REGISTERED NUMBER: 12407658 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Taine Holdings Limited |
REGISTERED NUMBER: 12407658 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Taine Holdings Limited |
Taine Holdings Limited (Registered number: 12407658) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Income and Retained Earnings | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Cash Flow Statement | 11 |
Notes to the Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Financial Statements | 13 |
Taine Holdings Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Kintyre House |
70 High Street |
Fareham |
Hampshire |
PO16 7BB |
Taine Holdings Limited (Registered number: 12407658) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
Group key facts & figures (consolidated) |
2023 | 2022 |
£ | £ |
Turnover | 45,739,830 | 33,183,167 |
EBITDA | 4,351,986 | 1,936,296 |
The Group's business |
Taine Holdings Limited (the "Group") is a construction and property group that operates with a range of clients in the residential and commercial sectors. All businesses within the group operate autonomously. |
The majority of the Group's turnover comes from projects within a 100 mile radius of the office in Hampshire for repeat business clients. |
Operating companies |
Blanchard Wells Ltd - Structures and Civil Engineering Contractor |
Blanchard Wells Ltd is one of the south coast's largest and most well established structures and civil engineering contractors. The majority of work is delivered as a subcontractor working for the UK's largest and most respected main contractors and housebuilders, through repeat business. |
2023 | 2022 |
£ | £ |
Turnover | 45,253,947 | 33,750,897 |
EBITDA | 1,021,051 | 296,159 |
Blanchard Wells (Plant Hire) Limited - Plant Hire |
Blanchard Wells (Plant Hire) Ltd provides in house plant hire services to Blanchard Wells Ltd for heavy plant and machinery, small tools, site accommodation and formwork systems. |
2023 | 2022 |
£ | £ |
Turnover | 2,862,820 | 2,539,477 |
EBITDA | 2,417,957 | 1,074,994 |
Civil Engineering Training Centre ("CETC") |
The group continue to have a significant lead in the management of CETC now that the effects of COVID-19 are diminishing. |
Over 50 apprentices have passed through the groundworks apprenticeship scheme and many of which are successfully embedded within the site production teams. |
This focus will sharpen as required by the construction leaders in order to deliver the secured workload. |
The relevance and quality of the training and the behaviours of the young learners is always the main focus. |
Taine Holdings Limited (Registered number: 12407658) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Key business risks are assessed and managed as follows: |
Credit risk |
The level of bad debts have been historically very low but always remain a potential business threat. This risk is managed aggressively within the Group with credit checks being completed regularly for all clients. |
A credit insurance policy is in place, with one of the industry's leading insurers, to underwrite debts in the event of non-payment or failure of one of our clients. |
Project risk |
Tender submissions and pre contract negotiations are always focussed on minimising and managing project risks and any unforeseeable and unmanageable risks will be negotiated out of the contract. The directors have always declined contracts where unquantifiable risk is present. |
The risk of construction errors and Health and Safety issues are managed through clear and effective site management and processes. Sites are all run by trained and experienced Project Managers with weekly support from Contracts Managers. Notwithstanding the complexity and volume of civil engineering works mean major construction quality errors has been identified as the Group's greatest risk. |
Management |
The success of the Group depends upon recruiting, engaging and retaining a skilled and experienced management team to lead the business. The main board is focussed on identifying and building the best possible management team to ensure we build to the highest possible standards. |
The leadership team undergo a monthly business coaching process which is now in its 16th year, to maximise their effectiveness. The process involves careful and regular review of performance, and the setting of key business goals with clear annual, measurable, targets. |
Liquidity risk |
The Group is financed through retained profits with exposure to borrowings on plant and machinery only, for which fixed rates and terms are in place. The business within the Group do not operate bank overdraft facilities. |
The spend on business critical plant, machinery and property is kept in house through the Plant company which reduces exposure to outside companies and keeps plant profits from within the Group. |
Cash flow is closely and regularly monitored by the commercial team to ensure monies are collected in a timely manner. |
The business operates a fundamental principal not to enter into any contracts with payment terms exceeding 35 days and will continue to do so whilst targeting clients and work with the best margins and payment terms possible. |
Accreditations |
The group achieved or retained the following accreditations: |
- Builders Profile |
