REGISTERED NUMBER: 00502816 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
FOR |
ATO HOLDINGS LIMITED |
REGISTERED NUMBER: 00502816 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
FOR |
ATO HOLDINGS LIMITED |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 SEPTEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 20 |
ATO HOLDINGS LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 SEPTEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
260 - 270 Butterfield |
Great Marlings |
Luton |
Bedfordshire |
LU2 8DL |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 SEPTEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 30 September 2023. |
REVIEW OF BUSINESS |
The principal activities of the group in the year under review were sales of and service and parts for agricultural machinery, professional ground care machinery, commercial vehicles and hire of vehicles to the event industry. The company undertakes farming, the provision of management services and administration of its freehold and leasehold properties. |
Agricultural machinery sales, service and parts supply are carried out from six depots in Luton, Kings Langley, Tingewick, Reading, Petworth and Winchester. Ground care machinery sales, service and parts, commercial vehicle sales and event hire are carried out at the Kings Langley depot using its strategic position just north of London to maximise on alternative markets outside of the core agricultural business. Commercial vehicle sales, service and parts are also carried out at the Tingewick depot. |
The Oliver name has been synonymous with the supply of services to the agricultural sector for two centuries with Olivers celebrating it's 200-year anniversary in 2023. Today's business still uses this heritage, alongside a strong management team, successful sales professionals, and highly trained service engineers to offer the best customer experience. Up to date website, information technology systems and communications allow the company to react to all customer requirements. The event hire business, trading as Oliver Buggy Hire, is recognised as one of the most professional operators in the market, serving sporting, country and music events nationally. |
All key suppliers to the group are market leaders in their sectors which allows the subsidiaries to offer the best quality and most desirable products at the most competitive price. Many suppliers have a long history with the group and therefore all staff are very experienced in their products. The suppliers include global brands Claas, JCB, Toro, Horsch, Club Car & Isuzu. |
Overall, the trading conditions for the group were again improved during the year and net sales increased for Oliver Agriculture Limited by 19.3% and by 97% in Oliver Landpower Limited from the previous year. |
For Oliver Agriculture Limited, this is due in part to the receipt of carryover late delivery combines from the previous financial year. There was also a general improvement in demand from our customer base as agriculture continues to adapt to the new regenerative farming practices and drive towards zero carbon. The expanded trading area, has created a more diverse mix of farming customers allowing an increase in sales of grassland and forage equipment together with increased aftersales opportunity. The marketplace for agricultural machinery continues to be very competitive, but we have been able to replicate our historical success in the expanded trading area, forging new customer relationships. |
For Oliver Landpower Limited, the significant increase in net sales has been directly due to the addition of the Stratford-upon-Avon and Colchester sites alongside continued increased demand and the effect of price increases in the established area. All areas of the business have shown growth despite continued challenges with supply chain in 2022 and early 2023, strategic forward ordering of stock has ensured product is available even when lead times have been extended, latterly in 2023 the supply chain has eased, and lead times are in most cases returning to pre-2020-time scales. |
ATO Holdings Limited has also had a positive year with a significant increase in profit. Income from management and administration increased, in large part due to the increase in interest rates meaning greater return on monies supporting the subsidiary companies. Property rental remained profitable and was slightly up on last year whilst profit on farming activities returned to the same level as pre the crop fire although the overall figures show a loss due to legal expenses that were incurred. This financial year also saw a first dividend taken from Oliver Agriculture Ltd by the Holdings company. |
The overall results disclose a profit for the year before taxation of £2,300.551 which was comparable with a profit of £1,729,103 in the previous year. |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 SEPTEMBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Management continually monitors the key risks facing the group together with assessing the controls used for managing these risks. The board of directors reviews and documents the principal risks facing the business at least annually. |
The directors identify the principal risks and uncertainties facing the group as :- |
Competitor pressure and level of demand |
- | the market in which the group operates is considered to be relatively competitive and therefore such pressure could result in the loss of sales to competitors. The directors manage this risk by providing quality products from leading market brands and maintaining strong relationships with its customers many of whom have utilised the group's products and services over family generations. |
PRINCIPAL RISKS AND UNCERTAINTIES - continued |
