TDH Wheeler Limited - Limited company accounts 22.3
TDH Wheeler Limited - Limited company accounts 22.3
| REGISTERED NUMBER: 11266974 (England and Wales) |
| GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2022 |
| FOR |
| TDH WHEELER LIMITED |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MAY 2022 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Consolidated Statement of Income and Retained Earnings |
9 |
| Consolidated Balance Sheet | 10 |
| Company Balance Sheet | 11 |
| Consolidated Cash Flow Statement | 13 |
| Notes to the Consolidated Cash Flow Statement | 14 |
| Notes to the Consolidated Financial Statements | 16 |
| TDH WHEELER LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 MAY 2022 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Church View Chambers |
| 38 Market Square |
| Toddington |
| Bedfordshire |
| LU5 6BS |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MAY 2022 |
| The directors present their strategic report of the company and the group for the year ended 31 May 2022. |
| REVIEW OF BUSINESS |
| The principal activity of the company in the year under review was that of electrical installation. |
| Results and performance |
| This has been another year of strong trading and financial performance as we delivered a record turnover for the company, and maintained strong margins in an environment of increasing costs. |
| Demand for new housebuilding has remained strong in 2022, and although the industry as a whole remains competitive and there is pressure on margins from increasing material and labour costs, the company is in a strong position. We have reviewed our processes to allow us to purchase more efficiently and improve our pricing competitiveness, and we are continually developing our internal control and reporting processes to drive efficiency. |
| Our order book is strong and we are well placed to manage our way through any short term difficulties. Our cashflow has remained strong during the year, and our supply chain has remained robust. |
| In our opinion the key financial performance indicators are as follows; |
| 2022 | 2021 | 2020 |
| Gross profit ratio | 19.43% | 21.42% | 22.48% |
| Net profit ratio | 3.54% | 7.25% | 6.89% |
| Turnover | £15,727,781 | £13,864,953 | £10,454,235 |
| Turnover growth | 13.44% | 32.63% | -26.73% |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MAY 2022 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| There are expectations of a slowing of growth in the industry as higher borrowing costs, inflation and the cost of living crisis cut demand for new homes. |
| While our order book is very strong we have seen some delays to project starts, and some delays to our starts on site due to projects falling behind schedule. At the same time we have seen some competitors cease trading which provides opportunities for us to bring in new business. |
| The key risks in the coming months are: |
| - A further wave of COVID-19 infections over the autumn and winter months disrupting work on sites |
| - supply constraints on building materials slowing progress on construction sites |
| - potential shortage of skilled labour |
| - increasing costs for materials and labour impacting profitability on fixed price contracts |
| - weaker economic performance, impacted by inflation and increasing interest rates, being reflected in the wider housing market, and curbing private housing starts. |
| The longer-term outlook for the housebuilding industry is less positive than it was last year, but with growth still expected particularly in the private housebuilding market, and with the strength of our business we are confident for the future. |
| ON BEHALF OF THE BOARD: |
| 7 December 2022 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MAY 2022 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 May 2022. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 31 May 2022 will be £288,000 (2021: £198,000). |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 June 2021 to the date of this report. |
