Company registration number 01220778 (England and Wales)
LITTLER MACHINERY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
LITTLER MACHINERY LIMITED
COMPANY INFORMATION
Directors
Mr R A Y Littler
Ms A E Littler
Secretary
Mrs L Littler
Company number
01220778
Registered office
90 Stephenson Way
Formby Business Park
Formby
Merseyside
L37 8EG
Auditor
Xeinadin Audit Limited
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9QP
LITTLER MACHINERY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
LITTLER MACHINERY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 29 February 2024.

 

Littler Machinery Limited is a company which operate in the following sectors:

 

Review of the business

The business has had to navigate a rapidly changing and difficult economic landscape marked by the persistent inflation rising interest rates, and geopolitical tensions. Market demand and supply remained generally good. We maintained a focus on specialist equipment and a good variety of stock to maintain an agile edge across the markets to quickly react in line with conditions. Given the general sector uncertainty and waste streams seemingly starting to change we placed heavy focus on retaining key rental sites and secured new contracts when possible. We effectively managed exchange rate volatility by hedging currency risks and optimizing pricing strategies. At year end, we now occupy the new facility and site, with our attention now focusing on replenishing any cash flow deficit from this development. We have commenced, at a strategic pace, development of the rear part of site.

 

This resulted in the following against prior year:

 

Turnover for the year was £14,730,145 (2023: £14,381,801) and profits after tax were £889,524 (2023: £1,761,205). Dividends paid were £425,000 (2023: £450,000) which resulted in retained reserves for the year of £5,363,176 (2023: £4,898,652). Net assets for now stand at £4,901,652 (2023: £3,590,447).

Principal risks and uncertainties

Demand and general construction sector remaining strong, despite the increases in interest rates. We are now however seeing an effect of the increased volume of new equipment both in the UK and worldwide markets.

 

Predicting market pricing / demand ahs been difficult, partly due to the above and partly due to exchange rates not particularly suiting market demand at the time. Our focus remains on exporting machines, rather than importing at a price advantage.

 

However, as previously stated upcoming political events and frequently changing conditions mean that regular export markets cannot be relied upon in ways they have been in recent history.

 

Management of cashflow at director level remains a core requirement, as the business is to remain in a position where we can react to potential package or volume opportunities in the same way we do for single items.

Development and performance

Our main objectives for this year are to continue strong trading and to facilitate a smooth transition into the new office & yard.

 

We still aim to consolidate our existing rentals and seek opportunities in other specialist rental areas.

Key performance indicators

The following key performance indicators have been identified by the directors as the most relevant to measure the performance of the company.

 

Total Revenue £14,730,145 (2023: £14,381,801)

 

Gross Profit £1,845,318 (2023: £2,394,817)

Gross Profit percentage 12.5% (2023: 16.65%)

 

Operating profit £1,250,281 (2023: £2,165,743)

Operating profit percentage 8.49% (2023: 15.06%)

LITTLER MACHINERY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
Other performance indicators

 

On behalf of the board

Mr R A Y Littler
Director
28 November 2024
LITTLER MACHINERY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 29 February 2024.

Principal activities

The principal activity of the company continued to be that of sale and hire of machinery

Results and dividends

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

Ordinary dividends were paid amounting to £425,000. The directors do not recommend payment of a final dividend.

Directors

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

Mr R A Y Littler
Ms A E Littler
Future developments

During the next 12 months we will complete our new facility. We are looking to expand specialist rental machine offering. We are also looking to add a workshop facility.

Auditor

Xeinadin Audit Limited was appointed as auditor in the year. Xeinadin Audit Limited will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr R A Y Littler
Director
28 November 2024
LITTLER MACHINERY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -

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

 

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

 

 

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

LITTLER MACHINERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LITTLER MACHINERY LIMITED
- 5 -
Opinion

We have audited the financial statements of Littler Machinery Limited (the 'company') for the year ended 29 February 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

LITTLER MACHINERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LITTLER MACHINERY LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

LITTLER MACHINERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LITTLER MACHINERY LIMITED (CONTINUED)
- 7 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including

fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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.

