Thomas Holdings Group - Limited company accounts 20.1

REGISTERED NUMBER: 07658001 (England and Wales)

Thomas Holdings (North West) Limited

Group Strategic Report,

Report of the Director and

Consolidated Financial Statements

for the Year Ended 31 May 2020

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

6

Consolidated Balance Sheet

7

Company Balance Sheet

8

Consolidated Statement of Changes in Equity

9

Company Statement of Changes in Equity

10

Consolidated Cash Flow Statement

11

Notes to the Consolidated Cash Flow Statement

12

Notes to the Consolidated Financial Statements

13

DIRECTOR:

Mr W L Thomas

SECRETARY:

Mrs S E Thomas

REGISTERED OFFICE:

Tai Hirion

Llwybr Hir

Caerwys

Flintshire

CH7 5BL

REGISTERED NUMBER:

07658001 (England and Wales)

AUDITORS:

Salisbury & Company Business Solutions Limited

Statutory Auditors

Chartered Accountants

Irish Square

Upper Denbigh Road

St Asaph

Denbighshire

LL17 0RN

The director presents his strategic report of the company and the group for the year ended 31 May 2020.

REVIEW OF BUSINESS

During the year, the group again saw significant increases in plant hire activity, as a result of both business acquisitions

in the previous year, and continued expansion of hire fleet, with turnover increasing 20%. The group also saw a 20%

increase in contracting work. The consolidated group results show an increase in total group turnover of 21% to

£38.1m. Group gross margins were consistent with the previous year.

EBITDA reached in excess of £12.1m (£9.7m previous year), but due to lower profit margins on disposal of plant, net

profit fell to £1.56m (£2.67m previous year).

The group continued to invest heavily in plant and machinery during the year, with net acquisitions of £14.9m. This was

as a result of both strategic expansion, and a constant refreshment of fleet.

The overall net asset position of the company continued to strengthen with overall group net assets now standing at

£14.6m.

PRINCIPAL RISKS AND UNCERTAINTIES

As is the nature of the industry, there is always an inherent risk. However, the group aims to minimise it's exposure by a

diversification of activity and a spread amongst customers, reducing reliance on any one area. The group implements

regular credit control to further minimise exposure to financial risk.

The majority of the groups borrowings are at a fixed rate, meaning exposure to a rise in interest rates is minimal.

The future order book for the company remains strong, and the plant hire division continues to expand providing

optimism for continued growth in future years.

ON BEHALF OF THE BOARD:

Mr W L Thomas - Director

9 September 2020

The director presents his report with the financial statements of the company and the group for the year ended

31 May 2020.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of plant hire and contracting services.

DIVIDENDS

No dividends will be distributed for the year ended 31 May 2020.

DIRECTOR

Mr W L Thomas held office during the whole of the period from 1 June 2019 to the date of this report.

DONATIONS

During the year the group made donations to charitable organisations totalling £8,110 (2019: £12,844). The largest

single donation was £2,000 (2019: £2,749).

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial

statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director

has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not

approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the

company and the group and of the profit or loss of the group for that period. In preparing these financial statements,

the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the

company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006.

He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps

for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a

director in order to make himself aware of any relevant audit information and to establish that the group's auditors are

aware of that information.

AUDITORS

The auditors, Salisbury & Company Business Solutions Limited, will be proposed for re-appointment at the forthcoming

Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr W L Thomas - Director

9 September 2020

Opinion

We have audited the financial statements of Thomas Holdings (North West) Limited (the 'parent company') and its

subsidiaries (the 'group') for the year ended 31 May 2020 which comprise the Consolidated Statement of

Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in

Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated

Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The

financial reporting framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the

UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2020 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the group in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

you where:

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

-

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

Other information

The director is responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the

Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. We have nothing to

report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the

Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to

you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease

operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Aled Roberts FCA (Senior Statutory Auditor)

for and on behalf of Salisbury & Company Business Solutions Limited

Statutory Auditors

Chartered Accountants

Irish Square

Upper Denbigh Road

St Asaph

Denbighshire

LL17 0RN

9 September 2020

TURNOVER

38,050,996

31,557,726

Cost of sales

(24,014,486

)

(20,147,041

)

GROSS PROFIT

14,036,510

11,410,685

Administrative expenses

(11,221,318

)

(7,736,032

)

2,815,192

3,674,653

Other operating income

26,900

28,528

OPERATING PROFIT

4

2,842,092

3,703,181

Interest receivable and similar income

-

5,590

2,842,092

3,708,771

Interest payable and similar expenses

5

(1,279,703

)

(1,038,063

)

PROFIT BEFORE TAXATION

1,562,389

2,670,708

Tax on profit

6

111,839

(636,814

)

PROFIT FOR THE FINANCIAL YEAR

1,674,228

2,033,894

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,674,228

Prior year adjustment

(868,494

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

1,165,400

Profit attributable to:

Owners of the parent

1,674,228

2,033,894

Total comprehensive income attributable to:

Owners of the parent

1,674,228

1,165,400

FIXED ASSETS

Intangible assets

9

1,323,000

1,403,942

Tangible assets

10

60,017,460

65,391,901

Investments

11

-

-

Investment property

12

80,762

80,762

61,421,222

66,876,605

CURRENT ASSETS

Stocks

13

1,997,063

3,119,436

Debtors

14

7,215,703

7,276,367

Cash at bank and in hand

1,369,784

786

10,582,550

10,396,589

CREDITORS

Amounts falling due within one year

15

17,246,535

22,833,565

NET CURRENT LIABILITIES

(6,663,985

)

