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REGISTERED NUMBER: 05436235 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 June 2023

for

PowerX Equipment Ltd

PowerX Equipment Ltd (Registered number: 05436235)






Contents of the Financial Statements
for the Year Ended 30 June 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


PowerX Equipment Ltd

Company Information
for the Year Ended 30 June 2023







DIRECTORS: J Bracken
A F Moss
L S Talbot
Ms L J Orme





REGISTERED OFFICE: Site 7 Cornets End Lane
Meriden
Coventry
CV7 7LG





REGISTERED NUMBER: 05436235 (England and Wales)





AUDITORS: Thornton Springer LLP
Chartered Accountants and
Statutory Auditor
67 Westow Street
London
SE19 3RW

PowerX Equipment Ltd (Registered number: 05436235)

Strategic Report
for the Year Ended 30 June 2023

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

REVIEW OF BUSINESS
PowerX Equipment Ltd (referred to as PowerX) is a wholly owned direct subsidiary of PowerX Holdings Ltd.
PowerX emerges as a pioneering force in aggregate and mineral processing, propelled by industry specialists with extensive experience. Acknowledging the ever-changing landscape of the industry and the evolving needs of customers, PowerX commits to continual evolution to meet present and future demands.
With an unwavering focus on innovation and service excellence, we forge partnerships with renowned brands like Powerscreen, Terex, Matec, AMP, and MS. These collaborations empower us to offer an extensive range of top-tier equipment and solutions, from Aggregate Washing to Crushing & Screening, Bulk Materials Handling, Recycling, and Materials Processing.
Whether clients seek single equipment or comprehensive plant solutions, PowerX stands ready to design, supply, and install tailored solutions in Aggregate Washing, Crushing & Screening, Bulk Materials Handling, Recycling, and Materials Processing. The company's ethos revolves round fostering enduring relationships with customers and suppliers, with service and integrity forming the bedrock of operations.
PowerX Equipment distinguishes itself by intimately understanding the functionality and reliability of each installed equipment piece, ensuring seamless integration within plant solutions. The Spares and Servicing division complements this commitment by offering genuine parts and engineering expertise, minimizing downtime and maximizing productivity.

PRINCIPAL RISKS AND UNCERTAINTIES
22/23 has been a stable year with an increased shift towards mineral processing as PowerX continue to evaluate their product offering. PowerX continues to work with major projects. PowerX had a good mix of recurring and new custom. Going into 23/24 with a strong order book. PowerX have managed their margins well and this is highlighted in the net profit position. We continue to manage our cost base on a regular basis to ensure costs are managed - always carrying out benchmarking exercises on cost control.

RESULTS AND PERFORMANCE
Over the year turnover has remained steady. Although turnover has increased in the spares/service & processing division. The Spares and Servicing division complements this commitment by offering genuine parts and engineering expertise, minimizing downtime and maximizing productivity.
PowerX continues to grow its asset base.
The results of the company as set out in these accounts show a revenue of £19.8m (2022 - £22.2m) with a pre-tax reported profit of £1.1m (2022 - £1.2m). The net assets at the year end were £3.9m.

KEY PERFORMANCE INDICATORS

As the business continues to grow the main areas we are analysing as performance indicators are: Sales Growth - maintaining our market share, whilst being conscious of managing our operating costs on new mineral processing contracts.

ON BEHALF OF THE BOARD:





L S Talbot - Director


15 March 2024

PowerX Equipment Ltd (Registered number: 05436235)

Report of the Directors
for the Year Ended 30 June 2023

The directors present their report with the financial statements of the company for the year ended 30 June 2023.

DIVIDENDS
An interim dividend of £150,000 per share was paid on 30 June 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 June 2023 will be £ 150,000 .

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

J Bracken
A F Moss
L S Talbot
Ms L J Orme

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Thornton Springer LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





L S Talbot - Director


15 March 2024

Report of the Independent Auditors to the Members of
PowerX Equipment Ltd

Opinion
We have audited the financial statements of PowerX Equipment Ltd (the 'company') for the year ended 30 June 2023 which comprise the Statement of 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).

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.

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.

Report of the Independent Auditors to the Members of
PowerX Equipment Ltd


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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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
PowerX Equipment Ltd


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, outlined 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.

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with relevant laws and regulations. Non-compliance with these laws and regulations might have a material effect on the financial statements.

We evaluated management's incentives and opportunity for fraudulent manipulation of the financial statement (including the risk of override of controls) and determined that the principal risks were posting of unusual journal entries outside the normal course of business and revenue recognition journal entries to manipulate the company's performance profit measures and other key performance indicators.

