Company registration number 09509966 (England and Wales)
CRJ SERVICES HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
CRJ SERVICES HOLDINGS LTD
COMPANY INFORMATION
Directors
J L Carter
L B McQuaid
R H Symons
A Clarkson
Company number
09509966
Registered office
Brook House Farm
London Road
Allostock
Knutsford
Cheshire
WA16 9LU
Auditor
Sumer Auditco Limited
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
CRJ SERVICES HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
CRJ SERVICES HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
CRJ Services Holdings Ltd continues to act as a parent holding company. The CRJ Services group of companies hires and sells high quality machinery into the material processing and recycling industry. We mainly supply shredders, screeners and separators and the associated parts to a wide range of customers throughout the UK and Ireland. We have purpose built workshops that repairs our own fleet and we also carry out repairs to customers machines.
We are passionate about playing our part in helping the UK and Ireland to recycle and over the years we have helped divert millions of tonnes of waste from landfill. We have built a reputation for quality, reliability and going the extra mile to ensure our customers operations run smoothly and this reputation is something we feel sets us apart from the rest of the industry.
The year to March 2024 was financially quite difficult in that we incurred margin erosion in the hires part of the business. This was driven by several factors: increased depreciation due to the large investment in the fleet in the previous year, high interest rates resulting in increased cost of financing the fleet, increased payroll costs and an increase in the cost of maintaining the fleet due to machine parts cost increases and the increased cost of specialist subcontractors.
The Directors are pleased with the response of the management team and the wider business in focusing on returning these margins back to previous levels and we are now seeing margins and profitability exceeding expectations
During the year we focused on establishing a strong management team that we believe can take the business forward and achieve the growth that we believe the business is capable of. We restructured the team and split operations into two areas and appointed in the first quarter of 2025, a Head of Engineering and a Service Delivery Manager. Both appointments are focused on quality of engineering and repair and providing an exceptional service to our customers, so they achieve their production targets.
Our balance sheet continues to remain very strong at £9.5m (2023: £9.3m) which places the business in a stable position for the future.
Principal risks and uncertainties
The group uses various financial instruments including hire purchase, finance leases, trade credit and other creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group’s operations.
The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail below. The directors review and agree policies for managing these risks. These policies have remained unchanged from previous years.
Liquidity risk
The group seeks to manage financial risk by ensuring liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Interest rate risk
The group finances its operations through a combination of retained profits, finance leases and hire purchase contracts. The group exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.
Foreign currency risk
The group’s principal foreign currency exposures arose from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.
CRJ SERVICES HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Credit risk
The principal credit risk arises from the group's trade debtors.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Economic risk
As a result of global economic factors, including both the recovery from Covid-19 and the Ukraine war, costs have generally increased in most areas, including fuel, energy and wages. These inflation related price increase are expected to remain for some time to come. Close monitoring of costs by the directors to budget are in place to mitigate the financial impact on on-going profitability.
Key performance indicators
The group reviews and monitors its performance against a number of key performance indicators both financial and non-financial. The principal measures include revenue growth, maintaining service levels, improvement of gross margins, profit before tax (“PBT”). These are reviewed by the directors on a monthly basis.
The directors have and will continue to monitor all of the KPI’s and daily operating controls and maintain a strong focus on increasing performance in all aspects of the business.
The main KPI’s and corresponding results are as follows:
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Net current assets / (liabilities) | | | | |
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The directors are pleased with the performance of the group reporting a satisfactory profit before tax in the year to March 2024.
The group remains in a strong and stable financial position.
J L Carter
Director
3 February 2025
CRJ SERVICES HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the group continued to be the hire and sale of equipment.
The company is the parent of a trading group comprising two subsidiaries:
CRJ Services Limited, which hires and sells material processing and recycling machines.
Matpro Machinery Limited, which is a dormant company.
Results and dividends
The results for the year are set out on page 8.
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:
J L Carter
L B McQuaid
R H Symons
A Clarkson
Future developments
The directors will continue to monitor profit margins, utilisation of assets and sales growth in the forthcoming year. The group's growth strategy is based around strong customer partnerships and continued investment in its hire and parts business.