(12,436,976

)

TOTAL ASSETS LESS CURRENT LIABILITIES

54,757,237

54,439,629

CREDITORS

Amounts falling due after more than one year

16

(37,779,431

)

(39,004,358

)

PROVISIONS FOR LIABILITIES

20

(2,399,836

)

(2,531,529

)

NET ASSETS

14,577,970

12,903,742

CAPITAL AND RESERVES

Called up share capital

21

2

2

Share premium

22

3,999,999

3,999,999

Retained earnings

22

10,577,969

8,903,741

SHAREHOLDERS' FUNDS

14,577,970

12,903,742

The financial statements were approved by the director and authorised for issue on 9 September 2020 and were signed

by:

Mr W L Thomas - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

58,656,780

59,444,476

Investments

11

5,931,303

6,009,845

Investment property

12

80,762

80,762

64,668,845

65,535,083

CURRENT ASSETS

Debtors

14

262,095

1,501,892

Cash at bank

555,098

-

817,193

1,501,892

CREDITORS

Amounts falling due within one year

15

13,640,903

16,827,370

NET CURRENT LIABILITIES

(12,823,710

)

(15,325,478

)

TOTAL ASSETS LESS CURRENT LIABILITIES

51,845,135

50,209,605

CREDITORS

Amounts falling due after more than one year

16

(37,444,102

)

(36,056,060

)

PROVISIONS FOR LIABILITIES

20

(2,161,882

)

(2,271,790

)

NET ASSETS

12,239,151

11,881,755

CAPITAL AND RESERVES

Called up share capital

21

2

2

Share premium

22

3,999,999

3,999,999

Retained earnings

22

8,239,150

7,881,754

SHAREHOLDERS' FUNDS

12,239,151

11,881,755

Company's profit for the financial year

357,396

230,510

The financial statements were approved by the director and authorised for issue on 9 September 2020 and were signed by:

Mr W L Thomas - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 June 2018

2

7,738,341

3,999,999

11,738,342

Prior year adjustment

-

(868,494

)

-

(868,494

)

As restated

2

6,869,847

3,999,999

10,869,848

Changes in equity

Total comprehensive income

-

2,033,894

-

2,033,894

Balance at 31 May 2019

2

8,903,741

3,999,999

12,903,742

Changes in equity

Total comprehensive income

-

1,674,228

-

1,674,228

Balance at 31 May 2020

2

10,577,969

3,999,999

14,577,970

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 June 2018

2

7,651,244

3,999,999

11,651,245

Changes in equity

Total comprehensive income

-

230,510

-

230,510

Balance at 31 May 2019

2

7,881,754

3,999,999

11,881,755

Changes in equity

Total comprehensive income

-

357,396

-

357,396

Balance at 31 May 2020

2

8,239,150

3,999,999

12,239,151

Cash flows from operating activities

Cash generated from operations

1

10,009,155

8,607,644

Interest paid

(25,018

)

(43,938

)

Interest element of hire purchase payments paid

(1,254,685

)

(994,125

)

Tax paid

(34,772

)

45,200

Net cash from operating activities

8,694,680

7,614,781

Cash flows from investing activities

Purchase of intangible fixed assets

-

(662,272

)

Purchase of tangible fixed assets

(14,926,717

)

(45,801,745

)

Sale of tangible fixed assets

11,285,032

11,674,256

Interest received

-

5,590

Net cash from investing activities

(3,641,685

)

(34,784,171

)

Cash flows from financing activities

New loans in year

13,335,638

40,231,404

Capital repayments in year

(16,161,598

)

(12,842,992

)

Amount withdrawn by directors

(463,171

)

(85,000

)

Net cash from financing activities

(3,289,131

)

27,303,412

Increase in cash and cash equivalents

1,763,864

134,022

Cash and cash equivalents at beginning of year

2

(394,080

)

(528,102

)

Cash and cash equivalents at end of year

2

1,369,784

(394,080

)

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2020

2019

as restated

£

£

Profit before taxation

1,562,389

2,670,708

Depreciation charges

9,623,084

7,280,448

Profit on disposal of fixed assets

(543,909

)

(1,419,765

)

Finance costs

1,279,703

1,038,063

Finance income

-

(5,590

)

11,921,267

9,563,864

Decrease/(increase) in stocks

1,122,373

(1,142,880

)

Decrease/(increase) in trade and other debtors

49,767

(2,372,206

)

(Decrease)/increase in trade and other creditors

(3,084,252

)

2,558,866

Cash generated from operations

10,009,155

8,607,644

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Year ended 31 May 2020

31/5/20

1/6/19

£

£

Cash and cash equivalents

1,369,784

786

Bank overdrafts

-

(394,866

)

1,369,784

(394,080

)

Year ended 31 May 2019

31/5/19

1/6/18

as restated

£

£

Cash and cash equivalents

786

786

Bank overdrafts

(394,866

)

(528,888

)

(394,080

)

(528,102

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/6/19

Cash flow

At 31/5/20

£

£

£

Net cash

Cash at bank and in hand

786

1,368,998

1,369,784

Bank overdrafts

(394,866

)

394,866

-

(394,080

)

1,763,864

1,369,784

Debt

Finance leases

(51,397,123

)

5,569,485

(45,827,638

)

Debts falling due within 1 year

(272,879

)

139,658

(133,221

)

Debts falling due after 1 year

(748,849

)

(2,885,144

)

(3,633,993

)

(52,418,851

)

2,823,999

(49,594,852

)

Total

(52,812,931

)

4,587,863

(48,225,068

)