Caseware UK (AP4) 2022.0.179 2022.0.179 2022-06-302022-06-302022-06-300002021-07-01falseNo description of principal activity00falsefalse 09496091 2021-07-01 2022-06-30 09496091 2022-06-30 09496091 2020-07-01 2021-06-30 09496091 2021-06-30 09496091 2020-07-01 09496091 1 2021-07-01 2022-06-30 09496091 d:CompanySecretary1 2021-07-01 2022-06-30 09496091 d:Director2 2021-07-01 2022-06-30 09496091 d:Director2 2022-06-30 09496091 d:Director3 2021-07-01 2022-06-30 09496091 d:Director4 2021-07-01 2022-06-30 09496091 d:Director6 2021-07-01 2022-06-30 09496091 d:Director7 2021-07-01 2022-06-30 09496091 d:Director8 2021-07-01 2022-06-30 09496091 d:Director9 2021-07-01 2022-06-30 09496091 d:RegisteredOffice 2021-07-01 2022-06-30 09496091 d:Agent1 2021-07-01 2022-06-30 09496091 c:Buildings 2021-07-01 2022-06-30 09496091 c:PlantMachinery 2021-07-01 2022-06-30 09496091 c:MotorVehicles 2021-07-01 2022-06-30 09496091 c:FurnitureFittings 2021-07-01 2022-06-30 09496091 c:PatentsTrademarksLicencesConcessionsSimilar 2021-07-01 2022-06-30 09496091 c:Goodwill 2021-07-01 2022-06-30 09496091 c:CopyrightsPatentsTrademarksServiceOperatingRights 2021-07-01 2022-06-30 09496091 c:CurrentFinancialInstruments 2022-06-30 09496091 c:CurrentFinancialInstruments 2021-06-30 09496091 c:CurrentFinancialInstruments c:WithinOneYear 2022-06-30 09496091 c:CurrentFinancialInstruments c:WithinOneYear 2021-06-30 09496091 c:Non-currentFinancialInstruments c:AfterOneYear 2022-06-30 09496091 c:Non-currentFinancialInstruments c:AfterOneYear 2021-06-30 09496091 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2022-06-30 09496091 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2021-06-30 09496091 c:RetainedEarningsAccumulatedLosses 2021-07-01 2022-06-30 09496091 c:RetainedEarningsAccumulatedLosses 2022-06-30 09496091 c:RetainedEarningsAccumulatedLosses 2020-07-01 2021-06-30 09496091 c:RetainedEarningsAccumulatedLosses 2021-06-30 09496091 c:RetainedEarningsAccumulatedLosses 2020-07-01 09496091 d:OrdinaryShareClass1 2021-07-01 2022-06-30 09496091 d:OrdinaryShareClass1 2022-06-30 09496091 d:OrdinaryShareClass1 2021-06-30 09496091 d:FRS102 2021-07-01 2022-06-30 09496091 d:Audited 2021-07-01 2022-06-30 09496091 d:FullAccounts 2021-07-01 2022-06-30 09496091 d:PrivateLimitedCompanyLtd 2021-07-01 2022-06-30 09496091 c:Subsidiary1 2021-07-01 2022-06-30 09496091 c:Subsidiary1 1 2021-07-01 2022-06-30 09496091 c:Subsidiary2 2021-07-01 2022-06-30 09496091 c:Subsidiary2 1 2021-07-01 2022-06-30 09496091 c:Subsidiary3 2021-07-01 2022-06-30 09496091 c:Subsidiary3 1 2021-07-01 2022-06-30 09496091 c:HirePurchaseContracts c:WithinOneYear 2022-06-30 09496091 c:HirePurchaseContracts c:WithinOneYear 2021-06-30 09496091 c:HirePurchaseContracts c:BetweenOneFiveYears 2022-06-30 09496091 c:HirePurchaseContracts c:BetweenOneFiveYears 2021-06-30 09496091 c:HirePurchaseContracts c:MoreThanFiveYears 2022-06-30 09496091 c:HirePurchaseContracts c:MoreThanFiveYears 2021-06-30 09496091 d:Consolidated 2022-06-30 09496091 d:ConsolidatedGroupCompanyAccounts 2021-07-01 2022-06-30 09496091 4 2021-07-01 2022-06-30 09496091 6 2021-07-01 2022-06-30 iso4217:GBP xbrli:shares xbrli:pure
Company registration number: 09496091







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2022


ALPHA HOLDCO 1 LIMITED






































img71b0.png                        

 


ALPHA HOLDCO 1 LIMITED
 


 
COMPANY INFORMATION


Directors
A I Cope 
P J Dove 
M R Gallimore 
K V Green 
A R Keasey 




Company secretary
W Cope



Registered number
09496091



Registered office
1a Franks Road
Bardon Hill

Coalville

Leicestershire

LE67 1TT




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Magna House

18-32 London Road

Staines-Upon-Thames

TW18 4BP




Bankers
Barclays Bank Plc
7 High Street

Leicester

LE1 9FS





 


ALPHA HOLDCO 1 LIMITED
 



CONTENTS



Page
Group strategic report
1 - 6
Directors' report
7 - 11
Independent auditors' report
12 - 15
Consolidated statement of comprehensive income
16
Consolidated balance sheet
17
Company balance sheet
18
Consolidated statement of changes in equity
19
Company statement of changes in equity
20
Notes to the financial statements
21 - 44


 


ALPHA HOLDCO 1 LIMITED
 


 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2022

Introduction
 
The directors present the Strategic Report for the year ended 30th June 2022.

Principle activities and business review
 
The principal activities of the Company during the year ended 30th June 2022 was that of a holding company.
The company’s trading subsidiaries and their principal activities are as follows:
Go Plant Limited
A national specialist in operated and self-drive sweeper hire. Go Plant Limited is the UK market leader by fleet size, its national network of depots enables it to provide a consistent level of service to both national and regional customers. The company also provides leasing and fleet management to a portfolio of local authority customers. 
Go Plant Fleet Services Limited
• A specialist vehicle rental business that provides medium to long term rental solutions to private and public sector   customers. The structure of the proposition combines an owned fleet of c180 specialist vehicles (predominantly RCV’s, Gritters and Tippers) with a broker offering via third party providers offering our clients access to thousands of vehicles on national scale  as part of a true ‘one stop solution’.
• A leading provider of specialist vehicle contract hire and workshop inclusive fleet management to a number of local authorities around the UK. The company is included on all the key public sector framework agreements so is well positioned to selectively target new contracts and the renewal of existing contracts at the point they naturally expire. A contract typical duration is 7-10 years and provides fixed revenue streams. 
• With and without maintenance contract hire for public and private sector customers seeking either purely a funding solution or a fleet funding and maintained proposition either through our own workshop or third party manged workshops.
In the year to 30 June 2022 the Group achieved turnover of £67,485,000 (2021: £70,461,000) and a loss before tax of £7,711,000 (2021: loss of £3,075,000).  At June 2022 the net liabilities of the Group were £30,840,000 (2021: net liabilities of £23,687,000).
During the course of 2022 the business saw significant change.
A new operating and financial system was implemented in the Go Plant Limited business, meaning the group is now operating from a single system for financial reporting and fleet management. The introduction of the new system initially led to a number of operational challenges as users adapted to new ways of working, but as the year came to a close the benefits of the implementation were starting to be seen, through improved financial and operating reporting capability and quality of data.
The business commenced a restructuring programme to optimise cost and revenue synergies together with environmental compliance and engineering best practice across the operating companies in the Group. The senior leadership structure has changed to reflect this. 
During the period, with in the Fleet Services operation management focussed on driving higher quality revenue, through profitable contracts and the growth of the rental business, this led to a reduction in total revenue as low margin contracts were exited in a controlled and amicable manner.  
Over and above the system migration and restructuring management have focused on a number of key strategic business improvements to address legacy issues and improve profitability. These are summarised below and are work in progress:
• Offering market leading renumeration packages to our people, in 2022 this included driver pay restructuring to attract and retain high quality driver operatives. The business are proud to pay above national minimum living wage for all employees. 


