REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
For The Year Ended 29 February 2024 |
for |
Fiveways Municipal Vehicle Hire Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
For The Year Ended 29 February 2024 |
for |
Fiveways Municipal Vehicle Hire Limited |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Contents of the Financial Statements |
For The Year Ended 29 February 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 8 |
Statement of Financial Position | 9 |
Statement of Changes in Equity | 10 |
Statement of Cash Flows | 11 |
Notes to the Statement of Cash Flows | 12 |
Notes to the Financial Statements | 13 |
Fiveways Municipal Vehicle Hire Limited |
Company Information |
For The Year Ended 29 February 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Registered Auditor |
Swift House |
Ground Floor |
18 Hoffmanns Way |
Chelmsford |
Essex |
CM1 1GU |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Strategic Report |
For The Year Ended 29 February 2024 |
The directors present their strategic report for the year ended 29 February 2024. |
REVIEW OF BUSINESS |
The company increased turnover from £11.0m to £11.7m during the financial year. Net profit before tax reduced slightly from £2.2m to to just over £2.0m. |
The financial KPI's used to monitor the company by the board are as follows: |
29th February 2024 | 28th February 2023 |
EBITDA* | £6.1m | £5.1m |
Administrative expenses as percentage of turnover |
22.41% |
24.35% |
Trade debtor days | 67 | 81 |
Trade creditor days | 31 | 84 |
Cash at bank | £5.5m | £3.3m |
* EBITDA (earnings before interest, tax, depreciation and amortisation ) represents earnings before HP and finance lease interest on the funding of rental fleet and after depreciation cost of rental fleet assets. This measure recognises that the finance and deprecation costs on these operational assets are a direct cost of the service being provided which needs to be deducted from the reported profit measure. |
EBITDA increased by 20% from £5.1m to £6.1m, reflecting the underlying strength of the business and cost control measures. |
Average debtor days reduced from 81 to 67 while average creditor days reduced from 84 to 31. Cash and liquid reserves improved from £3.3m to £5.5m. |
The company continues to invest in its truck fleet purchasing £4.9m of new trucks during the financial year. The Board continues to ensure its fleet stays compliant with Government policy and statutory regulations in relation to emissions. The expected increase in the demand for electric vehicles and potentially hydrogen vehicles in the future will benefit the company. While the purchase cost is considerably higher, the charges for the hire of these vehicles should significantly increase revenues. |
The company's liquid reserves and cash flow forecasts show that the company is able to to meet all its foreseeable commitments and continue to grow. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company benefits from a proportion of its revenue being generated under multi-year contracts, giving a high degree of predictability to financial forecasts. Despite having considerable liquidity, the business undertakes active management of working capital and robust cash forecasting models to avoid large working capital swings. |
The company has strong supplier relationships ensuring it has sufficient build slots with key manufacturers and obtaining discounts where available. However the markets in which the company operates are competitive, and the risk remains that market share could be lost unless both price and service remain in line with, or better than, that offered by competitors. |
The risk of revenue being delayed due to supply chain delays on new vehicles is mitigated by the fact customers typically retain their existing vehicles until their new ones arrive. The company manages any supplier cost increases by passing this onto customers wherever possible, including any significant change in interest rates between order and delivery.The company try's to mitigate potential energy price rises by securing fixed rate electricity and gas supply. |
. |
The company protects itself from interest rate fluctuations by securing all of its fleet funding on fixed interest rates. |
The company's customer base has a low bad debt risk, consisting largely of municipal customers and large established commercial waste management businesses. |
The company does not have any foreign exchange rate currency risk as all sales and nearly all purchases are priced and paid for in GBP. |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Strategic Report |
For The Year Ended 29 February 2024 |
FUTURE DEVELOPMENTS |
The company offers contract hire on electric versions of the majority of specialist fleet within its core markets. The interest in, and uptake of, electric vehicles is rapidly increasing, and municipal customers in particular are keen to lower their environmental impact. As the cost of electric vehicles, and in the future potentially hydrogen vehicles, is considerably higher than their diesel equivalents, this bodes well for the company, as profit margin percentage should be largely the same, but on a higher contract value. |
The company recognises that the in-house provision of much of its vehicle maintenance, via the company's workshops and mobile technicians, is a key factor in customers choosing to work with the business. As such, the company will continue to invest in its workshops and mobile technicians where this makes clear financial and geographical sense. |
ENVIRONMENTAL MATTERS |
The company is committed to being an environmentally responsible business and aims to manage and reduce its impact on the environment. |
EMPLOYEES |
The company's employees are important to the success of the business, and creating a safe environment in which employees are engaged is of key importance. The company continually seeks to improve on its offering to employees in terms of the work environment, training & career development, employee communication and recognition & reward. |
CUSTOMER AND SUPPLIERS |
Customers |
