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REGISTERED NUMBER: 04890756 (England and Wales)













Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 May 2024

for

M. J. Hickey Plant Hire & Contracts
Limited

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)






Contents of the Consolidated Financial Statements
for the Year Ended 31 May 2024




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Income Statement 10

Consolidated Other Comprehensive Income 11

Consolidated Balance Sheet 12

Company Balance Sheet 14

Consolidated Statement of Changes in Equity 15

Company Statement of Changes in Equity 17

Consolidated Cash Flow Statement 18

Notes to the Consolidated Cash Flow Statement 19

Notes to the Consolidated Financial Statements 21


M. J. Hickey Plant Hire & Contracts
Limited

Company Information
for the Year Ended 31 May 2024







DIRECTORS: T A Hickey
M Proud



REGISTERED OFFICE: Linton Industrial Estate, Linton
Morpeth
Northumberland
NE61 5SD



REGISTERED NUMBER: 04890756 (England and Wales)



SENIOR STATUTORY AUDITOR: Michael Moran



AUDITORS: Robson Laidler Accountants Limited t/a Tindle's
Chartered Accountants and Statutory Auditors
Medway House
Fudan Way
Teesdale Business Park
Stockton on Tees
TS17 6EN

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Group Strategic Report
for the Year Ended 31 May 2024

The directors present their strategic report of the company and the group for the year ended 31 May 2024.

REVIEW OF BUSINESS
The M.J. Hickey Plant Hire & Contracts Limited Group is a group of companies that operates mainly in the North East of England, providing a range of services including equipment hire, tipping, earthworks and freight services.

In light of the size and straightforward nature of the group it is not considered that non-financial key performance indicators are of particular relevance for these consolidated financial statements. In terms of overview key financial indicators:
- consolidated turnover for the year to 31 May 2024 £19,767,152 [2023 [as restated] - £22,467,394];
- consolidated profit/(loss) for the year to 31 May 2024 £5,000,247 [2023 [as restated] - £(704,494)];
- consolidated total comprehensive income for the year to 31 May 2024 £5,000,247 [2023 [as restated] - £4,755,639].

If profits on the disposal of investment property, gains (and deferred tax) on the revaluation of investment property and gains (and deferred tax) on the revaluation of freehold property are excluded then the adjusted total consolidated comprehensive income for the year to 31 May 2024 was £(2,134,128) [2023 [as restated] - £(1,202,708)].

Consolidated EBITDA for the year to 31 May 2024 was £644,845 [2023 [as restated] - £2,103,881] calculated from operating profit and adding back depreciation, amortisation and net losses on the disposal of tangible fixed assets.

As regards revenues the fall in aggregate turnover from 2023 to 2024 mainly reflects reduced activity levels for the earthworks business line, which generated income of circa £4,650,000 in 2024 against circa £10,560,000 in 2023.

Revenues from the equipment hire business line increased from circa £6,540,000 in 2023 to circa £7,840,000 in 2024 with revenues from the tipping and freight services business lines rising from circa £4,310,000 in 2023 to circa £5,940,000 in 2024.

Other revenues increased from circa £1,060,000 in 2023 to circa £1,330,000 in 2024.

The group invested circa £6,740,000 in tangible fixed assets during the year (circa £370,000 net after allowing for the book value of asset disposals) to support and develop its service offering.

PRINCIPAL RISKS AND UNCERTAINTIES
The group reviews potential risks and uncertainties within the key industry sectors in which it operates with the Directors ensuring that appropriate policies and procedures are in place to mitigate against identified risks.

As regards the economy the business of the group continues to be exposed to wider economic conditions via the impact of the same on factors including customer sentiment and activity levels (in particular the earthworks business line where the projects undertaken can reflect major undertakings for the customer). To mitigate this risk the group regularly reviews its service offerings and customer service levels to ensure they meet the needs of our customers.

The group is also exposed to commodity price risk, in particular as regards movements in fuel prices given the nature of the business. The group seeks to mitigate this risk by monitoring the unit costs incurred for fuel purchases and comparing against alternative suppliers.

See also the Future Developments section of the Report of the Directors and the narrative in the Going Concern section of note 2 to the financial statements regarding going concern.


M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Group Strategic Report
for the Year Ended 31 May 2024

The group's activities also expose it to a number of financial risks including the following:

Credit Risk
The group considers that the principal relevant financial assets here are trade debtors. Group policies aim to minimise credit losses on trade debtors by, for example, granting credit terms to customers who satisfy credit worthiness procedures or demonstrate a suitable payment history. The group assesses the recoverability of trade debtors based on an assessment of the individual counterparties and considers that the carrying value of the assets presents their recoverable amount.

Interest Risk
The group's main relevant financial liabilities are considered to include hire purchase and finance lease contracts and bank and other loans along with invoice finance and bank overdraft facilities.

As regards hire purchase and finance lease contracts and some bank and other loans interest rate risk is considered to be mitigated during the lifespan of each instrument by the fact that some of these financial liabilities exhibit fixed interest rates (see the loans note to the accounts for further information).

The group is however exposed to interest rate risk when new or replacement debt obligations are entered into as the fixed interest rates that are obtained from third party lenders are impacted by wider market conditions.

As regards invoice finance and bank overdraft facilities and the remaining bank and other loans these include finance charges that are calculated on the basis of margins over the relevant bank base rate. The group aims to manage interest rate risk on such debt by managing the funds drawndown.

Liquidity and Cashflow Risk
As regards liquidity risk this is the risk that the group encounters difficulty in meeting obligations associated with financial liabilities. The group aims to mitigate liquidity risk, and ensure that sufficient funds are available for ongoing operations and future developments, by managing operational cash generation as well as via the use of asset finance arrangements, invoice finance facilities and overdraft and loan facilities.

As regards cashflow risk it is noted that forecasts are prepared with forecast headroom and developments being monitored by management on an ongoing basis.

ON BEHALF OF THE BOARD:





T A Hickey - Director


12 June 2025

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Report of the Directors
for the Year Ended 31 May 2024

The directors present their report with the financial statements of the company and the group for the year ended 31 May 2024.

DIVIDENDS
An interim dividend of £2,013.86 per share was paid on 28 February 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 May 2024 will be £ 201,386 .

FUTURE DEVELOPMENTS
As regards day-to-day operations the management of the group continue to review opportunities to develop the service offering of the business and continue to assess and respond to the impacts of issues arising on the operations of the business.

Further information regarding future developments, including in connection with:
- the potential sale of substantially all of the investment property element of the Lynefield Park site that is held by
M.J. Hickey Plant Hire & Contracts Limited;
- the initial discussions that have been held with HM Revenue and Customs regarding arranging a time to pay
arrangement for certain liabilities of various group companies; and
- comments regarding budgets and cashflow forecasts in the context of post year end developments and
operational plans

may be found in the Future Developments section of the Going Concern narrative in note 2 to the consolidated financial statements.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report.

T A Hickey
M Proud

DISCLOSURE IN THE STRATEGIC REPORT
The group has chosen, in accordance with Companies Act 2006 s414C(11), to set out in the Group Strategic Report certain information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Report of the Director.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Report of the Directors
for the Year Ended 31 May 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:





T A Hickey - Director


12 June 2025

Report of the Independent Auditors to the Members of
M. J. Hickey Plant Hire & Contracts
Limited

Opinion
We have audited the financial statements of M. J. Hickey Plant Hire & Contracts Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 of the parent company affairs as at 31 May 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.

Basis for opinion
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.

Material uncertainty related to going concern
We draw attention to note 2 in the consolidated financial statements, which - in the Going Concern section - indicates that the company and group exhibited net current liability positions of £(3,301,656) and £(5,044,600) respectively at 31 May 2024 albeit with net assets positions of £13,083,546 and £12,227,468 respectively.

It is noted that the Future Developments subsection of the Going Concern narrative refers to a number of matters that the directors consider are relevant regarding the future of the company and group including:
- a potential property disposal transaction which has now entered exclusivity;
- initial discussions having been entered into between the group and HM Revenue and Customs regarding a time to pay arrangement for certain liabilities;
- post year end performance, activity levels and operational plans;
- the positions showing in the company and group budgets and cashflow forecasts and - if outcomes differ from those in the budgets and cashflow forecasts - the fact that the company and group may require some additional funding during the year ending 31 May 2026 over and above the headroom on existing finance facilities (which the directors expect will continue for the foreseeable future on unchanged terms); and
- the fact that the directors are confident that additional funding will be accessible as required from a number of options that are under consideration.

