Company registration number 09509966 (England and Wales)
CRJ SERVICES HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
CRJ SERVICES HOLDINGS LTD
COMPANY INFORMATION
Directors
J L Carter
L B McQuaid
R H Symons
A Clarkson
(Appointed 25 January 2023)
Company number
09509966
Registered office
Brook House Farm
London Road
Allostock
Knutsford
Cheshire
WA16 9LU
Auditor
Cowgill Holloway LLP
Regency House
45-53 Chorley New Road
Bolton
BL1 4QR
CRJ SERVICES HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
CRJ SERVICES HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Review of the business

CRJ Services Holdings Ltd continues to act as a parent holding company. The CRJ Services group of companies hires and sells high quality machinery into the material processing and recycling industry. We mainly supply shredders, screeners and separators and also the associated parts to a wide range of customers throughout the UK and Ireland. We have purpose built workshops that repairs our own fleet and we also carry out third party repairs to customers machines.

We are passionate about playing our part in helping the UK and Ireland to recycle and over the years we have helped divert millions of tonnes of waste from landfill. We have built a reputation for quality, reliability and going the extra mile to ensure our customers operations run smoothly and this reputation is something we feel sets us apart from the rest of the industry.

In the year to March 2022 we acquired the exclusive dealership of Jenz GmbH. We are very pleased that we have been successful in growing this brand in the UK and it also allows us to enter the forestry market which could be a significant growth area in the future. Since the year ended March 2023 we have also acquired the exclusive dealership of Pronar, for the sale and hire of Trommel screens within the UK. Pronar has been under represented in the UK in the past and we are looking forward to growing this brand which again provides an area for significant growth.

The Directors are very pleased with the growth in profitability of the business. EBITDA reached £5.7m (2022: £4.2m) a growth of 35.7%. We invested a further £6.9m in additional assets and we will continually reinvest to maintain our hire fleet at an exceptional level of quality.

During the year the shareholders carried out a restructure of the shareholding of the company which resulted in 425 ordinary shares being bought back for a consideration of £3.925M and a further 94 shares being allotted. The purchase of shares was partly funded through a bank loan of £1.64M with HSBC UK Bank Plc with the balance being funded out of the company’s own cash reserves, resulting in a reduction in total net assets.

Our balance sheet continues to remain very strong at £9.3m (2022: £11.3m) which places the business in a stable position for the future.

Principal risks and uncertainties

The group uses various financial instruments including hire purchase, finance leases, trade credit and other creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group’s operations.

The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail below. The directors review and agree policies for managing these risks. These policies have remained unchanged from previous years.

Liquidity risk

The group seeks to manage financial risk by ensuring liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Interest rate risk

The group finances its operations through a combination of retained profits, finance leases and hire purchase contracts. The group exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.

Foreign currency risk

The group’s principal foreign currency exposures arose from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.

CRJ SERVICES HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Principal risks and uncertainties (continued)

Credit risk

The principal credit risk arises from the group's trade debtors.

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.

Economic risk

As a result of global economic factors, including both the recovery from Covid-19 and the Ukraine war, costs have generally increased in most areas, including fuel, energy and wages. These inflation related price increase are expected to remain for some time to come. Close monitoring of costs by the directors to budget are in place to mitigate the financial impact on on-going profitability.

Key performance indicators

On behalf of the board

J L Carter
Director
2 November 2023
CRJ SERVICES HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the group continued to be the hire and sale of equipment.

 

The company is the parent of a trading group comprising four subsidiaries:

 

CRJ Services Limited, which hires and sells material processing and recycling machines.

 

Matpro Machinery Limited, CRJ Services (Northern Ireland) Ltd and CRJ Services Machinery (Ireland) Limited are all dormant.

Results and dividends

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

No ordinary dividends were paid. 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:

J L Carter
K H Jones
(Resigned 17 October 2022)
L B McQuaid
R H Symons
A Clarkson
(Appointed 25 January 2023)
Future developments

The directors will continue to monitor profit margins, utilisation of assets and sales growth in the forthcoming year. The group's growth strategy is based around strong customer partnerships and continued investment in its hire and parts business.