• Undertaking a substantial driver rationalisation programme, based around regional productivity management, which is critical to a sustained improvement in profitability. 

• Addressing market pricing in light of HGV driver shortages and changes in red diesel duty driving inflation in the sector, the business has implemented several price changes in the year and has implemented a process for inflationary price
Page 1

 


ALPHA HOLDCO 1 LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022

reviews going forwards.

• Delivering a reduced cost base to the business through overhead cost restructuring to ensure a fit for purpose central services operation.
• Resolving historic challenges around aged debt recovery through enhancements in electronic documentation, process automation and system improvements 
• Optimisation of the current fleet removing, via a controlled disposal programme, a large number of non-operational legacy vehicles to leave a live operational average aged fleet profile of around 5 years. Our ultimate ambition, on a phased basis, to operate a younger, more efficient fleet and the business will be taking delivery of a number of new assets over the course of financial year 2023 in order to start to deliver on this ambition; 
• Reviewing the waste management options nationally to ensure compliant tipping is optimally managed in line with our driver routing
• Implementation of a new telematics solution across the fleet to deliver improvements in driver safety, routing and insightful reporting
• Execution of a cost risk management agreement to enable effective fuel hedging 

Principal risks and uncertainties
 
Due to the nature of the business and the wider economic backdrop the following risks are noted:
The business relies on third party funding of its asset purchases in both its two trading subsidiaries and the continued support of its shareholder regarding its business financing.
Financial risk management
The directors do not believe the Group is exposed to significant price risk, currency risk or credit risk given the nature of the business.
Liquidity and interest rate risk
The Group have loans from Endless LLP and the Group’s directors and secretary. 
These loans are at a fixed interest rate and repayable at par on the first Business Day falling after 1 July 2023. However this has been extended by legal agreement to 3 July 2025. The interest payments are supported by the earnings from the company’s subsidiaries. The company expects these earnings to be sufficient to support repayment / refinancing of the capital before maturity.

Financial key performance indicators
 
In the year to 30 June 2022 the Group achieved turnover of £67,485,000 (2021: £70,461,000) and a loss before tax of £7,711,000 (2021: loss of of £3,075,000).  At June 2022 the net liabilities of the Group were £30,037,000 (2021: net liabilities of £23,688,000).
Key performance indicators (‘KPIs’):
                                             
 2022                      2021                    2020
Revenue £'000                   67,485                  70,461                  81,845
EBITDA £'000                    13,357                  19,536                  20,627
Gross margin %                   20.0                        25.0                      25.1
Note: Furlough grants received for drivers in 2021 of £0.66m (2020: £1.85m) has been included in EBITDA as the associated drivers were not contributing to revenue.

Page 2

 


ALPHA HOLDCO 1 LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022

Group outlook
 
The sectors in which the Group operates offer exciting revenue and margin growth prospects. The company continues to follow its right sizing transformation to a simplified and optimised operating model leaving it well positioned for future sustainable profitable growth. 
Operated Sweeper service provision – Whilst revenues have remained stable as driver and vehicle volumes have reduced year on year the business has seen consistent trends in improved revenue per driver and productivity, this, combined with the introduction of new vehicles on fleet over the course of 2023 puts the business in a strong position to drive growth and  profitability. Enhancements in electronic documentation will enable the business to service customers in a more efficient and cost-effective manner, whilst improving customer experience and delivering market leading environmental governance solutions, which will facilitate our aspirations to drive increased existing customer share of wallet and overall market share in our core regions. 
The Group is impacted by macroeconomic conditions, such as inflation and will seek to pass through these costs to customers where contracts allow. Lags in the passthrough in a period of significant inflationary pressure have been seen through the course of the financial year ending June 2023, but improvements in price change process and customer communication will limit the impact going forwards.
Specialist Vehicle Rental – A profitable specialised rental fleet, with a low level of growth planned for the 2023 financial year, whilst still relatively small it is benefitting from improved national brand reach and awareness. The fleet is predominantly weighted in content to service sustainably ‘in demand’ waste collection services customers across public and private sectors and has a clear growth plan to grow through developing its asset classes around diversified but complimentary waste collection services. 
Contract Hire & Leasing – We are focussing on optimising our delivery of existing contracts. We are housed on all the key public sector framework agreements and have a large, diversified customer base across the Group, many of whom see a vehicle funding solution with or without maintenance. 
Contracts are disproportionately hit by significant increases in inflation, due to the capped price increases present in most long term contracts. The business has reduced the impact of this through continued strong profit on disposal of assets as new vehicle lead times continue to be extended, increasing the value of used assets.
Workshop Management – Based upon our market experience we are currently evaluating how we further optimize this local authority space.
The business is making good progress with its improvement initiatives in the current year being:

Continuation of the fleet rationalisation programme to dispose of a number of old legacy non-operational sweepers in the fleet to reduce the overall aged fleet profile and bringing in 40 brand new sweepers in the operated hire;
 
Leveraging a data led business change program following the migration off legacy systems onto a new ERP system in November 2021;
 
Delivering improved working capital from enhancements to process and tools associated with debtor and creditor management;
 
Building the Group Fleet Management and Compliance structure to increase rigour around our national workshop infrastructure and enable the chassis maintenance to be brought back in house where this had been outsourced to reduce the ‘vehicle off road’ (VOR) volume and cost;
 
Streamlined, customer experience focussed regional operations;
 
Reviewing in house waste management capability to drive efficiencies cost of operations and remove reliance on third party providers

The business has adequate funding facilities to meet its operational requirements and organic growth plans and regularly monitors its cash position.
 
