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COMPANY REGISTRATION NUMBER: 04348405
Boleyn Recovery & Fleet Services Limited
Financial Statements
31 March 2023
Boleyn Recovery & Fleet Services Limited
Financial Statements
Year ended 31 March 2023
Contents
Page
Strategic report
1
Directors' report
4
Independent auditor's report to the members
6
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14
Boleyn Recovery & Fleet Services Limited
Strategic Report
Year ended 31 March 2023
Introduction and business review
The principal activity of the company continued to be that of recovery for all types of vehicles, the provision of a vehicle repair workshop, an authorised testing facility and a tachograph facility. HGV recovery and servicing accounts for 60% of the company's trade, while car and van recovery accounts for 40% of the company's trade. Turnover in 2023 increased to £4,747,142 (2021: £4,491,014) and the company is now operating at pre Covid-19 pandemic levels. Management is confident of a further percentage increase in turnover during the 2024 accounting period by adding additional services to its customers and winning large UK wide recovery contracts for large fleet vehicles, whilst ensuring the existing customer base continues to be serviced to the company's high standards. Management have taken various additional steps to reduce its costs over the next accounting period. They have a key grasp of the daily cashflow of the company and continue to monitor turnover and profitability on a continued basis. As the company is primarily a fixed cost business, it is the director's reasonable expectation that as society continues to open up and the roads become busier to pre pandemic levels, turnover will grow, which will place the company back into profitability.
Principal risks and uncertainties
Management perceives the principal risks and uncertainties of the company to be: the exposure of the company to credit risk, liquidity risk & market risk Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Management of credit control is a priority of the company and potential defaulters are identified as soon as practicable with firm measures taken early to resolve any default on debt. Liquidity risk Liquidity risk is the risk that the company will encounter difficulty in meeting its obligations associated with its financial liabilities. The company regularly reviews its working capital requirements and responds quickly and appropriately where any potential shortfall is identified. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: currency risk, interest rate risk and other price risk. Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. Currency risk The Company is not exposed to currency risk as all its financial instruments are denominated in GBP. Interest rate risk Interest rate risk exists where interest rates on liabilities are either set according to different basis or reset at-different times. The company's loan is set at a fixed rate so there is deemed to be little in the way of risk to the company in this respect.
Financial and non-financial key performance indicators
The directors consider that the key financial performance indicators are the turnover, gross margin and pre-tax results. The directors consider that the key financial performance indicators are the turnover, gross margin and pre-tax results. Turnover has continued to rise, posting a 5.70% increase to £4,747,142 as the company continues to maintain and grow its customer base. There has been a slight decrease in the gross profit percentage from 20.54% to 20.49% however gross profit is up 5.42% to £972,609. The pre-tax result shows a loss of £280,410 compared to last year's loss of £117,345 as administrative expenses and fixed costs have increased due to inflation and higher interest rates. Non-financial key performance indicators are considered to be: Customer satisfaction On-time pick up Customer retention New customer development Internal process productivity Service quality Company and brand reputation Employee training and development Employee satisfaction
This report was approved by the board of directors on 29 September 2023 and signed on behalf of the board by:
Stephen Smith
Director
Registered office:
57a Broadway
Leigh on Sea
Essex
SS9 1PE
Boleyn Recovery & Fleet Services Limited
Directors' Report
Year ended 31 March 2023
The directors present their report and the financial statements of the company for the year ended 31 March 2023 .
