Company registration number 01722401 (England and Wales)
BROUGHTON PLANT HIRE AND SALES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BROUGHTON PLANT HIRE AND SALES LIMITED
COMPANY INFORMATION
Directors
R Barry
(Appointed 7 February 2023)
M Broughton
T Friedrich
(Appointed 2 March 2023)
D Lewis
(Appointed 7 February 2023)
L Mendelsohn
(Appointed 2 March 2023)
R Olbrich
(Appointed 2 March 2023)
Secretary
D Lewis
Company number
01722401
Registered office
Unit 10
Trade City
Ashton Road
Romford
RM3 8UJ
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
BROUGHTON PLANT HIRE AND SALES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
BROUGHTON PLANT HIRE AND SALES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

Broughton Plant Hire and Sales Limited (BPHSL) specializes in the hire and sale of plant and equipment to the mechanical, electrical and fire protection industries.

BPHSL was owned and a trading division of Michael Broughton Ltd (01110833) (MBL) until March 2023 where a successful sale and carving out of the business was achieved. The company is now owned and forms part of the group structure within LIFCO AB.

All staff were transferred by TUPE to BPHSL following the sale, allowing continued stable employment smooth transition for the business.

Within the 1st year of BPHSL trading it has maintained the growth of when it was a division within MBL. This saw turnover go from £22.8m within MBL 2023 accounts for 11 months of trade to £22.4m for 10 months of trading within these accounts. This shows pro rata an 8% margin of growth for the year.

To maintain and grow market share BPHSL will continue to invest in its hire fleet, innovative technologies and new systems for better efficiency. This combined with updated processes and long term environmentally friendly ways of working will allow us to continue our goal to provide our customers with a second to none customer experience and service.

This service and experience is key to our business as we are committed to long-term partnerships with our customers and have built a strong reputation in our industry of specialist knowledge, experience and product expertise in our respective markets.

BROUGHTON PLANT HIRE AND SALES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The industry has seen a decline in the pressures on the cost and availability of materials and equipment which has helped with profitability, but these underlying risks continue to challenge all companies within the industry. BPHSL has used a wide range of suppliers and maintained high stock levels to ensure equipment is sourced easily and at a competitive cost.

The market remains highly competitive. The company seeks to maintain its history within MBL of strong growth by competing aggressively on price while providing added value and service to its customers. It is anticipated that as the reputation of the business continues to grow this will foster further opportunities for the business in the future.

All new customers and existing accounts are subjected to a detailed credit risk analysis to minimize the company's exposure to bad debt. Payment patterns are closely monitored to identify the early stages of payment difficulties.

The company is exposed to the usual credit and cash flow risks associated with the construction industry and from selling on credit terms. These risks are managed through normal credit control procedures and by maintaining regular contact with its customers.

The construction industry has suffered from insolvencies of large established contractors following significant increases in material costs which has a delayed effect on a proportion of the BPHSL client base. BPHSL has now and historically been able to withstand the tougher trading conditions which have been prevalent within construction over the past few years due the strength of its balance sheet and substantial cash reserves along with its maximization of assets.

BPHSL has enhanced its credit scoring of future and existing customers to ensure debt is robustly managed, which the directors believe will mitigate risks going forward as does its wide customer base which results in a lower level of credit risk. Given the Company’s strong position in industry and large customer base it can be selective on existing and future customers.

The company does not enter forward currency contracts in respect of its purchases. It operates a foreign currency account but is not materially exposed to foreign exchange rate risk.

ln respect of bank balances, liquidity risk is managed by the regular review of cash requirements. The company has no requirement for an overdraft facility as it is generally in a very strong cash position, with short-term fluctuations managed through movements in its liquid resources. The directors do not envisage any short to medium term borrowing requirements. Interest is received on cash balances at pre-agreed rates thus negating the need for speculative money market facilities.

Fixed asset purchases and trade creditors' liquidity risk is managed by ensuring that sufficient funds are available to meet liabilities as they fall due.

