Company registration number 09226337 (England and Wales)
TMG Fuels Limited
Annual report and Financial Statements
For the year ended 30 April 2023
TMG Fuels Limited
Company information
Director
Mr A D Griffiths
Secretary
Mrs M Griffiths
Company number
09226337
Registered office
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Auditor
DJH Mitten Clarke Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
TMG Fuels Limited
Contents
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of income and retained earnings
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of cash flows
12
Notes to the financial statements
13 - 27
TMG Fuels Limited
Strategic report
For the year ended 30 April 2023
- 1 -

The director presents the strategic report for the year ended 30 April 2023.

Review of the business

The group's principal activity is that of a registered dealer in controlled oils, selling various fuels to domestic, commercial and agricultural customers.

 

We are one of the few remaining family owned and independent fuel suppliers, delivering home heating oil, red diesel, road diesel and lubricants. We enjoy serving our loyal customer base with fair pricing, family values, honesty and good service.

 

The group operates from two locations based in Stoke-on-Trent and the Midlands and has approximately twenty five staff in total.

 

Going forward, we aim to steadily grow all members of the group by both increasing existing customers credit lines and organic growth. We have a loyal customer base and work closely with them in order to fulfil their requirements. We don’t rely heavily on a small number of clients; our clients are quite equally spread which minimises risk to the business. Steady growth also allows us to plan long term with regards to fuel tankers and staff training, tankers can take up to one year to be delivered, from point of order, therefore its good practice to accept these expectations to keep the smooth running of the business.

 

With regards to suppliers, we also work closely with them and have long term relationships, which have benefited us with the recent rise in costs, so our future plans are to maintain these ‘partnerships’ and work alongside our current suppliers so supply is not affected in any way.

 

The balance between customers and suppliers is equally important to us and value both sides.

Principal risks and uncertainties

As with any business the director is aware that risks exist which can adversely affect the performance of the group. The director has taken steps to identify and monitor these risks to assist in minimising their impact.

 

We continue to work closely within the current market and regularly review fuel prices with the assistance of our suppliers. Our costs and prices are somewhat dictated by the real time markets and we need to ensure we have up to date information

 

The director has confidence that there is a realistic opportunity to develop the business further by way of more fuel trucks and then delivering larger volumes of fuel.

Development and performance

Turnover as disclosed in the statement of income and retained earnings on page 9 comprises the sale of these fuels to our UK based customers. Overall sales have increased in value by 21.94%, £66,337,907 in 2023 compared to £54,401,045 in 2022. This increase is due to a combination of factors: the cost of fuel increasing drastically and an increase in volumes sold. There was also a government change which took effect from 1st April 2022 – where many businesses can no longer use red diesel in their machines, which has resulted in their fuel costs almost doubling.

 

Gross profit margin percentage has decreased by 0.2% in the 12 months to 30 April 2023 to 3.89% (2022 – 4.09%), operating profit has increased by £244,630 to £1,468,869 (2022 - £1,244,239)

 

The group reported a profit before tax of £1,456,060 compared with the previous year (2022) of £1,232,999.

TMG Fuels Limited
Strategic report (continued)
For the year ended 30 April 2023
- 2 -
Key performance indicators

We consider that our key financial performance indicators are the volumes of fuel we sell and the margins at which we sell it, margins in the industry are generally low, so we need to ensure a minimum volume level in order to maintain our profitability and cover our overhead costs.

 

Total volumes sold

2023 - 40,984,499 litres

2022 - 44,901,093 litres

 

On behalf of the board

Mr A D Griffiths
Director
27 October 2023
TMG Fuels Limited
Director's report
For the year ended 30 April 2023
- 3 -

The director presents his annual report and financial statements for the year ended 30 April 2023.

Principal activities

The principal activity of the group is that of a wholesale fuel supply to corporate bodies and members of the public.

 

The principal activity of the company continued to be that of a holding company.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £167,200. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr A D Griffiths
Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr A D Griffiths
Director
27 October 2023
TMG Fuels Limited
Director's responsibilities statement
For the year ended 30 April 2023
- 4 -

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

TMG Fuels Limited
Independent auditor's report
To the members of TMG Fuels Limited
- 5 -
Opinion

We have audited the financial statements of TMG Fuels Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the group statement of income and retained earnings, the group statement of financial position, the company statement of financial position, the group 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 director's 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 and 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 director 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 director is 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.

