Company registration number 11913610 (England and Wales)
SHORTS GROUP (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
SHORTS GROUP (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
D P Guest
G J D Short
Company number
11913610
Registered office
London Court
London Road
Bracknell
Berkshire
United Kingdom
RG12 2UT
Auditor
Azets Audit Services
Suites B & D
Burnham Yard
Beaconsfield
Bucks
United Kingdom
HP9 2JH
SHORTS GROUP (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 33
SHORTS GROUP (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

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

Review of the business

The group recorded a net profit before tax of £1,004,927 (2022: £2,160,429). Overall, turnover has remained resilient, but the business has faced margin pressures.

There are strong headwinds that are impacting all UK businesses, including high inflation, delays in capital equipment due to supply chain issues, instability in energy and fuel prices, increased interest rates and shortages of skilled workers.

The business has been impacted by these factors, but encouragingly with fuel prices easing and an improvement in the order book, the last quarter of the year demonstrated improved margins.

During the latter part of the year, the business has been restructured to separate transport and logistics from sales, with Heads of Department for each function. This has created an environment that will allow a focus on driving efficient use of our fleet, while focussing on a high performing sales structure to grow revenues. While recruitment of strong candidates is still challenging, the platform now provides a solid base which will support the future requirements of the business.

The business has also internalised cost, which will ultimately reflect in improved margins. We now run a fleet of articulated tractors with associated bulkers, curtainsiders, and low loader trailers.

Supply contracts have also been negotiated which give stability in pricing and visibility of long-term costs for major parts of our cost base, which will further enhance margins in the business from 2024 onwards.

The year has also resulted in new business platforms and new services being introduced. The business now operates a ‘buy online’ web portal with the aim of significantly improving our customer experience. This has increased volumes of on-line business considerably. Furthermore, we have also introduced bagged material sales in which customers can quickly and easily buy 1 tonne bags of topsoil, compost, aggregates, and firewood.

SHORTS GROUP (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
Principal risks and uncertainties

 

Economic Risk

In the longer term, there is a link between demand for our services and levels of economic activity. The construction industry, which affects our business, is cyclical and typically lags the general economic cycle by between 12 and 24 months. This risk is mitigated by prudent management through the business cycle and ensuring financial structure around capital investments are appropriate.

 

Competitive risk

The already competitive market could become even more competitive, and we could suffer increased competition from large national competitors or small companies operating at a local level resulting in reduced market share and lower revenue. This risk is mitigated by creating commercial advantage through ensuring consistently high levels of customer service, and regular benchmarking of our competitors.

 

Headcount risk

Retaining and attracting good people is key to delivering superior performance and customer service. Excessive staff turnover is likely to impact on our ability to maintain the appropriate quality of service to our customers and would ultimately impact our financial performance adversely. This risk is mitigated by investing in training and development as well as continual review of market conditions to ensure we attract and retain the employees we need.

 

Health and safety risk

We need to comply with laws and regulations governing occupational health and safety matters. Furthermore, accidents could happen which might result in injury to an individual, claims against the group and damage to our reputation. This risk is mitigated by maintaining appropriate policies to comply with law and to reasonably guide our employees against the risk of injury. We have also implemented drug and alcohol testing to ensure our employees maintain our required standards.

 

Environmental risk

We are committed to minimising the negative environmental effects of the disposal of waste as well as ensuring compliance with all applicable legislation and license approvals. This risk is mitigated by continual review of our processes and procedures to ensure full compliance.

SHORTS GROUP (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
Key performance indicators

The directors use various key performance indicators to measure the performance of the business. These include:

 

Sales growth

In the year, sales have increased by 3.7% (2022: 21.4% increase). This increase is attributed to growth experienced in the demolition division, which is offset by a slow year in our tipper & grab fleet.

 

Net profit before tax margin

In the year, a net margin of 5.16% was achieved (2022: 11.52%). The decrease is attributed to pricing pressures experienced during the year impacting our input costs.

 

Sales per employee ratio

In the year, sales per employee amounted to £144,067 (2022: £141,039). The increase is attributed to improved efficiency and productivity associated with utilizing staff across departments.

