Company registration number 04083844 (England and Wales)
G R POTTER PLANT HIRE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
G R POTTER PLANT HIRE LIMITED
COMPANY INFORMATION
Directors
Mr G R Potter
Mr L Nickling
Secretary
Mrs S J Potter
Company number
04083844
Registered office
Village Farm
Catton Moor Lane
Thirsk
North Yorkshire
YO7 4BZ
Auditor
Henton & Co LLP
124 Acomb Road
York
YO24 4EY
Bankers
Virgin Money
21 James Street
Harrogate
HG1 1QU
G R POTTER PLANT HIRE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Notes to the financial statements
11 - 22
G R POTTER PLANT HIRE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
Business Review
The Company is a wholly owned subsidiary of G R Potter Holdings Limited.
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 director is pleased with the continued growth of the Company, through an increase in both turnover and profit before tax. This is due to increased demand for equipment hire, which has allowed the Company to invest in additional plant.
Key Performance Indicators
The directors consider the key performance indicators to be turnover and profit before tax. In the year turnover has increased by £5.5m (22.3%) from £24.7m to £30.2m. Profit before tax increased by £1.5m (40.8%) from £3.7m to £5.3m.
Principal Risks and Uncertainties
As with all trading businesses, the company is exposed to risks during the conduct of its normal business operations. Strategies are in place to reduce the impact of these risks where possible. The principal risks include competition from across the sector and changes in government spending on transport infrastructure.
Financial risk management
The company's operations expose it to a variety of risks that include liquidity risk and interest rate risk.
Given the size of the company, the director has not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board are implemented by the company's management.
Price risk
The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations the costs of managing exposure to commodity price risk exceed any potential benefits. The board will reconsider the appropriateness of this policy should the company's operations change in size or nature.
Credit risk
The company has implemented policies that require appropriate credit checks on potential customers before sales are made.
Liquidity risk
The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions.
Interest rate risk
The company has both interest bearing assets and interest bearing liabilities. The company's exposure to interest rate risk is regularly evaluated and action would be taken to mitigate any exposure as necessary.
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 our control.
G R POTTER PLANT HIRE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
This report was approved by the board of directors and signed on behalf of the board.
Mr G R Potter
Director
30 April 2025
G R POTTER PLANT HIRE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the company continued to be that of hire of plant and machinery.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr G R Potter
Mr L Nickling
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £319,223. The directors do not recommend payment of a further dividend.
Financial instruments
The company's principal financial instruments comprise bank balances, trade creditors, trade debtors, hire purchase agreements and a bank loan. The main purpose of these instruments is to raise funds for the company's operations.
Due to the nature of the financial instruments used by the company, there is no exposure to price risk. The company's approach to managing other risks applicable to the financial statements is shown below.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through closely monitoring the balance.
In respect of the hire purchase agreements and bank loan these comprise the financing of assets by the company bankers and asset financing companies. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments. Interest is paid at a commercial rate on these.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Future developments
The level of business and the year end financial position remain satisfactory for the company and the director is confident of being able to develop the business further in the future.
Auditor
Henton & Co LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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.
G R POTTER PLANT HIRE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
On behalf of the board
Mr G R Potter
Director
30 April 2025
G R POTTER PLANT HIRE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
G R POTTER PLANT HIRE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G R POTTER PLANT HIRE LIMITED
- 6 -
Opinion
We have audited the financial statements of G R Potter Plant Hire Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of income and retained earnings, the balance sheet 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:
give a true and fair view of the state of the company's affairs as at 31 October 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.
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.
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.
G R POTTER PLANT HIRE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G R POTTER PLANT HIRE LIMITED (CONTINUED)
- 7 -
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:
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 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.
- Enquiry of management and those charged with governance around actual and potential litigation and claims.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
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.
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.
