IRIS Accounts Production v24.3.2.46 05436235 Board of Directors 1.7.23 30.6.24 30.6.24 Medium entities No description of principal activity true false true true false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh054362352023-06-30054362352024-06-30054362352023-07-012024-06-30054362352022-06-30054362352022-07-012023-06-30054362352023-06-3005436235ns15:EnglandWales2023-07-012024-06-3005436235ns14:PoundSterling2023-07-012024-06-3005436235ns10:Director12023-07-012024-06-3005436235ns10:PrivateLimitedCompanyLtd2023-07-012024-06-3005436235ns10:MediumEntities2023-07-012024-06-3005436235ns10:Audited2023-07-012024-06-3005436235ns10:Medium-sizedCompaniesRegimeForDirectorsReport2023-07-012024-06-3005436235ns10:Medium-sizedCompaniesRegimeForAccounts2023-07-012024-06-3005436235ns10:FullAccounts2023-07-012024-06-3005436235ns10:EntityNoLongerTradingButTradedInPast2023-07-012024-06-3005436235ns10:OrdinaryShareClass12023-07-012024-06-3005436235ns10:Director22023-07-012024-06-3005436235ns10:Director32023-07-012024-06-3005436235ns10:Director42023-07-012024-06-3005436235ns10:RegisteredOffice2023-07-012024-06-3005436235ns5:CurrentFinancialInstruments2024-06-3005436235ns5:CurrentFinancialInstruments2023-06-3005436235ns5:Non-currentFinancialInstruments2024-06-3005436235ns5:Non-currentFinancialInstruments2023-06-3005436235ns5:ShareCapital2024-06-3005436235ns5:ShareCapital2023-06-3005436235ns5:RetainedEarningsAccumulatedLosses2024-06-3005436235ns5:RetainedEarningsAccumulatedLosses2023-06-3005436235ns5:ShareCapital2022-06-3005436235ns5:RetainedEarningsAccumulatedLosses2022-06-3005436235ns5:RetainedEarningsAccumulatedLosses2022-07-012023-06-3005436235ns5:RetainedEarningsAccumulatedLosses2023-07-012024-06-3005436235ns5:PlantMachinery2023-07-012024-06-3005436235ns5:FurnitureFittings2023-07-012024-06-3005436235ns5:MotorVehicles2023-07-012024-06-3005436235ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2023-07-012024-06-3005436235ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-07-012023-06-3005436235ns5:OwnedAssets2023-07-012024-06-3005436235ns5:OwnedAssets2022-07-012023-06-3005436235ns5:LeasedAssets2023-07-012024-06-3005436235ns5:LeasedAssets2022-07-012023-06-3005436235ns5:HirePurchaseContracts2023-07-012024-06-3005436235ns5:HirePurchaseContracts2022-07-012023-06-3005436235ns10:OrdinaryShareClass12022-07-012023-06-3005436235ns5:PlantMachinery2023-06-3005436235ns5:FurnitureFittings2023-06-3005436235ns5:MotorVehicles2023-06-3005436235ns5:ComputerEquipment2023-06-3005436235ns5:ComputerEquipment2023-07-012024-06-3005436235ns5:PlantMachinery2024-06-3005436235ns5:FurnitureFittings2024-06-3005436235ns5:MotorVehicles2024-06-3005436235ns5:ComputerEquipment2024-06-3005436235ns5:PlantMachinery2023-06-3005436235ns5:FurnitureFittings2023-06-3005436235ns5:MotorVehicles2023-06-3005436235ns5:ComputerEquipment2023-06-3005436235ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-06-3005436235ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-06-3005436235ns5:LeasedAssetsHeldAsLessee2023-06-3005436235ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-07-012024-06-3005436235ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-07-012024-06-3005436235ns5:LeasedAssetsHeldAsLessee2023-07-012024-06-3005436235ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2024-06-3005436235ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2024-06-3005436235ns5:LeasedAssetsHeldAsLessee2024-06-3005436235ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-06-3005436235ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-06-3005436235ns5:LeasedAssetsHeldAsLessee2023-06-3005436235ns5:WithinOneYearns5:CurrentFinancialInstruments2024-06-3005436235ns5:WithinOneYearns5:CurrentFinancialInstruments2023-06-3005436235ns5:WithinOneYearns5:HirePurchaseContracts2024-06-3005436235ns5:WithinOneYearns5:HirePurchaseContracts2023-06-3005436235ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2024-06-3005436235ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-06-3005436235ns5:HirePurchaseContracts2024-06-3005436235ns5:HirePurchaseContracts2023-06-3005436235ns5:WithinOneYearns5:CurrentFinancialInstrumentsns5:HirePurchaseContracts2024-06-3005436235ns5:WithinOneYearns5:CurrentFinancialInstrumentsns5:HirePurchaseContracts2023-06-3005436235ns5:DeferredTaxation2023-06-3005436235ns5:DeferredTaxation2023-07-012024-06-3005436235ns5:DeferredTaxation2024-06-3005436235ns10:OrdinaryShareClass12024-06-3005436235ns5:RetainedEarningsAccumulatedLosses2023-06-3005436235ns5:OtherRelatedParties2023-07-012024-06-3005436235ns5:OtherRelatedParties2022-07-012023-06-30
REGISTERED NUMBER: 05436235 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 June 2024

