REGISTERED NUMBER: 09629071 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
FOR |
TULIMUS LIMITED |
REGISTERED NUMBER: 09629071 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
FOR |
TULIMUS LIMITED |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 30 September 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
TULIMUS LIMITED |
COMPANY INFORMATION |
For The Year Ended 30 September 2022 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
1 Carnegie Road |
Newbury |
Berkshire |
RG14 5DJ |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
GROUP STRATEGIC REPORT |
For The Year Ended 30 September 2022 |
The director presents his strategic report of the company and the group for the year ended 30 September 2022. |
REVIEW OF BUSINESS |
Group turnover declined from £14.09 million to £13.85 million, due to a slowdown within the construction sector. This also resulted in various other challenges including some exceptional bad debts which was the principal reason for the group's operating losses in the year. Consequently, the management have implemented a number of changes to reduce its credit risk including carrying out more detailed risk assessments, limiting its exposure to single customers in order to create a wider customer base and exercising greater control over the group's debtor book. |
The director is confident that these measures will enable the group to return quickly to profitability. In particular, reference should be made to note 23, on page 26 to the financial statements in which some restructuring of the group's activities is explained. |
PRINCIPAL RISKS AND UNCERTAINTIES |
At a group level the principal risks and uncertainties include: |
- Reduced demand for the group's services, particularly if activity within the construction industry continues to slow down |
- Rising cost pressures, especially the cost of diesel and inflation in the pricing of new machinery. |
- Deteriorating credit quality and increasing customer defaults. |
To mitigate these risks the business continues to monitor its investment in its fleet and related debt, closely monitor the credit quality of its debtors and adjust the stock of items in the hire fleet to reflect demand levels. |
FUTURE DEVELOPMENTS |
The outlook for the construction industry looks mixed as rising interest rates may negatively impact demand for new housing. The business, however, expects to maintain similar levels of turnover by continuing to take market share and diversifying its customer base. The director believes that the business has adequate financial resources to manage the business risks successfully. |
KEY PERFORMANCE INDICATORS |
The Director continually monitors the effectiveness of the group's operating performance by considering various key performance indicators. The main indicators are revenue, operating profit and EBITDA. Of the KPI's not already mentioned, EBITDA in the period was £2.446 million (2021: £3.199 million) |
ON BEHALF OF THE BOARD: |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
REPORT OF THE DIRECTOR |
For The Year Ended 30 September 2022 |
The director presents his report with the financial statements of the company and the group for the year ended 30 September 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of hire of plant and machinery. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 September 2022. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Banks & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TULIMUS LIMITED |
Opinion |
We have audited the financial statements of Tulimus Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2022 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TULIMUS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TULIMUS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
Based on our understanding of the company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, employment regulation and health and safety regulation. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006. |
We evaluated the director's and management's incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks related to posting of manual journals, management bias through judgements and assumptions in significant accounting estimates, and significant one-off or unusual transactions. |
Our audit procedures were designed to respond to these identified risks, including non-compliance with laws and regulations that are material to the financial statements. Our audit audit procedures included but were not limited to: |
- |
Making enquiries of the director and management on whether they had any knowledge of any actual, suspected or alleged fraud; |
- |
