Potteries Fuels Limited
Annual report and financial statements
For the year ended 30 April 2024
Potteries Fuels Limited
Company information
Director
Mr A D Griffiths
Secretary
Mrs M Griffiths
Company number
05779422
Registered office
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Potteries Fuels Limited
Contents
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Statement of financial position
10
Notes to the financial statements
11 - 23
Potteries Fuels Limited
Strategic report
For the year ended 30 April 2024
- 1 -
The director presents the strategic report for the year ended 30 April 2024.
Review of the business
The company's principal activity is that of a Registered Dealer in Controlled Oils. Where we sell various fuels to Domestic, Commercial and Agricultural customers.
We are one of the few remaining family owned and independent fuel suppliers, delivering Home Heating Oil, Red Diesel, Road Diesel and Lubricants. We enjoy serving our loyal customer base with fair pricing, family values, honesty and good service.
The business operates from 1 location based in Stoke-on-Trent and has approximately 21 staff.
We consider that our key financial performance indicators are the volumes of fuel we sell and the margins at which we sell it, margins in this industry are generally low, so we need to ensure a minimum volume level in order to maintain our profitability and cover our overhead costs.
Turnover as disclosed in the Statement of income and retained earnings on page 9 comprises of the sale of these fuels to our UK based customers. Overall sales have decreased in value by 19.7% in 2024 to £53,073,521 (2023 - £66,116,355). The reason for the sales decreasing in comparison to last year's increase is the fact that last year's increase was due to the HMRC gas oil change. So we were selling more expensive alternatives. White diesel is nearly double the price of gas oil, so the revenue would have increased more than the volumes in the 2023 financial year.
The 2024 margins haven't been as high as prices seem to have levelled and there haven't been any fuel wars or COVID that has affected the industry.
Even though the volumes remained similar, the revenue is lower due to the margins, which we knew would be tighter this year.
Gross profit margin has decreased by 0.16% in the 12 months to 30 April 2024 to 2.81% (2023 – 3.35%), our operating profit has decreased by £898,816 to £423,589 (2023 - £1,322,405)
The company reported a profit before tax of £400,768 compared with the previous year (2023) of £1,315,026.
As with any business the directors are aware that risks exist which can adversely affect the performance of the company. The directors have taken steps to identify and monitor these risks to assist in minimising their impact.
Going forward, we aim to steadily grow the business by both increasing existing customers credit lines and organic growth. We have a loyal customer base and work closely with them in order to fulfil their requirements. We don’t rely heavily on a small number of clients; our clients are quite equally spread which minimises risk to the business. Steady growth also allows us to plan long term with regards to fuel tankers and staff training, tankers can take up to 1 year to be delivered, from point of order, therefore its good practice to accept these expectations to keep the smooth running of the business.
In the 2024 financial year, we began to self-deliver ad-blue, which not only gives a more diverse and personable service to our customers, but also opened up a full-time position.
With regards to suppliers, we also work closely with them and have long term relationships, which have benefited us with the recent rise in costs, so our future plans are to maintain these ‘partnerships’ and work alongside our current suppliers so supply is not affected in any way.
The balance between Customers and Suppliers is equally important to us and value both sides.
Potteries Fuels Limited
Strategic report (continued)
For the year ended 30 April 2024
- 2 -
Principal risks and uncertainties
We continue to work closely within the current market and regularly review fuel prices with the assistance of our suppliers, our costs and prices are somewhat dictated by the real time markets and we need to ensure we have up to date information
The directors have confidence that there is a realistic opportunity to develop the business further by way of more fuel trucks and then delivering larger volumes of fuel.
Mr A D Griffiths
Director
17 January 2025
Potteries Fuels Limited
Director's report
For the year ended 30 April 2024
- 3 -
The director presents his annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company continued to be that of wholesale fuel supply to corporate bodies and members of the public.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £174,000 (2023 - £218,100). The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr A D Griffiths
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
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.
