Registered Number:
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
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CONTENTS
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COMPANY INFORMATION
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STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
The Directors present their Strategic Report and the financial statements for the year ended 30 November 2023.
The principal activity of the Company during the year continued to be the supply, maintenance and hire of agricultural and grounds care machinery.
The agricultural market remains cautious and after recent years of growth, there has been some slow down in customer reinvestment. With demand and supply levels now being normalised, like many machinery dealers, this has resulted in increased inventory holdings. This has resulted in margin pressure and higher interest charges. Due to the mix of markets that the company operates in, we have continued to grow and trade profitability. The Directors are pleased to report that turnover increased by 11.5% from £107.1m to £119.4m in the year due to growth in all 3 core divisions of the business. Gross margin for the Company decreased from 15.7% to 13.3% in the year and the net margin decreased from 2.9% to 1.2% in the year. At year end the Company continued to be in a strong financial position with net assets of £17.5m as at 30 November 2023 compared to £16.4m as at 30 November 2022. Working practices are continually adapted in order to ensure ongoing risks are managed effectively. Growth Strategy The Company has a strong growth strategy that is consistently reviewed by the senior leadership team. The key areas of focus are: • Market share growth • Customer Experience • Employee Engagement • Technological advancement John Deere, our major supplier has a strong product portfolio and continues to have the largest market share in the UK and Globally. Through John Deere’s product development, and our experienced people, we work closely with our customers to deliver innovative precision technologies that provide substantial value to our customer base.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
The Company is subject to financial risk, and these are managed as follows:
Price risk The Company is exposed to price risk with regard to the increase in purchase costs of wholegoods and parts. Inflationary price rises in fuel, utilities, interest charges and general cost increases are also a risk. The Directors and senior managers monitor this closely and the Company actively purchases stock prior to any known price rises. Budgets are monitored and contracts are regularly renegotiated for maintaining cost control.
Credit risk
The Company provides credit to customers but all customers are reviewed and credit limits set prior to credit being provided. Most wholegoods are financed through a third party finance company. Liquidity and cash flow risks Management accounts are prepared and reviewed on a monthly basis, whilst cash flow is monitored on a weekly basis ensure that the Company has adequate liquid resources to meet the ongoing operating needs of the business. The Company has an overdraft facility of £4,000,000 for day to day trading and uses Hire Purchase contracts and long term loans to finance capital expenditure. There are no indications that any terms of finance used by the Company will be withdrawn or be insufficient for the Company's trading purposes.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
The Company use KPIs to measure monthly and cumulative performance against budget and previous periods. Management reviews the Company's performance by 3 key divisions of Sales (wholegoods), Parts and Service. These are then split by individual depot with comparisons across all geographies. These KPI’s include turnover, gross margin and net profit.
Overall turnover has increased by 11.5% reflecting the increase in demand for high value wholegoods and the ongoing maintenance of existing machinery within the Company's geography. Gross margins have decreased from 15.7% to 13.3% which could have been worse given the current economic environment and is reflective of continued cost control.
The key non financial performance indicator is the retention of the contracts with the key suppliers, most importantly John Deere. The Company continues to have very good relationships with alI of its key suppliers and continually reviews the product spread to ensure we have agreements with the right suppliers in order to service its customers' needs.
John Deere and other core brands set product targets and business indicators on an annual basis. These include number of wholegood units sold, market share, parts stock turn and customer satisfaction scores. The Company is pleased to report that through continued support and strong working relationships it has achieved all targets set. Engagement with Employees A further key non financial performance indicator is around the Company’s people. Recruiting and retaining the right people is key to the continued success of the business. The average number of employees within the Company was again up year on year, and the Company now employs just under 300 members of staff across the business, more than any other time in our history. The Company has a number of methods where it engages with and encourages feedback from employees. The Company is committed to acting on feedback received and continually monitor training needs and investment in its staff development. The Company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the Company's policy wherever practical to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
The Directors report here on how they have performed their duty under Section 172 of the Companies Act 2006 and sets out a series of matters to which the Directors must have regard in performing their duty to promote the success of the Company for the benefit of its shareholders, which includes having regard to the other stakeholders.
