Company No:
Contents
Note | 2021 | 2020 | ||
£ | £ | |||
Fixed assets | ||||
Intangible assets | 3 |
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Tangible assets | 4 |
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1,002,919 | 1,067,747 | |||
Current assets | ||||
Stocks | 5 |
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Debtors | 6 |
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Cash at bank and in hand |
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1,213,456 | 1,578,535 | |||
Creditors | ||||
Amounts falling due within one year | 7 | (
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Net current liabilities | (945,995) | (791,019) | ||
Total assets less current liabilities | 56,924 | 276,728 | ||
Creditors | ||||
Amounts falling due after more than one year | 8 | (
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Provision for liabilities | 9 | (
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Net liabilities | (
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Capital and reserves | ||||
Called-up share capital | 10 |
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Profit and loss account | (
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Total shareholders' deficit | (
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Directors' responsibilities:
The financial statements of Trucksmith Limited (registered number:
Mr Daniel Ross Trebble
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Trucksmith Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is King Place, Hitchcocks Business Park, Uffculme, EX15 3FH, England, United Kingdom.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.
The financial statements have been prepared on a going concern basis, despite the Company generating a loss after tax of £93,515 during the year and having net liabilities of £1,052,641 at the year end.
During 2021, the Company has continued to receive support from HMRC in respect of arrears due.
Towards the end of 2021 and into 2022, the Company has been impacted by ongoing supply chain issues from Europe, leading to considerable delays in the receipt of base vehicles. However, the Company has seen marked improvements throughout Q2 of 2022, with an expectation that these issues will be fully resolved by the end of Q3. Once these supply chain issues are resolved, the Directors expect the Company to trade efficiently and profitably.
The Directors have assessed the financial position and likely future cash flows at the date of approving these financial statements, taking into account the notable increase in demand, the full order book for 2022 and the strong pipeline into 2023.
Based on the forecast and the expectation that HMRC will continue to support the business, the Directors remain confident that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due, for at least 12 months from the date of signing these financial statements. As such, the Directors have concluded it is appropriate for the financial statements to be prepared on a going concern basis.
The Directors have identified material uncertainties which may cast doubt on the Company's ability to continue as a going concern. From an operational perspective, these include the supply chain issues affecting the receipt of base vehicles and the recruitment of appropriately skilled employees to undertake the work required, both of which would impact the Company’s ability to ensure that production can continue at the required level. From a debt perspective, if HMRC were to seek payment of the arrears over a short period, the Company would require alternative funding which has not yet been arranged. The financial statements do not reflect any adjustments that would be necessary should the Company be impacted by these uncertainties.
Exchange differences are recognised in the Statement of Income and Retained Earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.
Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.
Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Statement of Financial Position.
Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.
Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Goodwill |
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Leasehold improvements |
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Plant and machinery |
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Vehicles | 10 -
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Fixtures and fittings |
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All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.
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.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
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.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
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.
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
2021 | 2020 | ||
Number | Number | ||
Monthly average number of persons employed by the Company during the year, including directors |
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Goodwill | Total | ||
£ | £ | ||
Cost | |||
At 01 January 2021 |
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At 31 December 2021 |
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Accumulated amortisation | |||
At 01 January 2021 |
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Charge for the financial year |
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At 31 December 2021 |
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Net book value | |||
At 31 December 2021 |
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At 31 December 2020 |
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Leasehold improve- ments |
Plant and machinery | Vehicles | Fixtures and fittings | Total | |||||
£ | £ | £ | £ | £ | |||||
Cost | |||||||||
At 01 January 2021 |
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Additions |
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Disposals |
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At 31 December 2021 |
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Accumulated depreciation | |||||||||
At 01 January 2021 |
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Charge for the financial year |
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Disposals |
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At 31 December 2021 |
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Net book value | |||||||||
At 31 December 2021 |
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At 31 December 2020 |
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Leased assets included above: | |||||||||
Net book value | |||||||||
At 31 December 2021 | 0 | 875 | 163,902 | 0 | 164,777 | ||||
At 31 December 2020 | 0 | 1,030 | 226,939 | 0 | 227,969 |
2021 | 2020 | ||
£ | £ | ||
Stocks |
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Work in progress |
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2021 | 2020 | ||
£ | £ | ||
Trade debtors |
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Amounts owed by directors |
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Prepayments |
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Other debtors |
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2021 | 2020 | ||
£ | £ | ||
Bank loans (secured £
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Trade creditors |
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Amounts owed to directors |
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Other creditors |
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Accruals and deferred income |
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Corporation tax |
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Other taxation and social security |
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Obligations under finance leases and hire purchase contracts (secured) |
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2021 | 2020 | ||
£ | £ | ||
Bank loans (secured £
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Obligations under finance leases and hire purchase contracts (secured) |
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1,090,113 | 1,224,044 |
Amounts repayable after more than 5 years are included in creditors falling due over one year:
2021 | 2020 | ||
£ | £ | ||
Bank loans (secured / repayable by instalments) |
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2021 | 2020 | ||
£ | £ | ||
At the beginning of financial year | (
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(Charged)/credited to the Statement of Income and Retained Earnings | (
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At the end of financial year | (
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The deferred taxation balance is made up as follows:
2021 | 2020 | ||
£ | £ | ||
Accelerated capital allowances | (
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Tax losses carry forward |
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2021 | 2020 | ||
£ | £ | ||
Allotted, called-up and fully-paid | |||
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280 | 280 |
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2021 | 2020 | ||
£ | £ | ||
- within one year |
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- between one and five years |
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Pensions
The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. During the year, contributions of £29,265 (2020: £32,365) were paid into the scheme.
Transactions with the entity's directors
At the year end, 2 Directors owed the Company £261,305 (2020: £257,010). Interest is payable at 2.5% per annum on these loans.
At the year end, 2 Directors were owed £39,982 (2020: £55,982) by the Company. No interest is charged on these loans.
Other related party transactions
During the year, recharges of £395,877 (2020: £305,512) were charged by the Company to Trucksmith Service Limited, a Company that a Director 100% owns and controls, and at the year end the Company was owed £386,090 (2020: £225,273). At 31 December 2021, Trucksmith Service Limited had Net Liabilities of £347,358. The Directors are confident that, following Trucksmith Service Limited’s restructure of contracts and focus on specific areas of the business, it is expected to return to profitability, which will facilitate the repayment of this debt. As such. the Directors have concluded that no provision is required in respect of this balance.