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Registration number: 07657076

South West Tool Hire Company Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 August 2024

 

South West Tool Hire Company Ltd

Contents

Balance Sheet

1 to 2

Notes to the Financial Statements

3 to 9

 

South West Tool Hire Company Ltd

(Registration number: 07657076)
Balance Sheet as at 31 August 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

1,040,957

989,522

Current assets

 

Debtors

5

709,055

693,198

Cash at bank and in hand

 

487,799

479,996

 

1,196,854

1,173,194

Creditors: Amounts falling due within one year

6

(666,769)

(617,700)

Net current assets

 

530,085

555,494

Total assets less current liabilities

 

1,571,042

1,545,016

Creditors: Amounts falling due after more than one year

6

(306,353)

(227,940)

Provisions for liabilities

(214,786)

(222,725)

Net assets

 

1,049,903

1,094,351

Capital and reserves

 

Called up share capital

200

200

Retained earnings

1,049,703

1,094,151

Shareholders' funds

 

1,049,903

1,094,351

 

South West Tool Hire Company Ltd

(Registration number: 07657076)
Balance Sheet as at 31 August 2024

For the financial year ending 31 August 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 22 May 2025 and signed on its behalf by:
 

J M Wring
Director

   
     
 

South West Tool Hire Company Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Wring Group Building Vale Lane
Bedminster
Bristol
BS3 5RU

These financial statements were authorised for issue by the Board on 22 May 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

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

Going concern

At 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.

Revenue recognition

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.

Finance income and costs policy

Interest income and expenses are recognised using the effective interest rate method.

 

South West Tool Hire Company Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Deferred and current taxation assets or liabilities are not discounted.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, fittings and equipment

15% straight line

Motor vehicles

20% reducing balance

Plant and machinery

33% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

South West Tool Hire Company Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

South West Tool Hire Company Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 20 (2023 - 16).

4

Tangible assets

Furniture, fittings and equipment
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 September 2023

118,587

1,462,885

270,772

1,852,244

Additions

25,038

253,737

263,629

542,404

Disposals

-

(169,632)

(102,179)

(271,811)

At 31 August 2024

143,625

1,546,990

432,222

2,122,837

Depreciation

At 1 September 2023

44,512

686,459

131,751

862,722

Charge for the year

14,977

278,006

44,555

337,538

Eliminated on disposal

-

(57,262)

(61,118)

(118,380)

At 31 August 2024

59,489

907,203

115,188

1,081,880

Carrying amount

At 31 August 2024

84,136

639,787

317,034

1,040,957

At 31 August 2023

74,075

776,426

139,021

989,522

 

South West Tool Hire Company Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024

5

Debtors

Note

2024
£

2023
£

Trade debtors

 

509,525

496,593

Amounts owed by related parties

9

186,543

174,799

Other debtors

 

400

11,662

Prepayments

 

4,798

4,430

Accrued income

 

6,100

5,714

Corporation tax receivable

1,689

-

 

709,055

693,198

6

Creditors

Due within one year

Note

2024
£

2023
£

Loans and borrowings

7

169,678

128,644

Trade creditors

 

418,884

417,854

Social security and other taxes

 

55,315

12,564

Other creditors

 

9,239

43,021

Accruals and deferred income

 

13,653

13,928

Corporation tax liability

 

-

1,689

 

666,769

617,700

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

7

306,353

227,940

 

South West Tool Hire Company Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024

7

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Bank borrowings

10,000

10,000

Finance lease liabilities

159,678

118,644

169,678

128,644

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

7,500

17,500

Finance lease liabilities

298,853

210,440

306,353

227,940


Creditors include net obligations under finance lease and hire purchase contracts of £458,531 (2023 - £319,084) which are secured over the assets to which they relate.

8

Financial commitments, guarantees and contingencies

Amounts disclosed in the balance sheet

Included in the balance sheet are pension commitments of £6,710 (2023 - £4,563). The company participates in a defined contribution pension scheme. The pension charge for the year represents contributions payable by the company to the scheme and amounted to £12,941 (2023 - £8,872).

9

Related party transactions

Summary of transactions with other related parties

Other related parties include companies controlled by the directors by virtue of their shareholdings.
 

Income and receivables from related parties

2024

Other related parties
£

Receipt of services

738,530

2023

Other related parties
£

Receipt of services

732,339

 

South West Tool Hire Company Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024

Expenditure with and payables to related parties

2024

Other related parties
£

Rendering of services

107,898

2023

Other related parties
£

Rendering of services

110,836

Management charges payable

17,000

127,836

Loans to related parties

2024

Other related parties
£

Total
£

At start of period

174,799

174,799

Advanced

11,744

11,744

At end of period

186,543

186,543

2023

Other related parties
£

Total
£

At start of period

183,281

183,281

Advanced

8,518

8,518

Repaid

(17,000)

(17,000)

At end of period

174,799

174,799

10

Parent and ultimate parent undertaking

The ultimate controlling parties are J M Wring and D S Wring by virtue of their shareholdings.