Company Registration No. SC090531 (Scotland)
JARVIE PLANT GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
JARVIE PLANT GROUP LIMITED
COMPANY INFORMATION
Directors
S G Granton
G Jarvie
J A D Jarvie
J Jarvie
V N Jarvie Toub (non-executive)
D A Stewart
Secretary
S G Granton
Company number
SC090531
Registered office
Dalgrain Industrial Estate
Dalgrain Road
Grangemouth
United Kingdom
FK3 8ET
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
Bankers
The Royal Bank of Scotland Plc
6-8 George Street
Edinburgh
United Kingdom
EH2 2PF
Solicitors
Gillespie MacAndrew
5 Atholl Crescent
Edinburgh
EH3 8EJ
JARVIE PLANT GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
JARVIE PLANT GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Business review

2023 has been a challenging year for the business with results reflecting an overall fall in the level of construction in the UK, inflationary pressures on materials, energy, wages and capital equipment, together with a 43% increase in borrowing costs.

 

Turnover of £30,289,000 (2022: £29,300,000) has increased 3% principally as a result of continued growth in the group’s vehicle rentals business, whilst other products have been broadly flat on 2022.

 

Gross Profit margin of 31% has fallen from 36% in 2022 reflecting higher wage and material costs driven by headcount growth and inflation. The business has been on a cycle of investment growth in people, fleet and infrastructure post-Covid at a time when all of the associated costs have increased sharply. Total capital additions in 2023 were £20,992,000 (2022: £20,938,000) including £2,159,000 in January 2023 for a multi-purpose facility at Newbridge near Edinburgh.

 

In response the business has been rationalising its investment in each of the areas noted, including tactical disposals of fleet assets which meet a certain age or utilisation profile. The gain on sale of fleet assets in 2023 of £4,125,000 was 38% higher than the equivalent period in 2022.

 

Interest costs, primarily arising from the group’s asset financing, of £1,864,000 compared to £1,299,000 in 2022 on broadly the same level of debt, a direct impact of the increase in base rate across lenders.

 

The above factors resulted in a profit before tax of £2,142,000 (2022: £3,760,000). Retained profit for the year was £1,492,000 (2022: £2,913,000) and the directors approved a dividend of £920,000 (2022: £nil).

 

The group’s balance sheet remains strong at December 2023 with net assets of £24,936,000 (2022: £24,364,000) and a modest net cash inflow £248,000 (2022: outflow £3,412,000) as the business looked to closely manage liquidity.

 

The directors believe the group is well placed going into 2024 and are taking steps to ensure it is able to perform well in a difficult trading environment.

Principal risks and uncertainties

The directors consider that in the current economic climate, the principal risk is that of customer insolvency and bad debt. This is managed through a combination of tight credit control and the active pursuit of defaulters through all debt-recovery or legal channels.

 

As noted above, the business was heavily affected by the Covid-19 pandemic in 2020. Whilst the immediate economic impact of Covid-19 appears to have passed, the medium to long-term impact on the asset-hire and related industries remains uncertain.

JARVIE PLANT GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Financial risk management policies

The group's operations expose it to a variety of financial risks. The directors note that the plant and vehicle hire industries remain competitive and that inflationary cost pressures require to be kept under close review.

 

Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the Board. The policies set by the directors are implemented by the group's finance department.

 

Price risk- given the size of the group's operations, the cost of managing exposure to commodity price risk exceed the potential benefits. The directors will revisit the appropriateness of this policy should the group's operations significantly change in size.

 

Credit risk/cash flow risk- trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. Banking facilities are also structured to meet ongoing working capital and investment requirements of the group

 

Liquidity risk- trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts when due.

 

Financial instrument risk- the group has established risk and financial management framework of which the primary objectives are to protect the group from events which hinder the achievement of the group's performance objectives.

Environment

The group recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

Health & safety

The group is committed to achieving the highest practicable standards in health and safety management and strives to make all sites and office safe environments for employees and customers alike.

On behalf of the board

J Jarvie
Director
24 July 2024
JARVIE PLANT GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of plant, accommodation and vehicle hire.

Results and dividends

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

Ordinary dividends were paid amounting to £920,000 (2022: £nil). The directors do not recommend payment of a further dividend.

