappointed as auditor of the group will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group 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;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ABLE TOWING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
On behalf of the board
I Miller
Director
9 January 2023
ABLE TOWING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ABLE TOWING LIMITED
- 4 -
Opinion
We have audited the
financial statements of
Able Towing Limited
(the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements,
including
significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2022 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
group and
parent 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
group's and
parent
company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ABLE TOWING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABLE TOWING LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
group and the parent
company and
their
environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept 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 directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the
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 parent company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The auditor’s assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur
. The audit procedures include:
-
Which laws and regulations the auditor identified as being of significance in the context of the entity
.
-
How the auditor obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework
.
-
How the auditor obtained an understanding of the entity’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance
.
Audit response to risks identified
The auditor’s explanation of its audit response will depend on the risks identified but may include:
- Enquiry of management, those charged with governance around actual and potential litigation and claims.
- Enquiry of entity managerial staff in compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
ABLE TOWING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABLE TOWING LIMITED
- 6 -
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.
Ian Turner FCA (Senior Statutory Auditor)
For and on behalf of Leonard Wilson & Co
11 January 2023
Chartered Accountants
Statutory Auditor
Colinton House
Leicester Road
Bedworth
Warwickshire
CV12 8AB
ABLE TOWING LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
19,138,109
19,879,300
Cost of sales
(12,014,209)
(12,924,379)
Gross profit
7,123,900
6,954,921
Administrative expenses
(2,600,048)
(1,810,455)
Other operating income
13,674
37,786
Operating profit
4
4,537,526
5,182,252
Interest receivable and similar income
7
4,922
254
Profit before taxation
4,542,448
5,182,506
Tax on profit
8
(819,784)
(841,738)
Profit for the financial year
3,722,664
4,340,768
Profit for the financial year is all attributable to the owners of the parent company.
ABLE TOWING LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 8 -
2022
2021
£
£
Profit for the year
3,722,664
4,340,768
Other comprehensive income
-
-
Total comprehensive income for the year
3,722,664
4,340,768
Total comprehensive income for the year is all attributable to the owners of the parent company.
ABLE TOWING LIMITED
GROUP BALANCE SHEET
AS AT 30 SEPTEMBER 2022
30 September 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
6,130,298
5,547,722
Current assets
Stock
12
2,939,617
1,956,117
Debtors
13
2,355,261
2,348,150
Cash at bank and in hand
14,460,757
13,038,309
19,755,635
17,342,576
Creditors: amounts falling due within one year
14
(7,280,539)
(4,242,441)
Net current assets
12,475,096
13,100,135
Total assets less current liabilities
18,605,394
18,647,857
Provisions for liabilities
Deferred tax liability
15
488,439
253,566
(488,439)
(253,566)
Net assets
18,116,955
18,394,291
Capital and reserves
Called up share capital
17
1,000
1,000
Profit and loss reserves
18,115,955
18,393,291
Total equity
18,116,955
18,394,291
The financial statements were approved by the board of directors and authorised for issue on 9 January 2023 and are signed on its behalf by:
09 January 2023
I Miller
Director
ABLE TOWING LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2022
30 September 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
6,130,298
5,547,722
Investments
11
2
2
6,130,300
5,547,724
Current assets
Debtors
13
10,556,429
7,083,970
Cash at bank and in hand
6,018,509
6,474,508
16,574,938
13,558,478
Creditors: amounts falling due within one year
14
(4,099,844)
(458,345)
Net current assets
12,475,094
13,100,133
Total assets less current liabilities
18,605,394
18,647,857
Provisions for liabilities
Deferred tax liability
15
488,439
253,566
(488,439)
(253,566)
Net assets
18,116,955
18,394,291
Capital and reserves
Called up share capital
17
1,000
1,000
Profit and loss reserves
18,115,955
18,393,291
Total equity
18,116,955
18,394,291
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the year was £3,722,664 (2021 - £4,340,768 profit).
