Company Registration No. 01960319 (England and Wales)
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
31 December 2023
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
COMPANY INFORMATION
Directors
AE Blackwell
Mrs AN Blackwell
Secretary
Mrs AN Blackwell
Company number
01960319
Registered office
Woodcot Place
White Ash Green
Halstead
Essex
CO9 1PB
Auditor
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

The principal activity of the company continued to be that of hirers of earthmoving equipment and the associated personnel.

 

Turnover has decreased from the previous year due to the finalisation of the major contract in relation at the new incinerator at Bradwell on behalf of the client Indaver. The company continues to trade well with a number of ongoing contracts in place.

 

The company continues to renew it's fleet of vehicles and plant. Numerous additions were acquired this year in accordance with contract demands. This was heavily influenced on availability of plant from usual suppliers who are still finding it difficult to keep up with industry requirements following the bounce back of the COVID-19 pandemic. Since the year end the company has continued to invest in new plant.

 

Due to continued credit control, customers have been paying within credit terms this year and trade creditors continue to be paid in a timely manner, thus maintaining the company's good reputation within the industry.

Principal risks and uncertainties

The directors are continually evaluating the extent to which external factors may affect the company’s operations in both the short and long term.  Measures are in place to mitigate any potential impact on the business, and the directors are confident as to the long term viability of the business.

 

The directors regularly review the risks associated with the business and take appropriate action to mitigate those within their control. All laws and regulations are strictly adhered to with frequent visits from regulatory bodies.

 

The company recognises that its main financial risk accrues from credit terms extended to its customers. It is the company policy to regularly assess the credit risk profile of each of its current and prospective customers and to factor in this information into the future dealings with them.

 

At the balance sheet date there is no significant concentration of credit risk. The values shown in the balance sheet represent the maximum credit risk exposure.

The company also monitors the financial strength, workload and quality of key suppliers and contractors to manage their capacity to deliver products and services to the required date and quality.

The objective of this approach is to provide a trading environment such that our customers can have confidence in our ability to deliver their projects with the minimum risk.

 

The company manages cash and borrowing requirements in order to maximise interest income and minimise interest expense whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Key performance indicators

The key performance indicators are summarised below:

2023
2022
Turnover
£17.7m
£23.5m
Gross profit percentage
20.5%
18.8%
Liquidity
6.42
4.27
Sales credit days
36
39
Purchase credit days
79
94
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other information and explanations

The results for the year and the financial position at the year end were considered satisfactory by the directors.    

By order of the board

Mrs AN Blackwell
Secretary
26 September 2024
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Directors

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

AE Blackwell
Mrs AN Blackwell
Results and dividends

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

Ordinary dividends were paid amounting to £292,111. The directors do not recommend payment of a final dividend.

Financial instruments
Financial instruments and risks

The appropriate disclosures surrounding principal financial instruments and risk have been made in the strategic report on page 1.

Future developments

There are no future development plans which require disclosure at the time of signing the report.

Auditor

In accordance with the company's articles, a resolution proposing that Rickard Luckin Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

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

 

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

 

 

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

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk disclosures, future developments and subsequent events.

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

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

By order of the board
Mrs AN Blackwell
Secretary
26 September 2024
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
- 5 -
Opinion

We have audited the financial statements of Tom Blackwell (Contractors & Plant Hire) Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
- 6 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Capability of the audit in detecting irregularity, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the company’s regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
- 7 -

Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; the Construction (Design and Management) Regulations 2015 (CDM 2015); data protection legislation; anti-bribery and anti-corruption legislation.

 

Furthermore, Tom Blackwell (Contractors & Plant Hire) Ltd acts as a principal contractor and therefore will complete brownfield site remediation work in relation to some contracts. There are further regulations which must be adhered to in relation to such contracts which include; the Environmental Protection Act 1990; the Town and Country planning Act 1990; the Planning Act 2008; the Environmental Permitting (England and Wales) Regulations 2016; the Environmental Damage (Prevention and Remediation) Regulations 2015; the Water Resources Act 1991; and The Control of Asbestos Regulations 2012. In order to ensure these regulations are met the company will appoint a specialist remediation sub contractor and associated supporting geo-environmental consultant for relevant projects.

ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Throughout our audit work we have considered the entities internal control procedures, and the potential for fraudulent activity going undetected. We have concluded that the company's internal control procedures are adequate to mitigate the risk of material misstatement,

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
- 8 -

Use of our report

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

Paul Forster (Senior Statutory Auditor)
for and on behalf of Rickard Luckin Limited
26 September 2024
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
17,678,581
23,502,158
Cost of sales
(14,133,848)
(19,088,910)
Gross profit
3,544,733
4,413,248
Administrative expenses
(1,052,880)
(879,705)
Other operating income
12,000
12,000
Operating profit
4
2,503,853
3,545,543
Interest receivable and similar income
86,738
6,541
Interest payable and similar expenses
8
(14,556)
(15,231)
Profit before taxation
2,576,035
3,536,853
Tax on profit
9
(674,809)
(631,664)
Profit for the financial year
1,901,226
2,905,189

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

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
5,315,005
6,061,161
Current assets
Debtors
11
3,779,982
2,617,121
Cash at bank and in hand
9,259,116
8,785,848
13,039,098
11,402,969
Creditors: amounts falling due within one year
12
(2,034,618)
(2,682,638)
Net current assets
11,004,480
8,720,331
Total assets less current liabilities
16,319,485
14,781,492
Creditors: amounts falling due after more than one year
13
-
0
(203,622)
Provisions for liabilities
Deferred tax liability
15
1,080,000
947,500
(1,080,000)
(947,500)
Net assets
15,239,485
13,630,370
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
15,239,385
13,630,270
Total equity
15,239,485
13,630,370

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

The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
AE Blackwell
Director
Company registration number 01960319 (England and Wales)
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
11,018,434
11,018,534
Year ended 31 December 2022:
Profit and total comprehensive income
-
2,905,189
2,905,189
Dividends
10
-
(293,353)
(293,353)
Balance at 31 December 2022
100
13,630,270
13,630,370
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,901,226
1,901,226
Dividends
10
-
(292,111)
(292,111)
Balance at 31 December 2023
100
15,239,385
15,239,485
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
1,666,042
7,475,763
Interest paid
(14,556)
(15,231)
Income taxes paid
(424,013)
(196,902)
Net cash inflow from operating activities
1,227,473
7,263,630
Investing activities
Purchase of tangible fixed assets
(1,136,684)
(2,797,940)
Proceeds from disposal of tangible fixed assets
891,542
63,500
Interest received
86,738
6,541
Net cash used in investing activities
(158,404)
(2,727,899)
Financing activities
Payment of finance leases obligations
(303,690)
(303,612)
Dividends paid
(292,111)
(293,353)
Net cash used in financing activities
(595,801)
(596,965)
Net increase in cash and cash equivalents
473,268
3,938,766
Cash and cash equivalents at beginning of year
8,785,848
4,847,082
Cash and cash equivalents at end of year
9,259,116
8,785,848
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Tom Blackwell (Contractors & Plant Hire) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Woodcot Place, White Ash Green, Halstead, Essex, CO9 1PB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of earth moving services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Tangible fixed assets

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

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

Land and buildings Leasehold
Not depreciated
Plant and machinery
25% Reducing balance
Fixtures, fittings & equipment
15% Reducing balance
Motor vehicles
25% Reducing balance

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

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash and cash equivalents

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

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. 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 liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

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

1.8
Equity instruments

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

1.9
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

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

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.13
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

The deprecation expense is the recognition of the decline in the value of the asset and allocation of the cost of the asset over the periods in which the asset will be used. Judgments are made on the estimated useful life of the assets which are regularly reviewed to reflect the changing environment.

Accrued income

The accrued income reflects a provision for work done to the balance sheet date. This is calculated from knowledge of the progress on contracts and stage of completion.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Income from sale of services
781,889
1,467,564
Income recognised from undertaking construction contracts
16,896,692
22,034,594
17,678,581
23,502,158
2023
2022
£
£
Other revenue
Interest income
86,738
6,541

All turnover was derived in the UK.

