Company registration number 14345927 (England and Wales)
TRIDENT HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
TRIDENT HOLDINGS LTD
COMPANY INFORMATION
Directors
C Conway
(Appointed 8 September 2022)
G Boyle
(Appointed 8 September 2022)
Company number
14345927
Registered office
1 Hobbs House
Harrovian Business Village
Bessborough
Harrow
HA1 3EX
Auditor
Evans Mockler Limited
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
TRIDENT HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 25
TRIDENT HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the year ended 30 June 2023.

Review of business and prospects

 

The principle activities of the group in the year under review was the hire, operation and sale of tower cranes and related lifting services to the UK construction industry.

Despite the challenges facing the industry, the group has seen its turnover increase by 11.6% to £19.06m (2022: £17.08m). This growth is supported by the strong senior management team with a wealth of industry knowledge and experience.

Whilst turnover is up, gross margin has seen a small reduction to 26.9% (2022: 27.6%). Maintaining gross margins remains challenging due to price increases on plant, labour and transport due to post pandemic inflationary pressures and the on-going war in Ukraine.

 

Investment in the crane fleet has continued during the financial year, whilst a number of older cranes have been disposed in order to maintain extremely high standards of quality and reliability for our customers.

Key performance indicators

 

The directors monitor the following key performance indictors below:

 

2023

2022

2021

 

£’000

£’000

£’000

Turnover

£19,062

£17,081

£14,182

Gross Profit

£5,132

£4,719

£4,444

Profit before Tax

£3,597

£3,812

£3,526

Shareholders’ Funds

£10,408

£7,680

£5,745

Forward order book

 

The group has secured a strong order book with a diversified client base of top tier contractors. The continued high percentage of repeat business provides a constant reminder of the group’s ability to satisfy clients' requirements, whilst recognising the need to offer its clients added value and reduced costs to maintain its competitive edge. The group will continue to target major, multi-crane rental contracts along with smaller single crane projects in all sectors.

Risks and uncertainties

 

UK construction has endured challenging economic conditions this year as UK economic growth effectively stalled. High construction costs over the past two years have constrained development activity into 2023, with housing associations forced to reappraise the viability of new projects. Coupled with this, the slowdown in the private housing market has had a knock-on effect on social housing starts, resulting in fewer opportunities to take forward mixed tenure developments. However, greater cost stability is anticipated to increase development activity over the next two years. Renewed construction growth is forecast for 2024 and 2025 as the prospect of a strengthening UK economy lifts consumer and business confidence.

 

The group remains committed to its policy of managing its exposure to risk. Continuous monitoring of income, costs, and overheads, together with robust cash management, is a significant factor in its ability to make informed decisions about its future.

The group continues to enjoy a good reputation in the industry for prompt payment of its supply chain and remains committed to ensuring that its creditors are all discharged within terms. Working closely with our supply chain is important in bringing certainty on project delivery and remains an integral part of the group’s approach to its supply chain.

TRIDENT HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Financial risks management and policies

 

The group is robust in credit risk in management and administration of its supply chain and trade receivables within contractual obligations. The group maintains a strong cash balance thus eliminating the need for borrowings to carry out its trade. A strong secured order book supports a healthy cash balance going forward. The importance of financial risk and risk management remains. Credit risk primarily arising from its trade debtors is mitigated through analysis of individual customer creditworthiness, strict credit limits and credit insurance policies.

 

The directors remain mindful of the challenges the group faces in the industry that they operate in and are committed to meeting them.

Research and development (R&D)

 

The group remains committed to the continuous development of its methods, systems, and processes through its R&D. Its focus on providing innovative robust processes and solutions with significant benefit including, safety, time, cost savings and improved quality to our clients.

Health and safety

Health and Safety remains our top priority to our staff, supply chain and our customers. Improvements in the group's processes, systems, key performance indicators, and the employment of health and safety professionals have assisted the group and the directors in understanding the key risks and areas for improvement. The group remains committed to working incident and injury free at its workplace.

Accreditations

The group continues with its accreditations to ISO 45001, ISO 14001 and ISO 9001. It also holds accreditations Constructionline Gold, Achilles and CHAS.

Sustainability

This is at the forefront of the group’s policy in keeping with the demands from our clients and to ensure we are always considering the environmental impact of our business.

