Company registration number 07658001 (England and Wales)
THOMAS HOLDINGS (NORTH WEST) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
THOMAS HOLDINGS (NORTH WEST) LIMITED
COMPANY INFORMATION
Directors
Mr W L Thomas
Mrs S E Thomas
Miss L L Thomas
Secretary
Mrs S E Thomas
Company number
07658001
Registered office
Tai Hirion
Llwybr Hir
Caerwys
Flintshire
United Kingdom
CH7 5BL
Auditor
Azets Audit Services
Alpha House
4 Greek Street
Stockport
United Kingdom
SK3 8AB
THOMAS HOLDINGS (NORTH WEST) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 37
THOMAS HOLDINGS (NORTH WEST) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.

Review of the business

During the year, the group saw plant hire activity maintain income levels from the prior year. The strategic purchases and expansion of the Group in the prior year with Diggers (Bury) Limited and acquisition of Thomas Armco and Fencing Limited in the year has resulted in an increase in the turnover of the Group and has continued to expanded it's operating area and services provided.The consolidated group results show an increase in total group turnover of 34% to £83m, Group gross margins have reduced compared to the prior year, this highlighted by the increased fuel and energy costs together with fixed contract pricing.

 

EBITDA reached in excess of £31.3m (£31.1m previous year), with a profit before taxation of £1.4m (£581k loss before tax in the previous year).

 

The group continued to invest heavily in plant and machinery during the year, with acquisitions of £26.8m. This was as a result of strategic expansions, and a constant refreshment of fleet, and saw the overall net book value of plant increase by 9.6% on the prior year.

 

The overall net asset position of the company continued to strengthen with overall group net assets before deferred tax now standing at £33m.

 

Principal risks and uncertainties

As is the nature of the industry, there is always an inherent risk. However, the group aims to minimise its exposure by a diversification of activity and a spread amongst customers, reducing reliance on any one area. The group implements regular credit control to further minimise exposure to financial risk.

 

The majority of the groups borrowings are now at a variable rate, meaning the Group's exposure to the recent rises in interest rates have resulted in a significant increase in borrowing costs. The ABL facilty of just over £104m at the balance sheet date exposes the group to signiciant interest costs until the interest rates start to decerease, although any decreases are expected to be no more than 1% and not until later in 2025 if at all.

 

The future order book for the contracting company remains strong, with £21.3m of contracting work secured over the next 15 months, and the plant hire division continues to expand providing optimism for continued growth in future years. It is expected that as interest rates have stabilised, activity in the construction sector continue to grow in 2025.

 

External factors include the economic environment, however this appears to be strong with large numbers of high value projects both in progress and being planned for the future, as evidenced by the contracting forward order book. The Group has been able to factor in increased costs into these new contracts.

 

The group has minimal exposure to foreign currencies.

THOMAS HOLDINGS (NORTH WEST) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Human Recources

As in previous years, our focus during this reporting period continued to be the recruitment, retention and development of talent within the Group.

 

Systems

We are continuing to significantly invest in our Information Technology Infrastructure and Systems. This includes methods for recording real time fuel usage and performance of both fleet and plant & equipment.

 

Corporate Governance

Thomas Group defines corporate governance to include its management structure and supporting functions and systems which are implemented through an established framework of policies, procedures and processes that ensure effective business outcomes.

 

Strategies to review and improve organizational effectiveness are also in place to ensure effective resource allocation and quality business and customer support services.

 

Key challenges include attracting skilled staff, effectively equipping depot staff and regulatory compliance; and ensuring continuous improvement at a time of significant change within the utilities and construction sectors.

Key performance indicators

Key Performance Indicators The key indicators within the group relate to:

 

 

Indicator    

2024

2023

Definition, calculation and analysis

Increase in turnover

33.8%

34.5%

Turnover growth is expressed as a percentage. The increase is due to the industry recovering and strategic expansion.

