REGISTERED NUMBER: 03032242 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 May 2024 |
for |
J S Fleet Services Limited |
REGISTERED NUMBER: 03032242 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 May 2024 |
for |
J S Fleet Services Limited |
J S Fleet Services Limited (Registered number: 03032242) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 May 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 20 |
J S Fleet Services Limited |
Company Information |
for the Year Ended 31 May 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
3rd Floor Pacific Chambers |
11-13 Victoria Street |
Liverpool |
Merseyside |
L2 5QQ |
BANKERS: |
99-101 Lord Street |
Liverpool |
L2 6PG |
J S Fleet Services Limited (Registered number: 03032242) |
Group Strategic Report |
for the Year Ended 31 May 2024 |
The directors present their strategic report of the company and the group for the year ended 31 May 2024. |
REVIEW OF BUSINESS |
The Group are pleased to report another consistent performance in trading activities for the twelve months ended 31 May 2024, despite the challenges to the sector and economy in general. |
Forecasted sales were met for most of the year, exceeded in some months, showing a renewed confidence in the construction industry. The Group can confirm that turnover increased by 11% to the previous year ended 31st May 2023. |
The careful management of direct costs have enabled The Group's cost of sales to remain at the same level as the previous year, despite higher pay to retain and attract employees. |
Improvements in IT, increased energy costs, investment in staff and professional services are the only significant increases to the previous year's expenditure. However, savings elsewhere have enabled The Group to remain consistent to prior years. |
With such an impact on the construction industry our priority was to mitigate risk and to continue to focus on providing an excellent service to our customers. A cautious approach ensured limited exposure and reduced bad debt losses to less than 0.7% of turnover. |
A prudent approach was adapted during the financial year with regards to investment of new assets, adopting a policy of ensuring a strong fleet of crane livery with an average age of 7 years. The Group invested in fleet additions to the value of £5.5 million, including the purchase of a Liebherr LTM1450, providing more efficient and versatile alternatives to the disposals of £3.2 million and opening new markets to The Group. The fleet has been reviewed to maximise utilisation and efficiencies adopting a 'one in, one out' policy whilst keeping financing to an affordable level. The aim is to prevent over exposure during such uncertain times with interest rates. |
PRINCIPAL RISKS AND UNCERTAINTIES |
As the construction industry continues to recover, The Group is still faced with the uncertainties of the UK economy with lack of growth, investment and rising interest rates and inflation. The Group has also faced increasing challenges due to severe weather conditions in recent years. |
The Group mitigate any financial risks faced by the business by adopting a managed review of credit risk. Stringent policies have been implemented that require appropriate credit checks on customers before sales are made and the amount of exposure at any one time is subject to close and regular monitoring. Where necessary credit insurance or a prepayment is applied. Suppliers are also subject to approval, which includes pre-qualification and review of insurance. |
The construction industry faces significant risks in issues of health, sustainability, and safety. To alleviate potential risks as far as possible, the board places an emphasis on ensuring they are proactive in these areas and are constantly striving for continuous improvement. |
J S Fleet Services Limited (Registered number: 03032242) |
Group Strategic Report |
for the Year Ended 31 May 2024 |
KEY PERFORMANCE INDICATORS |
The performance of operations is monitored closely against budgets and forecasts and all variances investigated and reported to the board. The financial performance of the fleet is reviewed monthly by each crane to allow informed management decisions to be made, such as increasing or decreasing the fleet size. |
The following KPIs are but a few monitored regularly: |
- | Revenue per crane. |
- | Utilisation per crane and per size classification. |
- | Comparing revenue to repayments per size classification. |
- | Retained customers. |
- | Sales performance trend |
- | Gross profit margin |
- | Health and safety record |
HEALTH, SAFETY & QUALITY |