Auditor
Sumer Auditco Limited were appointed as auditor to the group and are deemed to be reappointed under section 487(2) of the Companies Act 2006.
CRJ SERVICES HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
J L Carter
Director
3 February 2025
CRJ SERVICES HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CRJ SERVICES HOLDINGS LTD
- 5 -
Opinion
We have audited the financial statements of CRJ Services Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CRJ SERVICES HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CRJ SERVICES HOLDINGS LTD
- 6 -
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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, CRJ Services Holdings Ltd is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, CRJ Services holdings Ltd is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the group's license to operate. We identified the following areas as those most likely to have such an effect: laws related the hire and sale of machinery, employment, road transportation, health & safety and data protection.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.
CRJ SERVICES HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CRJ SERVICES HOLDINGS LTD
- 7 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:
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.
Caroline Snape (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited, Statutory Auditor
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
4 February 2025
CRJ SERVICES HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
25,109,852
25,301,521
Cost of sales
(21,306,642)
(19,532,361)
Gross profit
3,803,210
5,769,160
Administrative expenses
(3,027,818)
(3,127,199)
Operating profit
4
775,392
2,641,961
Interest receivable and similar income
8
3,556
Interest payable and similar expenses
9
(495,460)
(290,441)
Profit before taxation
279,932
2,355,076
Tax on profit
10
(72,652)
(482,889)
Profit for the financial year
207,280
1,872,187
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
CRJ SERVICES HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
12,342
16,140
Tangible assets
12
15,337,330
15,885,614
15,349,672
15,901,754
Current assets
Stocks
15
5,449,827
3,981,189
Debtors
16
3,597,990
4,691,907
Cash at bank and in hand
1,731,238
3,094,859
10,779,055
11,767,955
Creditors: amounts falling due within one year
17
(9,939,020)
(9,727,410)
Net current assets
840,035
2,040,545
Total assets less current liabilities
16,189,707
17,942,299
Creditors: amounts falling due after more than one year
18
(5,395,755)
(7,289,093)
Provisions for liabilities
Deferred tax liability
20
1,328,281
1,394,815
(1,328,281)
(1,394,815)
Net assets
9,465,671
9,258,391
Capital and reserves
Called up share capital
22
930
930
Capital redemption reserve
331
331
Other reserves
4,173,310
4,173,310
Profit and loss reserves
5,291,100
5,083,820
Total equity
9,465,671
9,258,391
The financial statements were approved by the board of directors and authorised for issue on 3 February 2025 and are signed on its behalf by:
03 February 2025
J L Carter
Director
CRJ SERVICES HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
301,800
720,659
Investments
13
1,000
1,261
302,800
721,920
Current assets
Debtors
16
1,912,610
845,750
Cash at bank and in hand
5,481
5,602
1,918,091
851,352
Creditors: amounts falling due within one year
17
(139,186)
(107,958)
Net current assets
1,778,905
743,394
Total assets less current liabilities
2,081,705
1,465,314
Provisions for liabilities
Deferred tax liability
20
62,197
110,445
(62,197)
(110,445)
Net assets
2,019,508
1,354,869
Capital and reserves
Called up share capital
22
930
930
Capital redemption reserve
331
331
Profit and loss reserves
2,018,247
1,353,608
Total equity
2,019,508
1,354,869
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £664,639 (2023 - £1,720,388 profit).