The Board of Directors consider that it is crucial that the Company maintains a reputation for the highest standards of business conduct and is responsible for setting, reviewing and upholding the culture, values standards, ethics and reputation of the Company to ensure its obligations to key stakeholders are met. By using the core values of the family business, the Directors seek to maintain and develop strong, stable and profitable partnerships with all its customers, employees and suppliers by providing outstanding innovative services and products. During the year, the Directors consider that they have at all times acted in a way, and have made decisions that would most likely promote the success of the Company and for the benefit of its members as a whole, and in making those decisions have had particular regard to; The likely consequences of any decision in the long term; The interests of the Company’s employees; The need to foster the Company’s business relationships with suppliers, customers and others; The impact of the Company’s operations on the community and environment; The desirability of the Company maintaining a reputation for high standards of business; and The need to act fairly between members of the Company. The Board’s engagement with who it regards as its key stakeholder is summarised as follows; Our people: The success of the business includes attracting, retaining and motivating employees. The Company undertakes an annual engagement survey with its employees and ensures feedback is acted upon. Communication is key, and the Company has a range of mechanisms including one to one meetings, department and outlet meetings as well as Company wide virtual events. The Company seeks to work hand in hand with its people, to listen to their feedback and to ensure the Company is an inspiring place to work. Our customers: The Company continuously assesses the priorities related to customers to enhance and maintain customer relationships for the long term. Delivering an excellent customer experience is essential to the Company's success. The Company regularly engages with all of its customers across a range of touchpoints including formal feedback and demonstration days. Our suppliers: The Company has high levels of regular engagement with all of its suppliers, but particularly its key brand partners like John Deere with whom it has constant dialogue to ensure the Company is representing their brands to the best of its ability and meeting all requirements and standards. The Company is included in numerous dealer development initiatives and training events. Our shareholders: All of the Company's shareholders work in the business and so are closely engaged with the Group’s day to day operations. Our community and environment: The Company engages with its local community in a wide variety of ways such as offering a significant number of work experience places to local youngsters and involvement with a number of local charities. It has a range of initiatives and policies to minimise the Company's impact on the environment, including those aimed at reducing energy consumption, travel, and the use of resources.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
This report was approved by the Board on 23 August 2024 and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
The Directors present their report and the financial statements for the year ended 30 November 2023.
The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,414,318 (2022 - £3,159,973).
Interim dividends amounting to £368,985 (2022 - £389,200) were paid during the year. The Directors do not recommend the payment of a final dividend (2022 - £nil).
The Directors who served during the year and to the date of this report were:
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P. TUCKWELL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
Under the Company's revised Articles of Association approved by Special Resolution on the 22 September 2022, the Directors are also entitled to be indemnified out of the assets of the Company against all losses as a result of discharging their duties.
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P. TUCKWELL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
The Company is committed to managing its environmental impact and is fully aware that by considering the environment in its decision making, it can have a beneficial impact on the Company’s performance. The Company's key environmental impacts are from the transportation of goods, operating its road vehicles for business travel and the Company's sites. For the purpose of this Report the Company is disclosing its Scope 1 & 2 emissions in accordance with Environmental Reporting Guidelines as issued by the Department of Environment, Food & Rural Affairs (“DEFRA”) and the Department for Business, Energy & Industrial Strategy (“BEIS”):
2023 2022 Total Energy Consumption in kwh 6,443,805 5,576,076 Total Energy Consumption in tCO2e 1,517 1,318 The energy consumption breakdown (in kwh) is analysed as follows: Gas oil 271,292 531,877 Transport fuel 5,500,567 4,444,015 Electricity 671,946 600,184 Mandatory greenhouse gas emissions report by scope Unit 2023 2022 Scope 1 Energy consumption owned road vehicles and gas consumption tCO2e 1,379 1,202 Scope 2 Electricity and gas consumption tCO2e 138 116 Total Emissions tCO2e 1,517 1,318 Profit for the financial year £’000 1,456 3,130 Intensity Ratio (emissions/profit for the financial year) 1.04 0.42
Basis of preparation
Greenhouse gas emissions are calculated in alignment with records used for the production of these financial statements. The Company has used emission factors from BEIS’s “Greenhouse gas reporting: conversion factors 2023” to calculate its Scope 1 & 2 emissions. All emissions required under the Companies Act 2006 are included where stated and include Scope 1 (direct emissions from road vehicles owned by the Company) and Scope 2 (indirect emissions from purchased electricity).
