Company registration number 04086465 (England and Wales)
B & W PLANT HIRE AND SALES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2022
B & W PLANT HIRE AND SALES LIMITED
COMPANY INFORMATION
Directors
Mr W R Whitwell
Mr P R Fox
(Appointed 9 December 2022)
Mrs K L Barnett
(Appointed 9 December 2022)
Mr A Partington
(Appointed 9 December 2022)
Company number
04086465
Registered office
11 Neptune Court
Hallam Way
Blackpool
FY4 5LZ
Auditor
MHA Moore and Smalley
Richard House
9 Winckley Square
Preston
PR1 3HP
B & W PLANT HIRE AND SALES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
B & W PLANT HIRE AND SALES LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 AUGUST 2022
- 1 -
The directors present the strategic report for the period ended 31 August 2022.
Fair review of the business
For the period ended 31 August 2022, the company has seen a pro-rata increase in turnover of 13.6%, which is due to the continued investment and expansion of the fleet and the impact of seasonality, with no impact of the Christmas closure of building sites seen in this period. Gross margin has seen an increase to 49.6% from 48.0% which is due to the mix of sales and the type of items on hire. Non-operated plant continues to be the core income stream, supported by operated plant rental. The result of a successful period of trading is that net asses have increased to £15.9m from £14.7m.
Principal risks and uncertainties
The principal risks and uncertainties the company faces, along with how the director seeks to mitigate these risks are explained below:
The company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, price risk, credit risk, liquidity risk and interest rate risk, where relevant. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs and as such, no hedge accounting is applied.
The company keeps abreast of all changing industry standards and regulations through both formal and informal training programs.
Current global forces, such as supply chain pressures and the war in Ukraine are reviewed to assess any impact on the company. Whilst there continues to be a limited supply of new equipment, due to the above factors and the recovery from Covid-19 through the world, good relationships are held with suppliers and customers to help manage any delays that are seen.
The cost of living crisis may have an impact on the company due to the residential housing market being affected by higher interest rates. However, the commercial market remains strong due to committed long term investment being made.
Credit control continues to be difficult as companies and clients continue to work out of the cycle of the pandemic and are now being impacted by the effect of rising inflation and the knock-on effects from the war in Ukraine. The company seeks to minimise this risk by having in place credit control procedures and by reviewing the level of credit given to customers.
Development and performance
During December 2022, Fox Brothers Group Ltd acquired 51% of the voting rights in the immediate parent company, B & W Plant Group Ltd. This acquisition gives the company access to a wider geographical network to grow the business and its national footprint further by redistributing some of its plant pool into new sites to further increase sales and maximise the investment made over the last 12 months.
There are further opportunities for cost savings and reductions in carbon footprint by the relocation of plant closer to the end customer by utilising depots in the Fox network.
The company has continued to invest in new equipment to ensure they retain their market share by supplying the construction industry with modern, efficient and reliable equipment.
The company has traded consistently and within expectations since recovery from the Covid-19 pandemic began in February 2021. The current period has seen continued investment due to the company being successful within the large equipment sector.
The directors feel that the next years trading will be a year of consolidation due to the amount of investment which has been made over the last 6 years. They feel that the company will continue to operate within the existing parameters of the financial period under review with regards to sales and profit margin.
B & W PLANT HIRE AND SALES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
- 2 -
Key performance indicators
The company's key performance indicators are as follows:
Gross profit – 5 months to 31 August 2022: 49.6% (Year to March 2022: 48.0%)
Profit before dividends – 5 months to 31 August 2022: £1.2m (Year to March 2022: £1.8m)
Both key performance indicators were in line with company expectations.
Other information and explanations
Finally, the directors would like to place on record their sincere thanks to the dedicated and talented staff employed throughout the company, without whose efforts the company would not continue to thrive. They are very grateful to all members of the team for their hard work and loyalty they have shown throughout the period under review.
Mr W R Whitwell
Director
17 February 2023
B & W PLANT HIRE AND SALES LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 AUGUST 2022
- 3 -
The directors present their annual report and financial statements for the period ended 31 August 2022.
Principal activities
The principal activity of the company during the year was the hire and sale of construction industry plant and machinery.
Results and dividends
The results for the period are set out on page 8.
