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REGISTERED NUMBER: 02745517 (England and Wales)













Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 May 2024

for

R. Thornton & Co. Ltd.

R. Thornton & Co. Ltd. (Registered number: 02745517)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


R. Thornton & Co. Ltd.

Company Information
for the Year Ended 31 May 2024







DIRECTORS: T A Hickey
N Heads
A Thornton





REGISTERED OFFICE: Lynefield Park
Ashington
Northumberland
NE63 9YH





REGISTERED NUMBER: 02745517 (England and Wales)





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

R. Thornton & Co. Ltd. (Registered number: 02745517)

Strategic Report
for the Year Ended 31 May 2024

The directors present their strategic report for the year ended 31 May 2024.

REVIEW OF BUSINESS
R. Thornton & Co. Ltd. is a business that operates mainly in the North East of England, providing a range of services including tipping, earthworks and plant hire.

In light of the size and straightforward nature of the business it is not considered that non-financial key performance indicators are of particular relevance for these financial statements. In terms of overview key financial indicators:
- turnover for the year to 31 May 2024 £7,235,175 [2023 [as restated] - £8,841,361];
- profit/(loss) for the year to 31 May 2024 £(692,692) [2023 [as restated] - £(525,422)];
- comprehensive income for the year to 31 May 2024 £(692,692) [2023 [as restated] - £(419,950)];
- EBITDA for the year to 31 May 2024 £(70,530) [2023 [as restated] - £129,316];
- EBITDA (before exceptional items [note 7] for the year to 31 May 2024 £(19,359) [2023 [as restated] - £146,866].

The fall in aggregate turnover from 2023 to 2024 mainly reflects reduced activity levels for the earthworks business line, which generated income of circa £1,910,000 in 2024 against circa £3,810,000 in 2023.

Revenues from the plant hire business line decreased from circa £1,610,000 in 2023 to circa £1,250,000 in 2023 however tipping revenues rose from circa £3,180,000 in 2023 to circa £3,720,000 in 2024.

Other revenues increased slightly from circa £240,000 in 2023 to circa £350,000 in 2024.

The business invested circa £1,150,000 in tangible fixed assets during the year (circa £200,000 net after allowing for the book value of asset disposals) to support and develop its service offering.

PRINCIPAL RISKS AND UNCERTAINTIES
The company 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 company 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 company regularly reviews its service offerings and customer service levels to ensure they meet the needs of our customers.

The company is also exposed to commodity price risk, in particular as regards movements in fuel prices given the nature of the business. The company 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.


R. Thornton & Co. Ltd. (Registered number: 02745517)

Strategic Report
for the Year Ended 31 May 2024

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

Credit Risk
The company considers that the principal relevant financial assets here are trade debtors. Company 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 company 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 company's main relevant financial liabilities are considered to include hire purchase contracts and bank and other loans along with invoice finance and bank overdraft facilities.

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

The company 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 these include finance charges that are calculated on the basis of margins over the relevant bank base rate. The company aims to manage interest rate risk on invoice discounting and bank overdraft balances by managing the funds drawndown.

Liquidity and Cashflow Risk
As regards liquidity risk this is the risk that the company encounters difficulty in meeting obligations associated with financial liabilities. The company 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

R. Thornton & Co. Ltd. (Registered number: 02745517)

Report of the Directors
for the Year Ended 31 May 2024

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

DIVIDENDS
No dividends will be distributed for the year ended 31 May 2024.

FUTURE DEVELOPMENTS
As regards day-to-day operations the management of the company 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 part of a property that is held by the parent company, 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 (including R. Thornton & Co. Ltd); 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 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
N Heads

Other changes in directors holding office are as follows:

A Thornton was appointed as a director after 31 May 2024 but prior to the date of this report.

FINANCIAL INSTRUMENTS
The company's operations expose it to a variety of financial risks that include the effects of credit risk, interest risk and liquidity risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company where appropriate. See the Strategic Report for further information.

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen, in accordance with Companies Act 2006 s414C(11), to set out in the 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 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 of the profit or loss of the company 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.


R. Thornton & Co. Ltd. (Registered number: 02745517)

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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company'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 company'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
R. Thornton & Co. Ltd.