Reliance on key suppliers | - | the group's activities could expose it to over reliance on certain suppliers. The directors manage this risk by ensuring the sale of market leading brands which include a range of suppliers who provide complimentary products to one another. The directors are constantly seeking to find potential alternative suppliers to add products to our portfolio. |
Loss of key personnel | - | this would pose potential operational difficulties for the group. The directors manage this risk by seeking to ensure that key personnel are managed to ensure good performance is recognised and fully rewarded, along with ensuring good succession planning supported by appropriate training. This offers career progression for staff which assists to retain employees with potential to become management of the future. |
Bad weather affecting customer confidence |
- | the weather can affect the ability of the group to sell agricultural machinery. The directors manage this risk by ensuring that seasonal stock levels are managed appropriately and by having an increased focus on growing the aftersales aspect of the business. |
Interest rates | - | the directors identifies that the increased costs of funding to its own running costs and those of its customers. The directors manage this risk by managing stock levels and adjusting to working with the higher cost base. The company works closer with suppliers and preferred finance companies to provide affordable solutions for its customers. |
Post BREXIT effects | - | Fluctuation in currency, and possible increase in costs from inflation and from both tariffs and increased administration burden including phytosanitary compliance. With the phase out of the EU direct farm support and the transition to the UK Government ELMS (Environmental Land Management Scheme, there is the potential for a reduction in combinable acreage which could affect sales volume in the longer term. Although investment in the innovative products that we supply can help customers towards reducing their carbon impact and ELMS compliance. |
Global unrest | - | Disruption of supply chains due to conflict in the Ukraine and the effect of increased energy costs on our operating costs and to the products we sell. |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 SEPTEMBER 2023 |
SECTION 172(1) STATEMENT |
The board of directors have always acted in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole, having regard to the stakeholders and matters set out in s172(1) (a) - (f) of the Companies Act 2006, in the decisions taken during the year ended 30 September 2023. |
Our plan is designed to have a long-term beneficial impact on the group and to contribute to its success in delivering a high quality of service. |
Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our team members is one of our primary considerations in the way we conduct our business. |
Engagement with suppliers and customers is also key to our success. We meet with our key franchises partners regularly through the year to maintain strong and positive relationships with them. |
Our plan considers the impact of the group's operations on the community and environment, and in particular we work hard to pursue waste-saving opportunities and ensure we deal with waste in the most appropriate manner. |
The group prides itself on maintaining its strong reputation throughout the industries that it operates within. The directors support the management teams of each business to promote our products and services and to exceed customers' expectations. |
As the board of directors, our intention is to behave in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours and in doing so, will construct to the delivery of our plan. |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 SEPTEMBER 2023 |
FUTURE OUTLOOK |
Across the trading elements of the Group, we look forward to 2023-24 with continued optimism. |
In Oliver Agriculture Limited the future outlook continues to be buoyant with a strong start to the 2024 business year. Despite the recent wet weather, our customers have remained confident with better levels of autumn drilled crops than the national average resulting in successful early out of season order campaign. We have taken delivery of all the prior year carry over orders as supplier despatches continued to improve. Our Budget is forecasting at least a similar outcome to the 2022-23 trading year. We must be cognisant to the market volatility and maintain strong stock and credit control, whilst being mindful of the rise of interest rates and stocking charges and their impact on gross margin. |
Oliver Landpower Limited has had a strong start to the next financial year with sales up 94% over the same period last year, with a strong order book for the rest of the year and a greatly improved gross profit. This growth has come from continued demand for the company's core products and the acquisition of the Stratford-upon-Avon based LQG Agri Limited business in October 2022, and the opening of the Colchester depot in January 2023 which is now fully operational. The products the company sell are still in demand, component shortages following the COVID-19 Pandemic have improved and consequently stock lead times have returned to pre-pandemic levels, control of stock levels particularly with increased cost of funds is essential to be able to provide competitive machinery purchasing solutions for our customers. |
ATO Holdings Limited looks to continue to maintain its existing revenue streams in farming, property rental and management and administration. Dividend payments from Oliver Agriculture Limited will continue whilst Oliver Landpower Limited will have the opportunity to consolidate following on from it's expansion in this financial year. |
