Company registration number 10245117 (England and Wales)
TRIDENT LIFTING SOLUTIONS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
TRIDENT LIFTING SOLUTIONS LTD
COMPANY INFORMATION
Directors
G Boyle
C Conway
Company number
10245117
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 LIFTING SOLUTIONS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 20
TRIDENT LIFTING SOLUTIONS 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 company 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 company 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:
Forward order book
The company 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 company’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 company 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 company 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 company 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 company’s approach to its supply chain.
TRIDENT LIFTING SOLUTIONS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Financial risks management and policies
The company is robust in credit risk in management and administration of its supply chain and trade receivables within contractual obligations. The company 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 company faces in the industry that they operate in and are committed to meeting them.
Research and development (R&D)
The company 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 company's processes, systems, key performance indicators, and the employment of health and safety professionals have assisted the company and the directors in understanding the key risks and areas for improvement. The company remains committed to working incident and injury free at its workplace.
Accreditations
The company 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 company’s policy in keeping with the demands from our clients and to ensure we are always considering the environmental impact of our business.
The company’s investment in sustainable plant and electric commercial vans is demonstrating our commitment to reducing our carbon footprint
G Boyle
Director
27 November 2023
TRIDENT LIFTING SOLUTIONS 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 final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G Boyle
C Conway
Auditor
Evans Mockler Limited were appointed as auditor to the company and is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
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 LIFTING SOLUTIONS 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
TRIDENT LIFTING SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF TRIDENT LIFTING SOLUTIONS LTD
- 5 -
Opinion
We have audited the financial statements of Trident Lifting Solutions Ltd (the 'company') for the year ended 30 June 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
TRIDENT LIFTING SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF TRIDENT LIFTING SOLUTIONS LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Directors (as required by auditing standards).
we had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
with the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Directors.
we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
we addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
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 for the audit of the financial statements is located on the Financial Reporting Councils website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
TRIDENT LIFTING SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF TRIDENT LIFTING SOLUTIONS LTD
- 7 -
This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
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 LIFTING SOLUTIONS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
19,061,886
17,080,910
Cost of sales
(13,930,264)
(12,361,609)
Gross profit
5,131,622
4,719,301
Administrative expenses
(1,303,721)
(648,445)
Other operating income
46,989
Operating profit
4
3,874,890
4,070,856
Interest receivable and similar income
9,916
Interest payable and similar expenses
7
(279,026)
(259,264)
Profit before taxation
3,605,780
3,811,592
Tax on profit
8
(869,989)
(776,456)
Profit for the financial year
2,735,791
3,035,136
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TRIDENT LIFTING SOLUTIONS LTD
BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
14,191,325
11,623,411
Current assets
Debtors
11
5,890,122
3,959,527
Cash at bank and in hand
3,042,381
2,906,564
8,932,503
6,866,091
Creditors: amounts falling due within one year
12
(6,334,095)
(5,456,731)
Net current assets
2,598,408
1,409,360
Total assets less current liabilities
16,789,733
13,032,771
Creditors: amounts falling due after more than one year
13
(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
10,416,115
7,680,324
Capital and reserves
Called up share capital
14
2
2
Profit and loss reserves
10,416,113
7,680,322
Total equity
10,416,115
7,680,324
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
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:
G Boyle
Director
Company registration number 10245117 (England and Wales)
TRIDENT LIFTING SOLUTIONS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2021
2
5,745,186
5,745,188
Year ended 30 June 2022:
Profit and total comprehensive income
-
3,035,136
3,035,136
Dividends
9
-
(1,100,000)
(1,100,000)
Balance at 30 June 2022
2
7,680,322
7,680,324
Year ended 30 June 2023:
Profit and total comprehensive income
-
2,735,791
2,735,791
Balance at 30 June 2023
2
10,416,113
10,416,115
TRIDENT LIFTING SOLUTIONS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
5,384,366
3,725,949
Interest paid
(279,026)
(259,264)
Income taxes refunded/(paid)
17,221
(250,000)
Net cash inflow from operating activities
5,122,561
3,216,685
Investing activities
Purchase of tangible fixed assets
(784,003)
(959,504)
Proceeds from disposal of tangible fixed assets
180,518
1,230,017
Loans made
(1,045,371)
-
Interest received
9,916
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
(1,100,000)
Net cash used in financing activities
(3,347,804)
(3,759,745)
Net increase/(decrease) in cash and cash equivalents
135,817
(272,547)
Cash and cash equivalents at beginning of year
2,906,564
3,179,111
Cash and cash equivalents at end of year
3,042,381
2,906,564
TRIDENT LIFTING SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
1
Accounting policies
Company information
Trident Lifting Solutions Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1 Hobbs House, Harrovian Business Village, Bessborough, Harrow, HA1 3EX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
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 credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
TRIDENT LIFTING SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 13 -
1.6
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
TRIDENT LIFTING SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 14 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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 company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
TRIDENT LIFTING SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -
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.