Opinion
We have audited the financial statements of R. Thornton & Co. Ltd. (the 'company') for the year ended 31 May 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31 May 2024 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern
We draw attention to note 2 in the financial statements, which - in the Going Concern section - indicates that the company exhibited a loss of £(692,692) during the year ended 31 May 2024 with net liabilities and net current liabilities at that date being £(204,099) and £(1,708,815) respectively.

It is also noted in note 2 that R. Thornton & Co. Ltd (the Company) is a member of the M.J. Hickey Plant Hire & Contracts Limited group of companies (the Group) and that the Company receives financial support from other members of the Group when required. The directors of the Company hence note that they consider that the going concern position of the Company should be assessed in the context of the going concern position of the wider Group.

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 including:
- a potential Group 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.

Material uncertainty related to going concern - continued
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 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
R. Thornton & Co. Ltd.


Other information
The directors are responsible for the other information. The other information comprises the information in the 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of 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 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 company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
R. Thornton & Co. Ltd.


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 company through discussions with the management and from our knowledge and experience of the sector in which the company 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 company, 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 company'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.

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 events and transactions in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involved 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
R. Thornton & Co. Ltd.


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

R. Thornton & Co. Ltd. (Registered number: 02745517)

Statement of Comprehensive Income
for the Year Ended 31 May 2024

2024 2023
as restated
Notes £    £   

TURNOVER 4 7,235,175 8,841,361

Cost of sales (7,153,988 ) (8,580,831 )
GROSS PROFIT 81,187 260,530

Administrative expenses (587,705 ) (731,019 )
OPERATING LOSS 6 (506,518 ) (470,489 )

Interest receivable and similar income 8 1,489 -
(505,029 ) (470,489 )

Interest payable and similar expenses 9 (187,663 ) (159,012 )
LOSS BEFORE TAXATION (692,692 ) (629,501 )

Tax on loss 10 - 104,079
LOSS FOR THE FINANCIAL YEAR (692,692 ) (525,422 )

OTHER COMPREHENSIVE INCOME
Revaluation of property - 105,472
Income tax relating to other comprehensive
income

-

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

-

105,472
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(692,692

)

(419,950

)
Prior year adjustment 12 132,472 98,973
TOTAL COMPREHENSIVE INCOME
SINCE LAST ANNUAL REPORT

(560,220

)

(320,977

)

R. Thornton & Co. Ltd. (Registered number: 02745517)

Balance Sheet
31 May 2024

2024 2023
as restated
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 13 2,249,271 2,421,998
Investments 14 557,989 557,989
Investment property 15 200,000 200,000
3,007,260 3,179,987

CURRENT ASSETS
Stocks 16 146,004 154,548
Debtors 17 1,787,068 1,689,602
1,933,072 1,844,150
CREDITORS
Amounts falling due within one year 18 3,641,887 3,411,603
NET CURRENT LIABILITIES (1,708,815 ) (1,567,453 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,298,445

1,612,534

CREDITORS
Amounts falling due after more than one
year

19

1,502,544

1,123,941
NET (LIABILITIES)/ASSETS (204,099 ) 488,593

CAPITAL AND RESERVES
Called up share capital 23 54,100 54,100
Revaluation reserve 24 105,472 105,472
Other reserves 24 254,862 254,862
Retained earnings 24 (618,533 ) 74,159
SHAREHOLDERS' FUNDS (204,099 ) 488,593

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


R. Thornton & Co. Ltd. (Registered number: 02745517)

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

Called up
share Retained Revaluation Other Total
capital earnings reserve reserves equity
£    £    £    £    £   
Balance at 1 June 2022 54,100 620,611 - - 674,711
Prior year adjustment - 98,973 - - 98,973
As restated 54,100 719,584 - - 773,684

Changes in equity
Dividends - (120,003 ) - - (120,003 )
Total comprehensive income - (657,894 ) 105,472 - (552,422 )
Capital contribution - - - 254,862 254,862
Balance at 31 May 2023 54,100 (58,313 ) 105,472 254,862 356,121
Prior year adjustment - 132,472 - - 132,472
As restated 54,100 74,159 105,472 254,862 488,593

Changes in equity
Total comprehensive income - (692,692 ) - - (692,692 )
Balance at 31 May 2024 54,100 (618,533 ) 105,472 254,862 (204,099 )

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

1. STATUTORY INFORMATION

R. Thornton & Co. Ltd. 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 Company 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 modified to include certain items at fair value.