The group remains strictly committed to health, safety, and quality responsibilities, showing a proven record which far exceeds its legal requirements. The programme involves extensive training and audit of systems, together with independent testing of equipment and internal processes. In order to record and encourage achievement in this vital area, the board has supported significant improvements to health and safety practices and procedures, reviewing, re-writing and updating many policies and procedures on an annual basis to make sure they are fit for purpose. |
The directors are proud to confirm their commitment to SHEQ throughout the group and endorse this through achievement and maintenance of universally recognised accreditations. In this regard, the company holds ISO 9001:2015 (Quality) and ISO45001:2018 (Health & Safety) which recognises the dedication shown by all members of the organisation to these areas. |
ENVIRONMENT |
The board respects the fact that they have a social responsibility to the environment and strives to minimise the impact its activities have on this by improving their procedures and responding to change. The groups IMS manual has been accredited by Alcumus ISOQAR who awarded ISO14001:2015 (Environmental) certification in the latest audit. |
The directors are committed to maintaining a modern fleet of vehicles predominantly EURO 5 and 6 vehicles which are developed using advanced engineering techniques aimed at reducing CO2 emissions and prioritise assessments of the areas in which other measures could be adopted to support the group's commitment to dealing with environmental issues. |
EMPLOYEES & TRAINING |
The group is committed to its employees and values them highly. The directors operate an 'open door policy' and all members of staff are encouraged to take an active interest in the business and their suggestions are welcomed. Regular meetings and communication encourage employee opinions and individual training plans are devised by means of two-way communication. The group encourages promotion from within where possible and rewards progression and commitment. |
The culture of communication and drive to succeed is further acknowledged by retaining a Gold Level Standard for Investors in People. |
The group adopts employment policies which follow best practice for all, regardless of sex, race, colour, disability, or marital status and offers appropriate training and development for disabled staff. |
J S Fleet Services Limited (Registered number: 03032242) |
Group Strategic Report |
for the Year Ended 31 May 2024 |
CORPORATE SOCIAL RESPONSIBILITY |
The Group is immensely proud to be a part of the local community and are conscious of their standing in the greater Northwest Area, from which they generate a lot of business and recruit most of their employees. They provide support and involvement in local community issues especially in the localities of each depot. |
The Group was also the first crane company to actively support Christies Cancer Research by branding the new 200T Grove with the charities livery and donating a percentage of all hire to Christies. The hope is to run a similar scheme for a local Liverpool charity. |
ON BEHALF OF THE BOARD: |
J S Fleet Services Limited (Registered number: 03032242) |
Report of the Directors |
for the Year Ended 31 May 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group, which consists of the company and one trading subsidiary, John Sutch Cranes Limited, continued to be that of mobile crane hire and contract lifting services within the construction, engineering and commercial sectors. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 May 2024 will be £465,000 (2023 - £441,666). |
Group ordinary dividends were paid amounting to £603,076 (2023 - £654,480). The directors do not recommend payment of a further dividend. |
RESEARCH AND DEVELOPMENT |
Research and development is a key focus of the group. The results are demonstrated by the reputation of the group in supplying a reliable service at a competitive price. |
FUTURE DEVELOPMENTS |
Future developments continue to be the investment in production facilities and an expansion of the product range available. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
J S Fleet Services Limited (Registered number: 03032242) |
Report of the Directors |
for the Year Ended 31 May 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Haines Watts, will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
J S Fleet Services Limited |
Opinion |
We have audited the financial statements of J S Fleet Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
