Chepstow Plant International Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03031145 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2022

for

Chepstow Plant International Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

E A Hayward

S Hayward

T J Corcoran

E J Hayward

SECRETARY:

S Hayward

REGISTERED OFFICE:

Beacon Court

Norman Way

Severn Bridge Industrial Estate

Portskewett

Monmouthshire

NP26 5PT

REGISTERED NUMBER:

03031145 (England and Wales)

AUDITORS:

Guilfoyle, Sage & Co.

Chartered Accountants and Statutory Auditor

21 Gold Tops

Newport

South Wales

NP20 4PG

The directors present their strategic report for the year ended 31 March 2022.

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS

The results for the year and financial position of the company are shown in the annexed financial statements.

The directors aim to present a balanced review of the development and performance of the business during the year and its position at the year end consistent with its size and non-complex nature.

The company's activities continued to be the sale and hire of plant to the construction industry.

The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin, net assets and return on capital employed.

The company's results along with the mineral extraction industry as a whole have been affected by the Covid-19 pandemic, from which it has emerged during the financial year presented in this document. The results for the financial year ending 31 March 2022, as set out within thess financial statements, shows how the company dealt with the post-pandemic situation in attempting to bounce back from the results of the previous financial year. In unprecedented times for the whole economy and country the company managed to steer itself to a recovery from a net loss before taxation of £1,215,455 for the previous year to a net profit before taxation of £2,101,801 for the current year.This was achieved through having less interrupted activities throughout the year, higher plant and equipment utilisation and genuine new growth with new contracts won with both existing and new customers which is shown in the turnover increase of £11,255,211 between this and last year.

The balance sheet shows a large shift from the previous year with the company able to invest in its fixed assets after a year of little to no purchases due to the pandemic.There has been a net increase of £10m in fixed assets which in turn has seen a £4m rise in associated hire purchase contracts.The company will still require 1-2 years to settle back into its usual capital cycles that are required to conduct its business model. Until such a time the gross profit margin will suffer marginally due to the company having to spend more on both asset related R&M and component costs from running its machinery longer due to the 2021 capital replacement program's aforementioned difficulties. Net assets have increased to £19,463,905 from £17,773,130 whilst return on capital employed also increased.

The company continues to focus on operational efficiency and growing new business with existing customers and new relationships but also focusing on retaining existing contracts on a long-term basis. There will be a focus on increasing margins back to pre-pandemic levels and then surpassing those levels thereafter which will be helped by the company being able to rely on its successful business model. There will undoubtedly be difficult times ahead with the country on the brink of economic difficulties that are likely to continue to hit all industries which will likely mean exposure to financial risk, for example, interest rate increases.

PRINCIPAL RISKS AND UNCERTAINTIES

The business and economic environment in which the company operates together with the post Covid-19 pandemic effects continue to be challenging. Sales orders continue to be won and hire contracts obtained despite the sale and hire of plant to the construction industry being highly competitive with margins continuing to be tight.

With these risks and uncertainties in mind the results for the year and financial position of the company at the year end are considered to be satisfactory and the directors are aware that any plans for the future development of the business may be subject to unforeseen future events outside our control.

FINANCIAL INSTRUMENTS

The company's principal exposure to financial risk include interest rate, credit and liquidity risks which are controlled by regular monitoring and review of debt finance.

ON BEHALF OF THE BOARD:

E A Hayward - Director

28 July 2022

The directors present their report with the financial statements of the company for the year ended 31 March 2022.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report.

E A Hayward

S Hayward

T J Corcoran

E J Hayward

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Sec 414C(11) Companies Act 2006 to set out its strategic report information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008. It has done so in respect of future developments and financial risk.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Guilfoyle, Sage & Co., will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

E A Hayward - Director

28 July 2022

Opinion

We have audited the financial statements of Chepstow Plant International Limited (the 'company') for the year ended 31 March 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 2022 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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.

Other information

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:

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

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of both the company and industry, we identified the principal risks of non-compliance with laws and regulations, including those related to UK tax legislation, and considered the extent to which any non-compliance might have on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and ensured that all those involved in the audit undergo regular update training, including on how to identify or recognise fraud and non-compliane with laws and regulations.

We evaluated management's incentives and opportunities for manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inaccurate journals and management bias in accounting estimates. We addressed these risks by carrying out specifically targeted procedures, which included:

- discussions with management, including consideration of any known or suspected instances of non-compliance with laws and regulations and/or fraud;

- reading minutes of meetings of those charged with governance;

- the appropriateness of journal entries and other adjustments;

- challenging management in relation to significant accounting estimates;

- evaluating the reasons for any large or unusual transactions;

- reviewing disclosures in the financial statements to underlying supporting documentation

As outlined above, reasonable assurance is a high level of assurance, but is not a guarantee that a material misstatement may always be detected.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

David Evans BA ACA (Senior Statutory Auditor)

for and on behalf of Guilfoyle, Sage & Co.