GOING CONCERN
R. Thornton & Co Ltd exhibited a loss of £(692,692) during the year ended 31 May 2024 with net liabilities and net current liabilities at that date being £(204,099) and £(1,708,815) respectively.

Included within these net liability and net current liability figures is £(571,978) of amounts that R. Thornton & Co. Ltd owes to its immediate subsidiary company Emmex Freight Services Ltd.

It is noted that R. Thornton & Co. Ltd (the Company) is a member of the M.J. Hickey Plant Hire & Contracts Limited group of companies (the Group) and - in the context of the net liability and net current liability positions detailed above - the Company receives financial support from other members of the Group when required. The Directors of the Company hence consider that the going concern position of the Company should be assessed in the context of the going concern position of the wider Group.

Future Developments
The Group is currently in negotiations with a third party regarding the potential sale of part of a property that is held by the parent company, 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 of which circa £450k relates to the Company. The Group and Company are 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 Group property transaction discussed above.

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.


R. Thornton & Co. Ltd. (Registered number: 02745517)

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

Following on from the improvement in EBITDA performance noted since the balance sheet date for both the Company and the Group the Company and Group 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 Company and Group 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 fact that the Company receives financial support from other members of the Group when required and noting the position and uncertainties that exist at present in connection with:
- the Group property transaction;
- the discussions with HMRC; and
- the Company and Group 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 ability to continue as a going concern and that, therefore, the Company may be unable to realise its assets and discharge its liabilities in the normal course of business.

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

As also noted above the Company and Group are moreover 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 Company has adequate resources - to include financial support from other members of the Group when required - 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 financial statements). As such the Company therefore continues to adopt the going concern basis in preparing these financial statements.

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

2. ACCOUNTING POLICIES - continued

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

The parent company in whose financial statements R. Thornton & Co Ltd.'s financial information is consolidated is M.J. Hickey Plant Hire & Contracts Limited, Linton Industrial Estate, Linton, Morpeth, Northumberland, NE61 5SD. Copies of the consolidated financial statements can be obtained from Companies House.

PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
The financial statements contain information about R. Thornton & Co. Ltd. as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, M.J. Hickey Plant Hire & Contracts Limited, Linton Industrial Estate, Linton, Morpeth, Northumberland, NE61 5SD, United Kingdom.

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

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

Improvements to property - at 10% on cost.
Plant and machinery - at variable rates on reducing balance.

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

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.

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

2. ACCOUNTING POLICIES - continued

FINANCIAL INSTRUMENTS
The company 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.

TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.


R. Thornton & Co. Ltd. (Registered number: 02745517)

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

2. ACCOUNTING POLICIES - continued
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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

INVOICE FINANCING
The company has an invoice financing facility 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.

SHARE CAPITAL
Called up share capital is allotted, issued and fully paid.

3. 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 financial statements.

Leases
The company 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 company 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 company 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 company to evaluate various matters including for example the nature of applicable obligations and the likelihood of an outflow of resources occurring.

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

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

Investment Property
The fair value of the investment property is based on an indicative third party offer as adjusted for abnormal costs and similar items.

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.

4. TURNOVER

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

20242023
££
Rendering of services (earthworks)1,912,7243,808,633
Rendering of services (tipping)3,719,4503,181,387
Rendering of services (plant hire)1,251,5651,609,688
Rendering of services (personnel and other sales)157,307221,612
Provision of goods (other sales)194,12920,041
7,235,1758,841,361

5. EMPLOYEES AND DIRECTORS
2024 2023
as restated
£    £   
Wages and salaries 1,662,617 1,763,756
Social security costs 169,527 183,227
Other pension costs 32,564 39,025
1,864,708 1,986,008

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

Operational 42 46
Admin 7 7
Directors 2 2
51 55

The directors of the company received no remuneration directly from the company with no retirement benefits accruing under schemes operated by the company.

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

5. EMPLOYEES AND DIRECTORS - continued

2024 2023
as restated
£    £   
Directors' remuneration - -

6. OPERATING LOSS

The operating loss is stated after charging:

2024 2023
as restated
£    £   
Other operating leases 28,365 38,937
Depreciation - owned assets 57,682 63,000
Depreciation - assets on hire purchase contracts 322,658 352,326
Loss on disposal of fixed assets 55,648 184,479
Auditors' remuneration 24,277 8,650

7. EXCEPTIONAL ITEMS
2024 2023
as restated
£    £   
Exceptional items (51,171 ) (17,550 )

For both the year ended 31 May 2024 and year ended 31 May 2023 exceptional items (which form part of administrative expenses) relate to abortive management buyout costs, including but not limited to, legal and professional fees.

8. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
as restated
£    £   
Other interest receivable 1,489 -

9. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
as restated
£    £   
Loan interest 79,448 74,662
VAT / PAYE interest 2,983 -
Hire purchase interest 105,232 84,350
187,663 159,012

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

10. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
2024 2023
as restated
£    £   
Current tax:
Under/(over) provision of tax - 5,756

Deferred tax - (109,835 )
Tax on loss - (104,079 )

UK corporation tax has been charged at 25% (2023 - 20%).

RECONCILIATION OF TOTAL TAX CREDIT 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
£    £   
Loss before tax (692,692 ) (629,501 )
Loss multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 20%)

(173,173

)

(125,900

)

Effects of:
Expenses not deductible for tax purposes 16,930 32,886
Capital allowances in excess of depreciation - (83,083 )
Depreciation in excess of capital allowances 79,173 -
Adjustments to tax charge in respect of previous periods - 5,756
Unused tax losses carried forward to future periods 77,070 176,097
Origination and reversal of timing differences - (109,835 )
Total tax credit - (104,079 )

Tax effects relating to effects of other comprehensive income

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

2023
Gross Tax Net
£    £    £   
Revaluation of property 105,472 - 105,472

Cumulative unused tax losses exceed accelerated capital allowances as at 31 May 2024 and 31 May 2023. A net deferred tax asset has not been reflected in the financial statements as it is considered there is uncertainty present regarding the timing of utilisation of the excess unused tax losses.

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

11. DIVIDENDS
2024 2023
as restated
£    £   
Ordinary shares of £1 each
Interim - 120,003

No final dividends are proposed.

12. PRIOR YEAR ADJUSTMENT

During the year ended 31 May 2024 the Directors reviewed the treatment of certain income receivable from and other transactions with the wholly owned subsidiary company Emmex Freight Services Ltd. Following the review the Directors have restated the figures for comparative period ended 31 May 2023 under section 10 of FRS 102 to recognise a reduction in finance costs of £25,540 and additional turnover of £35,927 with an associated reduction in group creditors of £25,540 and increase in accrued income of £35,927.

In addition, 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 was increased by £37,773; cost of sales expenses for the year ended 31 May 2023 increased by £5,667 with administrative expenses decreasing by £35,328; and the carrying value of tangible fixed assets at 31 May 2023 increased by £67,434.

Finally the Directors also reassessed the carrying value of certain creditor balances and identified a small number of amendments. The Directors have consequently restated the figures for comparative periods as follows: the carrying value of hire purchase liabilities and group creditors at 1 June 2022 have been reduced by £31,200 and £30,000 respectively; cost of sales expenses for the year ended 31 May 2023 reduced by £35,368; and the carrying value of social security and other taxes creditors at 31 May 2023 reduced by £35,368 (in addition to the reductions in hire purchase liabilities and group creditors recognised at 1 June 2022).

The Directors also updated corporation tax calculations as a consequence of the above with corporation tax charges for the year ended 31 May 2023 and the closing corporation tax creditor decreasing by £5,976.

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. The reclassifications resulted in a £23,100 decrease in bank loans and overdrafts and an offsetting increase in other loans together with a £8,840 decrease in trade creditors and an offsetting increase in other creditors.

Overall: net assets at 1 June 2022 have been updated from £674,711 (as originally stated) to £773,684 (as restated); the profit for the year ended 31 May 2023 has been updated from £(552,422) (as originally stated) to £(419,950) (as restated); and net assets at 31 May 2023 have been updated from £257,148 (as originally stated) to £488,593 (as restated).

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

13. TANGIBLE FIXED ASSETS
Improvements
to Plant and
property machinery Totals
£    £    £   
COST
At 1 June 2023 75,280 3,635,307 3,710,587
Additions - 1,149,422 1,149,422
Disposals - (1,768,981 ) (1,768,981 )
At 31 May 2024 75,280 3,015,748 3,091,028
DEPRECIATION
At 1 June 2023 5,019 1,283,570 1,288,589
Charge for year 7,528 372,812 380,340
Eliminated on disposal - (827,172 ) (827,172 )
At 31 May 2024 12,547 829,210 841,757
NET BOOK VALUE
At 31 May 2024 62,733 2,186,538 2,249,271
At 31 May 2023 70,261 2,351,737 2,421,998

The net carrying amount of assets held under finance leases (hire purchase contracts) is:
- included in plant and machinery £2,108,817 (2023: £1,863,331).


