REGISTERED NUMBER: 02464490 (England and Wales) |
Group Strategic Report, Report of the Director and |
Audited Consolidated Financial Statements |
for the Year Ended 31 January 2024 |
for |
NPH Group Limited |
REGISTERED NUMBER: 02464490 (England and Wales) |
Group Strategic Report, Report of the Director and |
Audited Consolidated Financial Statements |
for the Year Ended 31 January 2024 |
for |
NPH Group Limited |
NPH Group Limited (Registered number: 02464490) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 January 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
NPH Group Limited |
Company Information |
for the Year Ended 31 January 2024 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Eldo House |
Kempson Way |
Suffolk Business Park |
Bury St Edmunds |
Suffolk |
IP32 7AR |
NPH Group Limited (Registered number: 02464490) |
Group Strategic Report |
for the Year Ended 31 January 2024 |
The director presents his strategic report of the company and the group for the year ended 31 January 2024. |
REVIEW OF BUSINESS |
This year has seen another strong performance from the company, achieving record annual Hire and Total turnover. There continues to be significant investment in new plant equipment with the continuing aim to both grow the portfolio and reduce the age profile of the fleet available for hire. |
Several large purchases of equipment, including investment in products to broaden the portfolio range have been made, along with an ongoing disposal programme of some older fleet assets. |
A positive cash flow has enabled the business to further reduce reliance on third party funding for fleet investment. |
Ongoing investment in the Depot buildings continued in the year, to both improve standards and to reduce the company's carbon footprint. |
Maintaining staffing levels in line with revenue growth have been challenging across the Depot network in the year although staff turnover has stabilised from the previous year. |
Costs across the business continue to rise and the market remains challenging with competitors continuing to cut rates to secure revenue. |
The company operated comfortably within the overdraft facility throughout the year. The company also has a loan facility which was reviewed in May 2018 and does not expire until April 2029. |
The balance sheet has continued to strengthen, with net assets now standing at £7,766,054 (2023: £7,135,475). |
Key performance indicators |
The key performance indicators for Newmarket Plant Hire Ltd are net profit margin and gross profit margin. The company have chosen these to represent the company's performance and position as increasing turnover has been a key objective for the company in recent years and a significant amount of investment has gone into reducing the age of the fleet to achieve this. Net profit is a key indicator for the company as it gives a more holistic view of how the company is performing and allows them to review their costs for maximum efficiencies. |
The results for the year, as shown on the statement of comprehensive income, shows a gross profit margin of 37.30% (2023: 36.38%) and net profit margin of 13.07% (2023: 14.88%). |
Continued investment in the plant fleet and prudent cost control management helped the company in achieving promising turnover and net profit results, despite the higher administrative costs faced by businesses in the industry alike. |
ON BEHALF OF THE BOARD: |
NPH Group Limited (Registered number: 02464490) |
Report of the Director |
for the Year Ended 31 January 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 31 January 2024. |
DIVIDENDS |
An interim dividend of £2 per share on the Ordinary 'A' Shares £1 shares was paid on 6 April 2023. The director recommends that no final dividend be paid on these shares. |
No interim dividend was paid on the Ordinary 'B' Shares £1 shares. The director recommends that no final dividend be paid on these shares. |
The total distribution of dividends for the year ended 31 January 2024 will be £ 100,000 . |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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. |
NPH Group Limited (Registered number: 02464490) |
Report of the Director |
for the Year Ended 31 January 2024 |
AUDITORS |
The auditors, Knights Lowe 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 |
NPH Group Limited |
Opinion |
We have audited the financial statements of NPH Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, 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 January 2024 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
NPH Group Limited |
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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
NPH Group Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the companies operating sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation ; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; |
