A.B. 2000 Ltd
Annual Report and Financial Statements
For the period ended 26 November 2023
Company Registration No. SC155832 (Scotland)
A.B. 2000 Ltd
Company Information
Directors
J Murphy
A Richardson
Company number
SC155832
Registered office
95 Westburn Drive
Cambuslang
Glasgow
South Lanarkshire
G72 7NA
Auditor
Moore Kingston Smith LLP
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Business address
95 Westburn Drive
Cambuslang
Glasgow
South Lanarkshire
United Kingdom
G72 7NA
A.B. 2000 Ltd
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 27
A.B. 2000 Ltd
Strategic Report
For the period ended 26 November 2023
Page 1

The directors present the strategic report for the period ended 26 November 2023.

Fair review of the business

The company's turnover for the period was £11,877,767 which is a decrease in activity over the previous period.

 

On 30 September 2023 the company's tangible assets, except improvements to property and fixtures and fittings, were formally valued by SIA Group at a fair value of £11,445,480 representing an increase of £2,106,573 compared to book value at the time.

 

J Murphy leads a management team that is responsible for the day to day running of the business.

 

The company saw a decline year on year in both turnover and profitability. The management of the company continue to place emphasis on cost management and efficiency to mitigate cost pressures to the extent possible. The company is exposed to fluctuations in its borrowing base rate and its consequent impact on borrowing costs.

 

During the financial year the rail plant hire business in A.B.2000 Ltd was transferred to Quattro Plant Limited, with A.B.2000 Ltd becoming a civils infrastructure plant hire focused business.

Key performance indicators

The directors use a number of measures to monitor and target the performance of the company. They regard the following as the key financial indicators of performance:

 

Gross profit margin - measuring the ratio of profits generated by the company's operations after direct costs.

 

Operating profit margin - measuring the ratio of profit generated by the company's operations after expenses.

 

Return on capital employed - measuring the return on capital employed based on current market value.

 

Below is a summary of the KPI's:

2023
2022
%
%
Gross profit margin
19.73
21.59
Operating profit margin
-12.34
-11.54
Return on capital employed
-12.14
-9.49
EBITDA
£794k
£1.040m
A.B. 2000 Ltd
Strategic Report (Continued)
For the period ended 26 November 2023
Page 2

Financial instruments

 

Treasury operations and financial instruments

Treasury activities take place under procedures and policies monitored by the directors. These policies are designed to minimise the financial risks faced by the company which primarily arise from interest rate, credit and liquidity risks. It is not the policy of the company to enter into speculative transactions.

 

The company uses financial instruments which include bank balances, bank loans and other items arising from its operations such as trade debtors and trade creditors. The main purpose of these financial instruments is to finance the working capital required for the company's operations. The directors review and agree policies for managing financial risks which arise from the existence of financial instruments.

 

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

 

Short term flexibility is achieved by maintaining appropriate bank facilities.

 

Interest rate risk

The company finances its operations through a mixture of retained profits and bank revolving facilities. The company's exposure to interest rate fluctuations on its borrowings is managed by actively looking to reduce its working capital requirement and by ensuring the best possible terms with the company's bankers.

 

Credit risk

The company's principal financial assets are trade debtors.

 

In order to manage credit risk, credit limits are reviewed by the directors on a regular basis in conjunction with collection history.

 

Future developments

We foresee the company stabilising sales in the current year, while margins are likely to continue to be impacted by cost inflationary pressures, although to a lesser degree than the prior year. Costs will continue to be controlled so that the company's financial position can be strengthened. The company continues to reinvest in its Plant & Machinery assets for hire to the construction sector, and to improve its road sweeping capabilities.

 

On behalf of the board

J Murphy
Director
24 May 2024
A.B. 2000 Ltd
Directors' Report
For the period ended 26 November 2023
Page 3

The directors present their annual report and financial statements for the period ended 26 November 2023.

 

The company has an accounting reference date of 30 November. The financial statements are prepared to the nearest Sunday of the accounting reference date which is 26 November 2023 for a 52 week period. The previous financial statements were prepared for a 52 week period to 27 November 2022 .

