Company registration number 07182440 (England and Wales)
K M PLANT HIRE & GROUNDWORKS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
PAGES FOR FILING WITH REGISTRAR
K M PLANT HIRE & GROUNDWORKS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
K M PLANT HIRE & GROUNDWORKS LIMITED
BALANCE SHEET
AS AT
5 APRIL 2023
05 April 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
91,866
141,775
Current assets
Stocks
420,000
300,000
Debtors
4
1,195,924
864,793
Cash at bank and in hand
116,639
413,257
1,732,563
1,578,050
Creditors: amounts falling due within one year
5
(636,730)
(530,676)
Net current assets
1,095,833
1,047,374
Total assets less current liabilities
1,187,699
1,189,149
Creditors: amounts falling due after more than one year
6
(312,916)
(394,967)
Provisions for liabilities
(22,175)
(77,594)
Net assets
852,608
716,588
Capital and reserves
Called up share capital
7
2
2
Profit and loss reserves
852,606
716,586
Total equity
852,608
716,588
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 5 April 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 19 December 2023
Mr K L Lynch
Director
Company Registration No. 07182440
K M PLANT HIRE & GROUNDWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
- 2 -
1
Accounting policies
Company information
K M Plant Hire & Groundworks Limited is a private company limited by shares incorporated in England and Wales. The registered office is Merlin House, Langstone Business Park, Priory Drive, Langstone, Newport, NP18 2HJ.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.4
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:
Plant and equipment
15% reducing balance
Computers
15% reducing balance
Motor vehicles
20% reducing balance
K M PLANT HIRE & GROUNDWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
1
Accounting policies
(Continued)
- 3 -
1.5
Stocks
Long-term contract balances classified under the balance sheet heading of “Stocks” are stated at total costs incurred, net of amounts transferred to the profit and loss account in respect of work carried out to date, less foreseeable losses and applicable payments on account.
Work in progress represents costs incurred on contracts prior to being invoices to the customer.
1.6
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.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.7
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 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.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
K M PLANT HIRE & GROUNDWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
1
Accounting policies
(Continued)
- 4 -
1.10
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 leases asset are consumed.
1.11
Government grants
Government grants are recognised at the fair value of the asset received 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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
6
12
K M PLANT HIRE & GROUNDWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
- 5 -
3
Tangible fixed assets
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 6 April 2022
204,944
25,675
101,107
331,726
Additions
2,511
6,485
878
9,874
Disposals
(62,370)
(62,370)
At 5 April 2023
145,085
32,160
101,985
279,230
Depreciation and impairment
At 6 April 2022
106,925
12,590
70,436
189,951
Depreciation charged in the year
11,885
2,405
6,251
20,541
Eliminated in respect of disposals
(23,128)
(23,128)
At 5 April 2023
95,682
14,995
76,687
187,364
Carrying amount
At 5 April 2023
49,403
17,165
25,298
91,866
At 5 April 2022
98,019
13,085
30,671
141,775
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
624,351
482,667
Corporation tax recoverable
60,000
68,284
Amounts owed by group undertakings
283,083
117,749
Other debtors
228,490
196,093
1,195,924
864,793
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
97,500
97,500
Trade creditors
352,545
210,357
Amounts owed to group undertakings
50,000
Taxation and social security
121,318
131,434
Other creditors
15,367
91,385
636,730
530,676
K M PLANT HIRE & GROUNDWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
- 6 -
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
312,916
390,000
Other creditors
4,967
312,916
394,967
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2
8
Related party transactions
During the year, the company loaned money to K M Plant Limited. At the year end, the amount owed from K M Plant Limited was £175,591 (2022 - £157,911), this amount is included in debtors: amounts falling due within one year. Mr K Lynch and Mrs M Lynch are directors of both K M Plant Limited and K M Holdings Group Limited.
During the year, the company loaned money to K M Holdings Group Limited. At the year end, the amount owed from K M Holdings Group Limited was £283,083 (2022 - £117,749) this amount is included in debtors: amounts falling due within one year. Mr K Lynch and Mrs M Lynch are directors of both K M Holdings Group Limited and K M Plant & Groundworks Limited.
During the year, the company loaned money from K M Construction and Maintenance Ltd. At the year end, the amount owed to K M Construction and Maintenance Ltd was £50,000; this amount is included in creditors: amounts falling due within one year. Mr K Lynch and Mrs M Lynch are directors of both K M Construction and Maintenance Ltd and K M Plant & Groundworks Limited.
9
Parent company
The parent company is K M Holdings Group Limited, whose registered office address is Merlin House Langstone Business Park, Priory Drive, Langstone, Newport NP18 2HJ, due to them owning 100% of the shares and voting rights as at 16 June 2020.