Directors

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

S G Granton
G Jarvie
J A D Jarvie
J Jarvie
V N Jarvie Toub (non-executive)
D A Stewart
Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.

JARVIE PLANT GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Information included within the strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial instrument risk management policies.

On behalf of the board
J Jarvie
Director
24 July 2024
JARVIE PLANT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JARVIE PLANT GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Jarvie Plant Group Limited (‘the parent company’) and its subsidiaries (‘the group’) for the year ended 31 December 2023, which comprise the Group Statement of Comprehensive Income, Group Balance Sheet, Company Balance Sheet, Group Statement of Changes in Equity, Company Statement of Changes in Equity, Group 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 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 or 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 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.

JARVIE PLANT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JARVIE PLANT GROUP LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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 their 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 group’s and 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

JARVIE PLANT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JARVIE PLANT GROUP LIMITED
- 7 -
Extent to which the audit is considered capable of detecting irregularities, including fraud

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.

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent company and the sector in which they operate, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

We gained an understanding of how the group and the parent company are complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns, external inspections, relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the group’s and parent company’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

JARVIE PLANT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JARVIE PLANT GROUP LIMITED
- 8 -

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Ryan Crilley (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
24 July 2024
Chartered Accountants
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
JARVIE PLANT GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£000
£000
Turnover
3
30,289
29,300
Cost of sales
(20,948)
(18,850)
Gross profit
9,341
10,450
Administrative expenses
(9,629)
(8,461)
Profit on sale of tangible fixed assets
4,125
2,997
Other operating income
128
53
Operating profit
4
3,965
5,039
Interest receivable and similar income
8
41
20
Interest payable and similar expenses
9
(1,864)
(1,299)
Profit before taxation
2,142
3,760
Tax on profit
10
(650)
(847)
Profit for the financial year
25
1,492
2,913
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

There were no items of other comprehensive income in the current or prior year.

JARVIE PLANT GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
13
59,995
54,513
Investments
14
34
34
60,029
54,547
Current assets
Stocks
16
513
569
Debtors
17
7,224
8,038
Cash at bank and in hand
434
186
8,171
8,793
Creditors: amounts falling due within one year
18
(17,577)
(18,713)
Net current liabilities
(9,406)
(9,920)
Total assets less current liabilities
50,623
44,627
Creditors: amounts falling due after more than one year
19
(22,483)
(17,591)
Provisions for liabilities
Deferred tax liability
22
3,204
2,672
(3,204)
(2,672)
Net assets
24,936
24,364
Capital and reserves
Called up share capital
24
90
90
Share premium account
25
744
744
Capital redemption reserve
25
10
10
Profit and loss reserves
25
24,092
23,520
Total equity
24,936
24,364
The financial statements were approved by the board of directors and authorised for issue on 24 July 2024 and are signed on its behalf by:
24 July 2024
D A Stewart
Director
JARVIE PLANT GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
13
7,075
5,104
Investments
14
6,864
6,864
13,939
11,968
Current assets
Debtors
17
1,993
4,406
Creditors: amounts falling due within one year
18
(2,948)
(3,172)
Net current (liabilities)/assets
(955)
1,234
Total assets less current liabilities
12,984
13,202
Creditors: amounts falling due after more than one year
19
(3,383)
(2,279)
Provisions for liabilities
Deferred tax liability
22
62
63
(62)
(63)
Net assets
9,539
10,860
Capital and reserves
Called up share capital
24
90
90
Share premium account
25
744
744
Capital redemption reserve
25
10
10
Profit and loss reserves
25
8,695
10,016
Total equity
9,539
10,860

