REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 June 2024 |
for |
Pickerings Hire Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 June 2024 |
for |
Pickerings Hire Limited |
Pickerings Hire Limited (Registered number: 00950139) |
Contents of the Financial Statements |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Statement of Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Notes to the Financial Statements | 14 |
Pickerings Hire Limited |
Company Information |
for the Year Ended 30 June 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
& Statutory Auditors |
3 Hagley Court North |
The Waterfront |
Dudley |
West Midlands |
DY5 1XF |
Pickerings Hire Limited (Registered number: 00950139) |
Strategic Report |
for the Year Ended 30 June 2024 |
The directors present their strategic report for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The Company is a privately owned business and the principal activity continues to be that of hiring modular accommodation units, anti-vandal accommodation units, generators and ancillary equipment to commerce and industry. |
Results and performance |
The results of the company for the year, as set out on pages 11 and 12, show a profit on ordinary activities before tax of £15.8m (2023: £16.7m). The shareholders' funds total £133.3m (2023: £121.6m). |
The performance of the company during 2024 continued to produce encouraging results. |
Business environment |
The UK construction industry, the principal sector, saw further recovery during the trading year. This was after 3 years of turmoil within the industry. |
The company continues to diversify its income by concentrating on different sectors away from core construction. |
Our customers trading within the housing industry saw delayed projects now starting. An interest rate reduction along with a more buoyant market gave confidence to the sector with the end of the year seeing the greatest increase in activity. |
New sectors into which the business has diversified, which include health and education, continue to have a positive impact on the business and its underlying trading. The type of products required for this sector is more of a semi-permanent nature and this is where the modular accommodation units come to the fore. |
Disruptions caused by political pressures and announcements have placed various stresses on trading for the business. Inflationary pressures have settled somewhat from the previous year, however, it will continue to have an influence on the business short term. |
Strategy |
The company has and will continue to develop its most important assets, its people. The number of employees has doubled over the last 10 years with many more technical roles being recruited. Training and development programmes are available to all team members with annual updates given where appropriate. |
The company's success is dependent on the maintenance of hire stock, competitive pricing and ongoing management of the business it accepts. The company has always been praised for its excellent service levels. The aim is to maintain these high service standards for both its accommodation units and mechanical plant. |
The company will continue to increase its market share and concentrate its efforts on achieving maximum growth in its existing market segments. The aim is to improve efficiency in all areas of the operation through cost reduction and customer retention. Customer service remains a top priority. |
The business will now develop its modular unit range to satisfy the health and education sectors that have been identified. |
The business remains focused on moving a number of its depots to better and larger locations. The aim continues to be to maintain these high service standards and expand both the customer base and geographical spread for its hire equipment as and when opportunities arise. |
Key performance indicators ('KPIs') |
The company has made significant progress throughout the year in relation to key elements of the business strategy. The Board monitors the progress of the company by reference to the following KPI: |
2024 | 2023 |
Turnover (£ ) | 70,635 | 65,385 |
Profit before tax % | 22.4% | 25.5% |
Pickerings Hire Limited (Registered number: 00950139) |
Strategic Report |
for the Year Ended 30 June 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The process of risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with regulation, H&S and legal standards is a high priority for the company and the operations and H&S teams take on an important oversight role in this regard. |
Trading and cash forecasting are seen as a key part of the reporting within the company. Working capital and capital investment requirements are regularly monitored and reported to the group board of directors. |
The principal risks from the temporary accommodation industry arise from Health & Safety; dependency on the construction industry and price sensitivity. |
The fallout from political actions and commentary continue to cause fluctuating market conditions and prices with European partners. Currency fluctuations continue to have an impact on purchasing power. |
Instability within the global economy due to foreign government interventions have had a major impact on costs and projects moving forwards. A wider conflict in the Middle East will worsen this position. Both operating costs and cost of borrowing have increased significantly in comparison to related income. Fortunately, the business exposure is limited due to the minimal debt exposure and the general efficient running of the business. |
Pickerings Hire Limited (Registered number: 00950139) |
Strategic Report |
for the Year Ended 30 June 2024 |
SECTION 172(1) STATEMENT |
In discharging their duty to promote the interests of the Company under Section 172 Companies Act 2006, the Directors of the Company consider a number of factors and stakeholders' interests. This section sets out how the Directors of the Company have complied with the requirements of Section 172 Companies Act 2006 throughout the course of the financial year. |