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
16,800
11,500
Depreciation of owned tangible fixed assets
1,449,605
1,201,950
Depreciation of tangible fixed assets held under finance leases
191,684
255,578
Profit on disposal of tangible fixed assets
(649,991)
(52,025)
5
Employees

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

2023
2022
Number
Number
Directors
2
2
Administration
2
2
Cost of sales
37
36
Total
41
40

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,298,422
2,220,085
Social security costs
240,308
244,694
Pension costs
53,223
54,575
2,591,953
2,519,354
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
6
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
38,230
15,284,281
198,447
382,637
15,903,595
Additions
-
0
1,061,000
-
0
75,684
1,136,684
Disposals
-
0
(2,863,162)
-
0
(11,000)
(2,874,162)
At 31 December 2023
38,230
13,482,119
198,447
447,321
14,166,117
Depreciation and impairment
At 1 January 2023
-
0
9,446,861
141,668
253,905
9,842,434
Depreciation charged in the year
-
0
1,589,634
8,517
43,138
1,641,289
Eliminated in respect of disposals
-
0
(2,622,751)
-
0
(9,860)
(2,632,611)
At 31 December 2023
-
0
8,413,744
150,185
287,183
8,851,112
Carrying amount
At 31 December 2023
38,230
5,068,375
48,262
160,138
5,315,005
At 31 December 2022
38,230
5,837,420
56,779
128,732
6,061,161

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
575,050
766,734
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
93,840
118,647
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
14,556
14,041
Other interest
-
0
1,190
14,556
15,231
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
534,069
288,934
Adjustments in respect of prior periods
8,140
(270)
Total current tax
542,209
288,664
Deferred tax
Origination and reversal of timing differences
132,600
343,000
Total tax charge
674,809
631,664
10
Dividends
2023
2022
£
£
Interim paid
292,111
293,353
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,750,544
1,815,561
Other debtors
159,357
36,883
Prepayments and accrued income
1,870,081
764,677
3,779,982
2,617,121
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
14
203,620
303,688
Trade creditors
746,370
1,438,469
Corporation tax
282,230
163,934
Other taxation and social security
79,634
66,342
Other creditors
569,929
454,580
Accruals and deferred income
152,835
255,625
2,034,618
2,682,638
TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
14
-
0
203,622
14
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
203,620
303,688
In two to five years
-
0
203,622
203,620
507,310

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Assets held under finance leases are secured over the assets to which they relate.

15
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,080,000
947,500
2023
Movements in the year:
£
Liability at 1 January 2023
947,500
Charge to profit or loss
132,500
Liability at 31 December 2023
1,080,000

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
53,223
54,575

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

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 1p each
10,000
10,000
100
100
18
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
577,341
563,899

During the year the company made purchases of £524,909 (2022: £603,541) from a connected company by virtue of the directors and shareholders of the company also being directors and shareholders of that company. The company also provide management services to the same connected company for which £12,000 (2022: £12,000) was received.

 

At the balance sheet date the amount due to connected companies was £563,547 (2022: £443,398).

 

At the balance sheet date the amount due to a director and shareholder of the company, was £1,184 (2022: £1,184).

 

The company occupied premises owned by a director and shareholder, for which £48,000 (2022: £48,000) has been charged in the year. This is a rolling agreement with no commitment in place.

 

During the year dividends of £292,111 (2022: £293,353) were paid to the directors in proportion of their shareholdings.

TOM BLACKWELL (CONTRACTORS & PLANT HIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
19
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,901,226
2,905,189
Adjustments for:
Taxation charged
674,809
631,664
Finance costs
14,556
15,231
Investment income
(86,738)
(6,541)
Gain on disposal of tangible fixed assets
(649,991)
(52,025)
Depreciation and impairment of tangible fixed assets
1,641,289
1,457,528
Movements in working capital:
(Increase)/decrease in debtors
(1,162,861)
2,777,576
Decrease in creditors
(666,248)
(252,859)
Cash generated from operations
1,666,042
7,475,763
20
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
8,785,848
473,268
9,259,116
Obligations under finance leases
(507,310)
303,690
(203,620)
8,278,538
776,958
9,055,496
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