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Registration number: 00906595

Macsalvors (Plant Hire) Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2023

 

Macsalvors (Plant Hire) Limited
 

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Independent Auditor's Report

5 to 8

Profit and Loss Account and Statement of Retained Earnings

9

Balance Sheet

10

Statement of Cash Flows

11

Notes to the Financial Statements

12 to 23

 

Macsalvors (Plant Hire) Limited
 

Company Information

Directors

Mr N C MacQuarrie

Mrs E MacQuarrie

Company secretary

Mr N C MacQuarrie

Registered office

45 Lemon Street
Truro
Cornwall
TR1 2NS

Bankers

Barclays Bank plc
8/9 Market Jew Street
Penzance
Cornwall
TR18 2TW

Auditors

Pooleys
Chartered Accountants & Statutory Auditor
45 Lemon Street
Truro
Cornwall
TR1 2NS

 

Macsalvors (Plant Hire) Limited
 

Strategic Report for the Year Ended 31 March 2023

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

Principal activity

The principal activity of the company is the provision of crane and plant hire services.

Macsalvors (Plant Hire) Limited is a specialist mobile crane company, providing crane hire and specialist haulage services, including all terrain cranes, low loaders, compact cranes, spider cranes, mini crawlers and HIAB lorries, principally throughout the South West. The company has over 50 years of experience and offers services to a wide range of sectors, principally construction, major utility companies and the public sector.

The company also provides tow bar and tyre services.

Fair review of the business

The results of Macsalvors (Plant Hire) Limited are set out on pages 9 to 10 and show a profit on ordinary activities before tax of £1,399,265 (2022 - £734,747). This reflects a more positive market and a continuation of the company's progress made against the previous year.

The shareholders' funds total £7,311,865 (2022 - £6,521,164).

The performance of the company during this period is in line with Directors' expectations. The operations of the company continued throughout the year.

Macsalvors (Plant Hire) Limited continues to maintain positive business relationships with its customers, suppliers, bank and other professional firms.

Growth in the construction industry continues to benefit Macsalvors (Plant Hire) Limited.

The company is pro-active in maintaining a high quality fleet level and continues to invest heavily in plant. The company has healthy liquid reserves.

The managing Director reviews the KPI's on both a monthly and quarterly basis.

KPI's reviewed include Gross Profit, Operating Profit and Net profit percentages by services rendered, Debtor days, Current ratio, Return on Capital Employed and Asset Cover ratio, together with quarterly comparisons between forecast and actual performances.

Principal risks and uncertainties

The construction industry is the key market served and there is a correlation between the cyclical nature of this sector and the performance of the company.

Macsalvors (Plant Hire) Limited's customers in the construction industry increase their demand for its services when there is growth in the sector and excess capacity - however demand is decreased when growth reduces.

The company anticipates current year market conditions to remain competitive but at similar levels.

Approved and authorised by the Board on 16 November 2023 and signed on its behalf by:
 

.........................................
Mr N C MacQuarrie
Company secretary and director

 

Macsalvors (Plant Hire) Limited
 

Directors' Report for the Year Ended 31 March 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

 

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Directors of the company

The directors who held office during the year were as follows:

Mr N C MacQuarrie - Company secretary and director

Mrs E MacQuarrie

Financial instruments

Objectives and policies

The companies activities expose it to some financial risks. The company monitors these risks but does not consider it necessary to use any derivative financial instruments to hedge these risks.

Price risk, credit risk, liquidity risk and cash flow risk

Credit risk is considered to be significant, but this is mitigated by the strong systems and controls put in place by management, who maintain a strict policy on debt.

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

 

Macsalvors (Plant Hire) Limited
 

Directors' Report for the Year Ended 31 March 2023

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Pooleys are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 16 November 2023 and signed on its behalf by:
 

.........................................
Mr N C MacQuarrie
Company secretary and director

 

Macsalvors (Plant Hire) Limited
 

Independent Auditor's Report to the Members of Macsalvors (Plant Hire) Limited

Opinion

We have audited the financial statements of Macsalvors (Plant Hire) Limited (the 'company') for the year ended 31 March 2023, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information 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.