As stated in note 2, these events or conditions, along with the other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company's and/or group's ability to continue as a going concern.

Our opinion is not modified in respect of this matter.

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.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Report of the Independent Auditors to the Members of
M. J. Hickey Plant Hire & Contracts
Limited


Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on pages four and five, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
M. J. Hickey Plant Hire & Contracts
Limited


Auditors' 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 a Report of the Auditors 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:

- we identified the key laws and regulations applicable to the group through discussions with the management and from our knowledge and experience of the sector in which the group operates;
- we focussed on laws and regulations where it was considered that non-compliance could have a direct and material impact on the financial statements or the operations of the group, which included the Companies Act 2006 and FRS 102 along with taxation legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and as part of our procedures on related financial statement items, including inspecting applicable documentation;
- we assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management regarding their knowledge of actual, suspected and alleged fraud and by assessing other factors including, but not limited to, the role of accounting estimates, internal control systems, management override and journal entries.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

Audit procedures performed by the engagement team then included the following (using a sample basis as applicable):

- considering issues regarding revenue recognition;
- testing of journal entries and complex transactions;
- considering the rationale behind identified significant or unusual transactions; and
- assessing whether judgements and assumptions made in the calculation of accounting estimates appeared reasonable.

It is noted that, in light 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. It is considered that this risk increases the more that compliance with a law or regulation is removed from the events and transactions that are reflected in the financial statements as we will be less likely to become aware of instances of non-compliance. It is also noted that the risk is greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
M. J. Hickey Plant Hire & Contracts
Limited


Use of our 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 a Report of the Auditors 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.




Michael Moran (Senior Statutory Auditor)
for and on behalf of Robson Laidler Accountants Limited t/a Tindle's
Chartered Accountants and Statutory Auditors
Medway House
Fudan Way
Teesdale Business Park
Stockton on Tees
TS17 6EN

12 June 2025

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Consolidated Income Statement
for the Year Ended 31 May 2024

2024 2023
as restated
Notes £    £   

TURNOVER 3 19,767,152 22,467,394

Cost of sales (18,536,711 ) (20,520,954 )
GROSS PROFIT 1,230,441 1,946,440

Distribution costs - (1,975 )
Administrative expenses (2,646,877 ) (1,715,430 )
(1,416,436 ) 229,035

Other operating income 4 25,325 43,285
OPERATING (LOSS)/PROFIT 6 (1,391,111 ) 272,320

Profit/loss on sale of investment property 7 241,500 45,000
(1,149,611 ) 317,320

Interest receivable and similar income 8 6,156 51
(1,143,455 ) 317,371
Gain/loss on revaluation of investment
property

9,190,500

604,285
8,047,045 921,656

Interest payable and similar expenses 9 (1,281,494 ) (1,418,314 )
PROFIT/(LOSS) BEFORE TAXATION 6,765,551 (496,658 )

Tax on profit/(loss) 10 (1,765,304 ) (207,836 )
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

5,000,247

(704,494

)
Profit/(loss) attributable to:
Owners of the parent 5,077,674 (636,525 )
Non-controlling interests (77,427 ) (67,969 )
5,000,247 (704,494 )

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Consolidated Other Comprehensive Income
for the Year Ended 31 May 2024

2024 2023
as restated
Notes £    £   

PROFIT/(LOSS) FOR THE YEAR 5,000,247 (704,494 )


OTHER COMPREHENSIVE INCOME
Revaluation of freehold property - 7,245,020
Income tax relating to other comprehensive
income

-

(1,784,887

)
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

-

5,460,133
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

5,000,247

4,755,639
Note
Prior year adjustment 13 20,055 (61,640 )
TOTAL COMPREHENSIVE INCOME
SINCE LAST ANNUAL REPORT

5,020,302

4,693,999

Total comprehensive income attributable to:
Owners of the parent 5,097,729 4,761,968
Non-controlling interests (77,427 ) (67,969 )
5,020,302 4,693,999

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Consolidated Balance Sheet
31 May 2024

2024 2023
as restated
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 14 350,711 408,716
Tangible assets 15 19,079,939 20,994,776
Investments 16
Interest in associate 1 -
Investment property 17 18,581,000 10,325,000
38,011,651 31,728,492

CURRENT ASSETS
Stocks 18 187,145 174,348
Debtors 19 4,854,410 5,143,710
Cash at bank and in hand 1,431,391 755,273
6,472,946 6,073,331
CREDITORS
Amounts falling due within one year 20 11,517,546 10,903,957
NET CURRENT LIABILITIES (5,044,600 ) (4,830,626 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

32,967,051

26,897,866

CREDITORS
Amounts falling due after more than one
year

21

(15,809,604

)

(16,477,118

)

PROVISIONS FOR LIABILITIES 26 (4,929,979 ) (2,992,140 )
NET ASSETS 12,227,468 7,428,608

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Consolidated Balance Sheet - continued
31 May 2024

2024 2023
as restated
Notes £    £    £    £   
CAPITAL AND RESERVES
Called up share capital 27 100 100
Revaluation reserve 28 4,662,140 5,460,133
Non-distributable reserve 28 7,304,259 453,214
Other reserves 28 (25,486 ) (25,486 )
Retained earnings 28 317,356 1,494,120
SHAREHOLDERS' FUNDS 12,258,369 7,382,081

NON-CONTROLLING INTERESTS (30,901 ) 46,527
TOTAL EQUITY 12,227,468 7,428,608


The financial statements were approved by the Board of Directors and authorised for issue on 12 June 2025 and were signed on its behalf by:





T A Hickey - Director


M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Company Balance Sheet
31 May 2024

2024 2023
as restated
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 14 - -
Tangible assets 15 15,778,564 17,364,480
Investments 16 500,074 500,073
Investment property 17 18,381,000 10,125,000
34,659,638 27,989,553

CURRENT ASSETS
Stocks 18 20,000 -
Debtors 19 2,745,326 3,489,011
Cash at bank and in hand 1,351,848 697,803
4,117,174 4,186,814
CREDITORS
Amounts falling due within one year 20 7,418,830 7,642,350
NET CURRENT LIABILITIES (3,301,656 ) (3,455,536 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

31,357,982

24,534,017

CREDITORS
Amounts falling due after more than one
year

21

(13,409,491

)

(14,203,945

)

PROVISIONS FOR LIABILITIES 26 (4,864,945 ) (2,877,471 )
NET ASSETS 13,083,546 7,452,601

CAPITAL AND RESERVES
Called up share capital 27 100 100
Revaluation reserve 28 4,556,668 5,354,661
Non-distributable reserve 28 7,304,259 453,214
Retained earnings 28 1,222,519 1,644,626
SHAREHOLDERS' FUNDS 13,083,546 7,452,601

Company's profit/(loss) for the financial year 5,832,330 (612,423 )

The financial statements were approved by the Board of Directors and authorised for issue on 12 June 2025 and were signed on its behalf by:





T A Hickey - Director


M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Consolidated Statement of Changes in Equity
for the Year Ended 31 May 2024

Called up
share Retained Revaluation Non-distributable
capital earnings reserve reserve
£    £    £    £   
Balance at 1 June 2022 100 2,858,005 - -
Prior year adjustment - (61,640 ) - -
As restated 100 2,796,365 - -

Changes in equity
Total comprehensive income - (656,580 ) 5,460,133 -
Dividends - (212,506 ) - -
Transfer - (453,214 ) - 453,214
100 1,474,065 5,460,133 453,214
Acquisition of non-controlling
interest

-

-

-

-
Balance at 31 May 2023 100 1,474,065 5,460,133 453,214
Prior year adjustment - 20,055 - -
As restated 100 1,494,120 5,460,133 453,214

Changes in equity
Total comprehensive income - 5,077,674 - -
Dividends - (201,386 ) - -
Transfer - (6,053,052 ) (797,993 ) 6,851,045
Balance at 31 May 2024 100 317,356 4,662,140 7,304,259

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Consolidated Statement of Changes in Equity - continued
for the Year Ended 31 May 2024

