Company registration number 08230772 (England and Wales)
GREENPOWER PLANT HIRE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GREENPOWER PLANT HIRE LTD
COMPANY INFORMATION
Directors
Mr D Green
Mrs N Green
Company number
08230772
Registered office
Coppice Farm
Coppice Lane
Middleton
Tamworth
England
B78 2BU
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
GREENPOWER PLANT HIRE LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
GREENPOWER PLANT HIRE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

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

Review of the business

The company has shown high success during the year following on from the turbulent COVID years. This is highlighted by a 12.6% increase in sales achieved of a little under £11.7m. Although gross profit has fallen by almost 4% due to higher than inflationary carriage costs, the overall net profit achieved has eclipsed £1.6m compared to the 2022 year of £958K.

 

With this in mind, the company has shown confidence for the market following on from the difficult COVID years by making substantial investments within our operating fleet. It is believed that this will in turn lead to greater profits.

 

The company's net assets have increased to £5.7m from £4.9m at 30th September 2022 due to significant reinvestment of the post tax profits generated during the financial year.

Principal risks and uncertainties

The director acknowledges the principle risk of the company's operation is the increase in interest rates and housing downturn. Nevertheless, the company has had a good trading year due to targeting new areas to gain business as well as investing in modern fleet.

Development and performance

Whilst the business environment remains extremely challenging, the director considers the company is in a healthy position and is confident in its continued success. As mentioned above, the company has ensured consistent investment in its operational assets, ensuring they are of the highest specifications and standards.

Key performance indicators

The company utilises the following KPIs when determining strength of performance:

 

Revenue growth month on month

 

Operating profit margin

 

Operating cashflow generated.

On behalf of the board

Mr D Green
Director
1 March 2024
GREENPOWER PLANT HIRE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of renting and leasing of plant and machinery.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £60,000. The directors do not recommend payment of a final dividend.

Directors

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

Mr D Green
Mrs N Green
Statement of directors' responsibilities

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.

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.

GREENPOWER PLANT HIRE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
On behalf of the board
Mr D Green
Director
1 March 2024
GREENPOWER PLANT HIRE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GREENPOWER PLANT HIRE LTD
- 4 -
Opinion

We have audited the financial statements of Greenpower Plant Hire Ltd (the 'company') for the year ended 30 September 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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:

GREENPOWER PLANT HIRE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GREENPOWER PLANT HIRE LTD
- 5 -
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.

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.

 

From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

 

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

 

 

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.

GREENPOWER PLANT HIRE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GREENPOWER PLANT HIRE LTD
- 6 -

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.

David Baldwin FCCA
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
1 March 2024
Chartered Certified Accountants
Statutory Auditor
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
GREENPOWER PLANT HIRE LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 7 -
2023
2022
as restated
Notes
£
£
Turnover
3
11,679,058
10,372,494
Cost of sales
(3,555,458)
(2,551,864)
Gross profit
8,123,600
7,820,630
Administrative expenses
(5,764,012)
(6,316,117)
Other operating income
3,200
3,500
Operating profit
4
2,362,788
1,508,013
Interest receivable and similar income
7
45
255
Interest payable and similar expenses
8
(760,241)
(550,088)
Profit before taxation
1,602,592
958,180
Tax on profit
9
(716,017)
109,562
Profit for the financial year
886,575
1,067,742

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GREENPOWER PLANT HIRE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
as restated
£
£
Profit for the year
886,575
1,067,742
Other comprehensive income
-
-
Total comprehensive income for the year
886,575
1,067,742
GREENPOWER PLANT HIRE LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 9 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
20,529,936
15,622,934
Current assets
Debtors
12
2,705,209
2,911,903
Cash at bank and in hand
1,107,503
863,159
3,812,712
3,775,062
Creditors: amounts falling due within one year
13
(5,896,143)
(5,826,355)
Net current liabilities
(2,083,431)
(2,051,293)
Total assets less current liabilities
18,446,505
13,571,641
Creditors: amounts falling due after more than one year
14
(11,268,453)
(7,936,181)
Provisions for liabilities
Deferred tax liability
17
1,415,552
699,535
(1,415,552)
(699,535)
Net assets
5,762,500
4,935,925
Capital and reserves
Called up share capital
19
100
100
Revaluation reserve
855,891
924,362
Profit and loss reserves
4,906,509
4,011,463
Total equity
5,762,500
4,935,925