J S Fleet Services Limited |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept 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 Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- | Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; |
- | Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
- | Reviewing financial statements disclosures and testing to supporting documentation to assess compliance with applicable law and regulations; |
- | Challenging assumptions and judgements made by management in its significant accounting estimates; |
- | Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. |
Our audit did not identify any significant matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
J S Fleet Services Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
3rd Floor Pacific Chambers |
11-13 Victoria Street |
Liverpool |
Merseyside |
L2 5QQ |
J S Fleet Services Limited (Registered number: 03032242) |
Consolidated Income Statement |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
TURNOVER | 4 | 11,247,408 | 10,081,465 |
Cost of sales | 6,294,398 | 5,819,451 |
GROSS PROFIT | 4,953,010 | 4,262,014 |
Administrative expenses | 3,844,584 | 3,002,041 |
1,108,426 | 1,259,973 |
Other operating income | 2,950 | 14,879 |
OPERATING PROFIT | 7 | 1,111,376 | 1,274,852 |
Interest receivable and similar income | 10,185 | 2,361 |
1,121,561 | 1,277,213 |
Interest payable and similar expenses | 9 | 354,881 | 317,440 |
PROFIT BEFORE TAXATION | 766,680 | 959,773 |
Tax on profit | 10 | 472,711 | 46,421 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 231,564 | 853,153 |
Non-controlling interests | 62,405 | 60,199 |
293,969 | 913,352 |
J S Fleet Services Limited (Registered number: 03032242) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 293,969 | 913,352 |
OTHER COMPREHENSIVE INCOME |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
293,969 |
913,352 |
Total comprehensive income attributable to: |
Owners of the parent | 231,564 | 853,153 |
Non-controlling interests | 62,405 | 60,199 |
293,969 | 913,352 |
J S Fleet Services Limited (Registered number: 03032242) |
Consolidated Balance Sheet |
31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | - | - |
Tangible assets | 14 | 16,679,146 | 14,481,758 |
Investments | 15 | - | - |
Investment property | 16 | - | - |
16,679,146 | 14,481,758 |
CURRENT ASSETS |
Stocks | 17 | 19,364 | - |
Debtors | 18 | 2,202,878 | 2,156,404 |
Cash at bank | 28,019 | 484,832 |
2,250,261 | 2,641,236 |
CREDITORS |
Amounts falling due within one year | 19 | 3,431,819 | 3,586,560 |
NET CURRENT LIABILITIES | (1,181,558 | ) | (945,324 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
15,497,588 |
13,536,434 |
CREDITORS |
Amounts falling due after more than one year |
20 |
(7,804,542 |
) |
(5,869,983 |
) |
PROVISIONS FOR LIABILITIES | 23 | (2,215,049 | ) | (1,776,778 | ) |
NET ASSETS | 5,477,997 | 5,889,673 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 1,000 | 1,000 |
Revaluation reserve | 25 | 687,591 | 687,591 |
Capital redemption reserve | 25 | 38 | 38 |
Retained earnings | 25 | 4,719,368 | 5,131,044 |
SHAREHOLDERS' FUNDS | 5,407,997 | 5,819,673 |
NON-CONTROLLING INTERESTS | 26 | 70,000 | 70,000 |
TOTAL EQUITY | 5,477,997 | 5,889,673 |
The financial statements were approved by the Board of Directors and authorised for issue on 5 February 2025 and were signed on its behalf by: |
J Sutch - Director |
J S Fleet Services Limited (Registered number: 03032242) |
Company Balance Sheet |
31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
Investment property | 16 |
CURRENT ASSETS |
Debtors | 18 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 19 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
20 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 23 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Revaluation reserve | 25 |
Retained earnings | 25 |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year |
(3,057 |
) |
657,024 |
J S Fleet Services Limited (Registered number: 03032242) |
Company Balance Sheet - continued |
31 May 2024 |
The financial statements were approved by the Board of Directors and authorised for issue on |
J S Fleet Services Limited (Registered number: 03032242) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 May 2024 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 June 2022 | 1,000 | 4,872,172 | 687,591 |
Changes in equity |
Dividends | - | (441,666 | ) | - |
Total comprehensive income | - | 853,153 | - |
Transfer | - | (152,615 | ) | - |
Balance at 31 May 2023 | 1,000 | 5,131,044 | 687,591 |
Changes in equity |
Dividends | - | (465,000 | ) | - |
Total comprehensive income | - | 231,564 | - |
Transfer | - | (178,240 | ) | - |
Balance at 31 May 2024 | 1,000 | 4,719,368 | 687,591 |
Capital |