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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.
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(47,467)
97,588
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
13,500
Depreciation of owned tangible fixed assets
522,227
208,996
Depreciation of tangible fixed assets held under hire purchase contracts
841,657
763,567
Profit on disposal of tangible fixed assets
(82,179)
(346,230)
TRIDENT LIFTING SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
2
2
Administration and maintenance
13
11
Total
15
13
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,231,238
694,189
Social security costs
43,906
1,830
1,275,144
696,019
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
348,484
17,808
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
174,242
8,904
7
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
12,746
43,398
51,173
Other finance costs:
Interest on finance leases and hire purchase contracts
235,628
208,091
279,026
259,264
TRIDENT LIFTING SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
8
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
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
3,605,780
3,811,592
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
739,185
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
4,068
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)
Taxation charge for the year
869,989
776,456
9
Dividends
2023
2022
£
£
Interim paid
1,100,000
TRIDENT LIFTING SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 18 -
10
Tangible fixed assets
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)
(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)
(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 net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and equipment
9,994,712
9,615,840
Motor vehicles
363,379
10,358,091
9,615,840
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,708,008
3,132,299
Corporation tax recoverable
29,446
16,504
Amounts owed by group undertakings
10,000
Other debtors
1,446,447
312,097
Prepayments and accrued income
696,221
498,627
5,890,122
3,959,527
TRIDENT LIFTING SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 19 -
12
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
180,000
180,000
Obligations under hire purchase contracts and finance leases
2,637,302
2,859,991
Trade creditors
1,953,380
1,896,129
Taxation and social security
572,637
286,438
Other creditors
15,979
94,627
Accruals and deferred income
974,797
139,546
6,334,095
5,456,731
Bank loans and certain hire purchase contracts are secured by way of a fixed and floating charge over the assets of the company.
13
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
345,000
525,000
Obligations under hire purchase contracts and finance leases
3,246,911
2,945,892
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 company.
14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
15
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
289,580
152,475
Between two and five years
633,488
264,139
923,068
416,614
TRIDENT LIFTING SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 20 -
16
Directors' transactions
Dividends totalling £0 (2022 - £1,100,000) were paid in the year in respect of shares held by the company's directors.
The company maintains a loan account with its directors. As at 30 June 2023 the company was owed £1,045,371 (2022: the company owed £92,989). The loan accounts are subject to an interest charge at 2% per annum and are repayable on demand.
17
Ultimate controlling party
Trident Holdings Ltd is the company's immediate and ultimate parent company.
The parent undertaking of the largest and smallest group of which the company is a member and consolidated financial statements are prepared is Trident Holdings Ltd. Copies of consolidated financial statements can be obtained from its registered office: 1 Hobbs House, Harrovian Business Village, Bessborough, Harrow, United Kingdom, HA1 3EX.
18
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,735,791
3,035,136
Adjustments for:
Taxation charged
869,989
776,456
Finance costs
279,026
259,264
Investment income
(9,916)
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
(872,282)
(846,264)
Increase/(decrease) in creditors
1,100,053
(124,976)
Cash generated from operations
5,384,366
3,725,949
19
Analysis of changes in net debt
1 July 2022
Net cash flows
30 June 2023
£
£
£
Cash at bank and in hand
2,906,564
135,817
3,042,381
Borrowings excluding overdrafts
(705,000)
180,000
(525,000)
Obligations under finance leases
(5,805,883)
(78,330)
(5,884,213)
(3,604,319)
237,487
(3,366,832)
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