Company registration number 12879205 (England and Wales)
TANRO LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
TANRO LTD
COMPANY INFORMATION
Directors
Mr R Orgill
Mr F P Phelan
Mr S P Harrington
Mr A T Bracken
(Appointed 7 July 2023)
Company number
12879205
Registered office
Unit N, Ivanhoe Business Park
Ashby De La Zouch
Leicester
LE65 2AB
Auditor
Sumer Auditco Limited
The Beehive
Beehive Ring Road
London Gatwick Airport
Gatwick
United Kingdom
RH6 0PA
TANRO LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Income statement
9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 23
TANRO LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 28 February 2024.

Review of the business

TanRo Limited is a delivery focused, owner managed main contracting business committed to delivering the best possible service at a fair value.

We primarily operate in the industrial, infrastructure, fit out and commercial sectors working on behalf of developer and end user clients. Throughout the course of 2023 we have also extended our capabilities with the introduction of our multi-build & residential offering.

Capable of delivering design and build projects from £1m to £40m, the directors bring in excess of 40 years’ experience delivering some of the largest and most complex schemes across the country.

Industrial and Commercial – New Build (60% of Revenue)

Throughout the year we have actively worked on new build industrial and logistics projects on site totalling in the order of 827,000 square feet, circa 70% of which, came via repeat business opportunities, firmly cementing us as a leading medium size contractor in the sector. We believe this is testament to our client focused model and our ability to deliver what we say.

Operating within the small to mid-box market we believe we can offer the tier 1 credentials in relation to sustainability, health, safety and environmental whilst operating at a size whereby the directors and owners are involved in the day-to-day decision making within the business and remain as principal contracts for our clients.

Industrial and Commercial – Refurbishment (25% of Revenue)
The industrial and logistics sector has continued to go from strength to strength over the previous 20 years. We now find ourselves in a scenario whereby excellent stock is coming back to the market at the completion of tenancies. These units, whilst are of sound structure are unlikely to be fit for the next occupier’s purpose. We therefore have identified the refurbishment and fit-out of these units as a key sector for the business moving forward.

Throughout the year we have undertaken significant refurbishments on two units in this very scenario. Utilising our experience we have been able to provide these units with a new lease of life and the incoming business a future home.

Industrial and Commercial – Fit Out (5% of Revenue)
Following the successful completion of the new build industrial schemes, this year saw end users and occupiers trust us to deliver turnkey fit outs on their behalf. We believe that this demonstrates our ability to offer value in this market. Also, this reinforces the fact that having worked alongside tenants and occupiers throughout the base-build schemes, end-users continue to have confidence in our ability to continue to deliver on their behalf.

Infrastructure (7% of Revenue)

Throughout the year we have operated across 4 infrastructure projects, 3 of which came via repeat clients. With in house technical and engineering capabilities we are able to offer our clients a cradle to grave solution for their development.

TANRO LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -
Multi-Build & Residential (3% of Revenue)

We are delighted to announce that 2023 saw the introduction of our multi-build and residential sector. Throughout the year, to springboard this expansion, we welcomed several key team members and a new director to the group. Operating with the same ethos as the wider business, we seek to nurture the teams existing relationships whilst seeking out new ones to widen our scope.

Specialising in the PRS, student accommodation and care sectors, through the multi-build business we are also looking to widen our offering to capture the sports and leisure sector.

From a standing start the multi-build offering accounted for circa 3% of our overall turnover.

The directors of the business believe that by widening our offering we are able to continue to offer an exemplary service whilst not being subject to the inevitable market fluctuations of any one niche.

Principal Risks
The company operates in the design and build market and generally under fixed price lump sums. Of late the market has been subject to a series of high-profile insolvencies causing issues both upstream and downstream as well as problems within surety markets.

The main contracting market and our sectors by nature operates on tight margins and often we have seen our competition in a race to the bottom. To remain competitive, we understand that the market we operate in will never be a sector which returns double figure gross margins long term. However, we seek to offer our clients an exceptional service for a fair rate and seek to deliver value through alternative solutions and more efficient ways of working. We maintain that we will not take projects on at margins which we feel are unsustainable. We owe an obligation to not only our clients, but also our suppliers to operate at a sustainable margin level and on fair payment terms.