Measures taken to improve energy efficiency and the environment
As a business, the Company is now conducting more meetings via online platforms in order to save on travel between depots. It also conducts regular Health and Safety meetings, which include the Chief Operating Officer to ensure depots are working as efficiently as possible. The Company's most recent capital expenditure on its buildings included solar panels and air source heat pumps to reduce emissions. Since the year end, the Company has appointed a Group Compliance Officer whose responsibilities include health and safety, and ensuring working practices are as efficient as possible in order to reduce overall
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P. TUCKWELL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
emissions. The Company has a programme of investment across its locations including new LED lighting, heating and efficient removal of hazardous waste. The vehicle management policy has resulted in a number of older vehicles being replaced with new, hybrid and electric vehicles ensuring we consider energy consumption and emissions. The Company has installed trackers in our technical vehicles to ensure we minimise mileage where possible.
Details of the Company's financial risk management objectives and policies, including its use of financial instruments and the key risks to which it is exposed, and engagement with key stakeholders are included in the Strategic Report.
Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
• so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
On 28 March 2024 our auditor, SB Audit LLP, merged with Sumer Auditco Limited.
Accordingly SB Audit LLP formally resigned as the Company's auditor with the Directors duly appointing Sumer Auditco Limited to fill the vacancy arising. The auditor, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the Board on
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF P. TUCKWELL LIMITED
We have audited the financial statements of P. Tuckwell Limited (the 'Company') for the year ended 30 November 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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P. TUCKWELL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF P. TUCKWELL LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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P. TUCKWELL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF P. TUCKWELL LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience and through discussions and enquiries of the Directors and management. During the engagement team briefing, the outcomes of these discussions were shared with the team, as well as consideration as to where and how fraud may occur in the Company. The following laws and regulations were identified as being of significance to the Company: • Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, UK taxation legislation and UK Company Law; and • Those laws and regulations considered to have an indirect effect on the financial statements including dealer compliance terms, employment law, health and safety legislation and GDPR. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the Company complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, review of Board minutes, testing of journal entries, performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud. There are inherent limitations in the audit procedures described above 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. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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 Auditor's Report.
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P. TUCKWELL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF P. TUCKWELL LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Fitzroy House
Crown Street
Suffolk
IP1 3LG
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
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BALANCE SHEET
AS AT 30 NOVEMBER 2023
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BALANCE SHEET (CONTINUED)
AS AT 30 NOVEMBER 2023
The financial statements were approved and authorised for issue by the Board and were signed on its behalf on
The notes on pages 22 to 45 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
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STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
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ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 NOVEMBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
P. Tuckwell Limited (the "Company") is a private company limited by shares. It is incorporated and domiciled in England and Wales. The address of its registered office is Shop Street, Worlingworth, Woodbridge, Suffolk IP13 7HU. It operates from various branches throughout the East of England.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
Group accounts have not been prepared as the Company's subsidiary is permitted to be excluded from group accounts by virtue of sections 402 and 405 of the Companies Act 2006 since its exclusion is not material for the purpose of giving a true and fair view. These financial statements therefore present information about the Company as an individual undertaking and not about its group. The Company has taken advantage of the exemption allowed under section 405 of the Companies Act 2006 and has not prepared consolidated financial statements on the basis that its subsidiary undertaking is not material for the purpose of giving a true and fair view.