Long term the group's strategy is to continue to grow all aspects of the business whilst controlling costs, increasing margin, continuing to implement efficiencies, and to maintain a tight control on debtors. The group will ensure that it will employ sufficient numbers of staff to achieve this. To this end we continue to engage with our apprenticeship programme and invest in specialist manufacturer training for existing staff. |
Continued focus will be made on information technology enhancements in all areas of the business to increase efficiencies and in turn growth. In 2024 we will continue to review our marketing activities and continue to embrace web based social media activities to communicate our message to existing and potential customers, whilst complying with General Data Protection Regulation (GDPR). |
ON BEHALF OF THE BOARD: |
11 April 2024 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 SEPTEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 September 2023. |
DIVIDENDS |
Particulars of dividends paid by ATO Holdings Limited during the year and any proposed are detailed in note 10 to the accounts. |
In order to comply with current accounting disclosure requirements the dividends paid on the preferred ordinary shares of £74,670 are included in interest payable and similar expenses in the consolidated income statement. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2022 to the date of this report. |
FINANCIAL INSTRUMENTS |
Treasury operations and financial instruments |
The group operates a centralised treasury function which is responsible for managing the liquidity and interest risks associated with the group's activities. |
The group's principal financial instruments include bank overdrafts and hire purchase loans, the main purpose of which are to provide working capital for the group's operations. In addition, the group has various other financial assets and liabilities such as trade receivable and trade payables arising directly from its operations, together with cash deposits held in the parent company. |
Liquidity Risk |
The group manages its cash and borrowing requirements centrally to maximise interest income and minimise interest expense, whilst ensuring that the group has sufficient liquid resources to meet the operating needs of its business. |
Interest Rate Risk |
Through the close management of cash resources and bank overdrafts, the group is able to maintain positive net cash funds and therefore not be exposed to external bank interest rates. Hire purchase and stocking finance agreements are monitored to achieve efficient financing costs. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The group aims to have positive and strong business relationships with key stakeholders, such as customers and suppliers, to ensure long term sustainable value. Within the group, the director and management teams of each business deal directly with the engagement of the customers and suppliers in relation to that business. These key personnel know their businesses the best and therefore are best placed to foster strong relationships with these key stakeholders. The directors of ATO Holdings Limited support the group by having positive and strong business relationships with the group’s key-stakeholders and support the individual businesses where required. |
STREAMLINED ENERGY AND CARBON REPORTING |
The group has excluded any subsidiaries which are not obliged to report individually according to the thresholds from the energy usage calculation. The resulting energy usage deems the parent company to be a low energy user and therefore no disclosure is required. |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 SEPTEMBER 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ATO HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of ATO Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30 September 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 |
ATO HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 seven, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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: |
Owing to the inherent limitations of an audit, there is unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). The more removed the laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment, forgery, collusion, omission or misrepresentation. |
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | enquiry of management and those charged with governance around actual and potential litigation and claims; |
- | enquiry of entity staff and the board of directors to identify any instances of non-compliance with laws and regulations; |
- | reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- | adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; and |
- | auditing the risk of management override of controls, including through testing journal entries and other means. |
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 |
ATO HOLDINGS LIMITED |
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. |
for and on behalf of |
Statutory Auditor |
260 - 270 Butterfield |
Great Marlings |
Luton |
Bedfordshire |
LU2 8DL |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
CONSOLIDATED |
INCOME STATEMENT |
for the Year Ended 30 SEPTEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 | 88,531,245 | 58,582,744 |
Cost of sales | 81,476,052 | 53,348,188 |
GROSS PROFIT | 7,055,193 | 5,234,556 |
Distribution costs | 1,723,077 | 1,276,435 |
Administrative expenses | 2,902,219 | 2,108,245 |
4,625,296 | 3,384,680 |
OPERATING PROFIT | 6 | 2,429,897 | 1,849,876 |
Interest receivable and similar income | 26,306 | 4,353 |
Other finance income | 25 | 4,000 | - |
30,306 | 4,353 |
2,460,203 | 1,854,229 |
Interest payable and similar expenses | 8 | 159,652 | 125,126 |
PROFIT BEFORE TAXATION | 2,300,551 | 1,729,103 |
Tax on profit | 9 | 535,050 | 458,879 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,647,911 | 1,094,938 |
Non-controlling interests | 117,590 | 175,286 |