LITTLER MACHINERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LITTLER MACHINERY LIMITED (CONTINUED)
- 8 -
Helen Furlong FCCA
Senior Statutory Auditor
For and on behalf of Xeinadin Audit Limited
28 November 2024
Accountants
Statutory Auditor
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9QP
LITTLER MACHINERY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
14,730,145
14,381,801
Cost of sales
(12,884,827)
(11,986,984)
Gross profit
1,845,318
2,394,817
Administrative expenses
(979,642)
(505,819)
Other operating income
384,605
276,745
Operating profit
4
1,250,281
2,165,743
Interest payable and similar expenses
7
(231,937)
(217,273)
Fair value gains and losses on investment properties
8
-
467,902
Profit before taxation
1,018,344
2,416,372
Tax on profit
9
(128,820)
(655,167)
Profit for the financial year
889,524
1,761,205
Retained earnings brought forward
4,898,652
3,587,447
Dividends
10
(425,000)
(450,000)
Retained earnings carried forward
5,363,176
4,898,652

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

LITTLER MACHINERY LIMITED
BALANCE SHEET
AS AT 29 FEBRUARY 2024
29 February 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
10,441,653
5,920,317
Investment property
12
3,033,050
3,033,050
13,474,703
8,953,367
Current assets
Stocks
13
3,095,134
2,769,214
Debtors
14
2,958,872
1,777,296
Cash at bank and in hand
431,320
10
6,485,326
4,546,520
Creditors: amounts falling due within one year
15
(10,349,775)
(5,991,275)
Net current liabilities
(3,864,449)
(1,444,755)
Total assets less current liabilities
9,610,254
7,508,612
Creditors: amounts falling due after more than one year
16
(3,046,786)
(1,777,127)
Provisions for liabilities
Deferred tax liability
19
1,197,292
829,833
(1,197,292)
(829,833)
Net assets
5,366,176
4,901,652
Capital and reserves
Called up share capital
21
1,470
1,470
Capital redemption reserve
1,530
1,530
Profit and loss reserves
5,363,176
4,898,652
Total equity
5,366,176
4,901,652

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

The financial statements were approved by the board of directors and authorised for issue on 28 November 2024 and are signed on its behalf by:
Mr R A Y Littler
Director
Company registration number 01220778 (England and Wales)
LITTLER MACHINERY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
3,297,410
2,151,308
Interest paid
(231,937)
(217,273)
Income taxes paid
(117,928)
(174,996)
Net cash inflow from operating activities
2,947,545
1,759,039
Investing activities
Purchase of tangible fixed assets
(6,916,279)
(2,617,493)
Proceeds from disposal of tangible fixed assets
2,969,916
1,748,429
Repayment of loans
267,278
47,903
Net cash used in investing activities
(3,679,085)
(821,161)
Financing activities
Repayment of bank loans
(324,998)
(299,985)
Payment of finance leases obligations
3,080,883
(410,554)
Dividends paid
(425,000)
(450,000)
Net cash generated from/(used in) financing activities
2,330,885
(1,160,539)
Net increase/(decrease) in cash and cash equivalents
1,599,345
(222,661)
Cash and cash equivalents at beginning of year
(1,221,856)
(999,195)
Cash and cash equivalents at end of year
377,489
(1,221,856)
Relating to:
Cash at bank and in hand
431,320
10
Bank overdrafts included in creditors payable within one year
(53,831)
(1,221,866)
LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 12 -
1
Accounting policies
Company information

Littler Machinery Limited is a private company limited by shares incorporated in England and Wales. The registered office is 90 Stephenson Way, Formby Business Park, Formby, Merseyside, L37 8EG.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At truethe time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and not less than 12 months from the date of approval of these financial statements.

 

Results since the year indicate that the company's profitability will be maintained.

 

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

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

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

Freehold land and buildings
2% straight line
Plant and equipment
12.5% straight line
Fixtures and fittings
10% straight line
Motor vehicles
25% straight line

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

LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.6
Impairment of fixed assets

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

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

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

1.9
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.10
Equity instruments

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

1.11
Taxation

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

Current tax

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

Deferred tax

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

1.12
Employee benefits

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

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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

1.13
Retirement benefits

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

1.14
Leases

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

 

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

LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Machine sales
13,513,966
13,465,061
Machine Hire income
1,216,179
916,740
14,730,145
14,381,801
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
3,612,069
5,699,979
Europe
2,292,830
578,449
Rest of the world
8,825,246
8,103,373
14,730,145
14,381,801
2024
2023
£
£
Other revenue
Rent receivable
323,173
276,745
LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
21,364
7,153
Fees payable to the company's auditor for the audit of the company's financial statements
5,700
5,300
Depreciation of owned tangible fixed assets
593,866
447,971
Profit on disposal of tangible fixed assets
(1,168,839)
(934,923)
Operating lease charges
95,140
-
5
Employees

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

2024
2023
Number
Number
Sales and servicing
4
6
Administration
6
4
Total
10
10

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
426,609
381,177
Social security costs
42,820
36,740
Pension costs
6,353
6,839
475,782
424,756
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
95,157
94,207
Company pension contributions to defined contribution schemes
1,321
1,431
96,478
95,638