- Construction Line |
- Safety Schemes in Procurement (SSIP) |
- Concrete Society |
- The Contractors Health and Safety Assessment Scheme (CHAS) |
- Fleet Operator Recognition Scheme (FORS) |
- Construction Skills Certification Scheme (CSCS) |
- ISO 9001: 2015 Quality Management Systems |
- ISO 14001: 2015 Environmental Management Systems |
- ISO 45001: 2018 Occupational Health and Safety Management Systems |
- Safety Management Advisor Services (SMAS) |
Taine Holdings Limited (Registered number: 12407658) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
CORPORATE GOVERNANCE |
Employees |
The welfare and engagement of employees is key to the success of the Group and to ensure the leadership team build a strong and successful business which delivers upon it's values. |
The Group utilises an in house recruitment manager to engage and recruit staff and specialists into the business. Employee satisfaction is worked upon continually by the leadership team on making the Group a great place to work. |
Communications are regular, open and effective and regular family events are run throughout the year to reinforce the 'family feel' that exists within the Group. Support is offered to employees experiencing health, emotional or other life challenges through various different means such as training, counselling or professional advice to ensure they recover and continue to support the Group's activities. |
Training is provided to all employees in support of their current role and development where applicable. Apprentices are employed and trained through the Civil Engineering Training Centre ("CETC") and have personal mentors to support their development. |
Training is delivered to achieve target requirements in terms of Legislative Compliance, Health and Safety, competency in the relevant roles and responsibilities and in supporting personal development. |
Disabled employees |
The Group gives full and proper consideration to job applications received from disabled persons where the job role and requirements can be fulfilled by a disabled person. Should an existing employee become disabled full endeavours will be made to making alternative and suitable work opportunities available and to offer training and development to support the employee. |
Equality and diversity |
The Group provides an environment where the diversity of all its clients, employees and business associates are respected and valued and on employing a diverse workforce free of any discriminatory attitudes or behaviour. |
Health and safety |
The safety and welfare of our workforce is of primary importance and receives the attention and resources it requires and deserves. Training is provided for all employees, appropriate to their role, and modern site facilities and equipment is provided for all sites. Health and safety is monitored and managed by the Group health and safety manager and our workforce consultation is carried out to ensure all suggested improvements are considered and incorporated into our practices where applicable. |
Group systems and processes are accredited to the OHSAS 18001 standard. |
Sustainability |
Working in a sustainable manner is a business focus and the group processes and systems are accredited to the ISO14001 standard to ensure that the future impact of our operations are considered in the planning, procurement, resourcing and construction of the projects we deliver. |
Modern Slavery Act |
The Group believe that modern slavery, human trafficking, servitude and forced labour are unacceptable practices. We are committed to conducting its business with complete integrity and to combatting acts of modern day slavery within the business and its supply chain and acknowledge our responsibility to the Modern Slavery Act 2015 and will ensure transparency within the Group and with suppliers of goods and services to the Group. |
As the Group is privately owned with the main trade being civil engineering, groundworks and concrete frame contracting the vast majority of our subcontractors and suppliers are also UK based, we do not consider that human rights abuses, modern slavery and bribery represent a significant risk to our business. However, we have appropriate procedures in place to provide assurance that our employees and suppliers are working to the high standards we demand. Relevant members of our staff are provided with training to understand any potential risks of and to pass this understanding to our wider supply chain. |
Our approach to combatting modern slavery is communicated to all supply chain partners in order that they have an awareness of this exploitation and are able to report suspected incidences. |
ON BEHALF OF THE BOARD: |
Taine Holdings Limited (Registered number: 12407658) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the year under review were those of structures and civil engineering and investment property rental income. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Alliott Wingham 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 |
Taine Holdings Limited |
Opinion |
We have audited the financial statements of Taine Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
Report of the Independent Auditors to the Members of |
Taine Holdings Limited |