Directors
The directors who served the company during the year were as follows:
James Parker
Stephen Smith
(Appointed 21 October 2022)
Michelle Marks
(Retired 24 October 2022)
Dividends
The directors do not recommend the payment of a dividend.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 29 September 2023 and signed on behalf of the board by:
Stephen Smith
Director
Registered office:
57a Broadway
Leigh on Sea
Essex
SS9 1PE
Boleyn Recovery & Fleet Services Limited
Independent Auditor's Report to the Members of Boleyn Recovery & Fleet Services Limited
Year ended 31 March 2023
Opinion
We have audited the financial statements of Boleyn Recovery & Fleet Services Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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 FRS 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 company's affairs as at 31 March 2023 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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; through verbal and written communications with those charged with governance and other management and via inspection of the company's regulatory and legal correspondence. We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations to our team (and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company's constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; trade legislation; data protection legislation; anti-bribery and corruption legislation. International Standards on Auditing (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements. In relation to fraud, we performed the following specific procedures in addition to those already noted: - Challenging assumptions made by management in its significant accounting estimates in particular: depreciation and deferred income; - Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account. - Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud; As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Spencer Watson FCA
(Senior Statutory Auditor)
For and on behalf of
Buckley Watson Limited
Chartered accountants & statutory auditor
57a Broadway
Leigh-on-Sea
Essex
SS9 1PE
29 September 2023
Boleyn Recovery & Fleet Services Limited
Statement of Comprehensive Income
Year ended 31 March 2023
2023
2022
Note
£
£
Turnover
4
4,747,142
4,491,014
Cost of sales
3,774,533
3,568,416
------------
------------
Gross profit
972,609
922,598
Administrative expenses
1,404,000
1,280,518
Other operating income
306,135
288,771
------------
------------
Operating loss
5
( 125,256)
( 69,149)
Other interest receivable and similar income
9
5,205
11,546
Interest payable and similar expenses
10
160,359
59,742
------------
------------
Loss before taxation
( 280,410)
( 117,345)
Tax on loss
11
58,111
181,330
---------
---------
Loss for the financial year
( 338,521)
( 298,675)
---------
---------
Revaluation of tangible assets
273,000
1,462,000
---------
------------
Total comprehensive income for the year
( 65,521)
1,163,325
---------
------------
All the activities of the company are from continuing operations.
Boleyn Recovery & Fleet Services Limited
Statement of Financial Position
31 March 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
12
8,263,648
5,738,092
Investments
13
10,000
10,000
------------
------------
8,273,648
5,748,092
Current assets
Stocks
14
20,000
17,600
Debtors
15
1,205,161
1,226,536
Cash at bank and in hand
500
32,705
------------
------------
1,225,661
1,276,841
Creditors: amounts falling due within one year
17
2,018,635
1,652,767
------------
------------
Net current liabilities
792,974
375,926
------------
------------
Total assets less current liabilities
7,480,674
5,372,166
Creditors: amounts falling due after more than one year
18
3,368,037
1,331,764
Provisions
Taxation including deferred tax
20
859,510
721,754
------------
------------
Net assets
3,253,127
3,318,648
------------
------------
Capital and reserves
Called up share capital
24
100
100
Revaluation reserve
25
3,716,847
3,443,847
Profit and loss account
25
( 463,820)
( 125,299)
------------
------------
Shareholders funds
3,253,127
3,318,648
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 29 September 2023 , and are signed on behalf of the board by:
Stephen Smith
Director
Company registration number: 04348405
Boleyn Recovery & Fleet Services Limited
Statement of Changes in Equity
Year ended 31 March 2023
Called up share capital
Revaluation reserve
Profit and loss account
Total
Note
£
£
£
£
At 1 April 2021
100
1,981,847
173,376
2,155,323
Loss for the year
( 298,675)
( 298,675)
Other comprehensive income for the year:
Revaluation of tangible assets
12
1,462,000
1,462,000
----
------------
---------
------------
Total comprehensive income for the year
1,462,000
( 298,675)
1,163,325
At 31 March 2022
100
3,443,847
( 125,299)
3,318,648
Loss for the year
( 338,521)
( 338,521)
Other comprehensive income for the year:
Revaluation of tangible assets
12
273,000
273,000
----
------------
---------
------------
Total comprehensive income for the year
273,000
( 338,521)
( 65,521)
----
------------
---------
------------