TMG Fuels Limited
Independent auditor's report (continued)
To the members of TMG Fuels Limited
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

TMG Fuels Limited
Independent auditor's report (continued)
To the members of TMG Fuels Limited
- 7 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company and group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. 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.

TMG Fuels Limited
Independent auditor's report (continued)
To the members of TMG Fuels Limited
- 8 -
Stacey Parr FCCA (Senior Statutory Auditor)
For and on behalf of DJH Mitten Clarke Audit Limited
31 October 2023
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
TMG Fuels Limited
Group statement of income and retained earnings
For the year ended 30 April 2023
- 9 -
2023
2022
Notes
£
£
Turnover
2
66,337,907
54,401,045
Cost of sales
(63,759,014)
(52,177,637)
Gross profit
2,578,893
2,223,408
Administrative expenses
(1,130,835)
(1,000,555)
Other operating income
20,811
21,386
Operating profit
3
1,468,869
1,244,239
Interest receivable and similar income
6
3,319
2,805
Interest payable and similar expenses
7
(16,128)
(14,045)
Profit before taxation
1,456,060
1,232,999
Tax on profit
8
(317,937)
(224,803)
Profit for the financial year
22
1,138,123
1,008,196
Retained earnings brought forward
2,626,270
1,836,174
Dividends
(167,200)
(218,100)
Retained earnings carried forward
3,597,193
2,626,270
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
TMG Fuels Limited
Group statement of financial position
As at 30 April 2023
30 April 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
996,518
696,456
Current assets
Stocks
13
73,629
280,601
Debtors
14
5,088,265
6,709,560
Cash at bank and in hand
1,748,507
782,077
6,910,401
7,772,238
Creditors: amounts falling due within one year
15
(3,809,567)
(5,504,432)
Net current assets
3,100,834
2,267,806
Total assets less current liabilities
4,097,352
2,964,262
Creditors: amounts falling due after more than one year
16
(263,957)
(211,090)
Provisions for liabilities
Deferred tax liability
19
236,100
126,800
(236,100)
(126,800)
Net assets
3,597,295
2,626,372
Capital and reserves
Called up share capital
21
102
102
Profit and loss reserves
22
3,597,193
2,626,270
Total equity
3,597,295
2,626,372
The financial statements were approved and signed by the director and authorised for issue on 27 October 2023
27 October 2023
Mr A D Griffiths
Director
Company registration number 09226337 (England and Wales)
TMG Fuels Limited
Company statement of financial position
As at 30 April 2023
30 April 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
11
101
101
Current assets
Debtors
14
1
1
Net current assets
1
1
Net assets
102
102
Capital and reserves
Called up share capital
21
102
102

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £167,200 (2022 - £218,100 profit).

The financial statements were approved and signed by the director and authorised for issue on 27 October 2023
27 October 2023
Mr A D Griffiths
Director
Company registration number 09226337 (England and Wales)
TMG Fuels Limited
Group statement of cash flows
For the year ended 30 April 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
1,697,182
(18,608)
Interest paid
(16,128)
(14,045)
Income taxes paid
(194,803)
(130,301)
Net cash inflow/(outflow) from operating activities
1,486,251
(162,954)
Investing activities
Purchase of tangible fixed assets
(538,962)
(70,024)
Proceeds from disposal of tangible fixed assets
65,835
577
Repayment of loans
(115,952)
-
Interest received
3,319
2,805
Net cash used in investing activities
(585,760)
(66,642)
Financing activities
Repayment of bank loans
(32,043)
(29,374)
Payment of finance leases obligations
107,317
(169,904)
Dividends paid to equity shareholders
(167,200)
(218,100)
Net cash used in financing activities
(91,926)
(417,378)
Net increase/(decrease) in cash and cash equivalents
808,565
(646,974)
Cash and cash equivalents at beginning of year
626,935
1,273,909
Cash and cash equivalents at end of year
1,435,500
626,935
Relating to:
Cash at bank and in hand
1,748,507
782,077
Bank overdrafts included in creditors payable within one year
(313,007)
(155,142)
TMG Fuels Limited
Notes to the group financial statements
For the year ended 30 April 2023
- 13 -
1
Accounting policies
Company information

TMG Fuels Limited ("the company") is a private company limited by shares incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke-on-Trent, Staffordshire, United Kingdom, ST1 5TQ.