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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the company and the |
industry in which it operates,and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. Our audit procedures were designed at Company and significant component levels to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involved deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, financial reporting legislation, the Companies Act 2006 and UK tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, review of board meeting minutes, enquiries with management, enquiries of external legal advisors and review of correspondence with external legal advisors. |
There are inherent limitations in the audit procedures described above and, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. |
We evaluated 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 management bias in accounting estimates. We addressed the risk of management override of internal controls through testing journals, in particular any entries posted with unusual account combinations or posted by senior management. We evaluated whether there was evidence of bias by the Directors in accounting estimates that represented a risk of material misstatement due to fraud. We challenged assumptions and judgements made by management in their significant accounting estimates. |
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. |
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 |
Kintyre House |
70 High Street |
Fareham |
Hampshire |
PO16 7BB |
Taine Holdings Limited (Registered number: 12407658) |
Consolidated Statement of Income and Retained Earnings |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 3 | 45,739,830 | 33,183,167 |
Cost of sales | 36,820,309 | 26,894,881 |
GROSS PROFIT | 8,919,521 | 6,288,286 |
Administrative expenses | 6,678,260 | 5,489,843 |
2,241,261 | 798,443 |
Other operating income | 35,306 | 22,000 |
OPERATING PROFIT | 6 | 2,276,567 | 820,443 |
Interest receivable and similar income | 359,602 | 36,631 |
2,636,169 | 857,074 |
Gain/loss on revaluation of investment property |
(320,000 |
) |
1,436,965 |
2,316,169 | 2,294,039 |
Interest payable and similar expenses | 8 | 355,024 | 231,750 |
PROFIT BEFORE TAXATION | 1,961,145 | 2,062,289 |
Tax on profit | 9 | 544,304 | 474,829 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year | 11,877,777 | 10,849,578 |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
13,294,618 |
12,437,038 |
Profit attributable to: |
Owners of the parent | 1,416,841 | 1,587,460 |
Taine Holdings Limited (Registered number: 12407658) |
Consolidated Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 6,027,902 | 4,101,964 |
Investments | 12 | - | - |
Investment property | 13 | 11,783,360 | 12,103,360 |
17,811,262 | 16,205,324 |
CURRENT ASSETS |
Stocks | 14 | 1,162,004 | - |
Debtors | 15 | 8,341,445 | 7,531,180 |
Cash at bank | 8,380,673 | 3,788,829 |
17,884,122 | 11,320,009 |
CREDITORS |
Amounts falling due within one year | 16 | 7,780,564 | 5,091,807 |
NET CURRENT ASSETS | 10,103,558 | 6,228,202 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
27,914,820 |
22,433,526 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(6,813,319 |
) |
(6,098,720 |
) |
PROVISIONS FOR LIABILITIES | 20 | (5,132,119 | ) | (1,823,717 | ) |
NET ASSETS | 15,969,382 | 14,511,089 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 100 | 100 |
Capital redemption reserve | 22 | 102 | 102 |
Fair value reserve | 22 | 2,393,110 | 2,633,110 |
Retained earnings | 22 | 13,576,070 | 11,877,777 |
SHAREHOLDERS' FUNDS | 15,969,382 | 14,511,089 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 August 2024 and were signed on its behalf by: |
Mr M A Wells - Director |
Taine Holdings Limited (Registered number: 12407658) |
Company Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,283,678 | 501,097 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Taine Holdings Limited (Registered number: 12407658) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 5,440,272 | 575,446 |
Interest paid | (226,904 | ) | (178,862 | ) |
Interest element of hire purchase payments paid |
(128,120 |
) |
(52,888 |
) |
Taxation (paid)/refunded | 188,082 | (124,791 | ) |
Net cash from operating activities | 5,273,330 | 218,905 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (3,624,237 | ) | (1,694,772 | ) |
Purchase of investment property | - | (1,353,260 | ) |
Sale of tangible fixed assets | 53,010 | 71,499 |
Interest received | 359,602 | 36,631 |
Net cash from investing activities | (3,211,625 | ) | (2,939,902 | ) |
Cash flows from financing activities |
New loans in year | 3,534,014 | 1,104,150 |
Loan repayments in year | (641,407 | ) | (631,809 | ) |
Capital repayments in year | 37,532 | - |
Amount introduced by directors | - | 1,001,998 |
Amount withdrawn by directors | (400,000 | ) | - |
Net cash from financing activities | 2,530,139 | 1,474,339 |
Increase/(decrease) in cash and cash equivalents | 4,591,844 | (1,246,658 | ) |
Cash and cash equivalents at beginning of year |
2 |
3,788,829 |
5,035,487 |
Cash and cash equivalents at end of year | 2 | 8,380,673 | 3,788,829 |
Taine Holdings Limited (Registered number: 12407658) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 1,961,145 | 2,062,289 |
Depreciation charges | 1,626,054 | 1,076,681 |
