Company registration number 01856762 (England and Wales)
THOMAS'S GROUP (BIRMINGHAM) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
THOMAS'S GROUP (BIRMINGHAM) LIMITED
COMPANY INFORMATION
Directors
Mr S A Thomas
Mrs J T Atkinson
Mrs T M Thomas
Secretary
Mrs T M Thomas
Company number
01856762
Registered office
Thomas's Business Centre
Atlas Trading Estate
Birmingham
West Midlands
B6 7EX
Auditor
CK Audit
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
Business address
Thomas's Business Centre
Atlas Trading Estate
Birmingham
West Midlands
B6 7EX
THOMAS'S GROUP (BIRMINGHAM) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
THOMAS'S GROUP (BIRMINGHAM) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present the strategic report for the year ended 31 October 2024.

Review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year-end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

 

The principal activity of the business has not changed in the year.

 

We consider that our key financial performance indicators are those that communicate the financial performance and the strength of the business, these being the turnover, gross margin, operating margin and return on capital employed. Turnover has increased by 2% in the year to £21,130,417 (2023 £20,714,311).

 

Overall operating profit was £3,889,966 (18.4%) (2023 £4,548,708 (22%)) and profit before tax was £1,512,579 (2023 £3,149,815). After taxation a profit of £1,064,124 (2023 £2,264,620) has been added to reserves.

 

Return on capital employed is 8.6% (2023 12.5%). Return on capital employed is calculated as profit before interest and tax divided by capital employed, which constitutes total assets less current liabilities, less investments, less cash.

Principal risks and uncertainties

As for many businesses of our size, the business environment in which we operate continues to be challenging. The market in the UK is highly competitive and we continue to face strong competition. We are also subject to consumer spending patterns and consumers overall level of disposable income within our economy.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

 

On behalf of the board

Mr S A Thomas
Director
14 April 2025
THOMAS'S GROUP (BIRMINGHAM) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Principal activities

The principal activity of the company in the year under review was that of commercial vehicle hire.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S A Thomas
Mrs J T Atkinson
Mrs T M Thomas
Financial instruments
Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

The auditor, CK Audit, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

THOMAS'S GROUP (BIRMINGHAM) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
On behalf of the board
Mr S A Thomas
Director
14 April 2025
THOMAS'S GROUP (BIRMINGHAM) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -

The directors are responsible for preparing the annual report 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:

 

 

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.

THOMAS'S GROUP (BIRMINGHAM) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THOMAS'S GROUP (BIRMINGHAM) LIMITED
- 5 -
Opinion

We have audited the financial statements of Thomas's Group (Birmingham) Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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:

THOMAS'S GROUP (BIRMINGHAM) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THOMAS'S GROUP (BIRMINGHAM) LIMITED (CONTINUED)
- 6 -
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 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:

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.

Auditor's 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identified and assessed the risks of material misstatement of the financial statements, in respect of irregularities whether due to fraud or error, or non compliance with laws and regulations and then designed and performed audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company by discussion and enquiry with the directors and management team and our general knowledge and experience of the motor dealer 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, employment, and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with relevant regulators and reviewing board minutes.

THOMAS'S GROUP (BIRMINGHAM) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THOMAS'S GROUP (BIRMINGHAM) LIMITED (CONTINUED)
- 7 -
Audit response to risks identified

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. 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.

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.

Blake Morris
Senior Statutory Auditor
For and on behalf of CK Audit
14 April 2025
Chartered Accountants
Statutory Auditor
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
THOMAS'S GROUP (BIRMINGHAM) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
21,130,417
20,714,311
Cost of sales
(14,878,946)
(13,777,734)
Gross profit
6,251,471
6,936,577
Administrative expenses
(2,368,881)
(2,400,649)
Other operating income
7,376
12,780
Operating profit
4
3,889,966
4,548,708
Interest receivable and similar income
6
8,466
1,828
Interest payable and similar expenses
7
(2,385,853)
(1,400,721)
Profit before taxation
1,512,579
3,149,815
Tax on profit
8
(448,455)
(885,195)
Profit for the financial year
1,064,124
2,264,620

The profit and loss account has been prepared on the basis that all operations are continuing operations.