1,765,501 | 1,270,224 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 30 SEPTEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,765,501 | 1,270,224 |
OTHER COMPREHENSIVE INCOME/(LOSS) |
Actuarial gain/(loss) on pension scheme | 22,000 | (6,000 | ) |
Income tax relating to other comprehensive income/(loss) |
(2,440 |
) |
11,400 |
OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR, NET OF INCOME TAX |
19,560 |
5,400 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,785,061 |
1,275,624 |
Total comprehensive income attributable to: |
Owners of the parent | 2,476,259 | 1,100,338 |
Non-controlling interests | (691,198 | ) | 175,286 |
1,785,061 | 1,275,624 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
CONSOLIDATED BALANCE SHEET |
30 SEPTEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 41,979 | - |
Tangible assets | 13 | 3,798,612 | 3,601,445 |
Investments | 14 | - | - |
3,840,591 | 3,601,445 |
CURRENT ASSETS |
Stocks | 15 | 20,668,424 | 13,647,224 |
Debtors | 16 | 7,882,700 | 9,766,572 |
Cash at bank and in hand | 953,548 | 2,060,934 |
29,504,672 | 25,474,730 |
CREDITORS |
Amounts falling due within one year | 17 | 19,853,229 | 17,058,415 |
NET CURRENT ASSETS | 9,651,443 | 8,416,315 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
13,492,034 |
12,017,760 |
CREDITORS |
Amounts falling due after more than one year |
18 |
(2,082,389 |
) |
(1,623,242 |
) |
PROVISIONS FOR LIABILITIES | 22 | (608,531 | ) | (559,867 | ) |
PENSION ASSET | 25 | 63,750 | 80,190 |
NET ASSETS | 10,864,864 | 9,914,841 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 175,000 | 175,000 |
Capital redemption reserve | 24 | 364,700 | 364,700 |
Other reserves | 24 | 2,670 | 2,670 |
Retained earnings | 24 | 10,097,734 | 8,456,513 |
SHAREHOLDERS' FUNDS | 10,640,104 | 8,998,883 |
NON-CONTROLLING INTERESTS | 224,760 | 915,958 |
TOTAL EQUITY | 10,864,864 | 9,914,841 |
The financial statements were approved by the Board of Directors and authorised for issue on 11 April 2024 and were signed on its behalf by: |
Ms A C Barnes - Director |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
COMPANY BALANCE SHEET |
30 SEPTEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Stocks | 15 |
Debtors | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
PENSION ASSET | 25 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Capital redemption reserve | 24 |
Other reserves | 24 |
Retained earnings | 24 |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year | 356,404 | (834 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 SEPTEMBER 2023 |
Called up | Capital |
share | Retained | redemption |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 October 2021 | 175,000 | 7,382,425 | 364,700 |
Changes in equity |
Profit for the year | - | 1,094,938 | - |
Other comprehensive income | - | 5,400 | - |
Total comprehensive income | - | 1,100,338 | - |
Dividends | - | (26,250 | ) | - |
Balance at 30 September 2022 | 175,000 | 8,456,513 | 364,700 |
Changes in equity |
Profit for the year | - | 1,647,911 | - |
Other comprehensive income | - | 19,560 | - |
Total comprehensive income | - | 1,667,471 | - |
Dividends | - | (26,250 | ) | - |
Balance at 30 September 2023 | 175,000 | 10,097,734 | 364,700 |
Other | Non-controlling | Total |
reserves | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 October 2021 | 2,670 | 7,924,795 | 740,672 | 8,665,467 |
Changes in equity |
Profit for the year | - | 1,094,938 | 175,286 | 1,270,224 |
Other comprehensive income | - | 5,400 | - | 5,400 |
Total comprehensive income | - | 1,100,338 | 175,286 | 1,275,624 |
Dividends | - | (26,250 | ) | - | (26,250 | ) |
Balance at 30 September 2022 | 2,670 | 8,998,883 | 915,958 | 9,914,841 |
Changes in equity |
Profit for the year | - | 1,647,911 | 117,590 | 1,765,501 |
Other comprehensive income | - | 19,560 | (808,788 | ) | (789,228 | ) |
Total comprehensive income | - | 1,667,471 | (691,198 | ) | 976,273 |
Dividends | - | (26,250 | ) | - | (26,250 | ) |
Balance at 30 September 2023 | 2,670 | 10,640,104 | 224,760 | 10,864,864 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 SEPTEMBER 2023 |
Called up | Capital |
share | Retained | redemption | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 October 2021 |
Changes in equity |
Deficit for the year | - | (834 | ) | - | - | (834 | ) |
Other comprehensive income | - | 5,400 | 5,400 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 30 September 2022 |
Changes in equity |
Profit for the year | - | 356,404 | - | - | 356,404 |
Other comprehensive income | - | 19,560 | 19,560 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 30 September 2023 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 SEPTEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 254,056 | 1,436,341 |
Interest paid | (31,185 | ) | (16,588 | ) |
Interest element of hire purchase payments paid |
(53,797 |
) |
(33,868 |
) |
Tax paid | (327,158 | ) | (207,932 | ) |
Net cash from operating activities | (158,084 | ) | 1,177,953 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (490,604 | ) | (485,120 | ) |
Purchase of fixed asset investments | (282,533 | ) | - |
Sale of tangible fixed assets | 50,655 | 74,498 |
Interest received | 26,306 | 4,353 |
Net cash from investing activities | (696,176 | ) | (406,269 | ) |
Cash flows from financing activities |
Loan repayments in year | (25,109 | ) | (29,933 | ) |
Capital repayments in year | (498,291 | ) | (685,795 | ) |
Equity dividends paid | (26,250 | ) | (26,250 | ) |
Dividends paid on non-equity shares | (74,670 | ) | (74,670 | ) |
Net cash from financing activities | (624,320 | ) | (816,648 | ) |
Decrease in cash and cash equivalents | (1,478,580 | ) | (44,964 | ) |
Cash and cash equivalents at beginning of year |
2 |
2,036,882 |
2,081,846 |
Cash and cash equivalents at end of year | 2 | 558,302 | 2,036,882 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 SEPTEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 2,300,551 | 1,729,103 |