At 31 March 2023
100
3,716,847
( 463,820)
3,253,127
----
------------
---------
------------
Boleyn Recovery & Fleet Services Limited
Statement of Cash Flows
Year ended 31 March 2023
2023
2022
Note
£
£
Cash flows from operating activities
Loss for the financial year
( 338,521)
( 298,675)
Adjustments for:
Depreciation of tangible assets
184,323
170,001
Government grant income
( 41,729)
Other interest receivable and similar income
( 5,205)
( 11,546)
Interest payable and similar expenses
160,359
59,742
Loss on disposal of tangible assets
24,409
1,327
Tax on loss
58,111
181,330
Accrued expenses
1,000
Changes in:
Stocks
( 2,400)
( 900)
Trade and other debtors
21,375
( 250,408)
Trade and other creditors
356,563
( 88,352)
---------
---------
Cash generated from operations
459,014
( 278,210)
Interest paid
( 160,359)
( 59,742)
Interest received
5,205
11,546
Tax paid
( 8,580)
---------
---------
Net cash from/(used in) operating activities
303,860
( 334,986)
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 2,642,437)
( 445,408)
Proceeds from sale of tangible assets
181,149
661,999
------------
---------
Net cash (used in)/from investing activities
( 2,461,288)
216,591
------------
---------
Cash flows from financing activities
Proceeds from borrowings
1,776,087
161,183
Proceeds from loans from participating interests
39,085
Government grant income
41,729
Payments of finance lease liabilities
182,032
106,938
------------
---------
Net cash from financing activities
1,997,204
309,850
------------
---------
Net (decrease)/increase in cash and cash equivalents
( 160,224)
191,455
Cash and cash equivalents at beginning of year
32,705
(158,750)
---------
---------
Cash and cash equivalents at end of year
16
( 127,519)
32,705
---------
---------
Boleyn Recovery & Fleet Services Limited
Notes to the Financial Statements
Year ended 31 March 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 57a Broadway, Leigh on Sea, Essex, SS9 1PE.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
50 years straight line
Plant and machinery
-
5 - 20% reducing balance
Fixtures and fittings
-
33% reducing balance
Motor vehicles
-
5 - 13 years straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
1,129,861
1,107,927
Rendering of services
3,617,281
3,383,087
------------
------------
4,747,142
4,491,014
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
184,323
170,001
Loss on disposal of tangible assets
24,409
1,327
Impairment of trade debtors
35,477
(46)
---------
---------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
10,500
10,500
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
47
47
Administrative staff
9
8
Number of directors
2
2
----
----
58
57
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
1,995,615
1,974,928
Social security costs
210,866
201,630
Other pension costs
47,538
45,829
------------
------------
2,254,019
2,222,387
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
147,084
167,661
---------
---------
9. Other interest receivable and similar income
2023
2022
£
£
Interest on loans and receivables
5,205
11,546
-------
--------
10. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
101,572
10,866
Interest on obligations under finance leases and hire purchase contracts
58,787
48,813
Other interest payable and similar charges
63
---------
--------
160,359
59,742
---------
--------
11. Tax on loss
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
79,644
Adjustments in respect of prior periods
( 79,644)
--------
--------
Total current tax
( 79,644)
79,644
--------
--------
Deferred tax:
Origination and reversal of timing differences
137,755
101,686
---------
---------
Tax on loss
58,111
181,330
---------
---------
Reconciliation of tax expense
The tax assessed on the loss on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 19 % (2022: 19 %).
2023
2022
£
£
Loss on ordinary activities before taxation
( 280,410)
( 117,345)
---------
---------
Loss on ordinary activities by rate of tax
( 53,278)
22,296
Adjustment to tax charge in respect of prior periods
(45,021)
( 16,720)
Effect of capital allowances and depreciation
( 29,106)
( 25,388)
Unused tax losses
106,579
( 76,638)
Tax on revaluation of freehold property
78,937
277,780
---------
---------
Tax on loss
58,111
181,330
---------
---------
12. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2022
3,752,000
678,063
60,087
2,084,591
6,574,741
Additions
2,129,962
1,850
510,625
2,642,437
Disposals
( 273,000)
( 273,000)
Revaluations
273,000
273,000
------------
---------
--------
------------
------------
At 31 March 2023
6,154,962
678,063
61,937
2,322,216
9,217,178
------------
---------
--------
------------
------------
Depreciation
At 1 April 2022
363,503
53,119
420,027
836,649
Charge for the year
38,365
27,482
2,243
116,233
184,323
Disposals
( 67,442)
( 67,442)
------------
---------
--------
------------
------------
At 31 March 2023
38,365
390,985
55,362
468,818
953,530
------------
---------
--------
------------
------------
Carrying amount
At 31 March 2023
6,116,597
287,078
6,575
1,853,398
8,263,648
------------