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 1 March 2024 and are signed on its behalf by:
Mr D  Green
Director
Company registration number 08230772 (England and Wales)
GREENPOWER PLANT HIRE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 30 September 2022:
Balance at 1 October 2021
100
-
0
2,786,895
2,786,995
Year ended 30 September 2022:
Profit and total comprehensive income
-
-
1,067,742
1,067,742
Dividends
10
-
-
(60,000)
(60,000)
Transfers
-
-
0
216,826
216,826
Other movements
-
924,362
-
924,362
Balance at 30 September 2022
100
924,362
4,011,463
4,935,925
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
886,575
886,575
Dividends
10
-
-
(60,000)
(60,000)
Transfers
-
(68,471)
68,471
-
Balance at 30 September 2023
100
855,891
4,906,509
5,762,500
GREENPOWER PLANT HIRE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
4,453,859
3,922,688
Interest paid
(760,241)
(550,088)
Income taxes refunded
-
0
433,492
Net cash inflow from operating activities
3,693,618
3,806,092
Investing activities
Purchase of tangible fixed assets
(8,481,082)
(6,626,017)
Proceeds from disposal of tangible fixed assets
1,645,998
857,498
Interest received
45
255
Net cash used in investing activities
(6,835,039)
(5,768,264)
Financing activities
Repayment of bank loans
(31,169)
(13,276)
Payment of finance leases obligations
3,476,934
2,139,586
Dividends paid
(60,000)
(60,000)
Net cash generated from financing activities
3,385,765
2,066,310
Net increase in cash and cash equivalents
244,344
104,138
Cash and cash equivalents at beginning of year
863,159
759,021
Cash and cash equivalents at end of year
1,107,503
863,159
GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
1
Accounting policies
Company information

Greenpower Plant Hire Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Coppice Farm, Coppice Lane, Middleton, Tamworth, England, B78 2BU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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

1.4
Tangible fixed assets

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

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

Plant and equipment
5% - 20% straight line
Fixtures and fittings
20% straight line
Motor vehicles
20% - 25% straight line

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

1.5
Impairment of fixed assets

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

GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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.

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.

1.6
Cash and cash equivalents

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

1.7
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.8
Equity instruments

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

1.9
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 profit and loss account, 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.

1.10
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.

1.11
Retirement benefits

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

GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales
11,679,058
10,372,494
2023
2022
£
£
Other revenue
Interest income
45
255
Grants received
3,000
3,500
GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(3,000)
(3,500)
Fees payable to the company's auditor for the audit of the company's financial statements
-
0
-
0
Depreciation of owned tangible fixed assets
2,051,977
2,947,756
Profit on disposal of tangible fixed assets
(123,895)
(321,406)
Operating lease charges
304,333
216,978
5
Employees

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

2023
2022
Number
Number
49
42

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
629,611
1,098,888
Social security costs
170,883
131,878
Pension costs
17,585
9,921
818,079
1,240,687
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
12,500
11,458
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
45
255
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
45
255
GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 18 -
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
760,241
550,088
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(433,492)
Deferred tax
Origination and reversal of timing differences
716,017
323,930
Total tax charge/(credit)
716,017
(109,562)