- investigated the rationale behind significant or unusual transactions; and |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; |
- reviewing correspondence with HMRC and the company's legal advisors; |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
NPH Group Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Eldo House |
Kempson Way |
Suffolk Business Park |
Bury St Edmunds |
Suffolk |
IP32 7AR |
NPH Group Limited (Registered number: 02464490) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 31 January 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 7,417,752 | 6,982,555 |
Cost of sales | 4,650,725 | 4,442,644 |
GROSS PROFIT | 2,767,027 | 2,539,911 |
Administrative expenses | 1,645,341 | 1,372,322 |
OPERATING PROFIT | 6 | 1,121,686 | 1,167,589 |
Interest receivable and similar income | 7,865 | 564 |
1,129,551 | 1,168,153 |
Interest payable and similar expenses | 8 | 159,816 | 128,845 |
PROFIT BEFORE TAXATION | 969,735 | 1,039,308 |
Tax on profit | 9 | 239,256 | 237,661 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
730,479 |
801,647 |
Profit attributable to: |
Owners of the parent | 730,479 | 801,647 |
Total comprehensive income attributable to: |
Owners of the parent | 730,479 | 801,647 |
NPH Group Limited (Registered number: 02464490) |
Consolidated Balance Sheet |
31 January 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | - | - |
Tangible assets | 13 | 9,788,715 | 9,696,558 |
Investments | 14 | - | - |
9,788,715 | 9,696,558 |
CURRENT ASSETS |
Stocks | 15 | 149,469 | 141,982 |
Debtors | 16 | 887,105 | 863,051 |
Cash at bank and in hand | 856,415 | 640,352 |
1,892,989 | 1,645,385 |
CREDITORS |
Amounts falling due within one year | 17 | 1,785,032 | 2,025,103 |
NET CURRENT ASSETS/(LIABILITIES) | 107,957 | (379,718 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | 9,896,672 | 9,316,840 |
CREDITORS |
Amounts falling due after more than one year |
18 |
(623,708 |
) |
(826,792 |
) |
PROVISIONS FOR LIABILITIES | 22 | (1,506,910 | ) | (1,354,473 | ) |
NET ASSETS | 7,766,054 | 7,135,575 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 50,100 | 50,100 |
Retained earnings | 24 | 7,715,954 | 7,085,475 |
SHAREHOLDERS' FUNDS | 7,766,054 | 7,135,575 |
The financial statements were approved by the director and authorised for issue on 29 October 2024 and were signed by: |
C N Jarvis - Director |
NPH Group Limited (Registered number: 02464490) |
Company Balance Sheet |
31 January 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 16 |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Retained earnings | 24 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 100,000 | 100,000 |
The financial statements were approved by the director and authorised for issue on |
NPH Group Limited (Registered number: 02464490) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 January 2024 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1 February 2022 | 50,100 | 6,383,828 | 6,433,928 | - | 6,433,928 |
Changes in equity |
Dividends | - | (100,000 | ) | (100,000 | ) | - | (100,000 | ) |
Total comprehensive income | - | 801,647 | 801,647 | - | 801,647 |
Balance at 31 January 2023 | 50,100 | 7,085,475 | 7,135,575 | - | 7,135,575 |
Changes in equity |
Dividends | - | (100,000 | ) | (100,000 | ) | - | (100,000 | ) |
Total comprehensive income | - | 730,479 | 730,479 | - | 730,479 |
Balance at 31 January 2024 | 50,100 | 7,715,954 | 7,766,054 | - | 7,766,054 |
NPH Group Limited (Registered number: 02464490) |
Company Statement of Changes in Equity |
for the Year Ended 31 January 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 February 2022 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2023 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2024 | ( |
) |
NPH Group Limited (Registered number: 02464490) |
Consolidated Cash Flow Statement |
for the Year Ended 31 January 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,401,533 | 2,236,046 |
Interest paid | (45 | ) | (455 | ) |
Interest element of hire purchase payments paid |
(104,429 |
) |
(80,301 |
) |
Finance costs paid | (55,342 | ) | (48,089 | ) |
Tax paid | (71,892 | ) | (83,182 | ) |
Net cash from operating activities | 2,169,825 | 2,024,019 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,819,126 | ) | (828,576 | ) |
Sale of tangible fixed assets | 354,651 | 392,582 |
Interest received | 7,865 | 564 |
Net cash from investing activities | (1,456,610 | ) | (435,430 | ) |
Cash flows from financing activities |
Capital repayments in year | (1,523,793 | ) | (1,642,321 | ) |
Amount introduced by directors | - | (1,008 | ) |
Amount withdrawn by directors | (44,684 | ) | (2,269 | ) |
New hire purchase loans advanced | 1,171,325 | - |
Equity dividends paid | (100,000 | ) | (100,000 | ) |
Net cash from financing activities | (497,152 | ) | (1,745,598 | ) |
Increase/(decrease) in cash and cash equivalents | 216,063 | (157,009 | ) |
Cash and cash equivalents at beginning of year |
2 |
640,352 |
797,361 |