Other Non-controlling Total
reserves Total interests equity
£    £    £    £   
Balance at 1 June 2022 - 2,858,105 58,980 2,917,085
Prior year adjustment - (61,640 ) 9,893 (51,747 )
As restated - 2,796,465 68,873 2,865,338

Changes in equity
Total comprehensive income - 4,803,553 (67,969 ) 4,735,584
Dividends - (212,506 ) (12,000 ) (224,506 )
Transfer (25,486 ) (25,486 ) 25,486 -
(25,486 ) 7,362,026 14,390 7,376,416
Acquisition of non-controlling
interest

-

-

32,137

32,137
Balance at 31 May 2023 (25,486 ) 7,362,026 46,527 7,408,553
Prior year adjustment - 20,055 (1 ) 20,054
As restated (25,486 ) 7,382,081 46,526 7,428,607

Changes in equity
Total comprehensive income - 5,077,674 (77,427 ) 5,000,247
Dividends - (201,386 ) - (201,386 )
Balance at 31 May 2024 (25,486 ) 12,258,369 (30,901 ) 12,227,468

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Company Statement of Changes in Equity
for the Year Ended 31 May 2024

Called up
share Retained Revaluation Non-distributable Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1 June 2022 100 3,073,489 - - 3,073,589
Prior year adjustment - (150,720 ) - - (150,720 )
As restated 100 2,922,769 - - 2,922,869

Changes in equity
Dividends - (212,506 ) - - (212,506 )
Total comprehensive income - (589,414 ) 5,354,661 - 4,765,247
Transfer - (453,214 ) - 453,214 -
Balance at 31 May 2023 100 1,667,635 5,354,661 453,214 7,475,610
Prior year adjustment - (23,009 ) - - (23,009 )
As restated 100 1,644,626 5,354,661 453,214 7,452,601

Changes in equity
Dividends - (201,386 ) - - (201,386 )
Total comprehensive income - 5,832,330 - - 5,832,330
Transfer - (6,053,052 ) (797,993 ) 6,851,045 -
Balance at 31 May 2024 100 1,222,518 4,556,668 7,304,259 13,083,545

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Consolidated Cash Flow Statement
for the Year Ended 31 May 2024

2024 2023
as restated
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,092,797 2,256,510
Interest paid (484,182 ) (431,179 )
Interest element of hire purchase and finance
lease rental payments paid

(797,312

)

(980,067

)
Government grant income received 8,700 -
Tax paid 116,632 1,659
Net cash from operating activities 936,635 846,923

Cash flows from investing activities
Purchase of tangible fixed assets (73,150 ) (381,410 )
Purchase of fixed asset investments (1 ) (273,706 )
Purchase of investment property - (70,715 )
Sale of tangible fixed assets 6,654,126 2,899,031
Sale of investment property 1,176,000 675,000
Interest received 6,156 51
Net cash from investing activities 7,763,131 2,848,251

Cash flows from financing activities
New loans in year 1,455,446 1,148,000
Loan repayments in year (1,512,211 ) (1,501,747 )
Capital repayments in year (8,020,551 ) (4,276,409 )
Amount introduced by directors 35,284 24,170
Equity dividends paid (201,386 ) (212,506 )
Dividends paid to minority interests - (12,000 )
Net cash from financing activities (8,243,418 ) (4,830,492 )

Increase/(decrease) in cash and cash equivalents 456,348 (1,135,318 )
Cash and cash equivalents at beginning of
year

2

(572,199

)

563,119

Cash and cash equivalents at end of year 2 (115,851 ) (572,199 )

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 May 2024

1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
as restated
£    £   
Profit/(loss) before taxation 6,765,551 (496,658 )
Depreciation charges 1,607,811 1,672,841
Loss on disposal of fixed assets 186,645 113,720
Gain on revaluation of fixed assets (9,190,500 ) (604,285 )
Government grants (14,825 ) (8,285 )
Finance costs 1,281,494 1,418,314
Finance income (6,156 ) (51 )
630,020 2,095,596
(Increase)/decrease in stocks (12,797 ) 293,249
Decrease in trade and other debtors 261,173 849,927
Increase/(decrease) in trade and other creditors 1,214,401 (982,262 )
Cash generated from operations 2,092,797 2,256,510

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2024
31/5/24 1/6/23
£    £   
Cash and cash equivalents 1,431,391 755,273
Bank overdrafts (1,547,242 ) (1,327,472 )
(115,851 ) (572,199 )
Year ended 31 May 2023
31/5/23 1/6/22
as restated
£    £   
Cash and cash equivalents 755,273 998,547
Bank overdrafts (1,327,472 ) (435,428 )
(572,199 ) 563,119


M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 May 2024

3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1/6/23 Cash flow changes At 31/5/24
£    £    £    £   
Net cash
Cash at bank
and in hand 755,273 676,118 1,431,391
Bank overdrafts (1,327,472 ) (219,770 ) (1,547,242 )
(572,199 ) 456,348 (115,851 )
Debt
Hire purchase and
finance leases (16,392,833 ) 7,751,441 (6,669,021 ) (15,310,413 )
Debts falling due
within 1 year (328,826 ) 56,764 (56,270 ) (328,332 )
Debts falling due
after 1 year (3,866,603 ) - 56,270 (3,810,333 )
(20,588,262 ) 7,808,205 (6,669,021 ) (19,449,078 )
Total (21,160,461 ) 8,264,553 (6,669,021 ) (19,564,929 )

4. MAJOR NON-CASH TRANSACTIONS

During the year the group borrowed a total of £6,669,021 to make capital purchases through hire purchase and finance lease arrangements (2023: £7,054,412).

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements
for the Year Ended 31 May 2024

1. STATUTORY INFORMATION

M. J. Hickey Plant Hire & Contracts Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements are prepared in £ sterling (the functional currency).

GOING CONCERN
At the company level the accounts of M.J. Hickey Plant Hire & Contracts Limited show net assets of £13,083,546 at 31 May 2024 after a profit and total comprehensive income for the financial year of £5,832,330 (these figures are noted to include £9,190,500 of gains on the revaluation of investment property assets (or £6,892,875 of net gains after deferred tax charges)).

The company also exhibited net current liabilities of £(3,301,656) at 31 May 2024.

At the group level the consolidated balance sheet shows net assets of £12,227,468 at 31 May 2024 after a profit and total comprehensive income for the financial year of £5,000,247 (these figures are also noted to include £9,190,500 of gains on the revaluation of investment property assets (or £6,892,875 of net gains after deferred tax charges)). Group level EBITDA is noted to be £644,845 for the year ended 31 May 2024 calculated from operating profit and adding back depreciation, amortisation and net losses on the disposal of tangible fixed assets.

The group also exhibited net current liabilities of £(5,044,600) at 31 May 2024.

Future Developments
The group is currently in negotiations with a third party regarding the potential sale of substantially all of the investment property element of the Lynefield Park site that is held by M.J. Hickey Plant Hire & Contracts Limited. The group has entered into an exclusivity agreement with the third party and is confident that exchange of conditional contracts should occur by the end of August 2025, at which point a non-refundable deposit of £1m becomes receivable by the group. Completion of the transaction will occur once the relevant conditions have been satisfied, which it is expected will take at least twelve months following exchange of contracts.

The group has also entered into initial discussions with HM Revenue and Customs [HMRC] regarding arranging a time to pay arrangement in respect of certain liabilities of M.J. Hickey Plant Hire & Contracts Limited, R. Thornton & Co. Ltd and Emmex Freight Services Limited. The total value of the relevant liabilities is expected to be circa £1.2m. The group is confident that an agreement will be reached with HMRC such that repayment of substantially all of the relevant liabilities will be linked to successful completion of the property transaction discussed above.


M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

GOING CONCERN (continued)
Future Developments (continued)
The company and group have prepared budgets for the year ending 31 May 2026 along with associated cashflow forecasts allowing for expectations regarding the property transaction and HMRC matters discussed above as well as allowing for an uplift in performance levels and operational cash generation (as approximated by EBITDA) compared to recent and contemporary financial performance.

Following on from the improvement in EBITDA performance noted since the balance sheet date the Directors are confident that the budgets and associated cashflow forecasts should be achievable allowing for expected activity levels and operational plans.

As regards activity levels the group has recently converted circa £1m of prospective contract work into confirmed jobs with a further £0.5m of non-forecast work also having been obtained.

As regards operational plans these include continuing to review group operations, at all levels, to further raise business efficiency going forward. This process will include: identifying and implementing additional cost savings where possible; the continued improvement of internal business processes; and a strengthened focus on job costing, margin management and customer service levels.

It is noted that the budgets and cashflow forecasts show that the company and group may (if outcomes differ from those in the budgets and cashflow forecasts) require some additional funding during the year ending 31 May 2026 over and above the headroom anticipated on existing finance facilities (which it is expected will continue for the foreseeable future on unchanged terms).

Should additional funding be required the Directors are considering a number of options including working capital management along with the possible cash realisation of equity on plant and machinery assets via refinancing transactions where appropriate and are confident that additional funding will be accessible as required.


Overall, noting the position and uncertainties that exist at present in connection with the property transaction and the discussions with HMRC and noting also the uncertainties that exist in respect of budgets and cashflow forecasts through to 31 May 2026 (and associated possible additional funding requirements) then the Directors have concluded that these circumstances in aggregate represent a material uncertainty that may cast significant doubt upon the company's and/or group's ability to continue as a going concern and that, therefore, the company and/or the group may be unable to realise its assets and discharge its liabilities in the normal course of business.

As noted above the Directors are confident that exchange of conditional contracts should occur by the end of August 2025 regarding the property transaction and that an agreement will be reached with HMRC that links repayment of substantially all of the relevant liabilities to successful completion of the property transaction.

As also noted above the Directors are furthermore confident that the budgets should be achievable allowing for expected activity levels and operational plans and they are also considering a number of options (including working capital management and possible refinancing of plant and machinery assets) to raise additional funding should this be required.

Subject to the uncertainties noted above the Directors hence have a reasonable expectation that the group and company have adequate resources to continue in operational existence for the foreseeable future (this being a period of at least twelve months from the date of approval of these consolidated financial statements). As such the group and company therefore continue to adopt the going concern basis in preparing these consolidated financial statements.

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

BASIS OF CONSOLIDATION
The consolidated financial statements consolidate the financial statements of M. J. Hickey Plant Hire & Contracts Limited and all of its subsidiary undertakings drawn up to 31 May 2024. No profit and loss account is presented for M. J. Hickey Plant Hire & Contracts Limited as permitted by section 408 of the Companies Act 2006.

Subsidiaries are consolidated from the date of their acquisition, being the date on which control is obtained and continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and reporting policies of the investees so as to obtain benefits from its activities. The date of acquisition (and disposal as applicable) of each of the subsidiaries of M. J. Hickey Plant Hire & Contracts Limited is provided in the Fixed Assets Investments note below.

INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES
Investments in subsidiary and associate undertakings are recognised at cost less impairment.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the consolidated financial statements.

Leases
The group obtains the use of plant and machinery, motor vehicles and other equipment as a lessee. The classification of lease arrangements as operating or finance leases requires the group to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet.

Provisions and Contingencies
The group may be exposed to actual or possible claims in connection with its operations. The classification of such matters as provisions, contingent liabilities and so forth requires the group to evaluate various matters including for example the nature of applicable obligations and the likelihood of an outflow of resources occurring.


The following are the group's key sources of estimation uncertainty:

Investment Property
The fair value of investment property assets is determined by the Directors based on an assessment of the values implied by concluded and anticipated transactions (the latter informed by discussions with and offers received from third parties).


M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Fair Values
Where business combinations are accounted for under the purchase method the assets acquired and liabilities or contingent liabilities assumed in the business combination are measured at fair values subject to the requirements of section 19 of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, with the excess of the cost of the business combination over the net assets acquired being treated as goodwill.The calculation of fair values can involve the use of valuation techniques and estimates including discount rates.

Goodwill
The group estimates the useful life of goodwill arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business and any legal, regulatory or contractual provisions that can impact useful life.

Impairment of Non-Financial Assets
Where there are indicators of impairment of individual assets impairment tests are carried out based on fair value less costs to sell or a value in use calculation, with the latter being based on a discounted cash flow model. The recoverable amount (and hence any impairment adjustment) is sensitive to the discount rate used for the discounted cash flow model as well as expected future cash flows and any growth rates used for extrapolation purposes.

Taxation
Estimates can be required in the calculation of the level of current and deferred tax assets and liabilities to reasonably allow for income tax related uncertainties. Factors that may have favourable or adverse impacts on current or deferred tax assets and liabilities could include changes in tax legislation, tax rates and allowances, future levels of spending and the timing and level of future taxable profits.

TURNOVER
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

GOODWILL
Goodwill arising on business combinations represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values of the identifiable net assets, liabilities and contingent liabilities acquired.

Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the consolidated income statement. No reversals of impairment are recognised.

The goodwill that arose on the business combination that occurred in 2008 is being amortised on a straight line basis over a useful economic life of twenty years. The goodwill that arose on the business combination that occurred in the year ended 31 May 2023 is being amortised on a straight line basis over an estimated useful economic life of ten years.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property - not depreciated as comprises freehold land.
Improvements to property - 10% on cost.
Plant and machinery - at varying rates on cost and at variable rates on reducing balance.
Motor vehicles - 20% on reducing balance.
Office Equipment - at varying rates on reducing balance

INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES
Investments in subsidiary and associate undertakings are recognised at cost less impairment.

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

INVESTMENT PROPERTY
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

STOCKS
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

FINANCIAL INSTRUMENTS
The group has adopted Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, in which case the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method and at the end of each reporting period are assessed for objective evidence of impairment.

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 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.

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.

Financial liabilities
Basic financial liabilities, including trade and other payables, and certain bank loans, 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.

Such items, including basic debt instruments, are subsequently carried at amortised cost using the effective interest rate method. Fees paid on the establishment of debt facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Other items fall into Section 12 of FRS 102. Such items are initially measured at fair value, which is normally the transaction price. If payment for an asset is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate the asset is initially measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

At the end of each reporting period non-basic financial instruments are measured at fair value with changes in fair value being recognised in profit or loss unless an alternative approach (such as amortised cost) is required by sections 12.8 or 12.9 of FRS 102.


M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued
TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

HIRE PURCHASE AND LEASING COMMITMENTS
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

BUSINESS COMBINATIONS
Business combinations are accounted for using the purchase method unless the combination constitutes a group reconstruction that may be accounted for using the merger accounting method (with no such group reconstructions having occurred).

Under the purchase method the cost of a business combination is the aggregate of: the fair values, at the date of acquisition, of assets given, liabilities incurred or assumed, and equity instruments issued by the acquirer; plus any costs that are directly attributable to the business combination.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill.

Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.

Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values of the identifiable net assets, liabilities and contingent liabilities acquired.

Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the consolidated income statement. No reversals of impairment are recognised.

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

INVOICE FINANCING
The group has a number of invoice finance facilities in place for certain trade debtors. The gross amount of financed debts is included in trade debtors, with the proceeds received from the finance company being included in creditors: amounts falling due within one year.

3. TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the principal activities of the group.

Turnover is derived solely from UK operations and from the following revenue streams:

2024 2023
£ £
Rendering of services (equipment hire) 7,844,328 6,535,818
Rendering of services (earthworks) 4,647,551 10,556,764
Rendering of services (freight services) 2,222,318 1,130,045
Rendering of services (tipping) 3,719,450 3,181,387
Rendering of services (personnel and similar) 746,041 672,677
Rendering of services (rental income and similar) 393,335 370,662
Provision of goods (supply of materials) 194,129 20,041
19,767,152 22,467,394

4. OTHER OPERATING INCOME
2024 2023
as restated
£    £   
Rents received 10,500 -
Sundry receipts - 35,000
Government grants 14,825 8,285
25,325 43,285

Grant income for the year ended 31 May 2024 and the year ended 31 May 2023 included £6,125 (2023: £8,285) of grants relating to assets and £8,700 (2023: £nil) of other revenue grants.

