Contractors/Plant Hire (Reading) Ltd - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 03433419 (England and Wales)

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

FOR

CONTRACTORS/PLANT HIRE (READING) LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

J A Stevens

REGISTERED OFFICE:

Skates Lane

Pamber Green

Tadley

Hampshire

RG26 3AB

REGISTERED NUMBER:

03433419 (England and Wales)

AUDITORS:

Banks & Co Limited

Chartered Certified Accountants

Statutory Auditors

1 Carnegie Road

Newbury

Berkshire

RG14 5DJ

FIXED ASSETS

Tangible assets

5

5,620,177

5,847,325

Investments

6

175

175

Investment property

7

295,000

295,000

5,915,352

6,142,500

CURRENT ASSETS

Stocks

30,640

37,145

Debtors

8

3,324,479

3,373,425

Cash at bank

99,377

108,588

3,454,496

3,519,158

CREDITORS

Amounts falling due within one year

9

3,026,489

2,715,480

NET CURRENT ASSETS

428,007

803,678

TOTAL ASSETS LESS CURRENT LIABILITIES

6,343,359

6,946,178

CREDITORS

Amounts falling due after more than one year

10

(1,479,766

)

(1,966,117

)

PROVISIONS FOR LIABILITIES

(22,135

)

(90,109

)

NET ASSETS

4,841,458

4,889,952

CAPITAL AND RESERVES

Called up share capital

13

100

100

Revaluation reserve

14

158,395

158,395

Retained earnings

4,682,963

4,731,457

SHAREHOLDERS' FUNDS

4,841,458

4,889,952

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 4 August 2023 and were signed by:

J A Stevens - Director

1.	STATUTORY INFORMATION

Contractors/Plant Hire (Reading) Ltd is a private company , limited by shares, registered in England and Wales. the company's registered number is 03433419 and registered office address is Skates Lane, Pamber Green, Tadley, Hampshire, RG26 3AB.

The presentation currency of the financial statements is the GB pound (£), which is the functional currency of the company. Monetary amounts included in these financial statements are rounded to the nearest £.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern

The company has cash resources and access to other forms of finance. The director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Having regard to the above, the director believes it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Critical judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Recoverability of trade debtors

Provision is made for any trade debtors that are considered to be irrecoverable. This is based on management's best estimate taking consideration of particular factors including credit insurance and expected recovery.

Impairment of investment property

Investment property is shown at their fair value. The carrying value is reviewed for any impairment that may have occurred as a result of a change in circumstances that indicate that the carrying value may not be fully recoverable.

Turnover

Turnover represents sales of goods and services net of VAT and trade discounts. Turnover is recognised when the company has a right to receive income, on an accruals basis, when goods are sold or a hire term is completed.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Land & Buildings

-

2% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Government grants

Where the company is entitled to receive government funds under the Coronavirus Job Retention Scheme (CJRS) the amounts receivable are recognised at the point at which the company is entitled to claim. The revenue receipt is accounted for on the accrual basis and matched in the financial statements with the related costs for which the grant is intended to compensate.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the statement of profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Basic financial assets, including trade and other receivables, and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Impairment of financial assets

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled; or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party; or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, and loans from fellow

group companies, are initially recognised at transaction price, unless the arrangement constitutes a financing

transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as noncurrent liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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.

Taxation & 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

Tangible fixed assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future finance charges, are included in creditors.

Rentals payable under operating leases are charged to the profit and loss account 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.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Related party loans

Loans made to related parties and that are due in more than one year are disclosed at present value.

Present value is calculated by discounting the initial cost by the market rate prevalent during the period over the full term of the agreement.

The reduction of cost is included within retained earnings as a distribution arising from loans to related parties.

Any interest in relation to the loan is calculated at market value and recognised in the profit and loss account in the accounting period in which it falls due.

Loans made to related parties and that are considered repayable on demand are disclosed at cost.

The recoverability of each loan is considered by the Director on an annual basis and, should any impairment of the loans be required, appropriate disclosures and adjustments are made.

Operating leases

Rentals paid under operating leases are charged to income on a straight line basis over the term of the lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset is consumed.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 37 (2021 - 33 ) .

4.	AUDITORS' REMUNERATION

2022

2021

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

6,700

5,500

5.	TANGIBLE FIXED ASSETS

Fixtures

Land &

Plant and

and

Motor

Buildings

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST OR VALUATION

At 1 October 2021

1,312,000

11,154,853

102,300

1,448,364

14,017,517

Additions

-

1,513,708

1,430

533,704

2,048,842

Disposals

-

(880,368

)

-

(748,244

)

(1,628,612

)

At 30 September 2022

1,312,000

11,788,193

103,730

1,233,824

14,437,747

DEPRECIATION

At 1 October 2021

52,743

7,362,840

102,025

652,584

8,170,192

Charge for year

17,581

1,627,897

561

191,410

1,837,449

Eliminated on disposal

-

(749,617

)

-

(440,454

)

(1,190,071

)

At 30 September 2022

70,324

8,241,120

102,586

403,540

8,817,570

NET BOOK VALUE

At 30 September 2022

1,241,676

3,547,073

1,144

830,284

5,620,177

At 30 September 2021

1,259,257

3,792,013

275

795,780

5,847,325

Included in cost or valuation of land and buildings is freehold land of £ 432,960 (2021 - £ 432,960 ) which is not depreciated.