Chartered Accountants and Statutory Auditor

21 Gold Tops

Newport

South Wales

NP20 4PG

29 July 2022

TURNOVER

3

37,206,944

25,951,733

Cost of sales

22,495,475

15,223,835

GROSS PROFIT

14,711,469

10,727,898

Depreciation

8,600,499

7,110,874

Administrative expenses

3,569,999

3,699,042

12,170,498

10,809,916

2,540,971

(82,018

)

Profit/(loss) on disposal of

fixed assets

818,152

(59,652

)

OPERATING PROFIT/(LOSS)

6

3,359,123

(141,670

)

Interest payable and similar expenses

7

1,257,322

1,073,785

PROFIT/(LOSS) BEFORE TAXATION

2,101,801

(1,215,455

)

Tax on profit/(loss)

8

411,026

(179,862

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

1,690,775

(1,035,593

)

FIXED ASSETS

Tangible assets

9

66,191,659

56,991,253

CURRENT ASSETS

Debtors

10

10,403,877

12,941,878

Cash at bank

1,072,198

1,939,504

11,476,075

14,881,382

CREDITORS

Amounts falling due within one year

11

27,947,555

23,508,022

NET CURRENT LIABILITIES

(16,471,480

)

(8,626,640

)

TOTAL ASSETS LESS CURRENT LIABILITIES

49,720,179

48,364,613

CREDITORS

Amounts falling due after more than one year

12

(25,968,373

)

(26,714,608

)

PROVISIONS FOR LIABILITIES

16

(4,287,901

)

(3,876,875

)

NET ASSETS

19,463,905

17,773,130

CAPITAL AND RESERVES

Called up share capital

17

3,215,000

3,215,000

Retained earnings

18

16,248,905

14,558,130

SHAREHOLDERS' FUNDS

19,463,905

17,773,130

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 28 July 2022 and were signed on its behalf by:

E A Hayward - Director

T J Corcoran - Director

E J Hayward - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2020

3,215,000

15,593,723

18,808,723

Changes in equity

Total comprehensive income

-

(1,035,593

)

(1,035,593

)

Balance at 31 March 2021

3,215,000

14,558,130

17,773,130

Changes in equity

Total comprehensive income

-

1,690,775

1,690,775

Balance at 31 March 2022

3,215,000

16,248,905

19,463,905

Cash flows from operating activities

Cash generated from operations

1

17,730,522

235,344

Interest paid

(204,965

)

(118,992

)

Interest element of hire purchase payments paid

(1,052,357

)

(954,793

)

Net cash from operating activities

16,473,200

(838,441

)

Cash flows from investing activities

Purchase of tangible fixed assets

(33,173,448

)

(8,115,901

)

Sale of tangible fixed assets

16,190,695

9,661,126

Net cash from investing activities

(16,982,753

)

1,545,225

Cash flows from financing activities

New loans in year

-

2,500,000

Loan repayments in year

(1,484,375

)

-

Amount introduced by directors

-

2,653

Amount withdrawn by directors

(325,855

)

-

Net cash from financing activities

(1,810,230

)

2,502,653

(Decrease)/increase in cash and cash equivalents

(2,319,783

)

3,209,437

Cash and cash equivalents at beginning of year

2

(3,392,276

)

(6,601,713

)

Cash and cash equivalents at end of year

2

(5,712,059

)

(3,392,276

)

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.22

31.3.21

£

£

Profit/(loss) before taxation

2,101,801

(1,215,455

)

Depreciation charges

8,600,499

7,110,874

(Profit)/loss on disposal of fixed assets

(818,152

)

59,652

Net hire purchase advances in year

3,976,052

(8,701,140

)

Finance costs

1,257,322

1,073,785

15,117,522

(1,672,284

)

Decrease in trade and other debtors

2,538,001

1,147,931

Increase in trade and other creditors

74,999

759,697

Cash generated from operations

17,730,522

235,344

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 March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

1,072,198

1,939,504

Bank overdrafts

(6,784,257

)

(5,331,780

)

(5,712,059

)

(3,392,276

)

Year ended 31 March 2021

31.3.21

1.4.20

£

£

Cash and cash equivalents

1,939,504

-

Bank overdrafts

(5,331,780

)

(6,601,713

)

(3,392,276

)

(6,601,713

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.21

Cash flow

At 31.3.22

£

£

£

Net cash

Cash at bank

1,939,504

(867,306

)

1,072,198

Bank overdrafts

(5,331,780

)

(1,452,477

)

(6,784,257

)