The financial statements were approved by the board of directors and authorised for issue on 9 January 2023 and are signed on its behalf by:
09 January 2023
I Miller
Director
Company Registration No. 03961252
ABLE TOWING LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2020
1,000
15,052,523
15,053,523
Year ended 30 September 2021:
Profit and total comprehensive income for the year
-
4,340,768
4,340,768
Dividends
9
-
(1,000,000)
(1,000,000)
Balance at 30 September 2021
1,000
18,393,291
18,394,291
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
3,722,664
3,722,664
Dividends
9
-
(4,000,000)
(4,000,000)
Balance at 30 September 2022
1,000
18,115,955
18,116,955
ABLE TOWING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2020
1,000
15,052,523
15,053,523
Year ended 30 September 2021:
Profit and total comprehensive income for the year
-
4,340,768
4,340,768
Dividends
9
-
(1,000,000)
(1,000,000)
Balance at 30 September 2021
1,000
18,393,291
18,394,291
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
3,722,664
3,722,664
Dividends
9
-
(4,000,000)
(4,000,000)
Balance at 30 September 2022
1,000
18,115,955
18,116,955
ABLE TOWING LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 13 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
7,410,027
5,535,769
Corporation taxes paid
(987,966)
(748,615)
Net cash inflow from operating activities
6,422,061
4,787,154
Investing activities
Purchase of tangible fixed assets
(1,004,535)
(729,132)
Proceeds from disposal of tangible fixed assets
-
20,000
Interest received
4,922
254
Net cash used in investing activities
(999,613)
(708,878)
Financing activities
Dividends paid to equity shareholders
(4,000,000)
(1,000,000)
Net cash used in financing activities
(4,000,000)
(1,000,000)
Net increase in cash and cash equivalents
1,422,448
3,078,276
Cash and cash equivalents at beginning of year
13,038,309
9,960,033
Cash and cash equivalents at end of year
14,460,757
13,038,309
ABLE TOWING LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 14 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
19
801,608
(3,745,528)
Corporation taxes paid
(16,922)
(63,830)
Net cash inflow/(outflow) from operating activities
784,686
(3,809,358)
Investing activities
Purchase of tangible fixed assets
(1,004,535)
(729,132)
Proceeds from disposal of tangible fixed assets
20,000
Interest received
958
254
Dividends received
3,762,892
3,992,606
Net cash generated from investing activities
2,759,315
3,283,728
Financing activities
Dividends paid to equity shareholders
(4,000,000)
(1,000,000)
Net cash used in financing activities
(4,000,000)
(1,000,000)
Net decrease in cash and cash equivalents
(455,999)
(1,525,630)
Cash and cash equivalents at beginning of year
6,474,508
8,000,138
Cash and cash equivalents at end of year
6,018,509
6,474,508
ABLE TOWING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 15 -
1
Accounting policies
Company information
Able Towing Limited (“the company”)
is a
private
limited company domiciled and incorporated in
England and Wales
.
The registered office is
Carlyon Road, Atherstone, Warwickshire, CV9 1JE.
The group consists of Able Towing Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Able Towing Limited is the ultimate controlling party
and
owns the entire issued share capital and of Tow-Trust
Towbars Limited, a company registered in England & Wales.
1.2
Basis of consolidation
The consolidated
financial statements
incorporate those of Able Towing Limited and its subsidia
ry Tow-Trust Towbars Limited
.
All
financial statements
are made up to 30 September 2022
.
All intra-group transactions
and
balances between group companies are eliminated on consolidation.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the
group
has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT
.
1.5
Tangible fixed assets
Tangible fixed assets
are measured at cost
,
net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
-See note 10 to these accounts
Plant and machinery
-15% Reducing balance basis
Computer and office equipment
-20% Straight line basis
Motor vehicle
-25% Reducing balance basis
1.6
Fixed asset investments
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
ABLE TOWING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.7
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs
.
1.8
Stock
Stock is
stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present condition.
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks
and
other short-term liquid investments
.
1.10
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances
, are
measured at transaction
price.
Basic financial liabilities
Basic financial liabilities, including
creditors are recognised at transaction price.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
ABLE TOWING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Sales from the subsidiary's principal activity
19,138,109
19,879,300
2022
2021
£
£
Other revenue
Interest income
4,922
254
Grants received
1,674
24,914
ABLE TOWING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 18 -
4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(1,674)
(24,914)
Depreciation of owned tangible fixed assets
418,496
312,055
Loss/(Profit) on disposal of plant and machinery
2,267
(2,282)
Loss on disposal of computer and office equipment
1,196
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
5,320
4,370
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
81
74
4
4
Their aggregate remuneration comprised:
Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
2,364,555
2,089,235
Social security costs
220,008
191,364
Pension costs
70,545
67,629
2,655,108
2,348,228
ABLE TOWING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 19 -
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
958
254
Corporation tax interest received
3,964
-
Total income
4,922
254
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
659,571
921,595
Adjustments in respect of prior periods