Auditor

The auditor, Cowgill Holloway LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

CRJ SERVICES HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
J L Carter
Director
2 November 2023
CRJ SERVICES HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CRJ SERVICES HOLDINGS LTD
- 5 -
Opinion

We have audited the financial statements of CRJ Services Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and 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 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:

CRJ SERVICES HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CRJ SERVICES HOLDINGS LTD
- 6 -
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 their 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 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 directors either intend to liquidate the parent 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.

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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, CRJ Services Holdings Ltd is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

Secondly, CRJ Services holdings Ltd is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the group's license to operate. We identified the following areas as those most likely to have such an effect: laws related the hire and sale of machinery, employment, road transportation, health & safety and data protection.

 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

CRJ SERVICES HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CRJ SERVICES HOLDINGS LTD
- 7 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

 

 

 

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.

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.

Caroline Snape (Senior Statutory Auditor)
For and on behalf of Cowgill Holloway LLP
2 November 2023
Chartered Accountants
Statutory Auditor
Regency House
45-53 Chorley New Road
Bolton
BL1 4QR
CRJ SERVICES HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
as restated
Notes
£
£
Turnover
3
25,301,521
19,102,592
Cost of sales
(19,532,361)
(14,791,591)
Gross profit
5,769,160
4,311,001
Administrative expenses
(3,127,199)
(2,441,970)
Other operating income
-
52,808
Operating profit
4
2,641,961
1,921,839
Interest receivable and similar income
8
3,556
4,337
Interest payable and similar expenses
9
(290,441)
(145,920)
Profit before taxation
2,355,076
1,780,256
Tax on profit
10
(482,889)
(643,506)
Profit for the financial year
1,872,187
1,136,750
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
CRJ SERVICES HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
16,140
8,750
Tangible assets
12
15,885,614
13,057,182
15,901,754
13,065,932
Current assets
Stocks
15
3,981,189
3,685,432
Debtors
16
4,691,907
3,730,968
Cash at bank and in hand
3,094,859
3,995,911
11,767,955
11,412,311
Creditors: amounts falling due within one year
17
(9,727,410)
(6,979,638)
Net current assets
2,040,545
4,432,673
Total assets less current liabilities
17,942,299
17,498,605
Creditors: amounts falling due after more than one year
18
(7,289,093)
(4,999,684)
Provisions for liabilities
Deferred tax liability
20
1,394,815
1,187,717
(1,394,815)
(1,187,717)
Net assets
9,258,391
11,311,204
Capital and reserves
Called up share capital
22
930
1,261
Capital redemption reserve
331
-
0
Other reserves
4,173,310
4,173,310
Profit and loss reserves
5,083,820
7,136,633
Total equity
9,258,391
11,311,204
The financial statements were approved by the board of directors and authorised for issue on 2 November 2023 and are signed on its behalf by:
02 November 2023
J L Carter
Director
CRJ SERVICES HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
720,659
1,089,237
Investments
13
1,261
1,261
721,920
1,090,498
Current assets
Debtors
16
845,750
1,569,861
Cash at bank and in hand
5,602
1,203,906
851,352
2,773,767
Creditors: amounts falling due within one year
17
(107,958)
(219,290)
Net current assets
743,394
2,554,477
Total assets less current liabilities
1,465,314
3,644,975
Provisions for liabilities
Deferred tax liability
20
110,445
85,494
(110,445)
(85,494)
Net assets
1,354,869
3,559,481
Capital and reserves
Called up share capital
22
930
1,261
Capital redemption reserve
331
-
0
Profit and loss reserves
1,353,608
3,558,220
Total equity
1,354,869
3,559,481

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,720,388 (2022 - £684,060 profit).