(3,392,276

)

(2,319,783

)

(5,712,059

)

Debt

Finance leases

(37,637,348

)

(3,976,052

)

(41,613,400

)

Debts falling due within 1 year

(520,830

)

208,330

(312,500

)

Debts falling due after 1 year

(1,979,170

)

1,276,045

(703,125

)

(40,137,348

)

(2,491,677

)

(42,629,025

)

Total

(43,529,624

)

(4,811,460

)

(48,341,084

)

1.	STATUTORY INFORMATION

Chepstow Plant International Limited is a private company, limited by shares, incorporated in the United Kingdom. The registered office is Beacon Court, Norman Way, Severn Bridge Industrial Estate, Portskewett, Monmouthshire.

The nature of the company's operations and principal activities are the sale and hire of plant to the construction industry.

These financial statements are presented in Sterling (£), the company's functional currency, rounded to the nearest pound.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover represents revenue recognised by the company in respect of sales of goods and supplies of services, excluding value added tax. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the goods and services have been transferred to the customer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

50% on cost, 33% on cost, 20% on cost, 15% on cost and 10% on cost

Motor vehicles

-

33% on cost and 15% on cost

Computer and office equipment

-

33% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Significant judgements and estimates

The preparation of the financial statements requires management to make estimates and assumptions concerning the future. The resulting estimates will, by definition, be likely to differ from the related actual results. The estimates and assumption that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Depreciation

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets.

The useful economic lives and residual values of the tangible fixed assets are regularly re-assessed and amended, as necessary, to reflect current estimates based on their future economic utilisation and physical condition.

Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors.

When assessing impairment of trade and other debtors management considers factors including the credit rating of the debtor, the ageing profile of debtors and historical experience.

Recognition of income

Turnover representing the fair value of services provided and work done on contracts during the year is recognised as the contract progresses and the right to consideration is earned as determined by the company.

Non-derivative financial instruments

Non-derivative financial instruments comprise trade and other debtors, cash and cash equivalents, trade and other creditors and interest free loans.

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 expenditure.

Cash and cash equivalents comprise cash at bank and in hand. For the purpose of the cash flow statement cash and cash equivalents are net of bank overdrafts and advances which are repayable on demand.

Loans and borrowings and concessionary loans are initially recognised at transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method less impairment. If an arrangement constitutes a finance transaction it is measured at present value. Loans and borrowings receivable within one year are not discounted.

3.

TURNOVER

The turnover and profit (2021 - loss) before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

31.3.22

31.3.21

£

£

Contracts

16,676,885

11,633,090

Non operated plant hire

8,953,683

7,295,303

Operated plant hire

7,822,377

4,883,906

Other plant hire income

1,643,709

575,057

Stock sales and other income

2,110,290

1,564,377

37,206,944

25,951,733

4.	EMPLOYEES AND DIRECTORS

31.3.22

31.3.21

£

£

Wages and salaries

6,550,725

6,309,698

Social security costs

747,137

714,218

Other pension costs

97,080

101,672

7,394,942

7,125,588

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

31.3.22

31.3.21

Directors

4

4

Administration

19

40

Workshop site and operators

110

113

133

157

5.	DIRECTORS' EMOLUMENTS

31.3.22

31.3.21

£

£

Directors' remuneration

594,533

594,533

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

31.3.22

31.3.21

£

£

Emoluments etc

235,100

235,100

The remuneration of key management personnel is the same as that for the directors.

6.	OPERATING PROFIT/(LOSS)

The operating profit (2021 - operating loss) is stated after charging/(crediting):

31.3.22

31.3.21

£

£

Hire of plant and machinery

1,005,563

702,531

Depreciation - owned assets

8,600,499

7,110,874

(Profit)/loss on disposal of fixed assets

(818,152

)

59,652

Auditors' remuneration

20,000

18,000

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.22

31.3.21

£

£

Bank interest

169,001

118,992

Bank loan interest

35,964

-

Hire purchase

1,052,357

954,793

1,257,322

1,073,785

8.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

31.3.22

31.3.21

£

£

Deferred tax

411,026

(179,862

)

Tax on profit/(loss)

411,026

(179,862

)

UK corporation tax has been charged at 19% (2021 - 19%).

Reconciliation of total tax charge/(credit) included in profit and loss

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

31.3.22

31.3.21

£

£

Profit/(loss) before tax

2,101,801

(1,215,455

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

399,342

(230,936

)

Effects of:

Expenses not deductible for tax purposes

11,684

6,480

Capital allowances in excess of depreciation

(359,667

)

(154,045

)

Utilisation of tax losses

(51,359

)

378,501

Deferred tax

411,026

(179,862

)

Total tax charge/(credit)

411,026

(179,862

)