Depreciation charges | 760,157 | 641,358 |
Profit on disposal of fixed assets | (25,797 | ) | (68,100 | ) |
Non-cash pension movement | 40,000 | 54,000 |
Finance costs | 159,652 | 125,126 |
Finance income | (30,306 | ) | (4,353 | ) |
3,204,257 | 2,477,134 |
Increase in stocks | (6,543,011 | ) | (4,285,982 | ) |
Decrease/(increase) in trade and other debtors | 1,883,873 | (3,826,941 | ) |
Increase in trade and other creditors | 1,708,937 | 7,072,130 |
Cash generated from operations | 254,056 | 1,436,341 |
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 September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 953,548 | 2,060,934 |
Bank overdrafts | (395,246 | ) | (24,052 | ) |
558,302 | 2,036,882 |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 2,060,934 | 2,432,964 |
Bank overdrafts | (24,052 | ) | (351,118 | ) |
2,036,882 | 2,081,846 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 SEPTEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
Other |
non-cash |
At 1.10.22 | Cash flow | changes | At 30.9.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 2,060,934 | (1,107,386 | ) | 953,548 |
Bank overdrafts | (24,052 | ) | (371,194 | ) | (395,246 | ) |
2,036,882 | (1,478,580 | ) | 558,302 |
Debt |
Finance leases | (1,273,222 | ) | 498,291 | (955,775 | ) | (1,730,706 | ) |
Debts falling due |
within 1 year | (30,104 | ) | 25,109 | (25,109 | ) | (30,104 | ) |
Debts falling due |
after 1 year | (459,856 | ) | - | 25,109 | (434,747 | ) |
(1,763,182 | ) | 523,400 | (955,775 | ) | (2,195,557 | ) |
Total | 273,700 | (955,180 | ) | (955,775 | ) | (1,637,255 | ) |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 SEPTEMBER 2023 |
1. | STATUTORY INFORMATION |
ATO Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
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 except for the modifications to a fair value basis for the defined benefit pension scheme as specified in the accounting policies. |
Basis of consolidation |
The consolidated accounts incorporate the accounts of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group accounts by virtue of section 408 of the Companies Act 2006. |
Significant judgements and estimates |
The preparation of financial statements requires management to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
In the course of preparing the financial statements, management has made a judgement in respect of determining the net realisable value of stock held by the company at the balance sheet date. Factors that have been considered when calculating the value include (but are not restricted to) the selling environment, stock condition and amount of time stock items are held by the company. |
Due to the nature of the industry items of stock held by the group at the balance sheet date may be held for a significant amount of time and so increase the level of judgement required by management to value that stock. |
Turnover |
Turnover is measured at the fair value of consideration received (or receivable), net of discounts and value added taxes. Turnover includes revenue earned from the sales of agricultural and groundcare equipment, ongoing services and maintenance of agricultural and groundcare equipment, hire of machinery, farming and rents. |
Turnover arising from the sale of agricultural and groundcare machinery is recognised in full upon delivery to the customer, when it is considered significant rights and obligations of ownership have been transferred. |
Turnover arising from farming activities is recognised in the year of harvest at fair value, less costs to sell, at the year end. |
Turnover is respect of rents and hire is recognised on an accruals basis. |
In respect of contracts for on-going services and maintenance of agricultural and groundcare equipment, turnover represents the value of work done in the year by reference to the stage of completion, including estimates of amounts not invoiced. |
Goodwill |
Goodwill, being the amount paid in connection with an increase in the ownership of a subsidiary in 2023, is being amortised evenly over its estimated useful life of two year. |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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. |
Land and buildings | - | 2% on cost of buildings and over the remaining period of the lease |
Plant and machinery | - | 25% on cost and 10% on reducing balance |
Fixtures and fittings | - | 25% on cost and 10% on reducing balance |
Motor vehicles | - | 20% on cost |
All fixed assets are initially recorded at cost. |
Investments |
Investments in subsidiaries are accounted for at cost less impairment in the individual company financial statements. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
The group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
Financial instruments are recognised in the group's balance sheet when the company becomes party to the contractual provisions of the instrument. |
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 associated liabilities. |
Preferred ordinary shares, which result in fixed returns to the holder, are classified as liabilities. The dividends on these preferred ordinary shares are recognised in the profit and loss account as an interest expense. |
Basic financial assets and liabilities, including trade and other debtors, trade and other creditors, bank overdrafts and preferred ordinary shares that are classified as debt are recognised at amortised cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 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 group operates two defined contribution pension schemes and a defined benefit pension scheme. |
(i) Defined contribution schemes |
The assets of the funded schemes are held separately from those of the group companies in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund. |
(ii) Defined benefit scheme |
