Company registration number 03003391 (England and Wales)
THOMPSONS PLANT HIRE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
THOMPSONS PLANT HIRE LIMITED
COMPANY INFORMATION
Directors
Mr KV Thompson
Mrs LM Porter
Secretary
Mrs LM Porter
Company number
03003391
Registered office
Risehow Industrial Estate
Flimby
Maryport
Cumbria
England
CA15 8PD
Auditor
Gibbons Chartered Accountants
Carleton House
136 Gray Street
Workington
Cumbria
CA14 2LU
THOMPSONS PLANT HIRE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
THOMPSONS PLANT HIRE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

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

Review of the business

The directors are pleased with the profits that the trading activities have achieved in the year. They believe the company will continue to trade profitably and continue to monitor its operations to take advantage of business opportunities. The directors are confident that the company has sufficient resources to take advantage of these opportunities as they arise.

Principal risks and uncertainties

The company is not immune to risks and has procedures in place aimed to minimise the possibility and scale of specific risks that may impact the company. The directors are involved in the day to day running of the company and believe new risks that arise can be easily identified. A principal risk to the company is its dependence on key customers. The risk was identified and action taken to diversify its operations, whenever the opportunity has arisen.

Key performance indicators

The company's key financial and other performance indicators during the year were as follows:

 

 

 

Unit

2023

2022

Turnover    

£

12,460,659

12,444,216

Turnover growth

%

0.1

10.2

Gross profit margin

%

15.7

9.3

Profit before tax

£

1,112,839

428,626

Net assets

£

7,061,700

6,147,888

 

 

The company can manage its affairs with the above basic KPIs no other KPIs are relevant to business decisions.

On behalf of the board

Mr KV Thompson
Director
20 September 2023
THOMPSONS PLANT HIRE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of plant hire contractors, hauliers, waste disposal service providers and contract chipping and shredding.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £67,200. The directors do not recommend payment of a final dividend.

Directors

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

Mr KV Thompson
Mrs LM Porter
Financial instruments

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

The company uses various financial instruments which include hire purchase agreements and bank loans. The main purpose of these financial instruments is to raise finance for the company's operations (working capital) and to facilitate the growth of the company. The company aims to ensure that adequate finance can be made available to take advantage of all business opportunities arising and the directors consider the state of affairs to be satisfactory as the company is in a strong financial position.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

 

Loans comprise of loans from the directors and from financial institutions. The company manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

Future developments

In the next financial year the directors believe that the company will trade profitably and produce results which compare favourably to previous years.

Auditor

In accordance with the company's articles, a resolution proposing that Gibbons Chartered Accountants be reappointed as auditor of the company will be put at a General Meeting.

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 company’s auditor 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 company’s auditor is aware of that information.

THOMPSONS PLANT HIRE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
On behalf of the board
Mr KV Thompson
Director
20 September 2023
THOMPSONS PLANT HIRE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

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:

 

 

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.

THOMPSONS PLANT HIRE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF THOMPSONS PLANT HIRE LIMITED
- 5 -
Opinion

We have audited the financial statements of Thompsons Plant Hire Limited (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

THOMPSONS PLANT HIRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF THOMPSONS PLANT HIRE LIMITED
- 6 -
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 or 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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'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.

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's financial statements to material misstatements including obtaining an understanding of how fraud might occur, by:

THOMPSONS PLANT HIRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF THOMPSONS PLANT HIRE LIMITED
- 7 -

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

In response to the risk of fraud through management bias and override of controls, we:

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Hollie Stanger
Senior Statutory Auditor
For and on behalf of Gibbons Chartered Accountants
28 September 2023
Carleton House
136 Gray Street
Workington
Cumbria
CA14 2LU
THOMPSONS PLANT HIRE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
12,460,659
12,444,216
Cost of sales
(10,504,782)
(11,282,221)
Gross profit
1,955,877
1,161,995
Administrative expenses
(759,972)
(622,783)
Other operating income
77,327
44,733
Operating profit
4
1,273,232
583,945
Interest payable and similar expenses
8
(160,393)
(155,319)
Profit before taxation
1,112,839
428,626
Tax on profit
9
(131,827)
(113,033)
Profit for the financial year
981,012
315,593

The profit and loss account has been prepared on the basis that all operations are continuing operations.