THOMAS'S GROUP (BIRMINGHAM) LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
52,011,484
43,113,286
Investments
12
10,000
10,000
52,021,484
43,123,286
Current assets
Stocks
14
503,320
1,297,771
Debtors
15
4,411,458
3,747,347
Cash at bank and in hand
1,500,734
2,442,618
6,415,512
7,487,736
Creditors: amounts falling due within one year
16
(11,628,585)
(11,881,152)
Net current liabilities
(5,213,073)
(4,393,416)
Total assets less current liabilities
46,808,411
38,729,870
Creditors: amounts falling due after more than one year
17
(30,616,783)
(23,953,519)
Provisions for liabilities
Deferred tax liability
19
2,947,965
2,596,812
(2,947,965)
(2,596,812)
Net assets
13,243,663
12,179,539
Capital and reserves
Called up share capital
21
1,200,000
1,200,000
Profit and loss reserves
12,043,663
10,979,539
Total equity
13,243,663
12,179,539

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 14 April 2025 and are signed on its behalf by:
Mr S A Thomas
Director
Company registration number 01856762 (England and Wales)
THOMAS'S GROUP (BIRMINGHAM) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
1,200,000
9,714,919
10,914,919
Year ended 31 October 2023:
Profit and total comprehensive income
-
2,264,620
2,264,620
Dividends
9
-
(1,000,000)
(1,000,000)
Balance at 31 October 2023
1,200,000
10,979,539
12,179,539
Year ended 31 October 2024:
Profit and total comprehensive income
-
1,064,124
1,064,124
Balance at 31 October 2024
1,200,000
12,043,663
13,243,663
THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
1
Accounting policies
Company information

Thomas's Group (Birmingham) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Thomas's Business Centre, Atlas Trading Estate, Birmingham, West Midlands, B6 7EX.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of TGH Midlands Limited. These consolidated financial statements are available from its registered office, Thomas's Business Centre, Atlas Trading Estate, Birmingham, West Midlands, B6 7EX.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Tangible fixed assets

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

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

Leasehold land and buildings
over the period of lease
Plant and machinery
15%-33% straight line
Fixtures, fittings and equipment
25%-33% straight line
Motor vehicles:
Maxus vans
33% straight line
LCV,vans and cars
20% straight line
HGV
15% straight line
HGV trailers
10% straight line

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

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
1.10
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.11
Equity instruments

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

1.12
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Motor vehicle useful lives and residual values

Motor vehicles are depreciated according to useful lives estimated by the directors (see accounting policies note for details), according to expected market conditions. In the year ended 31 October 2024 the group made an overall net profit on motor vehicle disposals of £2,030,740 (2023 £3,222,787).

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Hire of vehicles
19,152,430
17,526,042
Vehicle sales
1,977,987
3,188,269
21,130,417
20,714,311
2024
2023
£
£
Other revenue
Interest income
8,466
1,828
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
24,976
14,325
Depreciation of owned tangible fixed assets
2,557,322
2,695,408
Depreciation of tangible fixed assets held under finance leases
7,670,655
6,085,465
Profit on disposal of tangible fixed assets
(2,030,740)
(3,222,787)
Operating lease charges
357,442
629,933
THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
5
Employees