Principal activities

The principal activity of the company continued to be that of hiring construction plant, cranes and ancillary or complimentary attachments.

Results and dividends

The results for the period are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

J Murphy
A Richardson
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

Auditor

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

Energy and carbon report

The company has not presented a carbon emissions report as this has been included within the consolidated financial statements of Quattro Group Limited, the company's ultimate parent entity incorporated in England and Wales. These consolidated financial statements are available from Greenway Court, Canning Road, Stratford, London, E15 3ND.

Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's 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 risk management.

A.B. 2000 Ltd
Directors' Report (Continued)
For the period ended 26 November 2023
Page 4
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
J Murphy
Director
24 May 2024
A.B. 2000 Ltd
Directors' Responsibilities Statement
For the period ended 26 November 2023
Page 5

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

A.B. 2000 Ltd
Independent Auditor's Report
To the Members of A.B. 2000 Ltd
Page 6
Opinion

We have audited the financial statements of A.B. 2000 Ltd (the 'company') for the period ended 26 November 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

A.B. 2000 Ltd
Independent Auditor's Report (Continued)
To the Members of A.B. 2000 Ltd
Page 7

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

A.B. 2000 Ltd
Independent Auditor's Report (Continued)
To the Members of A.B. 2000 Ltd
Page 8
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

A.B. 2000 Ltd
Independent Auditor's Report (Continued)
To the Members of A.B. 2000 Ltd
Page 9

Explanation as to what extent the audit was 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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A.B. 2000 Ltd
Independent Auditor's Report (Continued)
To the Members of A.B. 2000 Ltd
Page 10

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the company and the company’s members as a body, for our work, for this report, or for the opinions we have formed.

Karen Wardell
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
24 May 2024
Chartered Accountants
Statutory Auditor
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
A.B. 2000 Ltd
Statement of Comprehensive Income
For the period ended 26 November 2023
Page 11
Period
Period
ended
ended
26 November
27 November
2023
2022
Notes
£
£
Turnover
3
11,877,767
15,814,546
Cost of sales
(9,534,148)
(12,400,067)
Gross profit
2,343,619
3,414,479
Administrative expenses
(3,831,356)
(5,277,382)
Other operating income
21,653
37,607
Operating loss
4
(1,466,084)
(1,825,296)
Interest payable and similar expenses
7
(899,114)
(687,900)
Loss before taxation
(2,365,198)
(2,513,196)
Tax on loss
8
554,659
1,023,934
Loss for the financial period
(1,810,539)
(1,489,262)