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £401,000 (2022 - £1,898,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 24 July 2024 and are signed on its behalf by:
24 July 2024
D A Stewart
Director
Company Registration No. SC090531
JARVIE PLANT GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
£000
Balance at 1 January 2022
90
744
10
20,607
21,451
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
2,913
2,913
Balance at 31 December 2022
90
744
10
23,520
24,364
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
1,492
1,492
Dividends
11
-
-
-
(920)
(920)
Balance at 31 December 2023
90
744
10
24,092
24,936
JARVIE PLANT GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
£000
Balance at 1 January 2022
90
744
10
8,118
8,962
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
1,898
1,898
Balance at 31 December 2022
90
744
10
10,016
10,860
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
-
(401)
(401)
Dividends
11
-
-
-
(920)
(920)
Balance at 31 December 2023
90
744
10
8,695
9,539
JARVIE PLANT GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
as restated
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash generated from operations
31
14,427
9,718
Income taxes paid
(312)
(761)
Net cash inflow from operating activities
14,115
8,957
Investing activities
Purchase of tangible fixed assets
(1,560)
(3,623)
Proceeds on disposal of tangible fixed assets
7,471
6,388
Interest paid on hire purchase contracts
(1,567)
(1,107)
Interest received
41
-
Net cash generated from investing activities
4,385
1,658
Financing activities
Receipt of bank loans
1,715
-
Repayment of bank loans
(545)
(786)
Repayment of hire purchase
(18,607)
(11,139)
Movement on directors loan account
(518)
(1,910)
Interest paid on bank loans and overdrafts
(297)
(192)
Net cash used in financing activities
(18,252)
(14,027)
Net increase/(decrease) in cash and cash equivalents
248
(3,412)
Cash and cash equivalents at beginning of year
186
3,598
Cash and cash equivalents at end of year
434
186
JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Jarvie Plant Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office and principal place of business is Dalgrain Industrial Estate, Dalgrain Road, Grangemouth, United Kingdom, FK3 8ET.

 

The group consists of Jarvie Plant Group Limited and all of its subsidiaries.

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 £000.

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

The company is a qualifying entity for the purposes of FRS 102 and has taken advantage of the exemption available from the requirement to present a company only cash flow statement and related notes and disclosures.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Jarvie Plant Group Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

In assessing the ability of the company and group to continue as a going concern, the directors have considered current and forecast results, as well as current and potential future sources of funding. The directors have reviewed forecasted cashflows for 12 months from the date of signing the financial misstatements. The directors have a reasonable expectation that the company and group have adequate resources to continue in operational existence for the foreseeable future.

 

While the Group’s balance sheet shows net current liabilities of £9,406,000 at 31 December 2023 (2022: £9,920,000), the directors are satisfied that operating cash flows during this period will allow for settlement of their obligations as they fall due.

 

Based on the above factors, the directors are satisfied that it remains appropriate for the company and group to prepare its financial statements on a going concern basis.

 

JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Turnover

Revenue is recognised to the extent that it is probable that economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding trade discounts, settlement discounts, volume rebates, value added tax and other sales taxes. The following criteria must be met before revenue is recognised:

 

Rendering of services:

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

 

1.5
Tangible fixed assets

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

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

Heritable property
1% - 5% straight line
Plant and machinery
10% - 12.5% straight line
Fixtures and fittings
25% straight line
Office equipment
25% 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 recognised in the statement of comprehensive income.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the group 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.

JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

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 the statement of comprehensive income.

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 the statement of comprehensive income.

1.8
Stocks

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

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 the statement of comprehensive income. Reversals of impairment losses are also recognised in the statement of comprehensive income.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 certain 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.

JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets 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 the statement of comprehensive income.

 

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 the statement of comprehensive income.

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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including certain creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
Taxation

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

JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income 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 group’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 statement of comprehensive income, 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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

1.15
Leases

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 the statement of comprehensive income 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 leased asset are consumed.

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

JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.16
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.

1.17

Prior period reclassification

In the prior year the Group included the purchase of tangible fixed assets within investing activities on the cash flow statement. On further consideration of how the purchase of tangible assets are financed it was deemed more appropriate to split the actual cashflow between investing and financing activities. The 2022 cash flow statement has been restated to reflect this. There is no impact on previously reported profit or equity as a result of the reclassification,

2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

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

Useful economic life of tangible fixed assets

The group depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by the directors.

 

The carrying value of tangible fixed assets at the reporting date is outlined at note 13.