Page 3

 


ALPHA HOLDCO 1 LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022

Streamlined Energy and Carbon Reporting (SECR)
As a Group we are committed where possible to reduce the level of carbon emissions. We are the first in the country to trial Gas to Liquid (GTL) sweepers and we continue to explore the use of alternative fuels. However, the uptake of this and other more efficient vehicles will depend on technological advances and economic factors. In all our depots we look to make energy savings were possible, in addition we have just moved to a new Head Office and the building is highly energy efficient with sensor controlled lighting and climate control technology. Our report is as follows: -
                                                                                                                                                  
2022                          2021
UK Energy Use KWh '000                                                                                                       69,300                      71,179
Associated Greenhouse gas emissions Tonnes CO2 equivalent ('000)                                 19,630                       17,254        
Intensity ratio emissions per operator ' 000                                                                              71.9                           58.3
UK energy use covers the operated hire activities for the Group. The intensity ratio has been changed to number of operator drivers
Associated greenhouse gases have been calculated by obtaining energy usage – gas, electricity and litres of fuel used by the business and then using an online calculator to convert (SECR.co.uk)
Section 172 statement
The revised UK corporate Governance Code (2018 Code) was published in July 2018 and applies to accounting periods beginning on or after 1 January 2019. The Companies Regulation 2019 requires Directors to explain how they considered the interests of key stakeholders and the broader matters set out in Section172(1) (a) to (f) of the Companies Act 2006 (‘S172’) when performing their duty to promote the success of the Company under S172.  This includes considering the interest of other stakeholders which will have an impact on the long-term success of the company.  This S172 statement explains how the Alpha Holdco 1 Limited Directors have:
• Engaged with employees, suppliers, customers, and others.
• Had regard to employee interests.
• Had regard to the need to foster the Group’s business relationships with customers.
• Considered the effect of the above in the decisions taken by the Group during the financial year.
This Section 172 statement focuses on strategic matters of importance to Alpha Holdco 1 Limited and the level of information disclosed is consistent with the size and complexity of the business.
General Confirmation of Directors Duties
The Board of Alpha Holdco 1 Limited has a clear framework for determining the matters within its remit.  The board operates under clear referential guidelines from that determines the matters within the remit. 
Clear financial and strategic thresholds are determined to identify matters which require Board consideration and approval.
A clear delegation of authority sets out where the delegation and approval process can be applied in the wider business. 
When making decisions, each director ensures that he/she acts in the way that he/she considers would most likely promote the Group’s success for the benefit of its business as a whole, and in doing so have regards (among other matters) to:

Page 4

 


ALPHA HOLDCO 1 LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022

S172(1) (a) ‘The likely consequences of any decision in the long term’
The directors understand the business and the changing environment and industry in which we operate, the economic impact of changes impacted by Brexit and the need for sustainable solutions to the building industry.
The board operates to deliver in the long term aligned to this strategic direction, generate long term value whilst recognising that any long-term success is dependent on business stakeholders
The directors recognise that not all decisions may align with all stakeholder groups interest given the nature of the change in the business and the wider economic challenges. Given the strategic direction and the industry requirements in which we operate the directors have taken decisions they believe support the strategic direction of Alpha Holdco 1 Limited.
S172(1) (b) ‘The interests of the company’s employees’
The directors recognise that Alpha Holdco 1 Limited’s employees are fundamental and key to the success of the business. As a service provider the success of Alpha Holdco 1 Limited is dependent on attracting, retaining, and motivating employees.  From health and safety, workplace environment, pay and benefits, the directors factor the implications of decisions on employees where relevant and feasible.  Being a responsible employer of choice for our workforce is central to the decision-making process.
S172 (1) (c) ‘The need to foster the company’s business relationships with suppliers, customers and others’
Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers, and tyre manufacturers. Alpha Holdco 1 Limited actively promotes building relationships with all our key partners.
The business regularly assesses levels of confidence from our customer base and actively seeks feedback on performance.  Alpha Holdco 1 Limited is engaging with our suppliers on investment decisions and solution proposals to help to drive the Group forward.
Any strategic decision is considered in the context of the impact of our external stakeholders and early involvement and communication is actively practised.  
The directors receive regular updates and information on a variety of topics in the day to day business but also on strategic projects to inform how these stakeholders have been engaged and the impact assessed.
S172(1) (d) ‘The impact of the company’s operations on the community and the environment’
The board of Alpha Holdco 1 Limited ensures that any environmental impact is considered in all decision-making processes. The opportunity to maximise carbon offset is sought and is a key part of the decision-making process. 
The directors actively promote supporting both the local communities in the UK and on a national basis.  The directors have regular updates on the activities ongoing in the business and have been engaged in how the business is supporting the UK in the current Covid-19 pandemic.  The business worked to ensure that it continued to run throughout the pandemic lockdown and support the UK building industry.
S172(1) (e) ‘The desirability of the company maintaining a reputation for high standards of business conduct’
Alpha Holdco 1 Limited works under clear frameworks which are approved by the board including Ethics and Compliance manuals throughout the business.  The board works with the wider Alpha Holdco 1 Limited Group to ensure the standards throughout the business are maintained.  The board is informed on a regular basis and monitors compliance on both a monthly and annual basis along with monitoring against the relevant government standards.
S172(1) (f) ‘The need to act fairly as between members of the company’
After weighing up all relevant factors, the Directors consider which course of action best enables delivery of our strategy through the long-term, taking into consideration the impact on stakeholders.  In doing so, the Directors act fairly as between the company’s members 

Page 5

 


ALPHA HOLDCO 1 LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022


This report was approved by the board and signed on its behalf.


K V Green
Director
Date: 27 October 2023

Page 6

 


ALPHA HOLDCO 1 LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2022

The directors present their report and the financial statements for the year ended 30 June 2022.

Results and dividends

The loss for the year, after taxation, amounted to £7,153 thousand (2021 - loss £3,149 thousand).

No dividends were paid during the year (2021: £Nil). 

Directors

The directors who held office during the year and up to the date of the signing of these financial statements were as follows:

J B Gill (resigned 15 November 2022)
A I Cope 
P J Dove (appointed 2 May 2023)
M R Gallimore 
K V Green 
G K Hale  (resigned 24 February 2022)
A R Keasey 
M Jubb (resigned 7 September 2023)
P R Quelch  (resigned 1 January 2022)
Directors' liability insurance
The Group maintains liability insurance for the directors and officers of the Group. The directors and officers have also been granted a qualifying third-party provision under section 234 of the Companies Act 2006. Neither the Group's indemnity nor insurance provides cover in the event that a director or officer is proved to have acted fraudulently or dishonestly.
Details of Financial Risk Management and the Future Outlook are included in the Strategic Report.
Re-election of directors
The directors offer themselves for election at the Annual General Meeting. The Board has considered the requirements of the Combined Code in respect of these matters and believes that these members continue to be effective and to demonstrate their commitment to their roles, the Board and the Group.
Employee involvement
The Group places considerable value on the involvement of its employees and encourages the development of employee involvement through formal and informal meetings. It is the Group's policy to ensure that all employees are made aware of significant matters ·affecting the performance of the Group through the operation of information bulletins, informal meetings, team briefings, internal newsletters and the Group's website and intranet.

Page 7

 


ALPHA HOLDCO 1 LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022

Political contributions

No political donations were made during the year.
Going concern
The financial statements have been prepared on a going concern basis which assumes that the company and Group is able to meet its obligations as they fall due for a period of not less than 12 months from the date of approval of these financial statements.
Detailed cash flow forecasts are prepared and regularly reviewed by the Board to assess the Group and company’s financial position. The business is forecast to remain cash generative and to have adequate resources to meet its future obligations.
A full ‘base case’ cash flow forecast has been prepared for 12 months following signing of these financial statements based on current business forecast. Based upon the forecast the directors have a reasonable expectation that the company and Group will have adequate resources to continue operating for the foreseeable future. On these grounds the Board has continued to adopt the going concern basis for the preparation of the financial statements.

Principal risks and uncertainties

Financial risk management
The Group uses various financial instruments to manage the financial risk in the Group. These include loans, cash, trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group’s operations.