The financial statements were approved by the board of directors and authorised for issue on 3 February 2025 and are signed on its behalf by:
03 February 2025
J L Carter
Director
Company Registration No. 09509966
CRJ SERVICES HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
1,261
4,173,310
7,136,633
11,311,204
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
1,872,187
1,872,187
Own shares acquired
-
-
-
(3,925,000)
(3,925,000)
Redemption of shares
22
(425)
425
-
-
Bonus issue of shares
94
(94)
-
-
-
Balance at 31 March 2023
930
331
4,173,310
5,083,820
9,258,391
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
207,280
207,280
Balance at 31 March 2024
930
331
4,173,310
5,291,100
9,465,671
CRJ SERVICES HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,261
3,558,220
3,559,481
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
1,720,388
1,720,388
Own shares acquired
-
-
(3,925,000)
(3,925,000)
Redemption of shares
22
(425)
425
-
Bonus issue of shares
94
(94)
-
-
Balance at 31 March 2023
930
331
1,353,608
1,354,869
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
664,639
664,639
Balance at 31 March 2024
930
331
2,018,247
2,019,508
CRJ SERVICES HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
4,049,264
5,943,692
Interest paid
(495,460)
(290,441)
Income taxes paid
(275,791)
(219,290)
Net cash inflow from operating activities
3,278,013
5,433,961
Investing activities
Purchase of intangible assets
-
(10,238)
Purchase of tangible fixed assets
(1,990,335)
(1,324,191)
Proceeds from disposal of tangible fixed assets
963,782
1,071,087
Interest received
3,556
Net cash used in investing activities
(1,026,553)
(259,786)
Financing activities
Purchase of own shares
(3,925,000)
Payment of finance leases obligations
(3,615,081)
(2,150,227)
Net cash used in financing activities
(3,615,081)
(6,075,227)
Net decrease in cash and cash equivalents
(1,363,621)
(901,052)
Cash and cash equivalents at beginning of year
3,094,859
3,995,911
Cash and cash equivalents at end of year
1,731,238
3,094,859
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information
CRJ Services Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Brook House Farm, London Road, Allostock, Knutsford, Cheshire, WA16 9LU.
The group consists of CRJ Services Holdings Ltd 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. 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:
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;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
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, joint ventures and associates 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.
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company CRJ Services Holdings Ltd together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 March 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
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.
Turnover represents the value of equipment hire services provided to customers during the period, excluding value added tax.
Turnover from equipment sales, part sales and transport is recognised when goods have been delivered to customers such that the risks and rewards of ownership have transferred to them.
Turnover from equipment hire services is recognised upon completion of terms of hire based on the hourly usage of the equipment by the customer.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Website
5 years straight line basis
1.6
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.
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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% p.a. straight line basis
Plant and equipment
20% p.a. reducing balance basis
Fixtures and fittings
20% p.a. reducing balance basis
Computers
20% p.a. reducing balance basis
Motor vehicles
20% p.a. reducing balance basis
Assets in the course of construction are not depreciated.
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.
On the disposal of an asset that was previously part of the company's hire fleet, and where the customer purchasing the asset was not the lessee of the asset during its use as part of the hire fleet, the carrying value of the asset will be charged to cost of sales and the sale proceeds will be credited to turnover.
1.7
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.
1.8
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). 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.
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.
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.
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks are valued using a first-in first-out costing basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
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.
1.11
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.
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
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.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
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.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
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.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
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.
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.
Tangible fixed assets
The useful economic life of tangible fixed assets, and residual values where applicable, have to be estimated by the directors of the group to ensure an appropriate depreciation charge is recognised each year. The value of the assets ultimately depends on the condition of the assets and whether economic income can be derived from the asset. The directors undertake a periodic review of the assets to ensure the value of the assets is fairly stated within the financial statements.
During the year, depreciation of £3,463,195 (2023: £3,041,325) has been charged.
Refer to note 12 for the carrying value of tangible fixed assets impacted by this key estimate.
Warranty provision
The directors have recognised a warranty provision on certain sales of plant and machinery to cover against the future costs associated with any repair or replacement of parts for those items, which are not covered by the manufacturer's warranty. This provision is based on historical information and is calculated as a fixed percentage of new machine sales.
At the year-end, a warranty provision of £353,060 (2023: £100,000) is included in other creditors.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Plant hire sales
9,544,772
8,752,429
Machinery sales
10,420,948
11,988,178
Parts sales
4,658,424
3,990,826
Transport sales
485,708
570,088
25,109,852
25,301,521
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 21 -
2024
2023
£
£
Turnover analysed by geographical market
UK
23,203,306
24,115,960
Europe
1,875,774
1,167,845
Rest of World
30,772
17,716
25,109,852
25,301,521
2024
2023
£
£
Other revenue
Interest income
-
3,556
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(356)
61,201
Depreciation of owned tangible fixed assets
731,900
914,920
Depreciation of tangible fixed assets held under finance leases
2,731,295
2,126,405
Loss on disposal of tangible fixed assets
24,829
4,854
Amortisation of intangible assets
3,798
2,848
5
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
-
-
Audit of the financial statements of the company's subsidiaries
20,500
16,000
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
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 engineering
48
38
-
-
Administration
13
11
-
-
Sales
9
10
-
-
Total
70
59
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,183,349
2,832,159
Social security costs
373,726
330,055
-
-
Pension costs
58,320
170,403
3,615,395
3,332,617
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
594,356
469,757
Company pension contributions to defined contribution schemes
5,283
123,632
599,639
593,389
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
190,494
199,893
Company pension contributions to defined contribution schemes
1,321
41,321
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023: 4).