The Board |
The Board's primary responsibility is to promote the long term success of the Company as well as safeguard the interests of its principal stakeholders. The board seeks to achieve this by setting out its strategy and subsequently monitoring performance against these strategic objectives. Accordingly, considerations of long-term consequences are an inherent part of the Company's decision making process. As a privately owned business, the Board considers that the interests of the Company and its ultimate owners are closely aligned in seeking sustainable growth and value creation over the longer term. |
The Board meet on a regular basis during the course of the year and a formal schedule of matters to be discussed and minutes of meetings are maintained. Topics that are discussed include review of health and safety performance, approval of budgets, capital expenditure projects, organisational changes and amendments to key policies. Furthermore, the Board also monitor the effectiveness of the Company's internal control system, governance and risk management. |
The composition of the Board includes 5 directors and 3 members of key management, which provides the Board with a good range of expertise, industry experience and independence. |
Board Governance |
With respect to Corporate Governance, the Board has chosen to use the Wates Corporate Governance Principles for Large Private Companies for guidance. These Principles provide a code of corporate governance for companies to raise awareness of good practice and over time help improve the standards of Corporate Governance. They support the Directors in meeting the requirements of Section 172 Companies Act 2006 by providing guidance in the following areas: |
o Purpose and leadership; |
o Board composition; |
o Director responsibilities; |
o Opportunity and risk; |
o Remuneration; and |
o Stakeholders. |
Engaging with stakeholders to deliver long term success is a key area of focus for the Board and in all the decisions made, the potential impact on stakeholders is taken into account. Evidently, different stakeholders are impacted by, or benefit from, different decisions. However, it is the Board's priority to ensure that the Directors and key management personnel have acted both individually and collectively in the way that they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole and in accordance with the matters set out in paragraphs a-f of Section 172 Companies Act 2006. |
The board approves an annual budget and Three Year Profitability Summary, and monitors performance throughout the year using detailed reports of operating and financial data. This includes monitoring progress against key strategic projects (both long and short-term) as well as considering the allocation of capital to support the Business Plan. |
In approving the strategy, the Directors also consider external factors such as competitor behaviours, the performance of the construction industry, as well as the evolving economic, political and market conditions |
The Directors take the reputation of the Company seriously which is not limited to only operational and financial performance. The Board has committed to having a workforce that more accurately reflects modern day society and this is part of the Equality and Diversity policy. The Company also has well defined policies on Anti-slavery and anti-bribery and corruption. Pickerings Hire Limited is committed to the principle of equal opportunities and equal treatment for all employees. |
The Directors understand the importance of the Company's employees to the long-term success of the business and are proud of the record of retaining staff through high levels of satisfaction, evidenced by the large number of long-serving employees. |
The health and safety of the Company's employees (and other stakeholders) is absolutely paramount and the Directors review performance in this arena, across all locations through regular audits. |
The Company regularly communicates to its employees via presentations and internal Company-wide emails. Pickerings Hire Limited is committed to equipping staff with the required level of training in order to facilitate their development. Learning and development opportunities are provided relevant to job roles and individuals. |
Pickerings Hire Limited (Registered number: 00950139) |
Strategic Report |
for the Year Ended 30 June 2024 |
Pickerings Hire Limited has a subscription with a service provider, which allows all employees to access (for free) a telephone and online well-being portal where assistance is available around wellbeing and mental health awareness, legal or financial matters amongst other subjects. |
The Board regularly reviews how the Company maintains a positive relationship with all of its stakeholders, including suppliers, sub-contractors and others. |
There is a very collaborative relationship between the Company and its suppliers and subcontractors, including regular meetings with key suppliers. |
The Company are proficient at communicating any salient updates to the supply chain on a timely basis. |
The Directors understand the importance of the Company's supply chain in developing the long-term plans of the business. One of the ways that effective relationships with our supply chain are ensured is to pay them on time, which the Company is proficient at. |
In addition to understanding and having regard to the interests of the aforementioned stakeholders, the Company is committed to reducing the environmental impact of the business evidenced by the fact that it recycles waste material wherever possible and ensuring that its fleet vehicle pool is as efficient as possible. |