3
Turnover and other revenue
2023
2022
£000
£000
Turnover analysed by class of business
Plant, vehicle and accomodation hire with related services
30,289
29,300
JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£000
£000
Other significant revenue
Interest income
41
20
Grants received
-
35
Sundry income
4
3
Net rents receivable
124
15
4
Operating profit
2023
2022
£000
£000
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(35)
Depreciation of owned tangible fixed assets
5,098
4,944
Depreciation of tangible fixed assets held under finance leases
6,904
5,664
Impairment of owned tangible fixed assets
162
-
Profit on disposal of tangible fixed assets
(4,125)
(2,997)
Operating lease charges
623
197
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the group and company
11
10
Audit of the financial statements of the company's subsidiaries
36
31
47
41
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Operational
97
82
-
-
Sales and administration
88
94
-
-
Total
185
176
-
0
-
0
JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Wages and salaries
6,914
6,423
-
0
-
0
Social security costs
696
644
-
-
Pension costs
229
244
-
0
-
0
7,839
7,311
-
0
-
0
7
Directors' remuneration
2023
2022
£000
£000
Remuneration for qualifying services
760
802
Company pension contributions to defined contribution schemes
43
50
803
852

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£000
£000
Remuneration for qualifying services
269
279
Company pension contributions to defined contribution schemes
22
31
8
Interest receivable and similar income
2023
2022
£000
£000
Interest income
Directors' loan interest receivable
41
20
9
Interest payable and similar expenses
2023
2022
£000
£000
Interest on bank overdrafts, loans and invoice finance facilities
297
192
Interest on finance leases and hire purchase contracts
1,567
1,107
Total finance costs
1,864
1,299
JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
10
Taxation
2023
2022
£000
£000
Current tax
UK corporation tax on profits for the current period
182
382
Adjustments in respect of prior periods
(64)
46
Total current tax
118
428
Deferred tax
Origination and reversal of timing differences
410
313
Changes in tax rates
-
0
100
Adjustment in respect of prior periods
122
6
Total deferred tax
532
419
Total tax charge
650
847

The actual charge 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
£000
£000
Profit before taxation
2,142
3,760
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
504
714
Tax effect of expenses that are not deductible in determining taxable profit
22
20
Adjustments in respect of prior years
(64)
46
Effect of change in corporation tax rate
-
100
Other permanent differences
1
-
0
Deferred tax adjustments in respect of prior years
122
6
Fixed asset differences
43
15
Chargeable gains / (losses)
25
(23)
Other differences
(27)
(31)
Remeasurement of deferred tax
24
-
0
Taxation charge
650
847
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£000
£000
Final paid
920
-
JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£000
£000
In respect of:
Property, plant and equipment
13
162
-
Recognised in:
Administrative expenses
162
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

13
Tangible fixed assets
Group
Heritable property
Plant and machinery
Fixtures and fittings
Office equipment
Motor vehicles
Total
£000
£000
£000
£000
£000
£000
Cost
At 1 January 2023
6,240
68,331
387
186
25,631
100,775
Additions
2,159
11,396
243
34
7,160
20,992
Disposals
-
0
(9,115)
-
0
-
0
(2,902)
(12,017)
At 31 December 2023
8,399
70,612
630
220
29,889
109,750
Depreciation and impairment
At 1 January 2023
1,150
33,349
276
172
11,315
46,262
Depreciation charged in the year
21
6,794
63
14
5,110
12,002
Impairment losses
162
-
0
-
0
-
0
-
0
162
Eliminated in respect of disposals
-
0
(6,161)
-
0
-
0
(2,510)
(8,671)
At 31 December 2023
1,333
33,982
339
186
13,915
49,755
Carrying amount
At 31 December 2023
7,066
36,630
291
34
15,974
59,995
At 31 December 2022
5,090
34,982
111
14
14,316
54,513
JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 25 -
Company
Heritable property
Plant and machinery
Total
£000
£000
£000
Cost
At 1 January 2023
6,240
17
6,257
Additions
2,159
(5)
2,154
At 31 December 2023
8,399
12
8,411
Depreciation and impairment
At 1 January 2023
1,150
3
1,153
Depreciation charged in the year
21
-
0
21
Impairment losses
162
-
0
162
At 31 December 2023
1,333
3
1,336
Carrying amount
At 31 December 2023
7,066
9
7,075
At 31 December 2022
5,090
14
5,104

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Plant and machinery
26,502
24,658
-
0
-
0
Motor vehicles
11,721
10,552
-
0
-
0
38,223
35,210
-
-

More information on impairment movements in the year is given in note 12.

