Company registration number SC198968 (Scotland)
THOMAS ARMCO AND FENCING LTD
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
THOMAS ARMCO AND FENCING LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
THOMAS ARMCO AND FENCING LTD
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 1 -
31 May 2024
31 October 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,050,970
14,022,634
Current assets
Debtors
4
1,857,751
1,502,436
Cash at bank and in hand
630,004
96,701
2,487,755
1,599,137
Creditors: amounts falling due within one year
5
(1,226,401)
(9,128,358)
Net current assets/(liabilities)
1,261,354
(7,529,221)
Total assets less current liabilities
3,312,324
6,493,413
Creditors: amounts falling due after more than one year
6
(1,266,531)
(269,167)
Provisions for liabilities
(89,373)
(1,161,783)
Net assets
1,956,420
5,062,463
Capital and reserves
Called up share capital
1,000,000
1,000,000
Profit and loss reserves
7
956,420
4,062,463
Total equity
1,956,420
5,062,463

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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:
Mrs L Thomas
Director
Company Registration No. SC198968
THOMAS ARMCO AND FENCING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MAY 2024
- 2 -
1
Accounting policies
Company information

Thomas Armco and Fencing Ltd is a private company limited by shares incorporated in Scotland. The registered office is Polbeth Industrial Estate, West Calder, West Lothian, United Kingdom, EH55 8UU.

1.1
Reporting period

The financial statements are presented for a 7 month period to 31 May 2024, to align with the parent company Thomas Holdings (North West) Limited. The prior accounting period was shortened to an 11 month period to match the date of acquisition, therefore, the comparative information presented in these financial statements may not be entirely comparable.

1.2
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 financial statements of the company are consolidated in the financial statements of Thomas Holdings (North West) Limited. These consolidated financial statements are available from the registered office at Tai Hirion Lywybr Hir Caerwys Flintshire United Kingdom CH7 5BL

1.3
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, derived from the principal activity, is calculated on the basis of the installation of armco barriers and fencing.

1.4
Tangible fixed assets

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

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

Freehold land and buildings
4% on cost
Plant and equipment
20% on cost
Fixtures and fittings
10% on cost
Motor vehicles
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Following the acquisition by Thomas Holdings (North West) Limited, the majority of the assets were transferred to Thomas Holdings (North West Limited) at the written down value.

THOMAS ARMCO AND FENCING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 3 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.6
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.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, 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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

THOMAS ARMCO AND FENCING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -
1.9
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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 when the company has 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.

1.10
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.

1.11
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.

THOMAS ARMCO AND FENCING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2024
- 5 -
2
Employees

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

2024
2023
Number
Number
Total
3
30
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 November 2023
823,656
21,868,081
22,691,737
Disposals
(823,656)
-
0
(823,656)
Transfers
-
0
(19,499,413)
(19,499,413)
At 31 May 2024
-
0
2,368,668
2,368,668
Depreciation and impairment
At 1 November 2023
240,811
8,428,292
8,669,103
Depreciation charged in the Period
-
0
204,806
204,806
Eliminated in respect of disposals
(240,811)
-
0
(240,811)
Transfers
-
0
(8,315,400)
(8,315,400)
At 31 May 2024
-
0
317,698
317,698
Carrying amount
At 31 May 2024
-
0
2,050,970
2,050,970
At 31 October 2023
582,845
13,439,789
14,022,634

Following the acquisition by Thomas Holdings (North West) Limited, the majority of the assets were transferred to Thomas Holdings (North West) Limited at the written down value.

4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
-
0
1,466,618
Amounts owed by group undertakings
1,857,751
-
0
Other debtors
-
0
35,818
1,857,751
1,502,436
THOMAS ARMCO AND FENCING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2024
- 6 -
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
-
0
170,000
Trade creditors
37,298
1,972,525
Corporation tax
114
114
Other taxation and social security
783,759
29,268
Other creditors
405,230
6,956,451
1,226,401
9,128,358
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
-
0
269,167
Other creditors
1,266,531
-
0
1,266,531
269,167
7
Profit and loss reserves
2024
2023
£
£
At the beginning of the Period
4,062,463
4,552,053
Profit/(loss) for the Period
893,956
(489,590)
Dividends declared and paid in the Period
(4,000,000)
-
At the end of the Period
956,420
4,062,463
8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was qualified and the auditor reported as follows:

THOMAS ARMCO AND FENCING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2024
8
Audit report information
(Continued)
- 7 -

Qualified opinion on the financial statements for the period ended 31 May 2024

We have audited the financial statements of Thomas Armco and Fencing Ltd (the 'company') for the Period ended 31 May 2024 which comprise , the balance sheet 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

We were unable to obtain sufficient appropriate audit evidence about the opening balance sheet position as at 1 November 2023 because the entity was exempt from audit in the prior year.

 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Senior Statutory Auditor:
Helen Davies
Statutory Auditor:
Azets Audit Services
9
Related party transactions

The company has taken advantage of the exemption within FRS 102 Section 33.1A from the requirements to disclose transactions with other wholly owned companies within the same group.

 

All related party transactions are under the normal course of business

10
Parent company

Thomas Holdings (North West) Limited is regarded by the directors as being the company's ultimate parent company.

 

The ultimate controlling party is Mr W L Thomas.

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