Interest rate risk
The Group finances its operations through a mixture of retained profits, hire purchase and finance lease agreements and bank borrowings. The Group’s exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.

Liquidity risk
The Group seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet its foreseeable needs and to invest cash assets safely and profitably.  The directors review the Group’s cash projections on a regular basis to ensure the business has adequate liquidity and working capital.

Credit risk
In order to manage credit risk, the operational management team set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history. The Group has also insured a proportion of its debts having regard to the concentration of debts with the construction sector.

Page 8

 


ALPHA HOLDCO 1 LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022

Health and safety of employees

It is Group policy to fulfil its duties under the Health and Safety at Work Act 1974 and all other associated acts and applicable legal obligations. In order to achieve the standards required, line management will provide suitable and sufficient resources and properly trained supervision to ensure all work places can carry out their activities in a safe manner.It is the responsibility of the Group's management at all levels to be conversant with the contents of the policy and to plan work such that foreseeable risks are identified and reduced to an acceptable level through the implementation of risk assessments. All employees must take care of their own health and safety and actively participate and co-operate with the Group to enable the Group to discharge its statutory responsibilities and to fulfil its desire for continual improvement in all safety, health and welfare matters.

The Bribery Act 2010
The Bribery Act 2010 came into effect on 1 July 2011. The objectives and provisions of the Act accord with the values the Group applies in all its business dealings and which are reflected in its policies already in place.
As part of its compliance with the provisions of the Bribery Act the Group's policies and procedures were reviewed and appropriate information and training was provided to staff, with a view to ensuring ongoing compliance with the standards of the Act.

Corporate sustainability policy

The Group's business impacts on the lives of everyone who lives in, or uses, the communities it serves - now and in the future. Therefore, its corporate responsibility is to deliver social and environmental sustainability in everything it does. For the Group, corporate sustainability is much more than just a set of policies. It is delivered on the ground, every day through its operational teams working in partnership with its customers, supply chain and local communities. The Group creates value in five key areas, closely aligned to its stakeholders' social and environmental sustainability agendas. These are: Climate Change (carbon reduction); Sustainable Resources (using resources responsibly); Community Investment (changing behaviours and helping to create a better society); Waste Minimisation (addressing the need to reduce waste); and Biodiversity and Ecosystems· (developing a holistic approach to environmental management).
All Group activities are carried out in a way that manages environmental impact, fulfils opportunities to enhance the environment, prevents pollution, minimises waste, controls noise, uses materials and resources efficiently, and protects wildlife.
The Group complies with environmental legislation and environmental codes of practice applicable to its industry.

Future developments

A review of the business and an indication of likely future developments are included in the Strategic Report.

Engagement with employees

The Group places considerable value on the involvement of its employees and encourages the development of employee involvement through formal and informal meetings. It is the Group's policy to ensure that all employees are made aware of significant matters affecting the performance of the Group through the operation of information bulletins, informal meetings, team briefings, internal newsletters and the Group's website and intranet.
Employment policy
The Group is committed to employment policies, which follow best practice, based on equal opportunities for all employees, irrespective of sex, race, colour, disability or marital status.  The Group and its trading companies give full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and abilities. Appropriate arrangements are made for the continued employment and training, career development and promotion of disabled persons employed by the Group.  In the event of an employee becoming disabled every effort is made to ensure that their employment with the Group continues, that appropriate training is arranged and any reasonable adjustments are made to their working environment. 
The Group, within the bounds of commercial confidentiality, has continued its practice of keeping employees informed of matters affecting them as employees and the financial and economic factors affecting the performance of the Group.

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ALPHA HOLDCO 1 LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

On 6 December 2022, Endless LLP, as agent and security trustee for and on behalf of the lenders Endless Fund IV A LP and Endless Fund IV B LP, issued a revolving credit facility of £4,000,000 at 12.5% over Bank of England Base Rate to Go Plant Fleet Services Ltd to use as required. 
On 3 September 2023, this facility has been amended to change the maturity date to 1 April 2025. Endless LLP have confirmed that they will not be requesting or demanding payment of the interest relating to the revolving credit facility put in place on 6 December 2022 and expiring April 2025 unless long term projections show there is sufficient headroom to do so and all parties to the facility agree. 
On 19 May 2023, the directors loan and investor loan notes repayment date was amended to 3 July 2025.

Page 10

 


ALPHA HOLDCO 1 LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022


Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





K V Green
Director

Date: 27 October 2023

Page 11

 


ALPHA HOLDCO 1 LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALPHA HOLDCO 1 LIMITED

Qualified Opinion


We have audited the financial statements of Alpha Holdco 1 Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2022, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report,
the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 June 2022 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for qualified opinion


In respect of interest payable and similar expenses, due to implementation of a new operating and financial system in the Group as disclosed in note 11, we were unable to satisfy ourselves regarding the accuracy of the finance lease and hire purchase contracts interest charge in the year of £1,224,000 and the amount, if any, of this charge that should have been reflected in prior periods financial statements. Where an element of the finance lease and hire purchase contracts interest charge should have been recognised in prior periods this would have a consequential impact on the related finance lease and  hire purchase contracts creditors included in the balance sheet as at 30 June 2021 and reserves at 1 July 2020. 
Consequently, we were unable to determine whether any adjustment to the finance lease and hire purchases contracts interest charge in the year was necessary and whether there would be a consequential impact on the interest charge in prior periods and the finance lease and hire purchase contracts creditors included in the balance sheet at 30 June 2021   and 30 June 2020. In addition, were any adjustment to the finance lease and hire purchase contracts interest charge to be required the Strategic Report would also need to be amended.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 qualified 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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 12

 


ALPHA HOLDCO 1 LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALPHA HOLDCO 1 LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, except for the possible effect of the matter described in the basis for qualified opinion section, based on the work undertaken in the course of the audit:


the information given in the Group 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 Group 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
 

Except for the matter described in the basis for qualified opinion section of or report, in the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
Arising solely from the limitation on the scope of our work relating to the finance lease and hire purchase contracts expense, referred to above:
 
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and,
we were unable to determine whether adequate accounting records have been kept.


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:


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



Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 10, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease
Page 13

 


ALPHA HOLDCO 1 LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALPHA HOLDCO 1 LIMITED (CONTINUED)

operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group 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:

The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law and tax legislation. 

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. We understood how the Group is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and

°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

°Posting of unusual journals and complex transactions; 
°Revenue recognition; and, 
°Risk of fictitious employees.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 14

 


ALPHA HOLDCO 1 LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALPHA HOLDCO 1 LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





Andrew Cook FCA (Senior statutory auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Magna House
18-32 London Road
Staines-Upon-Thames
TW18 4BP

27 October 2023
Page 15

 


ALPHA HOLDCO 1 LIMITED
 


 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022

2022
2021
Note
£000
£000

  

Turnover
 5 
67,485
70,461

Cost of sales
  
(53,986)
(52,920)

Gross profit
  
13,499
17,541

Exceptional costs
 13
(196)
(84)

Administrative expenses
  
(15,914)
(15,393)

Other operating income
 6 
-
658

Operating (loss)/profit
  
(2,611)
2,722

Interest payable and similar expenses
 11 
(5,100)
(5,797)

Loss before tax
  
(7,711)
(3,075)

Tax on loss
 12 
558
(74)

Loss for the financial year
  
(7,153)
(3,149)

Other comprehensive income for the year
  

Movement of deferred tax relating to pension surplus
  
-
62

Other comprehensive income for the year
  
-
62

  

Total comprehensive income for the year
  
(7,153)
(3,087)

Profit for the year attributable to:
  

Owners of the parent company
  
7,153
3,149

  
7,153
3,149

Total comprehensive income attributable to:
  

The notes on pages 21 to 44 form part of these financial statements.