Discussing with the director and management their policies and procedures for regarding compliance with laws and regulations; |
- |
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout the audit; |
- |
Assessing the risks of fraud through management override of controls by performing journal entry testing and analytical review procedures to identify any unusual or unexpected relationships |
The primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TULIMUS LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
1 Carnegie Road |
Newbury |
Berkshire |
RG14 5DJ |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
CONSOLIDATED INCOME STATEMENT |
For The Year Ended 30 September 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 13,849,241 | 14,091,415 |
Cost of sales | 8,194,247 | 8,217,845 |
GROSS PROFIT | 5,654,994 | 5,873,570 |
Administrative expenses | 5,947,009 | 5,454,636 |
(292,015 | ) | 418,934 |
Other operating income | 4,500 | 68,879 |
OPERATING (LOSS)/PROFIT | 5 | (287,515 | ) | 487,813 |
Gain/loss on revaluation of investment property |
- |
(70,000 |
) |
(287,515 | ) | 417,813 |
Interest payable and similar expenses | 6 | 209,411 | 205,567 |
(LOSS)/PROFIT BEFORE TAXATION | (496,926 | ) | 212,246 |
Tax on (loss)/profit | 7 | (60,066 | ) | 72,366 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (354,264 | ) | (2,507 | ) |
Non-controlling interests | (82,596 | ) | 142,387 |
(436,860 | ) | 139,880 |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
For The Year Ended 30 September 2022 |
2022 | 2021 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (436,860 | ) | 139,880 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(436,860 |
) |
139,880 |
Total comprehensive income attributable to: |
Owners of the parent | (354,264 | ) | (2,507 | ) |
Non-controlling interests | (82,596 | ) | 142,387 |
(436,860 | ) | 139,880 |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
CONSOLIDATED BALANCE SHEET |
30 September 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 399,300 | 532,399 |
Tangible assets | 10 | 7,260,085 | 7,460,105 |
Investments | 11 | - | - |
Investment property | 12 | 295,000 | 295,000 |
7,954,385 | 8,287,504 |
CURRENT ASSETS |
Stocks | 13 | 33,140 | 39,645 |
Debtors | 14 | 4,042,166 | 4,028,722 |
Cash at bank | 418,105 | 480,493 |
4,493,411 | 4,548,860 |
CREDITORS |
Amounts falling due within one year | 15 | 5,830,091 | 5,043,760 |
NET CURRENT LIABILITIES | (1,336,680 | ) | (494,900 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,617,705 |
7,792,604 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(3,416,483 |
) |
(4,094,456 |
) |
PROVISIONS FOR LIABILITIES | 20 | (191,213 | ) | (251,279 | ) |
NET ASSETS | 3,010,009 | 3,446,869 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 2 | 2 |
Revaluation reserve | 99,345 | 99,345 |
Retained earnings | 2,781,292 | 3,135,556 |
SHAREHOLDERS' FUNDS | 2,880,639 | 3,234,903 |
NON-CONTROLLING INTERESTS | 22 | 129,370 | 211,966 |
TOTAL EQUITY | 3,010,009 | 3,446,869 |
The financial statements were approved by the director and authorised for issue on 2 October 2023 and were signed by: |
J A Stevens - Director |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
COMPANY BALANCE SHEET |
30 September 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 75,130 | 195,381 |
The financial statements were approved by the director and authorised for issue on |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 30 September 2022 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 October 2020 | 2 | 3,138,063 | 99,345 |
Changes in equity |
Total comprehensive income | - | (2,507 | ) | - |
Balance at 30 September 2021 | 2 | 3,135,556 | 99,345 |
Changes in equity |
Total comprehensive income | - | (354,264 | ) | - |
Balance at 30 September 2022 | 2 | 2,781,292 | 99,345 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 October 2020 | 3,237,410 | 69,579 | 3,306,989 |
Changes in equity |
Total comprehensive income | (2,507 | ) | 142,387 | 139,880 |
Balance at 30 September 2021 | 3,234,903 | 211,966 | 3,446,869 |
Changes in equity |
Total comprehensive income | (354,264 | ) | (82,596 | ) | (436,860 | ) |
Balance at 30 September 2022 | 2,880,639 | 129,370 | 3,010,009 |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 30 September 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 September 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 September 2022 |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 30 September 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,735,181 | 2,060,442 |
Interest paid | (53,897 | ) | (56,722 | ) |
Interest element of hire purchase payments paid |
(155,514 |
) |
(148,845 |
) |
Tax paid | (127,064 | ) | (14,217 | ) |
