Company registration number 04086465 (England and Wales)
B & W PLANT HIRE AND SALES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
B & W PLANT HIRE AND SALES LIMITED
COMPANY INFORMATION
Director
W Whitwell
Company number
04086465
Registered office
Shorrocks Delf
Brandy House
Brow
Blackburn
Lancashire
BB2 3EY
Auditor
Champion Accountants LLP
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE
B & W PLANT HIRE AND SALES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's 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 - 24
B & W PLANT HIRE AND SALES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The director presents the strategic report for the year ended 31 August 2024.
Review of the business
The past year has been one of significant challenges and transition for the company. Market conditions presented headwinds within the construction sector, alongside political uncertainty which many businesses felt in 2024. Speaking to industry peers, we have certainly not been alone in what has been a tough marketplace.
The company has experienced a change in ownership post year-end and is now back under the control of the Whitwell Family who founded the company. Whilst this change only officially occurred post year end, its implications were felt throughout the financial year under review from both a cost and time/resource perspective.
These factors have contributed to a downturn on overall financial performance and underlying profitability for the period.
Whilst the company reports a post-tax loss of £988,544, it still reports considerable net assets of £15,507,175 as at the balance sheet date. It is also important to note the loss for the year includes substantial non-cash depreciation charges.
In January 2025 the company came back into family ownership, and this presents new opportunities for streamlined decision making, direction and investment.
I look forward to the year ahead with optimism and energy. These are encouraging signs within the overall construction sector, and I feel the company is well positioned financially and operationally to capitalise on this. I also feel we have the infrastructure and financial backing in place to deliver our targets and goals which are being monitored through robust financial controls and budgeting.
Principal risks and uncertainties
The principal risks and uncertainties the company faces, along with how the director seeks to mitigate these risks are explained below:
The company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, price risk, credit risk, liquidity risk and interest rate risk, where relevant. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs and as such, no hedge accounting is applied.
The company keeps abreast of all changing industry standards and regulations through both formal and informal training programs.
Current global forces, such as supply chain pressures and the conflict in Ukraine and the Middle East are reviewed to assess any impact on the company. Whilst there continues to be a limited supply of new equipment, due to the above factors and the recovery from COVID-19 through the world, good relationships are held with suppliers and customers to help manage any delays that are seen.
The cost of living crisis may have an impact on the company due to the residential housing market still being affected by higher interest rates. However, the commercial market remains strong due to committed long term investment being made.
The company manages credit control risk by having in place credit control procedures and reviewing the level of credit given to customers.
Development and performance
The company has continued to invest in new equipment to ensure they retain their market share by supplying the construction industry with modern, efficient and reliable equipment. This has entailed developing trusted relationships with capital partners and asset funders.
I am optimistic about the company's future prospects as noted above.
B & W PLANT HIRE AND SALES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Key performance indicators
The company's key performance indicators are as follows:
Gross profit margin - Year to August 2024: 39.31% (2023 - 41.52%)
(Loss) Profit before dividends - Year to August 2024: (£989k) (2023 - £597k)
Other performance indicators
Finally, I would like to place on record my sincere thanks to the dedicated and talented staff employed throughout the company and I am very grateful to the team for their hard work and loyalty they have shown throughout the period under review and indeed to date.
W Whitwell
Director
7 April 2025
B & W PLANT HIRE AND SALES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
The director presents his annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company continued to be that of plant and machinery hire and sales.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
K Kirk
(Resigned 7 November 2024)
P Fox
(Resigned 1 December 2023)
A Partington
(Resigned 14 January 2025)
W Whitwell
J Flood
(Appointed 18 April 2024 and resigned 14 January 2025)
P Fox
(Appointed 7 November 2024 and resigned 14 January 2025)
M Hierons
(Appointed 1 December 2023 and resigned 18 April 2024)
Auditor
In accordance with the company's articles, a resolution proposing that Champion Accountants LLP be reappointed as auditor of the company will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
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.
On behalf of the board
W Whitwell
Director
7 April 2025
B & W PLANT HIRE AND SALES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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.
B & W PLANT HIRE AND SALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF B & W PLANT HIRE AND SALES LIMITED
- 5 -
Opinion
We have audited the financial statements of B & W Plant Hire and Sales Limited (the 'company') for the year ended 31 August 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:
give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its loss 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 director's 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 director 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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
B & W PLANT HIRE AND SALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF B & W PLANT HIRE AND SALES 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 director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
As part of our planning process:
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, compliance with regulations set out within the vehicle operator licence and waste carrier licence, and compliance with health and safety laws.
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly.
- Using our knowledge of the company, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries in overall accounting records, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to doubtful debt provisions and depreciation methods.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
- Documenting and verifying all significant related party balances and transactions.