| POLITICAL DONATIONS AND EXPENDITURE |
| No political donations have been made in this or prior years. |
| 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 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. |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MAY 2022 |
| AUDITORS |
| The auditors, Landers Accountants Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TDH WHEELER LIMITED |
| Opinion |
| We have audited the financial statements of TDH Wheeler Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2022 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, 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 2022 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 |
| 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 group's and the parent 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 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 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TDH WHEELER LIMITED |
| 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| - Results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
| - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
| - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
| - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations. |
| 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TDH WHEELER LIMITED |
| 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. |
| for and on behalf of |
| Church View Chambers |
| 38 Market Square |
| Toddington |
| Bedfordshire |
| LU5 6BS |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| CONSOLIDATED |
| STATEMENT OF INCOME AND |
| RETAINED EARNINGS |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 31.5.22 | 31.5.21 |
| Notes | £ | £ |
| REVENUE | 15,727,781 | 13,864,953 |
| Cost of sales | 12,672,481 | 10,895,730 |
| GROSS PROFIT | 3,055,300 | 2,969,223 |
| Administrative expenses | 2,626,213 | 2,269,563 |
| 429,087 | 699,660 |
| Other operating income | 3 | 136,666 | 305,695 |
| OPERATING PROFIT | 5 | 565,753 | 1,005,355 |
| Interest receivable and similar income | 631 | 88 |
| 566,384 | 1,005,443 |
| Interest payable and similar expenses | 6 | 95,782 | 101,675 |
| PROFIT BEFORE TAXATION | 470,602 | 903,768 |
| Tax on profit | 7 | 176,080 | 263,799 |
| PROFIT FOR THE FINANCIAL YEAR |
| Retained earnings at beginning of year | 1,517,085 | 1,075,116 |
| Dividends | 9 | (288,000 | ) | (198,000 | ) |
| RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
1,523,607 |
1,517,085 |
| Profit attributable to: |
| Owners of the parent | 294,522 | 639,969 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| CONSOLIDATED BALANCE SHEET |
| 31 MAY 2022 |
| 31.5.22 | 31.5.21 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 | 559,970 | 1,039,944 |
| Property, plant and equipment | 11 | 1,558,743 | 1,521,883 |
| Investments | 12 | - | - |
| Investment property | 13 | 2,626,793 | 2,617,944 |
| 4,745,506 | 5,179,771 |
| CURRENT ASSETS |
| Inventories | 14 | 60,000 | 60,000 |
| Debtors | 15 | 3,028,488 | 3,591,964 |
| Cash at bank and in hand | 1,329,489 | 1,100,848 |
| 4,417,977 | 4,752,812 |
| CREDITORS |
| Amounts falling due within one year | 16 | 2,842,439 | 3,220,251 |
| NET CURRENT ASSETS | 1,575,538 | 1,532,561 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
6,321,044 |
6,712,332 |
| CREDITORS |
| Amounts falling due after more than one year |
17 |
(4,546,593 |
) |
(4,997,276 |
) |
| PROVISIONS FOR LIABILITIES | 21 | (250,744 | ) | (197,871 | ) |
| NET ASSETS | 1,523,707 | 1,517,185 |
| CAPITAL AND RESERVES |
| Called up share capital | 22 | 100 | 100 |
| Retained earnings | 23 | 1,523,607 | 1,517,085 |
| SHAREHOLDERS' FUNDS | 1,523,707 | 1,517,185 |
| The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 7 December 2022 and were signed on its behalf by: |
| E D Wheeler - Director |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| COMPANY BALANCE SHEET |
| 31 MAY 2022 |
| 31.5.22 | 31.5.21 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 |
| Property, plant and equipment | 11 |
| Investments | 12 |