The company operates a defined benefit pension scheme in respect of employees of the subsidiary companies and accounts for this in accordance with FRS 102. |
The subsidiary companies contribute to the scheme, which is closed to new members, on the same basis as if their employees were members of the defined contribution scheme. As a consequence any surplus or deficiency of assets arising in the defined benefit scheme, after the defined contributions are received from the subsidiary companies, will be the responsibility of the company. |
Pension scheme liabilities are recognised in the balance sheet at the present value of the defined benefit obligation at the reporting date less the fair value of the plan assets at the reporting date. |
The defined benefit obligations are measured on an actuarial basis using the Projected Unit Credit method. Under this method the present value of the scheme's liabilities are calculated by estimating the future benefit payments from the scheme based on pensionable service up to the valuation date and final pensionable salaries projected to retirement. These are then discounted back to the valuation date at the valuation rate of interest. |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits - continued |
By its nature, a projection of the liabilities involves a degree of estimation. |
The pension scheme assets consist of cash (0%), a Unitised with Profits policy (46.2%) and Annuities (53.8%) which are valued at its fair value. |
The pension scheme surplus recognised in the balance sheet is restricted in accordance with FRS102 regulations. |
The deferred tax relating to a defined benefit asset is offset against the defined benefit asset and not included with other deferred tax assets or liabilities. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Sale of goods | 82,213,169 | 54,906,786 |
Rendering of services | 6,061,864 | 3,333,488 |
Farming | 105,600 | 168,340 |
Rent received | 150,612 | 174,130 |
88,531,245 | 58,582,744 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 85,520,473 | 56,752,003 |
Europe and rest of the world | 3,010,772 | 1,830,741 |
88,531,245 | 58,582,744 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Wages and salaries | 7,061,765 | 5,330,500 | 175,432 | 138,681 |
Social security costs | 694,291 | 569,842 | 18,836 | 15,208 |
Other pension costs | 422,858 | 409,787 | 8,768 | 6.534 |
8,178,914 | 6,310,129 | 203,036 | 160.423 |
The average number of employees during the period was as follows: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
Sales and service | 155 | 128 | - | - |
Administration | 23 | 18 | 5 | 4 |
178 | 146 | 5 | 4 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 143,486 | 149,481 |
Directors' pension contributions to money purchase schemes | 6,914 | 5,890 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 347,926 | 215,683 |
Depreciation - owned assets | 294,198 | 332,589 |
Depreciation - assets on hire purchase contracts | 451,967 | 308,769 |
Profit on disposal of fixed assets | (25,797 | ) | (68,100 | ) |
Goodwill amortisation | 13,993 | - |
7. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
10,140 |
12,700 |
Fees payable to the company's auditors for other services to the group: |
The auditing of accounts of any associate of the company | 40,000 | 40,000 |
Taxation compliance services | 3,260 | 3,260 |
Other non- audit services | 5,200 | 5,200 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Mortgage | 31,185 | 16,588 |
Hire purchase | 53,797 | 33,868 |
Preferred ordinary dividends | 74,670 | 74,670 |
159,652 | 125,126 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 486,386 | 192,408 |
Deferred tax | 48,664 | 266,471 |
Tax on profit | 535,050 | 458,879 |
Reconciliation of total tax 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: |
2023 | 2022 |
£ | £ |
Profit before tax | 2,300,551 | 1,729,103 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
575,138 |
328,530 |
Effects of: |
Expenses not deductible for tax purposes | 19,708 | 30,394 |
Capital allowances in excess of depreciation | - | (34,413 | ) |
Depreciation in excess of capital allowances | 16,766 | - |
Effect of change in tax rate | (76,562 | ) | 134,368 |
Total tax charge | 535,050 | 458,879 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial gain/(loss) on pension scheme | 22,000 | (2,440 | ) | 19,560 |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial gain/(loss) on pension scheme | (6,000 | ) | 11,400 | 5,400 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
9. | TAXATION - continued |
The UK tax rate changed to 25% from 19% on 1 April 2023. This law was substantively enacted on 24 May 2021. |
Deferred taxes at both balance sheet dates have been measured using the enacted rate of 25%. |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Paid during the year: |
Equity dividends on ordinary shares | 26,250 | 26,250 |
Non-equity dividends on preferred ordinary shares | 74,670 | 74,670 |
100,920 | 100,920 |
Proposed after the year end and not recognised as a liability: |
Equity dividends on ordinary shares | 26,250 | 26,250 |
Non-equity dividends on preferred ordinary shares | 74,670 | 74,670 |
100,920 | 100,920 |
The dividends paid on the preferred ordinary shares are included within interest payable and similar charges. |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
Additions | 55,972 |
At 30 September 2023 | 55,972 |
AMORTISATION |
Amortisation for year | 13,993 |
At 30 September 2023 | 13,993 |
NET BOOK VALUE |
At 30 September 2023 | 41,979 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Land and | Plant and | and | Motor |
buildings | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 October 2022 | 1,587,547 | 2,993,354 | 782,196 | 2,089,612 | 7,452,709 |
Additions | 53,088 | 301,709 | 74,511 | 538,882 | 968,190 |
Disposals | - | (60,525 | ) | - | (80,104 | ) | (140,629 | ) |