The group’s investment in sustainable plant and electric commercial vans is demonstrating our commitment to reducing our carbon footprint.

On behalf of the board

G Boyle
Director
27 November 2023
TRIDENT HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Results and dividends

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

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:

C Conway
(Appointed 8 September 2022)
G Boyle
(Appointed 8 September 2022)
Auditor

The auditor, , 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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
G Boyle
Director
27 November 2023
TRIDENT HOLDINGS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 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 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.

TRIDENT HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRIDENT HOLDINGS LTD
- 5 -
Opinion

We have audited the financial statements of Trident Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 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 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:

TRIDENT HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRIDENT HOLDINGS LTD
- 6 -
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.

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

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

TRIDENT HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRIDENT HOLDINGS LTD
- 7 -

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.

Mark Cook (Senior Statutory Auditor)
For and on behalf of Evans Mockler Limited
27 November 2023
Chartered Certified Accountants
Statutory Auditor
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
TRIDENT HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
19,061,886
17,080,911
Cost of sales
(13,930,264)
(12,361,609)
Gross profit
5,131,622
4,719,302
Administrative expenses
(1,312,721)
(648,446)
Other operating income
46,989
-
Operating profit
4
3,865,890
4,070,856
Interest receivable and similar income
8
9,916
-
0
Interest payable and similar expenses
9
(279,026)
(259,264)
Profit before taxation
3,596,780
3,811,592
Tax on profit
10
(869,989)
(776,456)
Profit for the financial year
2,726,791
3,035,136
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
TRIDENT HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
14,191,325
11,623,411
Current assets
Debtors
14
5,880,122
3,959,527
Cash at bank and in hand
3,053,381
2,906,564
8,933,503
6,866,091
Creditors: amounts falling due within one year
15
(6,343,095)
(5,456,731)
Net current assets
2,590,408
1,409,360
Total assets less current liabilities
16,781,733
13,032,771
Creditors: amounts falling due after more than one year
16
(3,591,911)
(3,470,892)
Provisions for liabilities
Deferred tax liability
2,781,707
1,881,555
(2,781,707)
(1,881,555)
Net assets
10,408,115
7,680,324
Capital and reserves
Called up share capital
2,000
-
0
Merger reserve
(998)
2
Profit and loss reserves
10,407,113
7,680,322
Total equity
10,408,115
7,680,324
The financial statements were approved by the board of directors and authorised for issue on 27 November 2023 and are signed on its behalf by:
27 November 2023
G Boyle
Director
TRIDENT HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 10 -
2023
Notes
£
£
Fixed assets
Investments
12
2,000
Current assets
Cash at bank and in hand
10,000
Creditors: amounts falling due within one year
15
(19,000)
Net current liabilities
(9,000)
Net liabilities
(7,000)
Capital and reserves
Called up share capital
2,000
Profit and loss reserves
(9,000)
Total equity
(7,000)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £9,000 (2022 - £0 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 27 November 2023 and are signed on its behalf by:
27 November 2023
G Boyle
Director
Company Registration No. 14345927
TRIDENT HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
Share capital
Merger reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2021
-
0
-
5,745,186
5,745,186
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
-
3,035,136
3,035,136
Dividends
-
-
(1,100,000)
(1,100,000)
Transfers
-
2
-
2
Balance at 30 June 2022
-
0
2
7,680,322
7,680,324
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
2,726,791
2,726,791
Issue of share capital
2,000
-
-
2,000
Transfers
-
(1,000)
-
(1,000)
Balance at 30 June 2023
2,000
(998)
10,407,113
10,408,115
TRIDENT HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Year ended 30 June 2023:
Profit and total comprehensive income
-
(9,000)
(9,000)
Issue of share capital
2,000
-
2,000
Balance at 30 June 2023
2,000
(9,000)
(7,000)
TRIDENT HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
5,395,366
3,725,949
Interest paid
(279,026)
(259,264)
Income taxes refunded/(paid)
17,221
(250,000)
Net cash inflow from operating activities
5,133,561
3,216,685
Investing activities
Purchase of tangible fixed assets
(784,003)
(959,504)
Proceeds on disposal of tangible fixed assets
180,518
1,230,017
Loans made
(1,045,371)
-
Interest received
9,916
-
0
Net cash (used in)/generated from investing activities
(1,638,940)
270,513
Financing activities
Repayment of bank loans
(180,000)
(311,424)
Payment of finance leases obligations
(3,167,804)
(2,348,321)
Dividends paid to equity shareholders
-
(1,100,000)
Net cash used in financing activities
(3,347,804)
(3,759,745)
Net increase/(decrease) in cash and cash equivalents
146,817
(272,547)
Cash and cash equivalents at beginning of year
2,906,564
3,179,111
Cash and cash equivalents at end of year
3,053,381
2,906,564
TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
1
Accounting policies
Company information