Cash and cash equivalents at end of year | 2 | 856,415 | 640,352 |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 January 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 969,735 | 1,039,308 |
Depreciation charges | 1,596,218 | 1,487,216 |
Profit on disposal of fixed assets | (223,902 | ) | (236,583 | ) |
Finance costs | 159,816 | 128,845 |
Finance income | (7,865 | ) | (564 | ) |
2,494,002 | 2,418,222 |
Increase in stocks | (7,487 | ) | (7,654 | ) |
Increase in trade and other debtors | (24,054 | ) | (115,856 | ) |
Decrease in trade and other creditors | (60,928 | ) | (58,666 | ) |
Cash generated from operations | 2,401,533 | 2,236,046 |
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 January 2024 |
31.1.24 | 1.2.23 |
£ | £ |
Cash and cash equivalents | 856,415 | 640,352 |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 640,352 | 797,361 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.2.23 | Cash flow | At 31.1.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 640,352 | 216,063 | 856,415 |
640,352 | 216,063 | 856,415 |
Debt |
Finance leases | (2,005,668 | ) | 340,398 | (1,665,270 | ) |
Debts falling due within 1 year | (12,072 | ) | 12,072 | - |
(2,017,740 | ) | 352,470 | (1,665,270 | ) |
Total | (1,377,388 | ) | 568,533 | (808,855 | ) |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 January 2024 |
1. | STATUTORY INFORMATION |
NPH Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The Group and Company have adopted Amendments to FRS 102 - Triennial Review 2017 in these financial statements.This introduced an accounting policy option that allows an entity whose investment property is rented to another group entity to measure this property at cost less accumulated depreciation and impairment, rather than at fair value through profit or loss as previously required. As the property was purchased during the 2019 financial year there is no restatement required to the 2023 figures. |
The presentation currency of the financial statements is the Pound Sterling (£). |
Basis of consolidation |
The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 January each year. |
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
Related party exemption |
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. |
Turnover |
Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are collected by the customer or are physically delivered. Turnover from the hire of equipment represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a hire contract extends past the balance sheet date, turnover represents the fair value of the service provided to date based on the length of hire and the estimated fuel and administrative charges. Where payments are received from customers in advance of hire services provided, the amounts are recorded as deferred income and included as part of creditors due within one year. |
Goodwill |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
3. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. |
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 |
Financial assets and liabilities |
All financial assets and liabilities are initially measured at transaction price (including transaction costs). If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Financial assets and liabilities are only offset in the statement of financial position when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. |
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method: |
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or negative fixed rate and a positive variable rate. |
(b) The contract may provide for repayments of the principal or return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged. |
(c) The contract may provide for a determinable variation of return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a)). |
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods. |
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law. |
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c). |
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. |
Other debt instruments not meeting these conditions are measured at fair value through profit and loss. |
Financial assets are derecognised when, and only when, (a) the contractual rights to the cash flows from the financial asset expire or are settled, (b) the company transfers to another part substantially all of the risks and rewards of ownership of the financial asset, or (c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. |
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
3. | ACCOUNTING POLICIES - continued |
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. |
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. |
For defined contribution schemes the amount charged to the profit and loss account in respect of pension costs and other retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and actually paid are shown as either accruals or prepayments in the balance sheet. |
Going concern |