Ordinary dividends were paid amounting to £7,500. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr W R Whitwell
Mr P R Fox
(Appointed 9 December 2022)
Mrs K L Barnett
(Appointed 9 December 2022)
Mr A Partington
(Appointed 9 December 2022)
Auditor
The auditor, MHA Moore and Smalley, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
It has done so in respect of future developments and financial instruments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
Mr W R Whitwell
Director
17 February 2023
B & W PLANT HIRE AND SALES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 AUGUST 2022
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
B & W PLANT HIRE AND SALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF B & W PLANT HIRE AND SALES LIMITED
- 5 -
Opinion
We have audited the financial statements of B & W Plant Hire and Sales Limited (the 'company') for the period ended 31 August 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 31 August 2022 and of its profit for the period then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
B & W PLANT HIRE AND SALES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF B & W PLANT HIRE AND SALES LIMITED
- 6 -
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 period 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below:
-
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;
-
Enquires with management about any known or suspected instances of fraud;
-
Examination of journal entries and other adjustments to test for appropriateness and identify any instances of management override of controls;
-
Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries
.
Because of the field in which the client operates we identified that employment law, health and safety legislation and compliance with the UK Companies Act are the area
s
most likely to have a material impact on the financial statements.
B & W PLANT HIRE AND SALES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF B & W PLANT HIRE AND SALES LIMITED
- 7 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognize the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Virginia Cooper (Senior Statutory Auditor)
For and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
Richard House
9 Winckley Square
Preston
PR1 3HP
21 February 2023
B & W PLANT HIRE AND SALES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 AUGUST 2022
- 8 -
Period
Year
ended
ended
31
31
August 2022
March 2022
Notes
£
£
Turnover
3
7,524,046
15,890,720
Cost of sales
(3,793,600)
(8,264,102)
Gross profit
3,730,446
7,626,618
Administrative expenses
(2,097,762)
(5,208,746)
Other operating income
30,479
Operating profit
4
1,632,684
2,448,351
Interest receivable and similar income
7
1,097
541
Interest payable and similar expenses
8
(254,348)
(449,218)
Profit before taxation
1,379,433
1,999,674
Tax on profit
9
(135,864)
(160,273)
Profit for the financial period
1,243,569
1,839,401
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
B & W PLANT HIRE AND SALES LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2022
31 August 2022
- 9 -
August 2022
March 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
37,586,425
36,378,528
Current assets
Stocks
13
155,870
168,022
Debtors
14
4,371,533
4,815,724
Cash at bank and in hand
36,734
128,791
4,564,137
5,112,537
Creditors: amounts falling due within one year
15
(11,080,755)
(12,395,424)
Net current liabilities
(6,516,618)
(7,282,887)
Total assets less current liabilities
31,069,807
29,095,641
Creditors: amounts falling due after more than one year
16
(12,929,726)
(12,358,653)
Provisions for liabilities
Deferred tax liability
19
2,241,536
2,074,512
(2,241,536)
(2,074,512)
Net assets
15,898,545
14,662,476
Capital and reserves
Called up share capital
21
500,100
500,100
Profit and loss reserves
15,398,445
14,162,376
Total equity
15,898,545
14,662,476
The financial statements were approved by the board of directors and authorised for issue on 17 February 2023 and are signed on its behalf by:
Mr W R Whitwell
Director
Company Registration No. 04086465
B & W PLANT HIRE AND SALES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
500,100
12,760,975
13,261,075
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
1,839,401
1,839,401
Dividends
10
-
(438,000)
(438,000)
Balance at 31 March 2022
500,100
14,162,376
14,662,476
Period ended 31 August 2022:
Profit and total comprehensive income for the period
-
1,243,569
1,243,569
Dividends
10
-
(7,500)
(7,500)
Balance at 31 August 2022
500,100
15,398,445
15,898,545
B & W PLANT HIRE AND SALES LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2022
- 11 -
August 2022
March 2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
2,018,239
5,395,626
Interest paid
(254,348)
(449,218)
Income taxes refunded
249,780
Net cash inflow from operating activities
2,013,671
4,946,408
Investing activities
Purchase of tangible fixed assets
(13,661)
(3,356,488)
Proceeds on disposal of tangible fixed assets
1,628,886
4,175,669
Interest received
1,097
541
Net cash generated from investing activities
1,616,322
819,722
Financing activities
Payment of finance leases obligations
(3,388,731)
(6,777,277)
Dividends paid
(7,500)
(438,000)
Net cash used in financing activities
(3,396,231)
(7,215,277)
Net increase/(decrease) in cash and cash equivalents
233,762
(1,449,147)
Cash and cash equivalents at beginning of period
(619,188)
829,959
Cash and cash equivalents at end of period
(385,426)
(619,188)
Relating to:
Cash at bank and in hand
36,734
128,791
Bank overdrafts included in creditors payable within one year
(422,160)
(747,979)
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2022
- 12 -
1
Accounting policies
Company information
B & W Plant Hire and Sales Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
11 Neptune Court, Hallam Way, Blackpool, FY4 5LZ. The company's place of business is Shorrocks Delf, Brandy House Brow, Blackburn, BB2 3EY.