Hire fleet Utilisation

62%

61%

Utilisation is expressed as a percentage of overall machines hired to customers, averaged for the year.

Loan to value

86%

87%

LTV is expressed as a percentage of secured lending against tangible assets.

 

Health Safety & Environment

Thomas Plant Hire Ltd operates under ISO 45001 audited by NQA to certify Thomas Plant Hire Ltd with UKAS accreditation.

 

Thomas Group of Companies have been proud to enter a period of growth. both in offerings to Clients and winning major contracts across the business. We fully support our Managing Directors goal of a Quality focused company and we have maintained our UKAS Accredited quality standard (IOS 9001).

We have upgraded our FORS accreditation to Silver, demonstrating the goal of ensuring the safety of other road users from our HGV fleet and reducing fuel use by addressing driver behaviours (Idling, driving style, route planning).

 

Thomas Group of companies has continued to take steps to drive a behavioural based safety culture and in support of this have two senior managers who are trained for dealing with mental health issues.

 

Our risk assessment process and control measures are now communicated far more effectively whilst removing unnecessary wording to safety critical documentation. The apprenticeship scheme continues and has demonstrated the benefit of developing operatives from an early point.

 

Monthly management meetings are held and the minutes recorded to identify any risk to the business, demonstrate the key performance indicators and to feedback on the internal audit process to ensure continued compliance with our integrated ISO H&S, Quality and Environmental standards.

THOMAS HOLDINGS (NORTH WEST) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
Section 172(1) Statement
Under section 172 of the UK Companies Act 2006 (Section 172) directors must act in the way that they consider to be in good faith, would be most likely to promote success of their company. In doing so, our directors must have regard to stakeholders and other matters set out in S172. The information presented below comprises the section 172 statement, which describes how directors have had regard to the matters when performing their duties.
Employees

Employees are informed of information on matters of concern to them through various forms of communication with senior management, The orm of communication will be dependent on the scale and importance of the information being disseminated and examples of this include irmwide communication by email, conference calls and attaching notices to boards in communal arcas at our depots.

 

Employees are consulted on a regular basis through team and one-to-one meetings and risk assessment / method statement creation. All and senior management directly engage with employees and employ an open-door policy. This provides employees with an opportunity to ask questions or raise any concerns as they see fit and ensures employee engagement remains at the forefront of the business.

 

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Customers

The Thomas Group of Companies continues to focus on the quality of its overall service to customers with account managers appointed to deliver to our major accounts.

Suppliers

Our suppliers are fundamental to the quality of our service offering and ensuring that as a business we meet the high standards of conduct we set ourselves.

Financial Institutions

Our bankers and lenders are key to supporting the ongoing growth of the group. Regular management information is shared and discussed, and we hold regular relationship meetings.

On behalf of the board

Mr W L Thomas
Director
31 January 2025
THOMAS HOLDINGS (NORTH WEST) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activity of the company and group continued to be that of the hire of plant and equipment (operated or non-operated), repair and maintenance of plant and equipment, hire and sale of plant, equipment and small tools, GPS positioning equipment fitted to construction plant, and civil engineering and groundworks.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mr W L Thomas
Mrs S E Thomas
Miss L L Thomas
Auditor

The auditor Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

We are establishing our carbon footprint and following on from that will aim to reduce the footprint and demonstrate this in a quantifiable manner.

 

We monitor fuel use and performance through Scania Fleet Management Portal.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Electricity purchased
758,112
676,787
- Fuel consumed for transport
5,952,225
4,583,648
6,710,337
5,260,435
THOMAS HOLDINGS (NORTH WEST) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 5 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
1,692,486.00
1,966,390.00
1,692,486.00
1,966,390.00
Scope 2 - indirect emissions
- Electricity purchased
215,565.00
290,341.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
-
-
Total gross emissions
1,908,051.00
2,256,731.00
Intensity ratio
Tonnes CO2e per employee
9353
12468
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Statement of directors' responsibilities

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THOMAS HOLDINGS (NORTH WEST) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 6 -
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr W L Thomas
Director
31 January 2025
THOMAS HOLDINGS (NORTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THOMAS HOLDINGS (NORTH WEST) LIMITED
- 7 -
Opinion

We have audited the financial statements of Thomas Holdings (North West) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

THOMAS HOLDINGS (NORTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THOMAS HOLDINGS (NORTH WEST) LIMITED
- 8 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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.

