Company Registration No. 01804696 (England and Wales)
Pigott Shaft Drilling Limited
Annual Report and Financial Statements
For the Year Ended
31 March 2024
PAGES FOR FILING WITH REGISTRAR
PIGOTT SHAFT DRILLING LIMITED
Pigott Shaft Drilling Limited
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
PIGOTT SHAFT DRILLING LIMITED
Pigott Shaft Drilling Limited
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
7,025,495
7,039,565
Current assets
Stocks
25,951
25,444
Debtors
5
551,347
658,234
Cash at bank and in hand
2,592,349
2,781,540
3,169,647
3,465,218
Creditors: amounts falling due within one year
6
(1,709,128)
(2,047,758)
Net current assets
1,460,519
1,417,460
Total assets less current liabilities
8,486,014
8,457,025
Creditors: amounts falling due after more than one year
7
(341,167)
Provisions for liabilities
(1,421,184)
(1,409,387)
Net assets
7,064,830
6,706,471
Capital and reserves
Called up share capital
10
156,733
156,733
Revaluation reserve
1,412,325
1,410,713
Profit and loss reserves
5,495,772
5,139,025
Total equity
7,064,830
6,706,471
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 25 July 2024 and are signed on its behalf by:
Mr C P Pigott
Director
Company Registration No. 01804696
PIGOTT SHAFT DRILLING LIMITED
Pigott Shaft Drilling Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information
Pigott Shaft Drilling Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hollowforth Hall, Hollowforth Lane, Woodplumpton, Preston, Lancashire, United Kingdom, PR4 0BD.
The company's principal activity during the year was that of providing equipment on rental to separate solids from liquids.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of certain assets. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents the invoiced amount of goods sold and services provided less returns and allowances, excluding value added tax. Sales are recognised at the point at which the company has fulfilled its contractual obligations to the customer.
1.3
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.
If an asset’s carrying amount is increased as a result of a revaluation, the increase shall be recognised in other comprehensive income and accumulated in equity. However, the increase shall be recognised in profit and loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss. The decrease of an asset’s carrying amount as a result of revaluation shall be recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity, in respect of that asset. If a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
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:
Land and buildings Leasehold
Over length of lease
Plant and machinery
5% reducing balance
Fixtures, fittings & equipment
15% reducing balance
Motor vehicles
25% reducing balance
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.
The part of the annual depreciation charge on revalued assets which relates to the revaluation surplus is transferred from the revaluation reserve to the profit and loss account.
PIGOTT SHAFT DRILLING LIMITED
Pigott Shaft Drilling Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
1.4
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.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
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.
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.
PIGOTT SHAFT DRILLING LIMITED
Pigott Shaft Drilling Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
PIGOTT SHAFT DRILLING LIMITED
Pigott Shaft Drilling Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Fair Value of Plant and Machinery
The Directors have used their professional skill and expertise to value the plant and machinery at the open market value for existing use.
Depreciation and residual values
The Directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values remain appropriate. Detail of the useful lives is included in the accounting policies.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Accruals, deferred income and accrued income
The Directors have estimated certain accruals, deferred income and accrued income at the year end based on information available.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
18
19
PIGOTT SHAFT DRILLING LIMITED
Pigott Shaft Drilling Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
4
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2023
1,203,713
8,911,263
226,771
10,000
10,351,747
Additions
259,042
259,042
Revaluation
65,364
65,364
At 31 March 2024
1,203,713
9,235,669
226,771
10,000
10,676,153
Depreciation and impairment
At 1 April 2023
256,262
2,863,695
183,038
9,187
3,312,182
Depreciation charged in the year
267,919
6,550
203
274,672
Impairment losses
289,276
289,276
Revaluation
(225,472)
(225,472)
At 31 March 2024
256,262
3,195,418
189,588
9,390
3,650,658
Carrying amount
At 31 March 2024
947,451
6,040,251
37,183
610
7,025,495
At 31 March 2023
947,451
6,047,568
43,733
813
7,039,565
The directors have valued the plant and machinery at the open market value for existing use. If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2024
2023
£
£
Cost
11,347,597
11,088,554
Accumulated depreciation
(7,190,438)
(6,921,933)
Carrying value
4,157,159
4,166,621
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
475,985
610,254
Other debtors
75,362
47,980
551,347
658,234
PIGOTT SHAFT DRILLING LIMITED
Pigott Shaft Drilling Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
31,000
Trade creditors
94,257
148,316
Taxation and social security
436,151
495,243
Other creditors
1,178,720
1,373,199
1,709,128
2,047,758
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
341,167
8
Loans and overdrafts
2024
2023
£
£
Bank loans
372,167
Other loans
37,500
409,667
Payable within one year
68,500
Payable after one year
341,167
The bank loan was secured by a fixed charge over the property of the company known as E2 Red Scar. The bank loan has been fully repaid in the year.
The other loan was from a director and was fully repaid in the year.
PIGOTT SHAFT DRILLING LIMITED
Pigott Shaft Drilling Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
978,086
966,832
Tax losses
(27,345)
(27,345)
Revaluations
470,773
470,234
Retirement benefit obligations
(330)
(334)
1,421,184
1,409,387
2024
Movements in the year:
£
Liability at 1 April 2023
1,409,387
Charge to profit or loss
11,258
Charge to other comprehensive income
539
Liability at 31 March 2024
1,421,184
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
28,000
28,000
28,000
28,000
Ordinary B shares of £1 each
98,736
98,736
98,736
98,736
Ordinary C shares of £1 each
29,997
29,997
29,997
29,997
156,733
156,733
156,733
156,733
All shares rank pari passu except in respect of dividends where amounts paid can be differentiated between the different classes of shares.
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Julie Flintoff BA(Hons) FCA
Statutory Auditor:
Azets Audit Services
PIGOTT SHAFT DRILLING LIMITED
Pigott Shaft Drilling Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
12
Financial commitments, guarantees and contingent liabilities
Handelsbanken hold an unlimited multilateral guarantee between Pigott Shaft Drilling Limited and Pigott Limited. At the year end the total amount owed was £Nil (2023: £372,167). This charge was satisfied on 20 March 2024.
13
Related party transactions
During the year dividends were paid to Pigott Limited totalling £600,000 (2023: £600,000).
During the period the directors provided an unsecured interest free loan to the company which was repayable on demand totalling £958,015 (2023: £1,028,477).
Details regarding a related party loan can be found within the 'loans and overdrafts' note.
14
Parent company
The ultimate parent company is Pigott Limited, a company registered in England and Wales, which is exempt from the requirement to prepare group accounts.
The ultimate controlling party is Miss C P Pigott, director and majority shareholder of Pigott Limited.
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