| Investment property | 13 |
| CURRENT ASSETS |
| Debtors | 15 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 16 |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 22 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 312,547 | 235,485 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| COMPANY BALANCE SHEET - continued |
| 31 MAY 2022 |
| The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 31.5.22 | 31.5.21 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 1,207,017 | 304,734 |
| Interest paid | (36,940 | ) | (40,951 | ) |
| Interest element of hire purchase payments paid |
(23,702 |
) |
(25,724 |
) |
| Finance costs paid | (35,140 | ) | (35,000 | ) |
| Tax paid | (278,258 | ) | (450,375 | ) |
| Net cash from operating activities | 832,977 | (247,316 | ) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (411,735 | ) | (596,405 | ) |
| Purchase of investment property | (8,849 | ) | (99,969 | ) |
| Sale of tangible fixed assets | 193,499 | 136,340 |
| Interest received | 631 | 88 |
| Net cash from investing activities | (226,454 | ) | (559,946 | ) |
| Cash flows from financing activities |
| Loan repayments in year | (145,747 | ) | (107,908 | ) |
| Advances in year | 162,325 | 177,230 |
| Amount introduced by directors | 172,800 | 160,800 |
| Amount withdrawn by directors | (279,260 | ) | (87,254 | ) |
| Equity dividends paid | (288,000 | ) | (198,000 | ) |
| Net cash from financing activities | (377,882 | ) | (55,132 | ) |
| Increase/(decrease) in cash and cash equivalents | 228,641 | (862,394 | ) |
| Cash and cash equivalents at beginning of year |
2 |
1,100,848 |
1,963,242 |
| Cash and cash equivalents at end of year |
2 |
1,329,489 |
1,100,848 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Profit before taxation | 470,602 | 903,768 |
| Depreciation charges | 664,645 | 654,459 |
| (Profit)/loss on disposal of fixed assets | (3,294 | ) | 4,043 |
| Other provision | 18,643 | - |
| Finance costs | 95,782 | 101,675 |
| Finance income | (631 | ) | (88 | ) |
| 1,245,747 | 1,663,857 |
| Increase in inventories | - | (5,000 | ) |
| Decrease/(increase) in trade and other debtors | 563,476 | (1,918,691 | ) |
| (Decrease)/increase in trade and other creditors | (602,206 | ) | 564,568 |
| Cash generated from operations | 1,207,017 | 304,734 |
| 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 2022 |
| 31.5.22 | 1.6.21 |
| £ | £ |
| Cash and cash equivalents | 1,329,489 | 1,100,848 |
| Year ended 31 May 2021 |
| 31.5.21 | 1.6.20 |
| £ | £ |
| Cash and cash equivalents | 1,100,848 | 1,963,242 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.6.21 | Cash flow | At 31.5.22 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 1,100,848 | 228,641 | 1,329,489 |
| 1,100,848 | 228,641 | 1,329,489 |
| Debt |
| Finance leases | (547,477 | ) | (162,325 | ) | (709,802 | ) |
| Debts falling due within 1 year | (143,734 | ) | (1,950 | ) | (145,684 | ) |
| Debts falling due after 1 year | (1,170,407 | ) | 147,698 | (1,022,709 | ) |
| (1,861,618 | ) | (16,577 | ) | (1,878,195 | ) |
| Total | (760,770 | ) | 212,064 | (548,706 | ) |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 1. | STATUTORY INFORMATION |
| TDH Wheeler Limited is a private company, limited by shares, registered in England and Wales. It's registered office is Church View Chambers, 38 Market Square, Toddington, Dunstable, Bedfordshire, LU5 6BS. |
| Its principal place of business is Unit 3-4, Blackmoore Business Park, New Road, Maulden, MK45 2BG. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Turnover |
| Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Goodwill |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Freehold property | - |
| Improvements to property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Investment property |
| Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
| Inventories |
| Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Financial instruments |