Loss/(profit) on disposal of fixed assets | 19,234 | (21,133 | ) |
Loss/(gain) on revaluation of fixed assets | 320,000 | (1,436,965 | ) |
Provision movement | 2,807,423 | 38,960 |
Finance costs | 355,024 | 231,750 |
Finance income | (359,602 | ) | (36,631 | ) |
6,729,278 | 1,914,951 |
Increase in stocks | (1,162,004 | ) | - |
Increase in trade and other debtors | (1,773,323 | ) | (1,547,116 | ) |
Increase in trade and other creditors | 1,646,321 | 207,611 |
Cash generated from operations | 5,440,272 | 575,446 |
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 | 8,380,673 | 3,788,829 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 3,788,829 | 5,035,487 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 3,788,829 | 4,591,844 | 8,380,673 |
3,788,829 | 4,591,844 | 8,380,673 |
Debt |
Finance leases | (1,720,862 | ) | (1,566,503 | ) | (3,287,365 | ) |
Debts falling due within 1 year | - | (588,660 | ) | (588,660 | ) |
Debts falling due after 1 year | (5,174,650 | ) | - | (5,174,650 | ) |
(6,895,512 | ) | (2,155,163 | ) | (9,050,675 | ) |
Total | (3,106,683 | ) | 2,436,681 | (670,002 | ) |
Taine Holdings Limited (Registered number: 12407658) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
The Company is a private company limited by shares. The Company was incorporated in England and Wales, registration number 12407658, under the Companies Act 2006, on 16 January 2020. The company's registered office is The Meadows, Forester Road, Soberton, Southampton, SO32 3QG. |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The Financial Statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102') and the Companies Act 2006. |
The Financial Statements have been prepared on the historical cost basis, with the exception of investment property which is measured at fair value through profit and loss. Historical cost is generally based on the fair value of the consideration given in exchange for the goods and services. |
The Group's functional currency is the Pound Sterling (£) being the currency that most accurately reflects the primary economic environment in which the Company operates. these Financial Statements are also presented in Pound Sterling. |
Basis of consolidation |
The Financial Statements consolidate the results of Taine Holdings Limited and its wholly owned subsidiaries on a line by line basis. Intercompany transactions and balances between the companies have been eliminated. No cash flow statement is disclosed for the parent company as permitted by section 1.12 of FRS102. |
Turnover |
Turnover is recognised at the fair value of consideration received or receivable for goods and services provided in the normal course of business and is shown net of VAT and other sales related taxes. The fair value takes into account trade discounts and settlement discounts. On contracts, turnover is recognised by reference to the value of work undertaken and the overall stage of completion. |
Disputed value and Retentions are not recognised until they are paid. |
Turnover from rental properties represents the value of gross rents received or receivable on all properties held in the group. Amounts are accrued and deferred to the period in which they relate. |
Interest Income |
Interest income is recognised when interest is received or made available to draw. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Plant and machinery | - 25% on reducing balance |
Motor vehicles | - 25% on reducing balance |
Fixtures and fittings | - 33% on cost |
The above are stated at historical cost less accumulated depreciation. |
All equipment has been reviewed at the year end to confirm that the depreciation has been applied at a rate which correctly values the assets. |
Freehold property is shown at the most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the profit or loss. Freehold property is valued annually on an open market basis by the directors. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Taine Holdings Limited (Registered number: 12407658) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Work in progress is valued at the lower of cost and net realisable value. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and subsequently measured at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised. |
Basic financial liabilities |
Basic financial liabilities, including trade and other creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised. |
Taine Holdings Limited (Registered number: 12407658) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Provisions |
Provisions (i.e liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of past events, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where the effect of time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate, the unwinding of the discount is recognised as a finance cost in the profit or loss in the period it arises. |
Going concern |
The directors have taken consideration over the ongoing Ukraine conflict and the interest and inflationary rises within the UK. The directors note that the Group is trading adequately and has sufficiently working capital and other finance available to continue trading for a period of not less than 12 months from the date of signing these financial statements. There are no significant uncertainties in their assessment of whether the business is a going concern and therefore have prepared the accounts on a going concern basis. |
