Company registration number 14468957 (England and Wales)
TURNERS (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
TURNERS (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mrs SE Turner
Mr SG Turner
Mr T Turner
Company number
14468957
Registered office
Barlby Junction
Barlby
Selby
North Yorkshire
YO8 5JE
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
TURNERS (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 34
TURNERS (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
Review of the business
The group and company was formed and incorporated as part of a reorganisation in November 2022, and trading continued as a motor vehicle repair facility.
The business delivered another year of profitability and growth. We continued to execute our strategy of organic growth in our 5 existing sites while also opening a brand new, state of the art 20,000sq ft facility near Ripon.
Investment in our highly skilled workforce, technology and top-class facilities has allowed us grow despite recent economic uncertainties, strengthening relationships and adding to our customer base in the UK Insurance market.
Industry Overview
The automotive repair industry experienced dynamic shifts in 2024, shaped by:
Increased vehicle complexity: With the rise of electric vehicles (EVs) and advanced driver-assistance systems (ADAS), repair services required specialised skills and equipment.
Sustainability pressures: customers and regulators emphasised eco-friendly repair practices.
Economic uncertainty: inflationary pressures and supply chain constraints persisted, challenging cost management and pricing strategies.
The business has responded to these shifts by investing in the training and equipment required for EV repairs and advanced diagnostic development. All our 6 sites have continued to be PAS2060 Carbon Neutral, and we are continually looking at ways to reduce our carbon footprint. We also have increased our use of green parts and follow a repair over replace methodology.
Principal risks and uncertainties
As part of our ongoing business strategy, we continually look at identifying any risks to the ongoing success of the company.
Market Risk
The main risk facing the company is that uncertainty in the UK economy could adversely affect the performance of the business. The company has a broad customer base within the UK Insurance industry and excellent customer service which reduces exposure to temporary downturns in trade.
Staff Risk
The company is also exposed to risks relating to retaining key staff and recruitment in the face of a competitive labour market. This is mitigated through incentivising pay structures and a strong supportive culture which has developed over decades of family ownership. The company is committed to developing the next generation of workers though our apprenticeship programme. This ensures the company has a balanced mix of contemporary practices and proven industry experience.
Global events
The current war in Ukraine continues to lead to volatility in the supply of parts and the energy market, although this seems to have stabilised recently.
TURNERS (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Key performance indicators
The key performance indicators the directors believe are important and most effectively show the performance of the group and company are: -
Other performance indicators
2024 2023
Turnover £19,694,317 £16,415,959
Operating profit £1,518,768 £1,382,821
Operating profit margin 7.7% 8.4%
Our KPI’s are generally moving in a positive direction and are expected to continue to do so over the next financial year.
The adverse movement in Operating Profit margin is due to the period of time it took the new Ripon site to become fully operational and profitable.
The net assets of the Group remained strong at £6,548,859 at the end of 2024 compared with £6,298,589 in 2023.
Despite the current economic and environmental uncertainties, the long term future outlook remains encouraging and the Directors expect that the financial results for 2025 will continue to show a healthy level of profitability. The Group is strongly positioned at the year end and the Directors seek to build on its strengths with business development activities and if conditions are right, further expansion.
Given the company’s latest results, recent developments, continued progress and present position, the Directors look to the future with confidence.
Mr T Turner
Director
30 April 2025
TURNERS (HOLDINGS) 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 and group is that of motor vehicle repairs.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £375,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs SE Turner
Mr SG Turner
Mr T Turner
Future developments
The directors expect the general activity of the company to remain broadly consistent in the forthcoming year. Further strong growth is expected as our Ripon site continues to shift towards maturity and we expand into the North-East through the opening of our next 16,000sq ft site at Chester-le-Street, County Durham in January 2025.
Auditor
Azets Audit Services Limited were appointed as auditor to the group 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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mr T Turner
Director
30 April 2025
TURNERS (HOLDINGS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
TURNERS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TURNERS (HOLDINGS) LIMITED
- 5 -
Opinion
We have audited the financial statements of Turners (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group's and the parent company's affairs as at 31 October 2024 and of the group's 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 group and parent 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 group's and parent 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.
TURNERS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TURNERS (HOLDINGS) LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 parent 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 parent 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.
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.