The financial statements were approved by the board of directors and authorised for issue on 2 November 2023 and are signed on its behalf by:
02 November 2023
J L Carter
Director
Company Registration No. 09509966
CRJ SERVICES HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
1,261
-
0
4,173,310
5,999,883
10,174,454
Year ended 31 March 2022:
Profit and total comprehensive income
-
-
-
1,136,750
1,136,750
Balance at 31 March 2022
1,261
-
0
4,173,310
7,136,633
11,311,204
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
1,872,187
1,872,187
Own shares acquired
-
-
-
(3,925,000)
(3,925,000)
Redemption of shares
22
(425)
425
-
-
-
0
Bonus issue of shares
94
(94)
-
-
-
Balance at 31 March 2023
930
331
4,173,310
5,083,820
9,258,391
CRJ SERVICES HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
1,261
-
0
2,874,160
2,875,421
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
684,060
684,060
Balance at 31 March 2022
1,261
-
0
3,558,220
3,559,481
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
1,720,388
1,720,388
Own shares acquired
-
-
(3,925,000)
(3,925,000)
Redemption of shares
22
(425)
425
-
-
0
Bonus issue of shares
94
(94)
-
-
Balance at 31 March 2023
930
331
1,353,608
1,354,869
CRJ SERVICES HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
5,943,692
2,367,656
Interest paid
(290,441)
(145,920)
Income taxes (paid)/refunded
(219,290)
41,184
Net cash inflow from operating activities
5,433,961
2,262,920
Investing activities
Purchase of intangible assets
(10,238)
(8,750)
Purchase of tangible fixed assets
(1,324,191)
(2,954,054)
Proceeds from disposal of tangible fixed assets
1,071,087
1,544,768
Interest received
3,556
4,337
Net cash used in investing activities
(259,786)
(1,413,699)
Financing activities
Purchase of own shares
(3,925,000)
-
0
Payment of finance leases obligations
(2,150,227)
(1,502,992)
Net cash used in financing activities
(6,075,227)
(1,502,992)
Net decrease in cash and cash equivalents
(901,052)
(653,771)
Cash and cash equivalents at beginning of year
3,995,911
4,649,682
Cash and cash equivalents at end of year
3,094,859
3,995,911
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
1
Accounting policies
Company information

CRJ Services Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Brook House Farm, London Road, Allostock, Knutsford, Cheshire, WA16 9LU.

 

The group consists of CRJ Services Holdings Ltd and all of its subsidiaries.

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. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company CRJ Services Holdings Ltd together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
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 represents the value of equipment hire services provided to customers during the period, excluding value added tax.

 

Turnover from equipment sales, part sales and transport is recognised when goods have been delivered to customers such that the risks and rewards of ownership have transferred to them.

 

Turnover from equipment hire services is recognised upon completion of terms of hire based on the hourly usage of the equipment by the customer.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Website
5 years straight line basis
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.

CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -

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:

Leasehold land and buildings
4% p.a. straight line basis
Plant and equipment
20% p.a. reducing balance basis
Fixtures and fittings
20% p.a. reducing balance basis
Computers
20% p.a. reducing balance basis
Motor vehicles
20% p.a. reducing balance basis

Assets in the course of construction are 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 recognised in the profit and loss account.

 

On the disposal of an asset that was previously part of the company's hire fleet, and where the customer purchasing the asset was not the lessee of the asset during its use as part of the hire fleet, the carrying value of the asset will be charged to cost of sales and the sale proceeds will be credited to turnover.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -

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.

1.9
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 are valued using a first-in first-out costing basis.

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.

1.10
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.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
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 group 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 group after deducting all of its liabilities.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
Taxation

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

CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 if, and only if, there is 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.

1.14
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
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.

1.17
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.

CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
1.18
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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets

The useful economic life of tangible fixed assets and residual values where applicable, are estimated by the directors of the company, to ensure and appropriate depreciation charge is recognised each year.

