REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
T Manners & Sons Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
T Manners & Sons Limited |
T Manners & Sons Limited (Registered number: 00143125) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 16 |
T Manners & Sons Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
3 Kingfisher Court |
Bowesfield Park |
Stockton on Tees |
TS18 3EX |
T Manners & Sons Limited (Registered number: 00143125) |
Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The principal activity of the company is that of a construction contractor acting across a number of different sectors as independent trading divisions, these being; |
" Construction including house building |
" Specialist Joinery |
" Mechanical |
" Small Works |
" Fire Doors |
Construction - 2023 was a year of increasing workload and turnover in the construction division. This was predominantly the result of successful negotiation of a number of house building contracts with Housing Associations across the North East, building upon the reputation and success of projects delivered in previous years. |
The business is seeking to further strengthen its position within this market and has recruited a new director to capitalise on this key area of growth in the coming years. |
Specialist Joinery - Delays to projects had a detrimental impact upon turnover within 2023. The delays were largely out of the control of the company and impacted the early part of 2023. As the delayed projects commenced in the latter part of 2023, some recovery was seen and this improved the year end position created a positive start to 2024 with further encouragement for a stronger year to follow. |
Small Works and Fire Doors - A decision to combine these parts of the business from a management perspective has seen positive results despite the challenges which expansion brought. Both parts continue to develop their client base with growth in terms of turnover and order value realised. Small Works has repositioned itself from the insurance market which relied upon a large number of small value orders towards smaller commercial construction contracts (those not delivered by the construction division) of project values up to circa £200k. Consistent and reliable delivery is now reaping the reward of repeat custom and increased enquiries being received. |
Mechanical - The division increased its turnover and margins within 2023 through the decision to secure a greater proportion of its contracted works from external clients. This has the combined effect of reducing the reliance upon the construction division as a means of ensuring order books were full as well as providing greater flexibility for the construction division to secure value through more open competition. |
FUTURE DEVELOPMENTS |
The strategic plan for the company seeks to; |
Continue the growth and expansion our construction division in both housing and commercial work. Dedicated resource has been added to the company structure to continue with this growth aspiration. |
Return the turnover of the Specialist Joinery division to pre-pandemic levels plus inflation. |
Continue to support the new management structure introduced within the Small Works and Fire Door Divisions to generate the increase in sustainable turnover and profitability identified within the 2024 business plan. |
Strengthen the management structure within the Mechanical Division to support the effective delivery of increased turnover within that division. |
T Manners & Sons Limited (Registered number: 00143125) |
Strategic Report |
for the Year Ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
We anticipate a steady and sustainable increase in turnover, increasing commensurate with our staffing levels. |
We have to put in place management systems to ensure that our staff perform as we require. |
The change in government expected within 2024 has the potential to have a destabilising effect on the construction sector. |
Whilst affordable housing will be a key policy driver for any new administration, the time taken to see the resultant policies being implemented may create a delay to some projects commencing. |
The changes proposed by the Labour party relating to employment law and workers' rights will add significantly to our HR costs. |
Skilled resource capable of delivering the range and complexity of the projects delivered by T Manners are in short supply. Recruitment and retention of staff across all parts of the company will be a key risk to the effective delivery of contracts. |
The requirement for bonds on projects is significant and will prove challenging. |
KEY PERFORMANCE INDICATORS |
Given the straightforward nature of the business, the company's directors are of the opinion that analyses using KPI's is not necessary for an understanding of the development, performance or position of the entity, and that all relevant financial information has been disclosed within the financial statements. |
ON BEHALF OF THE BOARD: |
T Manners & Sons Limited (Registered number: 00143125) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of building contractors. |
DIVIDENDS |
A dividend of £20 per share was paid on 17 May 2023. |
A dividend of £10 per share was paid on 16 June 2023. |
A dividend of £13.33 per share was paid on 24 October 2023. |
A dividend of £6.66 per share was paid on 18 December 2023. |
The total distribution dividends during the year ended 31 December 2023 were £150,000. |
RESEARCH AND DEVELOPMENT |
We are researching increased use of Information technology in relation to all site admin and accountancy processes. |
We actively research improved processes for site-based solutions to site problems, and there is also product development in the joinery division. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
EMPLOYER ENGAGEMENT |