 

Macsalvors (Plant Hire) Limited
 

Independent Auditor's Report to the Members of Macsalvors (Plant Hire) Limited

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Macsalvors (Plant Hire) Limited
 

Independent Auditor's Report to the Members of Macsalvors (Plant Hire) Limited

The objectives of our audit, in respect of fraud, are;
• Identify and assess the risks of material misstatement of the financial statements due to fraud;
• Obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses;
• Respond appropriately to fraud and suspected fraud identified during the audit.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.
• We identified the laws and regulations applicable to the company through discussions with directors and from our knowledge and experience of the relevant sector;
• The audit principal ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows:
o The Companies Act 2006
o FRS102
o Employment Legislation
o GDPR
o Tax legislation
o Health and Safety
• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes and inspecting legal correspondence;
• Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remain alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included:
• Making enquiries of management as to whether they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
• Reviewing the financial statements and testing the disclosures against supporting documentation;
• Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
• Inspecting and testing journal entries to identify unusual or unexpected transactions;
• Assessing whether judgement and assumptions made in determining significant accounting estimates were indicative of management bias; and
• Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.
The areas we identified as being susceptible to misstatement through fraud were:
• Management bias in the estimates and judgements made;
• Management override of controls;
• Posting of unusual journals or transactions; and
• Revenue recognition.
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.
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

Macsalvors (Plant Hire) Limited
 

Independent Auditor's Report to the Members of Macsalvors (Plant Hire) Limited

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/
description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
David Pooley FCA (Senior Statutory Auditor)
For and on behalf of Pooleys, Statutory Auditor

45 Lemon Street
Truro
Cornwall
TR1 2NS

16 November 2023

 

Macsalvors (Plant Hire) Limited
 

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 March 2023

Note

2023
£

2022
£

Turnover

3

8,139,807

6,719,886

Cost of sales

 

(6,177,013)

(5,112,131)

Gross profit

 

1,962,794

1,607,755

Administrative expenses

 

(604,965)

(958,933)

Other operating income

4

42,253

98,963

Operating profit

5

1,400,082

747,785

Other interest receivable and similar income

7

4,021

325

Interest payable and similar charges

8

(4,838)

(13,363)

 

(817)

(13,038)

Profit before tax

 

1,399,265

734,747

Taxation

12

(608,564)

(140,400)

Profit for the financial year

 

790,701

594,347

Retained earnings brought forward

 

6,521,063

5,926,716

Retained earnings carried forward

 

7,311,764

6,521,063

 

Macsalvors (Plant Hire) Limited
 

(Registration number: 00906595)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

13

6,757,374

6,242,667

Current assets

 

Stocks

14

1,000

1,000

Debtors

15

2,032,626

2,267,467

Cash at bank and in hand

 

1,402,381

1,039,329

 

3,436,007

3,307,796

Creditors: Amounts falling due within one year

16

(1,361,808)

(2,061,900)

Net current assets

 

2,074,199

1,245,896

Total assets less current liabilities

 

8,831,573

7,488,563

Creditors: Amounts falling due after more than one year

16

-

(56,255)

Provisions for liabilities

17

(1,519,708)

(911,144)

Net assets

 

7,311,865

6,521,164

Capital and reserves

 

Called up share capital

101

101

Retained earnings

20

7,311,764

6,521,063

Shareholders' funds

 

7,311,865

6,521,164

Approved and authorised for issue by the Board on 16 November 2023 and signed on its behalf by:
 

.........................................

Mr N C MacQuarrie

Company secretary and director

 

Macsalvors (Plant Hire) Limited
 

Statement of Cash Flows for the Year Ended 31 March 2023

Note

2023
 £

2022
 £

Cash flows from operating activities

Profit for the year

 

790,701

594,347

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

775,424

623,328

(Profit)/loss on disposal of tangible assets

(448,381)

9,555

Finance income

7

(4,021)

(325)

Finance costs

8

4,979

13,220

Income tax expense

12

608,564

140,400

 

1,727,266

1,380,525

Working capital adjustments

 

Decrease/(increase) in trade debtors

15

194,036

(553,892)

(Decrease)/increase in trade creditors

16

(512,538)

817,848

Cash generated from operations

 

1,408,764

1,644,481

Income taxes received

12

40,805

11,299

Net cash flow from operating activities

 

1,449,569

1,655,780

Cash flows from investing activities

 

Interest received

7

4,021

325

Acquisitions of tangible assets

(1,663,850)

(1,218,355)

Proceeds from sale of tangible assets

 

822,100

27,201

Net cash flows from investing activities

 

(837,729)

(1,190,829)

Cash flows from financing activities

 

Interest paid

8

(936)

(43)

Payments to finance lease creditors

 

(247,852)

(314,813)

Net cash flows from financing activities

 

(248,788)

(314,856)

Net increase in cash and cash equivalents

 

363,052

150,095

Cash and cash equivalents at 1 April

 

1,039,329

889,234

Cash and cash equivalents at 31 March

 

1,402,381

1,039,329

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
45 Lemon Street
Truro
Cornwall
TR1 2NS

The principal place of business is:
Newham Road
Truro
Cornwall
TR1 2SU

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of returns, rebates and discounts. The policies adopted for the recognition of turnover are as follows:

Turnover from the sale of goods, including tyres, tow bars and other items, is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually at the point of sale.

