Land & Water Plant Limited Filleted accounts for Companies House (small and micro)

LAND & WATER PLANT LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 03859592

LAND & WATER PLANT LIMITED

FILLETED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 December 2021

LAND & WATER PLANT LIMITED

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

Contents	Pages

Statement of financial position	1 to 2

Notes to the financial statements	3 to 9

LAND & WATER PLANT LIMITED

STATEMENT OF FINANCIAL POSITION

31 December 2021

	2021		2020
Note	£	£	£

Fixed assets

Tangible assets	6	7,856,337	7,567,565
Investments	7	100	100
		------------	------------
		7,856,437	7,567,665

Current assets

Stocks		96,111	69,798
Debtors	8	1,106,756	964,367
Cash at bank and in hand		118,532	267,252
		------------	------------
		1,321,399	1,301,417

Creditors: amounts falling due within one year	9	2,167,025		2,158,570
		------------		------------
Net current liabilities			845,626	857,153
			------------	------------
Total assets less current liabilities			7,010,811	6,710,512

Creditors: amounts falling due after more than one year	10		2,812,728	2,793,622

Provisions

Taxation including deferred tax	11	1,012,228	813,985
		------------	------------
Net assets		3,185,855	3,102,905
		------------	------------

Capital and reserves

Called up share capital	8,333	8,333
Share premium account	75,000	75,000
Profit and loss account	3,102,522	3,019,572
	------------	------------
Shareholders funds	3,185,855	3,102,905
	------------	------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

LAND & WATER PLANT LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

31 December 2021

These financial statements were approved by the board of directors and authorised for issue on 22 September 2022 , and are signed on behalf of the board by:

Mr R E Melhuish Mr J A Maclean

Director Director

Company registration number: 03859592

LAND & WATER PLANT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Numeric House, 98 Station Road, Sidcup, Kent, DA15 7BY, United Kingdom.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through the statement of comprehensive income. The financial statements are prepared in sterling, which is the functional currency of the entity.

Equipment leased to customers

Equipment leased to customers under operating leases is capitalised. Operating lease income is accounted for on a straight line basis with rental income and any rental increases recognised during the period to which they relate.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor.

Going concern

The Covid-19 Pandemic has been ongoing throughout the company's accounting period and has produced numerous challenges on a global level. In this accounting period and subsequently the company has been able to address these challenges and has continued to trade satisfactorily.

Debtors

Debtors are initially recorded at fair value and are assessed for impairment at each year end date. If any impairments exist the debtors are remeasured to the present value of the expected future cash inflows.

Creditors

Creditors are initially recorded at fair value and are then remeasured to the present value of the expected future cash outflows.

Statement of cash flows

The company has taken advantage of the small companies exemptions and not prepared a statement of cash flows.

Consolidation

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its associated undertakings are included with the consolidated accounts of the parent company M.H.J. Limited.

Judgements and key sources of estimation uncertainty

There are no significant estimates or assumptions made that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Revenue recognition

Revenue refers to the amounts earned from the Company's principal activity; the hire of plant and machinery. The revenue shown in the statement of comprehensive income represents amounts invoiced during the year, exclusive of Value Added Tax. In respect of long-term contracts and contracts for on-going services, revenue represents the value of work done in the year, including estimates of amounts not invoiced. Revenue in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Tangible assets with a cost value in excess of £500 are capitalised, all items below this limit are expensed through the statement of comprehensive income.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant & Machinery	-	16% / 20% Reducing Balance
Fixtures & Fittings	-	3 Years straight line
Motor Vehicles	-	25% reducing balance
Equipment	-	3 Years straight line

Investments in associated undertaking

Investments in associated undertakings accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associated undertakings accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in the statement of comprehensive income. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Stock expenditure

Included in cost of sales is £553,811 (2020: £537,855), which represents the total cost of materials used during the year.

5. Particulars of employees

The average number of persons employed by the company during the year amounted to 23 (2020: 25 ).