The company's success relies on its strong customer relationships and on retaining existing customers as well as winning new ones. Employees at all levels are responsible for ensuring the business provides exceptional levels of customer service, and both the directors and customer account managers within the business seek customer feedback on an ongoing basis throughout the lifecycle of the company's services. |
Suppliers |
As an asset-heavy business where the provision of specialist vehicles, parts and maintenance is fundamental to the success of the business and its customers, the company recognises the critical role played by its suppliers. The company seeks to work closely with its suppliers and engage with them on key issues affecting trade with the company, The company seeks to communicate actively with its suppliers, to treat them fairly and to continually seek improvements in the way the company trades and interacts with them. |
GOVERNMENT AND REGULATORS |
The company recognises, and takes very seriously, its legal, regulatory and ethical responsibilities. The specialist vehicles provided and maintained by the company, have specific legal and regulatory requirements in terms of maintenance, testing and record keeping. The company has a strong understanding of these, and customers recognise the expertise of the company in this area as being a key reason they choose to do business with the company. |
As well as the industry-specific legal and regulatory requirements, the company also has responsibilities in terms of financial governance and reporting requirements, tax legislation, health and safety legislation, environmental regulation and employment law. |
The company seeks to fulfil all legal and regulatory requirements, and where possible to be a best in class company, setting its benchmarks above and beyond the base legal and regulatory requirements wherever possible. |
ON BEHALF OF THE BOARD: |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Report of the Directors |
For The Year Ended 29 February 2024 |
The directors present their report with the financial statements of the company for the year ended 29 February 2024. |
DIVIDENDS |
An interim dividend of £1.6321 per share was paid on 29 February 2024. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 29 February is £816,042 (2023: £479,916). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Affinia (Chelmsford), will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Fiveways Municipal Vehicle Hire Limited |
Opinion |
We have audited the financial statements of Fiveways Municipal Vehicle Hire Limited (the 'company') for the year ended 29 February 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 company's affairs as at 29 February 2024 and of its 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 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 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 company's ability to continue as a going |
concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the |
relevant sections of this report. |
Other information |
The other information comprises the information included in the annual report other than the financial statements |
and our auditor's report thereon. The directors are responsible for the other information contained within the annual |
report. Our opinion on the financial statements does not cover the other information and, except to the extent |
otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
Our responsibility is to read the other information and, in doing so, consider whether the other information is |
materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or |
otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material |
misstatements, we are required to determine whether this gives rise to a material misstatement in the financial |
statements themselves. If, based on the work we have performed, we conclude that there is a material |
misstatement of this other information, we are required to report that fact. |
We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of our audit: |
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Fiveways Municipal Vehicle Hire Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the |
audit, we have not identified material misstatements in the directors' report. |
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires |
us to report to you if, in our opinion: |
· adequate accounting records have not been kept, or returns adequate for our audit have not been received |
from branches not visited by us; or |
· the 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; or |
· the directors were not entitled to prepare the financial statements in accordance with the small companies |
regime and take advantage of the small companies' exemption in preparing the directors' report and from the |
requirement to prepare a strategic report. |
Responsibilities of directors |
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation |
of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as |
the directors determine is necessary to enable the preparation of financial statements that are free from material |
misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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 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 an auditor's report that includes our opinion. |
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance |
with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or |
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence |
the economic decisions of users taken on the basis of these financial statements. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in |
line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including |
fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, |
including fraud and non-compliance with laws and regulations, was as follows: |
· The engagement partner ensured that the engagement team collectively had the appropriate competence, |
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
· We identified the laws and regulations applicable to the company through discussions with directors and |
other management, and from our commercial knowledge and experience of the municipal vehicle hire |