| Financial instruments are classified by the directors as basic or advanced following the conditions in FRS102 Section 11. Basic financial instruments are recognised at amortised cost using the effective interest method. |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Lease modifications provided by the lessor to the lessee are recognised in the period benefiting from the payment holiday. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 3. | OTHER OPERATING INCOME |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Rents received | 127,109 | 102,669 |
| Sundry receipts | 4,052 | 4,198 |
| Government grants | 5,505 | 198,828 |
| 136,666 | 305,695 |
| The company received apprenticeship grants amounting to £5,505 (2021: £nil). |
| Government grants of £nil (2021: £178,378) were received under the Coronavirus Job Retention Scheme to compensate for employees placed on furlough. £nil (2021: £2,344) was also received last year under the Coronavirus Statutory Sick Pay Rebate Scheme and £nil (2021: £8,105) Coronavirus Business Interruption Loan to cover the first 9 months' interest charge. |
| There are no unfulfilled conditions or other contingencies attached to these grants. |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Wages and salaries | 2,933,555 | 2,580,858 |
| Social security costs | 303,389 | 239,797 |
| Other pension costs | 80,728 | 65,776 |
| 3,317,672 | 2,886,431 |
| The average number of employees during the year was as follows: |
| 31.5.22 | 31.5.21 |
| Number of directors | 2 | 2 |
| Number of operational staff | 86 | 80 |
| The average number of employees by undertakings that were proportionately consolidated during the year was 88 (2021 - 80 ) . |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Directors' remuneration | 61,758 | 83,656 |
| Directors' pension contributions to money purchase schemes | 12,000 | 4,000 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Hire of plant and machinery | 10,184 | 9,870 |
| Depreciation - owned assets | 27,573 | 35,791 |
| Depreciation - assets on hire purchase contracts | 157,097 | 138,693 |
| (Profit)/loss on disposal of fixed assets | (3,294 | ) | 4,043 |
| Goodwill amortisation | 479,974 | 479,975 |
| Auditors' remuneration | 5,000 | 5,000 |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Bank interest | 7,792 | 8,105 |
| Bank loan interest | 29,148 | 30,757 |
| Interest on corporation tax | - | 2,089 |
| Hire purchase | 23,702 | 25,724 |
| Other loan interest | 35,140 | 35,000 |
| 95,782 | 101,675 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Current tax: |
| UK corporation tax | 141,850 | 228,257 |
| Deferred tax | 34,230 | 35,542 |
| Tax on profit | 176,080 | 263,799 |
| UK corporation tax has been charged at 19 % (2021 - 19 %). |
| 8. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 9. | DIVIDENDS |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim | 288,000 | 198,000 |
| 10. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1 June 2021 |
| and 31 May 2022 | 2,399,874 |
| AMORTISATION |
| At 1 June 2021 | 1,359,930 |
| Amortisation for year | 479,974 |
| At 31 May 2022 | 1,839,904 |
| NET BOOK VALUE |
| At 31 May 2022 | 559,970 |
| At 31 May 2021 | 1,039,944 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 11. | PROPERTY, PLANT AND EQUIPMENT |
| Group |
| Improvements |
| Freehold | to | Plant and |
| property | property | machinery |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 June 2021 | 650,000 | 5,136 | 175,007 |
| Additions | - | 4,971 | 7,602 |
| Disposals | - | - | - |
| At 31 May 2022 | 650,000 | 10,107 | 182,609 |
| DEPRECIATION |
| At 1 June 2021 | - | 225 | 75,501 |
| Charge for year | - | 899 | 15,361 |
| Eliminated on disposal | - | - | - |
| At 31 May 2022 | - | 1,124 | 90,862 |
| NET BOOK VALUE |
| At 31 May 2022 | 650,000 | 8,983 | 91,747 |
| At 31 May 2021 | 650,000 | 4,911 | 99,506 |
| Fixtures |
| and | Motor |
| fittings | vehicles | Totals |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 June 2021 | 93,117 | 1,146,220 | 2,069,480 |
| Additions | 14,930 | 384,232 | 411,735 |
| Disposals | - | (343,326 | ) | (343,326 | ) |