(74,660)
(119,494)
Total current tax
584,911
802,101
Deferred tax
Origination and reversal of timing differences
234,873
39,637
Total tax charge
819,784
841,738
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
4,542,448
5,182,506
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
863,066
984,676
Permanent capital allowances in excess of depreciation
(182,905)
(56,397)
Adjustments in respect of financial assets
657
Research and development tax credit
(70,243)
(119,494)
Deferred tax
234,873
39,637
Corporation tax adjustment in respect of prior years
(4,417)
(6,684)
Enhanced allowance
(21,247)
Taxation charge
819,784
841,738
ABLE TOWING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 20 -
9
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Final paid
4,000,000
1,000,000
10
Tangible fixed assets
Group
Freehold land and buildings
Plant and machinery
Computer and office equipment
Motor vehicle
Total
£
£
£
£
£
Cost
At 1 October 2021
3,806,844
2,929,036
110,323
13,675
6,859,878
Additions
977,472
27,063
1,004,535
Disposals
(2,566)
(1,495)
(4,061)
At 30 September 2022
3,806,844
3,903,942
135,891
13,675
7,860,352
Depreciation and impairment
At 1 October 2021
1,235,106
64,744
12,306
1,312,156
Depreciation charged in the year
400,370
17,784
342
418,496
Eliminated in respect of disposals
(299)
(299)
(598)
At 30 September 2022
1,635,177
82,229
12,648
1,730,054
Carrying amount
At 30 September 2022
3,806,844
2,268,765
53,662
1,027
6,130,298
At 30 September 2021
3,806,844
1,693,930
45,579
1,369
5,547,722
ABLE TOWING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
10
Tangible fixed assets
(Continued)
- 21 -
Company
Freehold land and buildings
Plant and machinery
Computer and office equipment
Motor vehicle
Total
£
£
£
£
£
Cost
At 1 October 2021
3,806,844
2,929,036
110,323
13,675
6,859,878
Additions
977,472
27,063
1,004,535
Disposals
(2,566)
(1,495)
(4,061)
At 30 September 2022
3,806,844
3,903,942
135,891
13,675
7,860,352
Depreciation and impairment
At 1 October 2021
1,235,106
64,744
12,306
1,312,156
Depreciation charged in the year
400,370
17,784
342
418,496
Eliminated in respect of disposals
(299)
(299)
(598)
At 30 September 2022
1,635,177
82,229
12,648
1,730,054
Carrying amount
At 30 September 2022
3,806,844
2,268,765
53,662
1,027
6,130,298
At 30 September 2021
3,806,844
1,693,930
45,579
1,369
5,547,722
No depreciation has been charged in the current or previous year on the freehold land and
buildings as the
directors consider the estimated residual value of the assets exceeds their
present carrying values.
11
Fixed asset investments
Group
Company
2022
2021
2022
2021
£
£
£
£
Unlisted investments
2
2
The
above stated investment is the entire issued share capital of
of
Tow-Trust Towbars Limited
a company registered in England & Wales. There have been no other acquisitions or disposals during the
year
.
Movements in fixed asset investments
Company
Investments
£
Cost or valuation
At 1 October 2021 and 30 September 2022
2
Carrying amount
At 30 September 2022
2
At 30 September 2021
2
ABLE TOWING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 22 -
12
Stock
Group
Company
2022
2021
2022
2021
£
£
£
£
Finished goods and goods for resale
2,939,617
1,956,117
13
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,304,639
2,210,458
Amounts owed by group undertakings
-
-
10,556,429
7,023,322
Prepayments and accrued income
50,622
137,692
60,648
2,355,261
2,348,150
10,556,429
7,083,970
14
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
£
£
£
£
Trade creditors
2,652,968
2,460,703
100,000
Corporation tax payable
156,040
559,095
21,339
Other taxation and social security
471,687
785,637
-
-
Directors' loan account
3,999,844
437,006
3,999,844
437,006
7,280,539
4,242,441
4,099,844
458,345
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
488,439
253,566
Liabilities
Liabilities
2022
2021
Company
£
£
Accelerated capital allowances
488,439
253,566
ABLE TOWING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
15
Deferred taxation
(Continued)
- 23 -
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 October 2021
253,566
253,566
Charge to profit or loss
234,873
234,873
Liability at 30 September 2022
488,439
488,439
16
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
70,545
67,629
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
17
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
18
Cash generated from group operations
2022
2021
£
£
Profit for the year after tax
3,722,664
4,340,768
Adjustments for:
Taxation charged
819,784
841,738
Investment income
(4,922)
(254)
Loss/(Profit) on disposal of plant and machinery
2,267
(2,282)
Loss on disposal of computer and office equipment
1,196
Depreciation of tangible fixed assets
418,496
312,055
Movements in working capital:
Increase in stocks
(983,500)
(450,695)
Increase in debtors
(7,111)
(46,390)
Increase in creditors
3,441,153
540,829
Cash generated from operations
7,410,027
5,535,769
ABLE TOWING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 24 -
19
Cash generated from/(absorbed by) operations - company
2022
2021
£
£
Profit for the year after tax
3,722,664
4,340,768
Adjustments for:
Taxation charged
230,456
60,976
Investment income
(3,763,850)
(3,992,860)
Loss/(Profit) on disposal of plant and machinery
2,267
(2,282)
Loss on disposal of computer and office equipment
1,196
Depreciation of tangible fixed assets
418,496
312,055
Movements in working capital:
Increase in debtors
(3,472,459)
(4,732,514)
Increase in creditors
3,662,838
268,329
Cash generated from/(absorbed by) operations
801,608
(3,745,528)
20
Analysis of changes in net funds - group
1 October 2021
Cash flows
30 September 2022
£
£
£
Cash at bank and in hand
13,038,309
1,422,448
14,460,757
21
Analysis of changes in net funds - company
1 October 2021
Cash flows
30 September 2022
£
£
£
Cash at bank and in hand
6,474,508
(455,999)
6,018,509
2022-09-30
2021-10-01
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