At 30 September 2023 | 1,640,635 | 3,234,538 | 856,707 | 2,548,390 | 8,280,270 |
DEPRECIATION |
At 1 October 2022 | 230,899 | 1,921,839 | 618,907 | 1,079,619 | 3,851,264 |
Charge for year | 22,832 | 305,849 | 42,015 | 375,469 | 746,165 |
Eliminated on disposal | - | (51,455 | ) | - | (64,316 | ) | (115,771 | ) |
At 30 September 2023 | 253,731 | 2,176,233 | 660,922 | 1,390,772 | 4,481,658 |
NET BOOK VALUE |
At 30 September 2023 | 1,386,904 | 1,058,305 | 195,785 | 1,157,618 | 3,798,612 |
At 30 September 2022 | 1,356,648 | 1,071,515 | 163,289 | 1,009,993 | 3,601,445 |
Included in cost of land and buildings is freehold land of £720,724 (2022 - £720,724) which is not depreciated. |
The net book value of tangible fixed assets includes investment property rented to other group entities with a carrying value of £1,268,671 (2022 - £1,004,252). |
The net book value of tangible fixed assets includes £ 1,268,671 (2022 - £ 1,289,504 ) in respect of assets held under hire purchase contracts. |
Company |
Fixtures |
Land and | and |
buildings | fittings | Totals |
£ | £ | £ |
COST |
At 1 October 2022 |
Additions |
At 30 September 2023 |
DEPRECIATION |
At 1 October 2022 |
Charge for year |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
Included in cost of land and buildings is freehold land of £ 720,724 (2022 - £ 720,724 ) which is not depreciated. |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2022 |
Additions |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
The group or the company's investment at the Balance Sheet date in the share capital of the companies include the follow: |
Subsidiary |
Class of Shares |
Held directly |
Held indirectly |
% | % |
Oliver LP 2010 Limited | Ordinary | 91.67 | - |
Oliver AG 2010 Limited | Ordinary | 100.00 | - |
A T Oliver & Sons Limited | Ordinary | - | 95.83 |
Oliver Landpower Limited | Ordinary | - | 91.67 |
Oliver Agriculture Limited | Ordinary | - | 100.00 |
The registered office address of all subsidiaries is Wandon End Works, Wandon End, Luton, Bedfordshire, LU2 8NY. |
15. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Finished goods | 20,668,424 | 13,647,224 |
An impairment loss of £283,841 was recognised in cost of sales against slow-moving and obsolete stock in the group during the year (2022 - £476,825). |
The net book value of stock includes £7,580,901 (2022 - £5,345,245) in respect of assets held under stocking plan contracts. The net book value of stock includes £468,491 (2022 - £104,061) in respect of assets held under hire purchase contracts. |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 7,178,900 | 5,295,005 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contract | 366,564 | 218,401 |
Prepayments and accrued income | 337,236 | 4,253,166 |
7,882,700 | 9,766,572 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | 425,350 | 54,156 |
Hire purchase contracts (see note 20) | 734,728 | 532,966 |
Trade creditors | 15,282,194 | 10,085,421 |
Amounts owed to group undertakings | - | - |
Corporation tax | 351,636 | 192,408 |
Taxation and social security | 187,341 | 145,598 |
VAT | 1,010,043 | 320,049 | 38 | - |
Liability component of preferred ordinary shares |
74,670 |
74,670 |
Accruals and deferred income | 1,787,267 | 5,653,147 |
19,853,229 | 17,058,415 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 19) | 434,747 | 459,856 |
Hire purchase contracts (see note 20) | 995,978 | 740,256 |
Liability component of preferred ordinary shares |
423,130 |
423,130 |
Other creditors | 228,534 | - | 228,534 | - |
2,082,389 | 1,623,242 |
Other creditors are interest free and payable in April 2025. |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 395,246 | 24,052 |
Bank loans | 30,104 | 30,104 |
425,350 | 54,156 |
Amounts falling due between one and two | years: |
Bank loans | 62,550 | 62,550 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 100,505 | 100,505 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans - over 5 years by instalments | 271,692 | 296,801 | 271,692 | 296,801 |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 734,728 | 532,966 |
Between one and five years | 995,978 | 740,256 |
1,730,706 | 1,273,222 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 321,000 | 154,000 |
Between one and five years | 941,500 | 427,500 |
In more than five years | 950,252 | 212,500 |
2,212,752 | 794,000 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
21. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank overdrafts | 395,246 | 24,052 |
Bank loans | 464,851 | 489,960 |
Hire purchase contracts | 1,730,706 | 1,273,222 | - | - |
Trade creditors | 10,014,298 | 7,631,837 | - | - |
12,605,101 | 9,419,071 |
Bank overdrafts and loans are secured on land and buildings held by the company. Hire purchase liabilities are secured on the assets to which they relate. Trade creditors are secured on stock. |
22. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 608,531 | 559,867 |
Group |
Deferred |
tax |
£ |
Balance at 1 October 2022 | 559,867 |
Provided during year | 48,664 |
Balance at 30 September 2023 | 608,531 |
The deferred tax liability expected to reverse next year is £158,000 relating to the reversal of existing timing differences on capital allowances. |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 150,000 | 150,000 |
Non-voting ordinary | £1 | 25,000 | 25,000 |
175,000 | 175,000 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
23. | CALLED UP SHARE CAPITAL - continued |
2023 | 2022 |
£ | £ |
497,800 | Preferred ordinary | £1 | 497,800 | 497,800 |
Ordinary shares entitles the holder to one vote per share, to receive dividends and to a share of any capital distribution. Ordinary shares can only be owned by directors, if this requirement is not fulfilled then the shares not held by a director should be reclassified to preferred ordinary capital. |
