Company Registration No. 02373851 (England and Wales)
TAYLOR CONSTRUCTION PLANT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
LB GROUP
Swift House
Ground Floor
18 Hoffmanns Way
Chelmsford
Essex
UK
CM1 1GU
TAYLOR CONSTRUCTION PLANT LIMITED
COMPANY INFORMATION
Directors
Mr A J Barker
Mr P A Bentley
Secretary
Mr A C Green
Company number
02373851
Registered office
Quayside Industrial Park
Bates Road
Maldon
Essex
UK
CM9 5FA
Auditor
LB Group Limited (Chelmsford)
Swift House
Ground Floor
18 Hoffmanns Way
Chelmsford
Essex
UK
CM1 1GU
TAYLOR CONSTRUCTION PLANT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 27
TAYLOR CONSTRUCTION PLANT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -

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

Fair review of the business

The directors aim to provide a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced.

Principal risks and uncertainties

As for many businesses of this size, the business environment in which the company operates continues to be challenging, particularly so in the hire industry as it has continued to consolidate around the larger players.

 

The company continues to lead in the development of innovative products, and is clearly focussed on developing Zero Emission Products and support services and providing a unique offering that is gaining momentum ahead of the significantly increased environmental awareness and legislation.

 

Covid 19 has had an impact on the business as a result from a downturn in construction activity. The company remained open for business throughout the lockdown periods. A number of staff were furloughed and the company has taken the support offered by the government and commercially with the CIBILS loan. Robust debt management have resulted in a positive impact on cashflow, with turnover returning to expected levels by 20/21 quarter three.

 

 

The company ensures that it is compliant with all rules and regulations for their industry.

Development and performance

Sales for the year were £8,116,273, an increase of £2,155,159 from £5,961,114 in 2021, this is a 36.15% increase in sales. There was an increase in the gross profit margin from 34.69% in 2021 to 44.71% in 2022.

 

Administration expenses for the year were £2,469,439, an increase of £476,572 from £1,992,867 in 2021, this is a 23.91% increase in administration expenses.

On behalf of the board

Mr A J Barker
Director
21 July 2022
TAYLOR CONSTRUCTION PLANT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2022.

Principal activities

The principal activity of the company continued to be that of the hire of construction plant and machinery.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £80,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A J Barker
Mr P A Bentley
Financial instruments
Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

The auditor, LB Group Limited (Chelmsford), is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr A J Barker
Director
21 July 2022
TAYLOR CONSTRUCTION PLANT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

TAYLOR CONSTRUCTION PLANT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TAYLOR CONSTRUCTION PLANT LIMITED
- 4 -
Opinion

We have audited the financial statements of Taylor Construction Plant Limited (the 'company') for the year ended 31 March 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

TAYLOR CONSTRUCTION PLANT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TAYLOR CONSTRUCTION PLANT LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

TAYLOR CONSTRUCTION PLANT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TAYLOR CONSTRUCTION PLANT LIMITED
- 6 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, incorporated the following:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, our work included:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

TAYLOR CONSTRUCTION PLANT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TAYLOR CONSTRUCTION PLANT LIMITED
- 7 -

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 an auditor's report 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.

Stuart Sheldrick (Senior Statutory Auditor)
For and on behalf of LB Group Limited (Chelmsford)
15 August 2022
Chartered Accountants
Statutory Auditor
Swift House
Ground Floor
18 Hoffmanns Way
Chelmsford
Essex
UK
CM1 1GU
TAYLOR CONSTRUCTION PLANT LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
8,116,273
5,961,114
Cost of sales
(4,487,227)
(3,893,353)
Gross profit
3,629,046
2,067,761
Administrative expenses
(2,469,439)
(1,992,867)
Other operating income
5,612
380,215
Operating profit
4
1,165,219
455,109
Interest receivable and similar income
7
83
-
0
Interest payable and similar expenses
8
(50,764)
(70,336)
Amounts written off investments
9
-
0
(8,000)
Profit before taxation
1,114,538
376,773
Tax on profit
10
(351,205)
(76,713)
Profit for the financial year
763,333
300,060