The Company strives to make a positive impact on the Community. The Directors are very proud of the donations to local charities and organisations. |
Pickerings Hire Limited also recognises its health and safety duties and responsibilities and complies with all relevant health and safety legislation. |
Pickerings Hire Limited abides by working condition regulations and has never received any penalties for contravening these regulations. Regular external and internal audits as well as other internal reviews are performed in order to ensure that the Company is compliant with employment regulations. |
The Directors take very seriously their responsibility of ensuring the Company is a good corporate citizen. Businesses create wealth that, through taxes, delivers investment which leads to a fairer and more prosperous society. We are proud of the part we play in our industry's contributions through its economic activity. |
The Company's brand is over 50 years old. The business as it is today is one hundred per cent family owned and has active involvement by family members. The Company interfaces with family members on a regular basis through Company Board meetings, corporate events etc. |
FUTURE DEVELOPMENTS |
The company funds its operations through a combination of cash resources and shareholders' funds. This will continue to be the case where the company will look to invest more in both its capital assets and hire assets. The company has looked into further financing for its transport fleet and may look at financing though other innovative means if further opportunities become available. |
ON BEHALF OF THE BOARD: |
Pickerings Hire Limited (Registered number: 00950139) |
Report of the Directors |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
None of the directors had any interest in the share capital of any subsidiary company of Bloor Investments Limited. |
ENGAGEMENT WITH EMPLOYEES |
The company operates a framework for employee information and consultation which complies with the |
requirement of the Information and Consultation of Employees Regulations 2004. During the year regular |
meetings are held between local management and employees to allow a free flow of information and ideas. The |
directors recognise the benefits which accrue from keeping employees informed on the progress of the company |
and its performance. |
Health and safety of employees is given special attention and it is company policy to consider the skills and |
aptitudes of disabled persons fully and fairly and to comply with any current legislation. Opportunities are |
available to disabled employees for training, career development and promotion. Where existing employees |
become disabled, it is the group's policy to provide continuing employment wherever practicable in the same or |
an alternative position and to provide appropriate training to achieve this aim. |
STREAMLINED ENERGY AND CARBON REPORTING |
This SECR disclosure presents our carbon footprint across all UK offices and sites (whilst applying appropriate carbon intensity metrics) as well as our energy usage in terms of fuel, electricity and gas. The scope encompasses our regional offices and sites. |
2024 | 2023 |
Emissions from activities for which the company own, including combustion of fuel - tCO2e |
2,512 |
2,541 |
Emissions from purchase of electricity, heat,steam and cooling purchased - t CO2e | 201 | 147 |
Total gross Scope 1 and Scope 2 emissions -tCO2e | 2,713 | 2,688 |
Energy consumption used to calculate above emissions - kWh | 11,105,176 | 10,773,892 |
Intensity ratio - tCO2e (gross Scope 1 + 2) / £1m revenue | 38.76 | 41.35 |
The methodology applied to the calculation of these emissions is the GHG Protocol Corporate Accounting and Reporting Standard which is available on the Greenhouse Gas Protocol website at https://ghgprotocol.org/corporate-standard. Conversion factors have been taken from the UK Government's Greenhouse gas reporting; conversion factors 2024. These factors will continue to be improved and updated on an annual basis with the next publication in June 2025, which can be found on the Government's website at https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2024. |
We have also considered the gas and electricity usage on a kWh conversion basis, as per the table below: |
2024 | 2023 | % change |
Gas usage - kWh | 888,739 | 796,155 | 12% |
Electricity usage - kWh | 972,211 | 709,319 | 37% |
Total energy usage | 1,505,474 | 1,499,776 |
In performing our Energy Savings & Opportunities Scheme (ESOS) assessment, we have also assessed the level of our emissions by considering the ratio between our total emissions and the number of operating locations. Please see results below. |
Pickerings Hire Limited (Registered number: 00950139) |
Report of the Directors |
for the Year Ended 30 June 2024 |
2024 | 2023 | % change |
Total emissions (Kg CO2e) for combined energy usage per operating location in the year |
225,384 |
222,117 |
2% |
Total emissions (kWh) for gas and electricity per operating location in the year |
155,079 |
125,456 |
24% |
The Company continues to develop measures to improve energy efficiency and reduce carbon emissions which include the increased use of electric vehicles in its private car fleet and depot/logistics planning and management to ensure efficient delivery and collection of hired plant. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and 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 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. |
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 company'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 company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Pickerings Hire Limited |
Opinion |