 

The group consists of TMG Fuels Limited and all of its subsidiaries.

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.

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.

The company is a qualifying entity for the purposes of FRS 102, being the parent of that group prepares publicly available consolidated financial statements, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company TMG Fuels Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 April 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 14 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
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:

Leasehold land and buildings
4% on cost
Plant and equipment
33.33% on cost
Fixtures and fittings
33% on reducing balance / 20% on reducing balance
Computers
20% reducing balance
Motor vehicles
20% on reducing balance

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 recognised in the income statement.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 15 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.8
Stocks

Stocks are stated at the lower of cost and net realisable value (estimated selling price less costs to complete and sell). Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the weighted average cost formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 and cash and bank balances and loans to related parties, 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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, 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.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
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 income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 17 -
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.

 

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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

1.13
Employee benefits

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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

2
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Diesel
47,956,001
32,808,258
Gas oil
8,476,658
14,274,829
Kerosene
6,403,761
4,928,050
Petrol
3,259,943
2,179,518
Other
241,544
210,390
66,337,907
54,401,045
TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
2
Turnover and other revenue
(Continued)
- 18 -
2023
2022
£
£
Other revenue
Interest income
3,319
2,805
3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
80,053
71,401
Depreciation of tangible fixed assets held under finance leases
77,216
59,419
Loss on disposal of tangible fixed assets
15,796
253
Operating lease charges
49,377
67,576
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,050
2,000
Audit of the financial statements of the company's subsidiaries
18,400
16,750
24,450
18,750
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
1
1
-
-
Staff
24
23
-
-
Total
25
24
-
0
-
0
TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
742,127
681,806
-
0
-
0
Social security costs
63,400
63,513
-
-
Pension costs
83,231
126,263
-
0
-
0
888,758
871,582
-
0
-
0
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,683
2,352
Other interest income
1,636
453
Total income
3,319
2,805
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
981
3,231
Interest on finance leases and hire purchase contracts
15,061
10,765
Other interest
86
49
Total finance costs
16,128
14,045
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
208,637
194,803
Deferred tax
Origination and reversal of timing differences
109,300
30,000
Total tax charge
317,937
224,803
TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
8
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,456,060
1,232,999
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
276,651
234,270
Tax effect of expenses that are not deductible in determining taxable profit
4,427
1,823
Effect of change in corporation tax rate
44,818
-
Depreciation on assets not qualifying for tax allowances
-
0
375
Other permanent differences
-
0
(93)
Enhanced capital allowances
(7,959)
(11,572)
Taxation charge
317,937
224,803

Factors that may affect future tax charges:

 

The UK Budget announcements on 23 September 2022 included an increase to the UK's main corporation tax rate to 25%, which is due to be effective from 1 April 2023.

9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
167,200
218,100
TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 21 -
10
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2022
180,304
73,655
92,803
10,306
844,797
1,201,865
Additions
19,375
242,017
10,838
-
0
266,732
538,962
Disposals
-
0
-
0
(7,836)
-
0
(175,750)
(183,586)
At 30 April 2023
199,679
315,672
95,805
10,306
935,779
1,557,241
Depreciation and impairment
At 1 May 2022
82,584
59,249
74,288
4,227
285,061
505,409
Depreciation charged in the year
7,276
20,561
5,838
1,216
122,378
157,269
Eliminated in respect of disposals
-
0
-
0
(5,708)
-
0
(96,247)
(101,955)
At 30 April 2023
89,860
79,810
74,418
5,443
311,192
560,723
Carrying amount
At 30 April 2023
109,819
235,862
21,387
4,863
624,587
996,518
At 30 April 2022
97,720
14,406
18,515
6,079
559,736
696,456
The company had no tangible fixed assets at 30 April 2023 or 30 April 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
458,724
423,024
-
0
-
0
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
101
101
TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
11
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2022 and 30 April 2023
101
Carrying amount
At 30 April 2023
101
At 30 April 2022
101
12
Subsidiaries