Critical accounting estimates and judgements |
These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. |
- Determined whether there are indicators of impairment of tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. |
- Determined the profit on long term contracts. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording revenue and related costs as contract activity progresses. Revenue is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen. |
Key sources of estimation uncertainty |
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing assets lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessment consider issues such as future market conditions, the remaining life of the asset and projected disposable values. |
For revenue recognition and profit on long term contracts, the profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording revenue and related costs as contract activity progresses. Revenue is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer and paid. Full provision is made for losses on contracts in the year in which they are first foreseen. |
3. | TURNOVER |
The majority of turnover and profit before taxation are attributable to construction activities, a small amount of rental income completes the activity of the group. |
The directors believe that there is only one material income stream from Contracting Services which generated £45,739,830 (2022 £33,183,167). Turnover is recognised only on sums paid for work completed during the year. All income is earned in the UK. |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 5,110,110 | 4,558,843 |
Social security costs | 544,631 | 525,595 |
Other pension costs | 174,909 | 79,995 |
5,829,650 | 5,164,433 |
Taine Holdings Limited (Registered number: 12407658) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Direct Staff | 79 | 64 |
Admin Staff | 43 | 42 |
5. | DIRECTORS' EMOLUMENTS |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | 515,146 | 479,944 |
Information regarding the highest paid director is as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Emoluments etc | 220,637 | 199,950 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Other operating leases | 84,500 | 78,315 |
Depreciation - owned assets | 569,968 | 586,994 |
Depreciation - assets on hire purchase contracts | 1,056,087 | 489,687 |
Loss/(profit) on disposal of fixed assets | 19,234 | (21,133 | ) |
7. | AUDITORS' REMUNERATION |
31.12.23 | 31.12.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
22,000 |
22,000 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Mortgage interest | 189,372 | 175,407 |
Hire purchase interest | 165,652 | 56,343 |
355,024 | 231,750 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 1,872 | 18,713 |
Deferred tax | 542,432 | 456,116 |
Tax on profit | 544,304 | 474,829 |
Taine Holdings Limited (Registered number: 12407658) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax | 1,961,145 | 2,062,289 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
490,286 |
391,835 |
Effects of: |
Expenses not deductible for tax purposes | 486,513 | 204,569 |
Income not taxable for tax purposes | (89,271 | ) | (273,023 | ) |
Capital allowances utilised | (853,587 | ) | (394,668 | ) |
Deferred taxation | 510,363 | 546,116 |
Total tax charge | 544,304 | 474,829 |
10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | TANGIBLE FIXED ASSETS |
Group |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 10,700,954 | 69,753 | 10,770,707 |
Additions | 3,565,920 | 58,317 | 3,624,237 |
Disposals | (576,157 | ) | (32,020 | ) | (608,177 | ) |
At 31 December 2023 | 13,690,717 | 96,050 | 13,786,767 |
DEPRECIATION |
At 1 January 2023 | 6,612,607 | 56,136 | 6,668,743 |
Charge for year | 1,616,146 | 9,909 | 1,626,055 |
Eliminated on disposal | (507,194 | ) | (28,739 | ) | (535,933 | ) |
At 31 December 2023 | 7,721,559 | 37,306 | 7,758,865 |
NET BOOK VALUE |
At 31 December 2023 | 5,969,158 | 58,744 | 6,027,902 |
At 31 December 2022 | 4,088,347 | 13,617 | 4,101,964 |
Included within the Plant and Machinery net book value of £6,027,902 is £4,313,532 (2022: £2,284,348) relating to assets held under hire purchase agreements. |
Taine Holdings Limited (Registered number: 12407658) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Subsidiaries | Principal Activity | Holding | No. Shares |
Blanchard Wells (Holdings) Limited | Holding Company | 100% | 2 |
Blanchard Wells Limited | Civil Engineering and Structures | 100% | 5,000 |
Blanchard Wells (Plant Hire) Limited |
Plant Hire |
100% |
2 |
Blanchard Wells (Groundworks Contractors) Limited |
Construction Services |
100% |
1,000 |
Blanchard Wells Civils & Structures Limited |
Civil Engineering and Structures |
100% |
100 |
Southern Concrete Limited | Concrete Frames and Structures | 100% | 5,100 |
Blanchard Wells Properties Limited | Property Investment | 100% | 100 |
Meadows Yard Limited | Business Property Holding Company | 100% | 100 |
Fareham Plant Hire Limited | Dormant | 100% | 2 |
Burnaby SPV Limited | Property Development Business | 100% | 100 |
Rookery Yard Limited | Dormant | 100% | 100 |
100% of the Share Capital of Burnaby SPV Ltd was acquired on 14 September 2023. |