 

Debtor Days

In the year, cash collected from debtors took an average of 51.4 days (2022: 46.7 days). This marginal increase reflects the tightening we see in the general economy with interest rate increases.

 

Financial risk management objectives and polices

The group uses various financial instruments including cash and items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations. The existence of these financial instruments exposes the group to several financial risks, which are described in more detail below.

 

The main risks arising from the group's financial instruments are credit risk, liquidity risk and interest rate risk. The directors review and agree polices for managing each of these risks and they are summarised below.

 

Credit risk

The group's principal financial assets are cash and trade debtors. The credit risk arises from its trade debtors. To manage credit risk, the directors ensure that all customers undergo third party credit checks.

 

Liquidity risk

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

 

Interest rate risk

The group finances its operations through a mixture of retained profits and bank borrowings. The group’s exposure to interest rate fluctuations on its borrowings is managed using both fixed and floating rate facilities.

 

Freehold property

The directors' view is that there has been no material change to the market value of the freehold property.

On behalf of the board

G J D Short
Director
23 November 2023
SHORTS GROUP (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 4 -

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

Principal activities

The principal activity of the group continued to be that of plant hire and demolition contractors together with waste recycling and disposal.

 

The principal activity of the company is that of a holding company.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

D P Guest
G J D Short
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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
G J D Short
Director
23 November 2023
SHORTS GROUP (HOLDINGS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2023
- 5 -

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 period. 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 group and company, and of the profit or loss of the group 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 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. They are 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.

SHORTS GROUP (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SHORTS GROUP (HOLDINGS) LIMITED
- 6 -
Opinion

We have audited the financial statements of Shorts Group (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 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 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 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:

SHORTS GROUP (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHORTS GROUP (HOLDINGS) LIMITED
- 7 -
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 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 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 directors either intend to liquidate the parent 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.

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.

SHORTS GROUP (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHORTS GROUP (HOLDINGS) LIMITED
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

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

David Green MA (Cantab) ACA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
24 November 2023
Chartered Accountants
Statutory Auditor
Suites B & D
Burnham Yard
Beaconsfield
Bucks
United Kingdom
HP9 2JH
SHORTS GROUP (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 9 -
Year
Period
ended
ended
31 May
31 May
2023
2022
Notes
£
£
Turnover
3
19,642,054
18,758,173
Cost of sales
(14,242,091)
(12,652,375)
Gross profit
5,399,963
6,105,798
Administrative expenses
(4,526,509)
(3,991,162)
Operating profit
4
873,454
2,114,636
Interest receivable and similar income
8
367,928
173,659
Interest payable and similar expenses
9
(236,455)
(127,866)
Profit before taxation
1,004,927
2,160,429
Tax on profit
10
19,775
(457,504)
Profit for the financial year
23
1,024,702
1,702,925
Profit for the financial year is all attributable to the owners of the parent company.
SHORTS GROUP (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2023
31 May 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
11,383,232
7,484,635
Current assets
Stocks
14
47,216
50,808
Debtors
15
11,843,542
9,598,784
Cash at bank and in hand
1,657,253
2,663,788
13,548,011
12,313,380
Creditors: amounts falling due within one year
16
(4,722,901)
(3,297,346)
Net current assets
8,825,110
9,016,034
Total assets less current liabilities
20,208,342
16,500,669
Creditors: amounts falling due after more than one year
17
(4,180,431)
(2,835,904)
Provisions for liabilities
Deferred tax liability
20
2,073,339
734,895
(2,073,339)
(734,895)
Net assets
13,954,572
12,929,870
Capital and reserves
Called up share capital
22
1,000
1,000
Share premium account
23
4,000
4,000
Profit and loss reserves
23
13,949,572
12,924,870
Total equity
13,954,572
12,929,870
The financial statements were approved by the board of directors and authorised for issue on 23 November 2023 and are signed on its behalf by:
23 November 2023
G J D Short
Director
Company registration number 11913610 (England and Wales)
SHORTS GROUP (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
2,000
2,000
Capital and reserves
Called up share capital
22
1,000
1,000
Profit and loss reserves
23
1,000
1,000
Total equity
2,000
2,000

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 period was £0 (2022 - £0 profit).