Details of the company's subsidiaries at 30 April 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Potteries Fuels Limited
The Glades, Festival Way, Stoke on Trent, Staffordshire, ST1 5SQ
Ordinary
100.00
East Midlands Fuels Limited
The Glades, Festival Way, Stoke on Trent, Staffordshire, ST1 5SQ
Ordinary
100.00
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
73,629
280,601
-
0
-
0
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,724,445
6,378,477
-
0
-
0
Corporation tax recoverable
18,811
18,811
-
0
-
0
Other debtors
270,975
258,430
1
1
Prepayments and accrued income
74,034
53,842
-
0
-
0
5,088,265
6,709,560
1
1
TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 23 -
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
17
323,528
186,849
-
0
-
0
Obligations under finance leases
18
140,207
96,614
-
0
-
0
Trade creditors
3,114,197
4,992,833
-
0
-
0
Corporation tax payable
208,637
194,803
-
0
-
0
Other taxation and social security
20,624
24,172
-
-
Other creditors
-
0
5,403
-
0
-
0
Accruals and deferred income
2,374
3,758
-
0
-
0
3,809,567
5,504,432
-
0
-
0

Amounts due under finance leases and hire purchase contracts are secured against the assets which they relate to.

16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
17
-
0
10,857
-
0
-
0
Obligations under finance leases
18
263,957
200,233
-
0
-
0
263,957
211,090
-
-

Amounts due under finance leases and hire purchase contracts are secured against the assets which they relate to.

17
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
10,521
42,564
-
0
-
0
Bank overdrafts
313,007
155,142
-
0
-
0
323,528
197,706
-
-
Payable within one year
323,528
186,849
-
0
-
0
Payable after one year
-
0
10,857
-
0
-
0

The bank loan is secured by a fixed and floating charge over the assets of the company.

TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
17
Loans and overdrafts
(Continued)
- 24 -

Long term debt is in the form of a bank loan. The loan is capital repayment interest, bearing an interest rate of 2.87% per annum over base rate, maturing on August 2023.

18
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
140,207
96,614
-
0
-
0
In two to five years
263,957
200,233
-
0
-
0
404,164
296,847
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
236,100
126,800
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 May 2022
126,800
-
Charge to profit or loss
109,300
-
Liability at 30 April 2023
236,100
-
TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 25 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
83,231
126,263

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
102
102
102
102

The ordinary shares have attached to them full voting, dividend and capital distribution rights. They do not confer any rights of redemption.

22
Reserves
Profit and loss reserves

The retained earnings reserve represents the retained earnings of the group after the payment of dividends.

23
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
90,848
70,942
-
-
Between two and five years
141,958
118,929
-
-
In over five years
15,000
-
-
-
247,806
189,871
-
-
TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 26 -
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
339,480
182,750
-
-
25
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
14,833,431
12,647,601
2,590
398,828

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
889,873
1,065,685
26
Controlling party

There is no ultimate controlling party.

27
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors loan account
-
(36)
286,149
1,636
(171,797)
115,952
(36)
286,149
1,636
(171,797)
115,952
TMG Fuels Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 27 -
28
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
1,138,123
1,008,196
Adjustments for:
Taxation charged
317,937
224,803
Finance costs
16,128
14,045
Investment income
(3,319)
(2,805)
Loss on disposal of tangible fixed assets
15,796
253
Depreciation and impairment of tangible fixed assets
157,269
130,820
Movements in working capital:
Decrease/(increase) in stocks
206,972
(150,911)
Decrease/(increase) in debtors
1,737,247
(2,125,251)
(Decrease)/increase in creditors
(1,888,971)
882,242
Cash generated from/(absorbed by) operations
1,697,182
(18,608)
29
Analysis of changes in net funds - group
1 May 2022
Cash flows
30 April 2023
£
£
£
Cash at bank and in hand
782,077
966,430
1,748,507
Bank overdrafts
(155,142)
(157,865)
(313,007)
626,935
808,565
1,435,500
Borrowings excluding overdrafts
(42,564)
32,043
(10,521)
Obligations under finance leases
(296,847)
(107,317)
(404,164)
287,524
733,291
1,020,815
2023-04-302022-05-01falseCCH SoftwareCCH Accounts Production 2023.300Mr A D GriffithsMrs M Griffithsfalse092263372022-05-012023-04-3009226337bus:Director12022-05-012023-04-3009226337bus:CompanySecretary12022-05-012023-04-3009226337bus:RegisteredOffice2022-05-012023-04-3009226337bus:Consolidated2023-04-30092263372023-04-3009226337bus:Consolidated2022-05-012023-04-3009226337bus:Consolidated2021-05-012022-04-3009226337bus:Consolidated2022-04-3009226337core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-04-3009226337core:PlantMachinerybus:Consolidated2023-04-3009226337core:FurnitureFittingsbus:Consolidated2023-04-3009226337core:ComputerEquipmentbus:Consolidated2023-04-3009226337core:MotorVehiclesbus:Consolidated2023-04-3009226337core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-04-3009226337core:PlantMachinerybus:Consolidated2022-04-3009226337core:FurnitureFittingsbus:Consolidated2022-04-3009226337core:ComputerEquipmentbus:Consolidated2022-04-3009226337core:MotorVehiclesbus:Consolidated2022-04-3009226337core:ShareCapitalbus:Consolidated2023-04-3009226337core:ShareCapitalbus:Consolidated2022-04-3009226337core:ShareCapital2023-04-3009226337core:ShareCapital2022-04-30092263372022-04-3009226337bus:Consolidated2021-04-3009226337core:LandBuildingscore:LongLeaseholdAssets2022-05-012023-04-3009226337core:PlantMachinery2022-05-012023-04-3009226337core:FurnitureFittings2022-05-012023-04-3009226337core:ComputerEquipment2022-05-012023-04-3009226337core:MotorVehicles2022-05-012023-04-30092263372021-05-012022-04-3009226337core:UKTaxbus:Consolidated2022-05-012023-04-3009226337core:UKTaxbus:Consolidated2021-05-012022-04-3009226337bus:Consolidated12022-05-012023-04-3009226337bus:Consolidated12021-05-012022-04-3009226337bus:Consolidated22022-05-012023-04-3009226337bus:Consolidated22021-05-012022-04-3009226337core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-04-3009226337core:PlantMachinerybus:Consolidated2022-04-3009226337core:FurnitureFittingsbus:Consolidated2022-04-3009226337core:ComputerEquipmentbus:Consolidated2022-04-3009226337core:MotorVehiclesbus:Consolidated2022-04-3009226337bus:Consolidated2022-04-3009226337core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-05-012023-04-3009226337core:PlantMachinerybus:Consolidated2022-05-012023-04-3009226337core:FurnitureFittingsbus:Consolidated2022-05-012023-04-3009226337core:ComputerEquipmentbus:Consolidated2022-05-012023-04-3009226337core:MotorVehiclesbus:Consolidated2022-05-012023-04-3009226337core:MotorVehicles2023-04-3009226337core:MotorVehicles2022-04-3009226337core:Subsidiary12022-05-012023-04-3009226337core:Subsidiary112022-05-012023-04-300922633722022-05-012023-04-300922633712022-05-012023-04-3009226337core:CurrentFinancialInstruments2023-04-3009226337core:CurrentFinancialInstruments2022-04-3009226337core:CurrentFinancialInstrumentsbus:Consolidated2023-04-3009226337core:CurrentFinancialInstrumentsbus:Consolidated2022-04-3009226337core:WithinOneYearbus:Consolidated2023-04-3009226337core:WithinOneYearbus:Consolidated2022-04-3009226337core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3009226337core:CurrentFinancialInstrumentscore:WithinOneYear2022-04-3009226337core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-04-3009226337core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-04-3009226337core:Non-currentFinancialInstrumentscore:AfterOneYear2023-04-3009226337core:Non-currentFinancialInstrumentscore:AfterOneYear2022-04-3009226337core:Non-currentFinancialInstrumentsbus:Consolidated2023-04-3009226337core:Non-currentFinancialInstrumentsbus:Consolidated2022-04-3009226337core:Non-currentFinancialInstruments2023-04-3009226337core:Non-currentFinancialInstruments2022-04-3009226337core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-04-3009226337core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-04-3009226337core:WithinOneYear2023-04-3009226337core:WithinOneYear2022-04-3009226337core:BetweenTwoFiveYearsbus:Consolidated2023-04-3009226337core:BetweenTwoFiveYearsbus:Consolidated2022-04-3009226337core:BetweenTwoFiveYears2023-04-3009226337core:BetweenTwoFiveYears2022-04-3009226337bus:PrivateLimitedCompanyLtd2022-05-012023-04-3009226337bus:FRS1022022-05-012023-04-3009226337bus:Audited2022-05-012023-04-3009226337bus:ConsolidatedGroupCompanyAccounts2022-05-012023-04-3009226337bus:FullAccounts2022-05-012023-04-30xbrli:purexbrli:sharesiso4217:GBP