Trident Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Hobbs House, Harrovian Business Village, Bessborough, Harrow, HA1 3EX.

 

The group consists of Trident Holdings Ltd 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 and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The parent company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these finance statements.

Financial reporting standard 102 – reduced disclosure exemptions in preparing the separate financial statements of the parent company, advantage has been taken of the disclosure exemptions available in FRS 102 and no statement of cash flows has been presented for the parent company.

1.2
Business combinations

Following a group reorganisation in February 2023, Trident Lifting Solutions Ltd, a company under common control, was transferred to the company. Consequently, in accordance with UK GAAP, the consolidated financial statements have been prepared using the ‘pooling of interests method’ (or ‘merger accounting’ method), which treats the entities transferred as if they have been combined throughout the current and comparative accounting periods, as appropriate. The application of merger accounting principles give rise to a merger reserve in the consolidated balance sheet, being the difference between the consideration paid by the company and the nominal value of the share capital of the entities acquired.

1.3
Basis of consolidation

The consolidated financial statements present the results of the company and its subsidiaries (the ‘group’) as if they form a single entity.

Intercompany transactions and balances between group companies are therefore eliminated in full.

As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

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

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.

TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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:

Plant and equipment
10% - 20% straight-line
Fixtures and fittings
20% straight-line
Motor vehicles
25% straight-line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

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

 

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

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

1.8
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.

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.

TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -

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
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.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's 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.

TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, 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.

1.11
Equity instruments

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

TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.

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.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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.

1.14
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.

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.

3
Turnover

The turnover and profit before taxation are attributable to one principal activity, crane hire services and sales. Turnover is attributable to a single geographical market, United Kingdom.

TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 19 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(47,467)
97,589
Depreciation of owned tangible fixed assets
522,227
208,996
Depreciation of tangible fixed assets held under hire purchase agreements
841,657
763,567
Profit on disposal of tangible fixed assets
(82,179)
(346,230)
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
3,500
-
Audit of the financial statements of the company's subsidiaries
15,000
13,500
18,500
13,500
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
Number
Number
Number
Directors
2
2
2
Administration and maintenance
13
11
-
Total
15
13
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
£
£
£
Wages and salaries
1,231,238
694,189
-
0
Social security costs
43,906
1,830
-
1,275,144
696,019
-
0
TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 20 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
348,484
17,808
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
174,242
8,904
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
9,916
-
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
43,398
38,427
Interest on invoice finance arrangements
-
0
12,746
43,398
51,173
Other finance costs:
Interest on finance leases and hire purchase contracts
235,628
208,091
Total finance costs
279,026
259,264
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(29,446)
29,446
Adjustments in respect of prior periods
(717)
2,864
Total current tax
(30,163)
32,310
Deferred tax
Origination and reversal of timing differences
900,152
744,146
Total tax charge
869,989
776,456
TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10
Taxation
(Continued)
- 21 -