1.1
Reporting period
The current reporting period covers the 5 months from 1 April 2022 to 31 August 2022. The previous accounting period covered the 12 months from 1 April 2021 to 31 March 2022. As such, the two reporting periods are not entirely comparable. The reporting date has been changed for administrative purposes.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future
, with group support available should it be required
. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
The turnover shown in the profit and loss account represents amounts invoiced during the year for the hire and sale of construction industry plant and equipment, exclusive of Value Added Tax. Income is recognised in line with service delivery, the period of hire or based upon the progress of the relevant contract as appropriate.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures & equipment
15% straight line
Plant and machinery
over 3 - 7 years
Computer equipment
10% straight line
Motor vehicles
25% straight line
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 13 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.7
Impairment of fixed assets
At each reporting end date, the
company
reviews the carrying amounts of its tangible
and intangible
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 (if any). 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
Stocks
Stocks
are 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 location and condition.
Cost is calculated using the first in first out method.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
All of the company's financial assets are basic financial instruments.
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets
Financial assets
are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables
and
loans from
fellow group companies are
initially recognised at transaction price.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less.
Trade creditors
are recognised initially at transaction
price
.
Other financial liabilities
All of the company's financial liabilities are basic financial instruments.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 15 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.16
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.
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Leases
The
Company
enters into commercial property leases for its
office and storage buildings
. Where management has determined, based on an evaluation of the terms and conditions, that the lessor retains all significant risks and rewards of these properties, it will account for the contracts as operating leases.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Depreciation
In determining the appropriate depreciation rates for the Company’s assets, management reviews the operating policies of the business and makes judgements as to the applicable useful economic lives of the assets, considering residual values.
Stock valuation
Stocks
are stated at the lower of cost (first
in
first
out method) or net reali
s
able value. The cost of
stocks
comprise net prices paid for materials purchased. Net reali
s
able value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Stock
provisions are recogni
s
ed for slow-moving, obsolete or unsalable
stock
and are reviewed on a quarterly basis.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
August 2022
March 2022
£
£
Turnover analysed by class of business
Plant hire and sales
7,524,046
15,890,720
August 2022
March 2022
£
£
Turnover analysed by geographical market
UK sales
7,524,046
15,890,720
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
3
Turnover and other revenue
(Continued)
- 17 -
August 2022
March 2022
£
£
Other revenue
Interest income
1,097
541
Grants received
30,479
4
Operating profit
August 2022
March 2022
Operating profit for the period is stated after charging/(crediting):
£
£
Government grants
(30,479)
Fees payable to the company's auditor for the audit of the company's financial statements
7,300
5,500
Depreciation of owned tangible fixed assets
620,467
1,532,333
Depreciation of tangible fixed assets held under finance leases
1,508,254
2,940,588
Profit on disposal of tangible fixed assets
(581,020)
(1,139,634)
Operating lease charges
143,260
314,846
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
August 2022
March 2022
Number
Number
Sales
2
2
Distribution
12
13
Administration
57
52
Total
71
67
Their aggregate remuneration comprised:
August 2022
March 2022
£
£
Wages and salaries
1,127,443
2,417,255
Social security costs
132,976
266,088
Pension costs
96,319
168,548
1,356,738
2,851,891
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
- 18 -
6
Directors' remuneration
August 2022
March 2022
£
£
Remuneration for qualifying services
7,057
14,307
Company pension contributions to defined contribution schemes
17,072
40,980
24,129
55,287
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (March 2022 - 1).