3
Turnover and other revenue
2023
2022
as restated
£
£
Turnover analysed by class of business
Plant hire sales
8,752,429
7,522,301
Machinery sales
11,988,178
8,321,533
Parts sales
3,990,826
2,798,080
Transport sales
570,088
460,678
25,301,521
19,102,592
2023
2022
as restated
£
£
Turnover analysed by geographical market
UK
24,115,960
18,654,434
Europe
1,167,845
441,718
Rest of World
17,716
6,440
25,301,521
19,102,592
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Other revenue
Interest income
3,556
4,337
Grants received
-
1,558
4
Operating profit
2023
2022
as restated
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
61,201
(58,023)
Government grants
-
(1,558)
Depreciation of owned tangible fixed assets
914,920
929,705
Depreciation of tangible fixed assets held under finance leases
2,126,405
1,378,755
Loss on disposal of tangible fixed assets
4,854
1,958
Amortisation of intangible assets
2,848
-

Government grants received in 2022 related to claims made for the Coronavirus Job Retention Scheme.

5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
16,000
15,000
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production and engineering
38
33
-
-
Administration
11
9
-
-
Sales
10
9
-
-
Total
59
51
-
0
-
0
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,832,159
2,249,596
-
0
-
0
Social security costs
330,055
265,345
-
-
Pension costs
170,403
158,741
-
0
-
0
3,332,617
2,673,682
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
469,757
460,576
Company pension contributions to defined contribution schemes
123,632
122,642
593,389
583,218
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
199,893
183,152
Company pension contributions to defined contribution schemes
41,321
41,321

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022: 3).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
3,556
4,337
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
214
-
Other interest on financial liabilities
32,252
-
Interest on finance leases and hire purchase contracts
257,975
145,428
Other interest
-
492
Total finance costs
290,441
145,920
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
314,725
78,236
Adjustments in respect of prior periods
(38,934)
66,922
Total current tax
275,791
145,158
Deferred tax
Origination and reversal of timing differences
157,394
213,297
Changes in tax rates
49,704
285,051
Total deferred tax
207,098
498,348
Total tax charge
482,889
643,506

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:

2023
2022
£
£
Profit before taxation
2,355,076
1,780,256
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
447,464
338,249
Tax effect of expenses that are not deductible in determining taxable profit
32,917
594
Gains not taxable
(2,090)
(36,621)
Adjustments in respect of prior years
(38,934)
66,922
Effect of change in corporation tax rate
49,704
285,051
Permanent capital allowances in excess of depreciation
(7,144)
(10,689)
Depreciation on assets not qualifying for tax allowances
972
-
Taxation charge
482,889
643,506
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 24 -

Deferred tax has been recognised at a rate of 25%. In October 2022, the government announced an increase in the corporation tax main rate from 19% to 25% for companies with profit over £250,000. There is a small company rate of 19% for taxable profits under £50,000 and marginal relief available for profits falling between £50,000 - £250,000 with effect from 1 April 2023.

11
Intangible fixed assets
Group
Website
£
Cost
At 1 April 2022
8,750
Additions
10,238
At 31 March 2023
18,988
Amortisation and impairment
At 1 April 2022
-
0
Amortisation charged for the year
2,848
At 31 March 2023
2,848
Carrying amount
At 31 March 2023
16,140
At 31 March 2022
8,750
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2022
271,565
58,333
16,505,589
74,664
119,082
566,831
17,596,064
Additions
65,162
-
0
6,754,316
12,033
68,930
45,257
6,945,698
Disposals
-
0
-
0
(1,878,464)
-
0
(1,995)
(77,134)
(1,957,593)
Transfers
-
0
(58,333)
58,333
-
0
-
0
-
0
-
0
At 31 March 2023
336,727
-
0
21,439,774
86,697
186,017
534,954
22,584,169
Depreciation and impairment
At 1 April 2022
42,467
-
0
4,303,316
15,804
27,272
150,023
4,538,882
Depreciation charged in the year
14,143
-
0
2,907,532
14,212
23,948
81,490
3,041,325
Eliminated in respect of disposals
-
0
-
0
(854,867)
-
0
-
0
(26,785)
(881,652)
At 31 March 2023
56,610
-
0
6,355,981
30,016
51,220
204,728
6,698,555
Carrying amount
At 31 March 2023
280,117
-
0
15,083,793
56,681
134,797
330,226
15,885,614
At 31 March 2022
229,098
58,333
12,202,273
58,860
91,810
416,808
13,057,182
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
Company
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
1,850,701
6,102
49,230
1,906,033
Disposals
(569,202)
-
0
-
0
(569,202)
At 31 March 2023
1,281,499
6,102
49,230
1,336,831
Depreciation and impairment
At 1 April 2022
779,292
4,908
32,596
816,796
Depreciation charged in the year
192,546
239
3,370
196,155
Eliminated in respect of disposals
(396,779)
-
0
-
0
(396,779)
At 31 March 2023
575,059
5,147
35,966
616,172
Carrying amount
At 31 March 2023
706,440
955
13,264
720,659
At 31 March 2022
1,071,409
1,194
16,634
1,089,237