Cost or valuation at 30 September 2022 is represented by:

Fixtures

Land &

Plant and

and

Motor

Buildings

machinery

fittings

vehicles

Totals

£

£

£

£

£

Valuation in 2015

(46,175

)

-

-

-

(46,175

)

Valuation in 2018

76,000

-

-

-

76,000

Cost

1,282,175

11,788,193

103,730

1,233,824

14,407,922

1,312,000

11,788,193

103,730

1,233,824

14,437,747

If Freehold land and buildings had not been revalued they would have been included at the following historical cost:

2022

2021

£

£

Cost

1,282,175

1,282,175

Aggregate depreciation

202,402

189,979

Value of land in freehold land and buildings

661,000

661,000

Freehold land and buildings were valued on an open market basis on 30 September 2020 by the Director .

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST OR VALUATION

At 1 October 2021

2,355,836

970,271

3,326,107

Additions

1,227,574

366,559

1,594,133

Disposals

(31,396

)

(489,037

)

(520,433

)

Transfer to ownership

(470,965

)

(68,200

)

(539,165

)

At 30 September 2022

3,081,049

779,593

3,860,642

DEPRECIATION

At 1 October 2021

676,881

364,766

1,041,647

Charge for year

493,453

119,263

612,716

Eliminated on disposal

(3,660

)

(227,711

)

(231,371

)

Transfer to ownership

(190,762

)

(34,100

)

(224,862

)

At 30 September 2022

975,912

222,218

1,198,130

NET BOOK VALUE

At 30 September 2022

2,105,137

557,375

2,662,512

At 30 September 2021

1,678,955

605,505

2,284,460

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 October 2021

and 30 September 2022

175

NET BOOK VALUE

At 30 September 2022

175

At 30 September 2021

175

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 October 2021

and 30 September 2022

295,000

NET BOOK VALUE

At 30 September 2022

295,000

At 30 September 2021

295,000

Fair value at 30 September 2022 is represented by:

£

Valuation in 2020

146,956

Valuation in 2021

(70,000

)

Cost

218,044

295,000

8.

DEBTORS

2022

2021

£

£

Amounts falling due within one year:

Trade debtors

1,362,829

1,398,193

Amounts owed by group undertakings

1,436

834,900

Other debtors

111,555

35,043

Prepayments and accrued income

32,472

13,174

1,508,292

2,281,310

Amounts falling due after more than one year:

Amounts owed by group undertakings

1,816,187

1,092,115

Aggregate amounts

3,324,479

3,373,425

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

658,622

695,204

Hire purchase contracts (see note 11)

1,335,251

996,127

Trade creditors

395,604

510,186

Tax

809

92,693

Social security and other taxes

35,761

33,529

VAT

198,852

188,149

Other creditors

123,732

58,704

Directors' current accounts

246,876

117,376

Accrued expenses

30,982

23,512

3,026,489

2,715,480

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

570,574

631,956

CBIL

311,111

488,889

Hire purchase contracts (see note 11)

598,081

845,272

1,479,766

1,966,117

11.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2022

2021

£

£

Net obligations repayable:

Within one year

1,335,251

996,127

Between one and five years

598,081

845,272

1,933,332

1,841,399

Non-cancellable

operating leases

2022

2021

£

£

Within one year

66,417

139,250

Between one and five years

42,500

108,917

108,917

248,167

12.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank overdrafts

417,724

454,306

Bank loans

1,122,583

1,361,743

Hire purchase contracts

1,933,332

1,841,399

3,473,639

3,657,448

The company's borrowing facilities are secured by a fixed and floating charge over the current and future assets of the company and a legal charge over the freehold of Skates Farm.

Hire purchase contracts are individually secured against the assets to which they relate.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

100

Ordinary

£1

100

100

14.

RESERVES

Revaluation

reserve

£

At 1 October 2021

and 30 September 2022

158,395

15.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Richard Mark Lodge Taylor FCCA (Senior Statutory Auditor)

for and on behalf of Banks & Co Limited

16.	PENSION COMMITMENTS

The company is operating a defined contribution pension scheme. During the year the company contributed £73,178 (2021 - £79,386) At the year end the company had contributions totalling £5,478 (2021 - £6,369) outstanding.

17.	POST BALANCE SHEET EVENTS

The last few years have proved to be very challenging trading years, especially within the construction industry.There has been increased competitiveness within the market leading to lower margins which, in turn, has resulted in an unacceptable level of customer defaults.

However, demand for plant and equipment has continued to increase thus providing the Company with significant value in its fleet. Consequently, in February 2023, the Company sought to realise this value and announced that it would seek to close its plant hire business. Since then, it has initiated a programme of equipment and vehicle disposals which, to date, has enabled it to realise over £8 million.

This has enabled the Company to settle its liabilities as and when required including all costs associated with staff redundancies.

The director has no plans to liquidate the Company but is now seeking other investment opportunities within a broad range of industries including plant and tool and commercial property.

18.	ULTIMATE CONTROLLING PARTY

The controlling party is Tulimus Limited.

The ultimate controlling party is J A Stevens.

The company is a subsidiary undertaking of Tulimus Limited, registered office at 4 Mount Ephraim Road, Tunbridge Wells, Kent, TN1 1EE.The ultimate controlling party is the Director, J A Stevens.

The smallest group in which the results are consolidated is that headed by Tulimus Limited.