7
Interest receivable and similar income
August 2022
March 2022
£
£
Interest income
Other interest income
1,097
541
8
Interest payable and similar expenses
August 2022
March 2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
16,888
29,806
Interest on invoice finance arrangements
11,394
9,613
28,282
39,419
Other finance costs:
Interest on finance leases and hire purchase contracts
226,066
409,799
254,348
449,218
9
Taxation
August 2022
March 2022
£
£
Current tax
Adjustments in respect of prior periods
(31,160)
Deferred tax
Origination and reversal of timing differences
126,938
(368,770)
Changes in tax rates
40,086
497,883
Adjustment in respect of prior periods
31,160
Total deferred tax
167,024
160,273
Total tax charge
135,864
160,273
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
9
Taxation
(Continued)
- 19 -
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
August 2022
March 2022
£
£
Profit before taxation
1,379,433
1,999,674
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (March 2022: 19.00%)
262,092
379,938
Tax effect of expenses that are not deductible in determining taxable profit
5,277
7,391
Effect of change in corporation tax rate
40,086
497,883
Permanent capital allowances in excess of depreciation
(142,700)
(761,461)
Depreciation on assets not qualifying for tax allowances
2,269
5,362
Under/(over) provided in prior years
(31,160)
Deferred tax adjustments in respect of prior years
31,160
Taxation charge for the period
135,864
160,273
The Chancellor stated his intention to maintain the main rate of corporation tax at 19%. This change to previously announced policy was substantively enacted on 17 March 2020. The Chancellor subsequently announced his intention to increase the headline rate of corporation tax to 25% from 1 April 2023, this policy was substantively enacted on 25 May 2021.
10
Dividends
August 2022
March 2022
£
£
Final paid
7,500
438,000
11
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2022 and 31 August 2022
500,000
Amortisation and impairment
At 1 April 2022 and 31 August 2022
500,000
Carrying amount
At 31 August 2022
At 31 March 2022
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
- 20 -
12
Tangible fixed assets
Fixtures & equipment
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
464,944
47,469,612
73,760
2,398,934
50,407,250
Additions
32,160
4,315,527
4,324
32,473
4,384,484
Disposals
(2,420,030)
(234,834)
(2,654,864)
At 31 August 2022
497,104
49,365,109
78,084
2,196,573
52,136,870
Depreciation and impairment
At 1 April 2022
192,443
12,433,739
51,790
1,350,750
14,028,722
Depreciation charged in the period
28,250
1,915,626
2,969
181,876
2,128,721
Eliminated in respect of disposals
(1,372,164)
(234,834)
(1,606,998)
At 31 August 2022
220,693
12,977,201
54,759
1,297,792
14,550,445
Carrying amount
At 31 August 2022
276,411
36,387,908
23,325
898,781
37,586,425
At 31 March 2022
272,501
35,035,873
21,970
1,048,184
36,378,528
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
August 2022
March 2022
£
£
Plant and machinery
30,299,186
27,870,919
Motor vehicles
659,163
709,717
30,958,349
28,580,636
13
Stocks
August 2022
March 2022
£
£
Finished goods and goods for resale
155,870
168,022
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
- 21 -
14
Debtors
August 2022
March 2022
Amounts falling due within one year:
£
£
Trade debtors
4,083,474
3,596,602
Corporation tax recoverable
218,620
Other debtors
118,901
876,172
Prepayments and accrued income
169,158
124,330
4,371,533
4,815,724
15
Creditors: amounts falling due within one year
August 2022
March 2022
Notes
£
£
Bank loans and overdrafts
17
1,722,160
2,047,979
Obligations under finance leases
18
7,527,397
7,116,378
Trade creditors
1,604,949
2,795,146
Amounts owed to group undertakings
150,000
Taxation and social security
71,623
70,337
Other creditors
50,000
Accruals and deferred income
154,626
165,584
11,080,755
12,395,424
The bank loans and overdrafts are secured by way of fixed and floating charges over all assets of the company. Finance leases are secured against the assets to which they relate.
16
Creditors: amounts falling due after more than one year
August 2022
March 2022
Notes
£
£
Obligations under finance leases
18
12,929,726
12,358,653
Finance leases are secured against the assets to which they relate.