Assets under the course of construction represent deposits paid on plant and machinery ordered before the year end.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
11,531,615
8,713,589
-
0
-
0
Motor vehicles
57,652
117,931
-
0
-
0
11,589,267
8,831,520
-
-
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1,261
1,261
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
1,261
Carrying amount
At 31 March 2023
1,261
At 31 March 2022
1,261
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
CRJ Services Limited
1
Sale and hire of material processing and recycling machines
Ordinary
100.00
Matpro Machinery Limited
2
Dormant
Ordinary
100.00
CRJ Services (Northern Ireland) Ltd
3
Dormant
Ordinary
100.00
CRJ Services Machinery (Ireland) Limited
4
Dormant
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Brook House Farm, London Road, Allostock, Knutsford, Cheshire, WA16 9LU
2
272 Bath Street, Glasglow, G2 4JR
3
Titanic Suites (Belfast) Ltd, 55-59 Adelaide Street, Belfast, BT2, Northern Ireland
4
Killamonan, County Dublin, The Ward, Dublin, Ireland
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
34,920
41,217
-
-
Finished goods and goods for resale
3,946,269
3,644,215
-
0
-
0
3,981,189
3,685,432
-
-

Stock with a carrying value of £49,909 (2022: £76,000) is held on a hire purchase agreement.

CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,194,495
2,359,370
-
0
-
0
Amounts owed by group undertakings
-
-
23,749
879,860
Other debtors
185,213
351
1
1
Prepayments and accrued income
1,312,199
1,371,247
822,000
690,000
4,691,907
3,730,968
845,750
1,569,861
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
19
3,520,852
2,338,981
-
0
-
0
Trade creditors
3,347,330
2,555,473
-
0
-
0
Corporation tax payable
275,791
219,290
107,958
219,290
Other taxation and social security
625,805
194,069
-
-
Other creditors
330,201
462,645
-
0
-
0
Accruals and deferred income
1,627,431
1,209,180
-
0
-
0
9,727,410
6,979,638
107,958
219,290

Obligations under finance leases are secured against the assets to which they relate.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
19
7,289,093
4,999,684
-
0
-
0

Obligations under finance leases are secured against the assets to which they relate.

19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
3,520,852
2,338,981
-
0
-
0
In two to five years
7,289,093
4,999,684
-
0
-
0
10,809,945
7,338,665
-
-
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
19
Finance lease obligations
(Continued)
- 29 -

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
1,395,884
1,188,608
Retirement benefit obligations
(1,069)
(891)
1,394,815
1,187,717
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
110,445
85,494
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
1,187,717
85,494
Charge to profit or loss
157,394
18,963
Effect of change in tax rate - profit or loss
49,704
5,988
Liability at 31 March 2023
1,394,815
110,445

The deferred tax liability relates to accelerated capital allowances that are expected to mature over the associated fixed asset life.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
170,403
158,741

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
-
1,261
-
1,261
A Ordinary shares of £1 each
320
-
320
-
B Ordinary shares of £1 each
47
-
47
-
C Ordinary shares of £1 each
47
-
47
-
D Ordinary shares of £1 each
94
-
94
-
E Ordinary shares of £1 each
139
-
139
-
F Ordinary shares of £1 each
94
-
94
-
G Ordinary shares of £1 each
189
-
189
-
930
1,261
930
1,261

In October 2022, 425 Ordinary shares of £1 each were bought back as a purchase of own shares for £3,925,000.