Contract revenue recognition

Revenue from a contract to provide services including plant hire is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all the following conditions are satisfied:.

(a) the amount of revenue can be measured reliably;
(b) it is probable that the economic benefits associated with the transaction will flow to the entity;
(c) the stage of completion of the transaction at the end of the reporting period can be measured reliably; and
(d) the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

Government grants

The company has been in receipt of government grants with respect of the Coronavirus Job Retention Scheme. These grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

Foreign currency transactions and balances

The company's functional and presentation currency is the pound sterling.

Foreign currency transactions are translated into the functional currency at the spot rate at the transaction date.

At the year end, foreign currency monetary items are translated at the closing rate (i.e. the exchange rate at the reporting date) with the difference taken through profit or loss.

Tax

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

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold Property

2% reducing balance

Leasehold Property

Over the term of the lease

Plant & Machinery

10% reducing balance

Motor Vehicles

25% reducing balance

Fixtures, fittings & Equipment

25% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price. Cost is determined using the first-in, first-out (FIFO) method.

The company holds stocks of tyres on consignment from suppliers. These remain the property of the supplier until sold. No amounts for the stock or the liability to the supplier are entered to the financial statements until stocks are acquired by the company.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated over their useful life. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

Defined contribution pension obligation

The company contributes to defined contribution plans for its employees. A defined contribution plan is a pension plan under which fixed contributions are paid into a seperate entity. The company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

The assets of the scheme are held separately from those of the company in independently administered funds.

Financial instruments

Classification
Basic financial assets, including trade and other receivables, cash at bank and in hand, are initially recognised at transaction price.

Basic financial liabilities, including trade and other payables are initially recognised at transaction price.


 Recognition and measurement
Assets are subsequently carried at amortised cost using the effective interest method.

Debt instruments are subsequently carried at amortised cost, using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

 Impairment
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the profit and loss account.


3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Sale of goods

104,259

102,315

Rendering of services

8,035,548

6,617,571

8,139,807

6,719,886

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Government grants

19,253

75,963

Rent receivable

23,000

23,000

42,253

98,963

5

Operating profit

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

775,424

623,328

Foreign exchange (gains)/losses

(141)

143

Operating lease expense - plant and machinery

9,759

8,284

(Profit)/loss on disposal of property, plant and equipment

(448,381)

9,555

Auditor's remuneration

8,500

8,000

6

Government grants

The company has received government grants during the year, which relate to the COVID-19 Additional Relief Fund (CARF) totalling £19,253 (2022 - Coronavirus Job Retention Scheme (CJRS) £74,317 and Covid-19 SSP £1,646).

The amount of grants recognised in the financial statements was £19,253 (2022 - £75,963).

7

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

3,893

226

Other finance income

128

99

4,021

325

8

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

907

43

Interest on obligations under finance leases and hire purchase contracts

4,043

13,177

Interest expense on other finance liabilities

29

-

Foreign exchange (losses)/gains

(141)

143

4,838

13,363

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

2,920,326

2,696,777

Social security costs

340,662

312,096

Pension costs, defined contribution scheme

124,753

106,072

3,385,741

3,114,945

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
 No.

2022
 No.

Administration and support

7

6

Crane and other plant operators

51

52

Other departments

2

2

60

60

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

112,125

96,892

Contributions paid to money purchase schemes

36,000

24,000

148,125

120,892

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

1

1

11

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

8,500

8,000


 

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

12

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Deferred taxation

Arising from origination and reversal of timing differences

608,564

140,400

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,399,265

734,747

Corporation tax at standard rate

265,860

139,602

Effect of expense not deductible in determining taxable profit (tax loss)

442

500

Deferred tax expense relating to changes in tax rates or laws

374,969

-

Tax increase/(decrease) from effect of capital allowances and depreciation

425

(1,517)

Tax decrease from effect of (gains)/losses on disposal of tangible fixed assets

(33,132)

1,815

Total tax charge

608,564

140,400

Deferred tax has been recognised at the corporation tax rate of 25% (2022 - 19%).

If profits remain at a similar level the company's corporation tax rate will rise to 25% from 1 April 2023.

