REGISTERED NUMBER: 05198252 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
TOWER HOLDINGS LIMITED |
REGISTERED NUMBER: 05198252 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
TOWER HOLDINGS LIMITED |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 17 |
TOWER HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
2 Manor Square |
Solihull |
West Midlands |
B91 3PX |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their strategic report of the company and the group for the year ended 30 April 2024. |
The group primarily trades as an electrical and mechanical contractor in the construction sector, providing plumbing, electrical, heating, and associated services within the new build and care provider market. |
REVIEW OF BUSINESS |
The Directors believe the business has performed well in a challenging year and market, while continued cost pressures from persistently high inflation impacting direct costs and overheads. Achieving a consistent operating margin remains a challenge due to the uncertainty of future cost fluctuations, but the directors review cost changes as they occur and are confident the Group can continue to operate profitably. |
Turnover has fallen by 6.4% to £14,671,875, due to lower levels of activity across the sector caused by higher borrowing costs, but new customers have been introduced during the year, allowing the Group to remain competitive within the sector. Gross profit has remained relatively flat at £1,324,295 as the Group has successfully managed cost pressures during the year. |
At the year end, the Group had cash available of £1,797,981 and net assets of £2,835,737. These changes were largely driven by dividends issued in the year of £361,375, along with continued investments in fixed assets and timing differences in the payments and receipts of supplier invoices and trade receivables respectively. Net cash available was £1,363,212, when accounting for supplier cheques not yet presented. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Staff: |
Access to suitably trained staff remains a key risk to the Group, with shortages of skilled staff and above inflationary rises in pay across the sector leading to higher costs and higher turnover rates. The directors mitigate this risk with a series of internal policies designed to upskill, reward and retain existing staff. |
Supply chain: |
Supplier pricing and supply chain issues are a constant risk to the Groups business activities, with higher material prices leading to contractions in project margins. The directors mitigate this risk by maintaining their relationships with existing suppliers to ensure a timely supply of materials as required, and by maintaining an internal purchasing process which prevents overreliance on a single supplier or late ordering of goods. |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES (CONT) |
Cash management/Credit risk: |
All businesses suffer uncertainty around the recoverability of their receivables, but the directors actively review cash reserves within the group to ensure sufficient reserves are available for working capital, and controls around payment terms with customers and the recovery of debts helps to mitigate the risk associated with receivables. |
The group does not utilise any external financing apart from hire purchase leases for business vehicles. |
Health and Safety: |
Working within the construction sector means that the Group takes the risk of a health & safety incident seriously, and the directors mitigate this risk by ensuring all staff undergo appropriate training and perform risk assessments. All staff on site for projects are CSCS certified to ensure that they are appropriately qualified for their roles. The Group maintains appropriate certifications in relation to health & safety compliance. |
The directors are confident that the Group remains a competitive business in the market and that the level of service offered to their clients will continue to allow the business to continue to grow. |
ON BEHALF OF THE BOARD: |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2024. |
DIVIDENDS |
Dividends totalling £361,375 were paid during the year ended 30 April 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Flint & Thompson, 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 |
TOWER HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Tower Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 April 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 |
TOWER HOLDINGS 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 four, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TOWER HOLDINGS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
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: |
- discussion with directors and management of the nature of the industry, control environment and business performance; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
- any matters we have identified having reviewed the group's procedures for complying with laws and regulations and whether they were aware of any instances of non-compliance. The key laws we considered in this context included the Companies Act 2006, taxation legislation, data protection and health and safety regulations. |
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by: |
- reviewing balance sheet control accounts to ensure these are properly reconciled; |
- addressing the risks of fraud through management override of controls by performing journal entry testing; |
- performing analytical procedures to identify any unusual or unexpected relationships that may include risks of material misstatement due to fraud. |