B & W PLANT HIRE AND SALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF B & W PLANT HIRE AND SALES LIMITED (CONTINUED)
- 7 -
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing Standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Susan Harris MA ACA (Senior Statutory Auditor)
For and on behalf of Champion Accountants LLP, Statutory Auditor
Chartered Accountants
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE
7 April 2025
B & W PLANT HIRE AND SALES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
15,333,750
18,131,531
Cost of sales
(9,305,301)
(10,603,868)
Gross profit
6,028,449
7,527,663
Administrative expenses
(5,552,920)
(5,524,257)
Other operating income
155,057
Operating profit
4
630,586
2,003,406
Interest payable and similar expenses
7
(1,919,971)
(1,274,454)
(Loss)/profit before taxation
(1,289,385)
728,952
Tax on (loss)/profit
8
300,841
(131,778)
(Loss)/profit for the financial year
(988,544)
597,174
The profit and loss account has been prepared on the basis that all operations are continuing operations.
B & W PLANT HIRE AND SALES LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
30,854,799
37,197,191
Current assets
Stocks
11
116,485
159,610
Debtors
12
10,741,291
11,574,033
Cash at bank and in hand
64,896
57,488
10,922,672
11,791,131
Creditors: amounts falling due within one year
13
(10,930,030)
(12,316,597)
Net current liabilities
(7,358)
(525,466)
Total assets less current liabilities
30,847,441
36,671,725
Creditors: amounts falling due after more than one year
14
(13,267,793)
(17,802,692)
Provisions for liabilities
Deferred tax liability
16
2,072,473
2,373,314
(2,072,473)
(2,373,314)
Net assets
15,507,175
16,495,719
Capital and reserves
Called up share capital
18
500,100
500,100
Profit and loss reserves
15,007,075
15,995,619
Total equity
15,507,175
16,495,719
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 7 April 2025 and are signed on its behalf by:
W Whitwell
Director
Company registration number 04086465 (England and Wales)
B & W PLANT HIRE AND SALES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 September 2022
500,100
15,398,445
15,898,545
Year ended 31 August 2023:
Profit and total comprehensive income
-
597,174
597,174
Balance at 31 August 2023
500,100
15,995,619
16,495,719
Year ended 31 August 2024:
Loss and total comprehensive income
-
(988,544)
(988,544)
Balance at 31 August 2024
500,100
15,007,075
15,507,175
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
1
Accounting policies
Company information
B & W Plant Hire and Sales Limited is a private company limited by shares incorporated in England and Wales. The registered office is Shorrocks Delf, Brandy House, Brow, Blackburn, Lancashire, BB2 3EY.
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 Fox Brothers Group Limited. These consolidated financial statements are available from its registered office, 11 Neptune Court, Hallam Way, Whitehills Business Park, Blackpool, FY4 5LZ..
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues 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.
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.
For plant and vehicle hire, revenue is recognised in line with service delivery, the period of hire, or based upon the progress of the relevant contract as appropriate.
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 12 -
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 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
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:
Plant and equipment
1 - 8 years straight line
Fixtures and fittings
10%/33% straight line
Computers
20% straight line
Motor vehicles
25%/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.
1.6
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
1.7
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.
1.8
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.
1.9
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.
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.
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.10
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.
1.11
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.
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
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. 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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
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.
Useful economic lives of fixed assets
Depreciation is provided to write down the assets to their residual values over the estimated useful lives as set out in the accounting policies. The selection of these estimated lives requires the exercise of management judgement. Useful lives are regularly reviewed and should management's assessment of useful lives change then depreciation charges and carrying values of fixed assets would change accordingly.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Plant hire and sales
15,333,750
18,131,531
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
20,000
20,000
Depreciation of owned tangible fixed assets
371,756
1,177,734
Depreciation of tangible fixed assets held under finance leases
4,792,317
4,152,146
Loss/(profit) on disposal of tangible fixed assets
20,448
(464,386)
Operating lease charges
396,274
392,008
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
2
2
Admin and management
19
20
Drivers and operators
43
51
Total
64
73
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,764,423
2,862,053
Social security costs
306,852
318,135
Pension costs
147,474
149,823
3,218,749
3,330,011
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
217,802
129,677
Company pension contributions to defined contribution schemes
93,366
74,423
311,168
204,100
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
126,495
-
Company pension contributions to defined contribution schemes
49,320
-
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
20,769
Interest on finance leases and hire purchase contracts
1,605,932
1,014,262
Other interest
314,039
239,423
1,919,971
1,274,454
8
Taxation
2024
2023
£
£
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
Taxation
2024
2023
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
(300,841)
(576,075)
Changes in tax rates
707,853
Total deferred tax
(300,841)
131,778