THOMPSONS PLANT HIRE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Profit for the year
981,012
315,593
Other comprehensive income
-
-
Total comprehensive income for the year
981,012
315,593
THOMPSONS PLANT HIRE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
9,802,325
11,750,042
Current assets
Stocks
12
178,304
303,650
Debtors
13
2,588,293
3,212,878
Cash at bank and in hand
1,473,885
389,109
4,240,482
3,905,637
Creditors: amounts falling due within one year
14
(3,306,621)
(4,342,882)
Net current assets/(liabilities)
933,861
(437,245)
Total assets less current liabilities
10,736,186
11,312,797
Creditors: amounts falling due after more than one year
15
(2,667,516)
(4,289,766)
Provisions for liabilities
Deferred tax liability
18
1,006,970
875,143
(1,006,970)
(875,143)
Net assets
7,061,700
6,147,888
Capital and reserves
Called up share capital
21
37,500
37,500
Profit and loss reserves
7,024,200
6,110,388
Total equity
7,061,700
6,147,888
The financial statements were approved by the board of directors and authorised for issue on 20 September 2023 and are signed on its behalf by:
Mr KV Thompson
Director
Company Registration No. 03003391
THOMPSONS PLANT HIRE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
37,500
5,861,995
5,899,495
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
315,593
315,593
Dividends
10
-
(67,200)
(67,200)
Balance at 31 March 2022
37,500
6,110,388
6,147,888
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
981,012
981,012
Dividends
10
-
(67,200)
(67,200)
Balance at 31 March 2023
37,500
7,024,200
7,061,700
THOMPSONS PLANT HIRE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
3,819,159
1,751,196
Interest paid
(160,393)
(155,319)
Income taxes paid
-
0
(150,673)
Net cash inflow from operating activities
3,658,766
1,445,204
Investing activities
Purchase of tangible fixed assets
(2,213,522)
(3,243,143)
Proceeds on disposal of tangible fixed assets
2,247,665
1,009,852
Net cash generated from/(used in) investing activities
34,143
(2,233,291)
Financing activities
Proceeds from borrowings
1,370,084
2,878,751
Proceeds from/(repayment) of borrowings
10,534
4,089
Repayment of bank loans
(107,963)
(47,840)
Payment of finance leases obligations
(3,813,588)
(2,837,260)
Dividends paid
(67,200)
(67,200)
Net cash used in financing activities
(2,608,133)
(69,460)
Net increase/(decrease) in cash and cash equivalents
1,084,776
(857,547)
Cash and cash equivalents at beginning of year
389,109
1,246,656
Cash and cash equivalents at end of year
1,473,885
389,109
THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
1
Accounting policies
Company information

Thompsons Plant Hire Limited is a private company limited by shares incorporated in England and Wales. The registered office is Risehow Industrial Estate, Flimby, Maryport, Cumbria, England, CA15 8PD.

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.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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.

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.

1.4
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:

Freehold land and buildings
0%, 10% and 25% reducing balance basis
Plant and equipment
10%-25% reducing balance basis

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.

1.5
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.

THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.8
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 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.

THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
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.

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 company 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 company 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 company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
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.

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.

1.11
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.

 

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.

1.12
Retirement benefits

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

1.13
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 balance sheet 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.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation of tangible fixed assets

Depreciation is charged on tangible fixed assets in accordance with the accounting policies listed out above. The depreciation charge for the year is an estimation of the impairment on the tangible fixed assets held by the company and is at the discretion of the directors, based on their experience of typical rates of reduction in value.

 

The depreciation charge for the year was £2,262,967 (2022 - £2,763,486) and at the reporting date the carrying amount of the tangible fixed assets was £9,802,325(2022 - £11,750,042).