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

2023
2022
£
£
Profit before taxation
1,602,592
958,180
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
400,648
182,054
Tax effect of expenses that are not deductible in determining taxable profit
531,319
569,537
Gains not taxable
(22,247)
(61,067)
Unutilised tax losses carried forward
-
0
1,115,489
Permanent capital allowances in excess of depreciation
(759,871)
(1,806,013)
Research and development tax credit
-
0
(433,492)
Utilisation of tax losses
(152,376)
-
0
Deferred tax
716,017
323,930
Leased cars
2,527
-
0
Taxation charge/(credit) for the year
716,017
(109,562)
10
Dividends
2023
2022
£
£
Interim paid
60,000
60,000
GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 19 -
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2022
23,290,101
10,658
439,262
23,740,021
Additions
8,214,554
1,845
264,683
8,481,082
Disposals
(1,901,043)
-
0
(19,500)
(1,920,543)
At 30 September 2023
29,603,612
12,503
684,445
30,300,560
Depreciation and impairment
At 1 October 2022
7,993,595
10,658
112,834
8,117,087
Depreciation charged in the year
1,974,866
116
76,995
2,051,977
Eliminated in respect of disposals
(396,356)
-
0
(2,084)
(398,440)
At 30 September 2023
9,572,105
10,774
187,745
9,770,624
Carrying amount
At 30 September 2023
20,031,507
1,729
496,700
20,529,936
At 30 September 2022
15,296,506
-
0
326,428
15,622,934
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,673,215
2,832,764
Amounts owed by group undertakings
3,644
69,139
Other debtors
10,000
10,000
Prepayments and accrued income
18,350
-
0
2,705,209
2,911,903
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
15
33,333
-
0
Obligations under finance leases
16
4,607,913
4,527,753
Trade creditors
911,791
787,599
Taxation and social security
139,387
214,708
Other creditors
160,269
293,220
Accruals and deferred income
43,450
3,075
5,896,143
5,826,355
GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
22,222
86,724
Obligations under finance leases
16
11,246,231
7,849,457
11,268,453
7,936,181
15
Loans and overdrafts
2023
2022
£
£
Bank loans
55,555
86,724
Payable within one year
33,333
-
0
Payable after one year
22,222
86,724
16
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
4,607,913
4,527,753
In two to five years
11,246,231
7,849,457
15,854,144
12,377,210

The obligation under finance leases are secured by a fixed and floating charge over plant and equipment hire.

17
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,415,552
699,535
GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
17
Deferred taxation
(Continued)
- 21 -
2023
Movements in the year:
£
Liability at 1 October 2022
699,535
Charge to profit or loss
716,017
Liability at 30 September 2023
1,415,552
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
17,585
9,921

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.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
20
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
81,413
88,376
Between two and five years
52,928
124,445
134,341
212,821
GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

2023
2022
Amounts due to related parties
£
£
Shark Attachments Limited
3,644
3,644
GP Site Solutions Limited
-
65,495
22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
886,575
1,067,742
Adjustments for:
Taxation charged/(credited)
716,017
(109,562)
Finance costs
760,241
550,088
Investment income
(45)
(255)
Gain on disposal of tangible fixed assets
(123,895)
(321,406)
Depreciation and impairment of tangible fixed assets
2,051,977
2,947,756
Movements in working capital:
Decrease/(increase) in debtors
206,694
(453,309)
(Decrease)/increase in creditors
(43,705)
241,634
Cash generated from operations
4,453,859
3,922,688
23
Analysis of changes in net debt
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
863,159
244,344
1,107,503
Borrowings excluding overdrafts
(86,724)
31,169
(55,555)
Obligations under finance leases
(12,377,210)
(3,476,934)
(15,854,144)
(11,600,775)
(3,201,421)
(14,802,196)
24
Prior period adjustment
GREENPOWER PLANT HIRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
24
Prior period adjustment
(Continued)
- 23 -
Reconciliation of changes in equity
1 October
30 September
2021
2022
£
£
Adjustments to prior year
Deferred tax adjustment
-
(301,884)
Equity as previously reported
2,786,995
5,237,809
Equity as adjusted
2,786,995
4,935,925
Analysis of the effect upon equity
Profit and loss reserves
-
(301,884)
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Deferred tax adjustment
(301,884)
Profit as previously reported
1,369,626
Profit as adjusted
1,067,742
Notes to reconciliation
Prior period adjustment

The deferred tax provision shown on the comparative figures has been restated from the disclosed value within the 30th September 2022 accounts. As such, the movement shown in the profit and loss has also been restated, with its impact to profit and equity reserves shown above.

 

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