Page 16

 


ALPHA HOLDCO 1 LIMITED
REGISTERED NUMBER:09496091



CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2022

2022
2021
Note
£000
£000

Fixed assets
  

Intangible assets
 14 
5,598
7,701

Tangible assets
 15 
62,265
72,256

  
67,863
79,957

Current assets
  

Stocks
 17 
55
179

Debtors: amounts falling due within one year
 18 
20,514
16,778

Cash at bank and in hand
  
518
481

  
21,087
17,438

Creditors: amounts falling due within one year
 19 
(42,312)
(39,054)

Net current liabilities
  
 
 
(21,225)
 
 
(21,616)

Total assets less current liabilities
  
46,638
58,341

Creditors: amounts falling due after more than one year
  
(76,994)
(80,781)

Provisions for liabilities
  

Deferred tax
 24 
-
(556)

Other provisions
 25 
(484)
(691)

  
 
 
(484)
 
 
(1,247)

Net liabilities
  
(30,840)
(23,687)


Capital and reserves
  

Profit and loss account
  
(30,840)
(23,687)

  
(30,840)
(23,687)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




K V Green
Director

Date: 27 October 2023

The notes on pages 21 to 44 form part of these financial statements.

Page 17

 


ALPHA HOLDCO 1 LIMITED
REGISTERED NUMBER:09496091



COMPANY BALANCE SHEET
AS AT 30 JUNE 2022

2022
2021
Note
£000
£000

Fixed assets
  

Investments
 16 
41,140
41,140

  
41,140
41,140

Current assets
  

Debtors: amounts falling due within one year
 18 
17
17

  
17
17

Creditors: amounts falling due within one year
 19 
(15,736)
(15,736)

Net current liabilities
  
 
 
(15,719)
 
 
(15,719)

Total assets less current liabilities
  
25,421
25,421

  

Creditors: amounts falling due after more than one year
  
(45,153)
(41,671)

  

Net liabilities
  
(19,732)
(16,250)


Capital and reserves
  

Profit and loss account brought forward
  
(16,250)
(13,075)

Loss for the year
  
(3,482)
(3,175)

Profit and loss account carried forward
  
(19,732)
(16,250)

  
(19,732)
(16,250)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


K V Green
Director

Date: 27 October 2023

The notes on pages 21 to 44 form part of these financial statements.

Page 18

 


ALPHA HOLDCO 1 LIMITED
 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022


Profit and loss account
Equity attributable to owners of parent Company
Total equity

£000
£000
£000


At 1 July 2020
(20,600)
(20,600)
(20,600)


Comprehensive income for the year

Loss for the year

(3,149)
(3,149)
(3,149)

Actuarial gains on pension scheme
62
62
62
Total comprehensive income for the year
(3,087)
(3,087)
(3,087)



At 1 July 2021
(23,687)
(23,687)
(23,687)


Comprehensive income for the year

Loss for the year
(7,153)
(7,153)
(7,153)
Total comprehensive income for the year
(7,153)
(7,153)
(7,153)


At 30 June 2022
(30,840)
(30,840)
(30,840)


The notes on pages 21 to 44 form part of these financial statements.

Page 19

 


ALPHA HOLDCO 1 LIMITED
 



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022


Profit and loss account
Total equity

£000
£000


At 1 July 2020
(13,075)
(13,075)


Comprehensive income for the year

Loss for the year
(3,175)
(3,175)
Total comprehensive income for the year
(3,175)
(3,175)



At 1 July 2021
(16,250)
(16,250)


Comprehensive income for the year

Loss for the year
(3,482)
(3,482)
Total comprehensive income for the year
(3,482)
(3,482)


At 30 June 2022
(19,732)
(19,732)


The notes on pages 21 to 44 form part of these financial statements.

Page 20

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

1.


General information

Alpha Holdco 1 Limited ("the company") is a holding company for its subsidiaries.
The company is a private company limited by shares and is incorporated in England and Wales. The address of the registered office is 1A Franks Road, Bardon Hill, Coalville, Leicestershire, LE67 1TT.
The financial statements are prepared in pound sterling (£), rounded to the nearest thousand.


2.


Statement of compliance

The financial statements of Alpha Holdco 1 Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (“FRS102”) and the Companies Act 2006.
The company is a wholly-owned subsidiary of Alpha Topco 1 Limited and is included in the consolidated financial statements of Alpha Topco 1 Limited which are available.

3.Accounting policies

 
3.1

Basis of preparation of financial statements

These financial statements have been prepared on a going concern basis, under the historical cost convention.
The preparation of financial statements requires the use of certain critical accounting estimates.  It also requires management to exercise its judgement in the process of applying the Group and Company accounting policies.  The areas involving a higher degree of judgement or complexity or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4. 

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

 
3.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Under the Companies Act 2006 section 408 the company is exempt from the preparation of the parent company Statement of Comprehensive Income.

Page 21

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

3.Accounting policies (continued)

 
3.3

Going concern

The financial statements have been prepared on a going concern basis which assumes that the Group and Company are able to meet its obligations as they fall due for a period of not less than 12 months from the date of approval of these financial statements.
The directors have considered the appropriateness of the going concern assumption applied to the Group and Company. A full ‘base case’ cash flow forecast has been prepared for 12 months following signing of these financial statements based on current business forecasts. The directors have considered this cash flow forecast alongside the funding facilities available to the Group, which include invoice discounting, plant and machinery loan facility, lending under finance lease arrangements, shareholder loans and revolving cash facility which reflects the support provided by Endless LLP as evidenced in the post balance sheet event.
Having assessed the Group and Company’s liquidity outlook on the basis of the detailed forecasting process described above the Board has a reasonable expectation that the group and company will be able to operate within the facilities available to it for at least 12 months from the date of approval of these financial statements.

  
3.4

Related party transactions

The Group and Company discloses transactions with related parties which are not wholly owned within the same group.  It does not disclose transactions with members of the same group that are wholly owned. 

  
3.5

Statement of cash flows

The company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a statement of cash flows, on the basis that it is a qualifying entity and its ultimate parent company, Alpha Topco 1 Limited includes the company’s cash flows in its own consolidated financial statements.

 
3.6

Turnover

The turnover shown in the profit and loss account represents amounts receivable for the provision of goods and services supplied to customers during the year, exclusive of Value Added Tax. 
Turnover arising from the supply of vehicles, plant and maintenance services is recognised once the supply of vehicles or maintenance services has been provided to the customer.

 
3.7

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight line basis over the lease term.

 
3.8

Finance costs

Finance costs are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
3.9

Borrowing costs

All borrowing costs are amortised over the duration of the loan and recognised in the profit and loss.