| At 31 May 2022 | 108,047 | 1,187,126 | 2,137,889 |
| DEPRECIATION |
| At 1 June 2021 | 69,088 | 402,783 | 547,597 |
| Charge for year | 4,626 | 163,784 | 184,670 |
| Eliminated on disposal | - | (153,121 | ) | (153,121 | ) |
| At 31 May 2022 | 73,714 | 413,446 | 579,146 |
| NET BOOK VALUE |
| At 31 May 2022 | 34,333 | 773,680 | 1,558,743 |
| At 31 May 2021 | 24,029 | 743,437 | 1,521,883 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 11. | PROPERTY, PLANT AND EQUIPMENT - continued |
| Group |
| Cost or valuation at 31 May 2022 is represented by: |
| Improvements |
| Freehold | to | Plant and |
| property | property | machinery |
| £ | £ | £ |
| Valuation in 2019 | 56,537 | - | - |
| Cost | 593,463 | 10,107 | 182,609 |
| 650,000 | 10,107 | 182,609 |
| Fixtures |
| and | Motor |
| fittings | vehicles | Totals |
| £ | £ | £ |
| Valuation in 2019 | - | - | 56,537 |
| Cost | 108,047 | 1,187,126 | 2,081,352 |
| 108,047 | 1,187,126 | 2,137,889 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Motor |
| vehicles |
| £ |
| COST OR VALUATION |
| At 1 June 2021 | 930,204 |
| Additions | 384,232 |
| Disposals | (221,620 | ) |
| At 31 May 2022 | 1,092,816 |
| DEPRECIATION |
| At 1 June 2021 | 236,498 |
| Charge for year | 157,097 |
| Eliminated on disposal | (54,398 | ) |
| At 31 May 2022 | 339,197 |
| NET BOOK VALUE |
| At 31 May 2022 | 753,619 |
| At 31 May 2021 | 693,706 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 11. | PROPERTY, PLANT AND EQUIPMENT - continued |
| Company |
| Improvements | Fixtures |
| Freehold | to | Plant and | and |
| property | property | machinery | fittings | Totals |
| £ | £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 June 2021 |
| Additions |
| At 31 May 2022 |
| DEPRECIATION |
| At 1 June 2021 |
| Charge for year |
| At 31 May 2022 |
| NET BOOK VALUE |
| At 31 May 2022 |
| At 31 May 2021 |
| Cost or valuation at 31 May 2022 is represented by: |
| Improvements | Fixtures |
| Freehold | to | Plant and | and |
| property | property | machinery | fittings | Totals |
| £ | £ | £ | £ | £ |
| Valuation in 2019 | 56,537 | - | - | - | 56,537 |
| Cost | 593,463 | 10,107 | 2,703 | 2,621 | 608,894 |
| 650,000 | 10,107 | 2,703 | 2,621 | 665,431 |
| 12. | FIXED ASSET INVESTMENTS |
| Company |
| Unlisted |
| investments |
| £ |
| COST |
| At 1 June 2021 |
| and 31 May 2022 |
| NET BOOK VALUE |
| At 31 May 2022 |
| At 31 May 2021 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 12. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: Church View Chambers, 38 Market Square,Toddington, Bedfordshire, LU5 6BS |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| 13. | INVESTMENT PROPERTY |
| Group |
| Total |
| £ |
| FAIR VALUE |
| At 1 June 2021 | 2,617,944 |
| Additions | 8,849 |
| At 31 May 2022 | 2,626,793 |
| NET BOOK VALUE |
| At 31 May 2022 | 2,626,793 |
| At 31 May 2021 | 2,617,944 |
| Fair value at 31 May 2022 is represented by: |
| £ |
| Valuation in 2019 | 454,613 |
| Valuation in 2020 | 126,522 |
| Cost | 2,045,658 |
| 2,626,793 |
| If the properties had not been revalued they would have been included at the following historical cost: |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Cost | 1,941,839 | 1,941,839 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 13. | INVESTMENT PROPERTY - continued |
| Company |
| Total |
| £ |
| FAIR VALUE |
| At 1 June 2021 |
| Additions |
| At 31 May 2022 |
| NET BOOK VALUE |
| At 31 May 2022 |
| At 31 May 2021 |
| Fair value at 31 May 2022 is represented by: |
| £ |
| Valuation in 2019 | 454,613 |
| Valuation in 2020 | 126,522 |
| Cost | 2,045,658 |
| 2,626,793 |
| If investment properties had not been revalued they would have been included at the following historical cost: |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Cost | 1,941,839 | 1,941,839 |
| Revaluations of properties have been undertaken by the following independent valuers.19th April 2018 by Barker Storey Matthews, 9th July 2018 by Berrys chartered surveyors, 9th September 2019 by Akermans chartered surveyors and 6th May 2020 by Robinson and Hall LLP. |