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

A.B. 2000 Ltd
Balance Sheet
As at 26 November 2023
26 November 2023
Page 12
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
9
42,291
47,291
Tangible assets
10
9,136,811
15,663,105
Investments
11
379,130
379,130
9,558,232
16,089,526
Current assets
Stock
13
28,920
31,526
Debtors
14
7,511,228
6,063,468
Cash at bank and in hand
76,582
278,769
7,616,730
6,373,763
Creditors: amounts falling due within one year
15
(5,096,638)
(3,224,314)
Net current assets
2,520,092
3,149,449
Total assets less current liabilities
12,078,324
19,238,975
Creditors: amounts falling due after more than one year
16
(9,353,290)
(14,148,743)
Provisions for liabilities
18
(1,885,861)
(2,440,520)
Net assets
839,173
2,649,712
Capital and reserves
Called up share capital
20
250,000
250,000
Revaluation reserve
828,248
828,248
Profit and loss reserves
(239,075)
1,571,464
Total equity
839,173
2,649,712
The financial statements were approved by the board of directors and authorised for issue on 24 May 2024 and are signed on its behalf by:
J Muphy
Director
Company Registration No. SC155832
A.B. 2000 Ltd
Statement of Changes in Equity
For the period ended 26 November 2023
Page 13
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 29 November 2021
250,000
828,248
3,060,726
4,138,974
Period ended 27 November 2022:
Loss and total comprehensive income for the period
-
-
(1,489,262)
(1,489,262)
Balance at 27 November 2022
250,000
828,248
1,571,464
2,649,712
Period ended 26 November 2023:
Loss and total comprehensive income for the period
-
-
(1,810,539)
(1,810,539)
Balance at 26 November 2023
250,000
828,248
(239,075)
839,173
A.B. 2000 Ltd
Statement of Cash Flows
For the period ended 26 November 2023
Page 14
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
655,062
1,614,434
Interest paid
(899,114)
(687,900)
Income taxes (paid)/refunded
-
0
106,473
Net cash (outflow)/inflow from operating activities
(244,052)
1,033,007
Investing activities
Purchase of tangible fixed assets
(88,652)
(2,963,118)
Proceeds on disposal of tangible fixed assets
4,925,970
1,838,365
Net cash generated from/(used in) investing activities
4,837,318
(1,124,753)
Financing activities
Movement on bank borrowings
(4,795,453)
(418,880)
Net cash used in financing activities
(4,795,453)
(418,880)
Net decrease in cash and cash equivalents
(202,187)
(510,626)
Cash and cash equivalents at beginning of period
278,769
789,395
Cash and cash equivalents at end of period
25
76,582
278,769
A.B. 2000 Ltd
Notes to the Financial Statements
For the period ended 26 November 2023
Page 15
1
Accounting policies
Company information

A.B. 2000 Ltd is a private company limited by shares incorporated in Scotland. The registered office is 95 Westburn Drive, Cambuslang, Glasgow, South Lanarkshire, G72 7NA.

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 pound.

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

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

A.B. 2000 Ltd is a wholly owned subsidiary of Quattro Group Limited and the results of A.B. 2000 Ltd are included in the consolidated financial statements of Quattro Group Limited, the company's ultimate parent entity incorporate in England and Wales. These are available from Greenway Court, Canning Road, Stratford, London, E15 3ND.

1.2
Going concern

The company's turnovertrue fell significantly during the year to £11,877,767, and they made a loss of £1,810,539. However the company had net assets of £839,173 at the balance sheet date and continues to consistently generate cash from operations. The company and the wider Quattro group meets its funding requirements through a group wide Asset Based Finance Facility, which provides sufficient headroom for the company’s operations for the foreseeable future. The directors have produced financial forecasts and they have a reasonable expectation that the company, with the support of the wider group, has adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

1.3
Turnover

Turnover represents hire charges, excluding VAT. Turnover is recognised when the services are provided to the customer and provision is made for any accrued income arising on hires made not invoiced.

Revenue from contracts for the provision of operated hires is recognised on the dates that the hire is provided.

A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
1
Accounting policies
(Continued)
Page 16
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is twenty years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Tangible fixed assets

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

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

Leasehold improvements
-
Straight line over the lease term
Plant and equipment
-
2-50% on reducing balance or straight line basis
Fixtures and fittings
-
15-25% on straight line basis

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

1.6
Fixed asset investments

A subsidiary is an entity controlled by the company. 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 company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.8
Stock

Stock is stated at cost which comprises the cost of bringing fuel to its present location and condition.

1.9
Cash at bank and in hand

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

A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
1
Accounting policies
(Continued)
Page 17
1.10
Financial instruments

The company has only basic financial instruments measured at amortised cost, with no instruments classified as other or measured at fair value.

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.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

1.11
Equity instruments

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

1.12
Taxation

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

Current tax

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

A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
1
Accounting policies
(Continued)
Page 18
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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.

 

Government grants are recognised as income over the periods when the related costs are incurred.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.17

Related party disclosures

The company has taken advantage of the exemption within FRS 102 not to disclose transactions with other members of the group.

A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 19
2
Judgements and key sources of estimation uncertainty

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

 

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

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.

Depreciation

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets, See note 10 for the carrying amount of tangible fixed assets and note 1.5 for the useful economic lives for each class of asset.

Review for doubtful debts

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Deferred tax assets

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. See note 18 for the carrying amount and further details.

