Company registration number 04097069 (England and Wales)
SYDENHAMS HIRE CENTRES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
10 Bridge Street
Christchurch
Dorset
BH23 1EF
SYDENHAMS HIRE CENTRES LIMITED
CONTENTS
Page
Company information
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 9
SYDENHAMS HIRE CENTRES LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr R Chalmers
Mr J Clark
Mr G Mathews
Mr C Sherborne
Mr J Sherborne
Mr L Wright
Mr O Sherborne
(Appointed 12 May 2023)
Company number
04097069
Registered office
45-47 Ashley Road
Boscombe
Bournemouth
Dorset
BH1 4LG
Auditor
TC Group
10 Bridge Street
Christchurch
Dorset
BH23 1EF
SYDENHAMS HIRE CENTRES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,888,109
2,136,220
Current assets
Stocks
273,252
284,520
Debtors
4
1,695,377
1,585,078
Cash at bank and in hand
130,075
650,449
2,098,704
2,520,047
Creditors: amounts falling due within one year
5
(2,794,852)
(2,932,912)
Net current liabilities
(696,148)
(412,865)
Total assets less current liabilities
2,191,961
1,723,355
Provisions for liabilities
(382,477)
(172,093)
Net assets
1,809,484
1,551,262
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
1,808,484
1,550,262
Total equity
1,809,484
1,551,262
SYDENHAMS HIRE CENTRES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 3 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 10 October 2023 and are signed on its behalf by:
Mr J Clark
Mr J Sherborne
Director
Director
Company Registration No. 04097069
The notes on pages 4 to 9 form part of these financial statements
SYDENHAMS HIRE CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
1
Accounting policies
Company information
Sydenhams Hire Centres Limited is a private company limited by shares incorporated in England and Wales. The registered office is 45-47 Ashley Road, Boscombe, Bournemouth, Dorset, BH1 4LG. The company operates at several trading sites as detailed on the group website of Sydenhams.co.uk.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Hire income is recognised on a straight line basis over the period of the hire contract.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
5 year straight line and 8 year straight line
Fixtures and fittings
2 year straight line, 3 year straight line, 5 year straight line and 10 year straight line
Motor vehicles
4 year straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
SYDENHAMS HIRE CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Cost is based on the cost of purchase on a first in first out basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, amounts due from group companies and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
SYDENHAMS HIRE CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Employee costs and benefits
The parent company, Sydenhams Limited, holds the employment contracts for the employees of the company, under a central payroll function. The payroll expense is recharged at cost for those employees who's duties are based within the trading site of the company.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The company contributes to a group personal pension scheme for its employees. The scheme's assets are held in independent, trustee-administered funds.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
SYDENHAMS HIRE CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the parent company with costs recharged to this entity during the year was:
2023
2022
Number
Number
Total
The parent company, Sydenhams Limited, holds the employment contracts for the employees of the company, under a central payroll function. The payroll expense is recharged at cost for those employees who's duties are based within the trading site of the company. See accounting policy 1.8.
3
Tangible fixed assets
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
21,165
4,570,654
235,179
482,292
5,309,290
Additions
9,712
1,304,775
39,917
49,167
1,403,571
Disposals
(841,444)
(24,657)
(866,101)
Transfers
(11,215)
11,215
At 31 March 2023
19,662
5,033,985
286,311
506,802
5,846,760
Depreciation and impairment
At 1 April 2022
2,604,470
155,925
412,675
3,173,070
Depreciation charged in the year
478,545
29,902
44,185
552,632
Eliminated in respect of disposals
(742,394)
(24,657)
(767,051)
At 31 March 2023
2,340,621
185,827
432,203
2,958,651
Carrying amount
At 31 March 2023
19,662
2,693,364
100,484
74,599
2,888,109
At 31 March 2022
21,165
1,966,184
79,254
69,617
2,136,220
SYDENHAMS HIRE CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
441,956
372,662
Amounts owed by group undertakings
1,193,207
1,193,207
Other debtors
60,214
19,209
1,695,377
1,585,078
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
144,828
211,402
Amounts owed to group undertakings
2,445,811
2,488,152
Taxation and social security
60,276
55,148
Accruals and deferred income
143,937
178,210
2,794,852
2,932,912
There are no formal agreements in place regarding the settlement of amounts owed to or from group undertakings and they are treated as repayable on demand. The balances are not secured and no interest is charged on these balances within the financial statements.
The company is party to cross guarantees given in respect of the bank overdrafts of group companies which are secured by a fixed and floating charge over certain assets of all group companies. The amount of liability over which a cross guarantee was given at the year end was £nil (2022 - £1,484,810).
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
James Blake FCA
Statutory Auditor:
TC Group
SYDENHAMS HIRE CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
7
Contingent liabilities
The company is jointly and severally liable for the VAT liability of the group of which it is a member. At the year end the group liability was £817,923 (2022 - £1,249,372).
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
133,530
65,083
9
Related party transactions
The company has taken advantage of the exemption granted under Section 33 of FRS 102 from disclosing transactions with other wholly-owned group companies.
The company rents some of its sites from its managing director. During the year the company incurred rental charges of £31,400 (2022 - £31,400) in respect of these sites. At the year end no amounts were outstanding in the current or previous year in respect of these transactions.
10
Parent company
The immediate parent company is Sydenhams Limited, which is the parent company of the smallest group to consolidate these financial statements. The ultimate parent company is Sherborne Holdings Limited, which is the parent company of the largest group to consolidate these financial statements.
Copies of the consolidated financial statements can be obtained from the Company Secretary at 45-47 Ashley Road, Boscombe, Bournemouth, Dorset, BH1 4LG.
The ultimate controlling parties of Sherborne Holdings Limited are the majority shareholders C J Sherborne and J R Sherborne.