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TAYLOR CONSTRUCTION PLANT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
2022
2021
£
£
Profit for the year
763,333
300,060
Other comprehensive income
Revaluation of tangible fixed assets
472,949
-
0
Tax relating to other comprehensive income
(111,600)
-
0
Other comprehensive income for the year
361,349
-
0
Total comprehensive income for the year
1,124,682
300,060
TAYLOR CONSTRUCTION PLANT LIMITED
BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
13
6,797,532
7,048,102
Current assets
Stocks
14
430,307
490,466
Debtors
15
2,536,400
2,231,269
Cash at bank and in hand
949,705
674,341
3,916,412
3,396,076
Creditors: amounts falling due within one year
16
(1,990,719)
(2,239,992)
Net current assets
1,925,693
1,156,084
Total assets less current liabilities
8,723,225
8,204,186
Creditors: amounts falling due after more than one year
17
(465,163)
(1,265,606)
Provisions for liabilities
Deferred tax liability
20
727,600
452,800
(727,600)
(452,800)
Net assets
7,530,462
6,485,780
Capital and reserves
Called up share capital
23
180,666
180,666
Share premium account
409,667
409,667
Revaluation reserve
790,247
428,898
Profit and loss reserves
6,149,882
5,466,549
Total equity
7,530,462
6,485,780
The financial statements were approved by the board of directors and authorised for issue on 21 July 2022 and are signed on its behalf by:
Mr A J Barker
Director
Company Registration No. 02373851
TAYLOR CONSTRUCTION PLANT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 11 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2020
180,666
409,667
428,898
5,170,489
6,189,720
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
-
-
300,060
300,060
Dividends
11
-
-
-
(4,000)
(4,000)
Balance at 31 March 2021
180,666
409,667
428,898
5,466,549
6,485,780
Year ended 31 March 2022:
Profit for the year
-
-
-
763,333
763,333
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
472,949
-
472,949
Tax relating to other comprehensive income
-
-
(111,600)
-
0
(111,600)
Total comprehensive income for the year
-
-
361,349
763,333
1,124,682
Dividends
11
-
-
-
(80,000)
(80,000)
Balance at 31 March 2022
180,666
409,667
790,247
6,149,882
7,530,462
TAYLOR CONSTRUCTION PLANT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
- 12 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,940,559
2,558,477
Interest paid
(50,763)
(70,336)
Income taxes paid
(35,340)
-
0
Net cash inflow from operating activities
1,854,456
2,488,141
Investing activities
Purchase of tangible fixed assets
(1,415,387)
(889,230)
Proceeds on disposal of tangible fixed assets
320,961
310,260
Proceeds on disposal of subsidiaries
-
0
153,000
Proceeds on disposal of investments
-
0
(8,000)
Interest received
83
-
0
Net cash used in investing activities
(1,094,343)
(433,970)
Financing activities
Repayment of bank loans
(350,000)
350,000
Payment of finance leases obligations
(67,795)
(420,516)
Dividends paid
(80,000)
(4,000)
Net cash used in financing activities
(497,795)
(74,516)
Net increase in cash and cash equivalents
262,318
1,979,655
Cash and cash equivalents at beginning of year
674,341
(1,305,314)
Cash and cash equivalents at end of year
936,659
674,341
Relating to:
Cash at bank and in hand
949,705
674,341
Bank overdrafts included in creditors payable within one year
(13,046)
-
0
TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 13 -
1
Accounting policies
Company information

Taylor Construction Plant Limited is a private company limited by shares incorporated in England and Wales. The registered office is Quayside Industrial Park, Bates Road, Maldon, Essex, UK, CM9 5FA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets - goodwill

Acquired goodwill is written off in year of acquisition.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
4% straight line
Plant and machinery
15% straight line
Computer equipment
33% straight line
Motor vehicles
25% straight line
TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 14 -

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 15 -
1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

 

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 only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 17 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 18 -
2
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.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
8,060,572
5,775,492
Outside the United Kingdom
55,701
185,622
8,116,273
5,961,114
2022
2021
£
£
Other revenue
Interest income
83
-
0
Grants received
5,612
380,215
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
1,585
(160)
Research and development costs
3,925
7,672
Government grants
(5,612)
(380,215)
Fees payable to the company's auditor for the audit of the company's financial statements
12,786
21,053
Depreciation of owned tangible fixed assets
1,926,004
1,955,333
Profit on disposal of tangible fixed assets
(108,059)
(143,894)
Operating lease charges
100,539
90,741
TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 19 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Direct staff
36
34
Administration staff
21
22
Directors
2
2
Total
59
58

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
1,788,098
1,657,217
Social security costs
177,845
157,468
Pension costs
156,037
89,521
2,121,980
1,904,206
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
113,369
85,413
Company pension contributions to defined contribution schemes
83,344
36,393
196,713
121,806
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
83
-
0

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
83
-
0
TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 20 -
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,100
3,381
Other finance costs:
Interest on finance leases and hire purchase contracts
49,664
66,955
50,764
70,336
9
Amounts written off investments
2022
2021
£
£
Gain/(loss) on disposal of investments held at fair value
-
(8,000)
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
188,005
87,713
Deferred tax
Origination and reversal of timing differences
163,200
(11,000)
Total tax charge
351,205
76,713