3
Turnover and other revenue

The turnover and profit before taxation are attributable to the one principal activity of the company.

2023
2022
£
£
Turnover analysed by class of business
Hire charges
11,877,767
15,814,546
2023
2022
£
£
Other operating income
Other grants received
21,653
37,607
A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
3
Turnover and other revenue
(Continued)
Page 20
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
11,877,767
15,814,546
4
Operating loss
2023
2022
Operating loss for the period is stated after charging/(crediting):
£
£
Exchange gains
-
0
(14,160)
Fees payable to the company's auditor for the audit of the company's financial statements
36,300
33,000
Depreciation of owned tangible fixed assets
2,255,520
2,860,531
Profit on disposal of tangible fixed assets
(566,544)
(284,541)
Amortisation of intangible assets
5,000
5,000
Cost of stock recognised as an expense
1,010,344
1,281,938
Operating lease charges
44,500
218,575
5
Employees

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

2023
2022
Number
Number
Administration
18
25
Operations
124
158
Total
142
183

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,865,077
7,518,393
Social security costs
601,885
809,611
Pension costs
124,742
191,288
6,591,704
8,519,292
A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 21
6
Directors' remuneration

During the year remuneration paid to directors was £nil (2022: £nil).

7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank borrowings
899,114
687,900
8
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(554,659)
(1,023,934)

The actual credit for period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(2,365,198)
(2,513,196)
Expected tax credit based on the standard rate of corporation tax in the UK of 22.96% (2022: 19.00%)
(543,049)
(477,507)
Tax effect of expenses that are not deductible in determining taxable profit
3,956
2,965
Other permanent differences
492
-
0
Capital allowances in excess of depreciation
4,805
(155,903)
Remeasurement of deferred tax for changes in tax rates
(20,863)
(393,489)
Taxation credit for the period
(554,659)
(1,023,934)
A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 22
9
Intangible fixed assets
Goodwill
£
Cost
At 28 November 2022 and 26 November 2023
100,000
Amortisation and impairment
At 28 November 2022
52,709
Amortisation charged for the period
5,000
At 26 November 2023
57,709
Carrying amount
At 26 November 2023
42,291
At 27 November 2022
47,291
10
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 28 November 2022
292,941
35,415,779
206,827
35,915,547
Additions
-
0
88,652
-
0
88,652
Disposals
-
0
(17,218,182)
-
0
(17,218,182)
At 26 November 2023
292,941
18,286,249
206,827
18,786,017
Depreciation and impairment
At 28 November 2022
105,208
19,940,407
206,827
20,252,442
Depreciation charged in the period
48,417
2,207,103
-
0
2,255,520
Eliminated in respect of disposals
-
0
(12,858,756)
-
0
(12,858,756)
At 26 November 2023
153,625
9,288,754
206,827
9,649,206
Carrying amount
At 26 November 2023
139,316
8,997,495
-
0
9,136,811
At 27 November 2022
187,733
15,475,372
-
0
15,663,105
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
379,130
379,130
A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 23
12
Subsidiaries

Details of the company's subsidiaries at 26 November 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Phoenix Marine Solutions Limited
Scotland
Ordinary
100.00
Phoenix Weights Limited
Scotland
Ordinary
100.00

The above subsidiaries all have the following registered office: 95 Westburn Drive, Cambuslang, Glasgow, G72 7NA.

13
Stock
2023
2022
£
£
Fuel stock
28,920
31,526
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,605,453
2,200,797
Corporation tax recoverable
56,235
56,235
Amounts owed by group undertakings
-
0
718,132
Other debtors
3,039,244
185,825
Prepayments and accrued income
892,617
984,800
5,593,549
4,145,789
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 18)
1,917,679
1,917,679
Total debtors
7,511,228
6,063,468

Trade debtors includes £1,605,423 (2022: £2,200,797) which are subject to an invoice discounting arrangement.