Page 22

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

3.Accounting policies (continued)

 
3.10

Retirement benefits

The Group operates and contributes to a number of defined contribution pension schemes, the assets of which are held separately from those of the Group and are invested in managed funds.
In respect of the defined contribution pension scheme, the contributions paid by the Group and the employees are invested within the individual funds in the month following the month of deduction. The employer contribution rates are determined by reference to an age, service or grade related scale or are at a fixed, level percentage. The amount contributed by the company are charged to the income statement as the contributions fall due. Certain contracts require that employees transfer with protected pension rights and the company are responsible for the pension liability that exists.

 
3.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
3.12

Exceptional items

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

Page 23

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

3.Accounting policies (continued)

 
3.13

Intangible assets

Goodwill and Brand
Goodwill has been recognised on acquisition of subsidiary companies and on acquisition of trade and assets.
Customer relationships
The customer relationships were acquired through business combinations.
Sotware
Software costs associated with maintaining software programmes are reconginsed as an expense as incurred.
Development costs that are directly attributable to the design and testing of identifable and unique software products are recognised as intangible assets.
Directly attributable costs that are capitalised as part of the software include employee costs and an appropriate portion of relevant overheads..
Capitalised development costs are recorded as intabgible assets and amortised from the point at which the asset is ready for use over a period of between 5 and 7 years.
Amortisation methods and useful lives
The group amortises intangible assets with a limited useful life using the straight-line method.

 The estimated useful lives range as follows:

Customer relationships
-
8 years
Goodwill and Brand
-
8 - 10 years
Software
-
5 - 7 years

Page 24

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

3.Accounting policies (continued)

 
3.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. 

Property, plant and equipment are stated at historic cost to the Group, being its purchase cost together with any incidental expenses of acquisition.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2-5% straight line
Plant and machinery
-
7-33% straight line
Fleet vehicles
-
10-33% straight line
Fixtures and fittings
-
10-50% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
3.15

Hire purchase and finance lease agreements

Assets held under hire purchase and finance lease agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a sum of digits basis.

 
3.16

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
3.17

Investments

Investments in subsidiary undertakings are stated at cost less any appropriate provision for impairment.

 
3.18

Stocks

Stocks are stated at the lower of cost and net realiseable value, after making due allowance for obsolete and slow moving items. Stocks comprise of work in progress for projects undertaken for customers where payment is received on completion. Cost comprises direct materials and where applicable, direct labour costs that have been incurred in bringing the stocks to their present location and condition. The cost of purchase is determined on a first in first out basis.

Page 25

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

3.Accounting policies (continued)

 
3.19

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

The company has chosen to adopt section 11 and section 12 of FRS 102 in respect of financial instruments. 
The Company classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, and held-to-maturity. The classification depends on the nature of the asset and the purpose for which the assets were acquired. Management determines the classification of its financial assets at initial recognition.
(i) Financial assets, at fair value through profit or loss these are financial assets held for trading. A financial asset is classified as held for trading if it is acquired principally for the purpose of selling in the short term.
(ii) Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are presented as current assets, except for those expected to be realised later than 12 months after the balance sheet date which are presented as fixed assets. Loans and receivables are presented as “trade and other receivables” and “cash and cash equivalents” on the balance sheet.
(iii) Financial assets, held-to-maturity are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group’s management has the positive intention and ability to hold to maturity.
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 entity after deducting all of its financial liabilities.
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument those financial instruments are classed as financial liabilities.
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to profit and loss reserves.

 
3.20

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
3.21

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 26

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

3.Accounting policies (continued)

 
3.22

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

Page 27

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

4.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances.
The Group and Company makes estimates and assumptions concerning the future.  The resulting accounting estimates will, by definition, seldom equal the related actual results.  The estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:
(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets.  The useful economic lives and residual values are re-assessed annually.  They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
See note 15 for the carrying amount of the property plant and equipment and note 3.14 for the useful economic lives for each class of assets.
(ii) Impairment of debtors
The Group makes an estimate of the recoverable value of trade and other debtors.  When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.  See note 18 for the net carrying amount of debtors and associated impairment provision. 
(iii) Impairment of non-current assets
The Group makes an estimate of the recoverable amount of the Company and compares this against the carrying amount of assets in the company to ensure no impairment of the asset. Any impairment would be booked in the year that it is indicated.
(iv) Investment carrying value
The carrying value of the Company’s investment in Go Plant Limited of £23,746 thousand and intangibles arising on consolidation have been subject to an impairment review based on a value in use calculation. The directors consider that the assessment of the carrying value of the investments is most sensitive to the discount rate applied to future cashflows and the achievement of the 2023 and subsequent budgets. No impairment was identified.
The value in use calculation uses cash flow projections based on financial budgets approved by the directors covering a five year period and a pre tax discount rate of 8% per annum based on the rate at which the entity would expect to be able to borrow.
In preparing the budget forecast, sales growth is based on past experience and adjusting for the ability to renegotiate contracts to reflect the impact of inflation. Operating profits are forecast based on historical experience and adjusted for changes in costs arising from market conditions. Cash conversion is based on historical experience.
Cashflows beyond the five year period have been extrapolated without any assumed growth to reflect a prudent estimation of future value.

Page 28

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

5.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£000
£000

Operated road sweeper hire
40,872
38,276

Contract hire and fleet management services
22,711
25,764

Vehicle management and plant hire
3,812
6,201

Passenger carrying services
90
221

67,485
70,462


Analysis of turnover by country of destination:

2022
2021
£000
£000

United Kingdom
67,485
70,461

67,485
70,461



6.


Other operating income

2022
2021
£000
£000

Other operating income
-
658

-
658


During the year, the Group received £Nil (2021: £658,000) under the UK Government's Job Retention Scheme. There are no unfulfilled conditions or other contingencies attaching to the income received. The monies received have been accounted for as a Government Grant and are shown on the the Consolidated Profit and Loss Account as Other Operating Income.

Page 29

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

7.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2022
2021
£000
£000

Depreciation of owned fixed assets
2,757
3,531

Depreciation of assets held under hire purchase and finance lease agreements
10,816
10,693

Amortisation of goodwill and other intangibles
2,397
2,765

Profit on sale of plant and machinery
(493)
(1,267)

Impairment of tangible assets
-
250

Amounts payable under operating leases
2,253
3,003

Loss on pension scheme amendments
-
230


8.


Auditors' remuneration

Services provided by the Group's auditors:


2022
2021
£000
£000

Fees payable for the audit of the Group financial statements
5
-

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

Page 30

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

9.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2022
2021
2022
2021
£000
£000
£000
£000


Wages and salaries
23,170
21,931
-
-

Social security costs
2,427
2,361
-
-

Cost of defined contribution scheme
709
548
-
-

26,306
24,840
-
-


The average monthly number of employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







Production and selling staff
395
391



Administration staff
121
146

516
537

The Company has no employees other than the directors, who did not receive any remuneration from the company (2021 - £NIL).

10.


Directors' remuneration

2022
2021
£000
£000

Directors' emoluments
802
623

Group contributions to defined contribution pension schemes
101
65

903
688


The highest paid director received remuneration of £210 thousand (2021 - £244 thousand).