redemption | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 June 2022 | 38 | 5,560,801 | 70,000 | 5,630,801 |
Changes in equity |
Dividends | - | (441,666 | ) | (212,814 | ) | (654,480 | ) |
Total comprehensive income | - | 853,153 | 60,199 | 913,352 |
Transfer | - | (152,615 | ) | 152,615 | - |
Balance at 31 May 2023 | 38 | 5,819,673 | 70,000 | 5,889,673 |
Changes in equity |
Dividends | - | (465,000 | ) | (240,645 | ) | (705,645 | ) |
Total comprehensive income | - | 231,564 | 62,405 | 293,969 |
Transfer | - | (178,240 | ) | 178,240 | - |
Balance at 31 May 2024 | 38 | 5,407,997 | 70,000 | 5,477,997 |
J S Fleet Services Limited (Registered number: 03032242) |
Company Statement of Changes in Equity |
for the Year Ended 31 May 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 June 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 May 2024 |
J S Fleet Services Limited (Registered number: 03032242) |
Consolidated Cash Flow Statement |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,730,959 | 2,709,329 |
Interest paid | (8,879 | ) | (8,208 | ) |
Interest element of finance lease payments paid |
(346,002 |
) |
(309,232 |
) |
Taxation refund | - | 151,154 |
Net cash from operating activities | 2,376,078 | 2,543,043 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (237,384 | ) | (123,763 | ) |
Sale of tangible fixed assets | 33,154 | - |
Interest received | 10,185 | 2,361 |
Net cash from investing activities | (194,045 | ) | (121,402 | ) |
Cash flows from financing activities |
Capital repayments in year | (2,053,208 | ) | (1,436,760 | ) |
Equity dividends paid | (465,000 | ) | (441,666 | ) |
Dividends paid to minority interests | (260,465 | ) | (212,814 | ) |
Net cash from financing activities | (2,778,673 | ) | (2,091,240 | ) |
(Decrease)/increase in cash and cash equivalents | (596,640 | ) | 330,401 |
Cash and cash equivalents at beginning of year |
2 |
265,705 |
(64,696 |
) |
Cash and cash equivalents at end of year | 2 | (330,935 | ) | 265,705 |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 May 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.5.24 | 31.5.23 |
£ | £ |
Profit before taxation | 766,680 | 959,773 |
Depreciation charges | 1,807,500 | 1,629,137 |
Loss/(profit) on disposal of fixed assets | 208,489 | (213,082 | ) |
P&M General Provision | (25,000 | ) | 100,000 |
Finance costs | 354,881 | 317,440 |
Finance income | (10,185 | ) | (2,361 | ) |
3,102,365 | 2,790,907 |
Increase in stocks | (19,364 | ) | - |
Increase in trade and other debtors | (55,914 | ) | (180,695 | ) |
(Decrease)/increase in trade and other creditors | (296,128 | ) | 99,117 |
Cash generated from operations | 2,730,959 | 2,709,329 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2024 |
31.5.24 | 1.6.23 |
£ | £ |
Cash and cash equivalents | 28,019 | 484,832 |
Bank overdrafts | (358,954 | ) | (219,127 | ) |
(330,935 | ) | 265,705 |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 484,832 | 245,486 |
Bank overdrafts | (219,127 | ) | (310,182 | ) |
265,705 | (64,696 | ) |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 May 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.6.23 | Cash flow | At 31.5.24 |
£ | £ | £ |
Net cash |
Cash at bank | 484,832 | (456,813 | ) | 28,019 |
Bank overdrafts | (219,127 | ) | (139,827 | ) | (358,954 | ) |
265,705 | (596,640 | ) | (330,935 | ) |
Debt |
Finance leases | (8,216,549 | ) | (1,877,538 | ) | (10,094,087 | ) |
Debts falling due within 1 year | (128,156 | ) | 40,623 | (87,533 | ) |
(8,344,705 | ) | (1,836,915 | ) | (10,181,620 | ) |
Total | (8,079,000 | ) | (2,433,555 | ) | (10,512,555 | ) |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 May 2024 |
1. | STATUTORY INFORMATION |
J S Fleet Services Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The company is a qualifying entity for the purpose 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 4 'statement of Financial Position': Reconciliation of the opening and closing number of shares; |
- | 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': Carrying amounts, interest income.expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan default 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. |
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 £. |
Basis of consolidation |
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 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. |
The consolidated financial statements incorporate those of J S Fleet Services Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits) using the purchase method of accounting. |
All financial statements are made up to 31 May 2024. |
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. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Goodwill |