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales
12,444,215
11,291,737
2023
2022
£
£
Other significant revenue
Grants received
3,912
26,300
2023
2022
£
£
Turnover analysed by geographical market
UK
12,444,215
11,291,737

Grants received in respect of expenditure that is capital in nature is included in the balance sheet as deferred income and is released to the profit and loss account at a rate in accordance with the rate of depreciation of the asset to which it relates. The amounts of deferred grants released to profit and loss in the financial statements was £3,912 (2022 - £3,912).

 

The company received £Nil (2022 - £1,795) from HMRC for the Coronavirus Job Retention scheme.

 

THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(2,324)
872
Government grants
(3,912)
(26,300)
Depreciation of owned tangible fixed assets
2,262,967
2,763,486
Profit on disposal of tangible fixed assets
(349,393)
(410,170)
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
7,780
7,410
6
Employees

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

2023
2022
Number
Number
Direct staff
72
89
Admin staff
6
6
Directors
2
2
Total
80
97

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,392,817
3,820,094
Social security costs
350,311
365,008
Pension costs
372,726
186,282
4,115,854
4,371,384
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
25,525
20,504
Company pension contributions to defined contribution schemes
156,985
66,829
182,510
87,333
THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Directors' remuneration
(Continued)
- 19 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,123
3,661
Other finance costs:
Interest on finance leases and hire purchase contracts
159,270
151,658
160,393
155,319
9
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
-
0
(204,402)
Deferred tax
Origination and reversal of timing differences
131,827
317,435
Total tax charge
131,827
113,033

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
1,112,839
428,626
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
211,439
81,439
Tax effect of expenses that are not deductible in determining taxable profit
(8,761)
12,388
Tax effect of income not taxable in determining taxable profit
(743)
(743)
Effect of change in corporation tax rate
-
0
210,034
Depreciation on assets not qualifying for tax allowances
4,770
4,497
Deferred tax adjustments in respect of prior years
941
-
0
Other timing differences
(2,570)
(29,639)
Capital allowances in excess of depreciation
(73,249)
(164,943)
Taxation charge for the year
131,827
113,033
THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
10
Dividends
2023
2022
£
£
Interim paid
67,200
67,200
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 April 2022
1,173,300
22,728,929
23,902,229
Additions
27,390
2,186,132
2,213,522
Disposals
-
0
(4,894,153)
(4,894,153)
At 31 March 2023
1,200,690
20,020,908
21,221,598
Depreciation and impairment
At 1 April 2022
153,231
11,998,956
12,152,187
Depreciation charged in the year
35,280
2,227,687
2,262,967
Eliminated in respect of disposals
-
0
(2,995,881)
(2,995,881)
At 31 March 2023
188,511
11,230,762
11,419,273
Carrying amount
At 31 March 2023
1,012,179
8,790,146
9,802,325
At 31 March 2022
1,020,069
10,729,973
11,750,042
12
Stocks
2023
2022
£
£
Raw materials and consumables
59,569
130,696
Work in progress
118,735
172,954
178,304
303,650
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,055,179
2,775,129
Corporation tax recoverable
204,402
204,402
Other debtors
300,000
200,000
Prepayments and accrued income
28,712
33,347
2,588,293
3,212,878
THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
-
0
46,972
Obligations under finance leases
17
2,051,728
2,937,885
Other borrowings
16
18,580
8,046
Trade creditors
797,932
660,242
Taxation and social security
312,953
347,184
Deferred income
19
3,912
3,912
Other creditors
7,100
15,097
Accruals and deferred income
114,416
323,544
3,306,621
4,342,882
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
-
0
60,991
Obligations under finance leases
17
2,625,448
4,182,795
Deferred income
19
42,068
45,980
2,667,516
4,289,766
16
Loans and overdrafts
2023
2022
£
£
Bank loans
-
0
107,963
Other loans
18,580
8,046
18,580
116,009
Payable within one year
18,580
55,018
Payable after one year
-
0
60,991

 

THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
16
Loans and overdrafts
(Continued)
- 22 -

Loan (1) is denominated in sterling with a nominal interest rate of 2.7% plus base. The carrying amount for the year ended 31 March 2022 was £80,046. The loan has been fully repaid during the year.