THOMAS HOLDINGS (NORTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THOMAS HOLDINGS (NORTH WEST) LIMITED
- 9 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Helen Davies (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
3 February 2025
Chartered Accountants
Statutory Auditor
Alpha House
4 Greek Street
Stockport
United Kingdom
SK3 8AB
THOMAS HOLDINGS (NORTH WEST) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
2024
2023
as restated
Notes
£
£
Turnover
3
82,727,449
61,818,678
Cost of sales
(47,860,961)
(31,142,280)
Gross profit
34,866,488
30,676,398
Administrative expenses
(24,125,241)
(21,975,385)
Other operating income
136,399
15,998
Operating profit
5
10,877,646
8,717,011
Interest payable and similar expenses
8
(9,481,190)
(9,298,305)
Profit/(loss) before taxation
1,396,456
(581,294)
Tax on profit/(loss)
9
(1,055,441)
(2,363,074)
Profit/(loss) for the financial year
26
341,015
(2,944,368)
Profit/(loss) for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
THOMAS HOLDINGS (NORTH WEST) LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
10
2,736,757
2,625,435
Tangible assets
11
134,644,641
129,351,251
137,381,398
131,976,686
Current assets
Stocks
15
999,420
501,983
Debtors
16
20,388,644
18,768,594
Cash at bank and in hand
2,854,343
1,269,056
24,242,407
20,539,633
Creditors: amounts falling due within one year
17
(123,957,271)
(117,565,439)
Net current liabilities
(99,714,864)
(97,025,806)
Total assets less current liabilities
37,666,534
34,950,880
Creditors: amounts falling due after more than one year
18
(4,877,266)
(5,247,556)
Provisions for liabilities
Deferred tax liability
21
20,237,677
17,492,748
(20,237,677)
(17,492,748)
Net assets
12,551,591
12,210,576
Capital and reserves
Called up share capital
23
2
2
Share premium account
24
3,999,999
3,999,999
Revaluation reserve
25
882,570
882,570
Profit and loss reserves
26
7,669,020
7,328,005
Total equity
12,551,591
12,210,576
The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
31 January 2025
Mr W L Thomas
Director
Company registration number 07658001 (England and Wales)
THOMAS HOLDINGS (NORTH WEST) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
127,977,160
124,406,917
Investments
13
7,906,674
11,869,771
135,883,834
136,276,688
Current assets
Debtors
16
901,042
8,500,900
Cash at bank and in hand
555,152
507,646
1,456,194
9,008,546
Creditors: amounts falling due within one year
17
(112,767,506)
(119,403,818)
Net current liabilities
(111,311,312)
(110,395,272)
Total assets less current liabilities
24,572,522
25,881,416
Creditors: amounts falling due after more than one year
18
(3,452,800)
(4,902,651)
Provisions for liabilities
Deferred tax liability
21
20,043,744
16,869,186
(20,043,744)
(16,869,186)
Net assets
1,075,978
4,109,579
Capital and reserves
Called up share capital
23
2
2
Share premium account
24
3,999,999
3,999,999
Revaluation reserve
25
882,570
882,570
Profit and loss reserves
26
(3,806,593)
(772,992)
Total equity
1,075,978
4,109,579

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £3,033,601 (2023 - £3,022,138 loss).