The value of the Group's contributions paid to a defined benefit pension scheme in respect of the highest paid director amounted to £28 thousand (2021 - £30 thousand).

Page 31

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

11.


Interest payable and similar expenses

2022
2021
£000
£000


Bank interest payable
3,876
3,399

Finance leases and hire purchase contracts
1,224
2,398

5,100
5,797

Following a review of the interest payable charges relating to finance leases and hire purchase contracts, we have reclassified interest charged on bank loans in order to provide clarity in respect of the nature of the charges which were previously combined.
Following the implementation of the new operating and financial system a process review and reconciliation has been undertaken for all finance lease and hire purchase agreements through to closing June 2023 funder statements. The purpose of the review has been to implement robust controls going forwards. An interest expense P&L credit of £950,000 has been recognised in 2022 arising from the reconciliation and whilst the cumulative impact of interest arising from funder agreements has been thoroughly reconciled to funder statements there is potential that an element of the corrections made, including that arising from matters such as the rescheduling of finance with COVID repayment holidays, relates to prior years. We are unable to generate with sufficient certainty the records required to allocate interest corrections and related capital impact to prior years.


12.


Taxation


2022
2021
£000
£000

Corporation tax


Current tax on profits for the year
(2)
-

Adjustments in respect of previous periods
-
(281)


(2)
(281)


Total current tax
(2)
(281)

Deferred tax


Origination and reversal of timing differences
(556)
23

Adjustment in respect of previous periods
-
272

Effects of changes in tax rates
-
60

Total deferred tax
(556)
355


Tax on loss
(558)
74
Page 32

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£000
£000


Loss on ordinary activities before tax
(7,712)
(3,075)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
(1,465)
(584)

Effects of:


Expenses not deductible for tax purposes
363
491

Fixed asset timing differences
(62)
(138)

Intangible assets amortisation and impairment
104
105

Adjustments to tax charge in respect of prior periods
-
348

Remeasurement of deferred tax for change in tax rates
(337)
128

Prior year movement on deferred tax not recognised
35
(4)

Movement on deferred tax not recognised
804
9

Overpayment of corporation tax in prior periods
-
(281)

Total tax charge for the year
(558)
74


Factors that may affect future tax charges

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2021 on 10 June 2021. These include an increment of the rate of corporation tax to 25% from 19% from 1 April 2023. 


13.

Exceptional items

2022
2021
      £000
      £000
Restructuring and other non-trading costs

46

84
 
Exceptional pension costs

150

-
 

196

84
 

Exceptional pension costs relate to the accrual of additional costs relating to historic defined contribution pension scheme payments. 

Page 33

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

14.


Intangible assets

Group 





Customer Relationships
Brand
Computer software
Goodwill
Total

£000
£000
£000
£000
£000



Cost


At 1 July 2021
9,497
1,800
1,490
6,746
19,533


Additions
-
-
280
-
280


Additions - internal
-
-
14
-
14


Disposals
-
-
(406)
-
(406)



At 30 June 2022

9,497
1,800
1,378
6,746
19,421



Amortisation


At 1 July 2021
7,122
630
709
3,371
11,832


Charge for the year on owned assets
1,187
180
301
729
2,397


On disposals
-
-
(406)
-
(406)



At 30 June 2022

8,309
810
604
4,100
13,823



Net book value



At 30 June 2022
1,188
990
774
2,646
5,598



At 30 June 2021
2,375
1,170
781
3,375
7,701



Page 34

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

15.


Tangible fixed assets

Group






Freehold property
Plant and equipment
Fleet vehicles
Fixtures and fittings
Total

£000
£000
£000
£000
£000



Cost or valuation


At 1 July 2021
703
75,575
52,433
1,980
130,691


Additions
28
1,630
5,986
72
7,716


Disposals
(3)
(11,455)
(6,304)
(677)
(18,439)



At 30 June 2022

728
65,750
52,115
1,375
119,968



Depreciation


At 1 July 2021
209
35,359
21,767
1,100
58,435


Charge for the year on owned assets
42
5,750
7,524
257
13,573


Disposals
(3)
(9,367)
(4,413)
(522)
(14,305)



At 30 June 2022

248
31,742
24,878
835
57,703



Net book value



At 30 June 2022
480
34,008
27,237
540
62,265



At 30 June 2021
494
40,216
30,666
880
72,256




The net book value of land and buildings may be further analysed as follows:


2022
2021
£000
£000

Freehold
480
494

480
494


Included within the net book value of £62,265,000 is £47,525,000 (2021 - £63,263,000) relating to assets held under hire purchase and finance lease agreements. The depreciation charge to the financial statements in the year in respect of such assets amounted to £10,816,000 (2021 - £10,693,000).

Page 35

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

16.


Fixed asset investments

Group





Investments in subsidiary companies

£000



Cost or valuation


At 1 July 2021
4



At 30 June 2022

4



Impairment


At 1 July 2021
4



At 30 June 2022

4



Net book value



At 30 June 2022
-



At 30 June 2021
-

Company





Investments in subsidiary companies

£000



Cost or valuation


At 1 July 2021
41,140



At 30 June 2022
41,140






Net book value



At 30 June 2022
41,140



At 30 June 2021
41,140

Page 36

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Go Plant Fleet Services Limited
1a Franks Road, Bardon Hill, Coalville, Leicestershire, LE67 1TT
Ordinary
100%
Go Plant Limited
1a Franks Road, Bardon Hill, Coalville, Leicestershire, LE67 1TT
Ordinary
100%
Go Planet Limited (formerly Shropshire Road Sweepers Limited)
1a Franks Road, Bardon Hill, Coalville, Leicestershire, LE67 1TT
Ordinary
100%


17.


Stocks

Group
Group
2022
2021
£000
£000

Raw materials and consumables
55
179

55
179


The difference between purchase price or production cost of stocks and their replacement cost is not material.


18.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£000
£000
£000
£000


Trade debtors
16,644
12,886
-
-

Other debtors
1,732
1,704
17
17

Prepayments and accrued income
2,138
2,188
-
-

20,514
16,778
17
17


Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Trade debtors are stated after provisions for impairment of £573,000 (2021: £516,000).

Page 37

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2022
2021
2022
2021
£000
£000
£000
£000

Invoice discounting facility
8,593
4,971
-
-

Trade creditors
3,880
3,579
184
184

Amounts owed to group undertakings
-
-
15,550
15,550

Other taxation and social security
3,704
2,522
1
1

Obligations under finance lease and hire purchase contracts
16,700
19,142
-
-

Other creditors
2,005
2,315
-
-

Accruals and deferred income
7,430
6,525
1
1

42,312
39,054
15,736
15,736


Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
Amounts due under hire purchase and finance lease agreements are secured on the assets to which they relate.
Amounts owed on invoice discounting facilities are secured against outstanding trade debtor balances and interest bearing at 2.5% over Bank of England Base Rate.


20.