TURNERS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TURNERS (HOLDINGS) LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias;
Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Chris Woodroffe
Senior Statutory Auditor
For and on behalf of Azets Audit Services Limited
1 May 2025
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
TURNERS (HOLDINGS) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
Year
Period
ended
ended
31 October
31 October
2024
2023
as restated
Notes
£
£
Turnover
3
19,694,317
16,415,959
Cost of sales
(14,815,620)
(12,173,952)
Gross profit
4,878,697
4,242,007
Administrative expenses
(3,367,126)
(2,867,903)
Other operating income
7,197
8,717
Operating profit
4
1,518,768
1,382,821
Interest receivable and similar income
7
371
Interest payable and similar expenses
8
(366,327)
(281,047)
Profit before taxation
1,152,812
1,101,774
Tax on profit
9
(527,542)
(428,605)
Profit for the financial year
625,270
673,169
Profit for the financial year is all attributable to the owners of the parent company.
TURNERS (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
Year
Period
ended
ended
31 October
31 October
2024
2023
as restated
£
£
Profit for the year
625,270
673,169
Other comprehensive income
-
-
Total comprehensive income for the year
625,270
673,169
Total comprehensive income for the year is all attributable to the owners of the parent company.
TURNERS (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
11
5,894,276
6,627,243
Tangible assets
12
6,015,939
5,453,683
11,910,215
12,080,926
Current assets
Stocks
15
530,602
903,790
Debtors
16
1,773,285
1,210,552
Cash at bank and in hand
2,523,041
2,600,311
4,826,928
4,714,653
Creditors: amounts falling due within one year
17
(6,539,670)
(5,882,693)
Net current liabilities
(1,712,742)
(1,168,040)
Total assets less current liabilities
10,197,473
10,912,886
Creditors: amounts falling due after more than one year
18
(3,164,777)
(4,257,981)
Provisions for liabilities
Deferred tax liability
21
483,837
356,316
(483,837)
(356,316)
Net assets
6,548,859
6,298,589
Capital and reserves
Called up share capital
24
420
420
Other reserves
6,000,000
6,000,000
Profit and loss reserves
548,439
298,169
Total equity
6,548,859
6,298,589
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
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:
30 April 2025
Mr T Turner
Director
Company registration number 14468957 (England and Wales)
TURNERS (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,373,573
3,443,763
Investments
13
10,557,159
10,557,159
13,930,732
14,000,922
Current assets
Debtors
16
53,506
40,163
Cash at bank and in hand
31,796
71,794
85,302
111,957
Creditors: amounts falling due within one year
17
(3,715,299)
(4,428,512)
Net current liabilities
(3,629,997)
(4,316,555)
Total assets less current liabilities
10,300,735
9,684,367
Creditors: amounts falling due after more than one year
18
(2,247,222)
(3,641,240)
Net assets
8,053,513
6,043,127
Capital and reserves
Called up share capital
24
420
420
Other reserves
6,000,000
6,000,000
Profit and loss reserves
2,053,093
42,707
Total equity
8,053,513
6,043,127
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,385,386 (2023 - £417,707 profit).
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:
30 April 2025
Mr T Turner
Director
Company registration number 14468957 (England and Wales)
TURNERS (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
Share capital
Other Reserves
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 October 2023:
Balance at 8 November 2022
-
-
Period ended 31 October 2023:
Profit and total comprehensive income
-
-
673,169
673,169
Issue of share capital
24
420
-
-
420
Dividends
10
-
-
(375,000)
(375,000)
Transfers
-
6,000,000
-
6,000,000
Balance at 31 October 2023
420
6,000,000
298,169
6,298,589
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
625,270
625,270
Dividends
10
-
-
(375,000)
(375,000)
Balance at 31 October 2024
420
6,000,000
548,439
6,548,859
TURNERS (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
Share capital
Other Reserves
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 October 2023:
Balance at 8 November 2022
-
-
Period ended 31 October 2023:
Profit and total comprehensive income for the period
-
-
417,707
417,707
Issue of share capital
24
420
-
-
420
Dividends
10
-
-
(375,000)
(375,000)
Transfers
-
6,000,000
-
6,000,000
Balance at 31 October 2023
420
6,000,000
42,707
6,043,127
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
2,385,386
2,385,386
Dividends
10
-
-
(375,000)
(375,000)
Balance at 31 October 2024
420
6,000,000
2,053,093
8,053,513
TURNERS (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
4,025,926
4,525,627
Interest paid
(366,327)
(281,047)
Income taxes paid
(403,371)
(282,046)
Net cash inflow from operating activities
3,256,228
3,962,534
Investing activities
Purchase of business
-
436,263
Purchase of tangible fixed assets
(1,060,232)
(3,074,058)
Proceeds from disposal of tangible fixed assets
83,469
58,158
Interest received
371
Net cash used in investing activities
(976,392)
(2,579,637)
Financing activities
Proceeds from issue of shares
-
420
Proceeds from borrowings
-
463,719
Repayment of borrowings
(1,864,271)
(237,583)
Proceeds from new bank loans
-
2,500,000
Repayment of bank loans
(97,624)
(1,105,644)
Payment of finance leases obligations
(20,211)
(28,498)
Dividends paid to equity shareholders
(375,000)
(375,000)
Net cash (used in)/generated from financing activities
(2,357,106)
1,217,414
Net (decrease)/increase in cash and cash equivalents
(77,270)
2,600,311
Cash and cash equivalents at beginning of year
2,600,311
Cash and cash equivalents at end of year
2,523,041
2,600,311
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
1
Accounting policies
Company information
Turners (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .
The group consists of Turners (Holdings) Limited and all of its subsidiaries.
1.1
Reporting period
These accounts in the prior year are drawn up from 8 November 2022 to 31 October 2023, which represents a period of 358 days to the groups desired year end. Thus, the comparative amounts may not be entirely comparable.
1.2
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.4
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Turners (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 October 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.5
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Specifically, the directors have considered the impact of any supply chain disruptions, labour shortages, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of any disruption, the directors are confident that they have in place plans to deal with any implications that may arise.
The company continues to trade in line with expectations and has continued to generate profits and operating cash flows. Given this position, the Directors have options available to them in order to preserve cash flow and allow the business to settle its liabilities as they fall due, and with their continued support which has been obtained, the Directors therefore continue to adopt the going concern basis.
1.6
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
1.7
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business 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.
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
1.8
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:
Freehold land and buildings
2% - 10% straight line
Leasehold land and buildings
4% - 10% straight line
Plant and equipment
10% - 20% straight line
Motor vehicles
20% 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 recognised in the profit and loss account.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
1.10
Impairment of fixed assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
1.11
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.
1.12
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.
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 19 -
1.13
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 group 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 group after deducting all of its liabilities.
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 20 -
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 group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group 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 group.
1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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 leased asset are consumed.
1.19
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Accident Repair
19,694,317
16,415,959
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
19,694,317
16,415,959
2024
2023
£
£
Other revenue
Interest income
371
-
Grants received
7,197
7,197
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(7,197)
(7,197)
Depreciation of owned tangible fixed assets
548,921
391,236
Depreciation of tangible fixed assets held under finance leases
11,949
28,609
Profit on disposal of tangible fixed assets
(14,473)
(38,656)
Amortisation of intangible assets
732,967
702,428
Operating lease charges
361,188
335,158
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,500
5,000
Audit of the financial statements of the company's subsidiaries
22,900
21,800
32,400
26,800
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Direct
91
82
-
-
Admin
23
20
-
-
Total
114
102
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,422,367
4,048,616
Social security costs
594,566
421,323
-
-
Pension costs
106,696
110,074
6,123,629
4,580,013
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
371
-
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
176,026
119,209
Other interest on financial liabilities
181,131
158,973
357,157
278,182
Other finance costs:
Interest on finance leases and hire purchase contracts
9,242
3,249
Other interest
(72)
(384)
Total finance costs
366,327
281,047
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
420,794
349,662
Adjustments in respect of prior periods
(7,430)
353
Total current tax
413,364
350,015
Deferred tax
Origination and reversal of timing differences
114,178
78,590
Total tax charge
527,542
428,605
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,152,812
1,101,774
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
288,203
248,120
Tax effect of expenses that are not deductible in determining taxable profit
14,608
23,677
Tax effect of income not taxable in determining taxable profit
(86)
Adjustments in respect of prior years
(7,430)
353
Effect of change in corporation tax rate
19,453
7,905
Other permanent differences
183,242
161,009
Deferred tax adjustments in respect of prior years
8,250
(60)
Fixed asset differences
21,216
(12,313)
Taxation charge
527,542
428,605
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
375,000
375,000
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
7,329,671
Amortisation and impairment
At 1 November 2023
702,428
Amortisation charged for the year
732,967
At 31 October 2024
1,435,395
Carrying amount
At 31 October 2024
5,894,276
At 31 October 2023
6,627,243
The company had no intangible fixed assets at 31 October 2024 or 31 October 2023.