The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
31 January 2025
Mr W L Thomas
Director
Company registration number 07658001 (England and Wales)
THOMAS HOLDINGS (NORTH WEST) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
As restated for the period ended 31 May 2023:
Balance at 1 June 2022
2
3,999,999
-
0
10,272,373
14,272,374
Year ended 31 May 2023:
Loss and total comprehensive income as restated
-
-
-
(2,944,368)
(2,944,368)
Other movements
-
-
882,570
-
882,570
Balance at 31 May 2023
2
3,999,999
882,570
7,328,005
12,210,576
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
-
341,015
341,015
Balance at 31 May 2024
2
3,999,999
882,570
7,669,020
12,551,591
THOMAS HOLDINGS (NORTH WEST) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
As restated for the period ended 31 May 2023:
Balance at 1 June 2022
2
3,999,999
-
0
2,249,146
6,249,147
Year ended 31 May 2023:
Loss and total comprehensive income for the year
-
-
-
(3,022,138)
(3,022,138)
Other movements
-
-
882,570
-
882,570
Balance at 31 May 2023
2
3,999,999
882,570
(772,992)
4,109,579
Year ended 31 May 2024:
Loss and total comprehensive income for the year
-
-
-
(3,033,601)
(3,033,601)
Balance at 31 May 2024
2
3,999,999
882,570
(3,806,593)
1,075,978
THOMAS HOLDINGS (NORTH WEST) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
29,998,588
29,155,924
Interest paid
(9,481,190)
(9,298,305)
Income taxes refunded/(paid)
161,864
(28,663)
Net cash inflow from operating activities
20,679,262
19,828,956
Investing activities
Purchase of tangible fixed assets
(12,992,506)
(52,399,351)
Proceeds from disposal of tangible fixed assets
3,184,554
35,640,829
Proceeds from disposal of investment property
-
217,450
Purchase of subsidiaries, net of cash acquired
(5,738,299)
(5,817,330)
Net cash used in investing activities
(15,546,251)
(22,358,402)
Financing activities
Proceeds from ABL
2,457,318
33,054,226
Repayment of bank loans
(583,205)
1,285,055
Payment of finance leases obligations
(6,771,483)
(32,497,133)
Utilisation of trade finance facility
1,349,646
(2,384,376)
Net cash used in financing activities
(3,547,724)
(542,228)
Net increase/(decrease) in cash and cash equivalents
1,585,287
(3,071,674)
Cash and cash equivalents at beginning of year
1,269,056
4,340,730
Cash and cash equivalents at end of year
2,854,343
1,269,056
THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
1
Accounting policies
Company information

Thomas Holdings (North West) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Tai Hirion, Lywybr Hir, Caerwys, Flintshire, United Kingdom, CH7 5BL.

 

The group consists of Thomas Holdings (North West) Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Thomas Holdings (North West) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The parent company has an ABL facility in place which is due for renewal in March 2025. The ABL facility provider have expressed a positive appetite to renew the facility subject to relevant credit approval and legal documentation, therefore the Directors consider it appropriate to prepare the accounts on the going concern basis. The Directors are also positive that there is sufficient appetite within the ABL market to renew the facility on positive terms.

 

The accounts do not reflect any adjustments should the facility not be renewed.

1.5
Turnover

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

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

 

Where the value of work done exceeds the amounts invoiced, the excess is accounted for as amounts recoverable on contracts and is included within debtors.

 

Turnover, derived from plant hire is calculated on the basis of the hire of machines during the period.

 

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which historically was set at 20 years and form 1 June 2022 will be set at 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

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

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

Freehold land and buildings
0% on cost
Plant and equipment
25% on reducing balance, 20% on cost, 16% on reducing balance and at varying rates on cost
Fixtures and fittings
20% on cost and 15% 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 recognised in the profit and loss account.

Land and buildings comprise freehold properties occupied by the group. The directors consider that the freehold properties are maintained in such a state of repair that their residual value is at least equal to their carrying value. Accordingly no depreciation is charged on the grounds of immateriality. Annual impairment reviews are undertaken and provisions made at the end of each reporting period where necessary.