for

PowerX Equipment Ltd

PowerX Equipment Ltd (Registered number: 05436235)






Contents of the Financial Statements
for the Year Ended 30 June 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


PowerX Equipment Ltd

Company Information
for the Year Ended 30 June 2024







DIRECTORS: J Bracken
A F Moss
L S Talbot
Ms L J Orme





REGISTERED OFFICE: Site 7 Cornets End Lane
Meriden
Coventry
CV7 7LG





REGISTERED NUMBER: 05436235 (England and Wales)





AUDITORS: Thornton Springer LLP
Chartered Accountants and
Statutory Auditor
67 Westow Street
London
SE19 3RW

PowerX Equipment Ltd (Registered number: 05436235)

Strategic Report
for the Year Ended 30 June 2024

The directors present their strategic report for the year ended 30 June 2024.

Review of Business
PowerX Equipment Ltd (referred to as "PowerX") is a wholly owned subsidiary of PowerX Holdings Ltd.

PowerX is a leading player in the next generation of aggregate and mineral processing. Founded by industry experts with decades of experience, we fully understand the dynamic nature of the industry and the ever-changing demands of our clients. With a strong commitment to continuous improvement, we are dedicated to adapting our operations to meet both current and future equipment and service needs.

We pride ourselves on assembling a passionate, experienced team, collaborating with trusted brands such as Powerscreen, Terex MPS, Matec, AMP, and MS. Supported by our highly skilled engineers, we ensure that your operations run smoothly through our premium equipment servicing.

Whether our clients require individual equipment or comprehensive plant solutions, PowerX is prepared to design, supply, and install bespoke solutions for Aggregate Washing, Crushing & Screening, Bulk Material Handling, Recycling, and Material Processing. Our commitment to building lasting relationships with customers and suppliers, grounded in service excellence and integrity, remains central to everything we do.

Principal Risks & Uncertainties
The financial year 2023/24 has been a stable one, though it has presented some market challenges. PowerX has faced increased interest rates and rising operating costs, which have impacted overall profitability for the year. However, we forecast a positive shift in the coming years as our business model evolves with a stronger focus on mineral processing and equipment hire.

Our mineral processing and hire division continues to grow, supported by positive demand in the marketplace. Additionally, our spares and services division has seen ongoing growth, and we are reviewing our product offerings to ensure they align with the evolving needs of both current and potential customers. The year saw a solid mix of returning and new clients, which strengthens our market position.

We have made significant investments in our asset base, closely monitored stock levels, and reviewed overheads to optimize margin management.