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
1,114,538
376,773
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
211,762
71,587
Tax effect of expenses that are not deductible in determining taxable profit
404
1,595
Tax effect of income not taxable in determining taxable profit
(21,487)
(28,536)
Permanent capital allowances in excess of depreciation
(2,674)
43,067
Deferred tax adjustments in respect of prior years
163,200
(11,000)
Taxation charge for the year
351,205
76,713
TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
10
Taxation
(Continued)
- 21 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2022
2021
£
£
Deferred tax arising on:
Revaluation of property
111,600
-
11
Dividends
2022
2021
£
£
Final paid
80,000
4,000
12
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2021 and 31 March 2022
5,002
Amortisation and impairment
At 1 April 2021 and 31 March 2022
5,002
Carrying amount
At 31 March 2022
-
0
At 31 March 2021
-
0
TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 22 -
13
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2021
1,168,687
14,495,269
51,339
1,245,487
16,960,782
Additions
66,379
1,168,514
862
179,632
1,415,387
Disposals
-
0
(718,514)
(14,091)
(69,501)
(802,106)
Revaluation
107,620
-
0
-
0
-
0
107,620
At 31 March 2022
1,342,686
14,945,269
38,110
1,355,618
17,681,683
Depreciation and impairment
At 1 April 2021
345,676
8,810,934
29,032
727,038
9,912,680
Depreciation charged in the year
24,107
1,653,242
11,683
236,972
1,926,004
Eliminated in respect of disposals
-
0
(506,402)
(13,301)
(69,501)
(589,204)
Revaluation
(365,329)
-
0
-
0
-
0
(365,329)
At 31 March 2022
4,454
9,957,774
27,414
894,509
10,884,151
Carrying amount
At 31 March 2022
1,338,232
4,987,495
10,696
461,109
6,797,532
At 31 March 2021
823,011
5,684,335
22,307
518,449
7,048,102

Land and buildings with a carrying amount of £802,051 were revalued at 28th June 2022 by Fenn Wright, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

 

Cost - £1,040,130 (2021: £955,064)

Accumulated depreciation - £559,601 (2021: £488,447)

Carrying value - £480,529 (2021: £466,617)

14
Stocks
2022
2021
£
£
Raw materials and consumables
398,771
412,494
Finished goods and goods for resale
31,536
77,972
430,307
490,466
TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 23 -
15
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
2,299,085
1,761,276
Corporation tax recoverable
-
0
52,373
Other debtors
29,621
73,618
Prepayments and accrued income
85,181
221,489
2,413,887
2,108,756
2022
2021
Amounts falling due after more than one year:
£
£
Other debtors
122,513
122,513
Total debtors
2,536,400
2,231,269
16
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans and overdrafts
18
13,046
58,333
Obligations under finance leases
19
920,207
992,226
Trade creditors
302,630
494,309
Corporation tax
188,005
87,713
Other taxation and social security
342,644
433,690
Government grants
21
4,000
12,817
Other creditors
40,995
41,502
Accruals and deferred income
179,192
119,402
1,990,719
2,239,992
17
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
18
-
0
291,667
Obligations under finance leases
19
461,496
457,272
Government grants
21
3,667
7,667
Other creditors
-
0
509,000
465,163
1,265,606
TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
17
Creditors: amounts falling due after more than one year
(Continued)
- 24 -

All assets are secured by a debenture from Barclays Bank Plc. dated 9 April 1992.

 

The land held at Quayside Park is secured by a charge from Barclays Bank Plc. dated 6 August 1997.

 

Hire purchase with Lombard North Central Plc. are secured by a fixed charge dated 22 July 2013.

 

There is a guarantee in favour of HMRC for £5,000.

18
Loans and overdrafts
2022
2021
£
£
Bank loans
-
0
350,000
Bank overdrafts
13,046
-
0
13,046
350,000
Payable within one year
13,046
58,333
Payable after one year
-
0
291,667
19
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
920,207
992,226
In two to five years
461,496
457,272
1,381,703
1,449,498
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
727,600
452,800
TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
20
Deferred taxation
(Continued)
- 25 -
2022
Movements in the year:
£
Liability at 1 April 2021
452,800
Charge to profit or loss
274,800
Liability at 31 March 2022
727,600
21
Government grants
2022
2021
£
£
Arising from government grants
7,667
20,484

Deferred income is included in the financial statements as follows:

Current liabilities
4,000
12,817
Non-current liabilities
3,667
7,667
7,667
20,484
22
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
156,037
89,521

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

23
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
180,666
180,666
180,666
180,666
TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 26 -
24
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
71,682
59,300
Between two and five years
179,074
26,025
250,756
85,325
25
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2022
2021
2022
2021
£
£
£
£
Other related parties
431,970
-
0
423,315
-
2022
2021
Amounts due from related parties
£
£
Other related parties
245,481
-
Other information

During the year, a director of the company was owed £Nil (2021: £3,760) .

 

TAYLOR CONSTRUCTION PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 27 -
26
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
763,333
300,060
Adjustments for:
Taxation charged
351,205
76,713
Finance costs
50,763
70,336
Investment income
(83)
-
0
Gain on disposal of tangible fixed assets
(108,059)
(143,894)
Depreciation and impairment of tangible fixed assets
1,926,004
1,955,333
Other gains and losses
-
8,000
Movements in working capital:
Decrease in stocks
60,159
79,588
Increase in debtors
(357,504)
(123,718)
(Decrease)/increase in creditors
(732,442)
331,242
(Decrease)/increase in deferred income
(12,817)
4,817
Cash generated from operations
1,940,559
2,558,477
27
Analysis of changes in net debt
1 April 2021
Cash flows
31 March 2022
£
£
£
Cash at bank and in hand
674,341
275,364
949,705
Bank overdrafts
-
0
(13,046)
(13,046)
674,341
262,318
936,659
Borrowings excluding overdrafts
(350,000)
350,000
-
Obligations under finance leases
(1,449,498)
67,795
(1,381,703)
(1,125,157)
680,113
(445,044)
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