Directors meet on a monthly basis, outputs from which are then cascaded down through divisional team meetings which regularly occur to ensure timely communication. Close contact and visibility on site and an open-door policy at Head Office with departments leads results in employees getting proactive direct messaging and support. Directors are made aware and sponsor all key initiatives from corporate responsibility community partnership events to business development. Regular engagement and communications (and the Directors "voice") comes from the Business Plan launch at year end, quarterly newsletters, team meetings. Audits, IiP, Employee Consultation Groups, pulse surveys and employee questionnaires and the personal development programme enable the opportunity for a two-way voice and awareness. |
Through another difficult year employees have been supported through regular communications and the opportunity to help contribute and shape the business through suggestion boxes/individual follow ups as required, employee consultation group meetings, establishing an in house annual compensation and reward review and a new personal development programme focusing on meaningful conversations launched as well as signing up to the lighthouse project mental health charter in construction and promoting more activities and support in this space. Through natural attrition there are many exciting opportunities for existing staff in an SME to take advantage of. |
The company also retained its IiP status in the year, and is continuing to develop management training programmes.. |
T Manners & Sons Limited (Registered number: 00143125) |
Report of the Directors |
for the Year Ended 31 December 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Anderson Barrowcliff Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
T Manners & Sons Limited |
Opinion |
We have audited the financial statements of T Manners & Sons Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
T Manners & Sons Limited |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
Report of the Independent Auditors to the Members of |
T Manners & Sons Limited |
Auditors' 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 a Report of the Auditors 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. |
Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the company's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias in significant accounting estimates and any significant one-off or unusual transactions. |
We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. |
Audit procedures performed by the engagement team included: |
- Enquiry of management and those charged with governance around actual and potential litigation and claims. |
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations. |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. |
- Challenging estimates and judgements made by management in their significant accounting estimates. |
- Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and accuracy of revenue and also to ensure revenue has been recognised in the correct period. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
T Manners & Sons Limited |
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 a Report of the Auditors 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 Auditors |
Chartered Accountants |
3 Kingfisher Court |
Bowesfield Park |
Stockton on Tees |
TS18 3EX |
T Manners & Sons Limited (Registered number: 00143125) |
Statement of Comprehensive |
Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Other operating income | 4 |
28,172,702 | 18,288,458 |
Raw materials and consumables |
4,974,049 | 4,060,937 |
Staff costs | 5 |
Depreciation |
Other operating expenses |
4,543,153 | 3,870,781 |
OPERATING PROFIT |
Interest receivable and similar income |
Gain/loss on revaluation of investment property |
(45,000 |
) |
35,000 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION | 7 |
Tax on profit | 8 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation gain on freehold property |
Income tax relating to other comprehensive income |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
T Manners & Sons Limited (Registered number: 00143125) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Non distributable reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
T Manners & Sons Limited (Registered number: 00143125) |
Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up | Non |
share | Retained | distributable | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
T Manners & Sons Limited (Registered number: 00143125) |
Cash Flow Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Taxation refund |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayment of loans | (62,312 | ) | (63,518 | ) |
Hire Purchase loans advanced | 85,173 | 16,895 |
Hire Purchase capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 27,250 | 738 |
Amounts withdrawn by directors | (156,274 | ) | (46,922 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(295,243 |
) |
533,991 |
Cash and cash equivalents at end of year | 2 | 2,631,730 | ( |
) |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
(Profit)/loss on disposal of fixed assets | ( |
) |
Loss/(gain) on revaluation of fixed assets | 45,000 | (35,000 | ) |
Finance costs | 39,374 | 28,006 |
Finance income | (4,353 | ) | (797 | ) |
491,752 | 263,050 |
Decrease/(increase) in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 2,631,730 | 12,042 |
Bank overdrafts | ( |
) |
2,631,730 | (295,243 | ) |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 12,042 | 533,991 |
Bank overdrafts | ( |
) |
(295,243 | ) | 533,991 |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 12,042 | 2,619,688 | 2,631,730 |
Bank overdrafts | (307,285 | ) | 307,285 | - |
(295,243 | ) | 2,631,730 |
Debt |
Finance leases | (42,154 | ) | (49,001 | ) | (91,155 | ) |
Debts falling due within 1 year | (65,011 | ) | 2,303 | (62,708 | ) |
Debts falling due after 1 year | (400,338 | ) | 60,009 | (340,329 | ) |
(507,503 | ) | 13,311 | (494,192 | ) |
Total | (802,746 | ) | 2,940,284 | 2,137,538 |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
T Manners and Sons Limited is a private company, limited by shares, registered in England. The company's registered office address can be found on the company information page. |
2. | ACCOUNTING POLICIES |
General information and basis of preparing the financial statements |
The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and its principal activities are set out in the Strategic Report on page 2. |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and the Republic of Ireland" (FRS 102) and the Companies Act 2006 The financial statements have been prepared on the going concern basis under the historic cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the company, rounded to the nearest £. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Preparation of consolidated financial statements |
The financial statements contain information about T Manners & Sons Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken the option under Section 405 of the Companies Act 2006 not to prepare consolidated financial statements as the subsidiaries are immaterial. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
When the outcome of a transaction can be estimated reliably, turnover from joinery, small works, mechanical and fire doors division is recognised by reference to the stage of completion at the balance sheet date. Where a contract has only been partially completed at the balance sheet date turnover represents the fair value or the service provided to date based on the stage of completion of the contract activity at the balance sheet date. |
Construction Contracts |
Where the outcome of a construction can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stages of completion. |
Where the outcome cannot be estimated reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Freehold property - not provided |
Plant and machinery - 20% on cost |
Fixtures and fittings - 25% on cost and 33% on cost |
Motor vehicles - 20-33% on cost |
Freehold Property is not depreciated. Although this is not in accordance with FRS 102 section 17.18 the buildings are always kept in a state of good repair and the Directors believe that the fair value is an acceptable valuation. We have not qualified our opinion in this respect as we believe the treatment to be acceptable and the depreciation charge would not be material to the accounts. |
Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Land and buildings are valued at fair value. |
Fixed asset investments are held at cost less impairment. |
Investment property |
Investment properties for which fair value can be measured reliably without undue cost of effort are measured at fair value at each reporting date with changes in fair value recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. |
Work in progress (short term) is valued on the basis of cost to date plus attributable overheads. Amounts recoverable on contracts is valued on the basis of cost plus attributable profit to date - provision being made for losses. |
Development land is valued at cost price plus development work at cost without any addition for overheads. |
Taxation |
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods.It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax represents the future tax consequences of transactions and events reorganised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain expectations. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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. |
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. |
Leasing commitments |
Rentals paid under operating leases are charged to profit and loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The Company operates a contributory pension scheme for Directors and staff. Expenditure is charged to the Profit and Loss Account when contributions are paid. |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Loans and Borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. |
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 amounts 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 of the revision, if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Amounts Recoverable on Contracts |
Amounts recoverable on contracts are stated at cost plus attributable profit to the extent that such profit is |
reasonably certain and after making provision for any foreseeable losses in completing contracts, less payments on account received. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received |
Other Income | 18,903 | - |
Grants received |
37,600 | 22,941 |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Labour | 42 | 52 |
Office and Management | 30 | 24 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Bank loan interest |
Hire purchase |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
(Profit)/loss on disposal of fixed assets | ( |
) |
Auditors remuneration |
Operating lease rentals |
8. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Under / over provision | (37,632 | ) | (47,443 | ) |
Total current tax | ( |
) | ( |
) |
Deferred Tax - Origination and reversal of timing differences |
( |
) |
Tax on profit | ( |
) |
UK corporation tax has been charged at 23.50% . |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Prior year over-provision | (37,632 | ) | (48,888 | ) |
Capital allowances in excess of depreciation | (27,143 | ) | 5,213 |
Deferred tax movement | 44,500 | (2,500 | ) |
Gain/loss on investment property | 10,575 | (6,650 | ) |
Miscellaneous adjustments | 57 | 272 |
Research and development enhanced deduction | (34,888 | ) | - |
Total tax charge/(credit) | 37,925 | (14,943 | ) |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation gain on freehold property | (61,250 | ) | 183,750 |
There is no expiry date on timing differences, unused tax losses or tax credits. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Interim |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Revaluations |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Cost or valuation at 31 December 2023 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2017 | 141,342 | - | - | - | 141,342 |