 

Non-depreciation of the property is a departure from the Companies Act 2006, but in the director's opinion is necessary to give a true and fair view.

 

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 or .

 

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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).

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

 

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

1.11
Cash and cash equivalents

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

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Other financial assets

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

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 20 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price. 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
Taxation

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

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 21 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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 profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

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

 

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

 

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

1.16
Retirement benefits

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

1.17
Leases

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

 

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

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 leased asset are consumed.

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

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 22 -
1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.19

Long term contracts

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

1.20

Retentions

Retention recognition policy follows that of BIM51520, whereby the recognition of retentions is deferred until their receipt becomes virtually certain.

1.21

Prior year restatement

There was an adjustment of £32.6m to Group turnover and Group cost of sales in the prior year due to a consolidation error. There was no effect on the gross profit or results reported in the year

2
Judgements and key sources of estimation uncertainty

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

 

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

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Amounts recoverable on contracts

 

Thomas Contracting Limited

The level of turnover recognised in respect of long term contracts is determined by reference to the proportion of work carried out at year end, as explained in note 1.5. Professional judgement is applied by the company's own quantity surveyors in order to assess the stage of completion and raise appropriate and reasonable applications for payment.

 

Provisions are made against applications for payment where the company believes there is reasonable doubt regarding the recoverability of amounts receivable.

 

In assessing overall profitability of a contract, upon which attributable profit is calculated, an estimate is made of the remaining costs to be incurred (including costs associated with variations to the customers original budget) in order to complete each long term contract. Judgement is also required in identifying loss making contracts in respect of which provision is made in full in the year in which they are first foreseen.

 

 

Depreciation and impairment of fixed assets

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of tangible fixed assets and the calculation of depreciation charges. The estimates and associated assumptions are based on the depreciation accounting policies that are set factoring in historical experience and other factors that are considered to be relevant.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
as restated
Contracting
25,664,071
19,461,084
Plant Hire and Plant Sales
57,063,378
42,357,594
82,727,449
61,818,678
2024
2023
£
£
Other revenue
Grants received
81,495
11,338

There was an adjustment of £32.6m to Group turnover and Group cost of sales in the prior year due to a consolidation error. There was no effect on the gross profit or results reported in the year

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
10,800
10,000
Audit of the financial statements of the company's subsidiaries
86,900
70,000
97,700
80,000
For other services
Taxation compliance services
24,360
20,000
All other non-audit services
33,440
40,000
57,800
60,000
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
54,862
-
Plant and skip hire
2,254,970
2,095,755
Depreciation of owned tangible fixed assets
19,816,309
22,070,068
Profit on disposal of tangible fixed assets
(865,685)
(5,300,318)
Amortisation of intangible assets
661,215
352,460
Operating lease charges
1,052,781
971,543
THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production and operational
117
97
-
-
Administration and management
87
84
3
3
Total
204
181
3
3

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
7,680,923
6,661,901
50,270
44,093
Social security costs
760,034
689,507
5,682
4,568
Pension costs
168,610
158,483
-
0
246
8,609,567
7,509,891
55,952
48,907
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
50,270
145,357
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts, loans and asset based lending
8,601,918
6,251,769
Interest on invoice finance arrangements
411,317
333,177
Interest on finance leases and hire purchase contracts
370,537
2,637,002
Other interest
97,418
76,357
Total finance costs
9,481,190
9,298,305
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(98,137)
-
0
THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
9
Taxation
2024
2023
£
£
(Continued)
- 26 -
Deferred tax
Origination and reversal of timing differences
1,536,122
2,363,074
Previously unrecognised tax loss, tax credit or timing difference
(382,544)
-
0
Total deferred tax
1,153,578
2,363,074
Total tax charge
1,055,441
2,363,074

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

2024
2023
£
£
Profit/(loss) before taxation
1,396,456
(581,294)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
349,114
(110,446)
Tax effect of expenses that are not deductible in determining taxable profit
2,513,856
-
0
Tax effect of income not taxable in determining taxable profit
(2,574,524)
-
0
Unutilised tax losses carried forward
-
0
6,418,919
Permanent capital allowances in excess of depreciation
-
0
(5,321,628)
Other permanent differences
(247,592)
(986,845)
Deferred tax adjustments in respect of prior years
1,014,587
2,363,074
Taxation charge
1,055,441
2,363,074

 

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 June 2023
3,538,503
Additions - business combinations
772,537
At 31 May 2024
4,311,040
Amortisation and impairment
At 1 June 2023
913,068
Amortisation charged for the year
661,215
At 31 May 2024
1,574,283
Carrying amount
At 31 May 2024
2,736,757
At 31 May 2023
2,625,435
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 June 2023
1,763,838
178,509,293
9,374
180,282,505
Additions
-
0
13,406,024
-
0
13,406,024
Business combinations
582,845
13,439,789
-
0
14,022,634
Disposals
(582,845)
(6,502,084)
-
0
(7,084,929)
At 31 May 2024
1,763,838
198,853,022
9,374
200,626,234
Depreciation and impairment
At 1 June 2023
-
0
50,921,880
9,374
50,931,254
Depreciation charged in the year
-
0
19,816,309
-
0
19,816,309
Eliminated in respect of disposals
-
0
(4,765,970)
-
0
(4,765,970)
At 31 May 2024
-
0
65,972,219
9,374
65,981,593
Carrying amount
At 31 May 2024
1,763,838
132,880,803
-
0
134,644,641
At 31 May 2023
1,763,838
127,587,413
-
0
129,351,251
THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
11
Tangible fixed assets
(Continued)
- 28 -
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 June 2023
1,763,838
169,872,325
9,374
171,645,537
Additions
-
0
22,614,374
-
0
22,614,374
Disposals
-
0
(5,577,991)
-
0
(5,577,991)
At 31 May 2024
1,763,838
186,908,708
9,374
188,681,920
Depreciation and impairment
At 1 June 2023
-
0
47,229,246
9,374
47,238,620
Depreciation charged in the year
-
0
17,492,624
-
0
17,492,624
Eliminated in respect of disposals
-
0
(4,026,484)
-
0
(4,026,484)
At 31 May 2024
-
0
60,695,386
9,374
60,704,760
Carrying amount
At 31 May 2024
1,763,838
126,213,322
-
0
127,977,160
At 31 May 2023
1,763,838
122,643,079
-
0
124,406,917

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
6,882,193
5,968,448
4,454,204
5,444,115

During the prior year the decision was made to transfer motor vehicles to the plant and machinery pool. This decision was made as it is representitive of how management maintain registers, due to the nature of construction trade motor vehicals being most relevently classified as plant and machinery.

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 29 -
12
Investment property

The fair value of the investment property has been arrived at on the basis of the director's valuation carried out at the balance sheet date. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
7,906,674
11,869,771
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023
11,869,771
Additions
5,835,000
Return of investment
(9,798,097)
At 31 May 2024
7,906,674
Carrying amount
At 31 May 2024
7,906,674
At 31 May 2023
11,869,771
THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 30 -
14
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Thomas Contracting Limited
1
Ordinary
100.00
Thomas Plant Hire Limited
1
Ordinary
100.00
Thomas Tool Hire Limited
1
Ordinary
100.00
Thomas Plant and Body Repairs Ltd
1
Ordinary
100.00
SOS Hose Services Ltd
1
Ordinary
100.00
On Grade Machine Control Ltd
2
Ordinary
100.00
Thomas Plant Sales Ltd
1
Ordinary
100.00
Thomas Cabin Hire & Sales Limited
1
Ordinary
100.00
Manton Fork Lifts Limited
1
Ordinary
100.00
Thomas Attachments Limited
1
Ordinary
100.00
Diggers (Bury) Limited
1
Ordinary
100.00
Thomas Armco and Fencing Ltd
3
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Tai Hirion, Llwybr-Hir, Caewys, Holywell, Flintshire, Wales, CH7 5BL
2
Penllwyn Farm, Llyn Helyg, Lloc, Holywell, Wales, CH8 8SB
3
Polbeth Industrial Estate, West Calder, West Lothian, EH55 8UU
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
688,391
190,826
-
-
Finished goods and goods for resale
311,029
311,157
-
0
-
0
999,420
501,983
-
-
THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 31 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
12,380,021
11,961,649
21,936
147,731
Gross amounts owed by contract customers
5,326,437
3,956,617
-
0
-
0
Corporation tax recoverable
23,548
15,287
-
0
-
0
Amounts owed by group undertakings
-
-
488,502
7,465,269
Other debtors
1,469,964
1,729,078
-
0
340,605
Prepayments and accrued income
783,936
1,105,963
390,604
547,295
19,983,906
18,768,594
901,042
8,500,900
Amounts falling due after more than one year:
Deferred tax asset (note 21)
404,738
-
0
-
0
-
0
Total debtors
20,388,644
18,768,594
901,042
8,500,900

Included in trade debtors is an amount of £8,801,789 (2023: £7,055,457) relating to trade debts processed through an invoice discounting facility provided by Barclays Bank plc. This facility together with the asset backed lending facility is secured over the assets of the Group.

17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
152,553
144,041
152,553
144,041
Obligations under finance leases
20
2,165,275
2,175,679
1,588,014
1,962,863
Trade creditors
10,742,784
5,938,136
2,386,185
1,298,323
Amounts owed to group undertakings
-
0
-
0
3,882,615
10,522,481
Corporation tax payable
47,273
-
0
684
684
Other taxation and social security
1,851,628
4,149,583
106,156
3,300,575
Other creditors
108,858,858
105,103,096
104,632,169
102,174,851
Accruals and deferred income
138,900
54,904
19,130
-
0
123,957,271
117,565,439
112,767,506
119,403,818

There is a cross company guarantee across the Group held within Thomas Holdings (North West) Limited, the balance of this facility as at 31 May 2024 was £104,632,169 (2023 £102,174,851).

 

Also included in other creditors, held within Thomas Plant Hire Limited, is a balance of £4,170,987 (2023 £2,821,340), this confidential invoice discounting facility is secured against the debtors of the company.

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 32 -
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
1,402,393
1,554,943
1,402,393
1,554,943
Obligations under finance leases
20
3,474,873
3,692,613
2,050,407
3,347,708
4,877,266
5,247,556
3,452,800
4,902,651
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,554,946
1,698,984
1,554,946
1,698,984
Payable within one year
152,553
144,041
152,553
144,041
Payable after one year
1,402,393
1,554,943
1,402,393
1,554,943

The long-term loans are secured by fixed charges over freehold property.

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
2,165,275
2,175,679
1,588,014
1,962,863
In two to five years
3,474,873
3,692,613
2,050,407
3,347,708
5,640,148
5,868,292
3,638,421
5,310,571

Finance lease payments represent rentals payable by the company or group 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. All liabilities are secured on the assets purchased.

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 33 -
21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
20,237,677
17,492,748
-
-
Other
-
-
404,738
-
20,237,677
17,492,748
404,738
-
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
20,043,744
16,869,186
-
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
17,492,748
14,221,072
Charge to profit or loss
1,536,122
2,350,382
Other adjustments
(382,544)
-
Deferred tax added on business combinations
1,186,613
921,294
Liability at 31 May 2024
19,832,939
17,492,748

 

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
168,610
158,483

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2
THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
23
Share capital
(Continued)
- 34 -
24
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
3,999,999
3,999,999
3,999,999
3,999,999
25
Revaluation reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
882,570
-
0
882,570
-
0
Revaluation of plant and machinery
-
882,570
-
882,570
At the end of the year
882,570
882,570
882,570
882,570
26
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
7,328,005
10,272,373
(772,992)
2,249,146
As restated
7,328,005
10,272,373
(772,992)
2,249,146
Profit/(loss) for the year
341,015
(2,944,368)
(3,033,601)
(3,022,138)
At the end of the year
7,669,020
7,328,005
(3,806,593)
(772,992)
THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 35 -
27
Acquisition of a business

On 2 November 2023 the group acquired 100% percent of the issued capital of Mulholland Plant Services Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Plant and equipment
14,022,634
-
14,022,634
Trade and other receivables
1,502,436
-
1,502,436
Cash and cash equivalents
96,701
-
96,701
Finance lease obligations
(6,129,911)
-
(6,129,911)
Trade and other payables
(3,267,500)
-
(3,267,500)
Other tax and social security
(114)
-
(114)
Deferred tax
(1,161,783)
-
(1,161,783)
Total identifiable net assets
5,062,463
-
5,062,463
Goodwill
772,537
Total consideration
5,835,000
The consideration was satisfied by:
£
Cash
5,805,000
Legal Fees
30,000
5,835,000
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
38,989
Loss after tax
(254,234)
28
Events after the reporting date

On 13th June 2024 the Group entered into an agreement with the administrators of ECY Haulmark Limited to purchase the assets and licence of the company for a consideration of £189k.

On 22 July 2024 the Group entered into an agreement with John Nixon Limited to purchase the plant for a consideration of £15m.

The Group has committed to approximately £40m of plant purchases.

THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 36 -
29
Related party transactions

Included in debtors is a balance of £Nill (2023 £314,397) due from W & S Property & Land Limited. All loans are interest free and repayable on demand.

 

On 22 February 2024. W & S Property & Land Limited purchased the property from Thomas Armco and Fencing Limited for a consideration of £598k.

 

Throughout the year the Group rental charges totalling £1.05m (2023 £972k).

 

All transactions are completed at arms-length.

 

Other related parties comprise wholly owned group companies. Transactions with related parties are at arms-length agreed terms, conditions and prices. The group and company have taken advantage of the exemptio within FRS102 Section 33.1A from the requirements to disclose transactions with other wholly owned companies within the same group.

30
Controlling party

The controlling party is Mr W L Thomas.

31
Cash generated from group operations
2024
2023
£
£
Profit/(loss) for the year after tax
341,015
(2,944,368)
Adjustments for:
Taxation charged
1,055,441
2,363,074
Finance costs
9,481,190
9,298,305
Gain on disposal of tangible fixed assets
(865,685)
(5,300,318)
Amortisation and impairment of intangible assets
661,215
352,460
Depreciation and impairment of tangible fixed assets
19,816,309
22,070,068
Movements in working capital:
(Increase)/decrease in stocks
(497,437)
521,997
Decrease in debtors
295,385
4,402,868
Decrease in creditors
(288,845)
(1,608,162)
Cash generated from operations
29,998,588
29,155,924
THOMAS HOLDINGS (NORTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 37 -
32
Analysis of changes in net debt - group
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
1,269,056
1,585,287
2,854,343
Borrowings excluding overdrafts
(1,698,984)
144,038
(1,554,946)
Obligations under finance leases
(5,868,292)
228,144
(5,640,148)
Invoice Finance
(2,821,340)
(1,349,647)
(4,170,987)
ABL Facility
(102,174,851)
(2,457,318)
(104,632,169)
(111,294,411)
(1,849,496)
(113,143,907)
33
Prior period adjustment
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Prior year restatement

There was an adjustment of £32.6m to Group turnover and Group cost of sales in the prior year due to a consolidation error. There was no effect on the gross profit or results reported in the year

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