The financial statements were approved by the board of directors and authorised for issue on 23 November 2023 and are signed on its behalf by:
23 November 2023
G J D Short
Director
Company registration number 11913610 (England and Wales)
SHORTS GROUP (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 June 2021
1,000
4,000
11,221,945
11,226,945
Period ended 31 May 2022:
Profit and total comprehensive income
-
-
1,702,925
1,702,925
Balance at 31 May 2022
1,000
4,000
12,924,870
12,929,870
Year ended 31 May 2023:
Profit and total comprehensive income
-
-
1,024,702
1,024,702
Balance at 31 May 2023
1,000
4,000
13,949,572
13,954,572
SHORTS GROUP (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 June 2021
1,000
1,000
2,000
Period ended 31 May 2022:
Profit and total comprehensive income for the period
-
-
-
0
Balance at 31 May 2022
1,000
1,000
2,000
Year ended 31 May 2023:
Profit and total comprehensive income
-
-
-
0
Balance at 31 May 2023
1,000
1,000
2,000
SHORTS GROUP (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
2,015,779
3,440,188
Interest paid
(236,455)
(127,866)
Net cash inflow from operating activities
1,779,324
3,312,322
Investing activities
Purchase of tangible fixed assets
(6,601,062)
(2,324,284)
Proceeds on disposal of tangible fixed assets
824,384
589,641
Interest received
367,928
173,659
Net cash used in investing activities
(5,408,750)
(1,560,984)
Financing activities
Repayment of borrowings
(43,958)
(3,220)
Repayment of bank loans
(430,660)
(197,016)
Payment of finance leases obligations
3,097,509
(660,121)
Net cash generated from/(used in) financing activities
2,622,891
(860,357)
Net (decrease)/increase in cash and cash equivalents
(1,006,535)
890,981
Cash and cash equivalents at beginning of year
2,663,788
1,772,807
Cash and cash equivalents at end of year
1,657,253
2,663,788
SHORTS GROUP (HOLDINGS) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 16 -
1
Accounting policies
Company information

Shorts Group (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is London Court, London Road, Bracknell, Berkshire, England, RG12 2UT.

 

The group consists of Shorts Group (Holdings) 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, modified to include the revaluation of freehold properties at fair value.

 

The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Shorts Group (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 17 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

The turnover shown in the Statement of Comprehensive Income is represented by the following items: sales from hiring of skips, RoRos and sweeper services, sales from hiring of plant and machinery, sales relating to recycled materials, proceeds from trade waste collections and tipper and grab vehicle services and proceeds from demolition works. For all revenue streams revenue is recognised as the service is rendered and is exclusive of Value Added Tax. For demolition works the service is deemed to be rendered over the duration of the demolition project, based on the percentage completion of the project to recognise revenue as it is earned.

1.6
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 improvements
5% per annum
Plant and equipment
16.67% - 20% per annum
Fixtures and fittings
33.33% on Cost
Motor vehicles
16.67% - 20% per annum

Individual freehold properties are carried at fair value. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance Sheet date.

 

Revaluation gains and losses are recognised in the Statement of Comprehensive Income.

 

Fair values are determined from market based evidence normally undertaken by professional qualified valuers and reviewed by the directors.

 

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 profit and loss account.

SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 18 -
1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
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.

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.

1.9
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.

SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 19 -

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.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
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 balance sheet 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, 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 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.

SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 20 -
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.12
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.

1.13
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 period. 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.

1.14
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.

1.15
Retirement benefits

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

1.16
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.

SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

Freehold Property Valuation

 

The freehold properties are included in these accounts at market value. Management obtain regular external valuations over the properties (see note 11 for details) and based on these form a view as to the market value of the properties. In their judgement the reports are a suitable basis on which to assess open market value but acknowledge there are a range of values which could be a suitable valuation for these properties.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of services
15,671,540
15,978,818
Sale of goods
3,777,514
2,779,355
19,642,054
18,758,173
2023
2022
£
£
Other revenue
Interest income
367,928
173,659

All turnover arose within the United Kingdom in the current and prior periods.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
1,179,578
1,452,908
Depreciation of tangible fixed assets held under finance leases
1,348,581
986,297
Profit on disposal of tangible fixed assets
(650,078)
(543,948)
Operating lease charges
344,384
301,187
Defined contribution pension cost
104,442
87,640
SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 23 -
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 group and company
-
-
Audit of the financial statements of the company's subsidiaries
23,730
18,500
For other services
All other non-audit services
21,940
4,500

The audit fee for the group is incurred in full by the subsidiary therefore no additional fees are due from the parent company.

6
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
Administration
34
32
-
-
Production
101
101
-
-
Total
135
133
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,939,734
4,571,273
-
0
-
0
Social security costs
515,120
484,540
-
-
Pension costs
241,699
87,640
-
0
-
0
5,696,553
5,143,453
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
215,590
221,889
Company pension contributions to defined contribution schemes
4,634
4,469
220,224
226,358
SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
7
Directors' remuneration
(Continued)
- 24 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
112,142
114,226
Company pension contributions to defined contribution schemes
4,634
4,469
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
367,928
173,659
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
367,928
173,659
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
52,443
43,754
Other finance costs:
Interest on finance leases and hire purchase contracts
90,274
55,291
Other interest
93,738
28,821
Total finance costs
236,455
127,866
10
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(19,775)
457,504
SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
10
Taxation
(Continued)
- 25 -

The actual (credit)/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
1,004,927
2,160,429
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
190,936
410,482
Tax effect of expenses that are not deductible in determining taxable profit
3,931
8,461
Tax effect of income not taxable in determining taxable profit
(123,515)
(103,350)
Capital allowances in excess of depreciation
(1,094,153)
(175,043)
Other movements in deferred tax
(19,775)
457,504
Utilisation of tax losses
1,022,801
(140,550)
Taxation (credit)/charge
(19,775)
457,504

As part of Budget 2021 on 3 March 2021, it was announced that the UK corporation tax rate will increase to 25% from 1 April 2023. This change was substantively enacted on 24 May 2021. Prior to this change, the corporation tax rate was 19%. The effect on the company of this changes has been reflected in the group's financial statements in the financial year as appropriate.

SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 26 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 June 2022
969,808
502,032
13,420,524
538,791
5,073,080
20,504,235
Additions
-
0
11,576
3,716,204
87,523
2,785,759
6,601,062
Disposals
-
0
-
0
(956,790)
-
0
(1,331,815)
(2,288,605)
At 31 May 2023
969,808
513,608
16,179,938
626,314
6,527,024
24,816,692
Depreciation and impairment
At 1 June 2022
-
0
73,265
8,764,034
473,514
3,708,787
13,019,600
Depreciation charged in the year
-
0
24,065
1,781,919
49,515
672,660
2,528,159
Eliminated in respect of disposals
-
0
-
0
(801,890)
-
0
(1,312,409)
(2,114,299)
At 31 May 2023
-
0
97,330
9,744,063
523,029
3,069,038
13,433,460
Carrying amount
At 31 May 2023
969,808
416,278
6,435,875
103,285
3,457,986
11,383,232
At 31 May 2022
969,808
428,767
4,656,490
65,277
1,364,293
7,484,635
The company had no tangible fixed assets at 31 May 2023 or 31 May 2022.

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
969,808
969,808
-
0
-
0

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
£
£
£
£
Plant and equipment
5,152,233
3,102,580
-
0
-
0
Motor vehicles
3,105,116
831,075
-
0
-
0
8,257,349
3,933,655
-
-
SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
11
Tangible fixed assets
(Continued)
- 27 -

External valuations have been carried out in respect of the freehold properties. In July 2019 Avison Young valued the property in Aldershot at £1,100,000. The basis of the valuations were open market value. In prior years any surplus over cost had been transferred to the revaluation reserve.

 

There was no adjustment to the value of the property in Aldershot in the current or prior period as the directors are of the opinion that the current valuation in the accounts is materially correct.

