BrightAccountsProduction v1.0.0 v1.0.0 2023-03-01 The company was not dormant during the period The company was trading for the entire period The principal activity of the company is the rental of construction and civil engineering machinery and equipment. 18 November 2024 NI011306 2024-02-29 NI011306 2023-02-28 NI011306 2022-02-28 NI011306 2023-03-01 2024-02-29 NI011306 2022-03-01 2023-02-28 NI011306 uk-bus:PrivateLimitedCompanyLtd 2023-03-01 2024-02-29 NI011306 uk-curr:PoundSterling 2023-03-01 2024-02-29 NI011306 uk-bus:FullAccounts 2023-03-01 2024-02-29 NI011306 uk-bus:Director1 2023-03-01 2024-02-29 NI011306 uk-bus:Director2 2023-03-01 2024-02-29 NI011306 uk-bus:CompanySecretaryDirector1 2023-03-01 2024-02-29 NI011306 uk-bus:CompanySecretary1 2023-03-01 2024-02-29 NI011306 uk-bus:RegisteredOffice 2023-03-01 2024-02-29 NI011306 uk-bus:Agent1 2023-03-01 2024-02-29 NI011306 uk-bus:Audited 2023-03-01 2024-02-29 NI011306 uk-core:Non-currentFinancialInstruments 2024-02-29 NI011306 uk-core:Non-currentFinancialInstruments 2023-02-28 NI011306 uk-core:CurrentFinancialInstruments 2024-02-29 NI011306 uk-core:CurrentFinancialInstruments 2023-02-28 NI011306 uk-core:ShareCapital 2024-02-29 NI011306 uk-core:ShareCapital 2023-02-28 NI011306 uk-core:RetainedEarningsAccumulatedLosses 2024-02-29 NI011306 uk-core:RetainedEarningsAccumulatedLosses 2023-02-28 NI011306 uk-core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests 2024-02-29 NI011306 uk-core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests 2023-02-28 NI011306 uk-core:RetainedEarningsAccumulatedLosses 2023-03-01 2024-02-29 NI011306 uk-bus:FRS102 2023-03-01 2024-02-29 NI011306 uk-core:Land 2023-03-01 2024-02-29 NI011306 uk-core:PlantMachinery 2023-03-01 2024-02-29 NI011306 uk-core:FurnitureFittingsToolsEquipment 2023-03-01 2024-02-29 NI011306 uk-core:MotorVehicles 2023-03-01 2024-02-29 NI011306 uk-core:TotalPropertyPlantEquipmentOtherThanExplorationEvaluationAssets 2023-03-01 2024-02-29 NI011306 uk-core:TotalPropertyPlantEquipmentOtherThanExplorationEvaluationAssets 2022-03-01 2023-02-28 NI011306 uk-core:WithinOneYear 2024-02-29 NI011306 uk-core:WithinOneYear 2023-02-28 NI011306 uk-core:WithinOneYear 2024-02-29 NI011306 uk-core:WithinOneYear 2023-02-28 NI011306 uk-core:WithinOneYear 2024-02-29 NI011306 uk-core:WithinOneYear 2023-02-28 NI011306 uk-core:AfterOneYear 2024-02-29 NI011306 uk-core:AfterOneYear 2023-02-28 NI011306 uk-core:AfterOneYear 2024-02-29 NI011306 uk-core:AfterOneYear 2023-02-28 NI011306 uk-core:BetweenOneFiveYears 2024-02-29 NI011306 uk-core:BetweenOneFiveYears 2023-02-28 NI011306 uk-core:EmployeeBenefits 2023-02-28 NI011306 uk-core:EmployeeBenefits 2023-03-01 2024-02-29 NI011306 uk-core:AcceleratedTaxDepreciationDeferredTax 2024-02-29 NI011306 uk-core:TaxLossesCarry-forwardsDeferredTax 2024-02-29 NI011306 uk-core:OtherDeferredTax 2024-02-29 NI011306 uk-core:RevaluationPropertyPlantEquipmentDeferredTax 2024-02-29 NI011306 uk-core:EmployeeBenefits 2024-02-29 NI011306 uk-bus:OrdinaryShareClass1 2023-03-01 2024-02-29 NI011306 uk-bus:OrdinaryShareClass2 2023-03-01 2024-02-29 NI011306 uk-bus:OrdinaryShareClass1 2024-02-29 NI011306 uk-bus:OrdinaryShareClass2 2024-02-29 NI011306 2023-03-01 2024-02-29 xbrli:pure iso4217:GBP xbrli:shares
 
 
 
 
 
 
 
 
Company Registration Number: NI011306
 
 
C. P. Hire Limited
 
Reports and Financial Statements
 
for the financial year ended 29 February 2024
C. P. Hire Limited
Directors and Other Information

 
Directors Andrew Hutchinson
David Hutchinson
Katie Hutchinson
 
 
Company Secretary Katie Hutchinson
 
 
Company Registration Number NI011306
 
 
Registered Office and Business Address 102 Bushmills Road
Coleraine
BT52 2BT
 
 
Independent Auditors HCA Chartered Accountants Ltd
Chartered Accountants and Statutory Auditors
12 Cromac Place
Belfast
Co. Antrim
BT7 2JB
Northern Ireland
 
 
Bankers Danske Bank
  22 The Diamond
  Coleraine
  Co. Londonderry
  BT52 1DA
   
   
  Barclays Bank
  1 Churchill Place
  London
  E14  5HP
  United Kingdom
 
   
Solicitors Millar McCall Wylie
  Eastleigh House
  396 Upper Newtownards Road
  Belfast
  Co. Antrim
  BT4 3EY



C. P. Hire Limited
Strategic Report
for the financial year ended 29 February 2024

 
The directors present their strategic report on the company for the financial year ended 29 February 2024.
 
Business review and future developments
The results of the company show an operating profit for the year to 29 February 2024 of £2,965,405 (year to 2023: £3,698,283). At the year end the company had net assets of £14,104,649  (2023: £13,513,913). The period covered by these financial statements has shown an improving  performance in the Northern Ireland construction industry. Key challenges for the industry remain in terms of securing finance, pressure on public sector budgets for investment activity and increases in interest rates. The Directors are pleased with the continued, strong financial performance of the company.
       
Principal Risks and Uncertainties
As the company's business relates principally to the construction sector, performance is linked to prevalent conditions in that sector. Business activity is therefore heavily influenced by the levels of private residential, commercial and public sector construction in Northern Ireland. In addition, the company faces competition from other organisations and, as a result, reviews expected plant requirements in the market and competitor pricing on an ongoing basis.

The most significant risk faced by the company is its fixed costs and commitments, particularly the hire purchase and loan repayment commitments, including interest thereon, arising from investment in plant.

The above risks are addressed through having a diversified customer base across Northern Ireland, close management of asset financing, strong customer service and support as well as ongoing investment in machinery, staff and facilities. The company aims to mitigate interest rate risks, so far as possible, by entering into fixed-rate asset finance agreements. The company carefully manages its fleet, including the timings and financing arrangements for refreshing the fleet, in a manner designed to enable the company to continue to trade profitably and sustainably over the long term.
       
Performance analysis
The company has reported continued improved performance in the year ended February 2024, with increased  turnover, as market conditions improved. The company has invested to refresh its plant during the year. The directors remain confident that the company's market share, business model and reputation will ensure it remains in a strong position to continue to operate profitably in future years.
       
Key Performance Indicators
The company's key performance indicators are operating profit before exceptional items and taxation, and net assets.

EBITDA, before exceptional items:          £6,282,505    (2023: £6,650,142)
Operating profit:                          £2,965,405    (2023: £3,698,283)
Net Assets:                             £14,104,649   (2023: £13,513,913)
       
Future Developments
The company will continue to focus on being a market leader in the hire of plant across Northern Ireland.
       
       
On behalf of the board
       
       
___________________________      
Andrew Hutchinson      
Director      
       
15 November 2024      



C. P. Hire Limited
Directors' Report
for the financial year ended 29 February 2024

 
The directors present their report and the audited financial statements for the financial year ended 29 February 2024.
 
Principal Activity
The principal activity of the company is the rental of construction and civil engineering machinery and equipment.
     
Results and Dividends
The profit for the financial year after providing for depreciation and taxation amounted to £1,076,636 (2023 - £2,968,726).
The directors have paid an interim dividend amounting to £485,900 and they do not recommend payment of a final dividend.
     
Directors
The directors who served during the financial year are as follows:
     
Andrew Hutchinson
David Hutchinson
Katie Hutchinson
   
     
Events After the End of the Reporting Period
There have been no significant events affecting the company since the financial year-end.
     
Political Contributions
The company did not make any disclosable political donations in the current financial year.
     