Audit procedures performed included: review of the financial statements and disclosures to underlying supporting documentation, review of compliance with the laws and regulations, enquiries with management, testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Under ISA 240 (UK) there is a presumed risk that revenue may be misstated due to the improper recognition of revenue. To address this risk, we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard, performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions. We tested a sample of revenue transactions to supporting evidence and tested, on a sample basis, revenue related balances in the balance sheet.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 or intentional misrepresentations, or through 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.

Report of the Independent Auditors to the Members of
PowerX Equipment Ltd


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.




Zahid Saleem FCCA ACA (Senior Statutory Auditor)
for and on behalf of Thornton Springer LLP
Chartered Accountants and
Statutory Auditor
67 Westow Street
London
SE19 3RW

15 March 2024

PowerX Equipment Ltd (Registered number: 05436235)

Statement of Comprehensive Income
for the Year Ended 30 June 2023

30.6.23 30.6.22
Notes £    £   

TURNOVER 4 19,814,721 22,210,683

Cost of sales (14,066,112 ) (17,543,484 )
GROSS PROFIT 5,748,609 4,667,199

Distribution costs (253,783 ) (498,973 )
Administrative expenses (3,086,345 ) (2,664,525 )
OPERATING PROFIT 6 2,408,481 1,503,701

Interest receivable and similar income 2,146 -
2,410,627 1,503,701

Interest payable and similar expenses 7 (1,312,642 ) (295,456 )
PROFIT BEFORE TAXATION 1,097,985 1,208,245

Tax on profit 8 152,653 (349,573 )
PROFIT FOR THE FINANCIAL YEAR 1,250,638 858,672

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,250,638

858,672

PowerX Equipment Ltd (Registered number: 05436235)

Balance Sheet
30 June 2023

30.6.23 30.6.22
Notes £    £   
FIXED ASSETS
Tangible assets 10 7,786,023 6,241,498

CURRENT ASSETS
Stocks 11 9,852,167 7,830,852
Debtors 12 6,073,413 6,921,542
Cash at bank 362,474 437,519
16,288,054 15,189,913
CREDITORS
Amounts falling due within one year 13 (15,805,940 ) (15,431,584 )
NET CURRENT ASSETS/(LIABILITIES) 482,114 (241,671 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,268,137

5,999,827

CREDITORS
Amounts falling due after more than one
year

14

(3,909,819

)

(2,735,398

)

PROVISIONS FOR LIABILITIES 17 (380,000 ) (386,749 )
NET ASSETS 3,978,318 2,877,680

CAPITAL AND RESERVES
Called up share capital 18 1 1
Retained earnings 19 3,978,317 2,877,679
SHAREHOLDERS' FUNDS 3,978,318 2,877,680

The financial statements were approved by the Board of Directors and authorised for issue on 15 March 2024 and were signed on its behalf by:





L S Talbot - Director


PowerX Equipment Ltd (Registered number: 05436235)

Statement of Changes in Equity
for the Year Ended 30 June 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2021 1 2,169,007 2,169,008

Changes in equity
Dividends - (150,000 ) (150,000 )
Total comprehensive income - 858,672 858,672
Balance at 30 June 2022 1 2,877,679 2,877,680

Changes in equity
Dividends - (150,000 ) (150,000 )
Total comprehensive income - 1,250,638 1,250,638
Balance at 30 June 2023 1 3,978,317 3,978,318

PowerX Equipment Ltd (Registered number: 05436235)

Cash Flow Statement
for the Year Ended 30 June 2023

30.6.23 30.6.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 950,860 4,653,194
Interest paid - (932 )
Interest element of hire purchase payments
paid

(1,312,642

)

(294,524

)
Tax paid 145,275 (392,252 )
Net cash from operating activities (216,507 ) 3,965,486

Cash flows from investing activities
Purchase of tangible fixed assets (4,132,633 ) (5,319,338 )
Sale of tangible fixed assets 2,050,874 -
Interest received 2,146 -
Net cash from investing activities (2,079,613 ) (5,319,338 )

Cash flows from financing activities
Capital repayments in year 1,341,325 1,664,141
Amount introduced by directors 2,554,000 701,000
Amount withdrawn by directors (1,524,250 ) (846,000 )
Equity dividends paid (150,000 ) (150,000 )
Net cash from financing activities 2,221,075 1,369,141

(Decrease)/increase in cash and cash equivalents (75,045 ) 15,289
Cash and cash equivalents at beginning of
year