sector; |
· We focused on specific laws and regulations which we considered may have a direct material effect on the |
financial statements or the operations of the company, including the Companies Act 2006, taxation |
legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; |
· We assessed the extent of compliance with the laws and regulations identified above through making |
enquiries of management and inspecting legal correspondence; and |
· Identified laws and regulations were communicated within the audit team regularly and the team remained |
alert to instances of non-compliance throughout the audit. |
Report of the Independent Auditors to the Members of |
Fiveways Municipal Vehicle Hire Limited |
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
· Making enquiries of management as to where they considered there was susceptibility to fraud, their |
knowledge of actual, suspected and alleged fraud; and |
· Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and |
regulations. |
To address the risk of fraud through management bias and override of controls, we: |
· Performed analytical procedures to identify any unusual or unexpected relationships; |
· Tested journal entries to identify unusual transactions; |
· Reviewed the internal controls in place, specifically around payroll and bank transactions; and |
· Assessed whether judgements and assumptions made in determining the accounting estimates around |
stock provisions were indicative of potential bias. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
· Agreeing financial statement disclosures to underlying supporting documentation; |
· Enquiring of management as to actual and potential litigation and claims; and |
· Reviewing correspondence with HMRC and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and |
regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. |
Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to |
enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may |
involve deliberate concealment or collusion. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// |
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. |
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. |
Other matters which we are required to address |
The financial statements of The Company for the year ended 28th February 2023 were not audited. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Registered Auditor |
Swift House |
Ground Floor |
18 Hoffmanns Way |
Chelmsford |
Essex |
CM1 1GU |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Statement of Comprehensive Income |
For The Year Ended 29 February 2024 |
2024 | 2023 |
as restated |
(Unaudited) |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
2,488,524 | 2,445,799 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
2,494,815 | 2,483,937 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
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 |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Statement of Financial Position |
29 February 2024 |
2024 | 2023 |
as restated |
(Unaudited) |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Revaluation reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Statement of Changes in Equity |
For The Year Ended 29 February 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 28 February 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 29 February 2024 |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Statement of Cash Flows |
For The Year Ended 29 February 2024 |
2024 | 2023 |
as restated |
(Unaudited) |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
New HP in the year | 5,561,730 | 8,061,018 |
HP repayments in the year | (3,215,736 | ) | (3,436,258 | ) |
Amount introduced by directors | - | 236,916 |
Amount withdrawn by directors | - | (236,916 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
2,192,169 |
Cash and cash equivalents at end of year | 2 | 5,549,324 | 3,329,816 |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Statement of Cash Flows |
For The Year Ended 29 February 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 441,705 | 317,220 |
Finance income | (569 | ) | (544 | ) |
6,167,632 | 5,101,971 |
Decrease in stocks |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 29 February 2024 |
29/2/24 | 1/3/23 |
£ | £ |
Cash and cash equivalents | 5,549,324 | 3,329,816 |
Year ended 28 February 2023 |
28/2/23 | 1/3/22 |
as restated |
(Unaudited) |
£ | £ |
Cash and cash equivalents | 3,329,816 | 2,192,169 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/3/23 | Cash flow | At 29/2/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,329,816 | 2,219,508 | 5,549,324 |
3,329,816 | 5,549,324 |
Debt |
Finance leases | (7,268,900 | ) | (2,345,994 | ) | (9,614,894 | ) |
Debts falling due within 1 year | (130,369 | ) | - | (130,369 | ) |
Debts falling due after 1 year | (905,458 | ) | 127,978 | (777,480 | ) |
(8,304,727 | ) | (2,218,016 | ) | (10,522,743 | ) |
Total | (4,974,911 | ) | 1,492 | (4,973,419 | ) |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements |
For The Year Ended 29 February 2024 |
1. | STATUTORY INFORMATION |
Fiveways Municipal Vehicle Hire Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
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 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. |
Valuation of Freehold Property |
The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein the parties has each acted knowledgeably, prudently and without compulsion. |
The valuations have been prepared by The Directors as at the year end, based upon third party valuations carried out after the year end. The third party valuations have been prepared in accordance with the Royal Institution of Chartered Surveyors ('RICS') Valuation and the experts used recognised valuation techniques applying factors such as current market conditions, annual rentals and the contractual terms of the lease. |
Going concern |
At the time that the financial statements were approved, the directors had a reasonable expectation that the company had adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors have continued to adopt the going concern basis of accounting in preparing the financial statements. |