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 18 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
51,696
18,596
Other interest on financial liabilities
119,107
129,679
170,803
148,275
Other finance costs:
Interest on finance leases and hire purchase contracts
58,134
68,735
Other interest
3,000
263
231,937
217,273
8
Amounts written off investments
2024
2023
£
£
Changes in the fair value of investment properties
-
467,902
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(238,639)
403,169
Deferred tax
Origination and reversal of timing differences
367,459
251,998
Total tax charge
128,820
655,167
LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
9
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,018,344
2,416,372
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
254,586
459,111
Tax effect of expenses that are not deductible in determining taxable profit
9,067
1,406
Depreciation on assets not qualifying for tax allowances
22,817
1,616
Other permanent differences
(157,650)
(7,248)
Effect of change in future rate of taxation
-
0
200,282
Taxation charge for the year
128,820
655,167
10
Dividends
2024
2023
£
£
Interim paid
425,000
450,000
LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 20 -
11
Tangible fixed assets
Freehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
431,473
2,564,982
3,636,474
100,721
86,089
6,819,739
Additions
-
0
1,697,267
5,003,492
27,568
187,952
6,916,279
Disposals
-
0
-
0
(2,527,486)
-
0
(56,204)
(2,583,690)
Transfers
4,137,844
(4,137,844)
-
0
-
0
-
0
-
0
At 29 February 2024
4,569,317
124,405
6,112,480
128,289
217,837
11,152,328
Depreciation and impairment
At 1 March 2023
70,766
-
0
725,446
45,632
57,578
899,422
Depreciation charged in the year
91,266
-
0
438,362
9,780
54,458
593,866
Eliminated in respect of disposals
-
0
-
0
(740,460)
-
0
(42,153)
(782,613)
At 29 February 2024
162,032
-
0
423,348
55,412
69,883
710,675
Carrying amount
At 29 February 2024
4,407,285
124,405
5,689,132
72,877
147,954
10,441,653
At 28 February 2023
360,707
2,564,982
2,911,028
55,089
28,511
5,920,317
12
Investment property
2024
£
Fair value
At 1 March 2023 and 29 February 2024
3,033,050

The fair value of the investment property has been arrived at on the basis of a valuation carried out by CBRE in July 2023.

13
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,095,134
2,769,214

An impairment loss of £1,441,713 (2023: £728,282 ) was recognised in cost of sales against stock during the year due to slow moving and obsolete items.

LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 21 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,547,987
1,017,699
Corporation tax recoverable
238,639
-
0
Other debtors
1,148,718
740,778
Prepayments and accrued income
23,528
18,819
2,958,872
1,777,296
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
369,981
1,639,891
Obligations under finance leases
18
2,151,492
563,391
Trade creditors
7,332,502
3,254,869
Corporation tax
285,402
403,330
Other taxation and social security
10,277
13,790
Other creditors
14,653
2,377
Accruals and deferred income
185,468
113,627
10,349,775
5,991,275
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
1,016,723
1,239,846
Obligations under finance leases
18
2,030,063
537,281
3,046,786
1,777,127

 

Amounts included above which fall due after five years are as follows:
Payable by instalments
(321,586)
(400,499)
LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 22 -
17
Loans and overdrafts
2024
2023
£
£
Bank loans
1,332,873
1,657,871
Bank overdrafts
53,831
1,221,866
1,386,704
2,879,737
Payable within one year
369,981
1,639,891
Payable after one year
1,016,723
1,239,846

The company has 4 long-term bank loans each secured by a by fixed charge over each of the related investment properties. The bank overdraft is secured by a fixed and floating charge on the other company assets.

 

3 bank loans are repayable by instalments at 2.75% above 3 month Libor and one at 2.5% above base rate, they include £321,585 (2023 £400,499) due to be repaid after more than 5 years.

 

The company has 2 CBILS loans repayable by instalments at 6.34% and 12.39% APR.

18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
2,151,492
563,391
In two to five years
2,030,063
537,281
4,181,555
1,100,672

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,084,990
717,531
Investment property
112,302
112,302
1,197,292
829,833
LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
19
Deferred taxation
(Continued)
- 23 -
2024
Movements in the year:
£
Liability at 1 March 2023
829,833
Charge to profit or loss
367,459
Liability at 29 February 2024
1,197,292
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
6,353
6,839

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At 29 February 2024 there were outstanding contributions amounting to £1,279 (2023: £986) which were included in creditors.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,470
1,470
1,470
1,470
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
889,524
1,761,205
Adjustments for:
Taxation charged
128,820
655,167
Finance costs
231,937
217,273
Gain on disposal of tangible fixed assets
(1,168,839)
(934,923)
Fair value gain on investment properties
-
0
(467,902)
Depreciation and impairment of tangible fixed assets
593,866
447,971
Movements in working capital:
Increase in stocks
(325,920)
(892,494)
Increase in debtors
(1,210,215)
(991,869)
Increase in creditors
4,158,237
2,356,880
Cash generated from operations
3,297,410
2,151,308
LITTLER MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 24 -
24
Analysis of changes in net debt
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
10
431,310
431,320
Bank overdrafts
(1,221,866)
1,168,035
(53,831)
(1,221,856)
1,599,345
377,489
Borrowings excluding overdrafts
(1,657,871)
324,998
(1,332,873)
Obligations under finance leases
(1,100,672)
(3,080,883)
(4,181,555)
(3,980,399)
(1,156,540)
(5,136,939)
2024-02-292023-03-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.301Mr R A Y LittlerMs A E LittlerMrs L Littler012207782023-03-012024-02-2901220778bus:Director12023-03-012024-02-2901220778bus:Director22023-03-012024-02-2901220778bus:CompanySecretary12023-03-012024-02-2901220778bus:RegisteredOffice2023-03-012024-02-29012207782024-02-29012207782022-03-012023-02-2801220778core:RetainedEarningsAccumulatedLosses2023-02-2801220778core:RetainedEarningsAccumulatedLosses2022-02-2801220778core:ShareCapital2024-02-2901220778core:ShareCapital2023-02-2801220778core:CapitalRedemptionReserve2024-02-2901220778core:CapitalRedemptionReserve2023-02-2801220778core:RetainedEarningsAccumulatedLosses2024-02-2901220778core:RetainedEarningsAccumulatedLosses2023-02-28012207782023-02-2801220778core:ShareCapitalOrdinaryShares2024-02-2901220778core:ShareCapitalOrdinaryShares2023-02-2801220778core:RetainedEarningsAccumulatedLosses2022-03-012023-02-2801220778core:LandBuildingscore:OwnedOrFreeholdAssets2024-02-2901220778core:ConstructionInProgressAssetsUnderConstruction2024-02-2901220778core:PlantMachinery2024-02-2901220778core:FurnitureFittings2024-02-2901220778core:MotorVehicles2024-02-2901220778core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-2801220778core:ConstructionInProgressAssetsUnderConstruction2023-02-2801220778core:PlantMachinery2023-02-2801220778core:FurnitureFittings2023-02-2801220778core:MotorVehicles2023-02-2801220778core:CurrentFinancialInstrumentscore:WithinOneYear2024-02-2901220778core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-2801220778core:Non-currentFinancialInstrumentscore:AfterOneYear2024-02-2901220778core:Non-currentFinancialInstrumentscore:AfterOneYear2023-02-2801220778core:CurrentFinancialInstruments2024-02-2901220778core:CurrentFinancialInstruments2023-02-2801220778core:Non-currentFinancialInstruments2024-02-2901220778core:Non-currentFinancialInstruments2023-02-280122077812023-03-012024-02-290122077812022-03-012023-02-28012207782023-02-28012207782022-02-2801220778core:WithinOneYear2024-02-2901220778core:WithinOneYear2023-02-2801220778core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-012024-02-2901220778core:PlantMachinery2023-03-012024-02-2901220778core:FurnitureFittings2023-03-012024-02-2901220778core:MotorVehicles2023-03-012024-02-2901220778core:UKTax2023-03-012024-02-2901220778core:UKTax2022-03-012023-02-280122077822023-03-012024-02-290122077822022-03-012023-02-280122077832023-03-012024-02-290122077832022-03-012023-02-2801220778core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-2801220778core:ConstructionInProgressAssetsUnderConstruction2023-02-2801220778core:PlantMachinery2023-02-2801220778core:FurnitureFittings2023-02-2801220778core:MotorVehicles2023-02-2801220778core:ConstructionInProgressAssetsUnderConstruction2023-03-012024-02-2901220778core:BetweenTwoFiveYears2024-02-2901220778core:BetweenTwoFiveYears2023-02-2801220778bus:PrivateLimitedCompanyLtd2023-03-012024-02-2901220778bus:FRS1022023-03-012024-02-2901220778bus:Audited2023-03-012024-02-2901220778bus:FullAccounts2023-03-012024-02-29xbrli:purexbrli:sharesiso4217:GBP