2

437,519

422,230

Cash and cash equivalents at end of year 2 362,474 437,519

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Cash Flow Statement
for the Year Ended 30 June 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
30.6.23 30.6.22
£    £   
Profit before taxation 1,097,985 1,208,245
Depreciation charges 669,675 516,466
Profit on disposal of fixed assets (132,439 ) -
Finance costs 1,312,642 295,456
Finance income (2,146 ) -
2,945,717 2,020,167
Increase in stocks (2,021,315 ) (635 )
Decrease/(increase) in trade and other debtors 1,625,713 (2,320,412 )
(Decrease)/increase in trade and other creditors (1,599,255 ) 4,954,074
Cash generated from operations 950,860 4,653,194

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 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 362,474 437,519
Year ended 30 June 2022
30.6.22 1.7.21
£    £   
Cash and cash equivalents 437,519 422,230


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.7.22 Cash flow At 30.6.23
£    £    £   
Net cash
Cash at bank 437,519 (75,045 ) 362,474
437,519 (75,045 ) 362,474
Debt
Finance leases (4,683,927 ) (1,341,325 ) (6,025,252 )
(4,683,927 ) (1,341,325 ) (6,025,252 )
Total (4,246,408 ) (1,416,370 ) (5,662,778 )

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements
for the Year Ended 30 June 2023

1. STATUTORY INFORMATION

PowerX Equipment Ltd 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 financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.

2. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention as modified by the recognition of certain financial assets and liabilities measured at fair value.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

Depreciation of plant and machinery

Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives as set out above. The selection of these residual values and estimated lives requires the exercise of management judgement.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding contracts, rebates, value added tax and other sales taxes. In respect of service contracts turnover is recognised when the company obtains the right to consideration.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 5% on cost
Fixtures and fittings - 33% on cost
Motor vehicles - 33% on cost

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase and other costs incurred in bringing stock to its present location and condition, including any import costs, duties and carriage.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.


PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

3. ACCOUNTING POLICIES - continued
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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

3. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and intra-group balances, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at cost and amortised cost are assessed for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

For financial assets measured at amortised costs, the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated cash flow discounted at the asset's original effective interest rate.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank overdraft, intra-group balances and hire purchase contracts, 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, and, if applicable, other short-term highly liquid investments with original maturities of three months or less.

4. TURNOVER

The turnover and profit before taxation from continuing activities is attributable to one principal activity of the company.

Geographical analysis

Segmental analysis has not been provided on the basis that in the directors' opinion such information would be seriously prejudicial to the company's interest.

5. EMPLOYEES AND DIRECTORS
30.6.23 30.6.22
£    £   
Wages and salaries 1,922,882 1,393,026
Social security costs 211,066 150,982
Other pension costs 27,104 18,052
2,161,052 1,562,060

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
30.6.23 30.6.22

Management and administration 8 8
Sales and quarrying services 29 21
37 29

30.6.23 30.6.22
£    £   
Directors' remuneration 175,866 166,154
Directors' pension contributions to money purchase schemes 3,000 2,700

No retirement benefits are accruing for any directors.

6. OPERATING PROFIT

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

30.6.23 30.6.22
£    £   
Hire of plant and machinery 260,332 477,858
Other operating leases 202,287 276,576
Depreciation - owned assets 10,012 7,275
Depreciation - assets on hire purchase contracts 659,661 509,191
Profit on disposal of fixed assets (132,439 ) -
Auditors' remuneration 10,000 12,587
Foreign exchange differences (860 ) (2,731 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
30.6.23 30.6.22
£    £   
Interest on overdue tax - 932
Hire purchase 1,312,642 294,524
1,312,642 295,456

8. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
30.6.23 30.6.22
£    £   
Current tax:
(Over)/under provision in prior years (145,904 ) -

Deferred tax (6,749 ) 349,573
Tax on profit (152,653 ) 349,573

UK corporation tax has been charged at 25% .

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

8. TAXATION - continued

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30.6.23 30.6.22
£    £   
Profit before tax 1,097,985 1,208,245
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

274,496

229,567

Effects of:
Expenses not deductible for tax purposes 13,805 1,349
Income not taxable for tax purposes (33,110 ) -
Capital allowances in excess of depreciation (638,995 ) (723,973 )
Utilisation of tax losses 383,804 493,057
Adjustments to tax charge in respect of previous periods (145,904 ) -
Deferred tax (6,749 ) 349,573
Total tax (credit)/charge (152,653 ) 349,573

Changes to the future UK corporation tax rates were substantively enacted as part of the Finance Bill 2021 on 24 May 2021. It makes provision for the rate of corporation tax in the UK to increase from 1 April 2023 from 19% to 25% where a company has taxable profits exceeding £250,000. Therefore, the tax rate of 25% has been used in the calculations for 2023.