5. EMPLOYEES AND DIRECTORS
2024 2023
as restated
£    £   
Wages and salaries 3,807,831 3,501,208
Social security costs 391,820 382,025
Other pension costs 96,805 92,173
4,296,456 3,975,406

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2024 2023
as restated

Operational 94 95
Admin 13 14
Directors - parent company 2 1
Directors - subsidiaries 1 2
110 112

2024 2023
as restated
£    £   
Directors' remuneration 85,615 32,988
Directors' pension contributions to money purchase schemes 12,516 10,137

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

6. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
as restated
£    £   
Hire of plant and machinery - 4,601
Other operating leases 450,328 254,238
Depreciation - owned assets 141,945 341,351
Depreciation - assets on hire purchase contracts and finance leases 1,407,861 1,284,682
Loss on disposal of fixed assets 428,145 158,720
Goodwill amortisation 58,005 46,808
Auditors' remuneration 88,913 31,150

Of the auditors' remuneration above £53,436 (2023: £14,000) relates to the audit of these financial statements and £35,477 (2023: £17,150) relates to the audit of subsidiary financial statements.

7. EXCEPTIONAL ITEMS

Exceptional items in 2024 and 2023 relate to profits arising on the disposal of investment property assets.

8. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
as restated
£    £   
Deposit account interest 698 22
Other interest receivable 5,458 29
6,156 51

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

9. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
as restated
£    £   
Bank interest - 168
Loan interest 449,410 415,416
Interest on corporation tax - 2,617
Other interest payable 34,772 20,046
Hire purchase 797,312 980,067
1,281,494 1,418,314

10. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
as restated
£    £   
Current tax:
UK corporation tax - 7,524
Under/(over)provision of tax (172,536 ) 5,629
Total current tax (172,536 ) 13,153

Deferred tax 1,937,840 194,683
Tax on profit/(loss) 1,765,304 207,836

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
as restated
£    £   
Profit/(loss) before tax 6,765,551 (496,658 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
25 % (2023 - 20 %)

1,691,388

(99,332

)

Effects of:
Expenses not deductible for tax purposes 40,337 222,799
Income not taxable for tax purposes (2,297,625 ) (120,857 )
Capital allowances in excess of depreciation - (124,118 )
Depreciation in excess of capital allowances 418,508 -
Adjustments to tax charge in respect of previous periods (172,536 ) 13,153
Origination and reversal of timing differences 2,085,232 20,256
Movement relating to change of tax rate - 295,935
Total tax charge 1,765,304 207,836

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 May 2024.

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

10. TAXATION - continued

2023
Gross Tax Net
£    £    £   
Revaluation of freehold property 7,245,020 (1,784,887 ) 5,460,133

11. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


12. DIVIDENDS
2024 2023
as restated
£    £   
Ordinary shares of £1 each
Interim 201,386 212,506

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

13. PRIOR YEAR ADJUSTMENT

Group
During the year ended 31 May 2024 the Directors reviewed the classification of the lease agreements held by the group. Following the review a number of leases that had previously been treated as finance leases were considered more reasonably classified as operating leases. Under section 10 of FRS 102 the Directors have restated the consolidated figures for comparative periods as follows: the carrying value of tangible fixed assets at 1 June 2022 decreased by £538,583 with the value of finance lease creditors decreasing by £311,992; cost of sales expenses for the year ended 31 May 2023 increased by £125,296 with administrative expenses decreasing by £2,200 and finance costs decreasing by £30,976; the carrying value of tangible fixed assets at 31 May 2023 decreased by £659,083 with the value of finance lease creditors decreasing by £340,372.

In addition, the Directors reviewed the accounting treatment applied for a number of sale and leaseback transactions. Following the review the Directors have restated the consolidated figures for comparative periods as follows to reflect the impact of deferring the profits arising or recognising the losses arising as applicable: the carrying value of tangible fixed assets at 1 June 2022 increased by £50,205 with the value of creditors having increased by £182,307; cost of sales expenses for the year ended 31 May 2023 increased by £26,692 with administrative expenses decreasing by £37,239; the carrying value of tangible fixed assets at 31 May 2023 increased by £261,034 with creditors increasing by £382,589.

Further, the Directors completed a review of the tangible fixed assets held by the group and identified a small number of updates. Following the review the Directors have restated the figures for comparative periods as follows: the carrying value of tangible fixed assets at 1 June 2022 increased by £136,638; cost of sales expenses for the year ended 31 May 2023 increased by £12,530; administrative expenses for the year ended 31 May 2023 decreased by £35,328; and the carrying value of tangible fixed assets at 31 May 2023 increased by £159,436.

Finally, the Directors reviewed the treatment of a small number of other transactions including accrued expenses and the carrying value of certain creditor balances, following which they have restated the consolidated figures for comparative periods as follows: the carrying value of tangible fixed assets at 1 June 2022 increased by £53,541 with debtors reducing by £8,612 and creditors decreasing by £8,650; cost of sales expenses for the year ended 31 May 2023 increased by £4,632 with administrative expenses increasing by £11,897 and finance costs increasing by £2,724; the carrying value of tangible fixed assets at 31 May 2023 increased by £41,643 with debtors decreasing by £8,612 and creditors decreasing by £1,295.

The Directors also updated consolidated corporation tax and deferred tax positions as a consequence of the above with: deferred tax provisions at 1 June 2022 reducing by £116,729; tax charges for the year ended 31 May 2023 reducing by £98,084; deferred tax provisions at 31 May 2023 reducing by £216,234 with debtors reducing by £7,397 and creditors decreasing by £5,976.

In addition, a number of items have been reclassified between headings in the comparative consolidated figures for the year ended 31 May 2023 for consistency with the approach adopted in the year ended 31 May 2024 with no overall impact on either consolidated profit for the year or consolidated net assets.

Overall: consolidated net assets at 1 June 2022 have been updated from £2,917,085 (as originally stated) to £2,865,338 (as restated); the consolidated loss for the year ended 31 May 2023 has been updated from £(724,548) (as originally stated) to £(704,494) as restated; total consolidated comprehensive income for the year ended 31 May 2023 was been updated from £4,735,585 (as originally stated) to £4,755,639 (as restated); and consolidated net assets at 31 May 2023 have been updated from £7,460,301 (as originally stated) to £7,428,608 (as restated).


M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

Company
During the year ended 31 May 2024 the Directors reviewed the classification the lease agreements held by the company. Following the review a number of leases that had previously been treated as finance leases were considered more reasonably classified as operating leases. Under section 10 of FRS 102 the Directors have restated the figures for comparative periods as follows: the carrying value of tangible fixed assets at 1 June 2022 decreased by £538,583 with the value of finance lease creditors decreasing by £311,992; cost of sales expenses for the year ended 31 May 2023 increased by £125,296 with administrative expenses decreasing by £2,200 and finance costs decreasing by £30,976; the carrying value of tangible fixed assets at 31 May 2023 decreased by £659,083 with the value of finance lease creditors decreasing by £340,372.

In addition, the Directors reviewed the accounting treatment applied for a number of sale and leaseback transactions. Following the review the Directors have restated the figures for comparative periods as follows to reflect the impact of deferring the profits arising or recognising the losses arising as applicable: the carrying value of tangible fixed assets at 1 June 2022 increased by £50,205 with the value of creditors having increased by £182,307; cost of sales expenses for the year ended 31 May 2023 increased by £13,941 with administrative expenses decreasing by £8,309; the carrying value of tangible fixed assets at 31 May 2023 decreased by £15,518 with creditors increasing by £122,216.

Further, the Directors completed a review of the tangible fixed assets held by the company and identified a small number of updates. Following the review the Directors have restated the figures for comparative periods as follows: the carrying value of tangible fixed assets at 1 June 2022 increased by £98,865; cost of sales expenses for the year ended 31 May 2023 increased by £6,863; the carrying value of tangible fixed assets at 31 May 2023 increased by £92,002.

Finally, the Directors reviewed the treatment of a small number of other transactions including intercompany transactions and accrued expenses, following which they have restated the figures for comparative periods as follows: the carrying value of tangible fixed assets at 1 June 2022 increased by £53,541 with debtors reducing by £8,612 and creditors increasing by £52,550; revenue for the year ended 31 May 2023 increased by £24,857 with cost of sales expenses increasing by £40,000, administrative expenses increasing by £11,897 and finance costs increasing by £2,724; the carrying value of tangible fixed assets at 31 May 2023 increased by £41,643 with debtors increasing by £16,245 and creditors increasing by £95,273.

The Directors also updated corporation tax and deferred tax calculations as a consequence of the above with: deferred tax provisions at 1 June 2022 reducing by £116,729; tax charges for the year ended 31 May 2023 reducing by £111,371; deferred tax provisions at 31 May 2023 reducing by £235,497 with debtors reducing by £7,397.