6. Tangible assets

	Plant and machinery	Fixtures and fittings	Motor vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 January 2021	13,584,156	139,163	195,850	18,483	13,937,652
Additions	1,561,116	–	–	–	1,561,116
Disposals	( 592,558)	–	–	–	( 592,558)
	-------------	---------	---------	--------	-------------
At 31 December 2021	14,552,714	139,163	195,850	18,483	14,906,210
	-------------	---------	---------	--------	-------------
Depreciation
At 1 January 2021	6,200,696	115,634	35,274	18,483	6,370,087
Charge for the year	1,058,873	12,053	40,136	–	1,111,062
Disposals	( 431,276)	–	–	–	( 431,276)
	-------------	---------	---------	--------	-------------
At 31 December 2021	6,828,293	127,687	75,410	18,483	7,049,873
	-------------	---------	---------	--------	-------------
Carrying amount
At 31 December 2021	7,724,421	11,476	120,440	–	7,856,337
	-------------	---------	---------	--------	-------------
At 31 December 2020	7,383,460	23,529	160,576	–	7,567,565
	-------------	---------	---------	--------	-------------

Assets held for use in operating leases originally cost £14,552,714 (2020: £13,584,156) and have a net book value of £7,724,421 (2020: £7,383,460).

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery
	£
At 31 December 2021	4,684,652
	------------
At 31 December 2020	4,661,714
	------------

7. Investments

	Shares in group undertakings
	£
Cost
At 1 January 2021 and 31 December 2021	100
	----
Impairment
At 1 January 2021 and 31 December 2021	–
	----

Carrying amount
At 31 December 2021	100
	----
At 31 December 2020	100
	----

8. Debtors

	2021	2020
	£	£
Trade debtors	601,920	456,772
Amounts owed by group undertakings	215,971	449,301
Other debtors	288,865	58,294
	------------	---------
	1,106,756	964,367
	------------	---------

9. Creditors: amounts falling due within one year

	2021	2020
	£	£
Trade creditors	398,147	385,046
Amounts owed to group undertakings	494,478	552,104
Accruals and deferred income	25,397	57,415
Social security and other taxes	39,441	106,462
Obligations under finance leases and hire purchase contracts	1,183,017	1,046,399
Director loan accounts	17,895	3,311
Other creditors	8,650	7,833
	------------	------------
	2,167,025	2,158,570
	------------	------------

The company has entered into a composite accounting agreement with Natwest Bank Plc between Land & Water Services Limited, Land & Water Plant Limited, Land & Water Remediation Limited, Land & Water Estates Limited, M.H.J. Limited & Land and Water Group Limited. Under the terms of this agreement the bank is authorised in certain circumstances to seize bank account balances and apply them in reduction of liabilities including overdrawn bank accounts of the other group companies in the agreement. The total potential liability under the composite agreement at the year end is £697,239. During the year the company entered into a debenture with Natwest Bank Plc, all assets of the company are held as security as part of the agreement.

10. Creditors: amounts falling due after more than one year

	2021	2020
	£	£
Other creditors	2,812,728	2,793,622
	------------	------------

11. Provisions

	Deferred tax (note 12)
	£
At 1 January 2021	813,985
Additions	198,243
	------------
At 31 December 2021	1,012,228
	------------

12. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2021	2020
	£	£
Included in provisions (note 11)	1,012,228	813,985
	------------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2021	2020
	£	£
Accelerated capital allowances	1,012,228	813,985
	------------	---------

13. Summary audit opinion

The auditor's report for the year dated 22 September 2022 was unqualified .

The senior statutory auditor was P B Woodman FCCA, ACA, CTA , for and on behalf of Opass Billings Wilson & Honey LLP .

14. Ultimate parent company

The company's ultimate parent undertaking is M.H.J. Limited. It has included the company in its consolidated financial statements, copies of which are available from its registered office: Numeric House, 98 Station Road, Sidcup, Kent, DA15 7BY.