Results and Performance
Turnover for the year has remained steady, aligning with the previous year's performance. While net profit has decreased compared to the prior year, this was a result of intentional, significant investments in our asset base to support the continued growth of our mineral processing and hire division.
Our spares and service division has again delivered strong results, highlighting our dedication to providing genuine parts and engineering expertise that reduce downtime and enhance productivity.

The company's financial results, as outlined in the accompanying accounts, show a revenue of £19.06m, with a pre-tax profit of £0.32m. As of 30 June 2024, net assets stood at £4.22m.

Key Performance Indicators
As we continue to expand, we are focusing on several key performance indicators (KPIs) to drive our strategy. These include growth within our mineral processing and hire divisions, as well as expanding our market share in capital sales.

ON BEHALF OF THE BOARD:





L S Talbot - Director


20 March 2025

PowerX Equipment Ltd (Registered number: 05436235)

Report of the Directors
for the Year Ended 30 June 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2024.

DIVIDENDS
An interim dividend of £27,500 per share was paid on 12 October 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 June 2024 will be £ 27,500 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

J Bracken
A F Moss
L S Talbot
Ms L J Orme

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 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 company's auditors are aware of that information.

AUDITORS
The auditors, Thornton Springer LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





L S Talbot - Director


20 March 2025

Report of the Independent Auditors to the Members of
PowerX Equipment Ltd

Opinion
We have audited the financial statements of PowerX Equipment Ltd (the 'company') for the year ended 30 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 30 June 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the 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 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 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
PowerX Equipment Ltd


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.

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, 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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Report of the Independent Auditors to the Members of
PowerX Equipment Ltd


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:

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.

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with relevant laws and regulations. Non-compliance with these laws and regulations might have a material effect on the financial statements.

We evaluated management's incentives and opportunity for fraudulent manipulation of the financial statement (including the risk of override of controls) and determined that the principal risks were posting of unusual journal entries outside the normal course of business and revenue recognition journal entries to manipulate the company's performance profit measures and other key performance indicators.

Audit procedures performed included: review of the financial statements and disclosures to underlying supporting documentation, review of compliance with the laws and regulations, enquiries with management, testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Under ISA 240 (UK) there is a presumed risk that revenue may be misstated due to the improper recognition of revenue. To address this risk, we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard, performed a walk-through to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions. We tested a sample of revenue transactions to supporting evidence and tested, on a sample basis, revenue related balances in the balance sheet.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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
PowerX Equipment Ltd


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.




Zahid Saleem FCCA ACA (Senior Statutory Auditor)
for and on behalf of Thornton Springer LLP
Chartered Accountants and
Statutory Auditor
67 Westow Street
London
SE19 3RW

20 March 2025

PowerX Equipment Ltd (Registered number: 05436235)

Statement of Comprehensive Income
for the Year Ended 30 June 2024

30.6.24 30.6.23
Notes £    £   

TURNOVER 4 19,063,869 19,814,721

Cost of sales (13,807,011 ) (14,066,112 )
GROSS PROFIT 5,256,858 5,748,609

Distribution costs (234,673 ) (253,783 )
Administrative expenses (3,565,405 ) (3,086,345 )
OPERATING PROFIT 6 1,456,780 2,408,481

Interest receivable and similar income 279 2,146
1,457,059 2,410,627

Interest payable and similar expenses 7 (1,141,141 ) (1,312,642 )
PROFIT BEFORE TAXATION 315,918 1,097,985

Tax on profit 8 (48,935 ) 152,653
PROFIT FOR THE FINANCIAL YEAR 266,983 1,250,638

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

266,983

1,250,638

PowerX Equipment Ltd (Registered number: 05436235)

Balance Sheet
30 June 2024

30.6.24 30.6.23
Notes £    £   
FIXED ASSETS
Tangible assets 10 14,662,771 7,786,023

CURRENT ASSETS
Stocks 11 10,487,442 9,852,167
Debtors 12 7,213,751 6,073,413
Cash at bank and in hand 2,373 362,474
17,703,566 16,288,054
CREDITORS
Amounts falling due within one year 13 (17,267,336 ) (15,805,940 )
NET CURRENT ASSETS 436,230 482,114
TOTAL ASSETS LESS CURRENT
LIABILITIES