Non-voting ordinary shares have the same rights as ordinary shares, and rank pari passu with them, but without the right to receive notice of, attend and vote at any general meeting. |
Preferred ordinary shares have the right to a fixed cumulative preferential dividend of 10 pence per annum payable (if the profits and reserves of the company justify the payment) half-yearly on the 6th April and October. The dividend shall rank for payment in priority to a dividend payment on other issued shares. Preferred ordinary shares shall be entitled to an increased dividend where a dividend payable on ordinary shares exceeds 10 pence per annum. On winding up, preferred shares shall be entitled to payment of any arrears of the cumulative dividend and share equally with ordinary and non-voting share capital in any capital distribution. |
In order to comply with current accounting disclosure requirements preferred ordinary shares are classified as a liability in the balance sheet. |
24. | RESERVES |
Retained earnings includes all current and prior year periods' retained profits and losses attributable to the group. |
Capital redemption reserve records the nominal value of shares repurchased by the company. |
25. | EMPLOYEE BENEFIT OBLIGATIONS |
ATO Holdings Limited operates a defined benefit pension scheme for the benefit of certain employees of its subsidiary companies. The scheme's funds are administrated by the company as trustee and are independent of the company's finances. Contributions are paid to the scheme in accordance with the recommendations of an independent actuarial adviser. Contributions to the cost of the scheme are received from the subsidiary companies calculated on a fixed basis in line with the defined contribution scheme. Any differential between contributions paid by the company and received from the subsidiary companies will remain the responsibility of the company. |
The company made no contributions to the scheme during the year, as it was agreed with the Actuary that contributions would cease from 31 December 2013 and this agreement has been extended to the next actuarial valuation as a result of the surplus assets in the scheme. As the scheme is closed to new entrants the current service cost as a percentage of pensionable payroll is likely to increase as the membership ages, although it will be applied to a decreasing pensionable payroll. |
An actuarial valuation of the scheme was carried out on 1 October 2021 by an independent qualified actuary in accordance with FRS 102. |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
25. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in the balance sheet are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Present value of funded obligations | (5,680,000 | ) | (5,925,000 | ) |
Fair value of plan assets | 7,625,000 | 8,103,000 |
1,945,000 | 2,178,000 |
Present value of unfunded obligations | - | - |
Unrecognised surplus | (1,860,000 | ) | (2,079,000 | ) |
Surplus | 85,000 | 99,000 |
Deferred tax liability | (21,250 | ) | (18,810 | ) |
Net asset | 63,750 | 80,190 |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Current service cost | 16,000 | 32,000 |
Past service cost | - | - |
Administration fee | 24,000 | 22,000 |
40,000 | 54,000 |
Actual return on plan assets | (128,000 | ) | (1,581,000 | ) |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Opening defined benefit obligation | 5,925,000 | 8,711,000 |
Current service cost | 16,000 | 32,000 |
Contributions by scheme participants | 6,000 | 6,000 |
Interest cost | 300,000 | 163,000 |
Actuarial losses/(gains) | (235,000 | ) | (2,648,000 | ) |
Benefits paid | (332,000 | ) | (339,000 | ) |
5,680,000 | 5,925,000 |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
25. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Opening fair value of scheme assets | 8,103,000 | 10,039,000 |
Contributions by scheme participants | 6,000 | 6,000 |
Administration fee paid from Scheme assets | (24,000 | ) | (22,000 | ) |
Expected return | (540,000 | ) | (1,744,000 | ) |
Interest income | 412,000 | 163,000 |
Benefits paid | (332,000 | ) | (339,000 | ) |
7,625,000 | 8,103,000 |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Actuarial gains/(losses) | 22,000 | (6,000 | ) |
Deferred tax | (2,440 | ) | 11,400 |
19,560 | 5,400 |
The major categories of scheme assets as amounts of total scheme assets are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Unitised With-Profits policy | 3,524,000 | 3,706,000 |
Cash | (1,000 | ) | 30,000 |
Annuities | 4,102,000 | 4,367,000 |
7,625,000 | 8,103,000 |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
2023 | 2022 |
Discount rate | 5.50% | 5.20% |
Rate of increase in salaries | 4.30% | 4.60% |
Rate of increase in deferred pensions | 2.50% | 2.80% |
RPI Inflation | 3.30% | 3.60% |
Pension increase in payment: |
- RPI, maximum 5%, minimum 3% | 3.30% | 3.60% |
- CPI, maximum 2.5% | 2.50% | 2.80% |
ATO HOLDINGS LIMITED (REGISTERED NUMBER: 00502816) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
26. | CONTINGENT LIABILITIES |
A guarantee has been given by ATO Holdings Limited for supplier credit extended to its subsidiaries A T Oliver & Sons Limited, Oliver Landpower Limited and Oliver Agriculture Limited. At 30 September 2023 the amount owed by the subsidiaries to the suppliers amounted to £8,814,068 (2022- £6,274,375). The maximum liability of the company under the guarantee was £15,950,000 (2022 - £12,600,000). |
The company has entered into a Memorandum Accounts Statement System (MASS) agreement with Barclays Bank Plc for bank facility purposes with two subsidiary undertakings, A. T. Oliver & Sons Limited and Oliver Landpower Limited, such that each participant is jointly and severally liable as a principal debtor for all indebtedness owing to the bank on the MASS account. |
27. | RELATED PARTY DISCLOSURES |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |