REGISTERED NUMBER: 10487556 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
SUDHIR POWER (UK) LIMITED |
REGISTERED NUMBER: 10487556 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
SUDHIR POWER (UK) LIMITED |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 8 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Statement of Financial Position | 13 |
Company Statement of Financial Position | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Statement of Cash Flows | 17 |
Notes to the Consolidated Statement of Cash Flows | 18 |
Notes to the Consolidated Financial Statements | 19 |
SUDHIR POWER (UK) LIMITED |
COMPANY INFORMATION |
for the year ended 31 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Magma House, 16 Davy Court |
Castle Mound Way |
Rugby |
CV23 0UZ |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
GROUP STRATEGIC REPORT |
for the year ended 31 March 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
The Group consists of four main trading entities operating in the Plant Hire sector - a branch in UAE; Star Platforms Limited and Star Power Hire Limited - both UK based subsidiaries and Sudhir Equipment Rental Company - a Saudi Arabia based subsidiary. |
Star Platforms Limited generated a profit on ordinary activities before taxation for the year ended 31 March 2024 of £2,243,033, supported by Sudhir Equipment Rental Company's pre-tax profits of £8,460,883 - this has been offset slightly by a small loss for Star Power Hire of £30,122. |
Profit on ordinary activities before taxation for the Group rose to £8,416,830 for the year ended 31 March 2024. The total Shareholders' Funds at the year-end stood at £13,424,170 (2023: £7,418,826). |
Given the impacts of the war in Ukraine, inflation and increasing interest rates on the global economy, the performance over the financial year has been quite remarkable. The Group has expanded fleet in all the markets it operates in, won market share and maintained high utilisation levels. |
STRATEGY |
The Group will continue to use its reputation within the market to build a profitable customer base. Sudhir Equipment Rental Company opened a new depot during the year in Jeddah, Saudi Arabia and entered two new product segments of Compressors and Tower Lights, which have proved to be very successful. It is always open to the idea of further expansion and will consider opening additional branches and further acquisitions on the proviso it makes business sense. |
Due to the success of the current financial year and strong forecasted utilisation levels the Group will further invest in capital equipment to further enhance its fleet offering. |
The Group also recognises the importance of its staff and staff retention. The aim is always to be the employer of choice within the industry. Wages and working conditions therefore reflect this and the staff enjoy several benefits, including bonuses, private health care, excellent holiday entitlement and promotion opportunities as the group looks to promote from within. |
KEY PERFORMANCE INDICATORS ('KPIs') |
As well as turnover and profitability the Group also monitors its plant hire utilisation. It targets a utilisation level of 70% or higher to be able to grow sustainably. Star Platforms Limited achieved an average of over 70% over the course of the financial year, whereas Star Power Hire Limited didn't quite meet expectations at just under 65%. Sudhir Equipment Rental Company achieved an average utilisation of over 75% off the back of very robust demand. The Group also uses return on capital employed as a key performance indicator, in particular the payback period of individual fleet items. The combination of both utilisation and payback allows the Group to make informed decisions on what areas of the fleet offering need further investment. |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
GROUP STRATEGIC REPORT |
for the year ended 31 March 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
In the UK, along with general market conditions, pricing and competition, the changing interest rate climate presents the greatest challenge to the Group and the hire industry at large over the coming months and years. A sharp unexpected fall in the oil price could dampen economic activity in Saudi Arabia, however this is not very likely. A sharp slowdown in China has caused surplus capacity amongst major plant machine manufacturers. This coupled with the recent tariffs imposed on them in Europe and the US has restricted and focused their sales activity to limited regions in the world. This is resulting in downward pressure on pricing. As a customer of these products, this may be considered as favourable, but it could lead to downward pressure on hire rates across the industry in the medium term. |
Despite the Group's strong performance for the year, the prospect of a global recession and a long road to recovery are very real. Furthermore, there are potential knock-on effects of the war in Ukraine. Despite this, the directors remain confident that the Group can continue to strengthen its current level of performance and has the procedures, polices and internal controls in place to mitigate any potential risk. |
FUTURE DEVELOPMENTS |
Star Platforms Limited are facing continued competitive pressures regarding pricing, therefore it is critical the Group maintains its market leading levels of service to ensure utilisation and margin targets are achieved. Star Power is expected to bounce back and deliver strong number moving forward. |
Sudhir Equipment Rental Company is experiencing significant growth due to favourable market conditions and is budgeted to continue its recent rate of growth of over 40% per year. It has plans to open another depot next year near the new hi-tech city of Neom. It is worth noting that it is predicted the global economy will continue to be impacted a changing interest rate environment and the war in Ukraine, however governments have continued to commit to an increase in public spending, which will include construction activities. In the meantime, the company will continue to focus on increasing market share further using its current strategy which has been extremely effective to date. |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
GROUP STRATEGIC REPORT |
for the year ended 31 March 2024 |
SECTION 172(1) STATEMENT |
The board of directors at Sudhir Power (UK) and throughout the Group fully understand its duties and responsibilities to act in a way that would be considered in good faith. In doing so, they have taken decisions that would most likely promote the success of the Group for the benefit of its members and stakeholders. In line with Section 172(1) the board have taken the necessary steps to ensure adequate considerations have taken place on the following: |
- | likely consequences of any decisions in the long term; |
- | interests of the company's employees; |
- | need to foster the Group's business relationships with suppliers, customers and others; |
- | impact of the Group's operations on the community and environment; |
- | desirability of the company maintaining a reputation for high standards of business conduct; and |
- | need to act fairly between members of the company. |
The board considers that the Groups outlined below represent the Group's key stakeholders. It is imperative that quality engagement is achieved throughout all stakeholder relationships, and this is at the forefront of Sudhir Power (UK)'s decision making processes; a few examples of which are set out below: |
Customers |
- | In such a competitive market, The Group prides itself on maintaining high levels of customer service which is highlighted throughout our customer retention statistics. |
- | Within the Group we have employed dedicated professionals to manage customer relationships and have even taken this a step further by employing a Customer Experience Manager. This enables us to continuously improve both our performance and our image with our customers. |
Employees |
- | The Group recognises the importance of its people and staff retention. Employees are a reflection of the company, so we ensure that our staff's values align with that of the business. |
- | The aim is always to be the employer of choice within the industry. Wages and working conditions therefore reflect this and the staff enjoy several benefits, including bonuses, private health care, excellent holiday entitlement and promotion opportunities as the group always looks to promote from within. |
Suppliers |
- | Our aim is to build long lasting and positive relationships with our suppliers. We are constantly communicating with one another to ensure both parties benefit from the business relationship. |
- | Health and Safety is paramount throughout the supply chain; therefore, we ensure that our suppliers adhere to acceptable product standards and make recommendations for improvements where appropriate. |
Community and Environment |
- | The board recognises the increased scrutiny on carbon footprints; therefore, we pride ourselves on having a fleet made up of mainly electric equipment. We have also invested heavily in batteries as a more sustainable source of energy over diesel generators. |
- | The Group also understands the importance of having that connection with local communities, therefore it invests heavily in local sports clubs and businesses. On top of this the business also gets involved with charitable fundraising - highlighted by all revenue from one fleet item being donated for good causes within the local area. |
Finance Providers |
- | One key strength of the Group is our relationships throughout the banking industry. Funders provide the company with capital resource at very competitive rates to purchase equipment, therefore enabling growth and the ability to service an increased customer base. |
- | As a result, we recognise the importance of ensuring that we protect and manage their investments through both informed and commercially viable capital expenditure decisions. |
The Board of Directors regularly reviews and updates the above as it sees fit. Any updates are communicated to employees and can be accessed at any point in time. The Group understands that stakeholders are critical to the success of any business and will continue to ensure that the requirements of Section 172 are adhered to. |
ON BEHALF OF THE BOARD: |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activities of the group in the year under review was that of leasing of powered access hire equipment, construction and building or demolition equipment, motor equipment, mining and oilfield equipment, cranes for construction purposes, scaffolding, containers and onshore and offshore oil and gas fields and facilities services. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024 (2023: none) |
The directors do not recommend payment of a dividend. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
The principal financial instruments of the Group comprise bank balances and borrowings, trade creditors, trade debtors and hire purchase contracts. The main purpose of these instruments is to raise funds for the Group's operations and to finance its continuing operations. Liquidity risk is managed by the use of bank balances and overdraft facilities along with efficient monitoring and forecasting of cash flow to ensure there are sufficient funds to meet liabilities. Trade debtors are managed in respect of credit and cash flow risk by policies monitoring the credit offered to customers, and regular monitoring of amounts outstanding for both time and credit limits. |
POLITICAL DONATIONS AND EXPENDITURE |
Neither the company nor group made made any political donations during the current or preceding year. |
BRANCHES OUTSIDE THE UK |
The group operates a foreign branch in Abu Dhabi. |
STREAMLINED ENERGY AND CARBON REPORTING |
The Group aims to minimise the lasting impact of its operations on the environment. We monitor closely our electricity, gas, and fuel usage. The following tables detail energy consumption and greenhouse gas emissions (GHG) from the activities of the Group during the period 1 April 2023 to March 2024. Our greenhouse gas emissions, reportable under SECR during the period specified above, were 1,974.46 tonnes CO2e. This figure has been calculated using the UK Government's most recent CHG Conversion Factors for Company Reporting (28 June 2023), This is in line with standard industry practice and allows fair comparison with other UK businesses. |
This figure includes all the material Scope 1 and Scope 2 emissions, required to be disclosed by the specified legislation. There were no additional Scope 3 emissions to include. |
The following figures make up the baseline reporting for Group. Scope 1 consumption and emissions relate to direct combustion of natural gas, and fuels utilised for transportation operations, such as company vehicle fleets. Scope 2 consumption and emissions relate to indirect emissions relating to the consumption of purchased electricity in day-to-day business operations. There were no Scope 3 consumption and emissions relate to emissions resulting from sources not directly owned by the reporting company. |
The total consumption (kWh) figures for energy supplies reportable by the Group are as follows: |
Utility | 31 March 2024 |
Natural Gas | 333,794 |
Company Owned Vehicles | 6,728,917 |
Purchased Electricity | 918,353 |
Total | 7,981,009 kWh |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2024 |
The total emission (tCO2e) figures for energy supplies reportable by the Group are as follows: |
Utility and Scope | 31 March 2024 |
Natural Gas (Scope 1) | 61.05 |
Company Owned Vehicles (Scope 1) | 190.17 |
Electricity (Scope 2) | 1,723.24 |
Total | 1,974.46 tCO2e |
An intensity metric of tCO2e per Em turnover has been applied for the annual total emissions of the Group. The result of this analysis is as follows: |
Intensity |
30 November 2023 |
Metric | 2.85 |
tCO2e / £100'000 |
Reporting Boundary, Methodology and Exclusions |
We have reported on all sources of GHG emissions and energy usage, associated emissions, energy efficiency actions and energy performance for EVO Group Limited, under the government policy Streamlined Energy & Carbon Reporting (SECR), as implemented by the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. |
We have followed the 2019 UK Government environmental reporting guidance. We have used the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and emission factors from the UK Government's GHG Conversion Factors for Company Reporting 2019 to calculate the above disclosure. There are no material omissions from the mandatory reporting scope. The reporting period is 1 April 2023 to March 2024, as per the financial statements. |
Engagement with Suppliers, Customers and Others |
Details of engagement with suppliers, customers and others can be found in the section 172(1) statement on page 7 of the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2024 |
AUDITORS |
The auditors, Magma Audit LLP, 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 |
SUDHIR POWER (UK) LIMITED |
Opinion |
We have audited the financial statements of Sudhir Power (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 March 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SUDHIR POWER (UK) 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 Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the Group and the industry, we identified the principle risks of non-compliance with laws and regulations, and considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Employment Law and Health and Safety Regulations. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principle risks were related to posting inappropriate journal entries, and management bias in accounting estimates. |
Audit procedures performed by the engagement team included: |
- | Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation, and fraud; |
- | Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, or with unusual descriptions; |
- | Challenging assumptions made by management in their significant accounting estimates, in particular the useful economic lives of tangible assets and carrying value of investments and goodwill. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
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 |
SUDHIR POWER (UK) 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 |
Chartered Accountants |
Statutory Auditor |
Magma House, 16 Davy Court |
Castle Mound Way |
Rugby |
CV23 0UZ |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 69,386,206 | 50,971,368 |
Cost of sales | (17,295,045 | ) | (15,125,049 | ) |
GROSS PROFIT | 52,091,161 | 35,846,319 |
Administrative expenses | (39,002,364 | ) | (27,759,428 | ) |
13,088,797 | 8,086,891 |
Other operating income | 57,544 | 28,392 |
OPERATING PROFIT | 5 | 13,146,341 | 8,115,283 |
Interest receivable and similar income | 2,875 | 1,853 |
13,149,216 | 8,117,136 |
Interest payable and similar expenses | 6 | (4,733,059 | ) | (1,777,283 | ) |
PROFIT BEFORE TAXATION | 8,416,157 | 6,339,853 |
Tax on profit | 7 | (2,112,030 | ) | (1,554,644 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 6,304,127 | 4,785,209 |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 6,304,127 | 4,785,209 |
OTHER COMPREHENSIVE INCOME |
Foreign exchange translation differences | (298,783 | ) | (626,785 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(298,783 |
) |
(626,785 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
6,005,344 |
4,158,424 |
Total comprehensive income attributable to: |
Owners of the parent | 6,005,344 | 4,158,424 |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 7,729,942 | 8,878,540 |
Tangible assets | 10 | 82,641,209 | 69,125,880 |
Investments | 11 | - | - |
90,371,151 | 78,004,420 |
CURRENT ASSETS |
Stocks | 12 | 1,848,322 | 927,037 |
Debtors | 13 | 17,583,263 | 14,583,350 |
Cash at bank and in hand | 1,179,900 | 334,098 |
20,611,485 | 15,844,485 |
CREDITORS |
Amounts falling due within one year | 14 | (80,048,352 | ) | (70,894,136 | ) |
NET CURRENT LIABILITIES | (59,436,867 | ) | (55,049,651 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
30,934,284 |
22,954,769 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(14,938,112 |
) |
(13,229,721 |
) |
PROVISIONS FOR LIABILITIES | 18 | (2,572,002 | ) | (2,306,222 | ) |
NET ASSETS | 13,424,170 | 7,418,826 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 250,000 | 250,000 |
Retained earnings | 20 | 13,174,170 | 7,168,826 |
SHAREHOLDERS' FUNDS | 13,424,170 | 7,418,826 |
The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2024 and were signed on its behalf by: |
P Munjal - Director |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (95,757 | ) | 131,011 |
The financial statements were approved by the Board of Directors and authorised for issue on |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 | 250,000 | 3,010,402 | 3,260,402 |
Changes in equity |
Total comprehensive income | - | 4,158,424 | 4,158,424 |
Balance at 31 March 2023 | 250,000 | 7,168,826 | 7,418,826 |
Changes in equity |
Total comprehensive income | - | 6,005,344 | 6,005,344 |
Balance at 31 March 2024 | 250,000 | 13,174,170 | 13,424,170 |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2024 |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 29,273,286 | 12,333,372 |
Tax paid | (1,879,430 | ) | (337,038 | ) |
Net cash from operating activities | 27,393,856 | 11,996,334 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (27,839,850 | ) | (23,717,740 | ) |
Sale of tangible fixed assets | 468,127 | 301,491 |
Interest received | 2,875 | 1,853 |
Net cash from investing activities | (27,368,848 | ) | (23,414,396 | ) |
Cash flows from financing activities |
New loans in year | 10,378,687 | 18,463,167 |
Hire purchase capital repayments in year | (5,722,668 | ) | (5,702,489 | ) |
Hire purchase interest | (997,787 | ) | (568,218 | ) |
Finance costs | (3,732,377 | ) | (1,209,065 | ) |
Net cash from financing activities | (74,145 | ) | 10,983,395 |
Decrease in cash and cash equivalents | (49,137 | ) | (434,667 | ) |
Cash and cash equivalents at beginning of year |
2 |
334,098 |
1,383,061 |
Effect of foreign exchange rate changes | 894,939 | (614,296 | ) |
Cash and cash equivalents at end of year | 2 | 1,179,900 | 334,098 |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
for the year ended 31 March 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 8,416,157 | 6,339,853 |
Depreciation charges | 18,942,550 | 13,807,979 |
Profit on disposal of fixed assets | (229,877 | ) | (23,403 | ) |
Amortisation charges | 1,148,598 | 1,148,598 |
Tax | - | (1,429,082 | ) |
Finance costs | 4,733,059 | 1,777,283 |
Finance income | (2,875 | ) | (1,853 | ) |
33,007,612 | 21,619,375 |
Increase in stocks | (921,285 | ) | (299,143 | ) |
Increase in trade and other debtors | (2,257,296 | ) | (3,189,611 | ) |
Decrease in trade and other creditors | (555,745 | ) | (5,797,249 | ) |
Cash generated from operations | 29,273,286 | 12,333,372 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2024 |
31/3/24 | 1/4/23 |
£ | £ |
Cash and cash equivalents | 1,179,900 | 334,098 |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 334,098 | 1,383,061 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1/4/23 | Cash flow | changes | At 31/3/24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 334,098 | 845,802 | 1,179,900 |
334,098 | 845,802 | 1,179,900 |
Debt |
Finance leases | (20,261,436 | ) | 4,750,532 | - | (21,262,122 | ) |
Debts falling due |
within 1 year | (50,851,655 | ) | 50,851,655 | - | - |
(71,113,091 | ) | 55,602,187 | - | (21,262,122 | ) |
Total | (70,778,993 | ) | 56,447,989 | - | (20,082,222 | ) |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Sudhir Power (UK) Limited is a group, registered in England and Wales. Its registered office address is Unit 2 Charnwood Edge Business Park, Syston Road, Cossington, United Kingdom, LE7 4UZ and the registered number is 10487556. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within accounting policies below. |
Significant judgements and estimates |
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
(i) Carrying value of investments |
The investment is held at cost and when assessing annually for impairment management consider factors including but not limited to the cash flows expected to arise from the investments. |
(ii) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets and deferred tax liability is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
(iii) Recoverability of amounts owed by group undertakings |
At each reporting date, amounts owed by group undertakings are assessed for recoverability. If there is any evidence of impairment, the carrying amount of the debtor is reduced to its recoverable amount. The impairment loss is recognised immediately in the income statement. |
(iv) Impairment of intangible assets and goodwill |
The group considers whether intangible assets and goodwill are impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of the future cash flows from the CGUs and also selection of appropriate discount rates in order to calculate the net present value of those cash flows. |
Going concern |
As at 31 March 2024 the company has net current liabilities of £16,370,845 (2023: 16,287,821) and net assets of £720,594 (2023: £817,124). The group has net current liabilities of £59,349,962 (2023: £55,049,651) and net assets of £13,511,075 (2023: £7,418,826). The directors have prepared the financial statements on a going concern basis as the parent undertaking, Sudhir Power Limited, will support the group financially and will make sufficient funds available to ensure the group can meet its debts as they fall due. The loan due to Sudhir Power Limited will not be recalled until Sudhir Power (UK) Limited have sufficient funds to repay the balance. The directors have confirmed that adequate cash resources will be available to cover the group's requirements for working capital and capital expenditure for at least twelve months from the date of these accounts. |
Basis of consolidation |
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at the fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for services rendered, net of returns, discounts and rebates allowed by the group and value added taxes. |
The group recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the group retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) when the specific criteria relating to the group's sales channels have been met. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirers interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Income Statement over its useful economic life which is expected to be 10 years. |
Tangible fixed assets |
Tangible assets are stated at historical cost less depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives on a straight line basis. |
Depreciation is provided on the following basis: |
Freehold property | - 5 years straight line |
Leasehold land and buildings | - 5 years straight line |
Plant and Machinery | - 3 to 20 years straight line |
Fixtures and fittings | - 5 years straight line |
Motor vehicles | - 5 years straight line |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement. |
Investment in subsidiaries |
Investment in the subsidiary companies is held at cost less accumulated impairment losses. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement. |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other debtors, cash and bank balances, investments and loans to fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Income Statement. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the Income Statement. |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. |
Such assets are subsequently carried at fair value and the changes in fair value are recognised in the Income Statement, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. |
Financial liabilities are derecognised when the liability is extinguished, is when the contractual obligation is discharged, cancelled or expires. |
(iii) Offsetting |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
The tax expense for the year comprises current and deferred tax. |
Tax is recognised in the Income Statement except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that: |
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Foreign currencies |
The group's functional and presentational currency is GBP and is rounded to the nearest £. |
Foreign currency transactions are translated into the functional currency using spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
On consolidation, the result of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. Assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at the closing rate and the result of overseas operations at actual rate are recognised in Other Comprehensive Income. |
Operating and finance lease commitments |
At inception the group assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement. |
(i) Finance leased assets |
Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases. |
Finance leases are capitalised at commencement of the lease as assets at the fair value of the leased asset or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined the group’s incremental borrowing rate is used. Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset. |
Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date. |
The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a constant rate of charge on the balance of the capital repayments outstanding. |
(ii) Operating leased assets |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the Income Statement on a straight-line basis over the period of the lease. |
(iii) Lease incentives |
Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the calculation of present value of minimum lease payments. |
Incentives received to enter into an operating lease are credited to the Income Statement, to reduce the lease expense, on a straight-line basis over the period of the lease. |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
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 income statement in the period to which they relate. |
Share capital |
Ordinary shares are classified as equity. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Hire and associated sales | 68,710,721 | 50,257,953 |
Machine sales | 324,741 | 335,288 |
Training | 350,744 | 378,127 |
69,386,206 | 50,971,368 |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 31,150,148 | 27,654,354 |
Rest of world | 38,236,058 | 23,317,014 |
69,386,206 | 50,971,368 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 13,297,246 | 10,506,489 |
Social security costs | 1,038,636 | 903,563 |
Other pension costs | 206,983 | 166,923 |
14,542,865 | 11,576,975 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administration | 193 | 167 |
Engineering and distribution | 298 | 216 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 183,729 | 155,349 |
Key management compensation |
Key management includes the directors and members of senior management of the group. The compensation paid or payable to key management for employee service amounted to £1,237,280 (2023: £2,136,350) for the year ended 31 March 2024. |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 1,956 | 1,551 |
Depreciation - owned assets | 18,942,550 | 13,807,979 |
Profit on disposal of fixed assets | (229,877 | ) | (23,403 | ) |
Goodwill amortisation | 1,148,598 | 1,148,598 |
Audit of the parent company |
and the group's consolidated |
financial statements | 16,136 | 17,075 |
Audit of the company's |
subsidiaries | 27,800 | 21,400 |
Foreign exchange differences | 93,401 | (36,941 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Loan interest | 3,653,953 | 1,186,297 |
Finance charges | 81,319 | 22,768 |
Hire purchase | 997,787 | 568,218 |
4,733,059 | 1,777,283 |
7. | 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 | 1,876,986 | 1,238,370 |
Adjustment to prior years | (43,245 | ) | 9,135 |
Total current tax | 1,833,741 | 1,247,505 |
Deferred tax | 278,289 | 307,139 |
Tax on profit | 2,112,030 | 1,554,644 |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
7. | 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 | 8,416,157 | 6,339,853 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
2,104,039 |
1,204,572 |
Effects of: |
Expenses not deductible for tax purposes | 573,223 | 248,537 |
Other timing differences | (57,831 | ) | - |
Chargeable gains | 2,314 | 9,690 |
Adjustments in respect of prior years | (6,933 | ) | 26,535 |
Super deduction | - | (53,446 | ) |
Changes in tax rates | - | 69,538 |
Non taxable income | (33,535 | ) | (9,092 | ) |
Tax rate differences between jurisdictions | (469,247 | ) | 58,310 |
Total tax charge | 2,112,030 | 1,554,644 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Foreign exchange translation differences | (298,783 | ) | - | (298,783 | ) |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Foreign exchange translation differences | (626,785 | ) | - | (626,785 | ) |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 | 11,485,984 |
AMORTISATION |
At 1 April 2023 | 2,607,444 |
Amortisation for year | 1,148,598 |
At 31 March 2024 | 3,756,042 |
NET BOOK VALUE |
At 31 March 2024 | 7,729,942 |
At 31 March 2023 | 8,878,540 |
10. | TANGIBLE FIXED ASSETS |
Group |
Long |
Freehold | leasehold |
land & | land & | Plant and |
buildings | buildings | machinery |
£ | £ | £ |
COST |
At 1 April 2023 | 26,974 | 927,898 | 93,608,339 |
Additions | - | 234,205 | 32,664,026 |
Disposals | - | - | (517,334 | ) |
Exchange differences | - | - | (1,273,490 | ) |
At 31 March 2024 | 26,974 | 1,162,103 | 124,481,541 |
DEPRECIATION |
At 1 April 2023 | 20,861 | 189,774 | 26,495,783 |
Charge for year | 1,956 | 181,628 | 18,358,878 |
Eliminated on disposal | - | - | (353,288 | ) |
Exchange differences | - | - | (383,334 | ) |
At 31 March 2024 | 22,817 | 371,402 | 44,118,039 |
NET BOOK VALUE |
At 31 March 2024 | 4,157 | 790,701 | 80,363,502 |
At 31 March 2023 | 6,113 | 738,124 | 67,112,556 |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 | 303,604 | 1,256,973 | 500 | 96,124,288 |
Additions | 123,024 | 569,813 | - | 33,591,068 |
Disposals | - | (257,880 | ) | - | (775,214 | ) |
Exchange differences | - | (6,318 | ) | (11 | ) | (1,279,819 | ) |
At 31 March 2024 | 426,628 | 1,562,588 | 489 | 127,660,323 |
DEPRECIATION |
At 1 April 2023 | 88,473 | 203,223 | 294 | 26,998,408 |
Charge for year | 72,119 | 327,888 | 81 | 18,942,550 |
Eliminated on disposal | - | (183,676 | ) | - | (536,964 | ) |
Exchange differences | - | (1,541 | ) | (5 | ) | (384,880 | ) |
At 31 March 2024 | 160,592 | 345,894 | 370 | 45,019,114 |
NET BOOK VALUE |
At 31 March 2024 | 266,036 | 1,216,694 | 119 | 82,641,209 |
At 31 March 2023 | 215,131 | 1,053,750 | 206 | 69,125,880 |
The net carrying amount of assets held under finance leases included in plant, machinery, fixtures and fittings and motor vehicles is £26,424,188 (2023: £26,154,583). |
Company |
Plant and | Motor | Computer |
machinery | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Exchange differences | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Exchange differences | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Sudhir Equipment Rental Company |
Registered office: Saudi Arabia |
Nature of business: Leasing of construction and leasing equipment |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 15,003,176 | 6,785,730 |
Profit for the year | 8,460,883 | 4,609,221 |
Star Platforms Limited |
Registered office: United Kingdom |
Nature of business: Powered access hire and sales |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 8,593,731 | 7,332,797 |
Profit for the year | 2,243,033 | 1,485,922 |
Star Power Hire Limited |
Registered office: United Kingdom |
Nature of business: Plant and machinery hire and sales |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 479,336 | 695,820 |
(Loss)/profit for the year | (216,484 | ) | 34,108 |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
12. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 1,848,322 | 927,037 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 16,030,154 | 13,260,477 |
Amounts owed by group undertakings | - | - |
Other debtors | 102,303 | 239,201 |
VAT | - | 284,652 |
Deferred tax asset | - | - | - | 53,270 |
Prepayments | 1,450,806 | 799,020 |
17,583,263 | 14,583,350 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 16) | 6,596,684 | 7,198,986 |