- enquiring with management concerning actual and potential litigation claims. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. |
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 |
Statutory Auditors |
2 Manor Square |
Solihull |
West Midlands |
B91 3PX |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 14,671,875 | 15,674,148 |
Cost of sales | 13,347,580 | 14,377,143 |
GROSS PROFIT | 1,324,295 | 1,297,005 |
Administrative expenses | 1,278,808 | 1,280,167 |
OPERATING PROFIT | 4 | 45,487 | 16,838 |
Interest receivable and similar income | 34,458 | 17,862 |
79,945 | 34,700 |
Interest payable and similar expenses | 5 | 8,757 | 12,800 |
PROFIT BEFORE TAXATION | 71,188 | 21,900 |
Tax on profit | 6 | 38,009 | (7 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 33,179 | 21,907 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 33,179 | 21,907 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
33,179 |
21,907 |
Total comprehensive income attributable to: |
Owners of the parent | 33,179 | 21,907 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
CONSOLIDATED BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 611,066 | 524,967 |
Investments | 10 | - | - |
611,066 | 524,967 |
CURRENT ASSETS |
Debtors | 11 | 2,897,701 | 2,577,070 |
Cash at bank | 1,797,981 | 3,066,810 |
4,695,682 | 5,643,880 |
CREDITORS |
Amounts falling due within one year | 12 | 2,339,305 | 2,906,565 |
NET CURRENT ASSETS | 2,356,377 | 2,737,315 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,967,443 |
3,262,282 |
CREDITORS |
Amounts falling due after more than one year |
13 |
(69,810 |
) |
(68,705 |
) |
PROVISIONS FOR LIABILITIES | 16 | (61,896 | ) | (29,644 | ) |
NET ASSETS | 2,835,737 | 3,163,933 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 202 | 202 |
Retained earnings | 18 | 2,835,535 | 3,163,731 |
SHAREHOLDERS' FUNDS | 2,835,737 | 3,163,933 |
The financial statements were approved by the Board of Directors and authorised for issue on 8 January 2025 and were signed on its behalf by: |
A S Wood - Director |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
COMPANY BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 7,167 | 38,726 |
The financial statements were approved by the Board of Directors and authorised for issue on |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2022 | 202 | 3,461,824 | 3,462,026 |
Changes in equity |
Dividends | - | (320,000 | ) | (320,000 | ) |
Total comprehensive income | - | 21,907 | 21,907 |
Balance at 30 April 2023 | 202 | 3,163,731 | 3,163,933 |
Changes in equity |
Dividends | - | (361,375 | ) | (361,375 | ) |
Total comprehensive income | - | 33,179 | 33,179 |
Balance at 30 April 2024 | 202 | 2,835,535 | 2,835,737 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2024 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (443,724 | ) | 170,082 |
Interest paid | (8,757 | ) | (12,800 | ) |
Tax paid | (102,318 | ) | 2,880 |
Net cash from operating activities | (554,799 | ) | 160,162 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (148,785 | ) | (101,219 | ) |
Sale of tangible fixed assets | - | 19,300 |
Interest received | 34,458 | 17,862 |
Net cash from investing activities | (114,327 | ) | (64,057 | ) |
Cash flows from financing activities |
Capital repayments in year | 7,020 | (50,073 | ) |
Amount withdrawn by directors | (10,000 | ) | - |
Equity dividends paid | (361,375 | ) | (320,000 | ) |
Net cash from financing activities | (364,355 | ) | (370,073 | ) |
Decrease in cash and cash equivalents | (1,033,481 | ) | (273,968 | ) |
Cash and cash equivalents at beginning of year |
2 |
2,396,693 |
2,670,661 |
Cash and cash equivalents at end of year | 2 | 1,363,212 | 2,396,693 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 71,188 | 21,900 |
Depreciation charges | 61,086 | 68,647 |
Loss/(profit) on disposal of fixed assets | 1,600 | (13,063 | ) |
Finance costs | 8,757 | 12,800 |
Finance income | (34,458 | ) | (17,862 | ) |
108,173 | 72,422 |
Increase in trade and other debtors | (320,631 | ) | (719,846 | ) |
(Decrease)/increase in trade and other creditors | (231,266 | ) | 817,506 |
Cash generated from operations | (443,724 | ) | 170,082 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2024 |
30/4/24 | 1/5/23 |
£ | £ |
Cash and cash equivalents | 1,797,981 | 3,066,810 |
Bank overdrafts | (434,769 | ) | (670,117 | ) |
1,363,212 | 2,396,693 |
Year ended 30 April 2023 |
30/4/23 | 1/5/22 |
£ | £ |
Cash and cash equivalents | 3,066,810 | 3,675,414 |
Bank overdrafts | (670,117 | ) | (1,004,753 | ) |
2,396,693 | 2,670,661 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/5/23 | Cash flow | At 30/4/24 |
£ | £ | £ |
Net cash |
Cash at bank | 3,066,810 | (1,268,829 | ) | 1,797,981 |
Bank overdrafts | (670,117 | ) | 235,348 | (434,769 | ) |
2,396,693 | (1,033,481 | ) | 1,363,212 |
Debt |
Finance leases | (112,292 | ) | (7,020 | ) | (119,312 | ) |
(112,292 | ) | (7,020 | ) | (119,312 | ) |
Total | 2,284,401 | (1,040,501 | ) | 1,243,900 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
Tower Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Long leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Financial instruments |
i) Loans and receivables |
All loans and borrowings are initially recognised at fair value, net of transaction costs incurred. Following initial recognition interest-bearing loans and borrowings are subsequently stated at amortised cost using the effective interest method. |
Gains and losses are recognised in the income statement when the instruments are derecognised or impaired. Premia, discounts and other costs are recognised in the income statement through the amortisation process. |
