Silverfin false 31/12/2021 31/12/2021 01/01/2021 Mr Brian Clifford Trebble 01/11/2001 Mr Daniel Ross Trebble 17/09/2010 Mrs Elizabeth Trebble 01/11/2001 Lady Emma-Angelique Chantal Trebble 17/09/2010 09 September 2022 The principal activity of the Company during the financial year was that of vehicle body manufacturers. 04314801 2021-12-31 04314801 bus:Director1 2021-12-31 04314801 bus:Director2 2021-12-31 04314801 bus:Director3 2021-12-31 04314801 bus:Director4 2021-12-31 04314801 2020-12-31 04314801 core:CurrentFinancialInstruments 2021-12-31 04314801 core:CurrentFinancialInstruments 2020-12-31 04314801 core:Non-currentFinancialInstruments 2021-12-31 04314801 core:Non-currentFinancialInstruments 2020-12-31 04314801 core:ShareCapital 2021-12-31 04314801 core:ShareCapital 2020-12-31 04314801 core:RetainedEarningsAccumulatedLosses 2021-12-31 04314801 core:RetainedEarningsAccumulatedLosses 2020-12-31 04314801 core:Goodwill 2020-12-31 04314801 core:Goodwill 2021-12-31 04314801 core:LeaseholdImprovements 2020-12-31 04314801 core:PlantMachinery 2020-12-31 04314801 core:Vehicles 2020-12-31 04314801 core:FurnitureFittings 2020-12-31 04314801 core:LeaseholdImprovements 2021-12-31 04314801 core:PlantMachinery 2021-12-31 04314801 core:Vehicles 2021-12-31 04314801 core:FurnitureFittings 2021-12-31 04314801 core:CurrentFinancialInstruments core:Secured 2021-12-31 04314801 core:Non-currentFinancialInstruments core:Secured 2021-12-31 04314801 core:MoreThanFiveYears 2021-12-31 04314801 core:MoreThanFiveYears 2020-12-31 04314801 2019-12-31 04314801 core:AcceleratedTaxDepreciationDeferredTax 2021-12-31 04314801 core:AcceleratedTaxDepreciationDeferredTax 2020-12-31 04314801 core:TaxLossesCarry-forwardsDeferredTax 2021-12-31 04314801 core:TaxLossesCarry-forwardsDeferredTax 2020-12-31 04314801 bus:OrdinaryShareClass1 2021-12-31 04314801 bus:OrdinaryShareClass2 2021-12-31 04314801 core:WithinOneYear 2021-12-31 04314801 core:WithinOneYear 2020-12-31 04314801 core:BetweenOneFiveYears 2021-12-31 04314801 core:BetweenOneFiveYears 2020-12-31 04314801 2021-01-01 2021-12-31 04314801 bus:FullAccounts 2021-01-01 2021-12-31 04314801 bus:SmallEntities 2021-01-01 2021-12-31 04314801 bus:AuditExemptWithAccountantsReport 2021-01-01 2021-12-31 04314801 bus:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 04314801 bus:Director1 2021-01-01 2021-12-31 04314801 bus:Director2 2021-01-01 2021-12-31 04314801 bus:Director3 2021-01-01 2021-12-31 04314801 bus:Director4 2021-01-01 2021-12-31 04314801 core:Goodwill core:TopRangeValue 2021-01-01 2021-12-31 04314801 core:Goodwill 2021-01-01 2021-12-31 04314801 core:LeaseholdImprovements 2021-01-01 2021-12-31 04314801 core:PlantMachinery 2021-01-01 2021-12-31 04314801 core:Vehicles 2021-01-01 2021-12-31 04314801 core:FurnitureFittings 2021-01-01 2021-12-31 04314801 2020-01-01 2020-12-31 04314801 core:CurrentFinancialInstruments 2021-01-01 2021-12-31 04314801 core:Non-currentFinancialInstruments 2021-01-01 2021-12-31 04314801 bus:OrdinaryShareClass1 2021-01-01 2021-12-31 04314801 bus:OrdinaryShareClass1 2020-01-01 2020-12-31 04314801 bus:OrdinaryShareClass2 2021-01-01 2021-12-31 04314801 bus:OrdinaryShareClass2 2020-01-01 2020-12-31 iso4217:GBP xbrli:pure xbrli:shares

Company No: 04314801 (England and Wales)

TRUCKSMITH LIMITED

Unaudited Financial Statements
For the financial year ended 31 December 2021
Pages for filing with the registrar

TRUCKSMITH LIMITED

Unaudited Financial Statements

For the financial year ended 31 December 2021

Contents

TRUCKSMITH LIMITED

STATEMENT OF FINANCIAL POSITION

As at 31 December 2021
TRUCKSMITH LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

As at 31 December 2021
Note 2021 2020
£ £
Fixed assets
Intangible assets 3 12,000 16,000
Tangible assets 4 990,919 1,051,747
1,002,919 1,067,747
Current assets
Stocks 5 279,187 202,849
Debtors 6 881,524 1,132,039
Cash at bank and in hand 52,745 243,647
1,213,456 1,578,535
Creditors
Amounts falling due within one year 7 ( 2,159,451) ( 2,369,554)
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 ( 1,090,113) ( 1,224,044)
Provision for liabilities 9 ( 19,452) ( 11,810)
Net liabilities ( 1,052,641) ( 959,126)
Capital and reserves
Called-up share capital 10 280 280
Profit and loss account ( 1,052,921 ) ( 959,406 )
Total shareholders' deficit ( 1,052,641) ( 959,126)

For the financial year ending 31 December 2021 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements of Trucksmith Limited (registered number: 04314801) were approved and authorised for issue by the Director on 09 September 2022. They were signed on its behalf by:

Mr Daniel Ross Trebble
Director
TRUCKSMITH LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2021
TRUCKSMITH LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2021
1. Accounting policies

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.