Key performance indicators

 

2023 (£)

2022 (£)

Turnover

22,430,683

-

Gross Profit

13,820,923

-

Gross Profit Margin %

61.6%

-

Profit before taxation

2,230,597

-

Profit before taxation %

EBITDA

9.9%

12,108,704

-

-

Future developments

Given BPHSL’s wide customer base, its strong cash position and the strength of its balance sheet the directors believe that it is well placed to enjoy continuing profitability and growth into the future. The new systems, processes and operational developments being implemented throughout this year will reinforce and enhance existing services and products to our existing and future customers and lay the foundations to support future plans for growth of the business in 2024.

BROUGHTON PLANT HIRE AND SALES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

On behalf of the board

D Lewis
Director
28 March 2024
BROUGHTON PLANT HIRE AND SALES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activity of the company was that of plant hire and sales. Prior to 2 March 2023 the company was dormant.

Results and dividends

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

Ordinary dividends were paid amounting to £19,389,116. The directors do not recommend payment of a further dividend.

Directors

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

R Barry
(Appointed 7 February 2023)
M Broughton
T Friedrich
(Appointed 2 March 2023)
D Lewis
(Appointed 7 February 2023)
L Mendelsohn
(Appointed 2 March 2023)
R Olbrich
(Appointed 2 March 2023)
M Broughton
(Resigned 2 March 2023)
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
D Lewis
Director
28 March 2024
BROUGHTON PLANT HIRE AND SALES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial 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:

 

 

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.

BROUGHTON PLANT HIRE AND SALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BROUGHTON PLANT HIRE AND SALES LIMITED
- 6 -
Opinion

We have audited the financial statements of Broughton Plant Hire and Sales Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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:

BROUGHTON PLANT HIRE AND SALES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BROUGHTON PLANT HIRE AND SALES LIMITED
- 7 -
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:

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.

Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including transactions with related parties, revenue recognition, management override of systems and control and accounting estimates.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

BROUGHTON PLANT HIRE AND SALES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BROUGHTON PLANT HIRE AND SALES LIMITED
- 8 -

Other matters which we are required to address

For the period ended 31 December 2022 the Company met the requirements for exemption from audit and subsequently the comparative figures within these financial statements have not been audited.

Use of our report

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

Malcolm McGready
Senior Statutory Auditor
For and on behalf of Ensors Accountants LLP
28 March 2024
Chartered Accountants
Statutory Auditor
Connexions
159 Princes Street
Ipswich
IP1 1QJ
BROUGHTON PLANT HIRE AND SALES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Year
Period
ended
ended
31 December
31 December
2023
2022
unaudited
Notes
£
£
Turnover
3
22,430,683
-
Cost of sales
(8,609,760)
-
0
Gross profit
13,820,923
-
Administrative expenses excluding depreciation, amortisation and profit on disposal
(3,830,704)
Depreciation, amortisation and profit on disposal
(7,878,642)
Administrative expenses
(11,709,346)
-
0
Other operating income
1,386
-
0
Operating profit
4
2,112,963
-
Interest receivable and similar income
7
117,634
-
0
Profit before taxation
2,230,597
-
0
Tax on profit
8
(2,375,337)
-
0
Loss for the financial year
(144,740)
-
0

The income statement has been prepared on the basis that all operations are continuing operations.

BROUGHTON PLANT HIRE AND SALES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
unaudited
Notes
£
£
£
£
Fixed assets
Goodwill
10
57,816,477
-
0
Other intangible assets
10
3
-
Total intangible assets
57,816,480
-
Tangible assets
11
5,771,113
-
0
63,587,593
-
Current assets
Stocks
12
385,238
-
Debtors
13
5,546,381
2
Cash at bank and in hand
10,782,026
-
0
16,713,645
2
Creditors: amounts falling due within one year
14
(9,884,484)
-
Net current assets
6,829,161
2
Net assets
70,416,754
2
Capital and reserves
Called up share capital
17
100
2
Share premium account
3,499,995
-
0
Other reserves
67,061,399
-
0
Profit and loss reserves
(144,740)
-
0
Total equity
70,416,754
2

