Company registration number SC230815 (Scotland)
STRATHORE PLANT HIRE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
STRATHORE PLANT HIRE LIMITED
Contents
Page
Accountants' report
1
Statement of financial position
2 - 3
Notes to the financial statements
4 - 11
STRATHORE PLANT HIRE LIMITED
Report To The Directors On The Preparation Of The Unaudited Statutory Accounts Of Strathore Plant Hire Limited
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Strathore Plant Hire Limited for the year ended 31 May 2024 which comprise, the statement of financial position and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the ICAS we are subject to its ethical and other professional requirements which are detailed at https://icas.com/icas-framework-preparation-of-accounts
This report is made solely to the Board of Directors of Strathore Plant Hire Limited, as a body, in accordance with the terms of our engagement letter dated 28 May 2021. Our work has been undertaken solely to prepare for your approval the financial statements of Strathore Plant Hire Limited and state those matters that we have agreed to state to the Board of Directors of Strathore Plant Hire Limited, as a body, in this report in accordance with the requirements of the ICAS as detailed at https://icas.com/icas-framework-preparation-of-accounts. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Strathore Plant Hire Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Strathore Plant Hire Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Strathore Plant Hire Limited. You consider that Strathore Plant Hire Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Strathore Plant Hire Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Condie & Co Limited
10 February 2025
Chartered Accountants
10 Abbey Park Place
Dunfermline
Fife
KY12 7NZ
STRATHORE PLANT HIRE LIMITED
Statement Of Financial Position
As At 31 May 2024
- 2 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
2,868,068
2,979,000
Investment properties
6
233,549
233,549
3,101,617
3,212,549
Current assets
Stocks
34,040
34,450
Debtors
7
1,334,368
1,243,279
Cash at bank and in hand
588,679
546,517
1,957,087
1,824,246
Creditors: amounts falling due within one year
8
(1,343,994)
(1,323,629)
Net current assets
613,093
500,617
Total assets less current liabilities
3,714,710
3,713,166
Creditors: amounts falling due after more than one year
9
(799,045)
(639,856)
Provisions for liabilities
10
(854,979)
(721,028)
Net assets
2,060,686
2,352,282
Capital and reserves
Called up share capital
11
111
111
Revaluation reserve
12
253,011
592,138
Profit and loss reserves
1,807,564
1,760,033
Total equity
2,060,686
2,352,282
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
STRATHORE PLANT HIRE LIMITED
Statement Of Financial Position (Continued)
As At 31 May 2024
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 10 February 2025 and are signed on its behalf by:
Mr C T Muir
Director
Company Registration No. SC230815
STRATHORE PLANT HIRE LIMITED
Notes To The Financial Statements
For The Year Ended 31 May 2024
- 4 -
1
Accounting policies
Company information
Strathore Plant Hire Limited is a private company limited by shares incorporated in Scotland. The registered office is Strathore Business Park, Southend, Thornton, KY1 4EH.
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 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, modified to include the revaluation of certain fixed assets at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.
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:
Tenants improvements
20% per annum - straight line
Plant and machinery
10% per annum - reducing balance
Equipment
20% per annum - reducing balance
Motor vehicles
10% per annum - reducing balance
STRATHORE PLANT HIRE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 May 2024
1
Accounting policies
(Continued)
- 5 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Impairment of fixed assets
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.
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.
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.
1.7
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.
1.8
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.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
STRATHORE PLANT HIRE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 May 2024
1
Accounting policies
(Continued)
- 6 -
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.
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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.