14. FIXED ASSET INVESTMENTS
Shares in Interest
group in
undertakings associate Totals
£    £    £   
COST
At 1 June 2023
and 31 May 2024 557,964 25 557,989
NET BOOK VALUE
At 31 May 2024 557,964 25 557,989
At 31 May 2023 557,964 25 557,989

Interest in associate comprises 25% of the ordinary share capital of Lynefield Park Limited as acquired on the company's incorporation on 11 January 2021. The investment is recorded at the nominal value of the shares issued.

The registered office of Lynefield Park Limited is Unit 1 Linton Industrial Estate, Linton, Morpeth, Northumberland, England, NE61 5SD.

In addition, shares in group undertakings comprises 100% of the ordinary share capital of Emmex Freight Services Limited as acquired on 9 November 2022. The investment is recorded at the cash price paid for the ordinary shares of £557,964.

The registered office of Emmex Freight Services Limited is Lynefield Park, Ashington, Northumberland, United Kingdom, NE63 9YH.

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

15. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 June 2023
and 31 May 2024 200,000
NET BOOK VALUE
At 31 May 2024 200,000
At 31 May 2023 200,000

The fair value of the investment property has been derived with reference to an indicative third party offer as adjusted for estimated deductions for abnormal costs and similar items.

16. STOCKS
2024 2023
as restated
£    £   
Raw materials and consumables 36,905 34,000
Work-in-progress 109,099 120,548
146,004 154,548

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
as restated
£    £   
Trade debtors 1,267,672 1,404,409
Amounts owed by group undertakings 117,988 -
Amounts owed by participating interests 96,730 92,995
Other debtors 82,681 90,333
Directors' current accounts 94,987 56,999
Prepayments and accrued income 127,010 44,866
1,787,068 1,689,602

Included within trade debtors are balances totalling £1,192,387 (2023: £1,216,279) that are subject to invoice discounting 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 £746,633 (2023: £766,263).

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
as restated
£    £   
Bank loans and overdrafts (see note 20) 485,406 300,849
Other loans (see note 20) 69,129 23,100
Hire purchase contracts (see note 21) 463,538 471,402
Trade creditors 746,188 717,048
Amounts owed to group undertakings 571,978 738,905
Tax 32,058 19,237
Social security and other taxes 60,293 36,712
VAT 142,172 149,687
Other creditors 787,963 795,283
Accruals and deferred income 283,162 159,380
3,641,887 3,411,603

19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
as restated
£    £   
Bank loans (see note 20) 12,547 78,334
Hire purchase contracts (see note 21) 1,413,185 1,045,607
Accruals and deferred income 76,812 -
1,502,544 1,123,941

20. LOANS

An analysis of the maturity of loans is given below:

2024 2023
as restated
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 414,386 235,547
Bank loans 71,020 65,302
Other loans 69,129 23,100
554,535 323,949

Amounts falling due between one and two years:
Bank loans - 1-2 years 12,547 72,028

Amounts falling due between two and five years:
Bank loans - 2-5 years - 6,306

The fixed interest rate applying to the bank loan is 10.10% per annum. Capital and interest payments are paid monthly with the final repayment date of the loan expected to be July 2025.

The fixed interest rate applying to the other loan is 44.88% per annum. Capital and interest payments are paid monthly with the final repayment date of the loan expected to be June 2024.

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

21. LEASING AGREEMENTS

Hire Purchase (as lessee)
The company uses hire purchases 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:

20242023
££
Amounts repayable:
Within one year618,756650,634
Between one and five years1,653,0911,024,089

Less finance charges allocated to future periods(395,124)(157,714)
1,876,7231,517,009


Sale and Leaseback
During the year to 31 May 2024 the company entered into a sale and leaseback transaction. 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)
Minimum lease payments under non-cancellable operating leases fall due as follows:

20242023
££
Within one year20,70820,708
Between one and five years45,12365,831
In more than five years--
65,83186,539

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

22. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
as restated
£    £   
Bank overdrafts 414,386 235,547
Hire purchase contracts 1,876,723 1,517,009
Other creditors 746,633 766,263
3,037,742 2,518,819

Obligations under hire purchase agreements are secured on the relevant assets.

