IRIS Accounts Production v23.3.1.45 03370120 Board of Directors Board of Directors 1.8.22 31.7.23 31.7.23 renting and leasing of trucks and other heavy vehicles true false true true false false true false Ordinary 1.00000 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REGISTERED NUMBER: 03370120 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 July 2023

for

Farnborough Van & Truck Hire Limited

Farnborough Van & Truck Hire Limited (Registered number: 03370120)






Contents of the Financial Statements
for the Year Ended 31 July 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


Farnborough Van & Truck Hire Limited

Company Information
for the Year Ended 31 July 2023







DIRECTORS: Mr J H Brown
Mr T C Houghton





SECRETARY: Ms K Tyas





REGISTERED OFFICE: 26 Chapel Lane
Farnborough
Hampshire
GU14 9BE





REGISTERED NUMBER: 03370120 (England and Wales)





AUDITORS: WP Audit Limited
Statutory Auditors
TOR
Saint-Cloud Way
Maidenhead
Berkshire
SL6 8BN

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Strategic Report
for the Year Ended 31 July 2023

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

REVIEW OF BUSINESS
The company trades under the FVTH Commercial Vehicle Hire brand and has continued to experience robust organic growth through the management of its fleet of vehicles available for rental..

The business is funded primarily through retained profits and hire purchase borrowing. This funding enables management to investment in capital assets, brand, staff and infrastructure to ensure that the company is well positioned to capitalise on market opportunities available to it.

PRINCIPAL RISKS AND UNCERTAINTIES
Market risk
The company's main risks derive from the uncertainty in the UK economy, including the impact of macro-economic factors as well as external factors such as the conflict in Ukraine that would affect demand from customers as well as supply chain and inflationary pressures. In addition there is a potential impact of regulatory change (such as the Ultra Low Emission Vehicle zones) on customer demand for renting certain vehicles. This has not had a significant impact on the company in the period although there is an increased risk of supply chain disruptions and wider economic disruption in the future. The company has a high level of contracted revenue, reducing its exposure to a temporary downturn in trade.

Staff risk
The company also faces risk in relation to the retention of key staff. The company provides a competitive pay structure which is designed to retain key members of staff.

Information security risk
Due to the legislative environment including GDPR, an ongoing attention to information security is key to the business. The company has firewall software in place to restrict the impact of cyber-attack and regular training is provided to staff regarding cyber security and being aware of phishing attacks.

Tax risk
The company is compliant with its applicable tax rules, regulations and disclosure requirements. The company does not engage in any aggressive tax planning and all transactions undertaken by the company have a business purpose and commercial rationale.

Financial instruments
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from its trading activities which are entirely conducted in sterling, with bank accounts held in this currency with no exposure to exchange rate volatility. The company does not enter into any formally designated hedging arrangements.


Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Strategic Report
for the Year Ended 31 July 2023


The company's key financial performance indicators during the period were as follows:

2023 2022
£   s £   s

Turnover 12,564 10,434
Gross profit margin 20.0% 25.5%
EBITDA 8,004 6,391
Operating profit 2,084 2.042
Shareholders' funds 5,295 4,335

The company's operating results have performed in line with the expectations of the directors and the company is well positioned to respond to any changes in market demand.

The company's key profit measure is EBITDA, which is calculated as operating profit excluding depreciation and amortisation. In 2023, the EBITDA was £8.0m and the company's operating profit reported on a statutory basis was £2.1m, which includes depreciation and amortisation of £5.9m.

The company continues to invest in developing a modern fleet of vehicles for customer rental. Capital expenditure on the purchase of tangible fixed assets was £10.9m in the year, primarily funded through hire purchase financing.

The directors consider their non-financial KPI's include the number of vehicles the company currently has which is 514. The fleet of vehicles is continuously reviewed and renewed as necessary to ensure that the fleet remains fit to meet the needs of the company's customers.

ON BEHALF OF THE BOARD:





Mr T C Houghton - Director


21 February 2024

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Report of the Directors
for the Year Ended 31 July 2023

The directors present their report with the financial statements of the company for the year ended 31 July 2023.

DIVIDENDS
An interim dividend of 0.83 per share was paid on 31 August 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 July 2023 will be £ 100,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report.

Mr J H Brown
Mr T C Houghton

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr T C Houghton - Director


21 February 2024

Report of the Independent Auditors to the Members of
Farnborough Van & Truck Hire Limited

Opinion
We have audited the financial statements of Farnborough Van & Truck Hire Limited (the 'company') for the year ended 31 July 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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). This is the first year that the company has been subject to audit.