In addition, a number of items have been reclassified between headings in the comparative figures for the year ended 31 May 2023 for consistency with the approach adopted in the year ended 31 May 2024 with no overall impact on either profit for the year or net assets.

Overall: net assets at 1 June 2022 have been updated from £3,073,589 (as originally stated) to £2,922,869 (as restated); the loss for the year ended 31 May 2023 has been updated from £(589,414) (as originally stated) to £(612,423) as restated; total comprehensive income for the year ended 31 May 2023 was been updated from £4,765,247 (as originally stated) to £4,742,238 (as restated); and net assets at 31 May 2023 have been updated from £7,626,330 (as originally stated) to £7,452,601 (as restated).

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

14. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 June 2023
and 31 May 2024 891,366
AMORTISATION
At 1 June 2023 482,650
Amortisation for year 58,005
At 31 May 2024 540,655
NET BOOK VALUE
At 31 May 2024 350,711
At 31 May 2023 408,716

15. TANGIBLE FIXED ASSETS

Group
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 June 2023 683,970 75,280 26,110,554
Additions - - 6,666,171
Disposals (32,983 ) - (10,790,355 )
At 31 May 2024 650,987 75,280 21,986,370
DEPRECIATION
At 1 June 2023 - 5,019 6,062,889
Charge for year - 7,528 1,490,414
Eliminated on disposal - - (3,723,644 )
At 31 May 2024 - 12,547 3,829,659
NET BOOK VALUE
At 31 May 2024 650,987 62,733 18,156,711
At 31 May 2023 683,970 70,261 20,047,665

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

15. TANGIBLE FIXED ASSETS - continued

Group

Motor Office
vehicles Equipment Totals
£    £    £   
COST
At 1 June 2023 426,871 67,071 27,363,746
Additions 76,000 - 6,742,171
Disposals (29,255 ) - (10,852,593 )
At 31 May 2024 473,616 67,071 23,253,324
DEPRECIATION
At 1 June 2023 242,517 58,545 6,368,970
Charge for year 49,973 1,891 1,549,806
Eliminated on disposal (21,747 ) - (3,745,391 )
At 31 May 2024 270,743 60,436 4,173,385
NET BOOK VALUE
At 31 May 2024 202,873 6,635 19,079,939
At 31 May 2023 184,354 8,526 20,994,776

The net carrying amount of assets held under finance leases (including hire purchase contracts) is:
- included in plant and machinery £16,916,352 (2023: £18,266,635);
- included in motor vehicles £171,407 (2023: £137,513).

Company
Freehold Plant and Motor Office
property machinery vehicles Equipment Totals
£    £    £    £    £   
COST
At 1 June 2023 683,970 21,174,483 426,871 66,285 22,351,609
Additions - 5,487,800 76,000 - 5,563,800
Disposals (32,983 ) (9,021,373 ) (29,255 ) - (9,083,611 )
At 31 May 2024 650,987 17,640,910 473,616 66,285 18,831,798
DEPRECIATION
At 1 June 2023 - 4,686,217 242,517 58,395 4,987,129
Charge for year - 932,622 49,973 1,730 984,325
Eliminated on disposal - (2,896,473 ) (21,747 ) - (2,918,220 )
At 31 May 2024 - 2,722,366 270,743 60,125 3,053,234
NET BOOK VALUE
At 31 May 2024 650,987 14,918,544 202,873 6,160 15,778,564
At 31 May 2023 683,970 16,488,266 184,354 7,890 17,364,480

The net carrying amount of assets held under finance leases (including hire purchase contracts) is:
- included in plant and machinery £13,760,690 (2023: £15,197,039);
- included in motor vehicles £171,407 (2023: £137,513).

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

16. FIXED ASSET INVESTMENTS

Group
Interest
in
associate
£   
COST
Additions 1
At 31 May 2024 1
NET BOOK VALUE
At 31 May 2024 1
Company
Shares in Interest
group in
undertakings associate Totals
£    £    £   
COST
At 1 June 2023 500,073 - 500,073
Additions - 1 1
At 31 May 2024 500,073 1 500,074
NET BOOK VALUE
At 31 May 2024 500,073 1 500,074
At 31 May 2023 500,073 - 500,073


M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

16. FIXED ASSET INVESTMENTS - continued


Shares in group undertakings comprises the following subsidiary undertakings (as included in these consolidated financial statements):

R. Thornton & Co. Ltd
Registered office at Lynefield Park, Ashington, Northumberland, NE63 9YH.
90% of the issued ordinary shares and 90% of the issued A ordinary shares are held by M.J. Hickey Plant Hire & Contracts Limited.

Lynefield Park Limited
Registered office at Unit 1 Linton Industrial Estate, Linton, Morpeth, Northumberland, NE61 5SD.
73% of the issued ordinary shares are held by M.J. Hickey Plant Hire & Contracts Limited.


In addition, the shares in the following subsidiary undertakings (as included in these consolidated financial statements) are held by the indicated group company:

Lynefield Park Limited
A further 25% of the issued ordinary shares are held by R. Thornton & Co. Ltd.

Emmex Freight Services Ltd
Registered office at Lynefield Park, Ashington, Northumberland, NE63 9YH.
Acquired on 9 November 2022 with 100% of the issued A ordinary shares and B ordinary shares being held by R. Thornton & Co. Ltd.


Interest in associate at both the group and company level comprises 50% of the issued ordinary share capital of R Thornton Group Limited acquired on its incorporation for £1.The registered office address of R Thornton Group Limited is Lynefield Park, Ashington, Northumberland, NE63 9YH.

17. INVESTMENT PROPERTY

Group
Total
£   
FAIR VALUE
At 1 June 2023 10,325,000
Disposals (934,500 )
Revaluations 9,190,500
At 31 May 2024 18,581,000
NET BOOK VALUE
At 31 May 2024 18,581,000
At 31 May 2023 10,325,000

The fair value of the investment property assets has been determined by the Directors based on an assessment of the values implied by concluded and anticipated transactions (the latter informed by discussions with and offers received from third parties).

A fair value revaluation of £9,190,500 has been reflected during the year in respect of investment property.

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

17. INVESTMENT PROPERTY - continued

Company
Total
£   
FAIR VALUE
At 1 June 2023 10,125,000
Disposals (934,500 )
Revaluations 9,190,500
At 31 May 2024 18,381,000
NET BOOK VALUE
At 31 May 2024 18,381,000
At 31 May 2023 10,125,000

The fair value of the investment property assets has been determined by the Directors based on an assessment of the value implied by concluded and anticipated transactions (the latter informed by discussions with and offers received from third parties).

A fair value revaluation of £9,190,500 has been reflected during the year in respect of investment property.

18. STOCKS

Group Company
2024 2023 2024 2023
as restated as restated
£    £    £    £   
Raw materials and consumables 58,046 53,800 - -
Work-in-progress 129,099 120,548 20,000 -
187,145 174,348 20,000 -

19. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
as restated as restated
£    £    £    £   
Trade debtors 3,862,286 4,111,968 2,237,628 2,437,404
Bad debt provision (37,306 ) - (37,306 ) -
Retentions - 165,584 - 165,584
Amounts owed by group undertakings - - 50,469 196,372
Other debtors 247,565 235,127 50,657 48,106
Directors' current accounts 144,439 179,723 144,437 179,722
Tax 7,157 - 7,157 -
VAT - 101,708 - 276,809
Prepayments and accrued income 630,269 349,600 292,284 185,014
4,854,410 5,143,710 2,745,326 3,489,011

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

19. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

Group
Included within trade debtors are balances totalling £2,965,957 (2023: £2,826,332) that are subject to invoice finance arrangements. The balances do not qualify for derecognition on the basis that the risks re late or non-payment are retained by the group. The associated liability recognised in creditors re funds drawndown from the finance company amounts to £1,678,354 (2023: £1,760,991).

Company
Included within trade debtors are balances totalling £1,467,977 (2023: £1,389,846) that are subject to invoice finance arrangements. The balances do not qualify for derecognition on the basis that the risks re late or non-payment are retained by the company. The associated liability recognised in creditors re funds drawndown from the finance company amounts to £737,790 (2023: £873,346).