Potteries Fuels Limited
Director's report (continued)
For the year ended 30 April 2024
- 4 -
On behalf of the board
Mr A D Griffiths
Director
17 January 2025
Potteries Fuels Limited
Independent auditor's report
To the members of Potteries Fuels Limited
- 5 -
Opinion
We have audited the financial statements of Potteries Fuels Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of income and retained earnings, the statement of financial position 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:
give a true and fair view of the state of the company's affairs as at 30 April 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.
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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.
Potteries Fuels Limited
Independent auditor's report (continued)
To the members of Potteries Fuels Limited
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report 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 director's 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:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Potteries Fuels Limited
Independent auditor's report (continued)
To the members of Potteries Fuels Limited
- 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:
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 regulations 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 might 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 of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions 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 and the company’s legal advisors.
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.
Potteries Fuels Limited
Independent auditor's report (continued)
To the members of Potteries Fuels Limited
- 8 -
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.
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.
Stacey Parr FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
24 January 2025
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Potteries Fuels Limited
Statement of income and retained earnings
For the year ended 30 April 2024
- 9 -
2024
2023
Notes
£
£
Turnover
2
53,073,521
66,116,355
Cost of sales
(51,581,452)
(63,903,377)
Gross profit
1,492,069
2,212,978
Administrative expenses
(1,109,019)
(911,384)
Other operating income
40,539
20,811
Operating profit
3
423,589
1,322,405
Interest receivable and similar income
6
3,319
Interest payable and similar expenses
7
(22,821)
(10,698)
Profit before taxation
400,768
1,315,026
Tax on profit
8
(93,582)
(280,040)
Profit for the financial year
307,186
1,034,986
Retained earnings brought forward
3,521,686
2,653,900
Dividends
9
(174,000)
(167,200)
Retained earnings carried forward
3,654,872
3,521,686
Potteries Fuels Limited
Statement of financial position
As at 30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
758,182
796,251
Current assets
Stocks
11
108,093
72,708
Debtors
12
5,317,123
4,756,111
Cash at bank and in hand
2,143,348
1,690,466
7,568,564
6,519,285
Creditors: amounts falling due within one year
13
(4,305,709)
(3,400,990)
Net current assets
3,262,855
3,118,295
Total assets less current liabilities
4,021,037
3,914,546
Creditors: amounts falling due after more than one year
14
(186,865)
(204,760)
Provisions for liabilities
Deferred tax liability
17
179,200
188,000
(179,200)
(188,000)
Net assets
3,654,972
3,521,786
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
20
3,654,872
3,521,686
Total equity
3,654,972
3,521,786
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 17 January 2025
Mr A D Griffiths
Director
Company registration number 05779422 (England and Wales)
Potteries Fuels Limited
Notes to the financial statements
For the year ended 30 April 2024
- 11 -
1
Accounting policies
Company information
Potteries Fuels Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke-on-Trent, Staffordshire, ST1 5SQ.
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 cover the company as an individual entity.
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. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income; and
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of TMG Fuels Limited. These consolidated financial statements are available from its registered office, The Glades, Festival Way, Festival Park, Stoke-on-Trent, Staffordshire ST1 5SQ.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues 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 provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
- 12 -
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:
Leasehold land and buildings
4% on cost
Plant and equipment
33.33% on cost
Fixtures and fittings
33% on reducing balance
Motor vehicles
20% on reducing balance
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.
1.5
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.6
Stocks
Stocks are stated at the lower of cost and net realisable value (estimated selling price less costs to complete and sell). Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the weighted average cost formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
- 13 -
1.8
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 statement of financial position 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 and loans to group and related parties, 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.
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.
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, 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
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
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 income statement 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.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 statement of financial position 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.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
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 other group entities where the relationship is one of being wholly owned.