ii) Trade receivables |
Trade receivables do not carry any interest receivable and are initially recognised at fair value and subsequently at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. |
iii) Trade payables |
Trade payables are not interest bearing and are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method. |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 138,200 | 336,678 |
Other pension costs | 68,443 | 103,372 |
206,643 | 440,050 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 3 | 3 |
Administration | 7 | 7 |
Management and accounts | 10 | 10 |
Production | 65 | 70 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
2024 | 2023 |
£ | £ |
Directors' remuneration | 18,200 | 17,678 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 20,523 | 22,720 |
Depreciation - assets on hire purchase contracts | 40,563 | 45,926 |
Loss/(profit) on disposal of fixed assets | 1,600 | (13,063 | ) |
Auditors' remuneration | 3,620 | 18,780 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Lease charges | 8,757 | 12,800 |
6. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 5,757 | - |
Deferred tax | 32,252 | (7 | ) |
Tax on profit | 38,009 | (7 | ) |
7. | 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. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary B shares of £1 each |
Interim | 361,375 | 320,000 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Long | and |
property | leasehold | fittings |
£ | £ | £ |
COST |
At 1 May 2023 | 100,000 | 2,420 | 47,976 |
Additions | 10,000 | - | - |
Disposals | - | - | - |
At 30 April 2024 | 110,000 | 2,420 | 47,976 |
DEPRECIATION |
At 1 May 2023 | - | 2,420 | 30,741 |
Charge for year | - | - | 3,447 |
Eliminated on disposal | - | - | - |
At 30 April 2024 | - | 2,420 | 34,188 |
NET BOOK VALUE |
At 30 April 2024 | 110,000 | - | 13,788 |
At 30 April 2023 | 100,000 | - | 17,235 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2023 | 787,606 | 23,790 | 961,792 |
Additions | 138,785 | - | 148,785 |
Disposals | (14,385 | ) | - | (14,385 | ) |
At 30 April 2024 | 912,006 | 23,790 | 1,096,192 |
DEPRECIATION |
At 1 May 2023 | 379,874 | 23,790 | 436,825 |
Charge for year | 57,639 | - | 61,086 |
Eliminated on disposal | (12,785 | ) | - | (12,785 | ) |
At 30 April 2024 | 424,728 | 23,790 | 485,126 |
NET BOOK VALUE |
At 30 April 2024 | 487,278 | - | 611,066 |
At 30 April 2023 | 407,732 | - | 524,967 |
Included in cost of land and buildings is freehold land of £110,000 (2023 - £100,000) which is not depreciated. |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 May 2023 | 215,950 |
Additions | 63,605 |
Transfer to ownership | (13,015 | ) |
At 30 April 2024 | 266,540 |
DEPRECIATION |
At 1 May 2023 | 77,893 |
Charge for year | 40,563 |
Transfer to ownership | (12,303 | ) |
At 30 April 2024 | 106,153 |
NET BOOK VALUE |
At 30 April 2024 | 160,387 |
At 30 April 2023 | 138,057 |
Company |
Freehold | Motor |
property | vehicles | Totals |
£ | £ | £ |
COST |
At 1 May 2023 |
Additions |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
The company owns 100% of the issued share capital of the companies listed below. |
2023 | 2022 |
Aggregate capital and reserves | £ | £ |
Spectrum M & E Limited | (5,207 | ) | 91,400 |
Spectrum Electrical & Mechanical Engineering Limited | 676,084 | 551,635 |
Spectrum Repairs and Maintenance Limited | 1 | 1 |
Spectrum Construction (Special Projects) Limited | (40,996 | ) | (39,100 | ) |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 250,699 | 340,669 |
Amounts owed by group undertakings | - | - |
Other debtors | 240,302 | 85,148 |
VAT | 352,433 | 473,011 | 11,478 | 7,014 |
Accrued income | 2,046,278 | 1,623,319 | - | - |
Prepayments and accrued income | 7,989 | 54,923 |
2,897,701 | 2,577,070 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 14) | 434,769 | 670,117 |
Hire purchase contracts (see note 15) | 49,502 | 43,587 |
Trade creditors | 1,588,084 | 1,829,327 |
Amounts owed to group undertakings | - | - |
Corporation tax | 7,588 | 104,149 |
Social security & other taxes | 64,113 | 89,963 |
Other creditors | 24,450 | 25,264 |
Pension control | 1,701 | 1,885 | - | - |
Directors' current accounts | 3,131 | 13,131 | 3,131 | 13,131 |
Accrued expenses | 165,967 | 129,142 |
2,339,305 | 2,906,565 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 15) | 69,810 | 68,705 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 434,769 | 670,117 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 49,502 | 43,587 |
Between one and five years | 69,810 | 68,705 |
119,312 | 112,292 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
16. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 61,896 | 29,644 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2023 | 29,644 |
Charge to Income Statement during year | 32,252 |
Balance at 30 April 2024 | 61,896 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
Ordinary B | £1 | 100 | 100 |
Ordinary C & D | £2 | 1 | 1 |
201 | 201 |
18. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 May 2023 | 3,163,731 |
Profit for the year | 33,179 |
Dividends | (361,375 | ) |
At 30 April 2024 | 2,835,535 |
Company |
Retained |
earnings |
£ |
At 1 May 2023 |
Profit for the year |
Dividends | ( |
) |
At 30 April 2024 |
TOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05198252) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
18. | RESERVES - continued |
19. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr A S Wood. |
The company was under the control of Mr A S Wood for the current and prior year. |