15,099,001

8,268,137

CREDITORS
Amounts falling due after more than one
year

14

(10,409,200

)

(3,909,819

)

PROVISIONS FOR LIABILITIES 17 (472,000 ) (380,000 )
NET ASSETS 4,217,801 3,978,318

CAPITAL AND RESERVES
Called up share capital 18 1 1
Retained earnings 19 4,217,800 3,978,317
SHAREHOLDERS' FUNDS 4,217,801 3,978,318

The financial statements were approved by the Board of Directors and authorised for issue on 20 March 2025 and were signed on its behalf by:





L S Talbot - Director


PowerX Equipment Ltd (Registered number: 05436235)

Statement of Changes in Equity
for the Year Ended 30 June 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2022 1 2,877,679 2,877,680

Changes in equity
Dividends - (150,000 ) (150,000 )
Total comprehensive income - 1,250,638 1,250,638
Balance at 30 June 2023 1 3,978,317 3,978,318

Changes in equity
Dividends - (27,500 ) (27,500 )
Total comprehensive income - 266,983 266,983
Balance at 30 June 2024 1 4,217,800 4,217,801

PowerX Equipment Ltd (Registered number: 05436235)

Cash Flow Statement
for the Year Ended 30 June 2024

30.6.24 30.6.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (115,625 ) 950,860
Interest element of hire purchase payments
paid

(1,141,141

)

(1,312,642

)
Tax paid 43,917 145,275
Net cash from operating activities (1,212,849 ) (216,507 )

Cash flows from investing activities
Purchase of tangible fixed assets (7,858,649 ) (4,132,633 )
Sale of tangible fixed assets 175,000 2,050,874
Interest received 279 2,146
Net cash from investing activities (7,683,370 ) (2,079,613 )

Cash flows from financing activities
Capital repayments in year 7,051,832 1,341,325
Amount introduced by directors 3,476,500 2,554,000
Amount withdrawn by directors (1,964,714 ) (1,524,250 )
Equity dividends paid (27,500 ) (150,000 )
Net cash from financing activities 8,536,118 2,221,075

Decrease in cash and cash equivalents (360,101 ) (75,045 )
Cash and cash equivalents at beginning of
year

2

362,474

437,519

Cash and cash equivalents at end of year 2 2,373 362,474

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Cash Flow Statement
for the Year Ended 30 June 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

30.6.24 30.6.23
£    £   
Profit before taxation 315,918 1,097,985
Depreciation charges 836,044 669,675
Profit on disposal of fixed assets (29,142 ) (132,439 )
Finance costs 1,141,141 1,312,642
Finance income (279 ) (2,146 )
2,263,682 2,945,717
Increase in stocks (635,275 ) (2,021,315 )
(Increase)/decrease in trade and other debtors (1,582,048 ) 1,625,713
Decrease in trade and other creditors (161,984 ) (1,599,255 )
Cash generated from operations (115,625 ) 950,860

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 30 June 2024
30.6.24 1.7.23
£    £   
Cash and cash equivalents 2,373 362,474
Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 362,474 437,519


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.7.23 Cash flow At 30.6.24
£    £    £   
Net cash
Cash at bank and in hand 362,474 (360,101 ) 2,373
362,474 (360,101 ) 2,373
Debt
Finance leases (6,025,252 ) (7,051,832 ) (13,077,084 )
(6,025,252 ) (7,051,832 ) (13,077,084 )
Total (5,662,778 ) (7,411,933 ) (13,074,711 )

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements
for the Year Ended 30 June 2024

1. STATUTORY INFORMATION

PowerX Equipment Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention as modified by the recognition of certain financial assets and liabilities measured at fair value.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

Depreciation of tangible fixed assets

Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives as set out above. The selection of these residual values and estimated lives requires the exercise of management judgement.

Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Contract revenue recognition

Turnover is measured at the fair value of consideration received or receivable, net of discounts, rebates, value added taxes and other sales taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 5% on cost
Fixtures and fittings - 33% on cost
Motor vehicles - 33% on cost

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

3. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase and other costs incurred in bringing stock to its present location and condition, including any import costs, duties and carriage.

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 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.

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.

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.

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 paid under operating leases are charged to profit or loss on a straight line basis over the period 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.

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

3. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and intra-group balances, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at cost and amortised cost are assessed for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

For financial assets measured at amortised costs, the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated cash flow discounted at the asset's original effective interest rate.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank overdraft, intra-group balances and hire purchase contracts, 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.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, and, if applicable, other short-term highly liquid investments with original maturities of three months or less.

4. TURNOVER

The turnover and profit before taxation from continuing activities is attributable to one principal activity of the company.

Geographical analysis

Segmental analysis has not been provided on the basis that in the directors' opinion such information would be seriously prejudicial to the company's interest.

5. EMPLOYEES AND DIRECTORS
30.6.24 30.6.23
£    £   
Wages and salaries 2,110,031 1,922,882
Social security costs 225,247 211,066
Other pension costs 31,460 27,104
2,366,738 2,161,052

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
30.6.24 30.6.23

Management and administration 8 8
Sales and quarrying services 29 29
37 37

30.6.24 30.6.23
£    £   
Directors' remuneration 185,650 175,866
Directors' pension contributions to money purchase schemes 3,180 3,000

No retirement benefits are accruing for any directors.

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.6.24 30.6.23
£    £   
Hire of plant and machinery 647,876 260,332
Other operating leases 191,772 202,287
Depreciation - owned assets 19,050 10,012
Depreciation - assets on hire purchase contracts 816,993 659,661
Profit on disposal of fixed assets (29,142 ) (132,439 )
Auditors' remuneration 10,000 10,000
Foreign exchange differences 1,242 (860 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
30.6.24 30.6.23
£    £   
Hire purchase 1,141,141 1,312,642

8. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
30.6.24 30.6.23
£    £   
Current tax:
(Over)/under provision in prior years (43,065 ) (145,904 )

Deferred tax 92,000 (6,749 )
Tax on profit 48,935 (152,653 )

UK corporation tax has been charged at 25% (2023 - 25%).

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

8. TAXATION - continued

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30.6.24 30.6.23
£    £   
Profit before tax 315,918 1,097,985
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

78,980

274,496

Effects of:
Expenses not deductible for tax purposes 19,481 13,805
Income not taxable for tax purposes (7,286 ) (33,110 )
Capital allowances in excess of depreciation (813,152 ) (638,995 )
Utilisation of tax losses 721,977 383,804
Adjustments to tax charge in respect of previous periods (43,065 ) (145,904 )
Deferred tax 92,000 (6,749 )
Total tax charge/(credit) 48,935 (152,653 )

Changes to the future UK corporation tax rates were substantively enacted as part of the Finance Bill 2021 on 24 May 2021. It makes provision for the rate of corporation tax in the UK to increase from 1 April 2023 from 19% to 25% where a company has taxable profits exceeding £250,000. These limits are adjusted according to the number of associated companies. Therefore, the tax rate of 25% has been used in the calculations for 2023 & 2024.

9. DIVIDENDS
30.6.24 30.6.23
£    £   
Ordinary share of £1
Interim 27,500 150,000

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 July 2023 7,892,017 113,110 1,304,501 9,497 9,319,125
Additions 7,685,707 - 166,482 6,460 7,858,649
Disposals (150,240 ) - - - (150,240 )
At 30 June 2024 15,427,484 113,110 1,470,983 15,957 17,027,534
DEPRECIATION
At 1 July 2023 557,750 111,419 861,663 2,270 1,533,102
Charge for year 540,624 752 290,290 4,377 836,043
Eliminated on disposal (4,382 ) - - - (4,382 )
At 30 June 2024 1,093,992 112,171 1,151,953 6,647 2,364,763
NET BOOK VALUE
At 30 June 2024 14,333,492 939 319,030 9,310 14,662,771
At 30 June 2023 7,334,267 1,691 442,838 7,227 7,786,023