Creditors: Amounts falling due after more than one year

Group
Group
2022
2021
£000
£000


Bank loans
3,898
2,267

Directors' loans
1,093
1,008

Investor loan notes
44,060
40,663

Net obligations under finance leases and hire purchase contracts
27,943
36,843

76,994
80,781

Amounts due under hire purchase and finance lease agreements are secured on the assets to which they relate.
Amounts owed on plant and machinery loan facilities of £1,485 thousand, included within bank loans, are secured on the underlying assets and interest bearing at 3.5% over Bank of England Base Rate.
Amounts owed on recovery loan facilities included within bank loans of £2,413 thousand are secured by a way of fixed and floating charges over the Go Plant Limited's assets and a cross guarantee from Go Plant Fleet Services Limited. Interest bearing on this facility is at 5.56% over Bank of England Base Rate.
The loans due to directors and the investor loan notes shall be repaid at par on the 3 July 2023. The loans have an interest rate of 8% and are secured by way of fixed charge over all assets of the Company. See note 31 for details of a post balance sheet amendment to these loans, where the maturity date has changed to 3 July 2025.

Page 38

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

21.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2022
2021
2022
2021
£000
£000
£000
£000

Amounts falling due within one year

Other loans
8,593
4,971
-
-


8,593
4,971
-
-

Amounts falling due 1-2 years

Bank loans
3,898
2,267
-
-

Other loans
45,153
41,671
45,153
41,671


49,051
43,938
45,153
41,671



57,644
48,909
45,153
41,671


See note 20 for the breakdown of the balances included in other loans.


22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2022
2021
£000
£000


Within one year
18,294
21,302

Between 1-5 years
27,587
37,085

Over 5 years
2,359
2,431

Future finance charges
(3,596)
(4,832)

44,644
55,986


23.

Capital commitments

At 30 June 2022 the Group (Company - £Nil for both years) had capital commitments as follows:

Group
2022
Group
2021
      £000
      £000
Contracted for but not provided in these financial statements

31,522

980
 

31,522

980
 

Page 39

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

24.


Deferred taxation


Group



2022


£000






At beginning of year
(556)


Charged to profit or loss
556



At end of year
-

The deferred taxation balance is made up as follows:

Group

Group
2022
2021
£000
£000

Accelerated capital allowances
(1,377)
(1,404)

Tax losses carried forward
1,851
1,698

Short term timing difference
71
36

Intangible assets arising on consolidation
(545)
(886)

-
(556)


The Group have not recognised a deferred tax asset of £827 thousand (2021 as restated  - £21 thousand) in respec  of tax losses due to the uncertainty of future profitability. These losses will be available to utilise against future profits should they arise. 


25.


Provisions


Group



Other provisions
Onerous contracts
Total

£000
£000
£000





At 1 July 2021
546
145
691


Charged (released ) to profit or loss
(94)
80
(14)


Utilised in year
(48)
(145)
(193)



At 30 June 2022
404
80
484

Other provisions relate to dilapidations.
Onerous contracts relate to losses on exited customer contracts.

Page 40

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

26.


Retirement benefits

The Group operates defined contribution schemes in the UK. The assets of the schemes are held separately from those of the Group and are invested in managed funds. Charges during the year amounted to £709,000 (year ended 30 June 2021: £548,000) which includes an additional charge in the year of £150,000 relating to pension costs as detailed in note 13. 
The Group is granted Admitted Body status with South Yorkshire Pensions Authority, LGPS Lancashire and Greater Manchester Pension Fund. The Admitted Body status enables ex-Local Authority employees to remain in the Local Authority Pension Schemes, being defined benefit schemes.
The individual schemes are multi-employer and therefore the Group is unable to identify its share of the underlying assets and liabilities on a consistent and reasonable basis, contributions and obligations are also capped on these schemes. Consequently, the Group accounts for its contributions to the schemes as if they were defined contribution schemes.
The Group previously operated a defined benefit pension scheme, which had been closed to new members since September 2020. Winding up of the scheme was commenced in June 2021 with completion confirmed in August 2021.



Reconciliation of present value of plan liabilities:


2022
2021
£000
£000



At the beginning of the year
-
13,361

Interest cost
-
175

Actuarial gains/losses
-
493

Benefits paid
-
(1,668)

Gain/loss on settlement or curtailment
-
(12,361)

At the end of the year
-
-



Reconciliation of present value of plan assets:


2022
2021
£000
£000


At the beginning of the year
-
13,514

Interest income
-
176

Actuarial gains/losses
-
570

Benefits paid
-
(1,668)

Gain/loss on settlement or curtailment
-
(12,361)

Scheme administrative cost
-
(231)

At the end of the year
-
-




The amounts recognised in profit or loss are as follows:

Page 41

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
 
26.Retirement benefits (continued)

2022
2021
£000
£000


Service cost - administrative cost
-
(231)

Net interest on the net defined benefit surplus
-
1

Total
-
(230)



The cumulative amount of actuarial gains and losses recognised in the Consolidated Statement of Comprehensive Income was £NIL (2021 - £77,000).






Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2022
2021
%
%
Discount rate


-

1.8
 
Inflation assumption (RPI)


-

3.4
 
Inflation assumption (CPI)


-

3.1
 
Pension increases (CPI max 5%)


-

3.0
 
Pension increases (RPI max 5%)


-

N/A
 
Mortality rates



 
- for a male aged 65 now


-

22.1
 
- at 65 for a male aged 45 now


-

23.4
 
- for a female aged 65 now


-

24.4
 
- at 65 for a female member aged 45 now


-

25.8
 





Page 42

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

27.


Commitments under operating leases

At 30 June 2022 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
Group
£000
£000


Not later than 1 year
1,630
1,665

Later than 1 year and not later than 5 years
2,232
2,288

Later than 5 years
2,197
1,732

6,059
5,685


28.


Share capital

2022
2021
£000
£000
Allotted, called up and fully paid



1 (2021 - 1) Share capital share of £1.00
-
-

Ordinary shares have attached to them full voting, dividend and capital distribution rights. 



29.


Reserves

Profit and loss account

This reserve records retained earnings and accumlated losses


30.


Related party transactions

Directors held £1,093,000 (2021: £1,008,000) in loan notes and accrued interest and the company paid interest of £84,000 (2021: £71,000) in the year. No interest has been accrued (2021: £nil).
The company is exempt from disclosing other related party transactions as they are with other companies that are wholly owned within the group.


31.


Post balance sheet events

On 6 December 2022, Endless LLP, as agent and security trustee for and on behalf of the lenders Endless Fund IV A LP and Endless Fund IV B LP, issued a revolving credit facility of £4,000,000 at 12.5% over Bank of England Base Rate to Go Plant Fleet Services Ltd to use as required. 
On 3 September 2023, this facility has been amended to change the maturity date to 1 April 2025. Endless LLP have confirmed that they will not be requesting or demanding payment of the interest relating to the revolving credit facility put in place on 6 December 2022 and expiring April 2025 unless long term projections show there is sufficient headroom to do so and all parties to the facility agree. 
On 19 May 2023, the directors loan and investor loan notes repayment date was amended to 3 July 2025.

Page 43

 


ALPHA HOLDCO 1 LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

32.


Immediate parent company and ultimate controlling party

The company's immediate parent undertaking is Alpha Topco 1 Limited, a company incorporated in the United Kingdom. 
The smallest and largest parent undertaking to consolidate these financial statements is Alpha Topco 1 Limited. Copies of Alpha Topco 1 Limited consolidated financial statements are available from Companies House.
The Directors consider the Ultimate Controlling Party to be Endless Fund IV , a fund managed by Endless LLP.

 
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