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Diesel
36,760,942
47,970,640
Gas oil
7,499,043
8,349,823
Kerosene
5,357,765
6,300,228
Petrol
3,225,957
3,274,582
Other
229,814
221,082
53,073,521
66,116,355
2024
2023
£
£
Other revenue
Interest income
-
3,319
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
- 16 -
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,900
10,950
Depreciation of owned tangible fixed assets
116,756
47,838
Depreciation of tangible fixed assets held under finance leases
90,414
77,216
(Profit)/loss on disposal of tangible fixed assets
-
8,211
Operating lease charges
40,878
42,084
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
1
1
Staff
20
18
Total
21
19
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
604,656
567,806
Social security costs
55,776
45,604
Pension costs
71,913
80,352
732,345
693,762
5
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
12,576
12,191
Company pension contributions to defined contribution schemes
59,769
60,000
72,345
72,191
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
- 17 -
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,683
Other interest income
1,636
Total income
3,319
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
564
981
Interest on finance leases and hire purchase contracts
15,228
9,631
Other interest
7,029
86
22,821
10,698
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
102,382
185,540
Deferred tax
Origination and reversal of timing differences
(8,800)
94,500
Total tax charge
93,582
280,040
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
8
Taxation
(Continued)
- 18 -
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
400,768
1,315,026
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
100,192
249,855
Tax effect of expenses that are not deductible in determining taxable profit
1,066
2,976
Effect of change in corporation tax rate
34,220
Group relief
(8,723)
Depreciation on assets not qualifying for tax allowances
717
Enhanced capital allowances
(7,011)
Deferred tax adjustments in respect of current years
330
Taxation charge for the year
93,582
280,040
9
Dividends
2024
2023
£
£
Final paid
174,000
167,200
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
- 19 -
10
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
199,679
315,672
93,391
654,692
1,263,434
Additions
24,462
144,639
169,101
At 30 April 2024
199,679
340,134
93,391
799,331
1,432,535
Depreciation and impairment
At 1 May 2023
89,860
79,810
73,839
223,674
467,183
Depreciation charged in the year
7,987
89,836
6,517
102,830
207,170
At 30 April 2024
97,847
169,646
80,356
326,504
674,353
Carrying amount
At 30 April 2024
101,832
170,488
13,035
472,827
758,182
At 30 April 2023
109,819
235,862
19,552
431,018
796,251
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
420,288
370,447
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
108,093
72,708
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,535,298
4,111,659
Corporation tax recoverable
40,737
18,811
Amounts owed by group undertakings
1,680,786
320,736
Other debtors
30,425
234,595
Prepayments and accrued income
29,877
70,310
5,317,123
4,756,111
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
- 20 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
10,521
Obligations under finance leases
16
121,476
77,980
Trade creditors
4,161,686
3,110,236
Corporation tax
185,540
Other taxation and social security
16,501
16,213
Other creditors
3,434
Accruals and deferred income
2,612
500
4,305,709
3,400,990
Amounts due under finance leases and hire purchase contracts are secured against the assets which they relate to.
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
186,865
204,760
Amounts due under finance leases and hire purchase contracts are secured against the assets which they relate to.
15
Loans and overdrafts
2024
2023
£
£
Bank loans
10,521
Payable within one year
10,521
The bank loan was secured by a fixed and floating charge over the assets of the company. The loan reached maturity in August 2023.
There is a third party guarantee dated May 2023 of £100,000 in favour of United Fuels and Energy Limited.
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
- 21 -
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
121,476
77,980
In two to five years
186,865
204,760
308,341
282,740
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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
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
179,200
188,000
2024
Movements in the year:
£
Liability at 1 May 2023
188,000
Credit to profit or loss
(8,800)
Liability at 30 April 2024
179,200
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,913
80,352
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.
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
- 22 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
The shares are non-redeemable, voting shares which carry a right to receive dividends. There is no right to participate in a distribution of capital except on a winding up.
20
Profit and loss reserves
The retained earnings reserve represents the retained earnings of the company after the payment of any dividend.
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
98,436
90,848
Between two and five years
77,273
141,958
In over five years
15,000
175,709
247,806
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
339,480
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Other related parties
14,823,275
-
2,590
Potteries Fuels Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
23
Related party transactions
(Continued)
- 23 -
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
-
888,451
24
Directors' transactions
The balance was cleared by a transfer to the parent company.
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Loan
2.25
115,952
(115,952)
-
115,952
(115,952)
-
The balance was cleared by a transfer to the parent company.
25
Ultimate controlling party
The ultimate parent company is TMG Fuels Limited, incorporated in England and Wales. Copies of the consolidated accounts can be obtained from the registered office, The Glades, Festival Way, Festival Park, Stoke-on-Trent, Staffordshire, ST1 5SQ.
There is no ultimate controlling party.
2024-04-302023-05-01falseCCH SoftwareCCH Accounts Production 2024.200Mr A D GriffithsMrs M Griffithsfalsefalse057794222023-05-012024-04-3005779422bus:Director12023-05-012024-04-3005779422bus:CompanySecretary12023-05-012024-04-3005779422bus:RegisteredOffice2023-05-012024-04-30057794222024-04-30057794222022-05-012023-04-3005779422core:RetainedEarningsAccumulatedLosses2023-04-3005779422core:RetainedEarningsAccumulatedLosses2022-04-3005779422core:ShareCapital2024-04-3005779422core:ShareCapital2023-04-3005779422core:RetainedEarningsAccumulatedLosses2024-04-3005779422core:RetainedEarningsAccumulatedLosses2023-04-30057794222023-04-3005779422core:RetainedEarningsAccumulatedLosses2022-05-012023-04-3005779422core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-04-3005779422core:PlantMachinery2024-04-3005779422core:FurnitureFittings2024-04-3005779422core:MotorVehicles2024-04-3005779422core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-3005779422core:PlantMachinery2023-04-3005779422core:FurnitureFittings2023-04-3005779422core:MotorVehicles2023-04-3005779422core:CurrentFinancialInstrumentscore:WithinOneYear2024-04-3005779422core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3005779422core:Non-currentFinancialInstrumentscore:AfterOneYear2024-04-3005779422core:Non-currentFinancialInstrumentscore:AfterOneYear2023-04-3005779422core:CurrentFinancialInstruments2024-04-3005779422core:CurrentFinancialInstruments2023-04-3005779422core:LandBuildingscore:LongLeaseholdAssets2023-05-012024-04-3005779422core:PlantMachinery2023-05-012024-04-3005779422core:FurnitureFittings2023-05-012024-04-3005779422core:MotorVehicles2023-05-012024-04-3005779422core:AccountingPolicyChangeIncreaseDecrease2023-05-012024-04-3005779422core:AccountingPolicyChangeIncreaseDecrease2022-05-012023-04-300577942212023-05-012024-04-300577942212022-05-012023-04-3005779422core:UKTax2023-05-012024-04-3005779422core:UKTax2022-05-012023-04-300577942222023-05-012024-04-300577942222022-05-012023-04-300577942232023-05-012024-04-300577942232022-05-012023-04-3005779422core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-3005779422core:PlantMachinery2023-04-3005779422core:FurnitureFittings2023-04-3005779422core:MotorVehicles2023-04-30057794222023-04-3005779422core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-05-012024-04-3005779422core:Non-currentFinancialInstruments2024-04-3005779422core:Non-currentFinancialInstruments2023-04-3005779422core:WithinOneYear2024-04-3005779422core:WithinOneYear2023-04-3005779422core:BetweenTwoFiveYears2024-04-3005779422core:BetweenTwoFiveYears2023-04-3005779422core:MoreThanFiveYears2024-04-3005779422core:MoreThanFiveYears2023-04-3005779422core:OtherRelatedPartiescore:SaleOrPurchaseGoods2023-05-012024-04-3005779422core:OtherRelatedPartiescore:SaleOrPurchaseGoods2022-05-012023-04-3005779422bus:PrivateLimitedCompanyLtd2023-05-012024-04-3005779422bus:FRS1022023-05-012024-04-3005779422bus:Audited2023-05-012024-04-3005779422bus:FullAccounts2023-05-012024-04-30xbrli:purexbrli:sharesiso4217:GBP