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 26 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2023
3,485,507
254,146
1,462,633
516,521
5,718,807
Additions
133,383
659,940
398,799
1,192,122
Disposals
(870)
(26,484)
(3,681)
(134,294)
(165,329)
At 31 October 2024
3,484,637
361,045
2,118,892
781,026
6,745,600
Depreciation and impairment
At 1 November 2023
48,560
25,128
218,957
(27,521)
265,124
Depreciation charged in the year
69,320
33,182
303,500
154,868
560,870
Eliminated in respect of disposals
(13,242)
(565)
(82,526)
(96,333)
At 31 October 2024
117,880
45,068
521,892
44,821
729,661
Carrying amount
At 31 October 2024
3,366,757
315,977
1,597,000
736,205
6,015,939
At 31 October 2023
3,436,947
229,018
1,243,676
544,042
5,453,683
Company
Freehold land and buildings
£
Cost
At 1 November 2023
3,466,875
Disposals
(870)
At 31 October 2024
3,466,005
Depreciation and impairment
At 1 November 2023
23,112
Depreciation charged in the year
69,320
At 31 October 2024
92,432
Carrying amount
At 31 October 2024
3,373,573
At 31 October 2023
3,443,763
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
12
Tangible fixed assets
(Continued)
- 27 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
119,941
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
10,557,159
10,557,159
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023 and 31 October 2024
10,557,159
Carrying amount
At 31 October 2024
10,557,159
At 31 October 2023
10,557,159
14
Subsidiaries
Details of the company's subsidiaries at 31 October 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Turners Accident Repair Limited
United Kingdom
Ordinary, A, B, C
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
530,602
903,790
-
-
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 28 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,524,951
1,002,009
Other debtors
45,085
48,522
420
420
Prepayments and accrued income
150,163
120,278
1,720,199
1,170,809
420
420
Deferred tax asset (note 21)
53,086
39,743
53,086
39,743
1,773,285
1,210,552
53,506
40,163
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
107,138
94,077
107,138
94,077
Obligations under finance leases
20
16,418
12,559
Other borrowings
19
373,121
1,154,250
916,667
Trade creditors
1,826,655
1,545,802
18
Amounts owed to group undertakings
845,107
1,471,195
Corporation tax payable
170,241
160,248
4,703
Other taxation and social security
736,243
501,819
12,894
12,900
Government grants
22
7,197
7,197
Other creditors
2,329,665
1,703,530
2,329,665
1,703,530
Accruals and deferred income
972,992
703,211
415,774
230,143
6,539,670
5,882,693
3,715,299
4,428,512
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
2,247,222
2,357,907
2,247,222
2,357,907
Obligations under finance leases
20
107,820
Other borrowings
19
783,149
1,866,291
1,283,333
Government grants
22
26,586
33,783
3,164,777
4,257,981
2,247,222
3,641,240
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 29 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,354,360
2,451,984
2,354,360
2,451,984
Other loans
1,156,270
3,020,541
2,200,000
3,510,630
5,472,525
2,354,360
4,651,984
Payable within one year
480,259
1,248,327
107,138
1,010,744
Payable after one year
3,030,371
4,224,198
2,247,222
3,641,240
The company has one bank loan in place, which was taken out during the period. Interest is charged at 2.1% per annum over Base Rate. The loan is repayable over 15 years in monthly instalments of £21,500, with the final instalment to be paid in June 2038.
The long-term loan is secured by way of a legal charge over the property and assets at Unit 3, Gilhusum Road, Gildersome, Leeds, a legal charge over the property at Unit G, Vector 31, Network Centre, Walesworth Way, Wales, Sheffield, a fixed and floating charge over the company's assets, and a cross guarantee of £2,500,000 secured against the assets of Turners Accident Repair Limited.
Included within other loans is £nil (2023: £2,200,000) in secured guaranteed loan stock. The loan stock was issued on 16 November 2022 with a final maturity date of 6 years from the date of issue. Interest is charged at 3.5% per annum over the Base Rate with a minimum rate of 3.5%. Security is held by way of a fixed and floating charge over the property, assets and undertaking of the business. The loan stock was fully repaid in August 2024.
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
16,418
12,559
In two to five years
107,820
124,238
12,559
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 30 -
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
486,255
358,615
(11,534)
-
Tax losses
(2,418)
(2,299)
64,620
39,743
483,837
356,316
53,086
39,743
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
-
-
(11,534)
-
Tax losses
-
-
64,620
39,743
-
-
53,086
39,743
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(Asset) at 1 November 2023
316,573
(39,743)
Charge/(credit) to profit or loss
114,178
(13,343)
Liability/(Asset) at 31 October 2024
430,751
(53,086)
The deferred tax liability set out above is expected to reverse within 12 months and £326,096 relates to accelerated capital allowances that are expected to mature within the same period.