20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
as restated as restated
£    £    £    £   
Bank loans and overdrafts (see note 22) 1,722,135 1,600,198 1,236,729 1,285,339
Other loans (see note 22) 153,439 56,100 49,310 33,000
Hire purchase contracts and finance leases (see note 23)
3,743,751

4,061,911

3,055,962

3,376,339
Trade creditors 1,849,457 2,341,967 843,542 1,474,758
Amounts owed to group undertakings - - 117,988 -
Amounts owed to associates 1 - 1 -
Tax 32,058 20,587 - 1,350
Social security and other taxes 417,687 202,329 337,230 156,036
VAT 393,561 - 146,276 -
Other creditors 1,763,665 1,847,736 771,473 924,117
Accrued expenses 1,441,792 767,004 860,319 385,286
Deferred government grants - 6,125 - 6,125
11,517,546 10,903,957 7,418,830 7,642,350

21. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2024 2023 2024 2023
as restated as restated
£    £    £    £   
Bank loans (see note 22) 310,333 366,603 297,787 288,269
Other loans (see note 22) 3,500,000 3,500,000 3,500,000 3,500,000
Hire purchase contracts and finance leases (see note 23)
11,566,662

12,330,922

9,400,558

10,338,595
Accruals and deferred income 432,609 279,593 211,146 77,081
15,809,604 16,477,118 13,409,491 14,203,945

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

22. LOANS

An analysis of the maturity of loans is given below:

Group Company
2024 2023 2024 2023
as restated as restated
£    £    £    £   
Amounts falling due within one year or on demand:
Bank overdrafts 1,547,242 1,327,472 1,132,856 1,077,916
Bank loans 147,709 226,477 76,689 161,174
CBILs loan 27,184 46,249 27,184 46,249
Other loans 153,439 56,100 49,310 33,000
1,875,574 1,656,298 1,286,039 1,318,339
Amounts falling due between one and two years:
Bank loans - 1-2 years 95,851 117,028 83,305 45,000
CBILs loan - 1-2 years 14,523 27,353 14,523 27,353
Other loans - 1-2 years 3,500,000 3,500,000 3,500,000 3,500,000
3,610,374 3,644,381 3,597,828 3,572,353
Amounts falling due between two and five years:
Bank loans - 2-5 years 199,959 156,306 199,959 150,000
CBILs loan - 2-5 years - 14,560 - 14,560
199,959 170,866 199,959 164,560
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal - 51,356 - 51,356

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

22. LOANS - continued

Group
At the group level bank, CBILs and other loans comprise amounts drawndown by both the parent and subsidiary companies.

Bank loans include facilities with the following terms:
- a loan with a variable interest rate of base rate plus 2.25% per annum. The final repayment date is expected to be September 2028.
- a loan with a variable interest rate of base rate plus 4% per annum with the final repayment date expected to be June 2027.
- a loan with a fixed interest rate of 10.10% per annum with the final repayment date expected to be July 2025.

All capital and interest repayments in respect of bank loans are paid monthly.

CBILs loans comprises of a loan with a fixed interest rate of 8.90% per annum. Capital and interest payments are paid monthly with the final repayment date expected to be November 2025.

Other loans include facilities with the following terms:
- a loan with an agreed effective fixed rate of 8.25% per annum. Interest is paid monthly. The repayment terms for the capital have yet to be agreed but no repayment is expected within twelve months of the balance sheet date. The capital has been disclosed as falling in one to two years in these accounts.
- a loan with a fixed interest rate of 43.14% per annum. Capital and interest payments are paid monthly with the final repayment date expected to be June 2024.
- a loan with a fixed interest rate of 4.96% per annum. Capital and interest payments are paid monthly with the final repayment date expected to be December 2024.
- a loan with a fixed interest rate of 44.88% per annum. Capital and interest payments are paid monthly with the final repayment date expected to be June 2024.
- an interest free loan with no fixed repayment terms other than a final repayment date of December 2024.

Company
At the company level bank loans include facilities with the following terms:
- a loan with a variable interest rate of base rate plus 2.25% per annum. The final repayment date is expected to be September 2028.
- a loan with a variable interest rate of base rate plus 4% per annum with the final repayment date expected to be June 2027.

All capital and interest repayments in respect of bank loans are paid monthly.

CBILs loans comprises of a loan with a fixed interest rate of 8.90% per annum. Capital and interest payments are paid monthly with the final repayment date expected to be November 2025.

Other loans include facilities with the following terms:
- a loan with an agreed effective fixed rate of 8.25% per annum. Interest is paid monthly. The repayment terms for the capital have yet to be agreed but no repayment is expected within twelve months of the balance sheet date. The capital has been disclosed as falling in one to two years in these accounts.
- a loan with a fixed interest rate of 43.14% per annum. Capital and interest payments are paid monthly with the final repayment date expected to be June 2024.
- a loan with a fixed interest rate of 4.96% per annum. Capital and interest payments are paid monthly with the final repayment date expected to be December 2024.

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

23. LEASING AGREEMENTS

Hire Purchase (as lessee)
Group
The group uses hire purchase contracts to acquire certain plant and machinery and motor vehicle assets. The hire purchase contracts contain options to purchase the assets for nominal amounts at the end of the contract period. The future minimum lease payments due under hire purchase contracts are as follows:

2024 2023
£ £
Amounts repayable:
Within one year 4,486,928 4,691,680
Between one and five years 12,128,808 11,633,953

Less finance charges allocated to future periods (2,907,918 ) (1,966,050 )
13,707,818 14,359,583

Company
The parent uses hire purchase contracts to acquire certain plant and machinery and motor vehicle assets. The hire purchase contracts contain options to purchase the assets for nominal amounts at the end of the contract period. The future minimum lease payments due under hire purchase contracts are as follows:

2024 2023
£ £
Amounts repayable:
Within one year 3,556,465 3,722,038
Between one and five years 9,609,021 9,452,040

Less finance charges allocated to future periods (2,311,561 ) (1,492,394 )
10,853,925 11,681,684

Finance Lease (as lessee)
Group
The group uses finance lease agreements to acquire certain plant and machinery assets. The future minimum lease payments due under finance lease agreements are as follows:

2024 2023
£ £
Amounts repayable:
Within one year 401,252 471,923
Between one and five years 1,321,039 1,722,352

Less finance charges allocated to future periods (119,696 ) (161,025 )
1,602,595 2,033,250

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

Company
The company uses finance lease agreements to acquire certain plant and machinery assets. The future minimum lease payments due under finance lease agreements are as follows:

2024 2023
£ £
Amounts repayable:
Within one year 401,252 471,923
Between one and five years 1,321,039 1,722,352

Less finance charges allocated to future periods (119,696 ) (161,025 )
1,602,595 2,033,250


Sale and Leaseback
Group
During the year to 31 May 2024 and the year to 31 May 2023 the group entered into a number of sale and leaseback transactions. All such transactions resulted in finance leases (hire purchase contracts) with outstanding liabilities being included in hire purchase contracts and minimum lease payments being included in the hire purchase contracts disclosure above.

Company
During the year to 31 May 2024 and the year to 31 May 2023 the company entered into a number of sale and leaseback transactions. All such transactions resulted in finance leases (hire purchase contracts) with outstanding liabilities being included in hire purchase contracts and minimum lease payments being included in the hire purchase contracts disclosure above.

Operating Leases (as lessee)
Group
Minimum lease payments under non-cancellable operating leases fall due as follows:

2024 2023
£ £
Within one year 260,022 358,474
Between one and five years 126,810 298,728
In more than five years - -
386,832 657,202

See the Operating Profit note for lease payments recognised as an expense.


Company
Minimum lease payments under non-cancellable operating leases fall due as follows:

2024 2023
£ £
Within one year 239,315 337,767
Between one and five years 81,687 232,897
In more than five years - -
321,001 570,664

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

24. SECURED DEBTS

Group
At the group level other loans (1-2 years) of £3,500,000 (2023: £3,500,000) are secured by a fixed charge dated 4 February 2021. Bank overdrafts and £359,953 (2023: £407,530) of bank loans - along with £1,678,354 (2023: £1,760,991) of other creditors - are secured by various instruments including: a fixed and floating charge dated 24 June 2010; a fixed and floating charge dated 28 August 2007; fixed and floating charges dated 29 September 2008 and 16 January 2020; a deed of charge over credit balances dated 16 February 2005; and a debenture dated 10 December 2003.

Hire purchase liabilities are secured on the assets to which they relate.