Net cash from operating activities | 2,398,706 | 1,840,658 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (3,079,769 | ) | (2,562,223 | ) |
Sale of tangible fixed assets | 1,056,983 | 541,436 |
Net cash from investing activities | (2,022,786 | ) | (2,020,787 | ) |
Cash flows from financing activities |
Loan repayments in year | (239,158 | ) | (173,570 | ) |
Capital repayments in year | 4,943 | (13,130 | ) |
Amount introduced by directors | 246,876 | 117,376 |
Amount withdrawn by directors | (236,376 | ) | (283,008 | ) |
Net cash from financing activities | (223,715 | ) | (352,332 | ) |
Increase/(decrease) in cash and cash equivalents | 152,205 | (532,461 | ) |
Cash and cash equivalents at beginning of year |
2 |
(691,138 |
) |
(158,677 |
) |
Cash and cash equivalents at end of year |
2 |
(538,933 |
) |
(691,138 |
) |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 30 September 2022 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
(Loss)/profit before taxation | (496,926 | ) | 212,246 |
Depreciation charges | 2,866,782 | 2,914,622 |
Profit on disposal of fixed assets | (510,879 | ) | (299,082 | ) |
Loss on revaluation of fixed assets | - | 70,000 |
Finance costs | 209,411 | 205,567 |
2,068,388 | 3,103,353 |
Decrease/(increase) in stocks | 6,505 | (15,895 | ) |
Increase in trade and other debtors | (13,444 | ) | (1,153,838 | ) |
Increase in trade and other creditors | 673,732 | 126,822 |
Cash generated from operations | 2,735,181 | 2,060,442 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 418,105 | 480,493 |
Bank overdrafts | (957,038 | ) | (1,171,631 | ) |
(538,933 | ) | (691,138 | ) |
Year ended 30 September 2021 |
30.9.21 | 1.10.20 |
£ | £ |
Cash and cash equivalents | 480,493 | 317,822 |
Bank overdrafts | (1,171,631 | ) | (476,499 | ) |
(691,138 | ) | (158,677 | ) |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.10.21 | Cash flow | At 30.9.22 |
£ | £ | £ |
Net cash |
Cash at bank | 480,493 | (62,388 | ) | 418,105 |
Bank overdrafts | (1,171,631 | ) | 214,593 | (957,038 | ) |
(691,138 | ) | 152,205 | (538,933 | ) |
Debt |
Finance leases | (2,618,407 | ) | (4,943 | ) | (2,623,350 | ) |
Debts falling due within 1 year | (240,898 | ) | - | (240,898 | ) |
Debts falling due after 1 year | (1,120,845 | ) | 239,160 | (881,685 | ) |
(3,980,150 | ) | 234,217 | (3,745,933 | ) |
Total | (4,671,288 | ) | 386,422 | (4,284,866 | ) |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 30 September 2022 |
1. | STATUTORY INFORMATION |
Tulimus Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts included in these financial statements are rounded to the nearest £. |
Going concern |
The group meets its day-today working capital requirements through its bank facilities and from the support of its director. The current economic conditions create some uncertainty over the level of demand for the group's services. However, with the continuing support of the director, the group's forecasts show that the group should be able to operate within the level of its current facilities. |
Although these financial statements currently show net current liabilities of £1,336,680 (2021 - £494,900) the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group, therefore, adopts the going concern basis in preparing its financial statements. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and all entities controlled by the company, including through its subsidiaries. |
All financial statements are made up to the 30 September 2022. |
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2022 |
2. | ACCOUNTING POLICIES - continued |
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 |
The group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial |
instruments. |
Basic financial assets, including trade and other receivables, cash and bank balances and |
investments in commercial paper, 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, 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 |
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. |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the group's accounting policies, the director is 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. |
Impairment of investments |
Investments in subsidiaries are held as fixed assets and shown at cost less provision for impairment. On consolidation the carrying value of investments is eliminated. |
The carrying values of fixed asset investments are reviewed for impairment when an event or changes in circumstances indicate the carrying value may not be fully recoverable. |
Impairment of goodwill |
Goodwill on acquisition of subsidiary undertakings are shown at cost less provision for impairment. |