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 July 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
Farnborough Van & Truck Hire Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Report of the Independent Auditors to the Members of
Farnborough Van & Truck Hire Limited


Auditors' 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 a Report of the Auditors 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlines above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

-The engagement partners ensured that the engagement team collectively had the appropriate competence, capabilities and skill to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

-we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instance of non-compliance throughout the audit.

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

-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

-understanding the design of the company's remuneration policies.

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

-performed analytical procedures to identify unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-investigated the rationale behind significant or unusual transactions.

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

-agreeing financial statement disclosures to underlying supporting documentation;
-enquiring of management as to actual and potential litigation and claims; and
-reviewing correspondence with HMRC, relevant regulators and company's legal advisors.


Report of the Independent Auditors to the Members of
Farnborough Van & Truck Hire Limited

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Philippa Duckworth BSc FCCA (Senior Statutory Auditor)
for and on behalf of WP Audit Limited
Statutory Auditors
TOR
Saint-Cloud Way
Maidenhead
Berkshire
SL6 8BN

22 February 2024

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Income Statement
for the Year Ended 31 July 2023

31.7.23 31.7.22
Notes £    £   

TURNOVER 3 12,564,382 10,434,291

Cost of sales (10,052,374 ) (7,779,060 )
GROSS PROFIT 2,512,008 2,655,231

Administrative expenses (428,172 ) (614,723 )
2,083,836 2,040,508

Other operating income - 1,032
OPERATING PROFIT 5 2,083,836 2,041,540

Interest receivable and similar income 16,810 114
2,100,646 2,041,654

Interest payable and similar expenses 6 (887,840 ) (309,740 )
PROFIT BEFORE TAXATION 1,212,806 1,731,914

Tax on profit 7 (253,169 ) (384,317 )
PROFIT FOR THE FINANCIAL YEAR 959,637 1,347,597

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Other Comprehensive Income
for the Year Ended 31 July 2023

31.7.23 31.7.22
Notes £    £   

PROFIT FOR THE YEAR 959,637 1,347,597


OTHER COMPREHENSIVE INCOME
- (1,334,425 )
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME FOR THE YEAR,
NET OF INCOME TAX

-

(1,334,425

)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 959,637 13,172

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Balance Sheet
31 July 2023

31.7.23 31.7.22
Notes £    £   
FIXED ASSETS
Tangible assets 9 24,184,235 19,675,291

CURRENT ASSETS
Debtors 10 2,522,663 2,377,616
Cash at bank 1,896,156 1,598,817
4,418,819 3,976,433
CREDITORS
Amounts falling due within one year 11 (8,196,719 ) (6,773,648 )
NET CURRENT LIABILITIES (3,777,900 ) (2,797,215 )
TOTAL ASSETS LESS CURRENT LIABILITIES 20,406,335 16,878,076

CREDITORS
Amounts falling due after more than one year 12 (14,103,497 ) (11,487,321 )

PROVISIONS FOR LIABILITIES 16 (1,107,927 ) (1,055,481 )
NET ASSETS 5,194,911 4,335,274

CAPITAL AND RESERVES
Called up share capital 17 120,000 120,000
Capital redemption reserve 18 80,000 80,000
Retained earnings 18 4,994,911 4,135,274
SHAREHOLDERS' FUNDS 5,194,911 4,335,274

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Balance Sheet - continued
31 July 2023


The financial statements were approved by the Board of Directors and authorised for issue on 21 February 2024 and were signed on its behalf by:




Mr T C Houghton - Director



Mr J H Brown - Director


Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Statement of Changes in Equity
for the Year Ended 31 July 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 August 2021 200,000 4,302,102 - 4,502,102

Changes in equity
Issue of share capital (80,000 ) - - (80,000 )
Dividends - (100,000 ) - (100,000 )
Total comprehensive income - (66,828 ) 80,000 13,172
Balance at 31 July 2022 120,000 4,135,274 80,000 4,335,274

Changes in equity
Dividends - (100,000 ) - (100,000 )
Total comprehensive income - 959,637 - 959,637
Balance at 31 July 2023 120,000 4,994,911 80,000 5,194,911

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Cash Flow Statement
for the Year Ended 31 July 2023

31.7.23 31.7.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 6,992,080 5,234,450
Interest paid (90,518 ) (15,811 )
Interest element of hire purchase payments paid (797,322 ) (293,929 )
Government grants - 1,032
Tax paid (193,353 ) (31,966 )
Net cash from operating activities 5,910,887 4,893,776

Cash flows from investing activities
Purchase of tangible fixed assets (10,944,822 ) (9,905,910 )
Sale of tangible fixed assets 1,349,389 1,074,501
Interest received 16,810 114
Net cash from investing activities (9,578,623 ) (8,831,295 )