| 14. | STOCKS |
| Group |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Stocks | 60,000 | 60,000 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 15. | DEBTORS |
| Group | Company |
| 31.5.22 | 31.5.21 | 31.5.22 | 31.5.21 |
| £ | £ | £ | £ |
| Amounts falling due within one year: |
| Trade debtors | 2,227,320 | 2,794,011 |
| Other debtors | 52,901 | 58,901 |
| VAT | 306,814 | 296,469 |
| Prepayments and accrued income | 12,460 | 13,590 |
| 2,599,495 | 3,162,971 |
| Amounts falling due after more than one | year: |
| Trade debtors | 428,993 | 428,993 |
| Aggregate amounts | 3,028,488 | 3,591,964 |
| 16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.5.22 | 31.5.21 | 31.5.22 | 31.5.21 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 18) | 145,684 | 143,734 |
| Hire purchase contracts (see note 19) | 180,940 | 127,515 |
| Trade creditors | 1,701,556 | 1,977,507 |
| Amounts owed to group undertakings | - | - |
| Tax | 50,925 | 187,333 |
| Social security and other taxes | 70,739 | 60,918 |
| VAT | - | - | 326 | - |
| Other creditors | 234,223 | 224,002 |
| Directors' loan accounts | 70,878 | 177,338 | 70,878 | 177,338 |
| Accrued expenses | 387,494 | 321,904 |
| 2,842,439 | 3,220,251 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 31.5.22 | 31.5.21 | 31.5.22 | 31.5.21 |
| £ | £ | £ | £ |
| Bank loans (see note 18) | 1,022,709 | 1,170,407 |
| Hire purchase contracts (see note 19) | 528,862 | 419,962 |
| Other creditors | 2,995,022 | 3,406,907 |
| 4,546,593 | 4,997,276 |
| 18. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 31.5.22 | 31.5.21 | 31.5.22 | 31.5.21 |
| £ | £ | £ | £ |
| Amounts falling due within one year or | on demand: |
| Bank loans | 145,684 | 143,734 |
| Amounts falling due between one and | two years: |
| Bank loans - 1-2 years | 147,698 | 145,684 |
| Amounts falling due between two and | five years: |
| Bank loans - 2-5 years | 875,011 | 238,588 |
| Amounts falling due in more than five | years: |
| Repayable by instalments |
| Bank loans due after more than |
| 5 years by instalments | - | 786,135 | - | 786,135 |
| - | 786,135 | - | 786,135 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 19. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase | contracts |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Gross obligations repayable: |
| Within one year | 208,135 | 152,617 |
| Between one and five years | 561,148 | 454,562 |
| 769,283 | 607,179 |
| Finance charges repayable: |
| Within one year | 27,195 | 25,102 |
| Between one and five years | 32,286 | 34,600 |
| 59,481 | 59,702 |
| Net obligations repayable: |
| Within one year | 180,940 | 127,515 |
| Between one and five years | 528,862 | 419,962 |
| 709,802 | 547,477 |
| 20. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Company |
| 31.5.22 | 31.5.21 |
| £ | £ |
| Bank loans |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 21. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 31.5.22 | 31.5.21 | 31.5.22 | 31.5.21 |
| £ | £ | £ | £ |
| Deferred tax | 232,101 | 197,871 | 63,917 | 63,917 |
| Other provisions | 18,643 | - | - | - |
| Aggregate amounts | 250,744 | 197,871 | 63,917 | 63,917 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 June 2021 | 197,871 |
| Movement in the year | 34,230 |
| Balance at 31 May 2022 | 232,101 |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 June 2021 |
| Movement in the year |
| Balance at 31 May 2022 |
| 22. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.5.22 | 31.5.21 |
| value: | £ | £ |
| Ordinary | £1 | 100 | 100 |
| TDH WHEELER LIMITED (REGISTERED NUMBER: 11266974) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2022 |
| 23. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 June 2021 | 1,517,085 |
| Profit for the year | 294,522 |
| Dividends | (288,000 | ) |
| At 31 May 2022 | 1,523,607 |
| 24. | RELATED PARTY DISCLOSURES |
| During the year, a total of key management personnel compensation of £ 61,758 (2021 - £ 83,656 ) was paid. |