G R POTTER PLANT HIRE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G R POTTER PLANT HIRE LIMITED (CONTINUED)
- 8 -
Brett Davis (Senior Statutory Auditor)
For and on behalf of Henton & Co LLP, Statutory Auditor
Chartered Accountants
124 Acomb Road
York
YO24 4EY
30 April 2025
G R POTTER PLANT HIRE LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
30,251,024
24,722,281
Cost of sales
(22,421,571)
(19,233,016)
Gross profit
7,829,453
5,489,265
Administrative expenses
(1,305,827)
(939,797)
Other operating income
42,680
171,217
Operating profit
5
6,566,306
4,720,685
Interest receivable and similar income
7
66,293
15,008
Interest payable and similar expenses
8
(1,328,623)
(969,798)
Profit before taxation
5,303,976
3,765,895
Tax on profit
9
(1,256,262)
(612,411)
Profit for the financial year
4,047,714
3,153,484
Retained earnings brought forward
11,518,747
8,594,225
Dividends
10
(319,223)
(228,962)
Retained earnings carried forward
15,247,238
11,518,747
The profit and loss account has been prepared on the basis that all operations are continuing operations.
G R POTTER PLANT HIRE LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
32,946,999
27,495,109
Current assets
Stocks
12
21,542
26,240
Debtors
13
6,285,226
5,241,684
Cash at bank and in hand
3,366,783
2,136,187
9,673,551
7,404,111
Creditors: amounts falling due within one year
14
(8,833,074)
(7,459,756)
Net current assets/(liabilities)
840,477
(55,645)
Total assets less current liabilities
33,787,476
27,439,464
Creditors: amounts falling due after more than one year
15
(15,122,753)
(13,871,877)
Provisions for liabilities
Deferred tax liability
17
3,417,385
2,048,740
(3,417,385)
(2,048,740)
Net assets
15,247,338
11,518,847
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
15,247,238
11,518,747
Total equity
15,247,338
11,518,847
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 30 April 2025 and are signed on its behalf by:
Mr G R Potter
Director
Company registration number 04083844 (England and Wales)
G R POTTER PLANT HIRE LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2024
31 October 2024
- 11 -
1
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.
2
Accounting policies
Company information
G R Potter Plant Hire Limited is a private company limited by shares incorporated in England and Wales. The registered office is Village Farm, Catton Moor Lane, Thirsk, North Yorkshire, YO7 4BZ.
2.1
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:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of G R Potter Holdings Limited. These consolidated financial statements are available from its registered office, Village Farm, Catton Moor Lane, Thirsk, North Yorkshire, YO7 4BZ.
2.2
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.
G R POTTER PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
2
Accounting policies
(Continued)
- 12 -
2.3
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.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
2.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
15% reducing balance
Fixtures and fittings
20% straight line
Motor vehicles
25% reducing balance and 33.33% 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.
2.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
2.6
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.
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.
2.7
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held with banks.
G R POTTER PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
2
Accounting policies
(Continued)
- 13 -
2.8
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
G R POTTER PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
2
Accounting policies
(Continued)
- 14 -
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.
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 through 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.
2.9
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.
2.10
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.
G R POTTER PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
2
Accounting policies
(Continued)
- 15 -
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.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
2.11
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
2.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.13
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.
3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
66,293
15,008
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
G R POTTER PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administrative staff
13
10
Management staff
4
4
Other staff
84
68
Total
101
82
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
7,132,688
5,226,060
Social security costs
710,850
521,322
Pension costs
144,579
57,416
7,988,117
5,804,798
5
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
8,430
8,030
Depreciation of owned tangible fixed assets
5,160,074
4,065,992
Profit on disposal of tangible fixed assets
(118,414)
(211,558)
Operating lease charges
34,000
33,415
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
102,718
60,951
Company pension contributions to defined contribution schemes
61,321
881
164,039
61,832
G R POTTER PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
66,137
13,259
Other interest income
156
1,749
Total income
66,293
15,008
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
1,264
Interest on finance leases and hire purchase contracts
1,328,623
968,534
1,328,623
969,798
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(112,383)
(193,361)
Deferred tax
Origination and reversal of timing differences
1,368,645
805,772
Total tax charge
1,256,262
612,411
The Finance Act 2021 was substantially enacted in May 2021 and has increased the corporation tax rate from 19% to 25% with effect from 1 April 2023.