The carrying values of goodwill are reviewed for impairment when an event occurs or changes in circumstances indicate the carrying value may not be fully recoverable. |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2022 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 2,656,024 | 2,207,618 |
Social security costs | 276,540 | 220,565 |
Other pension costs | 139,613 | 122,487 |
3,072,177 | 2,550,670 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Operations | 43 | 35 |
Sales | 6 | 3 |
Management & administration | 25 | 21 |
2022 | 2021 |
£ | £ |
Director's remuneration | - | - |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2021 - operating profit) is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Hire of plant and machinery | 456 | - |
Depreciation - owned assets | 1,856,136 | 1,940,617 |
Depreciation - assets on hire purchase contracts | 877,548 | 840,907 |
Profit on disposal of fixed assets | (510,879 | ) | (299,082 | ) |
Goodwill amortisation | 133,099 | 133,099 |
Auditors' remuneration - parent company | 5,300 | 1,500 |
Auditors' remuneration for non audit work | 13,000 | - |
Auditors' remuneration - subsidiaries | 14,000 | 11,000 |
Bad debts | 283,254 | 361,165 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest | 53,533 | 56,722 |
Corporation tax interest | 364 | - |
Hire purchase | 155,514 | 148,845 |
209,411 | 205,567 |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2022 |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | - | 128,647 |
Deferred tax | (60,066 | ) | (56,281 | ) |
Tax on (loss)/profit | (60,066 | ) | 72,366 |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
(Loss)/profit before tax | (496,926 | ) | 212,246 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
(94,416 |
) |
40,327 |
Effects of: |
Expenses not deductible for tax purposes | 5,809 | 3,921 |
Capital allowances in excess of depreciation | (5,062 | ) | - |
Effect on deferred tax for changes in tax rates | - | (7,632 | ) |
Group relief | 5,147 | 7,121 |
Depreciation on assets not qualifying for tax allowances | 28,629 | 28,629 |
Capital gains on sale of plant & machinery | (173 | ) | - |
Total tax (credit)/charge | (60,066 | ) | 72,366 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 October 2021 |
and 30 September 2022 | 1,330,993 |
AMORTISATION |
At 1 October 2021 | 798,594 |
Amortisation for year | 133,099 |
At 30 September 2022 | 931,693 |
NET BOOK VALUE |
At 30 September 2022 | 399,300 |
At 30 September 2021 | 532,399 |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2022 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 October 2021 | 1,312,000 | 13,547,341 | 106,759 | 1,940,968 | 16,907,068 |
Additions | - | 2,417,535 | 16,436 | 645,798 | 3,079,769 |
Disposals | - | (1,103,463 | ) | - | (776,607 | ) | (1,880,070 | ) |
At 30 September 2022 | 1,312,000 | 14,861,413 | 123,195 | 1,810,159 | 18,106,767 |
DEPRECIATION |
At 1 October 2021 | 52,743 | 8,472,831 | 104,701 | 816,689 | 9,446,964 |
Charge for year | 17,581 | 2,404,972 | 4,455 | 306,676 | 2,733,684 |
Eliminated on disposal | - | (884,940 | ) | - | (449,026 | ) | (1,333,966 | ) |
At 30 September 2022 | 70,324 | 9,992,863 | 109,156 | 674,339 | 10,846,682 |
NET BOOK VALUE |
At 30 September 2022 | 1,241,676 | 4,868,550 | 14,039 | 1,135,820 | 7,260,085 |
At 30 September 2021 | 1,259,257 | 5,074,510 | 2,058 | 1,124,279 | 7,460,104 |
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 |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2015 | (46,175 | ) | - | - | - | (46,175 | ) |
Valuation in 2018 | 76,000 | - | - | - | 76,000 |
Cost | 1,282,175 | 14,861,413 | 123,195 | 1,810,159 | 18,076,942 |
1,312,000 | 14,861,413 | 123,195 | 1,810,159 | 18,106,767 |
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 | 189,979 | 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 . |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2022 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
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 | 3,215,754 | 1,374,903 | 4,590,657 |
Additions | 1,534,180 | 429,110 | 1,963,290 |
Disposals | (71,040 | ) | (502,902 | ) | (573,942 | ) |
Transfer to ownership | (700,459 | ) | (174,217 | ) | (874,676 | ) |
At 30 September 2022 | 3,978,435 | 1,126,894 | 5,105,329 |
DEPRECIATION |
At 1 October 2021 | 1,059,008 | 498,897 | 1,557,905 |
Charge for year | 688,825 | 188,723 | 877,548 |
Eliminated on disposal | (24,193 | ) | (230,484 | ) | (254,677 | ) |
Transfer to ownership | (374,357 | ) | (97,710 | ) | (472,067 | ) |
At 30 September 2022 | 1,349,283 | 359,426 | 1,708,709 |
NET BOOK VALUE |
At 30 September 2022 | 2,629,152 | 767,468 | 3,396,620 |
At 30 September 2021 | 2,156,746 | 876,006 | 3,032,752 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2021 |
and 30 September 2022 |
NET BOOK VALUE |
At 30 September 2022 |