Cash flows from financing activities
New HP agreements in year 4,281,035 4,502,442
Capital repayments in year (321,250 ) 1,407,708
Amount introduced by directors 105,290 -
Share issue - (1,414,425 )
Equity dividends paid (100,000 ) (100,000 )
Net cash from financing activities 3,965,075 4,395,725

Increase in cash and cash equivalents 297,339 458,206
Cash and cash equivalents at beginning of year 2 1,598,817 1,140,611

Cash and cash equivalents at end of year 2 1,896,156 1,598,817

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Notes to the Cash Flow Statement
for the Year Ended 31 July 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.7.23 31.7.22
£    £   
Profit before taxation 1,212,806 1,731,914
Depreciation charges 5,919,759 4,349,875
Profit on disposal of fixed assets (833,270 ) (577,176 )
Government grants - (1,032 )
Finance costs 887,840 309,740
Finance income (16,810 ) (114 )
7,170,325 5,813,207
Increase in trade and other debtors (145,047 ) (991,507 )
(Decrease)/increase in trade and other creditors (33,198 ) 412,750
Cash generated from operations 6,992,080 5,234,450

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2023
31.7.23 1.8.22
£    £   
Cash and cash equivalents 1,896,156 1,598,817
Year ended 31 July 2022
31.7.22 1.8.21
£    £   
Cash and cash equivalents 1,598,817 1,140,611


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.8.22 Cash flow At 31.7.23
£    £    £   
Net cash
Cash at bank and in hand 1,598,817 297,339 1,896,156
1,598,817 297,339 1,896,156
Debt
Finance leases (15,231,590 ) (4,281,035 ) (19,512,625 )
Debts falling due within 1 year (321,250 ) 25,000 (296,250 )
Debts falling due after 1 year (1,135,625 ) 296,250 (839,375 )
(16,688,465 ) (3,959,785 ) (20,648,250 )
Total (15,089,648 ) (3,662,446 ) (18,752,094 )

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Notes to the Financial Statements
for the Year Ended 31 July 2023

1. STATUTORY INFORMATION

Farnborough Van & Truck Hire Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
In the application of the company's accounting policies the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

In preparing these financial statements, the directors have had to make the following judgements:
- Determine whether leases entered into by the company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
- A bad debt provision is included within the financial statements which is based on an assessment made by the directors of the recoverability of debtor balances.
- Tangible fixed assets, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycle and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining of the asset and projected disposal values.

Turnover
Turnover is the amount derived from ordinary activities and is measured at the fair value of the consideration received or receivable. Turnover is stated net of VAT.

Turnover from the hire of vehicles is recognised on a straight line basis over the period of hire.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Fixtures and fittings - 33% on cost
Motor vehicles - Straight line over life of the lease
Computer equipment - 33% on cost

Government grants
Grant income relating to the Coronavirus Job Retention Scheme (CJRS) has been recognised in the same period in which the expense has been incurred.

Financial instruments
Basic financial instruments are recognised at amortised cost using the effective interest method, except for investments in non-convertible preference and non-puttable preference and ordinary shares, which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value, with changes recognised in profit and loss.


Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £24,812 (2022: £20,637).

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.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.7.23 31.7.22
£    £   
United Kingdom 12,564,382 10,434,291
12,564,382 10,434,291

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

4. EMPLOYEES AND DIRECTORS
31.7.23 31.7.22
£    £   
Wages and salaries 1,135,791 1,209,885
Social security costs 154,664 109,075
Other pension costs 24,812 31,658
1,315,267 1,350,618

The average number of employees during the year was as follows:
31.7.23 31.7.22

Management & customer support 23 22

31.7.23 31.7.22
£    £   
Directors' remuneration 201,947 269,592

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

Information regarding the highest paid director is as follows:
31.7.23 31.7.22
£    £   
Emoluments etc 126,897 -

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.7.23 31.7.22
£    £   
Other operating leases 340,958 305,931
Depreciation - owned assets 43,469 26,372
Depreciation - assets on hire purchase contracts 5,876,290 4,323,504
Profit on disposal of fixed assets (833,270 ) (577,176 )
Auditors' remuneration 14,100 -

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.7.23 31.7.22
£    £   
Bank loan interest 90,518 15,811
Hire purchase 797,322 293,929
887,840 309,740

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.7.23 31.7.22
£    £   
Current tax:
UK corporation tax 200,723 193,353