9. DIVIDENDS
30.6.23 30.6.22
£    £   
Ordinary share of £1
Interim 150,000 150,000

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 July 2022 6,067,330 110,855 1,286,384 - 7,464,569
Additions 3,874,135 2,255 246,746 9,497 4,132,633
Disposals (2,049,448 ) - (228,629 ) - (2,278,077 )
At 30 June 2023 7,892,017 113,110 1,304,501 9,497 9,319,125
DEPRECIATION
At 1 July 2022 352,463 110,855 759,753 - 1,223,071
Charge for year 392,959 564 273,880 2,270 669,673
Eliminated on disposal (187,672 ) - (171,970 ) - (359,642 )
At 30 June 2023 557,750 111,419 861,663 2,270 1,533,102
NET BOOK VALUE
At 30 June 2023 7,334,267 1,691 442,838 7,227 7,786,023
At 30 June 2022 5,714,867 - 526,631 - 6,241,498

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 July 2022 5,950,748 763,870 6,714,618
Additions 3,712,293 246,746 3,959,039
Disposals (2,049,448 ) (107,528 ) (2,156,976 )
At 30 June 2023 7,613,593 903,088 8,516,681
DEPRECIATION
At 1 July 2022 343,719 237,239 580,958
Charge for year 385,781 273,880 659,661
Eliminated on disposal (187,672 ) (50,869 ) (238,541 )
At 30 June 2023 541,828 460,250 1,002,078
NET BOOK VALUE
At 30 June 2023 7,071,765 442,838 7,514,603
At 30 June 2022 5,607,029 526,631 6,133,660

11. STOCKS
30.6.23 30.6.22
£    £   
Stocks 9,852,167 7,830,852

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.23 30.6.22
£    £   
Trade debtors 1,572,012 1,624,696
Amounts owed by group undertakings 3,626,299 4,573,493
Other debtors - 404
Amounts owed from related
entities - 672,137
Corporation tax 852 223
VAT 372,558 -
Prepayments and accrued income 501,692 50,589
6,073,413 6,921,542

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.23 30.6.22
£    £   
Hire purchase contracts (see note 15) 2,115,433 1,948,529
Trade creditors 7,992,489 9,215,013
Amounts owed to group undertakings 404,398 -
Social security and other taxes 127,907 49,236
VAT - 1,368,818
Other creditors 1,564,917 2,090,141
Amounts owed to related entities 2,347,995 157,677
Directors' current accounts 1,076,318 46,568
Accruals and deferred income 176,483 555,602
15,805,940 15,431,584

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.6.23 30.6.22
£    £   
Hire purchase contracts (see note 15) 3,909,819 2,735,398

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

15. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

30.6.23 30.6.22
£    £   
Gross obligations repayable:
Within one year 2,538,797 2,216,249
Between one and five years 4,909,127 3,180,320
7,447,924 5,396,569

Finance charges repayable:
Within one year 423,364 267,720
Between one and five years 999,308 444,922
1,422,672 712,642

Net obligations repayable:
Within one year 2,115,433 1,948,529
Between one and five years 3,909,819 2,735,398
6,025,252 4,683,927

16. SECURED DEBTS

The following secured debts are included within creditors:

30.6.23 30.6.22
£    £   
Hire purchase contracts 6,025,252 4,683,927

Hire purchase contracts are secured against the related assets.

17. PROVISIONS FOR LIABILITIES
30.6.23 30.6.22
£    £   
Deferred tax 380,000 386,749

Deferred
tax
£   
Balance at 1 July 2022 386,749
Provided during year (6,749 )
Balance at 30 June 2023 380,000

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.23 30.6.22
value: £    £   
1 Ordinary £1 1 1

19. RESERVES
Retained
earnings
£   

At 1 July 2022 2,877,679
Profit for the year 1,250,638
Dividends (150,000 )
At 30 June 2023 3,978,317

20. ULTIMATE PARENT COMPANY

The immediate and ultimate parent company during the financial year was PowerX Holdings Limited, a company incorporated in England and Wales.

These financial statements have been consolidated in the financial statements of PowerX Holdings Limited. The consolidated financial statements can be obtained from Site 7, Meriden Park, Cornets End lane, Coventry, CV7 7LG

21. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Companies under common control
30.6.23 30.6.22
£    £   
Sales 3,351,403 2,784,466
Purchases 1,842,307 1,164,950

22. ULTIMATE CONTROLLING PARTY

The directors are considered to be the ultimate controlling parties by virtue of their ability to act in concert in respect of the financial and operating policies of the company.