The directors have considered a period of twelve months following the date of approval of the financial statements, when considering the appropriateness of the adoption of the going concern basis of preparation. |
Turnover |
Turnover represents the amounts receivable from the supply services during the year, net of Value Added Tax. |
The entity recognises revenue (the rendering of services) by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all of the following conditions are satisfied: |
- The amount of revenue can be measured reliably; |
- It is probable that the economic benefits associated with the transaction will flow to the entity; |
-The stage of completion of the transaction at the end of the reporting period can be measured reliably; and |
-The costs incurred for the transaction and the costs to complete the transaction can be measured reliably. |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
3. | ACCOUNTING POLICIES - continued |
Hire of vehicles |
Turnover is usually recognised at the point of invoice, which are raised at the end of that month for the services provided in that preceding month. At the end of the month the spot hire and contract hire period's are considered to be completed, at which point the revenue recognition criteria is satisfied. |
Recharged repair of vehicles |
Turnover is usually recognised at the point of invoice, which are raised at the end of that month for the services provided in that preceding month. The services provided are usually started and completed on the same day, at which point the revenue recognition criteria is satisfied. |
Washing of vehicles |
Turnover is usually recognised at the point of invoice, which are raised at the end of that month for the services provided in that preceding month. The services provided are usually started and completed on the same day, at which point the revenue recognition criteria is satisfied |
Goodwill |
Intangible assets |
Intangible assets are initially recognised at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Impairment of goodwill is assessed annually in line with the provisions of FRS 102 section 27.24. |
Tangible fixed assets |
Land and Buildings | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Screens | - |
Recognition and impairment of tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. |
Freehold property is being recognised under the fair value model less any accumulated depreciation. |
The entity reviews the carrying value's of its tangible fixed assets at each reporting date, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the estimated recoverable value of the asset is used to determine the extent of the impairment loss (if any). |
The land element of the freehold building is not being depreciated. |
Stocks |
Stocks are valued at average weighted cost, derived from, the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
3. | 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 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. |
Basic financial assets |
Basic financial assets, which include trade and other receivables 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 cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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, including trade and other payables, 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 receipts 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. |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
3. | ACCOUNTING POLICIES - continued |
Other financial liabilities |
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate unless hedge accounting is applied and the hedge is a cash flow hedge. |
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
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 difference. |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. Advance rental paid in respect of the operating leases, is treated as a debtor in the accounts, and charged against profits in the months between the final payment and the expiry of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
All of the company's turnover originated and was delivered within the UK. |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
as restated |
(Unaudited) |
Management | 2 | 2 |
Administration | 7 | 8 |
Fitters | 7 | 9 |
Drivers | 3 | 5 |
Washing | 4 | 2 |
Workshop | 3 | 1 |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss on disposal of fixed assets |
Goodwill amortisation |
Auditors' remuneration |
Non-audit services |
Auditors remuneration was nil for the year ending 28th February 2023 as the entity was unaudited. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Bank loan interest |
Interest on late tax |
Hire purchase |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
8. | TAXATION - continued |
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: |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods |
Adjustments due to changes in tax rates | (6,813 | ) | - |
Tax impact of prior year adjustment | - | 6,764 |
Total tax charge | 566,321 | 507,721 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Freehold property revaluation | (425,000 | ) | 1,365,000 |
9. | DIVIDENDS |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Ordinary shares of £1 each |
Interim |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
10. | PRIOR YEAR ADJUSTMENT |
Three material errors were identified within the prior period, dating back to year ending 2022 and have been adjusted for accordingly. In totality the impact upon profit before taxation was: |
Original | Adjustment | Restated |
2022 | £2,488,865 | (£517,115 | ) | £1,971,750 |
2023 | £1,720,804 | - | £1,720,804 |
2024 | £2,043,469 | - | £2,043,469 |
The stock balance in the year ended 2023 was found to be materially misstated due to the incorrect application of FRS 102 section 13.4 "measurement of inventories" dating back through into year ending 2022. The original balance of £642,553 has been reduced by £517,115 to £125,438. The full extent of the error impacted the closing stock within the Statement of Financial Position and the Income Statement. |