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,556
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
214
Other interest on financial liabilities
62,653
32,252
Interest on finance leases and hire purchase contracts
432,807
257,975
Total finance costs
495,460
290,441
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
139,186
314,725
Adjustments in respect of prior periods
(38,934)
Total current tax
139,186
275,791
Deferred tax
Origination and reversal of timing differences
(66,534)
157,394
Changes in tax rates
49,704
Total deferred tax
(66,534)
207,098
Total tax charge
72,652
482,889
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 24 -
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
279,932
2,355,076
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
69,983
447,464
Tax effect of expenses that are not deductible in determining taxable profit
1,491
32,917
Gains not taxable
(313)
(2,090)
Adjustments in respect of prior years
(38,934)
Effect of change in corporation tax rate
-
49,704
Permanent capital allowances in excess of depreciation
(7,144)
Depreciation on assets not qualifying for tax allowances
1,491
972
Taxation charge
72,652
482,889
Deferred tax has been recognised at a rate of 25%. In October 2022, the government announced an increase in the corporation tax main rate from 19% to 25% for companies with profit over £250,000. There is a small company rate of 19% for taxable profits under £50,000 and marginal relief available for profits falling between £50,000 - £250,000 with effect from 1 April 2023.
11
Intangible fixed assets
Group
Website
£
Cost
At 1 April 2023 and 31 March 2024
18,988
Amortisation and impairment
At 1 April 2023
2,848
Amortisation charged for the year
3,798
At 31 March 2024
6,646
Carrying amount
At 31 March 2024
12,342
At 31 March 2023
16,140
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
336,727
21,439,774
86,697
186,017
534,954
22,584,169
Additions
57,869
3,467,859
23,537
40,251
314,006
3,903,522
Disposals
(1,988,265)
(140)
(104,331)
(2,092,736)
At 31 March 2024
394,596
22,919,368
110,234
226,128
744,629
24,394,955
Depreciation and impairment
At 1 April 2023
56,610
6,355,981
30,016
51,220
204,728
6,698,555
Depreciation charged in the year
15,594
3,312,967
12,447
30,770
91,417
3,463,195
Eliminated in respect of disposals
(1,042,871)
(125)
(61,129)
(1,104,125)
At 31 March 2024
72,204
8,626,077
42,463
81,865
235,016
9,057,625
Carrying amount
At 31 March 2024
322,392
14,293,291
67,771
144,263
509,613
15,337,330
At 31 March 2023
280,117
15,083,793
56,681
134,797
330,226
15,885,614
Company
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
1,281,499
6,102
49,230
1,336,831
Disposals
(639,605)
(27,300)
(666,905)
At 31 March 2024
641,894
6,102
21,930
669,926
Depreciation and impairment
At 1 April 2023
575,059
5,147
35,966
616,172
Depreciation charged in the year
112,539
191
2,414
115,144
Eliminated in respect of disposals
(341,854)
(21,336)
(363,190)
At 31 March 2024
345,744
5,338
17,044
368,126
Carrying amount
At 31 March 2024
296,150
764
4,886
301,800
At 31 March 2023
706,440
955
13,264
720,659
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets
(Continued)
- 26 -
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
10,742,517
11,531,615
Motor vehicles
194,868
57,652
10,937,385
11,589,267
-
-
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
1,000
1,261
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
1,261
Impairment
At 1 April 2023
-
Impairment losses
261
At 31 March 2024
261
Carrying amount
At 31 March 2024
1,000
At 31 March 2023
1,261
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
CRJ Services Limited
1
Sale and hire of material processing and recycling machines
Ordinary
100.00
Matpro Machinery Limited
2
Dormant
Ordinary
100.00
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Subsidiaries
(Continued)
- 27 -
Registered office addresses (all UK unless otherwise indicated):
1
Brook House Farm, London Road, Allostock, Knutsford, Cheshire, WA16 9LU
2
272 Bath Street, Glasglow, G2 4JR
During the year, two of the company's dormant subsidiaries were dissolved. CRJ Services (Northern Ireland) Ltd was dissolved on 26 March 2024 and CRJ Services Machinery (Ireland) Limited was dissolved on 27 March 2024.
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
95,432
34,920
-
-
Finished goods and goods for resale
5,354,395
3,946,269
5,449,827
3,981,189
-
-
Stock with a carrying value of £Nil (2023: £49,909) is held on a hire purchase agreement.
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,996,475
3,194,495
Amounts owed by group undertakings
-
-
1,405,609
23,749
Other debtors
216,623
185,213
1
1
Prepayments and accrued income
1,384,892
1,312,199
507,000
822,000
3,597,990
4,691,907
1,912,610
845,750
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
3,712,296
3,520,852
Trade creditors
3,666,073
3,347,330
Corporation tax payable
139,186
275,791
139,186
107,958
Other taxation and social security
655,263
625,805
-
-
Other creditors
589,564
330,201
Accruals and deferred income
1,176,638
1,627,431
9,939,020
9,727,410
139,186
107,958
Obligations under finance leases are secured against the assets to which they relate.
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
5,395,755
7,289,093
Obligations under finance leases are secured against the assets to which they relate.
19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
3,712,296
3,520,852
In two to five years
5,395,755
7,289,093
9,108,051
10,809,945
-
-
Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. 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.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,329,604
1,395,884
Retirement benefit obligations
(1,323)
(1,069)
1,328,281
1,394,815
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
62,197
110,445
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
20
Deferred taxation
(Continued)
- 29 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
1,394,815
110,445
Credit to profit or loss
(66,534)
(48,248)
Liability at 31 March 2024
1,328,281
62,197
The deferred tax liability set out above predominately relates to accelerated capital allowances that are expected to mature over the associated fixed assets useful economic life. Pension contributions will attract tax relief in the year paid.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,320
170,403
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.
As at the year-end, contributions due to the schemes in respect of the current reporting period were £12,638 (2023: £10,966).
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
320
320
320
320
B Ordinary shares of £1 each
47
47
47
47
C Ordinary shares of £1 each
47
47
47
47
D Ordinary shares of £1 each
94
94
94
94
E Ordinary shares of £1 each
139
139
139
139
F Ordinary shares of £1 each
94
94
94
94
G Ordinary shares of £1 each
189
189
189
189
930
930
930
930
All shares carry no fixed right to income and rank pari passu in every respect.
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
23
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
30,000
-
-
-
Between two and five years
55,000
-
-
-
85,000
-
-
-
24
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
17,783
28,962
145,086
216,151
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Other related parties
-
46,915
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
862
-
Other information
The company has taken advantage of the exemption provided in Financial Reporting Standard 102 Section 33 from disclosing related party transactions with group companies.
CRJ SERVICES HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
25
Cash generated from group operations
2024
2023
£
£
Profit after taxation
207,280
1,872,187
Adjustments for:
Taxation charged
72,652
482,889
Finance costs
495,460
290,441
Investment income
(3,556)
Loss on disposal of tangible fixed assets
24,829
4,854
Amortisation and impairment of intangible assets
3,798
2,848
Depreciation and impairment of tangible fixed assets
3,463,195
3,041,325
Movements in working capital:
Increase in stocks
(1,468,638)
(295,757)
Decrease/(increase) in debtors
1,093,917
(960,939)
Increase in creditors
156,771
1,509,400
Cash generated from operations
4,049,264
5,943,692
26
Analysis of changes in net debt - group
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
3,094,859
(1,363,621)
-
1,731,238
Obligations under finance leases
(10,809,945)
3,615,081
(1,913,187)
(9,108,051)
(7,715,086)
2,251,460
(1,913,187)
(7,376,813)
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