Trade creditors | 8,830,879 | 10,476,258 |
Amounts owed to group undertakings | 60,988,260 | 50,851,655 |
Tax | 1,158,537 | 1,204,226 |
Social security and other taxes | 216,613 | 197,995 |
VAT | 771,959 | - | - | - |
Other creditors | 1,059,432 | 553,213 |
Accrued expenses | 425,988 | 411,803 |
80,048,352 | 70,894,136 |
Included within Other creditors are pension contributions payable of £39,333 (2023: £2,847). |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 16) | 14,665,438 | 13,062,450 |
Accruals and deferred income | 272,674 | 167,271 |
14,938,112 | 13,229,721 |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 6,596,684 | 7,198,986 |
Between one and five years | 14,665,438 | 13,062,450 |
21,262,122 | 20,261,436 |
The future minimum hire purchase lease payments are as follows: |
2024 | 2023 |
£ | £ |
Not later than one year | 7,251,132 | 6,651,767 |
Later than one year and not later than five years | 15,170,974 | 14,743,037 |
Total gross payments | 22,422,106 | 21,394,804 |
Less: finance charges | (1,159,984 | ) | (1,133,368 | ) |
Carrying amount of liability | 21,262,122 | 20,629,436 |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 1,667,879 | 1,682,857 |
Between one and five years | 3,796,718 | 4,357,436 |
In more than five years | 1,518,570 | 2,062,455 |
6,983,167 | 8,102,748 |
Leases relate to commercial vehicles and other motor vehicles and lease for the properties the group trades from. |
The finance leases are secured by the lessors' title to the leased assets and the directors consider that the carrying amount of the obligations under the finance leases approximate to their fair value. Interest rates underlying all obligations are fixed at respective contract rates. |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 21,262,122 | 20,261,436 |
The hire purchase contracts are secured by the lessors' title to the leased assets and the directors consider that the carrying amount of the obligations under the finance leases approximate to their fair value. Interest rates underlying all obligations are fixed at respective contract rates. |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 2,576,916 | 2,423,276 |
Tax losses carried forward | (540 | ) | (138,853 | ) | ( |
) |
Other timing differences | (16,524 | ) | (2,860 | ) | - | - |
2,559,852 | 2,281,563 | 13,313 | - |
Other provisions | 12,150 | 24,659 | 12,150 | 24,659 |
Aggregate amounts | 2,572,002 | 2,306,222 | 25,463 | 24,659 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 April 2023 | 2,281,563 | 24,659 |
Charge to Income Statement during year | 278,289 | - |
End of service benefits | - | (12,509 | ) |
Balance at 31 March 2024 | 2,559,852 | 12,150 |
Company |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 April 2023 | ( |
) |
Charge to Income Statement during year |
Balance at 31 March 2024 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 1 | 250,000 | 250,000 |
The holder of the ordinary shares is entitled to receive dividends as declared from time to time, and is entitled to one vote per share at meetings of the group. All shares rank equally with regard to the Company's residual assets. |
SUDHIR POWER (UK) LIMITED (REGISTERED NUMBER: 10487556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 April 2023 | 7,168,826 |
Profit for the year | 6,304,127 |
Foreign exchange translation |
differences | (298,783 | ) |
At 31 March 2024 | 13,174,170 |
Company |
Retained |
earnings |
£ |
At 1 April 2023 |
Deficit for the year | ( |
) |
Foreign exchange translation |
differences | (773 | ) |
At 31 March 2024 |
21. | ULTIMATE PARENT COMPANY |
Sudhir Power Limited, a company incorporated in India, owns the entire share capital of Sudhir Power (UK) Limited and is considered the ultimate parent company. |
22. | RELATED PARTY DISCLOSURES |
The group 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. |
During the year the company and group incurred interest charges on a loan provided by Sudhir Power Limited, the ultimate parent company, of £3,653,953 (2023: £1,186,297). The amount payable at the year end including interest amounted to £60,685,820 (2023: £50,402,963) and is included within Amounts owed to group undertaking within creditors. |
During the year the company made purchases of £223,223 (2023: £232,285) from Sudhir Gensets FZE, a company owned by Sudhir Power Limited, the ultimate parent company. At the year end the company owed £302,440 (2023: £448,692). |
During the year the company and group made purchases of £183,729 (2023: £155,349) from Eterniti Limited, a company with a common directorship. At the year end the company and group owed £46,584 (2023: £nil). |
All related party loans are considered repayable on demand. |
23. | ULTIMATE CONTROLLING PARTY |
R Seth, by virtue of his majority shareholding in the ultimate parent company, Sudhir Power Limited is considered the ultimate controlling party. |