 

On 27 January 2023, the company used the capital redemption reserve, which arose on the above share repurchase, to allot 94 fully paid Ordinary shares of £1 each.

 

Following the above share allotment, the 930 Ordinary shares of £1 each were re-designated into:

- 320 A Ordinary shares of £1 each

- 47 B Ordinary shares of £1 each

- 47 C Ordinary shares of £1 each

- 94 D Ordinary shares of £1 each

- 139 E Ordinary shares of £1 each

- 94 F Ordinary shares of £1 each

- 189 G Ordinary shares of £1 each

 

All shares carry no fixed right to income and rank pari passu in every respect.

23
Related party transactions
Transactions with related parties

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

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
28,962
34,601
216,151
142,406

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Other related parties
46,915
30,902
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
23
Related party transactions
(Continued)
- 31 -
Other information

The company has taken advantage of the exemption provided in Financial Reporting Standard 102 Section 33 from disclosing related party transactions with group companies.

24
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,872,187
1,136,750
Adjustments for:
Taxation charged
482,889
643,506
Finance costs
290,441
145,920
Investment income
(3,556)
(4,337)
Loss on disposal of tangible fixed assets
4,854
1,958
Amortisation and impairment of intangible assets
2,848
-
Depreciation and impairment of tangible fixed assets
3,041,325
2,308,460
Movements in working capital:
Increase in stocks
(295,757)
(1,661,833)
Increase in debtors
(960,939)
(1,180,389)
Increase in creditors
1,509,400
977,621
Cash generated from operations
5,943,692
2,367,656
25
Analysis of changes in net debt - group
1 April 2022
Cash flows
New finance leases
31 March 2023
£
£
£
£
Cash at bank and in hand
3,995,911
(901,052)
-
3,094,859
Obligations under finance leases
(7,338,665)
2,150,227
(5,621,507)
(10,809,945)
(3,342,754)
1,249,175
(5,621,507)
(7,715,086)
26
Prior period adjustment
Adjustments to equity - group
The prior period adjustments do not give rise to any effect upon equity.
Adjustments to profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
26
Prior period adjustment
(Continued)
- 32 -
Adjustments to equity - company
The prior period adjustments do not give rise to any effect upon equity.
Adjustments to profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Notes to reconciliation - group
Change in accounting policy for sale of hire fleet assets

During the year, the group has changed its accounting policy in relation to the sale of assets that form part of the company's hire fleet. Where assets, previously held as part of the group's hire fleet, are sold to customers following a period of advertisement, the carrying value of the asset will be charged to cost of sales and the sales proceeds will be credited to turnover. The financial statements have been restated to reflect this change in accounting policy. This change has affected the previously reported turnover, cost of sales and administrative expenses.

 

Previously reported turnover for 2022 has increased by £2,055,493.

 

Previously reported cost of sales for 2022 has increased by £2,051,932. This relates to a £1,527,117 increase in machinery purchases for resale and a £524,815 reduction in the profit on sale of tangible assets.

 

Previously reported administrative expenses for 2022 has increased by £3,561. This relates to a £3,561 reduction in the profit on sale of tangible assets.

 

This prior period adjustment has had no affect on previously stated profits, retained profits or net assets of the group.

Notes to reconciliation - company
Change in accounting policy for sale of hire fleet assets

During the year, the company has changed its accounting policy in relation to the sale of assets that form part of the company's hire fleet. Where assets, previously held as part of the company's hire fleet, are sold to customers following a period of advertisement, the carrying value of the asset will be charged to cost of sales and the sales proceeds will be credited to turnover. The financial statements have been restated to reflect this change in accounting policy. This change has affected the previously reported turnover, cost of sales and administrative expenses.

 

Previously reported turnover for 2022 has increased by £590,000.

 

Previously reported cost of sales for 2022 has increased by £590,000. This relates to a £223,026 increase in machinery purchases for resale and a £366,974 reduction in the profit on sale of tangible assets.

 

This prior period adjustment has had no affect on previously stated profits, retained profits or net assets of the company.

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