We have audited the financial statements of Pickerings Hire Limited (the 'company') for the year ended 30 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 30 June 2024 and of its 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 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 directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Pickerings Hire Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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 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. |
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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company; |
- we assessed the extent of compliance with the laws and regulation identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud may occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; and |
- assessed whether judgements and assumption made in determining the accounting estimates were indicative of potential bias. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators including Health and Safety Executive, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed the laws and regulations are from financial transaction, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Pickerings Hire 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 Certified Accountants |
& Statutory Auditors |
3 Hagley Court North |
The Waterfront |
Dudley |
West Midlands |
DY5 1XF |
Pickerings Hire Limited (Registered number: 00950139) |
Statement of Comprehensive |
Income |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
14,851,749 | 14,234,599 |
15,367,003 | 16,503,711 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
15,859,789 | 16,708,623 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Pickerings Hire Limited (Registered number: 00950139) |
Balance Sheet |
30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 12 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Pickerings Hire Limited (Registered number: 00950139) |
Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2024 |
Pickerings Hire Limited (Registered number: 00950139) |
Notes to the Financial Statements |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Pickerings Hire Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention, are presented in Sterling which is the functional current of the company and rounded to the nearest £. |
The financial statements have been prepared in accordance with Financial Reporting Standard 102, the financial reporting standard applicable in the UK and Republic of Ireland. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
The group funds its operations through a combination of shareholder's funds, group loans, bank loans, bank overdrafts and other third party borrowings. The bank loans, bank overdrafts and other borrowings are arranged on a sub group basis by Bloor Holdings Limited. |
On 12 November 2021 the group extended its financing arrangements and the majority of the group's facilities, which are on a secured basis, are now committed for a period to 30 September 2025. These are subject to covenants which are reported on a quarterly basis. |
The Financial Statements have been prepared on a going concern basis which assumes that the group will have sufficient funds available to enable it to trade for the foreseeable future. In making their assessment the directors have undertaken an in depth review of the business, its current performance, prospects and cash resources. |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
Significant judgements and estimates |
In the preparation of the financial statements it is necessary for the management of the company to make estimates and certain presumptions that can affect the valuation of the assets and liabilities and the outcome of the income statement. The actual outcome may differ from the estimates and presumptions. The most significant judgements made in these accounts relate to the following. |
Useful Economic Lives And Residual Values Of Tangible Assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect the current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 9 for the carrying amount of the property, plant and equipment, and see below for the estimated useful economic lives and residual values for each class of asset.The estimation of useful economic lives and residual values of tangible assets have a high degree of estimation uncertainty with a potential range of outcomes greater than our materiality for the financial statements as a whole. |
Impairment Of Debtors |
The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing of debtors and historical experience. See note 10 for the carrying amount of the debtors and associated impairment provision. |
Pickerings Hire Limited (Registered number: 00950139) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for hire charges, stated net of discounts and of value added tax. |
Tangible fixed assets |
Land & Buildings | - |
Plant and machinery | - |
Motor vehicles | - |
Freehold land is not depreciated. |
Financial instruments |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
The charge for taxation is based on the profit for the year and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes. Deferred tax is fully provided for. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. |
A deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. |
Deferred tax is not discounted. |
Pickerings Hire Limited (Registered number: 00950139) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors. |
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
Employee benefits |
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
The company participates in the Bloor Holdings Limited Retirement Benefits Scheme as described in note 18. |
As the company is unable to identify its share of the group pension scheme assets and liabilities on a consistent and reasonable basis, as permitted by FRS 102 Section 28 Employee Benefits, the scheme is accounted for as if it is a defined contribution scheme. |