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 28 March 2024 and are signed on its behalf by:
D Lewis
Director
Company registration number 01722401 (England and Wales)
BROUGHTON PLANT HIRE AND SALES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Capital contribution reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022 (unaudited)
2
-
0
-
-
0
2
Period ended 31 December 2022 (unaudited)
Profit and total comprehensive income
-
-
-
-
0
-
0
Balance at 31 December 2022 (unaudited)
2
-
0
-
-
0
2
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
-
(144,740)
(144,740)
Issue of share capital
17
98
3,499,995
-
-
3,500,093
Dividends
9
-
-
(19,389,116)
-
(19,389,116)
Capital contribution
-
-
86,450,515
-
0
86,450,515
Balance at 31 December 2023
100
3,499,995
67,061,399
(144,740)
70,416,754
BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Broughton Plant Hire and Sales Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 10, Trade City, Ashton Road, Romford, RM3 8UJ.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Lifco AB. These consolidated financial statements are available from https://www.lifco.se/investors/financial-reports

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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Where revenue relates to hire activities, revenue is recognised on a straight line basis over the period of hire.

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is written off over the expected period of recovery, which is 7 years.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
25% straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
25% straight line
Fixtures and fittings
25% straight line
Vehicles, plant and machinery
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.

Assets acquired as a result of the asset purchase described in note 18 are being depreciated over their remaining useful economic lives.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

1.9
Cash and cash equivalents

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

1.10
Financial instruments

The 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 statement of financial position 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.

BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
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.

1.12
Taxation

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

BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

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

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

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

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.16

Business combinations and goodwill

During the year the company enacted a business combination under the purchase method of accounting. The company has recognised the fair value at the acquisition date of assets and liabilities acquired or assumed. The excess of the fair value of the purchase consideration above the fair value of separately identifiable assets and liabilities acquired is recognised as goodwill.

BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of goodwill

In determining the carrying value of goodwill, the company must assess whether there are any indicators of impairment which may be an indicator that the value of the goodwill would require writing down.

 

In assessing whether the goodwill is displaying indicators of impairment is, in itself a key estimation. At the reporting date, the directors do not consider that the goodwill has displayed any indicators of impairment.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Plant Hire
22,430,683
-
2023
2022
£
£
Other revenue
Interest income
117,634
-

All turnover arose within the United Kingdom.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
2,179,294
-
Profit on disposal of tangible fixed assets
(378,959)
-
Amortisation of intangible assets
7,816,447
-
Operating lease charges
573,215
-
BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Directors
2
1
Administration
24
26
Site and production
70
70
Total
96
97

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,803,552
-
0
Social security costs
513,424
-
Pension costs
101,716
-
0
5,418,692
-
0
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
258,360
-
0
Company pension contributions to defined contribution schemes
2,201
-
260,561
-
0
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
143,004
-
Company pension contributions to defined contribution schemes
1,101
-
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
117,634
-
0
BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
2,518,903
-
0
Deferred tax
Origination and reversal of timing differences
(143,566)
-
0
Total tax charge
2,375,337
-
0

The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,230,597
-
0
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
524,636
-
0
Tax effect of expenses that are not deductible in determining taxable profit
5,962
-
0
Amortisation on assets not qualifying for tax allowances
1,837,626
-
0
Fixed asset timing differences
(19,143)
-
0
Other adjustments
26,256
-
0
Taxation charge for the year
2,375,337
-
9
Dividends
2023
2022
£
£
Final paid
19,389,116
-
0
BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
10
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2023
-
0
-
0
-
0
Additions - separately acquired
-
0
3,413
3,413
Additions - business combinations
65,629,514
-
0
65,629,514
At 31 December 2023
65,629,514
3,413
65,632,927
Amortisation and impairment
At 1 January 2023
-
0
-
0
-
0
Amortisation charged for the year
7,813,037
3,410
7,816,447
At 31 December 2023
7,813,037
3,410
7,816,447
Carrying amount
At 31 December 2023
57,816,477
3
57,816,480
At 31 December 2022
-
0
-
0
-
0
11
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Vehicles, plant and machinery
Total
£
£
£
£
Cost
At 1 January 2023
-
0
-
0
-
0
-
0
Additions
111,866
52,690
7,808,902
7,973,458
Disposals
-
0
-
0
(31,635)
(31,635)
At 31 December 2023
111,866
52,690
7,777,267
7,941,823
Depreciation and impairment
At 1 January 2023
-
0
-
0
-
0
-
0
Depreciation charged in the year
42,233
20,998
2,116,063
2,179,294
Eliminated in respect of disposals
-
0
-
0
(8,584)
(8,584)
At 31 December 2023
42,233
20,998
2,107,479
2,170,710
Carrying amount
At 31 December 2023
69,633
31,692
5,669,788
5,771,113
At 31 December 2022
-
0
-
0
-
0
-
0
BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Stocks
2023
2022
£
£
Raw materials and consumables
385,238
-
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,095,708
-
0
Amounts owed by group undertakings
-
0
2
Other debtors
63,617
-
0
Prepayments and accrued income
243,490
-
0
5,402,815
2
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 15)
143,566
-
0
Total debtors
5,546,381
2
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
415,453
-
0
Corporation tax
1,868,903
-
0
Other taxation and social security
1,255,657
-
0
Dividends payable
5,751,223
-
0
Other creditors
80,184
-
0
Accruals and deferred income
513,064
-
0
9,884,484
-
0
BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
15
Deferred taxation