12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
2,000
2,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2022 and 31 May 2023
2,000
Carrying amount
At 31 May 2023
2,000
At 31 May 2022
2,000
SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 28 -
13
Subsidiaries

Details of the company's subsidiaries at 31 May 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Shorts of Ascot Limited
London Court, London Road, Bracknell, Berkshire, RG12 2UT
Ordinary
-
100.00
Shorts Group Limited
London Court, London Road, Bracknell, Berkshire, RG12 2UT
Ordinary
100.00
-
Shorts Timber Services (Datchet) Limited
London Court, London Road, Bracknell, Berkshire, RG12 2UT
Ordinary
-
100.00
Shorts Limited
London Court, London Road, Bracknell, Berkshire, RG12 2UT
Ordinary
-
100.00
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods
47,216
50,808
-
-

Impairment of stocks recognised in the statement of comprehensive income was £6,282 (2022: £6,736).

15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,737,067
2,398,395
-
0
-
0
Amounts owed by related undertakings
7,305,326
6,783,950
-
-
Other debtors
168,587
21,640
-
0
-
0
Prepayments and accrued income
217,322
337,778
-
0
-
0
10,428,302
9,541,763
-
-
Deferred tax asset (note 20)
1,415,240
57,021
-
0
-
0
11,843,542
9,598,784
-
-
SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 29 -
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
423,464
423,464
-
0
-
0
Obligations under finance leases
19
2,732,566
1,454,202
-
0
-
0
Trade creditors
1,043,645
691,760
-
0
-
0
Amounts owed to related undertaking
68,079
14,107
-
0
-
0
Other taxation and social security
126,920
491,742
-
-
Other creditors
20,003
19,613
-
0
-
0
Accruals and deferred income
308,224
202,458
-
0
-
0
4,722,901
3,297,346
-
0
-
0
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
1,059,646
1,490,306
-
0
-
0
Obligations under finance leases
19
3,114,037
1,294,892
-
0
-
0
Other borrowings
18
6,748
50,706
-
0
-
0
4,180,431
2,835,904
-
-
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,483,110
1,913,770
-
0
-
0
Other loans
6,748
50,706
-
0
-
0
1,489,858
1,964,476
-
-
Payable within one year
423,464
423,464
-
0
-
0
Payable after one year
1,066,394
1,541,012
-
0
-
0

The company has three loans with Lloyds bank. These are secured on the property along with a fixed and floating charge over the company. The first loan was for the amount of £665,000 which is repayable over the period until 31 December 2024. The second loan was for the amount of £437,000 which is repayable over the period until 17 February 2026. The interest rate on both of these loans is the Bank of England base rate plus 2.75% per annum. The third loan is a CBILS loan for the amounts of £1,750,000 which is repayable over the period until 20 January 2027. The interest rate on this loan is the Bank of England base rate plus 2.8% per annum.

SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 30 -
19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
2,732,566
1,454,202
-
0
-
0
In two to five years
3,114,037
1,294,892
-
0
-
0
5,846,603
2,749,094
-
-

Hire purchase obligations are secured on the assets to which they relate.

20
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
2,068,625
730,043
-
-
Tax losses
-
-
1,415,240
57,021
Retirement benefit obligations
4,714
4,852
-
-
2,073,339
734,895
1,415,240
57,021
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 June 2022
677,874
-
Credit to profit or loss
(19,775)
-
Liability at 31 May 2023
658,099
-
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
241,699
87,640
SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
21
Retirement benefit schemes
(Continued)
- 31 -

At the period end contributions totalling £20,323 (2022: £19,407) were payable to the fund.

 

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.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 50p each
2,000
2,000
1,000
1,000
23
Reserves

Share capital

Called up share capital represents the nominal value of shares that have been issued.

 

Share premium

Share premium represents the amount paid for shares issued above the nominal value of the shares.

 

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.

24
Operating lease commitments

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
303,240
390,000
-
-
Between two and five years
735,000
765,000
-
-
In over five years
360,000
540,000
-
-
1,398,240
1,695,000
-
-
25
Capital Commitments

At the period end the group had capital commitments amounting to £243,889 (2022: £2,417,234). The company had no capital commitments at the end of the current or prior period.

SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 32 -
26
Related party transactions

At the period end there was £6,910,540 (2022: £6,307,655) due from Shorts Group (St George's Lane) Limited, a company under common control, on which interest was charged at 2.75% above base rate and totalled £367,928 (2022: £173,484). Rent was charged by Shorts Group (St George's Lane) Limited and totalled £180,000 (2022: £180,000).

 

At the period end there was £65,918 (2022: £14,105) due to Shorts Agricultural Services Limited, a company under common control. Sales in the period made to Shorts Agricultural Services Limited related to plant and toilet hire, grab and tipper work, skip hire, trade waste services and recharge of other minor expenses and totalled £221,941 (2022: £311,737). Purchases made in the period from Shorts Agricultural Services Limited related to green waste tipping charges, material sales and plant hire and totalled £212,768 (2022: £145,395).

 

At the period end there was £Nil (2022: £415,904) due from The Shorstan Company Limited, a company under common control. Sales in the period made to The Shorstan Company Limited related to trade waste services, plant hire and recharge of other minor expenses and totalled £7,046 (2022: £16,616). Purchases made in the period from The Shorstan Company Limited related to office rental, service and electricity charges and totalled £120,318 (2022: £108,012).

 

At the period end there was £52,691 (2022: £60,090) due from Jordan Construction Limited, a company under common control. Sales in the period made to Jordan Construction Limited related to plant and toilet hire, sweeper services and recharge of other minor expenses and totalled £14,435 (2022: £110,391). Purchases made in the period from Jordan Construction Limited related to inert tipping charges and electricity charges and totalled £9,402 (2022: £372,946).

 

At the period end there was £312,016 (2022: £11) due from the G2 Partnership, a partnership under common control. Sales in the period made to the G2 Partnership related to minor expenses and totalled £13,101 (2022: £9).

 

At the period end there was £250 (2022: £266) due to Okanargon Limited, a company under common control. Sales in the period made to Okanargon Limited related to plant hire, skip hire, trade waste services and recharge of minor expenses and totalled £4,164 (2022: £5,859).

 

Sales in the period made to Apricot Properties Limited, a company that the directors have significant influence over, related to recharge of minor expenses and totalled £31 (2022: £Nil).

 

At the period end there was £Nil (2022: £24) due from Overby Limited, a company under common control. Sales in the period made to Overby Limited related to recharge of minor expenses and totalled £13 (2022: £127). Purchases made in the period from Overby Limited related to recharge of minor expenses and totalled £2,145 (2022: £1,865).

 

At the period end there was £5,002 (2022: £5,002) due to Shorts of Ascot Limited, a subsidiary company.

 

At the period end there was £6,748 (2022: £50,706) due to G Short, director of the company.

 

Unless otherwise stated all the above balances are unsecured, repayable on demand and are conducted on an arm's length basis.

 

Key management compensation, including amounts paid to directors, amounted to £220,224 (2022: £226,358).

27
Controlling party
The company is ultimately controlled by G J D Short by virtue of him holding 100% of the company's issued share capital.
SHORTS GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 33 -
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,024,702
1,702,925
Adjustments for:
Taxation (credited)/charged
(19,775)
457,504
Finance costs
236,455
127,866
Investment income
(367,928)
(173,659)
Gain on disposal of tangible fixed assets
(650,078)
(543,948)
Depreciation and impairment of tangible fixed assets
2,528,159
2,439,205
Movements in working capital:
Decrease in stocks
3,592
3,173
Increase in debtors
(886,539)
(735,321)
Increase in creditors
147,191
162,443
Cash generated from operations
2,015,779
3,440,188
29
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
-
-
Cash absorbed by operations
-
-
30
Analysis of changes in net debt - group
1 June 2022
Cash flows
31 May 2023
£
£
£
Cash at bank and in hand
2,663,788
(1,006,535)
1,657,253
Borrowings excluding overdrafts
(1,964,476)
474,618
(1,489,858)
Obligations under finance leases
(2,749,094)
(3,097,509)
(5,846,603)
(2,049,782)
(3,629,426)
(5,679,208)
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