17
Loans and overdrafts
August 2022
March 2022
£
£
Bank loans
1,300,000
1,300,000
Bank overdrafts
422,160
747,979
1,722,160
2,047,979
Payable within one year
1,722,160
2,047,979
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
- 22 -
18
Finance lease obligations
August 2022
March 2022
Future minimum lease payments due under finance leases:
£
£
Within one year
8,071,968
7,578,420
In two to five years
14,019,203
13,190,950
22,091,171
20,769,370
Less: future finance charges
(1,634,048)
(1,294,339)
20,457,123
19,475,031
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The average lease term is 4-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Finance leases include £1,135,765 of balances relating to assets acquired before 31 August 2022 but where the finance was completed within 3 months of the year end.
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
August 2022
March 2022
Balances:
£
£
Accelerated capital allowances
6,567,631
5,994,037
Tax losses
(4,324,854)
(3,918,781)
Short term timing differences
(1,241)
(744)
2,241,536
2,074,512
August 2022
Movements in the period:
£
Liability at 1 April 2022
2,074,512
Charge to profit or loss
126,938
Effect of change in tax rate - profit or loss
40,086
Liability at 31 August 2022
2,241,536
It is not possible to quantify the amounts expected to reverse over the upcoming twelve months owing to uncertainties over the capital expenditure of the company.
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
- 23 -
20
Retirement benefit schemes
August 2022
March 2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
96,319
168,548
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
August 2022
March 2022
August 2022
March 2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500,100
500,100
500,100
500,100
22
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for
four
properties. These property leases have original terms of
5 or 10
years
each.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
August 2022
March 2022
£
£
Within one year
184,027
162,000
Between two and five years
485,978
484,667
In over five years
15,333
53,667
685,338
700,334
23
Related party transactions
Remuneration of key management personnel
Key management personnel and the directors are the same, and therefore the company has taken the exemption under
FRS 102 33.7A
to not disclose key management personnel remuneration.
Transactions with related parties
During the period the company entered into the following transactions with related parties:
Category
Description of
Income
Expenditure
transaction
August 2022
March 2022
August 2022
March 2022
£
£
£
£
Other related parties
Rent paid
88,250
211,820
Other related parties
Sales and purchases
1,475,968
3,605,549
40,659
6,741
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
23
Related party transactions
(Continued)
- 24 -
Balances with related parties
The following amounts were outstanding at the reporting end date:
Category
Amounts owed by
Amounts owed to
related parties
related parties
August 2022
March 2022
August 2022
March 2022
£
£
£
£
Entities with control, joint control or significant influence over the company
150,000
Other related parties
686,741
750,839
50,000
24
Ultimate controlling party
At the balance sheet date, the ultimate parent company was Brandy House Holdings Limited, a company incorporated in England and Wales. The registered office of Brandy House Holdings is 11 Neptune Court, Hallam Way, Blackpool, FY4 5LZ.
From 9 December 2022, the ultimate parent company is Fox Brothers Group Ltd, a company incorporated in England and Wales.
The registered office of
Fox Brothers Group Ltd is 11 Neptune Court, Hallam Way, Whitehills Business Park, Blackpool, FY4 5LZ.
At the balance sheet date, the ultimate controlling party was Mr W R Whitwell. From 9 December 2022, there is no individual controlling party.
The company was not included in any consolidated financial statements as at 31 August 2022, due to the change in reporting date.
25
Cash generated from operations
August 2022
March 2022
£
£
Profit for the period after tax
1,243,569
1,839,401
Adjustments for:
Taxation charged
135,864
160,273
Finance costs
254,348
449,218
Investment income
(1,097)
(541)
Gain on disposal of tangible fixed assets
(581,020)
(1,139,634)
Depreciation and impairment of tangible fixed assets
2,128,721
4,472,921
Movements in working capital:
Decrease/(increase) in stocks
12,152
(40,392)
Decrease/(increase) in debtors
225,571
(1,474,004)
(Decrease)/increase in creditors
(1,399,869)
1,128,384
Cash generated from operations
2,018,239
5,395,626
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
- 25 -
26
Analysis of changes in net debt
1 April 2022
Cash flows
New finance leases
31 August 2022
£
£
£
£
Cash at bank and in hand
128,791
(92,057)
-
36,734
Bank overdrafts
(747,979)
325,819
-
(422,160)
(619,188)
233,762
-
(385,426)
Borrowings excluding overdrafts
(1,300,000)
-
-
(1,300,000)
Obligations under finance leases
(19,475,031)
3,388,731
(4,370,823)
(20,457,123)
(21,394,219)
3,622,493
(4,370,823)
(22,142,549)
2022-08-31
2022-04-01
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