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

13

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and equipment
 £

Total
£

Cost

At 1 April 2022

167,892

140,800

374,409

12,228,533

12,911,634

Additions

2,882

32,329

45,500

1,583,139

1,663,850

Disposals

-

-

(21,902)

(675,023)

(696,925)

At 31 March 2023

170,774

173,129

398,007

13,136,649

13,878,559

Depreciation

At 1 April 2022

80,304

121,880

271,748

6,195,035

6,668,967

Charge for the year

1,722

12,812

36,309

724,581

775,424

Eliminated on disposal

-

-

(18,978)

(304,228)

(323,206)

At 31 March 2023

82,026

134,692

289,079

6,615,388

7,121,185

Carrying amount

At 31 March 2023

88,748

38,437

108,928

6,521,261

6,757,374

At 31 March 2022

87,588

18,920

102,661

6,033,498

6,242,667

Included within the net book value of land and buildings above is £84,366 (2022 - £86,088) in respect of freehold land and buildings and £4,382 (2022 - £1,500) in respect of short leasehold land and buildings.
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under hire purchase contracts:

 

2023
£

2022
£

Plant and machinery

501,260

556,956

     

Restriction on title and pledged as security

Plant and machinery with a carrying amount of £501,260 (2022 - £556,956) has been pledged as security for the hire purchase contract liabilities as detailed in note 21.

14

Stocks

2023
£

2022
£

Raw materials and consumables

1,000

1,000

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

15

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

1,662,064

1,994,595

Other debtors

 

2,360

2,361

Prepayments

 

368,202

229,706

Income tax asset

12

-

40,805

   

2,032,626

2,267,467

16

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

21

33,293

220,847

Trade creditors

 

571,057

571,570

Social security and other taxes

 

332,737

218,017

Other payables

 

10,447

8,672

Accruals

 

414,274

1,042,794

 

1,361,808

2,061,900

Due after one year

 

Loans and borrowings

21

-

56,255

17

Provisions for liabilities

Deferred tax
£

Total
£

At 1 April 2022

911,144

911,144

Increase (decrease) in existing provisions

608,564

608,564

At 31 March 2023

1,519,708

1,519,708

The deferred tax provision relates to accelerated capital allowances of £1,562,373 (2022 - £983,641) and tax losses not utilised of (£42,665) (2022 - (£72,497)).

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £124,753 (2022 - £106,072).

19

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £0.50 each

1

1

1

1

Ordinary shares of £0.05 each

2,000

100

2,000

100

 

2,001

101

2,001

101

Rights, preferences and restrictions

Ordinary shares of 50p each 'Class 1' have the following rights, preferences and restrictions:
There are no restrictions on the distribution of dividends and they are non redeemable

Ordinary shares of 5p each 'Class 2' have the following rights, preferences and restrictions:
Distribution of dividends on these shares are restricted, which is deferred until the first 10% of distribution is paid to 'Class 1 shareholders'. These shares are non redeemable.

20

Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

21

Aggregate of secured liabilities

2023
£

2022
£

Non-current loans and borrowings

Hire purchase contracts

-

56,255

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

2023
£

2022
£

Current loans and borrowings

Hire purchase contracts

33,293

220,847

Other borrowings

Hire purchase liabilities are denominated in sterling with a nominal interest rate of 2.5% to 3.5% . The carrying amount at the year end is £33,293 (2022 - £277,102).

These have been secured against the assets to which the finance relates.

22

Obligations under leases and hire purchase contracts

Finance leases

These relate to the purchase of tangible fixed assets, on variable terms, repayable within five years

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

33,468

226,133

Later than one year and not later than five years

-

56,533

33,468

282,666

23

Analysis of changes in net debt

At 1 April 2022
£

Financing cash flows
£

At 31 March 2023
£

Cash and cash equivalents

Cash

1,039,329

363,052

1,402,381

Borrowings

Lease liabilities

(277,102)

243,809

(33,293)

 

762,227

606,861

1,369,088

 

Macsalvors (Plant Hire) Limited
 

Notes to the Financial Statements for the Year Ended 31 March 2023

24

Related party transactions

During the year the company paid rent to one of the directors and to a shareholder amounting to £40,000 each (2022: £40,000 each).

A director has advanced monies to the company. The loan is unsecured and repayable on demand. At the balance sheet date the amount due to the director was £2,778 (2022: £2,778).

25

Post Balance Sheet Events

The company has acquired plant of £1.07m and disposed of plant generating proceeds of £513,000, post year end.