100% of the Share Capital of Rookery Yard Ltd was acquired on 3 November 2023, upon its incorporation. |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2023 | 12,103,360 |
Revaluations | (320,000 | ) |
At 31 December 2023 | 11,783,360 |
NET BOOK VALUE |
At 31 December 2023 | 11,783,360 |
At 31 December 2022 | 12,103,360 |
Taine Holdings Limited (Registered number: 12407658) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
13. | INVESTMENT PROPERTY - continued |
Group |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2015 | 489,500 |
Valuation in 2016 | 461,500 |
Valuation in 2017 | 165,000 |
Valuation in 2018 | 17,234 |
Valuation in 2021 | 940,615 |
Valuation in 2022 | 1,436,965 |
Valuation in 2023 | (320,000 | ) |
Cost | 8,592,546 |
11,783,360 |
Most Investment Properties have been valued at their fair value at 31 December 2022 by Pearsons Estate Agents, who are not connected to the company. Another property has been valued at fair value at 13 September 2022 by Eddisons, who are not connected to the company. The fair value has been determined on an open market basis, by reference to market evidence of transaction prices for similar properties. The fair value has been determined on an open market basis, by reference to market evidence of transaction prices for similar properties. |
14. | STOCKS |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Work-in-progress | 1,162,004 | - |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 3,115,340 | 4,010,225 |
Amounts owed by group undertakings | - | - |
Other debtors | 4,736,309 | 2,936,934 |
Tax | - | 188,082 |
VAT | 489,796 | 395,939 |
8,341,445 | 7,531,180 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Other loans (see note 18) | 588,660 | - |
Hire purchase contracts (see note 19) | 1,648,696 | 796,792 |
Trade creditors | 4,527,332 | 3,067,380 |
Amounts owed to group undertakings | - | - |
Tax | 8,849 | 6,977 |
Social security and other taxes | 236,964 | 115,791 |
Other creditors | 173,169 | 112,103 |
Directors' current accounts | 581,134 | 981,134 | 586,336 | 999,904 |
Accruals and deferred income | 15,760 | 11,630 |
7,780,564 | 5,091,807 |
Taine Holdings Limited (Registered number: 12407658) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 18) | 5,174,650 | 5,174,650 |
Hire purchase contracts (see note 19) | 1,638,669 | 924,070 |
6,813,319 | 6,098,720 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Other loans | 588,660 | - |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Bank loans more 5 yrs non-inst | 5,174,650 | 5,174,650 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Net obligations repayable: |
Within one year | 1,648,696 | 796,792 |
Between one and five years | 1,638,669 | 924,070 |
3,287,365 | 1,720,862 |
Group |
Non-cancellable operating | leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year | 84,500 | 84,500 |
Between one and five years | 332,205 | 338,000 |
In more than five years | 14,438 | 93,143 |
431,143 | 515,643 |
20. | PROVISIONS FOR LIABILITIES |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 1,674,696 | 1,173,716 |
Other provisions | 3,457,423 | 650,001 |
Aggregate amounts | 5,132,119 | 1,823,717 |
Taine Holdings Limited (Registered number: 12407658) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2023 | 1,173,716 | 650,000 |
Provided during year | 500,980 | 2,807,422 |
Balance at 31 December 2023 | 1,674,696 | 3,457,422 |
Risk Provision |
Other Provision |
Total |
£ | £ | £ |
At 1 January 2023 | 650,000 | - | 650,000 |
Additional Provision in year | 500,000 | 2,307,422 | 2,807,422 |
Utilisation in year | - | - | - |
At 31 December 2023 | 1,150,000 | 2,307,422 | 3,457,422 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | 1 | 100 | 100 |
22. | RESERVES |
Group |
Capital | Fair |
Retained | redemption | value |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 11,877,777 | 102 | 2,633,110 | 14,510,989 |
Profit for the year | 1,416,841 | 1,416,841 |
2023 Adjustment | 281,452 | - | (240,000 | ) | 41,452 |
At 31 December 2023 | 13,576,070 | 102 | 2,393,110 | 15,969,282 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 December 2023 and 31 December 2022: |
31.12.23 | 31.12.22 |
£ | £ |
M A Wells |
Balance outstanding at start of year | (981,134 | ) | 20,864 |
Amounts advanced | 400,000 | (1,998 | ) |
Amounts repaid | - | (1,000,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (581,134 | ) | (981,134 | ) |
Taine Holdings Limited (Registered number: 12407658) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year the group rented a residential property to a related party, total rent equalled £6,060 (2022 £5,700). There were no amounts outstanding at the year end. |
During the year a Director became a shareholder of a group of companies which at the balance sheet date £3,721,751 is due to Taine Holdings Ltd. The interest receivable on the balance within the year totals £267,473. |
The group rents property from the M A Wells Self Invested Pension Scheme for £62,000 (2022 £62,000) of which M A Wells entitlement is £31,000 (2022 £31,000). |
Throughout the year, entities controlled by key management personnel invoiced the group £310,000 plus VAT (2022 £300,000) for services provided. At the year end date, there was an amount due of £12,000 (2022: NIL) |
25. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr M A Wells. |