O'Connor Holdings Limited - Limited company accounts 20.1

REGISTERED NUMBER: 10410955 (England and Wales)

Page

Company Information  

1

Group Strategic Report  

2

Report of the Directors  

4

Report of the Independent Auditors  

6

Consolidated Income Statement  

8

Consolidated Other Comprehensive Income  

9

Consolidated Statement of Financial Position  

10

Company Statement of Financial Position  

11

Consolidated Statement of Changes in Equity  

12

Company Statement of Changes in Equity  

13

Consolidated Statement of Cash Flows  

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

P P O'Connor

J P O'Connor

C M O'Connor

REGISTERED OFFICE:

The Exchange

5 Bank Street

Bury

BL9 0DN

REGISTERED NUMBER:

10410955 (England and Wales)

AUDITORS:

DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

The Directors present their strategic report for the year ended 30 September 2020.

BUSINESS OVERVIEW

During the course of the year the business has experienced the same economic challenges and pressures as other business in the construction sector. With the impact of the world-wide pandemic and following on from the trading performance in 2019 the Directors have reduced the group's exposure to the contracting sector in the short-term leaving the business to concentrate on its haulage and plant hire activities. The group has continued to service those contracts which it was contracted to complete but has not taken on any new projects during the year.

BUSINESS MODEL

It is the intention of the Directors to maintain, consolidate and build upon the position for this year and focus on developing a greater presence in the construction plant hire industry. The group's key differentiators are its ability to meet customer demands through its continued investment in its people and in new equipment and technology. Such commitment to investment is seen as a deciding factor in the growth of the business especially as the effects of the pandemic are still being felt by the equipment manufacturers.

RISK FACTORS

The principal risk factors for the business are the continued economic effects of the pandemic, interest rates, liquidity and credit worthiness of its customers.

The Directors expect the effects of the pandemic to continue throughout 2022 as the economy slowly returns to work but have seen an improvement in recent months in the level of activity. The Directors continue to monitor the level of plant utilisation with the aim of mitigating the effects of any down turn in demand and adjusting costs accordingly.

The group requires access to new capital to replace assets and grow the fleet.  The group uses a number of different sources of funding when purchasing plant and all agreements are on a fixed interest rate basis to avoid the risk of movement in the base rate.

The nature of the industry in which the group operates requires careful cash-flow management. The business monitors and forecasts cash requirements on a regular basis, both for tactical short term cash flow purposes but also for its medium and longer term forecasting and reporting. The Directors believe the group has sufficient funding facilities for the medium term.

The credit worthiness of new customers is assessed by the group prior to commencing a new hire agreement and the indebtedness of all customers is actively managed to ensure prompt payment in line with the contract terms. In certain exceptional circumstances the group may consider insuring customers against default but this continues to be the exception rather than the norm.

OBJECTIVES

The group's key objective for 2021 is to maintain sustainable growth whilst minimising any negative impact on the business from the uncertainty caused by the effects of the pandemic and Brexit.

The pandemic continues to introduce considerable uncertainty to all parts of the economy and disruption to our supply chain and staff. The safety of our staff is paramount to the business and the Directors continue to take measures to ensure the safety of all staff and compliance with Government guidelines on hygiene and safe distancing while working.

PERFORMANCE

Revenue for the year is down 42% on 2019 at £14.2m reflecting the effect of reducing the exposure to the contracting sector short term and the impact felt by all companies of the pandemic and the Government imposed lockdowns. Although the group traded throughout the pandemic much of the activity was for plant hire and haulage activities as the parts of the contracting sector stopped during the lockdowns. Overheads were trimmed in line with the fall in turnover and gross margin fell to 0.6% (2019 7.2%) while EBITDA for the business increased to £2.4m (2019: £1.7m).

The group took advantage of the Government support schemes for business, for example, in the form of the employee furlough scheme and VAT deferral option to help manage its cost base and maintain liquidity.

The Directors expect the general level of activity to improve in 2021 as the impact of the pandemic reduce and are confident that their strategy, together with the dedication of the workforce will allow to group to develop into a key player within the industry over the next few years.

ON BEHALF OF THE BOARD:

P P O'Connor - Director

30 September 2021

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2020.

PRINCIPAL ACTIVITY

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2019 to the date of this report.

P P O'Connor

J P O'Connor

C M O'Connor

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 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 directors are 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 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 group's auditors are aware of that information.

AUDITORS

DTE Business Advisers Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:

P P O'Connor - Director

30 September 2021

Opinion

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

-

the directors have 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 directors are responsible for the other information. The other information comprises the information in the Group 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 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 Directors 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 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 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 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 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 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 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 directors either intend to liquidate the group or the parent 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.

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.