At 30 September 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Skates Lane, Pamber Green, Tadley, Hampshire, RG26 3AB |
Nature of business: |
% |
Class of shares: | holding |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2022 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: Skate Farm, Skate Lane, Pamber Green, Tadley, Hampshire, RG26 3AB |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Skates Farm, Skates Lane, Pamber Green, Tadley, Hampshire, RG26 3AB |
Nature of business: |
% |
Class of shares: | holding |
12. | INVESTMENT PROPERTY |
Group |
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 |
The property was professionally valued on 19 July 2021 by an independent valuer on the basis of full and vacant possession and that the property is unlet. |
13. | STOCKS |
Group |
2022 | 2021 |
£ | £ |
Stocks | 33,140 | 39,645 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Trade debtors | 3,817,600 | 3,917,739 |
Other debtors | 158,412 | 68,086 |
Prepayments and accrued income | 66,154 | 42,897 |
4,042,166 | 4,028,722 |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2022 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 1,197,936 |
1,412,529 |
Hire purchase contracts (see note 18) | 1,691,895 | 1,367,138 |
Trade creditors | 2,036,119 | 1,566,417 |
Amounts owed to group undertakings | - | - |
Tax | 3,221 | 130,285 |
Social security and other taxes | 80,107 | 69,249 |
VAT | 344,519 | 268,152 | - | - |
Other creditors | 143,209 | 66,445 |
Directors' current accounts | 246,876 | 117,376 | - | - |
Accrued expenses | 86,209 | 46,169 |
5,830,091 | 5,043,760 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans (see note 17) | 881,685 | 1,120,845 |
Hire purchase contracts (see note 18) | 931,455 | 1,251,269 |
Amounts owed to group undertakings | 1 | - | - | - |
Directors' loan accounts | 1,603,342 | 1,722,342 | 1,603,342 | 1,722,342 |
3,416,483 | 4,094,456 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 957,038 | 1,171,631 |
Bank loans | 63,120 | 63,120 |
CBIL | 177,778 | 177,778 |
1,197,936 | 1,412,529 |
Amounts falling due between one and | two years: |
Bank loans | 570,574 | - |
CBIL | 311,111 | - |
881,685 | - |
Amounts falling due between two and | five years: |
Bank loans | - | 631,956 |
CBIL | - | 488,889 |
- | 1,120,845 |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2022 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year | 1,691,895 | 1,367,138 |
Between one and five years | 931,455 | 1,251,269 |
2,623,350 | 2,618,407 |
Group |
Non-cancellable | operating leases |
2022 | 2021 |
£ | £ |
Within one year | 202,367 | 250,361 |
Between one and five years | 117,500 | 294,334 |
319,867 | 544,695 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2022 | 2021 |
£ | £ |
Bank overdrafts | 957,038 | 1,171,631 |
Bank loans | 1,122,583 | 1,361,743 |
Hire purchase contracts | 2,623,350 | 2,618,407 |
4,702,971 | 5,151,781 |
The group's borrowing facilities are secured by a fixed and floating charge over the current and future assets of the business together with a legal charge over the freehold property. |
Hire purchase contracts are individually secured against the assets to which they relate. |
20. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax | 191,213 | 251,279 |
Group |
Deferred |
tax |
£ |
Balance at 1 October 2021 | 251,279 |
Credit to Income Statement during year | (60,066 | ) |
Balance at 30 September 2022 | 191,213 |
TULIMUS LIMITED (REGISTERED NUMBER: 09629071) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2022 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary A | £1 | 1 | 1 |
Ordinary B | £1 | 1 | 1 |
2 | 2 |
There are two classes of shares. Both have full rights in respect of voting and entitlement to full participation in respect of equity. |
22. | NON-CONTROLLING INTERESTS |
The movements in non-controlling interests was as follows: |
2021 | 2021 |
£ | £ |
Balance as at 1 October | 211,966 | 69,579 |
Total comprehensive income attributable to non-controlling interests | (82,596 | ) | 142,387 |
Balance as at 30 September | 129,370 | 211,966 |
23. | 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 group with significant value in its fleet. Consequently, in February 2023, the group sought to realise this value within one of its subsidiaries, Contractors/Plant Hire(Reading) Limited, 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. |
On 8 August 2023, the group completed the purchase of the business and assets of Aspire Platform Limited and LTS Powered Access Limited, previously in administration, which operated a number of plant hire sites in both the North and South of England. The total net consideration was approximately £160,000 which was all paid in cash. |