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

2024
2023
Number
Number
Employees
50
48

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,902,022
1,836,292
Social security costs
212,127
196,904
Pension costs
38,332
36,180
2,152,481
2,069,376
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
8,466
1,828
7
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
2,385,853
1,341,290
Other interest
-
0
59,431
2,385,853
1,400,721
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
97,485
167,161
Adjustments in respect of prior periods
(183)
-
0
Total current tax
97,302
167,161
Deferred tax
Origination and reversal of timing differences
351,153
718,034
Total tax charge
448,455
885,195
THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
8
Taxation
(Continued)
- 17 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,512,579
3,149,815
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
378,145
787,454
Tax effect of expenses that are not deductible in determining taxable profit
26,674
5,602
Adjustments in respect of prior years
(183)
-
0
Depreciation on assets not qualifying for tax allowances
7,997
7,997
Other permanent differences
2,906
-
0
Tax at marginal rate
-
0
(18,069)
Additional 30% on super deduction allowance
-
0
2,951
Depreciation on finance leases
-
0
143,132
Finance lease repayments
-
0
(386,627)
Profit on disposal of finance lease vehicles
(27,564)
(44,281)
Finance lease proceeds
60,480
387,036
Taxation charge for the year
448,455
885,195
9
Dividends
2024
2023
£
£
Final paid
-
0
1,000,000
10
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
2,255,413
Amortisation and impairment
At 1 November 2023 and 31 October 2024
2,255,413
Carrying amount
At 31 October 2024
-
0
At 31 October 2023
-
0
THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
11
Tangible fixed assets
Leasehold land and buildings
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2023
526,972
455,127
222,849
55,486,186
56,691,134
Additions
176,657
5,450
-
0
25,093,793
25,275,900
Disposals
-
0
-
0
-
0
(11,276,702)
(11,276,702)
At 31 October 2024
703,629
460,577
222,849
69,303,277
70,690,332
Depreciation and impairment
At 1 November 2023
271,080
413,806
215,798
12,677,164
13,577,848
Depreciation charged in the year
31,987
19,430
1,570
10,174,990
10,227,977
Eliminated in respect of disposals
-
0
-
0
-
0
(5,126,977)
(5,126,977)
At 31 October 2024
303,067
433,236
217,368
17,725,177
18,678,848
Carrying amount
At 31 October 2024
400,562
27,341
5,481
51,578,100
52,011,484
At 31 October 2023
255,892
41,321
7,051
42,809,022
43,113,286

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
43,086,399
33,405,074
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
10,000
10,000
13
Subsidiaries

Details of the company's subsidiaries at 31 October 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Thomas's Truck Rental Limited
England & Wales
Ordinary
100.00
THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
503,320
1,297,771
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,290,080
2,970,264
Amounts owed by group undertakings
1,086,290
-
0
Other debtors
674,437
474,541
Prepayments and accrued income
360,651
302,542
4,411,458
3,747,347
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
18
9,868,484
7,663,429
Trade creditors
1,450,837
3,022,809
Amounts owed to group undertakings
-
0
234,088
Corporation tax
97,485
661,327
Other taxation and social security
51,809
52,382
Other creditors
122,093
119,003
Accruals and deferred income
37,877
128,114
11,628,585
11,881,152
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
30,606,783
23,943,519
Other creditors
10,000
10,000
30,616,783
23,953,519
THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
9,868,483
7,663,429
In two to five years
30,606,784
23,943,519
40,475,267
31,606,948

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
2,947,965
2,596,812
2024
Movements in the year:
£
Liability at 1 November 2023
2,596,812
Charge to profit or loss
351,153
Liability at 31 October 2024
2,947,965
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
38,332
36,180

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
246,350
246,350
246,350
246,350
Ordinary B shares of £1 each
246,350
246,350
246,350
246,350
Ordinary C shares of £1 each
60,000
60,000
60,000
60,000
Ordinary D shares of £1 each
60,000
60,000
60,000
60,000
Ordinary E shares of £1 each
587,300
587,300
587,300
587,300
1,200,000
1,200,000
1,200,000
1,200,000
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
28,061
147,688
Between two and five years
-
0
28,061
28,061
175,749
23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Connected company
21,643
6,719
90
-
Management charges
Rental charges
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
960,000
961,367
357,000
358,263
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
-
0
234,088
THOMAS'S GROUP (BIRMINGHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
23
Related party transactions
(Continued)
- 22 -
Entities over which the entity has control, joint control or significant influence
10,000
10,000

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
1,086,290
-
Connected company
-
25,375
24
Ultimate controlling party

The company's ultimate parent company at the balance sheet date was TGH Midlands Limited, a company registered in England and Wales. Copies of the group accounts can be obtained from the Company Secretary at Thomas's Business Centre, Atlas Trading Estate, Birmingham, West Midlands, B6 7EX.

 

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