---------
--------
------------
------------
At 31 March 2022
3,752,000
314,560
6,968
1,664,564
5,738,092
------------
---------
--------
------------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Motor vehicles
Total
£
£
£
At 31 March 2023
18,486
1,398,974
1,417,460
--------
------------
------------
At 31 March 2022
3,300
1,034,739
1,038,039
--------
------------
------------
13. Investments
Other investments other than loans
£
Cost
At 1 April 2022 and 31 March 2023
10,000
--------
Impairment
At 1 April 2022 and 31 March 2023
--------
Carrying amount
At 31 March 2023
10,000
--------
At 31 March 2022
10,000
--------
14. Stocks
2023
2022
£
£
Raw materials and consumables
20,000
17,600
--------
--------
15. Debtors
2023
2022
£
£
Trade debtors
970,326
849,906
Amounts owed by undertakings in which the company has a participating interest
10,915
Prepayments and accrued income
48,732
37,091
Other debtors
186,103
328,624
------------
------------
1,205,161
1,226,536
------------
------------
16. Cash and cash equivalents
Cash and cash equivalents comprise the following:
2023
2022
£
£
Cash at bank and in hand
500
32,705
Bank overdrafts
( 128,019)
---------
--------
( 127,519)
32,705
---------
--------
17. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
128,019
125,574
Trade creditors
398,011
322,225
Amounts owed to undertakings in which the company has a participating interest
39,085
Accruals and deferred income
52,500
52,500
Corporation tax
79,644
Social security and other taxes
231,073
319,969
Obligations under finance leases and hire purchase contracts
372,775
325,356
Amounts under factoring agreement
643,841
417,471
Other creditors
153,331
10,028
------------
------------
2,018,635
1,652,767
------------
------------
Bank loans and overdrafts are secured by fixed charges over the freehold property. Obligations under finance leases of £372,775 (2022: £325,356) (due less than one year) are secured against the assets to which the finance relates. The invoice discounting facility of £643,841 (2022: £417,471) (maximum balance of £1,000,000) is secured by fixed charges over the freehold property.
18. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
2,500,000
598,339
Obligations under finance leases and hire purchase contracts
868,037
733,425
------------
------------
3,368,037
1,331,764
------------
------------
Included within creditors: amounts falling due after more than one year is an amount of £2,487,094 (2022: £109,485) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
Obligations under finance leases of £868,037 (2022: £733,425) (due more than one year) are secured against the assets to which the finance relates. The company has one bank loan, which is secured against the freehold property, and carries an interest only period at base rate + 4.45% for 36 months. After this period, the repayments will consist of both interest and capital repayments calculated over 264 months.
19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
372,775
325,356
Later than 1 year and not later than 5 years
868,037
733,425
------------
------------
1,240,812
1,058,781
------------
------------
20. Provisions
Deferred tax (note 21)
£
At 1 April 2022
721,754
Additions
137,756
---------
At 31 March 2023
859,510
---------
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 20)
859,510
721,754
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
458,764
372,056
Revaluation of tangible assets
583,963
505,026
Unused tax losses
( 183,217)
( 155,328)
---------
---------
859,510
721,754
---------
---------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 47,538 (2022: £ 45,829 ).
23. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2023
2022
£
£
Recognised in other operating income:
Government grants recognised directly in income
41,729
----
--------
24. Called up share capital
Authorised share capital
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
25. Reserves
Non-distributable reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.
26. Analysis of changes in net debt
At 1 Apr 2022
Cash flows
At 31 Mar 2023
£
£
£
Cash at bank and in hand
32,705
(32,205)
500
Bank overdrafts
(128,019)
(128,019)
Debt due within one year
(450,930)
39,070
(411,860)
Debt due after one year
(1,331,764)
(2,036,273)
(3,368,037)
------------
------------
------------
( 1,749,989)
( 2,157,427)
( 3,907,416)
------------
------------
------------
Boleyn Recovery & Fleet Services Limited
Notes to the Financial Statements (continued)
Year ended 31 March 2023
27. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the directors
Amounts written off
Balance outstanding
£
£
£
£
Michelle Marks
86,041
(86,041)
Stephen Smith
101,393
( 56,987)
44,406
---------
--------
--------
--------
187,434
( 56,987)
(86,041)
44,406
---------
--------
--------
--------
2022
Balance brought forward
Advances/ (credits) to the directors
Amounts written off
Balance outstanding
£
£
£
£
Michelle Marks
82,139
3,902
86,041
Stephen Smith
96,795
4,598
101,393
---------
-------
----
---------
178,934
8,500
187,434
---------
-------
----
---------