22
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
33,783
40,980
-
-
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
22
Government grants
(Continued)
- 31 -
Deferred income is included in the financial statements as follows:
Current liabilities
7,197
7,197
Non-current liabilities
26,586
33,783
33,783
40,980
-
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
106,696
110,074
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. At the balance sheet date, unpaid contributions of £22,230 (2023: £18,532) were due to the fund. They are included in other taxation and social security.
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' of £1 each
48
48
48
48
Ordinary 'B' of £1 each
42
42
42
42
Ordinary 'C' of £1 each
30
30
30
30
Ordinary 'D' of £1 each
200
200
200
200
Ordinary 'E' of £1 each
100
100
100
100
420
420
420
420
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
446,014
429,189
-
-
Between two and five years
1,544,737
1,205,581
-
-
In over five years
1,345,927
628,571
-
-
3,336,678
2,263,341
-
-
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 32 -
26
Related party transactions
Remuneration of key management personnel
During the period, the directors are considered to be the key management personnel.The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
184,556
123,898
Other information
The group paid rent, on normal commercial terms, of £68,300 (2023: £68,300) to pension schemes, in which the directors are beneficiaries and trustees.
Included in other debtors is a loan due from the directors of £24,500 (2023: £24,500). The loan is interest free and repayable on demand.
Included in other creditors is a loan due from the directors of £78,000 (2023: £nil). The loan is interest free and repayable on demand.
Included in creditors is a loan due to two directors of £2,407,665 (2023: £1,703,530). Interest has been charged on this loan at the Bank of England base rate and included in accruals is interest on the loan of £36,427 (2023: £nil).
Included in creditors are loan notes due to a director of £nil (2023: £2,200,000) and further details have been disclosed in note 18. Included in accruals is interest on loan of £303,677 (2023: £158,973).
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
625,270
673,169
Adjustments for:
Taxation charged
527,542
428,605
Finance costs
366,327
281,047
Investment income
(371)
Gain on disposal of tangible fixed assets
(14,473)
(38,656)
Amortisation and impairment of intangible assets
732,967
702,428
Depreciation and impairment of tangible fixed assets
560,870
419,845
Movements in working capital:
Decrease/(increase) in stocks
373,188
(254,377)
Increase in debtors
(549,390)
(108,793)
Increase in creditors
1,411,193
2,429,557
Decrease in deferred income
(7,197)
(7,198)
Cash generated from operations
4,025,926
4,525,627
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 33 -
28
Analysis of changes in net debt - group
1 November 2023
Cash flows
New finance leases
31 October 2024
£
£
£
£
Cash at bank and in hand
2,600,311
(77,270)
-
2,523,041
Borrowings excluding overdrafts
(5,472,525)
1,961,895
-
(3,510,630)
Obligations under finance leases
(12,559)
20,211
(131,890)
(124,238)
(2,884,773)
1,904,836
(131,890)
(1,111,827)
29
Prior period adjustment
Changes to the balance sheet - group
As previously reported
Adjustment
As restated at 31 Oct 2023
£
£
£
Fixed assets
Goodwill
4,366,827
2,260,416
6,627,243
Capital and reserves
Other reserves
3,500,000
2,500,000
6,000,000
Profit and loss reserves
537,753
(239,584)
298,169
Total equity
4,038,173
2,260,416
6,298,589
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 31 October 2023
£
£
£
Administrative expenses
(2,628,319)
(239,584)
(2,867,903)
In preparing the current year accounts, it was noted that the transaction in prior year regarding the acquisition of Turners Accident Repair Limited was understated by £2,500,000. This resulted in an increase to the value of the investment and other reserves at holding company only level by £2,500,000. At Group level, the resulting impact was an increase to goodwill on acquisition of £2,500,000 and subsequently an increase to amortisation of goodwill charged in the period of £239,584.
TURNERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
29
Prior period adjustment
(Continued)
- 34 -
Reconciliation of changes in equity - company
1 November
31 October
2022
2023
£
£
Adjustments to prior year
Other reserves
-
2,500,000
Equity as previously reported
-
3,543,127
Equity as adjusted
-
6,043,127
Analysis of the effect upon equity
Other reserves
-
2,500,000
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
417,707
Profit as adjusted
417,707
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