G R POTTER PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
9
Taxation
(Continued)
- 18 -
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
5,303,976
3,765,895
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.50%)
1,325,994
847,326
Tax effect of expenses that are not deductible in determining taxable profit
11,864
760
Unutilised tax losses carried forward
518,883
284,493
Group relief
30,787
30,032
Permanent capital allowances in excess of depreciation
(1,875,776)
(1,162,611)
Research and development tax credit
(112,383)
(193,361)
Deferred tax
1,356,893
805,772
Taxation charge for the year
1,256,262
612,411
10
Dividends
2024
2023
£
£
Final paid
319,223
228,962
G R POTTER PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
11
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2023
39,730,711
51,632
1,735,222
41,517,565
Additions
10,590,681
710,377
11,301,058
Disposals
(1,634,373)
(230,184)
(1,864,557)
At 31 October 2024
48,687,019
51,632
2,215,415
50,954,066
Depreciation and impairment
At 1 November 2023
13,136,888
29,071
856,497
14,022,456
Depreciation charged in the year
4,804,150
7,154
348,770
5,160,074
Eliminated in respect of disposals
(1,063,883)
(111,580)
(1,175,463)
At 31 October 2024
16,877,155
36,225
1,093,687
18,007,067
Carrying amount
At 31 October 2024
31,809,864
15,407
1,121,728
32,946,999
At 31 October 2023
26,593,823
22,561
878,725
27,495,109
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
£
£
Plant and machinery
27,191,773
23,574,488
Motor vehicles
993,588
786,891
28,185,361
24,361,379
12
Stocks
2024
2023
£
£
Raw materials and consumables
21,542
26,240
G R POTTER PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,969,504
3,430,298
Corporation tax recoverable
194,036
Amounts owed by group undertakings
1,490,330
970,962
Other debtors
819,725
625,721
Prepayments and accrued income
5,667
20,667
6,285,226
5,241,684
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
7,622,334
6,042,390
Trade creditors
922,437
1,204,346
Amounts owed to group undertakings
11,602
Taxation and social security
210,745
148,891
Other creditors
12,117
13,240
Accruals and deferred income
53,839
50,889
8,833,074
7,459,756
The bank loan is secured by a fixed and floating charge over the company's assets. Hire purchase liabilities are secured on the associated assets.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
15,122,753
13,871,877
Hire purchase liabilities are secured on the associated assets.
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
7,622,334
6,042,390
In two to five years
15,122,753
13,871,877
22,745,087
19,914,267
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.
G R POTTER PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
17
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
6,688,860
4,813,084
Tax losses
(3,271,475)
(2,764,344)
3,417,385
2,048,740
2024
Movements in the year:
£
Liability at 1 November 2023
2,048,740
Charge to profit or loss
1,368,645
Liability at 31 October 2024
3,417,385
The reversal of deferred tax liabilities in the year commencing 1 November 2024 is not expected to be material.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
144,579
57,416
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.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company's residual assets.
G R POTTER PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
20
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The company made sales of £1,076 (2023: £1,913) to and purchases of £5,878 (2023: £8,770) from Hannah Potter, the daughter of Giles Potter. At the year end £1,905 (2023: £5,374) was included in trade debtors and £1,426 (2023: £1,392) was included in trade creditors.
The company made sales of £9,575 (2023: £19,325) to and purchases of £68,619 (2023: £139,356) from P & S Hire Limited, another group company. At the year end £3,777 (2023: £6,103) was included in trade debtors and £15,379 (2023: £11,755) was included in trade creditors.
The company made sales of £326,577 (2023: £567,767) to and purchases of £2,168 (2023: £759) from G R Potter Contracts Limited, another group company. At the year end £40,874 (2023: £20,264) was included in trade debtors and £26 (2023: £Nil) was included in trade creditors.
Included in amounts owed by group companies is a loan to G R Potter Holdings Limited of £1,438,981 (2023: £932,850). No interest is charged on this loan and the loan is repayable on demand.
Included in amounts owed to group companies is a loan to P & S Hire Limited of £10,500 (2023: £17,848). No interest is charged on this loan and the loan is repayable on demand.
21
Ultimate controlling party
The parent company is G R Potter Holdings Limited by virtue of their ownership of 100% of the issued share capital. Their registered office address is: Village Farm, Catton Moor Lane, Thirsk, North Yorkshire, UK, YO7 4BZ.
The ultimate controlling party is Mr G R Potter by virtue of owning 100% of the issued share capital of G R Potter Holdings Limited.
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