The fair value of the freehold property in the year ended 2023 was found to be materially misstated due to the favourable market conditions not being recognised since year ended 2020. The original carrying value of £1,610,000 has been increased by £1,790,000 to £3,700,000. The full extent of the error impacted freehold property and the revaluation reserve. |
The provision for liabilities deferred taxation balance was found to be materially misstated following the error identified on the fair value of the property above. The original deferred taxation liability of £388,330 has been increased by £425,000 to £813,330. The full extent of the error impacted the deferred taxation liability and the revaluation reserve. |
11. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 March 2023 |
and 29 February 2024 |
AMORTISATION |
At 1 March 2023 |
Amortisation for year |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
12. | TANGIBLE FIXED ASSETS |
Improvements |
Land and | to | Plant and |
Buildings | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2023 |
Additions |
Disposals | ( |
) |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
Fixtures |
and | Motor |
fittings | vehicles | Screens | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 March 2023 |
Additions |
Disposals | ( |
) |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
Included in cost or valuation of land and buildings is freehold land of £ 500,000 (2023 - £ 500,000 ) which is not depreciated. |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
12. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 29 February 2024 is represented by: |
Improvements |
Land and | to | Plant and |
Buildings | property | machinery |
£ | £ | £ |
Valuation in 2006 | 762,535 | - | - |
Valuation in 2009 | (237,685 | ) | - | - |
Valuation in 2010 | (354,638 | ) | - | - |
Valuation in 2016 | (150,000 | ) | - | - |
Valuation in 2020 | 250,000 | - | - |
Valuation in 2024 | 1,700,000 | - | - |
Cost | 1,729,788 | 193,730 | 23,847,862 |
3,700,000 | 193,730 | 23,847,862 |
Fixtures |
and | Motor |
fittings | vehicles | Screens | Totals |
£ | £ | £ | £ |
Valuation in 2006 | - | - | - | 762,535 |
Valuation in 2009 | - | - | - | (237,685 | ) |
Valuation in 2010 | - | - | - | (354,638 | ) |
Valuation in 2016 | - | - | - | (150,000 | ) |
Valuation in 2020 | - | - | - | 250,000 |
Valuation in 2024 | - | - | - | 1,700,000 |
Cost | 154,409 | 232,009 | 5,455 | 26,163,253 |
154,409 | 232,009 | 5,455 | 28,133,465 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Cost | 1,729,788 | 1,729,788 |
Aggregate depreciation | 34,596 | 434,605 |
Value of land in freehold land and buildings | 300,000 | 300,000 |
Freehold land and buildings were valued on an open market basis on 29 February 2024 by The Directors . |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
12. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST OR VALUATION |
At 1 March 2023 |
Additions |
Transfer to ownership | (457,075 | ) |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Transfer to ownership | (317,682 | ) |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
13. | STOCKS |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Stocks |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Trade debtors |
Other debtors |
Amounts due from group company | 124,589 | 173,795 |
Prepayments and accrued income |
The amounts due from group company was assessed for any objective evidence of impairment at the reporting date and was subsequently written down by £49,206. |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Bank loans and overdrafts (see note 17) |
Hire purchase contracts (see note 18) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 432,024 | 321,500 |
Other creditors |
Accruals and deferred income |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Bank loans (see note 17) |
Hire purchase contracts (see note 18) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans repayable after |
more than five years | 219,463 | 347,441 |
219,463 | 347,441 |
The Natwest loan is repayable by monthly instalments of £12,298 at a fixed interest rate of 2.66%. |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
18. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2024 | 2023 |
as restate |
(Unaudited |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Bank loans |
Hire purchase contracts | 9,614,894 | 7,268,900 |
The bank loan relating to the remortgage of the freehold property is secured by a legal charge in favour of National Westminster Bank PLC dated 17th January 2020 over the the freehold property. All other liabilities owed from time to time to National Westminster Bank PLC are secured on a fixed and floating charge dated 15th October 2019 over all current and future assets. |
Hire purchase liabilities are all secured on the assets concerned as referenced within note 12 to the financial statements. |
20. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
as restated |
(Unaudited) |
£ | £ |
Deferred tax |
Other timing differences | 51,340 | 51,340 |
Deferred tax | 711,202 | 761,990 |
762,542 | 813,330 |
Deferred |
tax |
£ |
Balance at 1 March 2023 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 29 February 2024 |
Fiveways Municipal Vehicle Hire Limited (Registered number: 03513123) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 500,000 | 500,000 |
22. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 March 2023 | 10,062,473 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 29 February 2024 | 10,733,220 |
23. | ULTIMATE PARENT COMPANY |
The ultimate parent company is Fiveways Holdings Limited, a company registered in England. |
The entity is not included within any consolidated group financial statements due to the group remaining a "small group" under the gross and net limits. |
24. | RELATED PARTY DISCLOSURES |
During the year the company provided a loan to 13 Digital Media Ltd, a company under common control, being interest free and repayable on demand. |
The amount of the loan outstanding at 29 February 2024 is £124,589 (2023: £173,795). |
25. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |