Company registration number 02344338 (England and Wales)
TRACTOR HIRE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
TRACTOR HIRE LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
TRACTOR HIRE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
Notes
£
£
FIXED ASSETS
Intangible assets
3
12,159
12,666
Tangible assets
4
3,637,555
3,741,262
Investment property
5
2,040,837
1,767,467
Investments
6
3,002,700
2,927,982
8,693,251
8,449,377
CURRENT ASSETS
Stocks
251,620
392,448
Debtors
7
1,351,940
1,569,070
Cash at bank and in hand
440,794
395,913
2,044,354
2,357,431
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
8
(1,328,186)
(1,720,246)
NET CURRENT ASSETS
716,168
637,185
TOTAL ASSETS LESS CURRENT LIABILITIES
9,409,419
9,086,562
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
9
(1,486,338)
(1,715,519)
PROVISIONS FOR LIABILITIES
(1,653,786)
(1,549,182)
NET ASSETS
6,269,295
5,821,861
CAPITAL AND RESERVES
Called up share capital
101,000
101,000
Non-distributable profits reserve
10
2,114,470
2,058,432
Distributable profit and loss reserves
11
4,053,825
3,662,429
TOTAL EQUITY
6,269,295
5,821,861
TRACTOR HIRE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 2 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 4 June 2025 and are signed on its behalf by:
Mr C E Hopkins
Director
Company registration number 02344338 (England and Wales)
TRACTOR HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
1
ACCOUNTING POLICIES
Company information
Tractor Hire Limited is a private company limited by shares incorporated in England and Wales. The registered office is Little Ty Coch, St Brides Wentloog, Newport, NP10 8SR.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is measured at the fair value of consideration received or receivable and represents amounts receivable for the sale and hire of machinery and labour, stated net of discounts and of Value Added Tax.
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the hire of machinery and labour is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
TRACTOR HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 4 -
Amortisation 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:
Debentures
Straight line over 30 years
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold Property
4% straight line
Long Leasehold Property
4% straight line
Plant and machinery
25% reducing balance
Fixtures and fittings
25% reducing balance
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.
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.
TRACTOR HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 5 -
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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 company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Impairment of fixed assets
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
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.
TRACTOR HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 6 -
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.
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.
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.
TRACTOR HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 7 -
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
As lessee
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.
2
EMPLOYEES
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
3
3
TRACTOR HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
3
INTANGIBLE FIXED ASSETS
Debentures
£
Cost
At 1 January 2024 and 31 December 2024
15,200
Amortisation and impairment
At 1 January 2024
2,534
Amortisation charged for the year
507
At 31 December 2024
3,041
Carrying amount
At 31 December 2024
12,159
At 31 December 2023
12,666
4
TANGIBLE FIXED ASSETS
Freehold Property
Long Leasehold Property
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
£
Cost
At 1 January 2024
503,448
73,900
8,265,426
4,698
8,847,472
Additions
1,234,062
1,234,062
Disposals
(893,673)
(893,673)
Transfer to investment property
(163,590)
(163,590)
At 31 December 2024
339,858
73,900
8,605,815
4,698
9,024,271
Depreciation and impairment
At 1 January 2024
219,410
14,779
4,867,323
4,698
5,106,210
Depreciation charged in the year
13,594
2,957
944,470
961,021
Eliminated in respect of disposals
(680,515)
(680,515)
At 31 December 2024
233,004
17,736
5,131,278
4,698
5,386,716
Carrying amount
At 31 December 2024
106,854
56,164
3,474,537
3,637,555
At 31 December 2023
284,038
59,121
3,398,103
3,741,262
TRACTOR HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
5
INVESTMENT PROPERTY
2024
£
Fair value
At 1 January 2024
1,767,467
Additions
109,780
Transfers
163,590
At 31 December 2024
2,040,837
The fair value of the investment property has been arrived at on the basis of a valuation carried out at the balance sheet date by the directors. The directors consider that the carrying value at 31 December 2024 is not materially different to the open market value at that date.
6
FIXED ASSET INVESTMENTS
2024
2023
£
£
Shares in group undertakings and participating interests
3,002,700
2,927,982
MOVEMENTS IN FIXED ASSET INVESTMENTS
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
2,927,982
Valuation changes
74,718
At 31 December 2024
3,002,700
Carrying amount
At 31 December 2024
3,002,700
At 31 December 2023
2,927,982
TRACTOR HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
7
DEBTORS
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
150,690
168,895
Amounts owed by group undertakings
500,000
400,000
Other debtors
701,250
1,000,175
1,351,940
1,569,070
8
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
2023
£
£
Bank loans
156,376
58,818
Trade creditors
1,948
127,894
Corporation tax
39,665
62,948
Other taxation and social security
35,574
177,681
Other creditors
1,094,623
1,292,905
1,328,186
1,720,246
The above includes secured creditors of £1,236,096 (2023: £1,283,492). These balances are secured over the assets to which they relate.
9
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
2023
£
£
Bank loans and overdrafts
304,896
461,217
Other creditors
1,181,442
1,254,302
1,486,338
1,715,519
The above includes secured creditors of £982,171 (2023: £1,251,352). These balances are secured over the assets to which they relate.
Included within creditors due after one year is an amount of £177,292 (2023: £195,228) in respect of liabilities payable or repayable by instalments which fall due for payment more than five years from the reporting date.
TRACTOR HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
10
NON-DISTRIBUTABLE PROFITS RESERVE
2024
2023
£
£
At the beginning of the year
2,058,432
1,960,231
Non distributable profits in the year
56,038
98,201
At the end of the year
2,114,470
2,058,432
11
PROFIT AND LOSS RESERVES
2024
2023
£
£
At the beginning of the year
3,662,429
3,171,797
Adjusted balance
3,662,429
3,171,797
Profit for the year
447,434
588,833
Current year profits transferred to non-distributable reserve
(56,038)
(98,201)
At the end of the year
4,053,825
3,662,429
12
RELATED PARTY TRANSACTIONS
Included within debtors is a balance of £700,000 (2023 - £1,000,000) due from Ted Hopkins Limited, a company registered in England & Wales.
This company is related by common control.
The company has taken advantage of the exemption provided by Section 33 of Financial Reporting Standard 102 from the requirement to disclose transactions between wholly owned members of the same group.
13
DIRECTORS' TRANSACTIONS
The company's bank overdraft facility is guaranteed personally by a director and by charges over the company properties.
Included within creditors is a balance of £500,000 (2023: £450,000) due to a director. Interest is being charged on this balance at a rate of 6% per annum.
2024-12-312024-01-01falsefalsefalse04 June 2025CCH SoftwareCCH Accounts Production 2025.100The principal activity of the company is that of the renting and leasing of agricultural machinery and equipment.
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