General information and basis of accounting

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 £.

Going concern

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.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of Financial Position date are reported at the rates of exchange prevailing at that date.

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

Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Employee benefits

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

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.

Taxation

Current tax
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.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Goodwill 10 years straight line
Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis over its useful economic life of 10 years.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a reducing balance basis over its expected useful life, as follows:

Leasehold improvements 15 % reducing balance
Plant and machinery 15 % reducing balance
Vehicles 10 - 25 % reducing balance
Fixtures and fittings 15 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Borrowing costs

Borrowing costs that are directly attributable to acquisition, construction or production of qualifying assets, that are capitalised as part of the cost of those assets. Capitalisation begins when both finance costs and expenditures for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

Leases

The Company as lessee
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.

Impairment of assets

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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

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.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

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 creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

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

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.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

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.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

2. Employees

2021 2020
Number Number
Monthly average number of persons employed by the Company during the year, including directors 63 59

3. Intangible assets

Goodwill Total
£ £
Cost
At 01 January 2021 40,000 40,000
At 31 December 2021 40,000 40,000
Accumulated amortisation
At 01 January 2021 24,000 24,000
Charge for the financial year 4,000 4,000
At 31 December 2021 28,000 28,000
Net book value
At 31 December 2021 12,000 12,000
At 31 December 2020 16,000 16,000

4. Tangible assets

Leasehold improve-
ments
Plant and machinery Vehicles Fixtures and fittings Total
£ £ £ £ £
Cost
At 01 January 2021 95,229 1,013,554 780,626 297,948 2,187,357
Additions 25,581 23,462 0 30,355 79,398
Disposals 0 0 ( 110,821) 0 ( 110,821)
At 31 December 2021 120,810 1,037,016 669,805 328,303 2,155,934
Accumulated depreciation
At 01 January 2021 55,852 474,937 416,359 188,462 1,135,610
Charge for the financial year 9,743 26,112 32,140 20,976 88,971
Disposals 0 0 ( 59,566) 0 ( 59,566)
At 31 December 2021 65,595 501,049 388,933 209,438 1,165,015
Net book value
At 31 December 2021 55,215 535,967 280,872 118,865 990,919
At 31 December 2020 39,377 538,617 364,267 109,486 1,051,747
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

5. Stocks

2021 2020
£ £
Stocks 279,187 95,009
Work in progress 0 107,840
279,187 202,849

6. Debtors

2021 2020
£ £
Trade debtors 85,338 318,306
Amounts owed by directors 261,305 257,010
Prepayments 63,450 191,348
Other debtors 471,431 365,375
881,524 1,132,039

7. Creditors: amounts falling due within one year

2021 2020
£ £
Bank loans (secured £ 25,324) 242,824 127,005
Trade creditors 253,807 637,559
Amounts owed to directors 39,982 55,982
Other creditors 7,850 100
Accruals and deferred income 199,593 363,893
Corporation tax 68,557 100,579
Other taxation and social security 1,323,422 995,217
Obligations under finance leases and hire purchase contracts (secured) 23,416 89,219
2,159,451 2,369,554

The bank loans above are secured over the assets of the company. The obligations under finance lease and hire purchase contracts are secured over the assets to which they relate.

8. Creditors: amounts falling due after more than one year

2021 2020
£ £
Bank loans (secured £ 296,993) 1,087,832 1,192,224
Obligations under finance leases and hire purchase contracts (secured) 2,281 31,820
1,090,113 1,224,044

The bank loans above are secured over the assets of the company. The obligations under finance lease and hire purchase contracts are secured over the assets to which they relate.

Amounts repayable after more than 5 years are included in creditors falling due over one year:

2021 2020
£ £
Bank loans (secured / repayable by instalments) 177,760 250,881

9. Deferred tax

2021 2020
£ £
At the beginning of financial year ( 11,810) ( 136,786)
(Charged)/credited to the Statement of Income and Retained Earnings ( 7,642) 124,976
At the end of financial year ( 19,452) ( 11,810)

The deferred taxation balance is made up as follows:

2021 2020
£ £
Accelerated capital allowances ( 165,612) ( 126,640)
Tax losses carry forward 146,160 114,830
( 19,452) ( 11,810)

10. Called-up share capital

2021 2020
£ £
Allotted, called-up and fully-paid
8,000 Employee Profit 1p ordinary shares of £ 0.01 each 80 80
2,000 Ordinary 10p shares of £ 0.10 each 200 200
280 280

11. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

2021 2020
£ £
- within one year 211,787 231,475
- between one and five years 858,328 14,091
1,070,115 245,566

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.

12. Related party transactions

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.