 

The lender had first legal charge over plot H, Risehow Industrial Estate, Flimby, Maryport, CA15 8PD and an all monies debenture granted by Thompsons Plant Hire Limited over the whole assets of the company. This charge was satisfied on 25 May 2023.

 

Loan (2) is denominated in sterling with a nominal interest rate of 1.95% plus base. The carrying amount for the year ended 31 March 2022 was £27,917. The loan has been fully repaid during the year.

 

The lender had first legal charge over land and buildings and first legal charge over land and premises on/at Risehow Industrial Estate, Flimby, Maryport, Cumbria, CA15 8PD. This charge was satisfied on 25 May 2023.

 

17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
2,051,728
2,937,885
In two to five years
2,625,448
4,182,795
4,677,176
7,120,680

Finance lease payments represent rentals payable by the company 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.

18
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,398,817
1,174,431
Tax losses
(391,847)
(299,288)
1,006,970
875,143
2023
Movements in the year:
£
Liability at 1 April 2022
875,143
Charge to profit or loss
131,827
Liability at 31 March 2023
1,006,970
THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
18
Deferred taxation
(Continued)
- 23 -

The UK has enacted legislation to increase effective corporation tax rates when the deferred tax liabilities are forecast to unwind.

19
Deferred income
2023
2022
£
£
Arising from government grants
7,824
7,824
Other deferred income
38,156
42,068
45,980
49,892
Included in the financial statements as follows:
Current liabilities
3,912
3,912
Non-current liabilities
42,068
45,980
45,980
49,892
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
372,726
186,282

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' shares of £1 each
7,500
7,500
7,500
7,500
Ordinary 'B' shares of £1 each
30,000
30,000
30,000
30,000
37,500
37,500
37,500
37,500

Ordinary A Shares have full rights in respect of: a) voting rights; b) rights to dividends, and c) rights to participate in capital on winding up of the company. The shares are not redeemable.

 

Ordinary B Shares have no voting rights or rights to a dividend. Ordinary B shares rank in priority to Ordinary A shares for the right to participate to capital on winding up of the company.

22
Related party transactions
Transactions with related parties
THOMPSONS PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
22
Related party transactions
(Continued)
- 24 -

There is a related party of which Mr K V Thompson is a director and shareholder.

The company has made sales of £56,542 (2022 - £13,135) to the related party.

The company has made purchases of £386,387 (2022 - £123.195) from the related party.

At the year end the balance owed to the related party was £100,571 (2022 - £60,054).

At the year end the balance owed from the related party was £46,574 (2022 - £1,598).

The company has a loan extended to the related party of £300,000 (2022 - £200,000). The loan is unsecured, interest free, and payable on demand.

 

There is a related party of which Mrs L Porter is a director and shareholder.

The company has made sales of £Nil (2022 - £4,393) to the related party.

The company has made purchases of £2,585 (2022 - £Nil) from the related party.

At the year end the balance owed from the related party was £Nil (2022 - £939).

23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
981,012
315,593
Adjustments for:
Taxation charged
131,827
113,033
Finance costs
160,393
155,319
Gain on disposal of tangible fixed assets
(349,393)
(410,170)
Depreciation and impairment of tangible fixed assets
2,262,967
2,763,486
Movements in working capital:
Decrease/(increase) in stocks
125,346
(192,258)
Decrease/(increase) in debtors
624,585
(1,156,861)
(Decrease)/increase in creditors
(113,666)
166,966
Decrease in deferred income
(3,912)
(3,912)
Cash generated from operations
3,819,159
1,751,196
24
Analysis of changes in net debt
1 April 2022
Cash flows
New finance leases
31 March 2023
£
£
£
£
Cash at bank and in hand
389,109
1,084,776
-
1,473,885
Borrowings excluding overdrafts
(116,009)
97,429
-
(18,580)
Obligations under finance leases
(7,120,680)
3,813,588
(1,370,084)
(4,677,176)
(6,847,580)
4,995,793
(1,370,084)
(3,221,871)
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