Whilst we operate in a sector whereby, we accept a degree of risk, we will only do so upon receipt of the relevant information to enable us to make an assessment. The design and build contract is designed to provide a single point of responsibility, time and cost savings – but we believe that this should not be an excuse for inadequate information or an unreasonable apportionment of risk between the parties and therefore will only accept a risk when it can be fully understood and a reasoned judgement can be made.

To mitigate the residual risks, we operate with a small, tight knit supply chain and endeavour to only use suppliers, where possible, that we have existing and ongoing relationships with. This enables us to have open conversation in relation to the apportionment of risk and mitigate residual risk through collaborative working.

Overall, the main contracting market has not been in a good place of late, however we believe that we are not falling into the trend for the following reasons:

 

TANRO LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -
Ongoing performance and the year ahead

Our business model is to do what we know and do it well. By targeting work that we are confident we can deliver to a high standard, we were able to almost double our turnover from last year to this, whilst containing to maintain a sustainable return.

We are carrying a strong order book into 2024 to 2025, however after three years of significant growth we are this year targeting a similar level of revenue and a year of consolidation. The ethos and direction from the directors is, that whilst we will continue to grow in the long term, there is no aspiration to chase turnover, win work that is outside our comfort zone or take on work that we cannot deliver in a controlled manner. The owners and directors of TanRo remain involved in all projects from tender through to making good defects and it is the aspiration of the board for this to continue. This means that we will not target further growth if we cannot maintain this ethos. We hope this offers our clients the confidence that they will always have a direct line of communication with the board.

On behalf of the board

Mr S P Harrington
Director
4 September 2024
TANRO LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 4 -

The directors present their annual report and financial statements for the year ended 28 February 2024.

Results and dividends

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

Ordinary dividends were paid amounting to £187,751. The directors do not recommend payment of a final dividend.

Directors

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

Mr R Orgill
Mr F P Phelan
Mr S P Harrington
Mr A T Bracken
(Appointed 7 July 2023)
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 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.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

TANRO LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 5 -
On behalf of the board
Mr S P Harrington
Director
4 September 2024
TANRO LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TANRO LTD
- 6 -
Opinion

We have audited the financial statements of Tanro Ltd (the 'company') for the year ended 28 February 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, 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 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'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. The comparatives figures have not been audited.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

TANRO LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TANRO LTD (CONTINUED)
- 7 -
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.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We designed procedures in line with our responsibilities, outline above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher risk of not detecting one resulting from error, as fraud may involved deliberate concealment by, for example, forgery or internal misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud are detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

 

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those relating to reporting framework FRS102 and the Companies Act 2006 and the relevant direct and indirect tax regulation in the United Kingdom. In addition, the Company has to comply with laws and regulations relating to its operations, including health and safety, United Kingdom construction quality standards, employees, data protection, anti-bribery and corruption, anti-collusion and anti-slavery. This includes signed declarations on all contracts stating the policies are being followed.

- We reviewed how TanRo Ltd complies with those frameworks by discussion with management and understanding how the company maintains and communicates with its policies and procedures in these areas and corroborating our work by reviewing supporting documentation, including correspondence with relevant authorities.

- We assessed the susceptibility of the company's financial statements to material misstatement, and how fraud might occur. We met with management to understand where they consider there was susceptibility to fraud, including in respect of revenue recognition and the appropriateness of key misstatements and judgements made on revenue generating contracts. We also considered performance targets and their influence on the risk management manipulating earnings. Where risk was considered to be highest, we performed audit procedures to address each identified fraud risk. The procedures included testing manual journal entries, where we reviewed the appropriateness of segregation of duties around initiation, processing and authorising transactions.

TANRO LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TANRO LTD (CONTINUED)
- 8 -

- Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved a review of agreed contracts and other documentation to support contract progress and delivery. Additionally, we assessed whether revenue recognised represented a faithful depiction of the value of work performed by the company over time.

Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.