Contributions in respect of defined benefit schemes are charged to the profit and loss account as they are incurred. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
30.6.24 | 30.6.23 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
30.6.24 | 30.6.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Pickerings Hire Limited (Registered number: 00950139) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
30.6.24 | 30.6.23 |
Office | 159 | 118 |
Production/depots | 120 | 147 |
30.6.24 | 30.6.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Defined benefit schemes |
Information regarding the highest paid director is as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.6.24 | 30.6.23 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
6. | AUDITORS' REMUNERATION |
30.6.24 | 30.6.23 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
17,800 |
16,496 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.24 | 30.6.23 |
£ | £ |
Hire purchase interest |
Pickerings Hire Limited (Registered number: 00950139) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year adjustment | (501,092 | ) | 415 |
Total current tax | ( |
) |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 25% (2023 - 20.50%). |
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: |
30.6.24 | 30.6.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
tax |
Deferred taxation | 4,134,000 | 914,000 |
capital allowances |
Total tax charge | 4,121,908 | 3,624,415 |
Factors affecting future tax charge: |
An increase in tax rate from 19% to 25% with effect from 1 April 2023 was enacted by UK Government in May 2021. Deferred tax has been measured using a tax rate of 25% on the basis that this is the rate expected to apply to the reversal of timing differences. |
Pickerings Hire Limited (Registered number: 00950139) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
9. | TANGIBLE FIXED ASSETS |
Land & | Plant and | Motor |
Buildings | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Included in cost of land and buildings is freehold land of £ 20,121,717 (2023 - £ 19,647,601 ) which is not depreciated. |
The net book value of land and buildings is comprised of freehold land and buildings £30,564,851 (2023 - £30,620,076), long leasehold land and buildings £398,363 (2023 - £408,147) and short leasehold land and buildings £22,876 (2023 - £30,532). |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 July 2023 |
Transfer to ownership | (2,224,135 | ) |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
Transfer to ownership | (1,666,086 | ) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Pickerings Hire Limited (Registered number: 00950139) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 30.6.23 |
£ | £ |
Trade debtors |
Other debtors |
Amounts owed by group undertakings | 130,412 | 136,109 |
Prepayments |
Trade debtors are stated after provisions for impairment of £787,200 (2023 - £938,787) |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 30.6.23 |
£ | £ |
Hire purchase contracts (see note 13) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.24 | 30.6.23 |
£ | £ |
Hire purchase contracts (see note 13) |
13. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
30.6.24 | 30.6.23 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
30.6.24 | 30.6.23 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Pickerings Hire Limited (Registered number: 00950139) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
30.6.24 | 30.6.23 |
£ | £ |
Hire purchase contracts | 826,729 | 1,461,170 |
Amounts due under hire purchase contracts are secured on the assets to which they relate. |
15. | PROVISIONS FOR LIABILITIES |
30.6.24 | 30.6.23 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Charge to Statement of Comprehensive Income during year |
Balance at 30 June 2024 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.24 | 30.6.23 |
value: | £ | £ |
Ordinary shares | £1 | 30,000,000 | 30,000,000 |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2023 |
Profit for the year |
At 30 June 2024 |
18. | PENSION COMMITMENTS |
The company is a member of the Bloor Holdings Limited Group Personal Pension Plan. The pension cost charge for the period represents contributions payable by the company to the schemes and amounted to £307,317 (2023: £331,101). |
The company is a member of the Bloor Holdings Limited Retirement Benefit Scheme. As the group is unable to identify its share of the scheme assets and liabilities on a consistent basis, as permitted by FRS 102, para 28.11, the scheme has been accounted for as a defined contribution scheme. At 30 June 2024 the scheme had a surplus on an FRS 102 basis of £1,149,000 (2023 - surplus of £2,097,000). |
The company contributed towards The People Pensions (BandCE) Personal Pension Plan. The pension cost charge for the period represents contributions payable by the company to the schemes and amounted to £313,993 (2023: £288,781). |
Pickerings Hire Limited (Registered number: 00950139) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
19. | ULTIMATE PARENT COMPANY |
The company's immediate parent undertaking is Bloor Holdings Limited which is registered in England and Wales. |
The company's financial statements are consolidated into the financial statements of Bloor Holdings Limited. |
The company's ultimate parent undertaking is Bloor Investments Limited which is registered in England and Wales. |
Copies of the financial statements of Bloor Holdings Limited and Bloor Investments Limited may be obtained from The Registrar of Companies at Companies House, Crown Way, Maindy, Cardiff, CF4 3UZ. |
20. | CONTINGENT LIABILITIES |
The company has guaranteed the bank overdrafts and bank loans of certain other group undertakings which, at 30 June 2024, amounted to £nil (2023: £nil). |
21. | CAPITAL COMMITMENTS |
30.6.24 | 30.6.23 |
£ | £ |
Contracted but not provided for in the |
financial statements |
22. | ULTIMATE CONTROLLING PARTY |
The controlling party is J S Bloor. |