The bank overdraft and other creditor amounts are secured by charges dated 29 September 2008 and 16 January 2020 that contain a fixed charge over applicable assets, a floating charge over all of the property and undertakings of the company and a negative pledge.

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

23. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: as restated
£    £   
54,000 Ordinary £1 54,000 54,000
100 'A' Ordinary £1 100 100
54,100 54,100

Each Ordinary share is entitled to one vote in any circumstances and is also entitled pari passu to dividend payments or any other distribution. In addition, each Ordinary share is entitled pari passu to participate in a distribution arising from a winding up of the company.

'A' Ordinary shares do not have voting rights. Each 'A' Ordinary share is entitled pari passu to dividend payments for that class of share only and is not entitled to participate in a distribution arising from a winding up of the company.

24. RESERVES
Retained Revaluation Other
earnings reserve reserves Totals
£    £    £    £   

At 1 June 2023 (58,313 ) 105,472 254,862 302,021
Prior year adjustment 132,472 132,472
74,159 434,493
Deficit for the year (692,692 ) (692,692 )
At 31 May 2024 (618,533 ) 105,472 254,862 (258,199 )

Other reserves relate to a capital contribution that arose in the comparative year ended 31 May 2023 on the release of amounts owed to the immediate parent company of R. Thornton & Co. Ltd.

25. PENSION COMMITMENTS

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 £32,564 (2023: £39,025) of which £10,579 was outstanding as at 31 May 2024 (2023: £8,837).

26. CONTINGENT LIABILITIES

R. Thornton & Co. Ltd is a guarantor of certain debt obligations of its immediate parent company MJ Hickey Plant Hire & Contracts Limited. The relevant obligations outstanding at the balance sheet date totalled circa £2,250,000.

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

27. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following loans to directors subsisted during the years ended 31 May 2024 and 31 May 2023. For the year ended 31 May 2024 only interest was charged at the prevailing rate of interest and the balances are unsecured with no fixed repayment terms.

20242023
££

Balance outstanding at the start of the year56,99943,999
Advances in the year37,98813,000
Repayments in the year--
Balance outstanding at the end of the year94,98756,999

R. Thornton & Co. Ltd. (Registered number: 02745517)

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

28. RELATED PARTY DISCLOSURES

During the year the immediate parent company was M.J. Hickey Plant Hire & Contracts Limited. The parent of the smallest group of which R. Thornton & Co. Ltd is a member and for which consolidated financial statements are drawn up is M.J. Hickey Plant Hire & Contracts Limited, a company incorporated in England and Wales with a registered office at Linton Industrial Estate, Linton, Morpeth, Northumberland, NE61 5SD.

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, not to disclose related party transactions with wholly owned subsidiaries within the group.

£571,978 of amounts due to such wholly owned subsidiaries at 31 May 2024 and £542,533 at 31 May 2023 are included within amounts owed to group undertakings under creditors: amounts falling due within one year. In addition £96,684 (2023; £35,927) of prepayments and accrued income balances relate to such wholly owned subsidiaries.

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










Sales to
related party




Expenses from
related party



Amounts
provided
against
Balance
outstanding at
31 May in
amount owed by
/(to group
undertakings





)
Balance
outstanding at 31
May in amount
owed by/(to
participating
interests





)
Entities with control
over the entity

2024£41,289£543,333-£117,988-
2023£137,271£1,293,006-(£196,372)-

Entities that provide
key management
personnel services to
the entity



2024-£77,500---
2023-£77,500---

Other related parties
2024£10,912£17,715--£96,730
2023£205,304£72,458£41,781-£92,995

In addition to the above: £17,781 (2023: £nil) of accruals and deferred income balances relate to balances with entities with control over the entity; and £75,280 (2023: £75,280) of accruals and deferred income balances relate to balances with other related parties.

Effective during the comparative year M.J. Hickey Plant Hire & Contracts Limited released £254,862 of amounts owed to it by R. Thornton & Co. Ltd. The release was treated as a capital contribution by M.J. Hickey Plant Hire & Contracts Limited and recorded in other reserves (see the reserves note above).

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

29. POST BALANCE SHEET EVENTS

Since the balance sheet date the company has purchased and disposed of various tangible fixed assets in the normal course of trading.

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