Mr Alan Edward Jones FCCA
Senior Statutory Auditor
For and on behalf of Sumer Auditco Limited
4 September 2024
Chartered Accountants
Statutory Auditor
The Beehive
Beehive Ring Road
London Gatwick Airport
Gatwick
United Kingdom
RH6 0PA
TANRO LTD
INCOME STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
2
77,267,385
39,958,630
Cost of sales
(70,967,406)
(36,156,721)
Gross profit
6,299,979
3,801,909
Administrative expenses
(1,895,421)
(1,382,980)
Operating profit
3
4,404,558
2,418,929
Interest receivable and similar income
6
13,119
3,531
Profit before taxation
4,417,677
2,422,460
Tax on profit
7
(1,102,395)
(463,243)
Profit for the financial year
3,315,282
1,959,217
TANRO LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 10 -
2024
2023
£
£
Profit for the year
3,315,282
1,959,217
Other comprehensive income
-
-
Total comprehensive income for the year
3,315,282
1,959,217
TANRO LTD
STATEMENT OF FINANCIAL POSITION
AS AT
28 FEBRUARY 2024
28 February 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
73,671
48,738
Current assets
Debtors
10
9,533,886
6,063,869
Cash at bank and in hand
7,618,715
7,072,688
17,152,601
13,136,557
Creditors: amounts falling due within one year
11
(12,204,328)
(11,300,040)
Net current assets
4,948,273
1,836,517
Total assets less current liabilities
5,021,944
1,885,255
Provisions for liabilities
Deferred tax liability
12
18,418
9,260
(18,418)
(9,260)
Net assets
5,003,526
1,875,995
Capital and reserves
Called up share capital
14
100
100
Profit and loss reserves
5,003,426
1,875,895
Total equity
5,003,526
1,875,995

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 4 September 2024 and are signed on its behalf by:
Mr R Orgill
Mr F P Phelan
Director
Director
Mr S P Harrington
Director
Company registration number 12879205 (England and Wales)
TANRO LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
100
112,152
112,252
Year ended 28 February 2023:
Profit and total comprehensive income
-
1,959,217
1,959,217
Dividends
8
-
(195,474)
(195,474)
Balance at 28 February 2023
100
1,875,895
1,875,995
Year ended 28 February 2024:
Profit and total comprehensive income
-
3,315,282
3,315,282
Dividends
8
-
(187,751)
(187,751)
Balance at 28 February 2024
100
5,003,426
5,003,526
TANRO LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
2,819,770
6,611,245
Income taxes paid
(947,908)
(23,824)
Net cash inflow from operating activities
1,871,862
6,587,421
Investing activities
Purchase of tangible fixed assets
(51,203)
(45,781)
Loan to related party
(1,100,000)
-
0
Interest received
13,119
3,531
Net cash used in investing activities
(1,138,084)
(42,250)
Financing activities
Dividends paid
(187,751)
(195,474)
Net cash used in financing activities
(187,751)
(195,474)
Net increase in cash and cash equivalents
546,027
6,349,697
Cash and cash equivalents at beginning of year
7,072,688
722,991
Cash and cash equivalents at end of year
7,618,715
7,072,688
TANRO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 14 -
1
Accounting policies
Company information

Tanro Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit N, Ivanhoe Business Park, Ashby De La Zouch, Leicester, LE65 2AB.

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 £.

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

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as the proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Full provision is made for the losses on all contracts in the year in which they are first foreseen.

1.4
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 bases:

Fixtures and fittings
25% reducing balance
Computers
33.3% straight line
Motor vehicles
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 credited or charged to profit or loss.

1.5
Financial instruments
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

TANRO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
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.

Impairment of financial assets

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.

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

TANRO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.6
Taxation

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

Current tax

Taxation for the year comprises of current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

 

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

 

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

 

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

1.7
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.

1.8
Retirement benefits

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

1.9
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.

1.10

Long term contracts

Long term contracts are stated at net cost less foreseeable losses less any applicable payments on account. The amount recorded as revenue in respect of long term contracts is ascertained by reference to the value of the work carried out to date. Attributable profit is recognised as the difference between recorded revenue and related costs.