Statement of Directors' Responsibilities
             
The directors are responsible for preparing the Strategic Report, Directors' 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) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
■select suitable accounting policies and apply them consistently;
■make judgements and accounting estimates that are reasonable and prudent;
■prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
                 
Disclosure of Information to Auditor
Each persons who are directors at the date of approval of this report confirms that:
In so far as the directors are aware:
■there is no relevant audit information (information needed by the company's auditor in connection with preparing the auditor's report) of which the company's auditor is unaware, and
■the directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
     
Auditors
The auditors, HCA Chartered Accountants Ltd, (Chartered Accountants) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.
     
     
On behalf of the board
     
     
___________________________
Andrew Hutchinson
Director
     
15 November 2024



Independent Auditor's Report
to the Shareholders of C. P. Hire Limited

 
Report on the audit of the financial statements
 
Opinion
We have audited the financial statements of C. P. Hire Limited ('the company') for the financial year ended 29 February 2024 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes to the financial statements, including significant accounting policies set out in note . The financial reporting framework that has been applied in their preparation is applicable Law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
■give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its profit for the financial 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 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 the date 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.
 
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
 
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic Report and the Directors' Report.
 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
 
Responsibilities of directors for the financial statements
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 they 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 has no realistic alternative but to do so.
 
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
 
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We 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:
 
Our audit has been conducted with professional scepticism and using sampling and testing procedures that are in accordance with International Standards on Auditing. The nature of the company's industry along with its control environment has been considered in conducting our audit. We enquired of management their identification and assessment of the risks of irregularities and reviewed the policies relating to compliance with laws and regulations and fraud.

We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:

- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act, pensions legislation, and tax legislation: and
- do not have direct impact on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included UK employment, health and safety, manufacturing, and transport laws.
We identified the potential for fraud in the following area, and our specific procedures performed to mitigate the risks are addressed below;

Revenue recognition:

- we assessed the design and implementation of the key controls over recognition or revenue; and
- we selected a sample of invoices around the year end and traced to the relevant despatch information to determine if revenue was recognised in the correct period.

We have also performed specific procedures to respond to the risk of management override in response to the requirement for all audits under ISAs (UK). In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of transactions that are outside the normal course of business.

Based on a similar understanding we have identified the following areas with a higher potential risk of fraud:

- Risk of management over-ride of controls


Our procedures to respond to the risks identified including the following;

- review of minutes of meetings of management and those charged with governance.
- review of supporting documentation to assess any non- compliance with the relevant laws and regulations.
- Enquiring of management and directors as well as external legal counsel on any actual or potential litigation or claims.
 
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 Auditor's Report.
 
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
 
 
 
__________________________________
Brian Hegarty (Senior Statutory Auditor)
for and on behalf of
HCA CHARTERED ACCOUNTANTS LTD
Chartered Accountants and Statutory Auditors
12 Cromac Place
Belfast
Co. Antrim
BT7 2JB
Northern Ireland
 
18 November 2024



C. P. Hire Limited
Income Statement
for the financial year ended 29 February 2024
2024 2023
Notes £ £

Revenue 4 13,234,189 12,914,155
 
Cost of sales (4,207,167) (4,083,916)
───────── ─────────
Gross profit 9,027,022 8,830,239
 
Administrative expenses (6,061,617) (5,131,956)
───────── ─────────
Operating profit 5 2,965,405 3,698,283
 
Exceptional items 6 (573,971) -
───────── ─────────
Profit before interest 2,391,434 3,698,283
 
Interest receivable and similar income 7 131,746 262,005
Interest payable and similar expenses 8 (691,863) (513,975)
───────── ─────────
Profit before taxation 1,831,317 3,446,313
 
Tax on profit 10 (754,681) (477,587)
───────── ─────────
Profit for the financial year 1,076,636 2,968,726
    ═════════   ═════════



C. P. Hire Limited
Company Registration Number: NI011306
Statement of Financial Position
as at 29 February 2024

2024 2023
Notes £ £
 
Non-Current Assets
Property, plant and equipment 12 23,577,682 21,945,841
───────── ─────────
 
Current Assets
Stocks 13 1,668,539 436,183
Debtors 14
- amounts falling due after more than one year 1,291,573 3,052,576
- amounts falling due within one year 4,035,609 2,335,426
Cash and cash equivalents 15 124,635 1,523,187
───────── ─────────
7,120,356 7,347,372
───────── ─────────
Creditors: amounts falling due within one year 16 (8,352,025) (7,449,908)
───────── ─────────
Net Current Liabilities (1,231,669) (102,536)
───────── ─────────
Total Assets less Current Liabilities 22,346,013 21,843,305
 
Creditors:
amounts falling due after more than one year 17 (5,494,860) (6,685,238)
 
Provisions for liabilities 19 (2,746,504) (1,644,154)
───────── ─────────
Net Assets 14,104,649 13,513,913
═════════ ═════════
 
Equity
Called up share capital 21 40,000 40,000
Retained earnings 14,064,649 13,473,913
───────── ─────────
Equity attributable to owners of the company 14,104,649 13,513,913
═════════ ═════════
 
           
Approved by the Board and authorised for issue on 15 November 2024 and signed on its behalf by
           
           
________________________________          
Andrew Hutchinson          
Director          
           



C. P. Hire Limited
Statement of Changes in Equity
as at 29 February 2024

Called up Retained Total
share earnings
capital
£ £ £
 
At 1 March 2022 40,000 10,990,187 11,030,187
───────── ───────── ─────────
Profit for the financial year - 2,968,726 2,968,726
───────── ───────── ─────────
Payment of dividends - (485,000) (485,000)
  ───────── ───────── ─────────
At 28 February 2023 40,000 13,473,913 13,513,913
  ───────── ───────── ─────────
Profit for the financial year - 1,076,636 1,076,636
  ───────── ───────── ─────────
Payment of dividends - (485,900) (485,900)
  ───────── ───────── ─────────
At 29 February 2024 40,000 14,064,649 14,104,649
  ═════════ ═════════ ═════════



C. P. Hire Limited
Statement of Cash Flows
for the financial year ended 29 February 2024
2024 2023
Notes £ £

Cash flows from operating activities
Profit for the financial year 1,076,636 2,968,726
Adjustments for:
Exceptional items 573,971 -
Interest receivable and similar income (131,746) (262,005)
Interest payable and similar expenses 691,863 513,975
Tax on profit on ordinary activities 754,681 477,587
Depreciation 4,169,120 3,905,989
Profit/loss on disposal of property, plant and equipment (852,020) (954,130)
───────── ─────────
6,282,505 6,650,142
Movements in working capital:
Movement in stocks (1,232,356) (69,528)
Movement in debtors (1,073,252) 241,843
Movement in creditors 739,176 (861,557)
───────── ─────────
Cash generated from operations 4,716,073 5,960,900
Interest paid (691,863) (513,975)
Tax paid (3,233) 6,863
───────── ─────────
Net cash generated from operating activities 4,020,977 5,453,788
───────── ─────────
Cash flows from investing activities
Interest received   131,746 262,005
Payments to acquire property, plant and equipment   (1,239,117) (553,865)
Receipts from sales of property, plant and equipment   1,366,646 2,570,802
    ───────── ─────────
Net cash generated from investment activities   259,275 2,278,942
    ───────── ─────────
Cash flows from financing activities
New short term loan   (7,609) 99,133
Capital element of hire purchase contracts   (5,996,807) (4,997,560)
Movement in funding to connected parties   911,003 (3,052,576)
Dividends paid   (485,900) (485,000)
    ───────── ─────────
Net cash used in financing activities   (5,579,313) (8,436,003)
    ───────── ─────────
       
Net decrease in cash and cash equivalents   (1,299,061) (703,273)
Cash and cash equivalents at beginning of financial year   1,423,696 2,126,969
    ───────── ─────────
Cash and cash equivalents at end of financial year 15 124,635 1,423,696
    ═════════ ═════════



C. P. Hire Limited
Notes to the Financial Statements
for the financial year ended 29 February 2024

   
1. General Information
 
C. P. Hire Limited is a company limited by shares incorporated in Northern Ireland. 102 Bushmills Road, Coleraine, BT52 2BT is the registered office, which is also the principal place of business of the company. The nature of the company's operations and its principal activities are set out in the Directors' Report. The financial statements have been presented in Pound (£) which is also the functional currency of the company.
         
2. Summary of Significant Accounting Policies
 
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements.
 
Statement of compliance
The financial statements of the company for the period ended 29 February 2024 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006.
 
Basis of preparation
The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
 
Revenue
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered by the company, exclusive of trade discounts and value added tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of the goods; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity and the costs incurred to be incurred in respect of the transactions can be measured reliably.
 
Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:
 
  Long leasehold property - 2% Straight line
  Plant and machinery - 15-20% reducing balance
  Fixtures, fittings and equipment - 20% reducing balance
  Motor vehicles - 25% reducing balance
 
The carrying values of tangible fixed assets are reviewed annually for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.
 
Investment properties (see note 12) are carried at independently assessed open market value and are not depreciated.
 
Leasing and hire purchases
Property, plant and equipment held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement.
 
