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Registration number: 06553365

Earthmover Tyre Solutions Limited

Unaudited Filleted Financial Statements

for the Year Ended 30 June 2023

 

Earthmover Tyre Solutions Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

Earthmover Tyre Solutions Limited

Company Information

Directors

Miss S Hubbard

Mr J J Farr

Company secretary

Miss S Hubbard

Registered office

Five Acre Lake
Mires Lane
North Cave
Brough
HU15 2QP

Accountants

DAH Accountancy Services Limited
Chartered Management Accountants
Cedar Lodge
York Road
Shiptonthorpe
York
East Yorkshire
YO43 3PH

 

Earthmover Tyre Solutions Limited

(Registration number: 06553365)
Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

1,076,563

794,582

Current assets

 

Stocks

5

84,618

28,109

Debtors

6

1,234,929

888,330

Cash at bank and in hand

 

1,813,317

1,713,125

 

3,132,864

2,629,564

Creditors: Amounts falling due within one year

7

(1,359,284)

(1,148,195)

Net current assets

 

1,773,580

1,481,369

Total assets less current liabilities

 

2,850,143

2,275,951

Creditors: Amounts falling due after more than one year

7

(227,505)

(284,629)

Provisions for liabilities

(157,841)

(55,982)

Net assets

 

2,464,797

1,935,340

Capital and reserves

 

Called up share capital

8

2

2

Retained earnings

2,464,795

1,935,338

Shareholders' funds

 

2,464,797

1,935,340

For the financial year ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

 

Earthmover Tyre Solutions Limited

(Registration number: 06553365)
Balance Sheet as at 30 June 2023

Approved and authorised by the Board on 20 November 2023 and signed on its behalf by:
 

.........................................
Miss S Hubbard
Company secretary and director

 

Earthmover Tyre Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

1

General information

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

The address of its registered office is:
Five Acre Lake
Mires Lane
North Cave
Brough
HU15 2QP

These financial statements were authorised for issue by the Board on 20 November 2023.

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

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 sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

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.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Earthmover Tyre Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

Nil

Plant and machinery

25% on cost

Fixtures and fittings

25% on cost

Motor vehicles

20% on cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or 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 less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Earthmover Tyre Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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 on a straight-line basis over the shorter of the useful life of the asset and the lease term. 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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Earthmover Tyre Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and 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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 17 (2022 - 15).

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2022

135,667

519,380

1,049,444

1,704,491

Additions

-

87,678

434,485

522,163

Disposals

-

-

(6,750)

(6,750)

At 30 June 2023

135,667

607,058

1,477,179

2,219,904

Depreciation

At 1 July 2022

-

332,728

577,181

909,909

Charge for the year

-

65,313

174,869

240,182

Eliminated on disposal

-

-

(6,750)

(6,750)

At 30 June 2023

-

398,041

745,300

1,143,341

Carrying amount

At 30 June 2023

135,667

209,017

731,879

1,076,563

At 30 June 2022

135,667

186,652

472,263

794,582

Included within the net book value of land and buildings above is £135,667 (2022 - £135,667) in respect of freehold land and buildings.
 

5

Stocks

2023
£

2022
£

Other inventories

84,618

28,109

 

Earthmover Tyre Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

6

Debtors

Current

2023
£

2022
£

Trade debtors

1,176,405

812,053

Prepayments

18,094

1,107

Other debtors

40,430

75,170

 

1,234,929

888,330

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

131,793

126,958

Trade creditors

 

734,231

419,903

Taxation and social security

 

241,606

250,462

Accruals and deferred income

 

246,271

339,805

Other creditors

 

5,383

11,067

 

1,359,284

1,148,195

Creditors include bank loans and hire purchase contracts which are secured of £65,193 (2022: £59,462) falling due within one year.

Creditors include unsecured bank loans of £66,600 (2022 - £67,496) falling due within one year.

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

227,505

284,629

Creditors include bank loans and hire purchase contracts which are secured of £65,627 (2022: £58,455) falling due after more than one year.

Creditors include unsecured bank loans of £161,878 (2022 - £226,174) falling due after more than one year and less than five years.

 

Earthmover Tyre Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

2

2

2

2

         

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

161,878

226,174

Hire purchase contracts

65,627

58,455

227,505

284,629

2023
£

2022
£

Current loans and borrowings

Bank borrowings

66,601

67,496

Hire purchase contracts

65,192

59,462

131,793

126,958

10

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £66,100.00 (2022 - £48,000.00) per each Ordinary

 

132,200

 

96,000

         
 

Earthmover Tyre Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

11

Related party transactions

Miss S Hubbard, the company secretary, a director and shareholder, had a loan with the company that remained in credit throughout the year. Interest has not been charged on the loan.

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

25,140

43,985

Contributions paid to money purchase schemes

380

380

25,520

44,365

Dividends paid to directors

   

2023
£

 

2022
£

Miss S Hubbard

       

Dividends

 

66,100

 

48,000

         

Mr J J Farr

       

Dividends

 

66,100

 

48,000