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Investments in subsidiaries
15
-
0
-
0
6,864
6,864
Unlisted investments
34
34
-
0
-
0
34
34
6,864
6,864
JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Group
Investments
£000
Cost or valuation
At 1 January 2023 and 31 December 2023
34
Carrying amount
At 31 December 2023
34
At 31 December 2022
34
Movements in fixed asset investments
Company
Shares in subsidiaries
£000
Cost or valuation
At 1 January 2023 and 31 December 2023
6,864
Carrying amount
At 31 December 2023
6,864
At 31 December 2022
6,864
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Jarvie Plant Limited
1
Plant and accomodation hire
Ordinary
100.00
J.P. Rentals Limited
1
Vehicle hire
Ordinary
100.00
Jarvie Properties Limited
1
Property investment
Ordinary
100.00
JP Power Rentals Limited
1
Dormant
Ordinary
100.00
Jarvie Plant Hire Limited
2
Dormant
Ordinary
100.00
Custom Operators Ltd
1
Plant operators
Ordinary
100.00
JP Accommodation Limited
1
Dormant
Ordinary
100.00

Registered office:

 

1) Dalgrain Industrial Estate, Dalgrain Road, Grangemouth, FK3 8ET

2) Suite 1, 3rd Floor, 11-12 St James's Square, London, SW1Y 4LB

 

Jarvie Properties Limited (SC396401) and Custom Operators Ltd (SC444458) are taking advantage of section 479a of the Companies Act 2006, exemption from audit, related to subsidiary companies.

JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
16
Stocks
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Raw materials and consumables
513
569
-
-
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£000
£000
£000
£000
Trade debtors
5,822
6,202
15
5
Corporation tax recoverable
172
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
1,705
3,700
Other debtors
353
1,018
273
701
Prepayments and accrued income
877
818
-
0
-
0
7,224
8,038
1,993
4,406
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Bank loans and overdrafts
20
557
491
2,711
3,038
Obligations under finance leases
21
11,554
14,517
-
0
-
0
Trade creditors
2,594
912
33
-
0
Amounts owed to group undertakings
-
0
-
0
32
32
Corporation tax payable
135
157
-
0
72
Other taxation and social security
1,033
839
1
-
Other creditors
881
1,008
-
0
-
0
Accruals and deferred income
823
789
171
30
17,577
18,713
2,948
3,172

Group other creditors includes £796,000 (2022 - £943,000) in relation to an invoice finance facility which is secured by floating charge over all of the property or undertaking of the group.

19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Bank loans and overdrafts
20
3,383
2,279
3,383
2,279
Obligations under finance leases
21
19,100
15,312
-
0
-
0
22,483
17,591
3,383
2,279
JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Bank loans
3,940
2,770
3,940
2,770
Bank overdrafts
-
0
-
0
2,154
2,547
3,940
2,770
6,094
5,317
Payable within one year
557
491
2,711
3,038
Payable after one year
3,383
2,279
3,383
2,279

Group and parent company bank overdrafts have been netted against cash at bank and in hand where there is a right to offset.

 

The group and company bank loans and overdrafts are secured by way of standard securities over the group's heritable property, a bond and floating charge over the assets of the company and an unlimited intercompany guarantee between Jarvie Plant Group Limited, Jarvie Plant Limited and J.P. Rentals Limited, held by the Royal Bank of Scotland plc. Jarvie Plant Limited and J.P. Rentals Limited are subsidiary undertakings of Jarvie Plant Group Limited.

 

Included in the above group and company bank loan balance is a loan of £671,000 (2022: £1,098,000) obtained as part of the Coronavirus Business Interruption Loan Scheme ('CBILS').

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Future minimum lease payments due under finance leases:
Within one year
11,272
14,517
-
0
-
0
In two to five years
19,382
15,312
-
0
-
0
30,654
29,829
-
-

Finance lease payments represent rentals payable by the group for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three to five years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Obligations under finance lease are secured over the assets concerned.

JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
22
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£000
£000
Accelerated capital allowances
3,265
2,741
Short term timing differences
(61)
(69)
3,204
2,672
Liabilities
Liabilities
2023
2022
Company
£000
£000
Accelerated capital allowances
62
63
Group
Company
2023
2023
Movements in the year:
£000
£000
Liability at 1 January 2023
2,672
63
Charge/(credit) to profit or loss
532
(1)
Liability at 31 December 2023
3,204
62
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
229
244

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of £1 each
90,000
90,000
90
90
JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Share capital
(Continued)
- 30 -

The company has one class of Ordinary shares which carry voting rights but no right to fixed income.

25
Reserves
Profit and loss reserves

This reserve includes all current and prior periods retained profits net of dividends paid.

 

Share premium account

This reserve records the amount above the nominal value received for shares issued, less transaction costs.

 

Capital redemption reserve

This reserve is as a result of the repurchase of the company's own shares.

26
Pension commitments

The group operates a defined contribution pension scheme for two (2022: two) directors. The assets of the Jarvie Plant Pension Scheme are held separately from those of the company in an independently administered fund. All other employee pension contributions are made to a separate defined contribution scheme. Total contributions in 2023 were £228,000 (2022 - £244,000). Contributions totalling £69,000 (2022: £50,000) were payable at the reporting date and are included in other creditors.

27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Within one year
316
16
158
15
Between two and five years
1,106
16
514
14
In over five years
9
-
-
-
1,431
32
672
29
JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
28
Related party transactions

Company

As at 31 December 2023, Jarvie Plant Pension Fund owed £14,000 (2022 - £68,000) to Jarvie Plant Group Limited. This amount, included in debtors, accrues interest at 2.5% and is repayable within one year. The Jarvie Plant Pension Fund is a related party as the beneficiaries of the fund are the directors of the company.

 

Group

Rent of £21,000 (2022: £18,000) and £288,000 (2022: £163,00) was charged by the Jarvie Plant Pension Fund to J.P. Rentals Limited and Jarvie Plant Limited respectively for rental of business premises. As at 31 December 2023, Jarvie Plant Pension Fund owed £975 (2022: £45,000) to Jarvie Plant Limited, included in other debtors. In April 2022, Jarvie Properties Limited advanced a loan of £500,000 to Carnethy Developments Limited, a company owned in part by the shareholders of the group. The loan is repayable on demand and attracts an interest rate of 2.5% per annum. The balance of the loan at 31 December 2023 was £629,000 (2022: 509,000).

 

Other information

The group has taken advantage of disclosure exemptions available under Section 33 of FRS 102 whereby it has not disclosed transactions entered into with any wholly-owned subsidiary of the group.

29
Directors' transactions

The following amounts were advanced to/(repaid by) directors in the current year. Directors' loan balances are repayable on demand and incur interest charged at 2.5%. Amounts owed from directors at the reporting date are included within other debtors at note 17.

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£000
£000
£000
£000
G Jarvie
2.50
-
250
(399)
(149)
J A D Jarvie
2.50
352
4
(14)
342
J Jarvie
2.50
214
284
(527)
(29)
566
538
(940)
164
30
Controlling party

In the opinion of the directors, J Jarvie is the ultimate controlling party by virtue of his majority shareholding in Jarvie Plant Group Limited.

JARVIE PLANT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
31
Cash generated from group operations
2023
2022
£000
£000
Profit for the year after tax
1,492
2,913
Adjustments for:
Taxation charged
650
847
Finance costs
1,864
1,299
Investment income
(41)
(20)
Gain on disposal of tangible fixed assets
(4,125)
(2,997)
Depreciation and impairment of tangible fixed assets
12,164
10,608
Movements in working capital:
Decrease/(increase) in stocks
56
(541)
Decrease/(increase) in debtors
584
(429)
Increase/(decrease) in creditors
1,783
(1,962)
Cash generated from operations
14,427
9,718
32
Analysis of changes in net debt - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£000
£000
£000
£000
Cash at bank and in hand
186
248
-
434
Borrowings excluding overdrafts
(2,770)
(1,170)
-
(3,940)
Obligations under finance leases
(29,829)
18,607
(19,432)
(30,654)
(32,413)
17,685
(19,432)
(34,160)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100G JarvieJ A D JarvieJ JarvieV N Jarvie Toub (non-executive)D A StewartD A StewartS G 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