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

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
141,060
-
Short term timing differences
2,506
-
143,566
-
2023
Movements in the year:
£
Liability at 1 January 2023
-
Credit to profit or loss
(143,566)
Asset at 31 December 2023
(143,566)
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
101,716
-

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

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A ordinary shares of 1p each
9,500
2
95
2
B ordinary shares of 1p each
500
-
5
-
10,000
2
100
2
BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Share capital
(Continued)
- 23 -

As at 1 January 2023 the issued share capital comprised 2 £1 Ordinary shares.

 

On 2 March 2023 the company:

 

 

The shares have attached to them full voting, dividend and capital distribution (including on winding up). They do not confer any rights of redemption.

18
Acquisition

On 2 March 2023 the company acquired the trade and assets of Michael Broughton Limited's plant hire and sales business.

Fair Value
£
Intangible assets
3,413
Property, plant and equipment
5,346,057
Inventories
252,226
Trade and other receivables
4,950,252
Cash and cash equivalents
14,742,893
Trade and other payables
(973,840)
Total identifiable net assets
24,321,001
Goodwill
65,629,514
Total consideration
89,950,515
Satisfied by:
£
Cash
80,516,000
Issue of shares
3,500,000
Deferred consideration
5,487,000
Stamp duty
447,515
89,950,515
BROUGHTON PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Acquisition
(Continued)
- 24 -

The goodwill arising on the acquisition of the business is attributable to the anticipated future profitability of the entity, along with its customer records and developed brand. In the view of the directors such items are not able to be identified separately. The directors consider that goodwill has a useful economic life of 7 years.

 

On 2 March 2023, a series of connected transactions took place which resulted in the company acquiring the trade and assets of Michael Broughton Limited’s (MBL) plant hire and sales business. Initially, the company acquired the entire issued share capital of MBL for £89,950,515. Immediately thereafter a dividend of £24,321,001 was declared by MBL transferring the trade and assets of the plant hire and sales business to the company. This dividend was made out of pre-acquisition profits and is therefore a return on the investment in MBL, and consequently the dividend receipt has been recognised as a direct credit against the cost of investment.

 

The net result of the above transactions was for the company to acquire the fair value of the trade and assets of MBL’s plant hire and sales business. As the substance of the aforementioned connected transactions was the acquisition of a business from a third party, the transaction has been accounted for using the purchase method.

 

Immediately following the hive up of the plant hire trade the company disposed of its 100% holding in Michael Broughton Limited on 2 March 2023 for no gain or loss. No results of the entity are recorded within these financial statements.

19
Operating lease commitments
Lessee

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
400,525
-
0
Between two and five years
1,049,971
-
0
In over five years
275,500
-
0
1,725,996
-
0
20
Related party transactions

During the year, rent of £272,411 (2022: £NIL) was paid to other related parties.

21
Ultimate controlling party

The company's immediate parent is PP Greiftechnik GmbH, a company incorporated in Germany.

 

The ultimate parent company is Carl Bennet AB, a company incorporated in Sweden.

 

The most senior parent entity producing publicly available financial statements is Carl Bennet AB. These financial statements are available upon request from Box 7171 SE-402, 33 Goteborg, Sweden.

 

The ultimate controlling party is Carl Bennet.

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