 

 

 

TANRO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 17 -
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
77,267,385
39,958,630
2024
2023
£
£
Other revenue
Interest income
13,119
3,531
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
-
0
Depreciation of owned tangible fixed assets
24,481
12,954
Loss on disposal of tangible fixed assets
1,789
-
Operating lease charges
42,553
26,571
4
Employees

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

2024
2023
Number
Number
Directors
4
3
Operative
18
3
Admistrative
6
11
Total
28
17

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,561,126
829,945
Social security costs
176,455
93,230
Pension costs
403,897
346,493
2,141,478
1,269,668
TANRO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 18 -
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
81,200
42,325
Company pension contributions to defined contribution schemes
319,500
300,000
400,700
342,325
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
13,119
3,531
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
13,119
3,531
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,093,237
457,006
Deferred tax
Origination and reversal of timing differences
9,158
6,237
Total tax charge
1,102,395
463,243
TANRO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
7
Taxation
(Continued)
- 19 -

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:

2024
2023
£
£
Profit before taxation
4,417,677
2,422,460
Expected tax charge based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
1,081,889
460,267
Tax effect of expenses that are not deductible in determining taxable profit
17,466
4,998
Permanent capital allowances in excess of depreciation
(6,118)
(8,259)
Deferred tax
9,158
6,237
Taxation charge for the year
1,102,395
463,243

The main rate of Corporation Tax in force at the Statement of Financial Position date was 25%, having been enacted from 1 April 2023. Prior to this date, the main rate of Corporation Tax was 19%. This means the effective rate of Corporation Tax for the year was 24.49%.

8
Dividends
2024
2023
£
£
Interim paid
187,751
195,474
TANRO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 20 -
9
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 March 2023
15,482
38,755
10,352
64,589
Additions
22,747
13,461
14,995
51,203
Disposals
(2,507)
-
0
-
0
(2,507)
At 28 February 2024
35,722
52,216
25,347
113,285
Depreciation and impairment
At 1 March 2023
2,797
11,976
1,078
15,851
Depreciation charged in the year
5,301
15,030
4,150
24,481
Eliminated in respect of disposals
(718)
-
0
-
0
(718)
At 28 February 2024
7,380
27,006
5,228
39,614
Carrying amount
At 28 February 2024
28,342
25,210
20,119
73,671
At 28 February 2023
12,685
26,779
9,274
48,738
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
8,235,218
6,004,589
Other debtors
180,700
-
0
Prepayments and accrued income
94,629
59,280
8,510,547
6,063,869
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
1,023,339
-
0
Total debtors
9,533,886
6,063,869
TANRO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 21 -
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
11,100,304
9,388,219
Corporation tax
602,305
456,976
Other taxation and social security
458,945
1,435,724
Other creditors
27,235
14,871
Accruals and deferred income
15,539
4,250
12,204,328
11,300,040
12
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
18,418
9,260
2024
Movements in the year:
£
Liability at 1 March 2023
9,260
Charge to profit or loss
9,158
Liability at 28 February 2024
18,418
13
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
403,897
346,493

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.

TANRO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 22 -
14
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of £1 each
45
45
45
45
B Ordinary of £1 each
45
45
45
45
C Ordinary of £1 each
10
10
10
10
100
100
100
100
15
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:

2024
2023
£
£
Within one year
53,221
56,531
Between two and five years
17,640
70,861
70,861
127,392
16
Events after the reporting date

On the 5th July 2024 Tanro Group Limited gained significant control of the company.

17
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Related Party Loan
2024
2023
£
£
Entities controlled by common Directors
1,200,806
-

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities controlled by common Directors
1,200,806
-
18
Directors' transactions

Dividends totalling £187,751 (2023 - £195,474) were paid in the year in respect of shares held by the company's directors.

TANRO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
18
Directors' transactions
(Continued)
- 23 -
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director 1
-
(6,036)
-
(5,707)
(11,743)
Director 2
-
2,700
533
-
3,233
Director 3
-
(2,224)
224
-
(2,000)
(5,560)
757
(5,707)
(10,510)
19
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
3,315,282
1,959,217
Adjustments for:
Taxation charged
1,102,395
463,243
Investment income
(13,119)
(3,531)
Loss on disposal of tangible fixed assets
1,789
-
Depreciation and impairment of tangible fixed assets
24,481
12,954
Movements in working capital:
Increase in debtors
(2,370,017)
(4,767,912)
Increase in creditors
758,959
8,947,274
Cash generated from operations
2,819,770
6,611,245
20
Analysis of changes in net funds
1 March 2023
Cash flows
28 February 2024
£
£
£
Cash at bank and in hand
7,072,688
546,027
7,618,715
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