The Group's business activities, together with factors likely to affect its future development, performance and position are set out in the strategic report. |
The Group meets its day to day working capital requirements through a loan and overdraft facility. The loan was reviewed on 25th May 2018 and is due to expire on 3rd April 2029. The Group's forecasts show that the Group should be able to operate within the level of its current facility. |
The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
3. | ACCOUNTING POLICIES - continued |
Impairment of assets |
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below. |
Non-financial assets |
An asset is impaired where there is objective evidence that, as a result of one of more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. |
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis. |
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is first applied to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU. |
Financial assets |
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows,, discounted at the financial asset's original effective interest rate. |
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date. |
Where indicators exist for a decrease in the impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
4. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. |
Critical judgements in applying the company's accounting policies |
The following are the critical judgements, including those involving estimations, that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
Depreciation of tangible fixed assets |
Tangible fixed assets are recognised at cost and depreciated over the basis appropriate to charge to the profit and loss account the economic consumption of those assets during the accounting period. The charge is calculated as described below and is based on the directors' knowledge of the reduction in the residual value of trading assets on average over the investment cycle of each class of asset. The rates of depreciation are kept under review such that assets are written down to residual value at the end of their economic lives. |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,027,143 | 1,878,644 |
Social security costs | 223,498 | 218,968 |
Other pension costs | 148,969 | 44,045 |
2,399,610 | 2,141,657 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 1 | 1 |
Employees | 56 | 56 |
2024 | 2023 |
£ | £ |
Director's remuneration | 86,883 | 84,419 |
Director's pension contributions to money purchase schemes | 102,314 | 2,314 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 915,548 | 841,237 |
Depreciation - assets on hire purchase contracts | 680,672 | 645,979 |
Profit on disposal of fixed assets | (223,902 | ) | (236,583 | ) |
7. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
13,200 |
13,000 |
Other non- audit services | 6,280 | 3,450 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 45 | 455 |
Hire purchase interest | 104,429 | 80,301 |
Bank charges | 55,342 | 48,089 |
159,816 | 128,845 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 86,819 | 71,892 |
Deferred tax | 152,437 | 165,769 |
Tax on profit | 239,256 | 237,661 |
UK corporation tax has been charged at 24.03 % (2023 - 19 %). |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
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: |
2024 | 2023 |
£ | £ |
Profit before tax | 969,735 | 1,039,308 |
Profit multiplied by the standard rate of corporation tax in the UK of 24.030 % (2023 - 19 %) |
233,027 |
197,469 |
Effects of: |
Expenses not deductible for tax purposes | 1,872 | 1,523 |
Capital allowances in excess of depreciation | (151,823 | ) | (128,817 | ) |
Deferred tax movement | 152,437 | 165,769 |
Capital gains tax | 3,743 | 1,717 |
Total tax charge | 239,256 | 237,661 |
10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary 'A' Shares shares of £1 each |
Interim | 100,000 | 100,000 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 | 334,145 |
AMORTISATION |
At 1 February 2023 |
and 31 January 2024 | 334,145 |
NET BOOK VALUE |
At 31 January 2024 | - |
At 31 January 2023 | - |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
12. | INTANGIBLE FIXED ASSETS - continued |
Group |
Newmarket Plant Hire Limited acquired Sarbir Plant Hire Limited in 2001. The carrying amount as at 31 January 2024 was £nil (2023: £nil) and is at the end of the estimated useful life. |
13. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 February 2023 | 1,034,245 | 170,000 | 17,971,895 |
Additions | - | - | 1,342,652 |
Disposals | - | - | (589,232 | ) |
At 31 January 2024 | 1,034,245 | 170,000 | 18,725,315 |
DEPRECIATION |
At 1 February 2023 | 95,850 | - | 9,747,224 |
Charge for year | 6,648 | - | 1,376,106 |
Eliminated on disposal | - | - | (462,482 | ) |
At 31 January 2024 | 102,498 | - | 10,660,848 |
NET BOOK VALUE |
At 31 January 2024 | 931,747 | 170,000 | 8,064,467 |