The Directors have prepared cash flow forecasts covering at least 12 months from the date these financial statements were approved, which also consider the available headroom on the overdraft facility and planned capital expenditure. The Directors are satisfied that with the expectations that current facilities remain in place, that the Company is able to continue to trade and meet its liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements. Accordingly these financial statements have been prepared on the going concern basis.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Turnover from the supply of goods is recognised when the customer has assumed most of the risks and rewards of ownership which is when the goods are available for delivery to the customer or collection from the depot by the customer. Turnover from the supply of services is recognised on an accruals basis over the periods the services are provided to the customer.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
2.Accounting policies (continued)
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
2.Accounting policies (continued)
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Company's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life of seven years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
2.Accounting policies (continued)
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
2.Accounting policies (continued)
settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
2.Accounting policies (continued)
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Useful economic lives of property, plant and equipment The annual depreciation charge for property, plant and equipment is sensitive to changes in the useful economic lives and residual values of assets. The economic lives and residual values are re-assessed annually. They are revised when necessary to reflect current estimates, based on recoverability and expected economic utilisation of the asset. Useful economic life of goodwill The annual amortisation charge for goodwill is sensitive to changes in the useful economic life of the asset. The goodwill is currently being amortised on a straight-line basis of 7 years from the date of acquisition, being the Directors' estimate of the useful economic life of the business acquired. This economic life is re-assessed annually and revised when necessary to reflect current estimates, based on recoverability and expected future economic inflows to the Company. Machinery available for hire The Company's machinery which is available for hire has been recognised as stock rather than tangible fixed assets on the basis that it is also available for sale. The machines are assessed for impairment at each reporting date and impairment losses are recognised if their carrying amounts exceed their recoverable amounts. The recoverable amounts of the machines are determined as the lower of their
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
3.Judgments in applying accounting policies (continued)
Valuation of stocks Stock is held at the lower of cost and net realisable value. The Directors review the net realisable value of wholegoods at each reporting date, and make provisions where they consider this to be lower than cost or where there is slow moving and obsolete stock. At the year end this provision amounted to £6,072,013 on a gross cost of £48,737,924 (2022 - £5,739,542 on a gross cost of £34,455,677). The Directors also review the net realisable value of parts stock at each reporting date, and making provisions where they consider this to be lower than cost or where there is slow moving and obsolete stock. At the year end this provision amounted to £1,344,880 on a gross cost of £7,417,746 (2022 - £1,482,453 on a gross cost of £7,559,447). Recoverability of trade debtors A provision for bad debts is made where it is identified that a trade debtor may not be recoverable in full by the Company. The bad debt provision is made on a specific basis against customer balances where they are not considered recoverable based upon payment history and aging profile. Buy back provision A provision is recognised by the Company when it enters into agreements with customers to buy back items of machinery, for an agreed amount, and at a set time in the future. At the year end the provision amounted to £674,737 (2022 - £502,476) and is expected to be utilised on various dates between December 2023 and December 2027.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 33 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 34 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
12.Taxation (continued)
The main rate of UK Corporation tax increased from 19% to 25% on 1 April 2023. This was substantively enacted in May 2021. Accordingly deferred tax assets and liabilities are stated at 25% (2022 - 25%).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 36 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 37 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 38 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 39 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 40 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 41 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 42 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
All of the shares rank equally in all respects except for dividends which may be paid on one or more classes to the exclusion of others or in differing amounts.
Capital redemption reserve
Profit and loss account
- 43 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the Company to the fund and amounted to £290,509 (2022 - £266,805). Contributions amounting to £97,409 (2022 - £93,898) were payable to the funds at the year end and are included within other creditors.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
In the opinion of the Directors, the ultimate controlling party is Mr P A Tuckwell due to his majority shareholding in the Company.
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