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 July 2023 7,613,593 903,088 8,516,681
Additions 7,685,707 166,482 7,852,189
Disposals (150,240 ) - (150,240 )
Transfer to ownership (2,026,447 ) (310,877 ) (2,337,324 )
At 30 June 2024 13,122,613 758,693 13,881,306
DEPRECIATION
At 1 July 2023 541,828 460,250 1,002,078
Charge for year 526,703 290,290 816,993
Eliminated on disposal (4,382 ) - (4,382 )
Transfer to ownership (331,075 ) (310,877 ) (641,952 )
At 30 June 2024 733,074 439,663 1,172,737
NET BOOK VALUE
At 30 June 2024 12,389,539 319,030 12,708,569
At 30 June 2023 7,071,765 442,838 7,514,603

11. STOCKS
30.6.24 30.6.23
£    £   
Finished goods 10,487,442 9,852,167

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Trade debtors 1,446,317 1,572,012
Amounts owed by group undertakings 4,045,683 3,626,299
Other debtors 2,000 -
Amounts recoverable under
contracts 1,286,387 -
Corporation tax - 852
VAT 302,067 372,558
Prepayments and accrued income 131,297 501,692
7,213,751 6,073,413

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Hire purchase contracts (see note 15) 2,667,884 2,115,433
Trade creditors 6,505,257 7,992,489
Amounts owed to group undertakings 34,031 404,398
Social security and other taxes 466,860 127,907
Other creditors 30,512 1,564,917
Amounts owed to related entities 4,863,584 2,347,995
Directors' current accounts 2,588,104 1,076,318
Accruals and deferred income 111,104 176,483
17,267,336 15,805,940

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.6.24 30.6.23
£    £   
Hire purchase contracts (see note 15) 10,409,200 3,909,819

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

15. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

30.6.24 30.6.23
£    £   
Gross obligations repayable:
Within one year 3,524,254 2,538,797
Between one and five years 13,033,928 4,909,127
16,558,182 7,447,924

Finance charges repayable:
Within one year 856,370 423,364
Between one and five years 2,624,728 999,308
3,481,098 1,422,672

Net obligations repayable:
Within one year 2,667,884 2,115,433
Between one and five years 10,409,200 3,909,819
13,077,084 6,025,252

16. SECURED DEBTS

The following secured debts are included within creditors:

30.6.24 30.6.23
£    £   
Hire purchase contracts 13,077,084 6,025,252

Hire purchase contracts are secured against the related assets.

17. PROVISIONS FOR LIABILITIES
30.6.24 30.6.23
£    £   
Deferred tax 472,000 380,000

Deferred
tax
£   
Balance at 1 July 2023 380,000
Provided during year 92,000
Balance at 30 June 2024 472,000

PowerX Equipment Ltd (Registered number: 05436235)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.24 30.6.23
value: £    £   
1 Ordinary £1 1 1

19. RESERVES
Retained
earnings
£   

At 1 July 2023 3,978,317
Profit for the year 266,983
Dividends (27,500 )
At 30 June 2024 4,217,800

20. ULTIMATE PARENT COMPANY

The immediate and ultimate parent company during the financial year was PowerX Holdings Limited, a company incorporated in England and Wales.

These financial statements have been consolidated in the financial statements of PowerX Holdings Limited. The consolidated financial statements can be obtained from Site 7, Meriden Park, Cornets End lane, Coventry, CV7 7LG

21. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Companies under common control
30.6.24 30.6.23
£    £   
Sales 95,862 3,351,403
Purchases 44,043 1,842,307

22. ULTIMATE CONTROLLING PARTY

The directors are considered to be the ultimate controlling parties by virtue of their ability to act in concert in respect of the financial and operating policies of the company.