STRATHORE PLANT HIRE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 May 2024
1
Accounting policies
(Continued)
- 7 -
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
68
59
STRATHORE PLANT HIRE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 May 2024
- 8 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2023 and 31 May 2024
46,230
Amortisation and impairment
At 1 June 2023 and 31 May 2024
46,230
Carrying amount
At 31 May 2024
At 31 May 2023
5
Tangible fixed assets
Tenants improvements
Plant and machinery
Equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 June 2023
163,097
1,063,075
17,521
1,894,485
3,138,178
Additions
334,904
4,715
756,592
1,096,211
Disposals
(162,400)
(3,179)
(32,150)
(197,729)
Revaluation
(337,579)
(667,577)
(1,005,156)
At 31 May 2024
163,097
898,000
19,057
1,951,350
3,031,504
Depreciation and impairment
At 1 June 2023
143,327
3,349
12,122
380
159,178
Depreciation charged in the year
9,054
114,273
1,736
220,372
345,435
Eliminated in respect of disposals
(12,198)
(2,803)
(2,682)
(17,683)
Revaluation
(105,424)
(218,070)
(323,494)
At 31 May 2024
152,381
11,055
163,436
Carrying amount
At 31 May 2024
10,716
898,000
8,002
1,951,350
2,868,068
At 31 May 2023
19,770
1,059,726
5,399
1,894,105
2,979,000
Tangible fixed assets with a carrying amount of £2,868,068 (2023 - £2,979,000) have been pledged to secure borrowings of the company.
Plant and machinery and motor vehicles were revalued by the directors on 31 May 2024. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar assets.
STRATHORE PLANT HIRE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 May 2024
5
Tangible fixed assets
(Continued)
- 9 -
If the revalued assets were measured using the cost model, the carrying amounts would be as follows:
2024
2023
£
£
Cost
5,278,461
4,494,015
Accumulated depreciation
(2,043,845)
(1,932,252)
Carrying value
3,234,616
2,561,763
6
Investment property
2024
£
Fair value
At 1 June 2023 and 31 May 2024
233,549
Investment property has been included in the financial statements at cost. The directors are of the opinion that the carrying amount at 31 May 2024 is a fair reflection of the market value.
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,271,708
1,231,217
Corporation tax recoverable
61,760
Other debtors
900
12,062
1,334,368
1,243,279
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
40,000
40,000
Obligations under finance leases
506,545
367,381
Trade creditors
379,239
372,679
Corporation tax
155,837
Other taxation and social security
224,935
207,070
Other creditors
35,025
16,438
Accruals and deferred income
158,250
164,224
1,343,994
1,323,629
The Royal Bank of Scotland plc hold a bond and floating charge dated 16th August 2002 and a floating charge dated 31 January 2012 over the entire assets of the company for all sums due.
STRATHORE PLANT HIRE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 May 2024
- 10 -
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
46,667
86,667
Obligations under finance leases
752,378
553,189
799,045
639,856
The Royal Bank of Scotland plc hold a bond and floating charge dated 16th August 2002 and a floating charge dated 31 January 2012 over the entire assets of the company for all sums due.
10
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
854,979
721,028
11
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
80
80
80
80
Ordinary B of £1 each
20
20
20
20
Ordinary C of £1 each
5
5
5
5
Ordinary D of £1 each
6
6
6
6
111
111
111
111
The issued "A" Ordinary shares, issued "B" Ordinary shares, issued "C" Ordinary shares and issued "D" Ordinary shares rank pari passu with each other except that the director of the company may resolve to declare a dividend on one or more classes of share.
12
Revaluation reserve
2024
2023
£
£
At the beginning of the year
592,138
703,287
Revaluation surplus arising in the year
(240,110)
52,190
Deferred tax on revaluation of tangible assets
32,900
(62,011)
Transfer to retained earnings
(131,917)
(101,328)
At the end of the year
253,011
592,138
STRATHORE PLANT HIRE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 May 2024
- 11 -
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
2,616
3,488
14
Related party transactions
The company has taken advantage of Section 1 AC35 of FRS102 whereby only material transactions which are not under normal market conditions need to be disclosed. The company has taken advantage of Section 33.1A of FRS102 whereby only transactions which are not with wholly owned members of a group need to be disclosed.
15
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mr C Muir
2.25
392
(76,345)
(624)
76,700
123
Mr J Vettrino
-
276
-
-
-
276
668
(76,345)
(624)
76,700
399
The balances due to the directors, which are included in other creditors, are repayable on demand.
16
Parent company
The parent company of Strathore Plant Hire Limited is Strathore Holdings Limited and its registered office is Strathore Business Park, Thornton, Kirkcaldy, KY1 4EH.
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