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
3,596,780
3,811,592
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
737,340
724,202
Tax effect of expenses that are not deductible in determining taxable profit
8,041
16,531
Tax effect of income not taxable in determining taxable profit
(11,512)
(92,770)
Unutilised tax losses carried forward
5,913
-
0
Permanent capital allowances in excess of depreciation
(739,782)
(618,516)
Under/(over) provided in prior years
(717)
2,863
Deferred tax movement
900,152
744,146
Utilisation of losses carried back against prior years
(29,446)
-
0
Taxation charge
869,989
776,456
11
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2022
13,514,759
34,293
276,446
13,825,498
Additions
3,909,163
21,099
415,888
4,346,150
Disposals
(450,522)
-
0
(26,536)
(477,058)
At 30 June 2023
16,973,400
55,392
665,798
17,694,590
Depreciation and impairment
At 1 July 2022
2,058,794
14,147
129,146
2,202,087
Depreciation charged in the year
1,284,978
8,572
70,334
1,363,884
Eliminated in respect of disposals
(41,645)
-
0
(21,061)
(62,706)
At 30 June 2023
3,302,127
22,719
178,419
3,503,265
Carrying amount
At 30 June 2023
13,671,273
32,673
487,379
14,191,325
At 30 June 2022
11,455,965
20,146
147,300
11,623,411
The company had no tangible fixed assets at 30 June 2023 or 30 June 2022.
TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
11
Tangible fixed assets
(Continued)
- 22 -

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

Group
2023
2022
£
£
Plant and equipment
9,994,712
9,615,840
Motor vehicles
363,379
-
0
10,358,091
9,615,840
12
Fixed asset investments
Group
Company
2023
2022
2023
Notes
£
£
£
Investments in subsidiaries
13
-
0
-
0
2,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022
-
Additions
2,000
At 30 June 2023
2,000
Carrying amount
At 30 June 2023
2,000
At 30 June 2022
-
13
Subsidiaries

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

 

Name

Class of share

Holding

Principle activity

Trident Lifting Solutions Ltd

Ordinary

100%

Tower crane sales and hire

Trident Cranes Ltd

Ordinary

100%

Dormant company

 

The registered office for the above is 1 Hobbs House, Harrovian Business Village, Bessborough, Harrow, HA1 3EX.

TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
14
Debtors
Group
Company
2023
2022
2023
Amounts falling due within one year:
£
£
£
Trade debtors
3,708,008
3,132,299
-
0
Corporation tax recoverable
29,446
16,504
-
0
Amounts owed by group undertakings
10,000
-
-
Other debtors
1,436,447
312,097
-
0
Prepayments and accrued income
696,221
498,627
-
0
5,880,122
3,959,527
-
0
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
£
£
£
Bank loans
180,000
180,000
-
0
Obligations under finance leases
2,637,302
2,859,991
-
0
Trade creditors
1,953,380
1,896,129
-
0
Amounts owed to group undertakings
-
0
-
0
10,000
Other taxation and social security
572,637
286,438
-
Other creditors
15,979
94,627
-
0
Accruals and deferred income
983,797
139,546
9,000
6,343,095
5,456,731
19,000

Bank loans and certain hire purchase contracts are secured by way of a fixed and floating charge over the assets of the group.

16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
£
£
£
Bank loans and overdrafts
345,000
525,000
-
0
Obligations under finance leases
3,246,911
2,945,892
-
0
3,591,911
3,470,892
-

Bank loans and certain hire purchase contracts are secured by way of a fixed and floating charge over the assets of the group

TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 24 -
17
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
£
£
£
Within one year
289,580
152,475
-
Between two and five years
633,488
264,139
-
923,068
416,614
-
18
Directors' transactions

Dividends totalling £0 (2022 - £1,100,000) were paid in the year in respect of shares held by the group's directors.

The group maintains a loan account with its directors. As at 30 June 2023 the group was owed £1,045,371 (2022: the group owed £92,989). The loan accounts are subject to an interest charge at 2% per annum and are repayable on demand.

19
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,726,791
3,035,136
Adjustments for:
Taxation charged
869,989
776,456
Finance costs
279,026
259,264
Investment income
(9,916)
-
0
Gain on disposal of tangible fixed assets
(82,179)
(346,230)
Depreciation and impairment of tangible fixed assets
1,363,884
972,563
Movements in working capital:
Increase in debtors
(861,282)
(846,264)
Increase/(decrease) in creditors
1,109,053
(124,976)
Cash generated from operations
5,395,366
3,725,949
TRIDENT HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
20
Analysis of changes in net debt - group
1 July 2022
Net cash flows
30 June 2023
£
£
£
Cash at bank and in hand
2,906,564
146,817
3,053,381
Borrowings excluding overdrafts
(705,000)
180,000
(525,000)
Obligations under finance leases
(5,805,883)
(78,330)
(5,884,213)
(3,604,319)
248,487
(3,355,832)
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