Deferred tax 52,446 190,964
Tax on profit 253,169 384,317

Tax effects relating to effects of other comprehensive income

31.7.22
Gross Tax Net
£    £    £   
Purchase of own shares (1,334,425 ) - (1,334,425 )

8. DIVIDENDS
31.7.23 31.7.22
£    £   
Ordinary shares of £1 each
Interim 100,000 100,000

9. TANGIBLE FIXED ASSETS
Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 August 2022 204,924 33,111,474 89,259 33,405,657
Additions 24,271 10,914,430 6,121 10,944,822
Disposals - (3,178,869 ) - (3,178,869 )
At 31 July 2023 229,195 40,847,035 95,380 41,171,610
DEPRECIATION
At 1 August 2022 100,255 13,545,377 84,734 13,730,366
Charge for year 39,659 5,876,290 3,810 5,919,759
Eliminated on disposal - (2,662,750 ) - (2,662,750 )
At 31 July 2023 139,914 16,758,917 88,544 16,987,375
NET BOOK VALUE
At 31 July 2023 89,281 24,088,118 6,836 24,184,235
At 31 July 2022 104,669 19,566,097 4,525 19,675,291

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 August 2022 33,111,474
Additions 10,914,430
Disposals (3,178,869 )
At 31 July 2023 40,847,035
DEPRECIATION
At 1 August 2022 13,545,377
Charge for year 5,876,290
Eliminated on disposal (2,662,750 )
At 31 July 2023 16,758,917
NET BOOK VALUE
At 31 July 2023 24,088,118
At 31 July 2022 19,566,097

10. DEBTORS
31.7.23 31.7.22
£    £   
Amounts falling due within one year:
Trade debtors 2,295,358 2,157,434
Other debtors 4,545 55,550
Prepayments and accrued income 171,760 164,632
2,471,663 2,377,616

Amounts falling due after more than one year:
Other debtors 51,000 -

Aggregate amounts 2,522,663 2,377,616

Contracted rent receivables due within one year is £7,396,464 (2022 : £12,058,024) and in 1-5 years is £1,452,465 (2022 : £8,849,924).

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.23 31.7.22
£    £   
Bank loans and overdrafts (see note 13) 296,250 321,250
Hire purchase contracts (see note 14) 6,248,503 4,879,894
Trade creditors 888,873 811,530
Tax 200,723 193,353
Social security and other taxes 91,288 35,321
VAT 105,910 132,811
Other creditors 21,117 118,521
Directors' loan accounts 105,290 -
Accruals and deferred income 238,765 280,968
8,196,719 6,773,648

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.7.23 31.7.22
£    £   
Bank loans (see note 13) 839,375 1,135,625
Hire purchase contracts (see note 14) 13,264,122 10,351,696
14,103,497 11,487,321

13. LOANS

An analysis of the maturity of loans is given below:

31.7.23 31.7.22
£    £   
Amounts falling due within one year or on demand:
Bank loans 296,250 321,250

Amounts falling due between two and five years:
Bank loans - 2-5 years 839,375 1,135,625

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.7.23 31.7.22
£    £   
Net obligations repayable:
Within one year 6,248,503 4,879,894
Between one and five years 13,264,122 10,351,696
19,512,625 15,231,590

Non-cancellable operating leases
31.7.23 31.7.22
£    £   
Within one year 412,535 186,000
Between one and five years 1,012,797 617,994
1,425,332 803,994

15. SECURED DEBTS

The following secured debts are included within creditors:

31.7.23 31.7.22
£    £   
Bank loans 1,135,625 1,456,875
Hire purchase contracts 19,512,625 15,231,590
20,648,250 16,688,465

The bank loans are secured by a fixed and floating charge over the assets of the company in favour of Clydesdale Bank Plc.

Hire purchase liabilities are secured on the asset to which the financing relates.

Farnborough Van & Truck Hire Limited (Registered number: 03370120)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

16. PROVISIONS FOR LIABILITIES
31.7.23 31.7.22
£    £   
Deferred tax 1,107,927 1,055,481

Deferred
tax
£   
Balance at 1 August 2022 1,055,481
Charge to Income Statement during year 52,446
Balance at 31 July 2023 1,107,927

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.7.23 31.7.22
value: £    £   
120,000 Ordinary £1 120,000 120,000

The shares constitute a single class of shares with the same rights in respect of income, capital and voting.

18. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 August 2022 4,135,274 80,000 4,215,274
Profit for the year 959,637 959,637
Dividends (100,000 ) (100,000 )
At 31 July 2023 4,994,911 80,000 5,074,911

19. PENSION COMMITMENTS

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

The pension cost charge represents contributions payable by the company to the fund and amounted to £48,679 (2022 - £20,637). Contributions totalling £6,091 (2022-£3,357) were payable to the fund at the Balance Sheet date.

20. CAPITAL COMMITMENTS
31.7.23 31.7.22
£    £   
Contracted but not provided for in the
financial statements 4,620,403 5,084,884

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr J H Brown.