Fiona O'Loughlin (Senior Statutory Auditor)

for and on behalf of DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

30 September 2021

REVENUE

3

14,221,755

24,363,781

Cost of sales

(14,135,175

)

(22,603,668

)

GROSS PROFIT

86,580

1,760,113

Administrative expenses

(276,720

)

(1,392,788

)

OPERATING (LOSS)/PROFIT

5

(190,140

)

367,325

Exceptional losses on contracts

6

-

(985,734

)

(190,140

)

(618,409

)

Interest payable and similar expenses

7

(386,423

)

(395,034

)

LOSS BEFORE TAXATION

(576,563

)

(1,013,443

)

Tax on loss

8

(63,845

)

79,136

LOSS FOR THE FINANCIAL YEAR

(640,408

)

(934,307

)

Loss attributable to:

Owners of the parent

(640,408

)

(934,307

)

LOSS FOR THE YEAR

(640,408

)

(934,307

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME

FOR THE YEAR

(640,408

)

(934,307

)

Total comprehensive income attributable to:

Owners of the parent

(640,408

)

(934,307

)

FIXED ASSETS

Property, plant and equipment

10

10,895,022

12,814,935

Investments

11

-

-

10,895,022

12,814,935

CURRENT ASSETS

Inventories

12

27,146

28,000

Debtors

13

5,166,026

2,733,490

Cash at bank

597,903

156,412

5,791,075

2,917,902

CREDITORS

Amounts falling due within one year

14

(10,884,045

)

(8,198,312

)

NET CURRENT LIABILITIES

(5,092,970

)

(5,280,410

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

5,802,052

7,534,525

CREDITORS

Amounts falling due after more than one

year

15

(4,499,922

)

(5,701,188

)

PROVISIONS FOR LIABILITIES

18

(310,456

)

(201,255

)

NET ASSETS

991,674

1,632,082

CAPITAL AND RESERVES

Called up share capital

19

2,000,000

2,000,000

Retained earnings

(1,008,326

)

(367,918

)

SHAREHOLDERS' FUNDS

991,674

1,632,082

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2021 and were signed on its behalf by:

P P O'Connor - Director

FIXED ASSETS

Property, plant and equipment

10

-

-

Investments

11

2,000,000

2,000,000

2,000,000

2,000,000

TOTAL ASSETS LESS CURRENT

LIABILITIES

2,000,000

2,000,000

CAPITAL AND RESERVES

Called up share capital

19

2,000,000

2,000,000

SHAREHOLDERS' FUNDS

2,000,000

2,000,000

Company's profit for the financial year

-

-

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2021 and were signed on its behalf by:

P P O'Connor - Director

Called up

share

Retained

Total

capital

earnings

equity

£   

£   

£   

Balance at 1 October 2018

2,000,000

566,389

2,566,389

Changes in equity

Total comprehensive income

-

(934,307

)

(934,307

)

Balance at 30 September 2019

2,000,000

(367,918

)

1,632,082

Changes in equity

Total comprehensive income

-

(640,408

)

(640,408

)

Balance at 30 September 2020

2,000,000

(1,008,326

)

991,674

Called up

share

Retained

Total

capital

earnings

equity

£   

£   

£   

Balance at 1 October 2018

2,000,000

-

2,000,000

Changes in equity

Balance at 30 September 2019

2,000,000

-

2,000,000

Changes in equity

Balance at 30 September 2020

2,000,000

-

2,000,000

Cash flows from operating activities

Cash generated from operations

1

3,113,845

1,326,622

Interest paid

(61,052

)

(95,559

)

Interest element of hire purchase and

finance lease rental payments paid

(325,371

)

(299,475

)

Tax paid

(101,800

)

(156,931

)

Net cash from operating activities

2,625,622

774,657

Cash flows from investing activities

Purchase of tangible fixed assets

(1,786,261

)

(125,101

)

Sale of tangible fixed assets

1,149,541

1,504,912

Net cash from investing activities

(636,720

)

1,379,811

Cash flows from financing activities

Capital repayments in year

(1,547,411

)

(3,062,605

)

Net cash from financing activities

(1,547,411

)

(3,062,605

)

Increase/(decrease) in cash and cash equivalents

441,491

(908,137

)

Cash and cash equivalents at beginning of

year

2

156,412

1,064,549

Cash and cash equivalents at end of year

2

597,903

156,412

1.

RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM

OPERATIONS

2020

2019

£   

£   

Loss before taxation

(576,563

)

(1,013,443

)

Depreciation charges

2,581,619

2,402,049

Profit on disposal of fixed assets

(24,986

)

(169,195

)

Finance costs

386,423

395,034

2,366,493

1,614,445

Decrease/(increase) in inventories

854

(14,600

)

Increase in trade and other debtors

(2,285,380

)

(440,494

)