Company
At the company level other loans (1-2 years) of £3,500,000 (2023: £3,500,000) are secured by a fixed charge dated 4 February 2021. Bank overdrafts and £359,953 (2023: £407,530) of bank loans - along with £737,790 (2023: £873,346) of other creditors - are secured by a fixed and floating charge dated 24 June 2010, a deed of charge over credit balances dated 16 February 2005 and a debenture dated 10 December 2003.

Hire purchase liabilities are secured on the assets to which they relate.

25. FINANCIAL INSTRUMENTS

All financial assets are measured at amortised cost. All financial liabilities are recorded at amortised cost.

26. PROVISIONS FOR LIABILITIES

Group Company
2024 2023 2024 2023
as restated as restated
£    £    £    £   
Deferred tax 4,929,979 2,992,140 4,864,945 2,877,471

Group
Deferred
tax
£   
Balance at 1 June 2023
As previously reported 3,208,373
Prior year adjustment (216,233 )
As restated 2,992,140
Disposal of revalued property (265,998 )
Accelerated capital allowances 52,959
Losses arising (132,804 )
Fair value revaluations 2,283,682
Balance at 31 May 2024 4,929,979

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

26. PROVISIONS FOR LIABILITIES - continued

Company
Deferred
tax
£   
Balance at 1 June 2023
As previously reported 3,112,968
Prior year adjustment (235,497 )
As restated 2,877,471
Revaluation of property (265,998 )
Accelerated capital allowances 127,039
Losses arising (157,249 )
Fair value revaluations 2,283,682
Balance at 31 May 2024 4,864,945

Group
The provision for deferred tax consists of the following deferred tax liabilities / (assets):

£
Accelerated capital allowances 3,324,503
Unrelieved tax losses (2,348,167 )
Revaluation of property assets 1,518,889
Fair value revaluations 2,434,754
4,929,979

Unused tax losses at 31 May 2024 totalled £10,297,443 at the group level, noting that a deferred tax asset has been recognised in respect of £9,226,161 of unused tax losses only.

The estimated net reversals of all deferred tax items during the year ending 31 May 2025 are considered to be difficult to estimate reliably as they maybe impacted by factors including capital expenditure and activity levels.

Company
The provision for deferred tax consists of the following deferred tax liabilities / (assets):

£
Accelerated capital allowances 2,762,101
Unrelieved tax losses (1,850,799 )
Revaluation of property assets 1,518,889
Fair value revaluations 2,434,754
4,864,945

Unused tax losses at 31 May 2024 totalled £7,403,198 at the company level.

The estimated net reversals of all deferred tax items during the year ending 31 May 2025 are considered to be difficult to estimate reliably as they maybe impacted by factors including capital expenditure and activity levels.

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

27. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: as restated
£    £   
100 Ordinary £1 100 100

28. RESERVES

Group
Retained Revaluation Non-distributable Other
earnings reserve reserve reserves Totals
£    £    £    £    £   

At 1 June 2023 1,474,065 5,460,133 453,214 (25,486 ) 7,361,926
Prior year adjustment 20,055 20,055
1,494,120 7,381,981
Profit for the year 5,077,674 5,077,674
Dividends (201,386 ) (201,386 )
Transfer (6,053,052 ) (797,993 ) 6,851,045 - -
At 31 May 2024 317,356 4,662,140 7,304,259 (25,486 ) 12,258,269

Company
Retained Revaluation Non-distributable
earnings reserve reserve Totals
£    £    £    £   

At 1 June 2023 1,667,636 5,354,661 453,214 7,475,511
Prior year adjustment (23,009 ) (23,009 )
1,644,627 7,452,502
Profit for the year 5,832,330 5,832,330
Dividends (201,386 ) (201,386 )
Transfer (6,053,052 ) (797,993 ) 6,851,045 -
At 31 May 2024 1,222,519 4,556,668 7,304,259 13,083,446

The revaluation reserve is used to record revaluations of relevant property, plant and equipment assets (tangible fixed assets) along with any associated deferred tax impacts.

The amount recorded on the other reserve reflects the effective transfer to non-controlling interests that arose, at the group level, when M.J. Hickey Plant Hire & Contracts Limited released £254,862 of amounts owed to it by R. Thornton & Co. Ltd (its 90% subsidiary) during the comparative year ended 31 May 2023.

The non-distributable reserve is a memo reserve used to record fair value revaluations of investment property assets net of any associated deferred tax impacts.

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

29. PENSION COMMITMENTS

Group
The group contributes to defined contribution pension schemes for relevant employees. The charge incurred for contributions payable in respect of the year ended 31 May 2024 was £96,805 (2023: £92,173) of which £13,494 was outstanding as at 31 May 2024 (2023: £25,151).

Company
The company contributes to defined contribution pension schemes for relevant employees. The charge incurred for contributions payable in respect of the year ended 31 May 2024 was £50,756 (2023: £47,000) of which £2,241 was outstanding as at 31 May 2024 (2023: £15,850).

30. CONTINGENT LIABILITIES

Company
At the company level M.J. Hickey Plant Hire & Contracts Limited is a guarantor of certain debt obligations of its subsidiary company R. Thornton & Co. Ltd. The relevant obligations outstanding at the balance sheet date totalled circa £2,070,000.

31. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Group
The following loans to directors subsisted during the years ended 31 May 2024 and 31 May 2023:

2024 2023
£ £

Balance outstanding at the start of the period 179,724 203,896
Advances in the year 173,093 188,334
Repayments in the year (208,373 ) (212,506 )
Balance outstanding at the end of the period 144,439 179,724

Interest was charged at the prevailing rate where applicable and there were no fixed repayment terms.

Company
The following loans to directors subsisted during the years ended 31 May 2024 and 31 May 2023:

2024 2023
£ £

Balance outstanding at the start of the period 179,722 203,894
Advances in the year 173,093 188,334
Repayments in the year (208,373 ) (212,506 )
Balance outstanding at the end of the period 144,437 179,722

Interest was charged at the prevailing rate where applicable and there were no fixed repayment terms.

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

32. RELATED PARTY DISCLOSURES

Company
During the year ended 31 May 2024 and the year ended 31 May 2023 the company entered into other transactions with group undertakings as shown in the table below:










Sales to group
undertakings



Expenses from
group
undertakings
Balance
outstanding at
31 May in
amount owed by
group
undertakings
Balance
outstanding at
31 May in
amount owed to
group
undertakings
Group Undertakings
2024 £803,323 £51,890 £50,469 £(117,988 )
2023 £1,534,576 £152,457 £196,372 -

In addition to the above £28,594 (2023: £24,857) of prepayments and accrued income balances and £15,000 (2023: £nil) of accruals and deferred income balances relate to balances with other related parties.

Group
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

All directors of the parent company and its subsidiaries are considered to be key management personnel. At group level total remuneration in respect of these individuals was £85,615 [2023: £32,988] (see also the Employees and Directors note above).

See the Directors' Advances, Credits and Guarantees note for details of loans to directors.

Furthermore a loan subsisted to a director of a subsidiary who is not also a director of the parent company. The amount owed at the balance sheet date, as included in other debtors, is £94,987 (2023: £56,998).

In addition, £77,500 (2023: £77,500) of expenditure was incurred by a subsidiary from entities that provide key management personnel services to the subsidiary.

33. POST BALANCE SHEET EVENTS

Group and Company
Since the balance sheet date the group and company have purchased and disposed of various tangible fixed assets in the normal course of trading.

Also since the balance sheet date the group and company has borrowed a further £2m from the funder of the £3.5m other loan that was extant at 31 May 2024. The further loan bears interest at 8% per annum and is interest only for at least twelve months from drawdown. Terms for the repayment of the loan principal will be agreed by the parties once the interest only period expires subject to various conditions that are noted in the agreement (including that the loan is repayable in full if a payment is triggered under the overage deed discussed below).

Alongside the further loan drawdown the group and company entered into an overage deed with the funder. The agreement requires a payment of £2m to be made to the funder if a relevant disposal event occurs while the agreement is active that impacts the property on which the further loan is secured.

In addition, the group and company have successfully completed the process of transferring to a new invoice finance provider since the balance sheet date.

See also the notes in the Future Developments section of the Going Concern narrative included in note 2 above.

M. J. Hickey Plant Hire & Contracts
Limited (Registered number: 04890756)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

34. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is T A Hickey.