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(1,289,385)
728,952
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(322,346)
182,238
Tax effect of expenses that are not deductible in determining taxable profit
11,087
9,920
Tax effect of utilisation of tax losses not previously recognised
(596,876)
Effect of change in corporation tax rate
707,853
Permanent capital allowances in excess of depreciation
607,294
(768,233)
Taxation (credit)/charge for the year
(300,841)
131,778
9
Intangible fixed assets
Goodwill
£
Cost
At 1 September 2023 and 31 August 2024
500,000
Amortisation and impairment
At 1 September 2023 and 31 August 2024
500,000
Carrying amount
At 31 August 2024
At 31 August 2023
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2023
52,017,700
556,173
83,555
2,464,433
55,121,861
Additions
858,914
2,509
321,893
1,183,316
Disposals
(4,819,798)
(316,282)
(5,136,080)
At 31 August 2024
48,056,816
556,173
86,064
2,470,044
51,169,097
Depreciation and impairment
At 1 September 2023
16,205,736
288,339
62,414
1,368,181
17,924,670
Depreciation charged in the year
4,615,996
39,058
7,783
501,236
5,164,073
Eliminated in respect of disposals
(2,458,370)
(316,075)
(2,774,445)
At 31 August 2024
18,363,362
327,397
70,197
1,553,342
20,314,298
Carrying amount
At 31 August 2024
29,693,454
228,776
15,867
916,702
30,854,799
At 31 August 2023
35,811,964
267,834
21,141
1,096,252
37,197,191
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 equipment
29,384,017
31,687,243
Motor vehicles
874,162
963,047
30,258,179
32,650,290
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
116,485
159,610
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,615,418
4,327,967
Corporation tax recoverable
1,351
Amounts owed by group undertakings
6,686,976
Other debtors
275,369
304,506
Prepayments and accrued income
162,177
144,476
10,741,291
4,776,949
2024
2023
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
6,797,084
Total debtors
10,741,291
11,574,033
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
15
6,632,232
7,325,645
Trade creditors
1,037,995
1,225,981
Amounts owed to group undertakings
150,021
82,232
Taxation and social security
501,977
134,754
Other creditors
2,455,502
3,158,561
Accruals and deferred income
152,303
389,424
10,930,030
12,316,597
Included within other creditors are liabilities totalling £2,421,030 (2023: £3,034,835) secured by fixed and floating charges over the property and undertaking of the company.
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
15
13,267,793
17,802,692
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
6,632,232
8,575,342
In two to five years
17,591,476
21,324,206
24,223,708
29,899,548
Less: future finance charges
(4,323,683)
(4,771,211)
19,900,025
25,128,337
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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Finance lease obligations are secured on the assets to which they relate.
16
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
5,810,841
6,715,392
Tax losses
(3,738,368)
(4,342,078)
2,072,473
2,373,314
2024
Movements in the year:
£
Liability at 1 September 2023
2,373,314
Credit to profit or loss
(300,841)
Liability at 31 August 2024
2,072,473
The deferred tax liability set out above is expected to reverse within 3-7 years and relates to accelerated capital allowances that are expected to mature within the same period.
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
147,474
149,823
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.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500,100
500,100
500,100
500,100
19
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
293,102
362,222
Between two and five years
608,761
1,055,737
In over five years
297,500
901,863
1,715,459
20
Events after the reporting date
On 14 January 2025, the entire issued share capital of Barley Holdings Ltd, a subsidiary undertaking of PRF Group Ltd, was sold to Brandy House Holdings Limited. Brandy House Holdings Limited from this date is now the ultimate parent company of the group. Brandy House Holdings is a company under the control of Mr W Whitwell.
On this date, as part of the wider reorganisation process and change in ownership, the company declared dividends of £6,111,746 to its immediate parent company, B&W Plant Group Ltd, to effectively reassign this amount of debt due from PRF Group Ltd, which is included in year end debtors. B&W Plant Group Ltd subsequently waived this debt due from PRF Group Ltd as part of the reorganisation process.
21
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
21
Related party transactions
(Continued)
- 23 -
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Other related parties
792,242
768,406
158,198
94,818
Rent paid
2024
2023
£
£
Other related parties
234,171
204,438
2024
2023
Amounts due to related parties
£
£
Entities under common control
150,021
82,232
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities under common control
6,686,976
6,797,084
Other related parties
-
175,272
22
Directors' transactions
Dividends totalling £0 (2023 - £0) were paid in the year in respect of shares held by the company's directors.
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Advance
-
114,011
(2,641)
111,370
114,011
(2,641)
111,370
No interest was charged on the amounts advanced to the director. This amount will be repaid within 9 months of the year end.
23
Ultimate controlling party
B & W PLANT HIRE AND SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
23
Ultimate controlling party
(Continued)
- 24 -
On 9 December 2022, the company's ultimate parent company became PRF Group Limited (formerly known as Fox Brothers Group Limited), a company registered in England and Wales. Prior to this date, the company did not have an ultimate parent company.
PRF Group Limited is the parent of the smallest and largest group for which consolidated accounts are drawn up, of which this company is a member. The registered office of PRF Group Limited is 11 Neptune Court, Hallam Way, Whitehills Business Park, Blackpool, FY4 5LZ.
At the year end, the ultimate controlling party was Mr P Fox, director and majority shareholder. Prior to this date and now at the signing date, Mr W Whitwell was the ultimate controlling party.
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