Leasing
Rentals payable under operating leases are dealt with in the Income Statement as incurred over the period of the rental agreement.
 
Stocks
Stocks are valued at the lower of cost and net realisable value. Stocks are determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition.  Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.
 
Trade and other debtors
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.
 
Borrowing costs
Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
 
Provisions
Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
 
Trade and other creditors
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.
 
Related parties
For the purposes of these financial statements a party is considered to be related to the company if:
 
the party has the ability, directly or indirectly, through one or more intermediaries to control the company or exercise significant influence over the company in making financial and operating policy decisions or has joint control over the company;
the company and the party are subject to common control;
the party is an associate of the company or forms part of a joint venture with the company;
the party is a member of key management personnel of the company or the company's parent, or a close family member of such as an individual, or is an entity under the control, joint control or significant influence of such individuals;
the party is a close family member of a party referred to above or is an entity under the control or significant influence of such individuals; or
the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company.
 
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the company.
 
Taxation
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date.
 
Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Statement of Financial Position date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Income Statement.
 
Pensions
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. Annual contributions payable to the company's pension scheme are charged to the Income Statement in the period to which they relate.
 
Financial Instruments
 
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.
 
Other Financial Instruments
Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit and loss. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that there reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been, had the impairment not previously been recognised.

The company has no sophisticated financial instruments.
 
Ordinary share capital
The ordinary share capital of the company is presented as equity.

Preference share capital classed as liabilities is included within creditors: amounts falling due after more than one year.
 
Exceptional item
Exceptional items are those that the directors' view are required to be separately disclosed by virtue of their size or incidence to enable a full understanding of the company's financial performance.
   
3. Critical Accounting Judgements and Estimates
 
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonably under the circumstances.
 
Critical judgements applying to the company's accounting policies
The directors do not consider that any critical judgements have been made in applying the company's accounting policies.
 
Critical accounting estimates and assumptions
A key component of the company's asset base is plant and machinery available for hire. The directors consider the appropriate rate of depreciation to apply to plant and machinery is a critical accounting estimate. Depreciation is a large component of the company's cost base and the choice of depreciation rate therefore has a significant impact on reported profit. The directors consider the rates of depreciation applied by the company to be prudent.

Included within debtors due from connected parties is a balance of £2,141,573 owed by Rock Holdings Limited. The Directors  expect that this balance will be repaid in full, however as Rock Holdings Limited does not currently have sufficient liquidity to make repayment on demand the ability of Rock Holdings Limited to make full repayment of this sum is subject to uncertain future events, and there is a risk that a material adjustment to the carrying amount of this asset may be required in future periods. As a result, the Directors have not made any impairment of the debtor balance and have shown a proportion of the debtor balance within long-term debtors.

No other criticial accounting estimates or judgements are made which would have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
       
4. Revenue
 
An analysis of revenue by class of business and geographical market is not given as, in the opinion of the directors, this would be seriously prejudicial to the company's interest.
       
5. Operating profit 2024 2023
  £ £
Operating profit is stated after charging/(crediting):
Depreciation of property, plant and equipment 4,169,120 3,905,989
(Profit) on disposal of property, plant and equipment (852,020) (954,130)
Profit on foreign currencies - (6,655)
Operating lease rentals
- Plant and machinery - 26,666
- Land and buildings 428,400 428,400
Auditor's remuneration
- audit services 24,000 22,000
  ═════════ ═════════
       
6. Exceptional items 2024 2023
  £ £
 
Exceptional item: impairment of connected company debtor (573,971) -
  ═════════ ═════════
 
Impairment of connected party debt
After the reporting date, a connected party, CP Hire (GB) Ltd, entered into a Company Voluntary Arrangement. Under the terms of the CVA proposal, creditors are expected to receive a return of 45p in the £. The Directors have therefore impaired the balance down to the recoverable amount expected to be received in line with the terms of the CVA. This charge is not expected to recur in future periods. CP Hire (GB) Ltd is connected to the company through common directors and shareholders.
       
7. Interest receivable and similar income 2024 2023
  £ £
 
Other interest 131,746 262,005
  ═════════ ═════════
       
8. Interest payable and similar expenses 2024 2023
  £ £
 
On bank loans and overdrafts 163,621 151,957
Finance charges on shares classified as financial liabilities (Note 11) 10,000 10,000
Hire purchase interest 518,242 352,018
  ───────── ─────────
  691,863 513,975
  ═════════ ═════════
       
9. Employees and remuneration
 
Number of employees
The average number of persons employed (including executive directors) during the financial year was as follows:
 
  2024 2023
  Number Number
 
Administrative staff 12 12
Distribution staff 72 67
  ───────── ─────────
  84 79
  ═════════ ═════════
 
The staff costs (inclusive of directors' salaries) comprise: 2024 2023
  £ £
 
Wages and salaries 2,429,833 2,280,732
Social security costs 249,055 220,223
Pension costs 179,085 168,809
  ───────── ─────────
  2,857,973 2,669,764
  ═════════ ═════════
       
10. Tax on profit
  2024 2023
  £ £
(a)     Analysis of charge in the financial year
 
Current tax:
Corporation tax at 25.00% (2023 - 19.00%) (350,902) -
Under/over provision in prior year - (20,762)
  ───────── ─────────
  (350,902) (20,762)
Overseas tax 3,233 29,464
  ───────── ─────────
Total current tax (347,669) 8,702
  ───────── ─────────
 
Deferred tax:
Origination and reversal of timing differences 1,102,350 468,885
  ───────── ─────────
Total deferred tax 1,102,350 468,885
  ═════════ ═════════
Tax on profit  (Note 10 (b)) 754,681 477,587
  ═════════ ═════════
 
(b)     Factors affecting tax charge for the financial year
 
The tax assessed for the financial year differs from the standard rate of corporation tax in the United Kingdom 25.00% (2023 - 19.00%). The differences are explained below:
  2024 2023
  £ £
 
Profit taxable at 25.00% 1,831,317 3,446,313
  ═════════ ═════════
Profit before tax
multiplied by the standard rate of corporation tax
in the United Kingdom at 25.00% (2023 - 19.00%) 457,829 654,799
Effects of:
Expenses not deductible for tax purposes 20,090 10,103
Capital allowances for period in excess of depreciation (838,420) (1,526,764)
Utilisation of tax losses (350,902) -
Deferred tax 1,102,350 468,885
Other timing differences 360,501 861,862
Overseas Tax 3,233 29,464
Adjustment to tax charge in respect of previous periods - (20,762)
  ───────── ─────────
Total tax charge for the financial year (Note 10 (a)) 754,681 477,587
  ═════════ ═════════
 
       
11. Dividends 2024 2023
  £ £
Dividends on equity shares:
 
Ordinary shares - Interim paid 282,500 260,000
B Ordinary shares - Interim paid 203,400 225,000
  ───────── ─────────
  485,900 485,000
  ═════════ ═════════
 
Dividends on shares classified as financial liabilities 10,000 10,000
  ═════════ ═════════
 
Total dividend 495,900 495,000
  ═════════ ═════════
             
12. Property, plant and equipment
  Long Plant and Fixtures, Motor Total
  leasehold machinery fittings and vehicles  
  property   equipment    
  £ £ £ £ £
Cost
At 1 March 2023 1,017,509 39,357,165 284,024 2,954,702 43,613,400
Additions 44,676 5,919,423 - 351,488 6,315,587
Disposals - (2,584,356) - (292,750) (2,877,106)
  ───────── ───────── ───────── ───────── ─────────
At 29 February 2024 1,062,185 42,692,232 284,024 3,013,440 47,051,881
  ───────── ───────── ───────── ───────── ─────────
Depreciation
At 1 March 2023 137,492 19,494,654 232,989 1,802,424 21,667,559
Charge for the financial year 18,780 3,800,283 10,206 339,851 4,169,120
On disposals - (2,078,889) - (283,591) (2,362,480)
  ───────── ───────── ───────── ───────── ─────────
At 29 February 2024 156,272 21,216,048 243,195 1,858,684 23,474,199
  ───────── ───────── ───────── ───────── ─────────
Net book value
At 29 February 2024 905,913 21,476,184 40,829 1,154,756 23,577,682
  ═════════ ═════════ ═════════ ═════════ ═════════
At 28 February 2023 880,017 19,862,511 51,035 1,152,278 21,945,841
  ═════════ ═════════ ═════════ ═════════ ═════════
           
12.1. Property, plant and equipment continued
 
Included above are assets held under finance leases or hire purchase contracts as follows:
 
  2024   2023  
  Net Depreciation Net Depreciation
  book value charge book value charge
  £ £ £ £
 
Plant and machinery 17,024,961 3,761,760 16,059,701 3,359,573
Motor vehicles 1,000,709 295,269 977,848 230,700
  ───────── ───────── ───────── ─────────
  18,025,670 4,057,029 17,037,549 3,590,273
  ═════════ ═════════ ═════════ ═════════
       
13. Stocks 2024 2023
  £ £
 
Goods held for resale 1,668,539 436,183
  ═════════ ═════════
 
Included within closing stock at February 2024 was an amount of £1,226,125 relating to plant and machinery held for resale. (2023 : £nil ).
       
14. Debtors 2024 2023
  £ £
 
Trade debtors 2,172,488 2,094,038
Amounts owed by connected parties (Note 25) 2,628,899 3,063,576
Other debtors 37,883 97,977
Taxation  (Note 18) 350,902 -
Prepayments and accrued income 137,010 132,411
  ───────── ─────────
  5,327,182 5,388,002
  ═════════ ═════════
       
Amounts falling due after more than one year and included in debtors are:
 
  2024 2023
  £ £
 
Amounts owed by connected parties 1,291,573 3,052,576
  ═════════ ═════════
       
15. Cash and cash equivalents 2024 2023
  £ £
 
Cash and bank balances 124,635 1,523,187
Bank overdrafts - (99,491)
  ───────── ─────────
  124,635 1,423,696
  ═════════ ═════════
       
16. Creditors 2024 2023
Amounts falling due within one year £ £
 
Bank overdrafts - 99,491
Other Loans and Overdrafts 728,540 736,149
Net obligations under finance leases
and hire purchase contracts 5,366,356 5,096,315
Trade creditors 684,649 615,218
Taxation  (Note 18) 71,758 59,875
Directors' current accounts (Note 24) 499,179 169,906
Other creditors 498,571 64,605
Accruals 502,972 608,349
  ───────── ─────────
  8,352,025 7,449,908
  ═════════ ═════════
 
Bank overdrafts, bank loans and overdrafts, and other loans and overdrafts include amounts secured by a fixed and floating charge in favour of Northern Bank Limited, trading as Danske Bank.

Assets acquired under Hire Purchase Agreements and Finance Leases are secured in favour of the respective providers of finance.

Trade creditors include amounts owing to suppliers under contracts which include reservation of title clauses.
       
17. Creditors 2024 2023
Amounts falling due after more than one year £ £
 
Shares classified as financial liabilities (Note 21) 500,000 500,000
Finance leases and hire purchase contracts 4,994,860 6,185,238
  ───────── ─────────
  5,494,860 6,685,238
  ═════════ ═════════
 
 
Net obligations under finance leases
and hire purchase contracts
Repayable within one year 5,366,356 5,096,315
Repayable between one and five years 4,994,860 6,185,238
  ───────── ─────────
  10,361,216 11,281,553
  ═════════ ═════════
       
18. Taxation 2024 2023
  £ £
 
Debtors:
Corporation tax 350,902 -
  ═════════ ═════════
Creditors:
VAT 19,963 19,030
PAYE / NI 51,795 40,845
  ───────── ─────────
  71,758 59,875
  ═════════ ═════════
             
19. Provisions for liabilities
 
The amounts provided for deferred taxation are analysed below:
 
  Capital Losses Other Total Total
  allowances   differences    
           
        2024 2023
  £ £ £ £ £
 
At financial year start 3,844,768 (2,332,357) 131,743 1,644,154 1,175,269
Charged to profit and loss 922,123 315,929 (135,702) 1,102,350 468,885
  ───────── ───────── ───────── ───────── ─────────
At financial year end 4,766,891 (2,016,428) (3,959) 2,746,504 1,644,154
  ═════════ ═════════ ═════════ ═════════ ═════════
   
20. Pension costs - defined contribution
 
The amount recognised in profit or loss in relation to defined contribution plans was £179,085 (2023: £168,809).
           
21. Share capital     2024 2023
      £ £
Description Number of shares Value of units    
 
Allotted, called up and fully paid
Ordinary shares 10,000 £1.00 each 10,000 10,000
B Ordinary shares 30,000 £1.00 each 30,000 30,000
 
      ───────── ─────────
      40,000 40,000
      ═════════ ═════════
 
The shares classified as financial liabilities are 500,000 redeemable preference shares of £1 each, with a coupon rate of 2%.
       
22. Financial commitments
 
Total future minimum lease payments under non-cancellable operating leases are as follows:
 
  2024 2023
  £ £
Due:
Within one year 428,400 428,400
Between one and five years 428,400 856,800
  ───────── ─────────
  856,800 1,285,200
  ═════════ ═════════
 
The company has commitments under non-cancellable operating leases relating to land and buildings.
       
23. Capital commitments
 
The company had no material capital commitments at the financial year-ended 29 February 2024.
       
24. Directors' remuneration and transactions 2024 2023
  £ £
 
Remuneration 26,500 26,504
Pension contributions 87,996 87,996
  ───────── ─────────
  114,496 114,500
  ═════════ ═════════
 
  Number Number
 
Number of directors to whom retirement benefits
are accruing under a money purchase scheme 3 3
  ═════════ ═════════
           
The following amounts are repayable to the directors:
      2024 2023
      £ £
 
Andrew Hutchinson     237,291 71,670
David Hutchinson     229,800 70,092
Katie Hutchinson     32,088 28,144
      ───────── ─────────
      499,179 169,906
      ═════════ ═════════
 
Balances due to the directors are unsecured, and interest free and payable on demand.
       
25. Related party transactions
  Balance Balance
  2024 2023
  £ £
 
CP Hire (GB) Ltd 469,613 -
Rock Holdings Ltd 2,141,573 3,052,576
CP Hire Retirement Benefit Scheme 17,713 11,000
  ───────── ─────────
  2,628,899 3,063,576
  ═════════ ═════════
 
Included in Note 24 is the amounts due to the respective directors' current accounts, which at 29 February 2024 totalled £499,179 (2023: £169,906).

CP Hire (GB) Ltd is a related party, due to the common directorship of Andrew Hutchinson and David Hutchinson. The recoverable balance owed to the company by CP Hire (GB) Ltd at the year end was £469,613 (2023: £nil),. No interest is charged on this balance.  The company (CP Hire GB Ltd), entered into a CVA after the reporting date, and the directors of CP Hire Limited have written the loan balance down to its expected recoverable amount. The loan impairment charge of £573,971 is shown as an exceptional item.

The C. P. Hire Limited Director's Retirement Benefit Scheme ('the pension scheme') is regarded as a related party. The pension scheme owns a number of properties occupied by C. P. Hire Limited and the rental payments made during the year have been disclosed below. The balance outstanding to the company from the pension scheme at the year-end was £17,713  (2023: total amount due £11,000). During the year, rents of £146,400 were payable to the pension scheme (2023: £146,400).

Rock Holdings Ltd is a related party, due to the common directorship of Andrew Hutchinson and David Hutchinson.  The balance owed  by Rock Holdings Ltd to the company, at the year end was £2,141,573  (2023: £3,052,576). Interest of £111,386 (2023 :-£260,056) was charged on this balance.  Rock Holdings Ltd owns property occupied by C. P. Hire Limited, and rental charges during the year of £222,000 were payable to Rock Holdings Ltd, (2023:  £222,000). £850,000 of the balance due of £2,141,573 is shown within debtors falling due within one year, with the remaining proportion shown in debtors falling due after more than one year.
   
26. Controlling interest
 
The controlling party of the company is the Hutchinson family.
   
27. Events After the End of the Reporting Period
 
As noted elsewhere in the financial statements, after the reporting date a related party debtor, CP Hire (GB) Ltd, entered into a Company Voluntary Arrangement (CVA). The Directors have impaired the related party debtor balance down to its expected recoverable amount, in line with the terms of the approved CVA. Under the terms of the CVA, a subsidiary company of C. P. Hire Limited is intended to acquire the trade and assets of CP Hire (GB) Ltd. At the date of approval of the financial statements, this transaction has not fully completed, and is expected to complete before the company's next reporting date.

There have been no other significant events affecting the company since the financial year end.
           
28 Reconciliation of Net Cash Flow to Movement in Net Debt
  Opening Cash Other Closing
  balance flows changes balance
         
  £ £ £ £
 
Long-term borrowings (500,000) - - (500,000)
Short-term borrowings (736,149) 7,609 - (728,540)
Finance lease and hire purchase (11,281,553) 5,996,807 (5,076,470) (10,361,216)
  ───────── ───────── ───────── ─────────
Total liabilities from financing activities (12,517,702) 6,004,416 (5,076,470) (11,589,756)
  ═════════ ═════════ ═════════ ─────────
Total Cash and cash equivalents (Note 15)       124,635
        ─────────
Total net debt       (11,465,121)
        ═════════
       
29. Contingent liability
 
The company acted as guarantor on a number of asset finance agreements for a related party, CP Hire (GB) Ltd. The finance agreements were secured by way of fixed charges on the assets of CP Hire (GB) Ltd. Following CP Hire (GB) Ltd entering into a Company Voluntary Arrangement after the reporting date, the Directors have considered the position with the guarantee obligations and remain of the view that no liability is expected to arise on the company arising from the guarantee obligations.