At 31 January 2023 | 938,395 | 170,000 | 8,224,671 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 February 2023 | 176,268 | 1,204,742 | 20,557,150 |
Additions | 280 | 476,194 | 1,819,126 |
Disposals | - | (72,094 | ) | (661,326 | ) |
At 31 January 2024 | 176,548 | 1,608,842 | 21,714,950 |
DEPRECIATION |
At 1 February 2023 | 174,629 | 842,889 | 10,860,592 |
Charge for year | 1,048 | 212,418 | 1,596,220 |
Eliminated on disposal | - | (68,095 | ) | (530,577 | ) |
At 31 January 2024 | 175,677 | 987,212 | 11,926,235 |
NET BOOK VALUE |
At 31 January 2024 | 871 | 621,630 | 9,788,715 |
At 31 January 2023 | 1,639 | 361,853 | 9,696,558 |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 February 2023 | 4,006,867 | 440,168 | 4,447,035 |
Additions | 910,115 | 266,154 | 1,176,269 |
Disposals | (8,250 | ) | (19,998 | ) | (28,248 | ) |
Transfer to ownership | (1,664,742 | ) | (292,378 | ) | (1,957,120 | ) |
At 31 January 2024 | 3,243,990 | 393,946 | 3,637,936 |
DEPRECIATION |
At 1 February 2023 | 992,878 | 275,448 | 1,268,326 |
Charge for year | 559,577 | 121,095 | 680,672 |
Eliminated on disposal | (619 | ) | (15,998 | ) | (16,617 | ) |
Transfer to ownership | (753,231 | ) | (198,967 | ) | (952,198 | ) |
At 31 January 2024 | 798,605 | 181,578 | 980,183 |
NET BOOK VALUE |
At 31 January 2024 | 2,445,385 | 212,368 | 2,657,753 |
At 31 January 2023 | 3,013,989 | 164,720 | 3,178,709 |
Company |
Long |
leasehold |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Depot Road, Newmarket, Suffolk CB8 0AL |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Sarbir Plant Hire Limited |
Registered office: Depot Road, Newmarket, Suffolk CB8 0AL |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
15. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 149,469 | 141,982 |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 788,623 | 819,532 |
Other debtors | 100 | 100 |
Prepayments | 98,382 | 43,419 |
887,105 | 863,051 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Other loans (see note 19) | - | 12,072 |
Hire purchase contracts (see note 20) | 1,041,562 | 1,178,876 |
Trade creditors | 260,819 | 310,790 |
Amounts owed to group undertakings | - | - |
Corporation tax | 86,819 | 71,892 |
Social security and other taxes | 54,452 | 47,487 |
VAT | 166,619 | 191,104 | - | - |
Other creditors | 10,125 | 19,942 |
Directors' current accounts | 30,941 | 75,625 | - | - |
Accruals | 133,695 | 117,315 |
1,785,032 | 2,025,103 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 20) | 623,708 | 826,792 |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Other loans | - | 12,072 |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 1,041,562 | 1,178,876 |
Between one and five years | 623,708 | 826,792 |
1,665,270 | 2,005,668 |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 101,083 | 154,793 |
Between one and five years | 407,530 | 331,531 |
In more than five years | 79,524 | 157,982 |
588,137 | 644,306 |
21. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Other loans | - | 12,072 |
Hire purchase contracts | 1,665,270 | 2,005,668 |
1,665,270 | 2,017,740 |
Hire purchase liabilities are secured on the assets financed. |
A loan from the David Jarvis (Construction) Limited Executive Pension Scheme has been secured by way of a mortgage of chattels over certain assets of plant and machinery, repaid in 2024. |
22. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 1,506,910 | 1,354,473 |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
22. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 February 2023 | 1,354,473 |
Provided during year | 152,437 |
Balance at 31 January 2024 | 1,506,910 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary 'A' Shares | £1 | 50,000 | 50,000 |
Ordinary 'B' Shares | £1 | 100 | 100 |
50,100 | 50,100 |
24. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 February 2023 | 7,085,475 |
Profit for the year | 730,479 |
Dividends | (100,000 | ) |
At 31 January 2024 | 7,715,954 |
Company |
Retained |
earnings |
£ |
At 1 February 2023 | ( |
) |
Profit for the year |
Dividends | ( |
) |
At 31 January 2024 | ( |
) |
25. | PENSION COMMITMENTS |
The company operates a defined contribution retirement benefit scheme for all qualifying employees. The total expense charged to the profit or loss in the year ended 31 January 2024 was £148,969 (2023: £44,045). |
NPH Group Limited (Registered number: 02464490) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
26. | CAPITAL COMMITMENTS |
2024 | 2023 |
£ | £ |
Contracted but not provided for in the |
financial statements | 115,963 | - |
27. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
2024 | 2023 |
£ | £ |
Sales | - | 228 |
Amount due to related party | 29,948 | 74,633 |
Other related parties |
2024 | 2023 |
£ | £ |
Sales | - | 661 |
Purchases | 316,378 | 335,012 |
Amount due to related party | 37,271 | 44,581 |
During the year, a total of key management personnel compensation of £ 202,084 (2023 - £ 99,286 ) was paid. |
28. | ULTIMATE CONTROLLING PARTY |
The controlling party is C N Jarvis. |