A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 24
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
993,626
1,666,646
Amounts owed to group undertakings
3,585,060
759,333
Taxation and social security
155,576
349,061
Other creditors
46,087
232,149
Accruals and deferred income
316,289
217,125
5,096,638
3,224,314
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
17
9,353,290
14,148,743
17
Loans and overdrafts
2023
2022
£
£
Bank loans
9,353,290
14,148,743
Payable after one year
9,353,290
14,148,743

At the year end, the company had a credit facility which was on a revolving basis and no amounts were repayable within a year. The interest rate is the base rate plus 2.25 - 3.25%.

 

At the year end, the bank loans, receivables and plant and machinery facilities were secured upon the assets of the company and its associated group companies.

18
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
1,885,861
2,440,520
-
-
Tax losses
-
-
1,917,679
1,917,679
1,885,861
2,440,520
1,917,679
1,917,679
A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
18
Deferred taxation
(Continued)
Page 25
2023
Movements in the period:
£
Liability at 28 November 2022
522,841
Credit to profit or loss
(554,659)
Asset at 26 November 2023
(31,818)
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
124,742
191,288

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
250,000
250,000
250,000
250,000
21
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
657,514
369,587
Between two and five years
787,018
225,841
1,444,532
595,428
A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 26
22
Related party transactions

Other related party transactions

The company entered into transactions with Anglo Swedish Equipment Limited, a company owned by a director of the company. During the year the company made purchases from Anglo Swedish Equipment Limited totaling £466,024 (2022: £51,873) and the company owed £nil (2022: £46,659) to Anglo Swedish Equipment Limited at the balance sheet date.

The company entered into transactions with Aqurate Engineering Limited, a company owned by the director of the company. During the year the company incurred costs on behalf of Aqurate Engineering Limited which were recharged totalling £710,659 (2022: £nil), and the company was owed £710,659 (2022: £nil) from Aqurate Engineering Limited at the balance sheet date.

The company entered into transactions with AB2T Limited, a company owned by the director of the company. During the year the company incurred costs on behalf of AB2T Limited which were recharged totaling £23,571 (2022: £nil), and the company was owed £23,571 (2022: £nil) from AB2T Limited at the balance sheet date.

Transactions with Group Companies
The company has taken advantage of the exemption available under FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertakings of the group.

23
Ultimate controlling party

The ultimate and immediate parent undertaking is Quattro Group Limited. The registered office is Greenway Court, Canning Road, Stratford, London, E15 3ND. The company was incorporated in England and Wales.

 

The largest and smallest group of undertakings for which group accounts are drawn up and filed is headed by Quattro Group Limited. The group accounts are available from the company's registered office.

 

The company's ultimate controlling party is J Murphy by virtue of his majority shareholding in the ultimate parent company.

A.B. 2000 Ltd
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 27
24
Cash generated from operations
2023
2022
£
£
Loss for the period after tax
(1,810,539)
(1,489,262)
Adjustments for:
Taxation credited
(554,659)
(1,023,934)
Finance costs
899,114
687,900
Gain on disposal of tangible fixed assets
(566,544)
(284,541)
Amortisation and impairment of intangible assets
5,000
5,000
Depreciation and impairment of tangible fixed assets
2,255,520
2,860,531
Movements in working capital:
Decrease/(increase) in stock
2,606
(30,240)
(Increase)/decrease in debtors
(1,517,160)
321,922
Increase in creditors
1,941,724
567,058
Cash generated from operations
655,062
1,614,434
25
Analysis of changes in net debt
28 November 2022
Cash flows
26 November 2023
£
£
£
Cash at bank and in hand
278,769
(202,187)
76,582
Borrowings excluding overdrafts
(14,148,743)
4,795,453
(9,353,290)
(13,869,974)
4,593,266
(9,276,708)
26
Contingent liability

Certain group companies have entered into a cross guarantee in respect of borrowings. The assets of the group are pledged as security by way of a fixed and floating charge. The total potential liability at the year end in respect of this borrowing, including amounts owed by this company, is £37,095,421 (2022: £39,506,379 ).

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