Valuation in 2023 | 245,000 | - | - | - | 245,000 |
Cost | 510,941 | 117,772 | 38,041 | 596,354 | 1,263,108 |
897,283 | 117,772 | 38,041 | 596,354 | 1,649,450 |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
The freehold property was revalued by Vickers & Barrass Chartered Surveyors on 14 February 2024. The directors believe the year end value will not be materially different to this. The method used for the valuation of freehold property was the investment basis. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The company owns a 100% holding in T. Manners & Sons (Developments) Limited, incorporated in England and Wales. The company is dormant, and it's year end is 31st March. The share capital is £2 and there are no other reserves. |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
Change in fair value | (45,000 | ) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2010 | 70,074 |
Valuation in 2015 | (9,090 | ) |
Valuation in 2017 | (72,278 | ) |
Valuation in 2018 | (30,000 | ) |
Valuation in 2019 | 25,000 |
Valuation in 2020 | 150,000 |
Valuation in 2022 | 35,000 |
Valuation in 2023 | (45,000 | ) |
Cost | 81,294 |
205,000 |
This represents: |
- garages which were previously included in Freehold Property at a cost of £10,095. These were reclassified as investment properties in 2015, the Directors believe this to be a more appropriate treatment. They were independently valued by Vickers & Barrass Chartered Surveyors, on 14 February 2024, using the comparable method. The directors believe the year end value will not be materially different to this. |
- the former trading premises which was demolished and is now a car park. |
13. | STOCKS |
2023 | 2022 |
£ | £ |
Raw materials & consumables |
Work in progress & land held for development |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts recoverable on contract |
Other debtors |
Due from holding company | 439,982 | 453,464 |
Directors' current accounts | 165,249 | 36,225 |
Prepayments |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Hire purchase contracts (see note 18) |
Trade creditors |
Taxation |
Social security and other taxes |
Other creditors |
Accrued expenses |
Payments on account | 1,298,954 | 625,850 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 17) |
Hire purchase contracts (see note 18) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans - less than 1 yr |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | LOANS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans over 5 years by instalments | 90,000 | 140,293 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdraft |
Bank loans |
Hire purchase contracts | 91,155 | 42,154 |
The bank loans and overdraft are secured by a fixed and floating charge over all current and future assets of the company. The hire purchase liabilities are secured on the assets to which they relate. |
The bank loan is repayable over 20 years. Interest is charged at a rate of 1.5% over bank base rate. |
The Coronavirus Business Interruption Loan is repayable over 10 years. Interest is charged at a rate of 3.8% over bank base rate. |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
20. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 133,250 | 27,500 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Charge to Statement of Comprehensive Income during year |
Other comprehensive income | 61,250 |
Balance at 31 December 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 3,000 | 3,000 |
22. | RESERVES |
Non |
Retained | distributable |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 1,425,279 |
Profit for the year | - |
Dividends | ( |
) | - | ( |
) |
Non distributable reserve | - | 245,000 | 245,000 |
Transfer to/from non distributable reserves |
35,000 |
(35,000 |
) |
- |
Other comprehensive income | (61,250 | ) | - | (61,250 | ) |
At 31 December 2023 | 1,771,979 |
Retained earnings |
The profit and loss account represents cumulative profits and losses net of dividends and other adjustments. |
Non distributable reserve |
The non distributable reserve represents the cumulative effect of revaluations of the freehold properties and investment properties. |
23. | PENSION COMMITMENTS |
The company operates a non contributory defined contribution pension scheme for directors and a contributory scheme for staff and directors. Contributions are charged to the Profit and Loss account as they are paid. The charge for the year for directors was £19,505 (2022 £25,739). The charge for the year for salaried staff was £5,396 (2022 £5,425). The charge for the year for onsite staff was £57,209 (2022 £46,452). |
T Manners & Sons Limited (Registered number: 00143125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
24. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
Included in debtors are the following loans to directors: |
At 1 January 2023 | Amount advanced | Amount repaid | At 31 December 2023 |
£ | £ | £ | £ |
Director 1 | 36,225 | 156,274 | (27,250 | ) | 165,249 |
The loan has no fixed repayment terms and interest is charged at an average rate of 2.19%. |
26. | RELATED PARTY DISCLOSURES |
During the year the company performed work for the directors at a value of £109,908 (2022: £493,096). The balance due from directors is included within note 24. |
During the year a company in which a director is also a director of T Manners & Sons Limited provided services to the value of £20,136 (2022: £24,461). There was a balance included within creditors relating to this of £1,578. |
The work was done at normal commercial rates. |
27. | ULTIMATE HOLDING COMPANY |
The immediate and ultimate parent company is Manners Holdings Limited. These financial statements are included in the consolidated financial statements of Manners Holdings Limited. The parent's registered office address is the same as T Manners & Sons Limited as detailed on the Company Information page. |