Goodwill, being the amounts paid in connection with the acquisition of the holding company and subsidiary companies business in 2013, was being amortised evenly over its estimated useful life of ten and five years respectively. |
At the year end all goodwill had been fully amortised. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Tangible fixed assets are initially measured at costs and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Items of crane equipment purchased at a cost of more than £1,000 each are capitalised and depreciated, otherwise their costs are immediately written off as revenue expenditure. |
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. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Land and buildings Freehold | Land is not depreciated. Freehold property is depreciated over its expected useful life |
Plant and machinery | 10% reducing balance or 25% on cost |
Motor vehicles | 25% reducing balance |
Fixtures and fittings | 10% reducing balance or 25% on cost |
Computer equipment | 25% on cost |
In the companys individual balance sheet it has adopted the fair value model in respect of its land and building freehold assets. As such the company's investment property is measured in the accounts at its fair value at the reporting date. Any surplus or deficit arising on revaluation is recognised in the profit and loss account. |
In the group accounts the investment property is reclassified as freehold property because it is used by a subsidiary of the group, and has been included within tangible fixed assets at its revalued amount. Any surplus or deficit arising on revaluation is recognised in the revaluation reserve. Depreciation has been deemed immaterial due to the long useful life of the property. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
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 future cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
Derecognition of financial assets |
Financial instruments are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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. |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, to the extent that they will reverse in the foreseeable future. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing differences, having regard to capital expenditure plans for the foreseeable future. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Leases are classified as finance leases whenever the terms of the leases transfer substantially all of 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 consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
The Group recognises a right-of-use asset and a loan liability in respect of sale-and-leaseback transactions for assets where the company has an option to repurchase at the end of the contract term. |
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term o the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed. |
Employee benefits |
The cost 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. |
Group relief |
The financial statements have been prepared on the assumption that group relief will be used to facilitate the transfer of corporation tax losses between companies in the group. No compensation is made in respect of any loss relief between companies. |
Going concern |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
3. | 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. |
Useful economic lives of tangible assets |
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are assessed on initial acquisition and reassessed periodically to ensure they remain appropriate. They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
Impairment of debtors |
The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors management considers factors such as current credit rating, the ageing profile of debtors and historical experience. The carrying amount of trade and other debtors are set out in note 17. |
4. | TURNOVER |
An analysis of the group's turnover is as follows: |
31.5.24 | 31.5.23 |
£ | £ |
Turnover |
Crane hire and lifting services | 11,247,408 | 10,081,465 |
11,247,408 | 10,081,465 |
The total turnover of the group for the year has been derived from its principal activity wholly undertaken in the United Kingdom. |
5. | EMPLOYEES AND DIRECTORS |
There were no staff costs for the year ended 31 May 2024 nor for the year ended 31 May 2023. |
The average number of employees during the year was as follows: |
31.5.24 | 31.5.23 |
Directors | 4 | 4 |
Management | 5 | 5 |
Admin / office | 12 | 11 |
Crane drivers / personnel | 70 | 58 |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
Their aggregate remuneration comprised: |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Wages and salaries | 4,247,269 | 3,586,076 | - | - |
Social security costs | 472,445 | 423,563 | - | - |
Pension costs | 96,895 | 80,419 | - | - |
4,816,609 | 4,090,058 | - | - |
6. | DIRECTORS' REMUNERATION |
Directors' remuneration |
31.5.24 | 31.5.23 |
£ | £ |
Remuneration for qualifying services | 74,747 | 74,784 |
The number of directors to whom retirement benefits were accruing was as follows: |
Defined contribution scheme | 2 | 2 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.5.23 | 31.5.22 |
£ | £ |
Exchange (gains)/losses | (158 | ) | (1,068 | ) |
Other income relating to government grants | - | 18,909 |
Other income relating to insurance claims | 14,879 | - |
Depreciation of owned tangible fixed assets | 376,223 | 55,550 |
Depreciation of tangible fixed assets held under finance leases | 1,194,644 | 1,207,586 |
Profit on disposal of tangible fixed assets | (213,082 | ) | 152,752 |
Operating lease charges | 79,371 | 78,420 |
8. | AUDITORS' REMUNERATION |
Fees payable to the company's auditor and associates: |
31.5.24 | 31.5.23 |
£ | £ |
Audit of the financial statements of the group and company | 7,000 | 7,000 |
Audit of the financial statements of the company's subsidiaries | 5,500 | 5,500 |
Total audit service fees | 12,500 | 12,500 |
Other accountancy and taxation service fees | 5,000 | 5,000 |
17,500 | 17,500 |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.5.24 | 31.5.23 |
£ | £ |
Bank loan interest | 8,879 | 8,208 |
Hire purchase | 346,002 | 309,232 |
354,881 | 317,440 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.5.24 | 31.5.23 |
£ | £ |
Current tax: |
UK corporation tax | - | 119,247 |
Deferred tax | 472,711 | (72,826 | ) |
Tax on profit | 472,711 | 46,421 |
UK corporation tax has been charged at 25 % (2023 - 19 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.5.24 | 31.5.23 |
£ | £ |
Profit before tax | 766,680 | 959,773 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 20 %) |
191,670 |
191,955 |
Effects of: |
Expenses not deductible for tax purposes | 2,609 | 21,048 |
Capital allowances in excess of depreciation | (467,384 | ) | (268,920 | ) |
Adjustments to tax charge in respect of previous periods | - | 119,247 |
(Profit) / Loss on disposal of tangible fixed assets | 52,122 | (42,616 | ) |
Losses carried forward | 693,694 | 25,707 |
Total tax charge | 472,711 | 46,421 |
Tax effects relating to effects of other comprehensive income |
31.5.23 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
12. | DIVIDENDS |
The total distribution of dividends for the year ended 31 May 2024 will be £465,000 (2023 - £441,666). |
Group ordinary dividends were paid amounting to £603,076 (2023 - £654,480). The directors do not recommend payment of a further dividend. |
13. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 June 2023 |
and 31 May 2024 | 1,600,000 |
AMORTISATION |
At 1 June 2023 |
and 31 May 2024 | 1,600,000 |
NET BOOK VALUE |
At 31 May 2024 | - |
At 31 May 2023 | - |
Company |
Goodwill |
£ |
COST |
At 1 June 2023 |
and 31 May 2024 |
AMORTISATION |
At 1 June 2023 |
and 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
14. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 June 2023 | 1,600,000 | 19,482,180 | 113,008 |
Additions | - | 5,271,569 | 4,850 |
Disposals | - | (3,055,293 | ) | - |
At 31 May 2024 | 1,600,000 | 21,698,456 | 117,858 |
DEPRECIATION |
At 1 June 2023 | - | 6,802,212 | 70,212 |
Charge for year | - | 1,588,429 | 10,363 |
Eliminated on disposal | - | (1,462,381 | ) | - |
At 31 May 2024 | - | 6,928,260 | 80,575 |
NET BOOK VALUE |
At 31 May 2024 | 1,600,000 | 14,770,196 | 37,283 |
At 31 May 2023 | 1,600,000 | 12,679,968 | 42,796 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 June 2023 | 587,072 | 224,257 | 22,006,517 |
Additions | 322,435 | - | 5,598,854 |
Disposals | (121,249 | ) | - | (3,176,542 | ) |
At 31 May 2024 | 788,258 | 224,257 | 24,428,829 |
DEPRECIATION |
At 1 June 2023 | 482,558 | 169,777 | 7,524,759 |
Charge for year | 189,689 | 19,519 | 1,808,000 |
Eliminated on disposal | (120,695 | ) | - | (1,583,076 | ) |
At 31 May 2024 | 551,552 | 189,296 | 7,749,683 |
NET BOOK VALUE |
At 31 May 2024 | 236,706 | 34,961 | 16,679,146 |
At 31 May 2023 | 104,514 | 54,480 | 14,481,758 |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
14. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
At each reporting period end date, the company 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. |
Fixed assets, included in the above, which are held under finance lease agreements are as follows: |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Plant and machinery | 11,056,063 | 10,939,772 | 11,056,063 | 10,939,772 |
Motor vehicles | 128,017 | 169,452 | - | - |
11,184,080 | 11,109,224 | 11,056,063 | 10,939,772 |
Depreciation charge for the year | 1,180,625 | 1,235,405 | 1,100,665 | 1,140,954 |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
15. | FIXED ASSET INVESTMENTS |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Investments in subsidiaries | - | - | 1,000 | 1,000 |
Details of the company's subsidiaries at 31 May 2024 are as follows: |
Name of undertaking | Registered office | Nature of business |
Class of shares held |
% Held Direct/Indirect |
John Sutch Cranes Limited | 1. | Crane hire | Ordinary | 78.99 |
1. Bridle Park, Bridle Road, Bootle, Merseyside, L30 4UG. |
The aggregate capital and reserves and the profit for the year of the subsidiaries noted above was as follows: |
Name of undertaking |
Profit/(Loss |
) |
Capital and Reserves |
£ | £ |
John Sutch Cranes Limited | 297,026 | 993,228 |
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. |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
16. | INVESTMENT PROPERTY - continued |
Investment Property |
Group | Company |
31.5.24 | 31.5.24 |
£ | £ |
Fair value |
At 1 June 2023 | - | 1,600,000 |
Revaluation in the year | - | - |
At 31 May 2024 | 1,600,000 | 1,600,000 |
The freehold investment property is rented to John Sutch Cranes Limited during the year and has therefore been reclassified to freehold property within tangible fixed assets in the group balance sheet. |
The groups land and buildings were revalued at £1,600,000 on 7 January 2022 by Bruton Knowles LLP Chartered Surveyors, who are not connected with the company. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors are of the opinion that there has been no change in the valuation as at 31 May 2024. |
If the revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been £853,197 (2023 - £853,197). |
Fair value at 31 May 2024 is represented by: |
£ |
Valuation in 2021 | 371,676 |
Valuation in 2022 | 375,127 |
Cost | 853,197 |
1,600,000 |
17. | STOCKS |
Group |
31.5.24 | 31.5.23 |
£ | £ |
Stocks | 19,364 | - |
18. | DEBTORS |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 1,856,109 | 1,819,015 |
Other debtors | 99,186 | 102,636 |
Deferred tax asset | - | 9,440 | - | - |
Prepayments and accrued income | 247,583 | 225,313 |
2,202,878 | 2,156,404 |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
18. | DEBTORS - continued |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 2,202,878 | 2,156,404 |
19. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 21) | 446,487 | 347,283 |
Finance leases (see note 22) | 2,289,545 | 2,346,566 |
Trade creditors | 449,642 | 533,551 |
Social security and other taxes | 114,898 | 92,526 |
VAT | 18,547 | 155,355 | 503,655 | 113,455 |
Other creditors | 44,867 | 46,177 |
Accruals and deferred income | 67,833 | 65,102 |
3,431,819 | 3,586,560 |
There is an unlimited cross guarantee between the company and its subsidiary John Sutch Cranes Limited in respect of the amounts owed by either company to its bankers. |
20. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Finance leases (see note 22) | 7,804,542 | 5,869,983 |
The bank loans and overdrafts are secured by way of fixed charge over Bridle Park freehold property and leasehold land dated 07 April 2022 and floating charges over all assets of the company dated 25 March 2022. |
The HP agreements are secured by way of fixed charge over four cranes dated 28 February 2018. |
There is an unlimited cross guarantee between the company and its subsidiary John Sutch Cranes Limited in respect of the amounts owed by either company to its bankers. |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
21. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 358,954 | 219,127 |
Bank loans | 87,533 | 128,156 |
446,487 | 347,283 |
22. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Future minimum lease payments due under finance leases: |
Within one year | 2,289,825 | 2,346,556 | 2,235,825 | 2,257,925 |
Between one to five years | 6,613,897 | 5,671,199 | 6,582,332 | 5,584,861 |
Over five years | 1,190,555 | 198,784 | 1,190,555 | 198,784 |
10,094,277 | 8,216,549 | 10,008,712 | 8,041,570 |
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 6 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. |
23. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Deferred tax | 2,140,049 | 1,676,778 | 2,094,193 | 1,676,778 |
Other provisions | 75,000 | 100,000 | 75,000 | 100,000 |
Aggregate amounts | 2,215,049 | 1,776,778 | 2,169,193 | 1,776,778 |
Group |
Deferred tax |
£ |
Balance at 1 June 2023 | 1,676,778 |
Provided during year | 463,271 |
Balance at 31 May 2024 | 2,140,049 |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
23. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred tax |
£ |
Balance at 1 June 2023 |
Provided during year |
Balance at 31 May 2024 |
Plant and Machinery |
Maintenance Provision |
£ |
Balance at 1 June 2023 | (100,000 | ) |
Provided during year | 25,000 |
Balance at 31 May 2024 | (75,000 | ) |
The company recognises a provision for the restoration of Plant and Machinery that is held on the balance | sheet arising from use of the assets by unrelated third parties. The provision is the best estimate of the expenditure that would be required for restoration, taking into consideration time value. |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.5.24 | 31.5.23 |
value: | £ | £ |
Ordinary | 1 | 1,000 | 1,000 |
Called up share capital represents the nominal value of shares that have been issued. The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company. |
25. | RESERVES |
Group |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 June 2023 | 5,131,044 | 687,591 | 38 | 5,818,673 |
Profit for the year | 231,564 | - | - | 231,564 |
Dividends | (465,000 | ) | - | - | (465,000 | ) |
Transfer | (178,240 | ) | - | - | (178,240 | ) |
At 31 May 2024 | 4,719,368 | 687,591 | 38 | 5,406,997 |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
25. | RESERVES - continued |
Company |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 June 2023 | 4,952,826 |
Deficit for the year | ( |
) | ( |
) |
Dividends | ( |
) | ( |
) |
At 31 May 2024 | 4,484,769 |
Revaluation reserve |
The cumulative revaluation gains and losses in respect of land and buildings for the group (company: investment property). The group property is recognised as investment property in the individual company balance sheet and its fair value gains are recognised firstly via the profit and loss account and then transferred to a non-distributable reserve named 'Revaluation reserve'. |
Capital redemption reserve |
The nominal value of shares repurchased and still held at the end of the reporting period. |
Retained earnings |
Cumulative profit and loss net of distributions to owners. |
Transfers between retained earnings and non- controlling interest relate to the compulsory transfer (note 25). |
26. | NON-CONTROLLING INTERESTS |
According to the Articles of Association of John Sutch Cranes Limited, dated 30 August 2018, on leaving the company, a shareholder must offer any shareholding in the company under a compulsory transfer for £10,000. |
As such, the non-controlling interest at the year end per the group accounts has been limited to £10,000 per non-controlling shareholder. |
27. | PENSION COMMITMENTS |
31.5.24 | 31.5.23 |
Defined contribution scheme | £ | £ |
Charge to profit or loss in respect of defined contribution schemes | 96,859 | 80,419 |
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. Contributions of £35,151 (2023: £14,450) were payable at the year end and are included in Creditors: Amounts falling due within one year. |
28. | ULTIMATE PARENT COMPANY |
J Sutch Holdings Limited is regarded by the directors as being the company's ultimate parent company. |
After the year end, J Sutch Holdings Limited became the new parent company of the group. It was incorporated on 19 March 2024. |
J S Fleet Services Limited (Registered number: 03032242) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
29. | OPERATING LEASE COMMITMENTS |
Lessee |
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 |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Within one year | 71,428 | 93,028 | 27,934 | 27,934 |
Between two and five years | 64,512 | 277,853 | 86,132 | 86,132 |
Over five years | - | - | - | - |
135,940 | 370,881 | 114,066 | 114,066 |
30. | RELATED PARTY DISCLOSURES |
Transactions with related parties |
31.5.24 | 31.5.23 |
£ | £ |
Company |
Sales and rents receivable to John Sutch Cranes Limited | 2,260,000 | 2,076,000 |
At the balance sheet date the company was owed £1,154,893 (2023 - £674,211) from John Sutch Cranes Limited. |
There is an unlimited cross guarantee between the company and its subsidiary John Sutch Cranes Limited in respect of the amounts owed by either company to its bankers. |
The directors have also provided a personal guarantee limited up to £250,000 to the company's bankers. |
31. | POST BALANCE SHEET EVENTS |
After the year end, a group reconstruction was effected and the £1.6m investment property within the parent company was demerged to a new holding company, J Sutch Holdings Limited. via a £1.6m dividend in specie. |
32. | ULTIMATE CONTROLLING PARTY |
The controlling party is Mr J & Mrs E Sutch. |