T FRENCH & SON LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
Company registration number SC292873 (Scotland)
T FRENCH & SON LTD
COMPANY INFORMATION
Directors
Mr Thomas French Snr
Mrs Elizabeth French
Mrs Elizabeth McMenemy
Mr Thomas French Jnr
Mrs Sandra Graham
Secretary
Mrs Elizabeth McMenemy
Company number
SC292873
Registered office
Stonebriggs
Cronberry
Cumnock
Ayrshire
KA18 3LP
Auditor
William Duncan + Co (Audit) Ltd
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY
Business address
Stonebriggs
Cronberry
Cumnock
Ayrshire
KA18 3LP
Bankers
Bank of Scotland
43/45 Townhead Street
Cumnock
Ayrshire
KA18 1LF
Solicitors
Burness Paull LLP
31 York Street
Glasgow
G2 8AS
T FRENCH & SON LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
T FRENCH & SON LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
Fair review of the business
The principal activity of the company was that of road haulage contractors.
The directors are pleased to report continued similar levels in turnover during the year to the previous year of £12.5m. During the current year, due to the economic environment there continued to be price pressures on some of the direct costs the business incurs, such as tyres and fuel. However the directors have kept a tight control of these throughout the year, which has allowed them to minimise the impact on the gross profit margin. Overall this has resulted in a net profit before tax of £732,185, compared with £798,913 in the 31 October 2023 year end.
Principal risks and uncertainties
The main risks arising from the company's operations are liquidity risk, interest rate risk and credit risk. The directors review and agree policies for managing each risk and these are summarised below:-
Liquidity risk
The company manages financial risk by careful monitoring of profitability and cashflow and by ensuring that there is sufficient liquidity available to meet foreseeable needs. Short-term flexibility is achieved by overdraft facility.
The company finances investment in fixed assets primarily through finance lease and hire purchase contracts, as set out in note 19 to the financial statements.
Interest rate risk
The company finances its operations through reinvestment of profits, hire purchase contracts and overdraft facility. The company manages exposure to interest rate fluctuations on hire purchase contracts by entering into fixed rate agreements.
Credit risk
The company's credit risk arises from exposure to trade debtors. In order to manage credit risk, the directors set credit limits for customers based on credit agency references and these are reviewed on a regular basis taking into account the collection history.
Mrs Elizabeth McMenemy
Director
21 July 2025
T FRENCH & SON LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr Thomas French Snr
Mrs Elizabeth French
Mrs Elizabeth McMenemy
Mr Thomas French Jnr
Mrs Sandra Graham
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £141,000. The directors do not recommend payment of a final dividend.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mrs Elizabeth McMenemy
Director
21 July 2025
T FRENCH & SON LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
T FRENCH & SON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF T FRENCH & SON LTD
- 4 -
Opinion
We have audited the financial statements of T French & Son Ltd (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
T FRENCH & SON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF T FRENCH & SON LTD (CONTINUED)
- 5 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.
Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
T FRENCH & SON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF T FRENCH & SON LTD (CONTINUED)
- 6 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr David Young CA (Senior Statutory Auditor)
For and on behalf of William Duncan + Co (Audit) Ltd, Statutory Auditor
Accountants
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY
21 July 2025
T FRENCH & SON LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
12,533,834
12,782,097
Cost of sales
(11,414,143)
(11,489,509)
Gross profit
1,119,691
1,292,588
Administrative expenses
(479,299)
(495,467)
Other operating income
17,288
Operating profit
4
657,680
797,121
Interest receivable and similar income
7
11,094
7,251
Interest payable and similar expenses
8
(5,413)
(7,550)
Adjustments to the fair value of financial assets
9
68,824
2,091
Profit before taxation
732,185
798,913
Tax on profit
10
(167,280)
(182,411)
Profit for the financial year
564,905
616,502
The profit and loss account has been prepared on the basis that all operations are continuing operations.
T FRENCH & SON LTD
BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
4,199,134
4,147,674
Investments
14
469,766
729,847
4,668,900
4,877,521
Current assets
Stocks
16
72,656
54,325
Debtors
17
2,107,323
2,247,820
Cash at bank and in hand
1,469,664
1,062,644
3,649,643
3,364,789
Creditors: amounts falling due within one year
18
(1,336,621)
(1,778,299)
Net current assets
2,313,022
1,586,490
Total assets less current liabilities
6,981,922
6,464,011
Creditors: amounts falling due after more than one year
19
(9,497)
Provisions for liabilities
(874,099)
(770,596)
Net assets
6,107,823
5,683,918
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
6,107,723
5,683,818
Total equity
6,107,823
5,683,918
The financial statements were approved by the board of directors and authorised for issue on 21 July 2025 and are signed on its behalf by:
Mrs Elizabeth McMenemy
Director
Company Registration No. SC292873
T FRENCH & SON LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
100
22,432
5,193,577
5,216,109
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
616,502
616,502
Dividends
11
-
-
(148,693)
(148,693)
Transfers
-
(22,432)
22,432
-
Balance at 31 October 2023
100
5,683,818
5,683,918
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
564,905
564,905
Dividends
11
-
-
(141,000)
(141,000)
Balance at 31 October 2024
100
6,107,723
6,107,823
T FRENCH & SON LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,386,792
1,721,641
Interest paid
(5,413)
(7,550)
Income taxes paid
(70,292)
Net cash inflow from operating activities
1,381,379
1,643,799
Investing activities
Purchase of tangible fixed assets
(1,093,116)
(1,625,055)
Proceeds on disposal of tangible fixed assets
111,047
226,000
Purchase of fixed asset investments
(62,869)
Proceeds on disposal of fixed asset investments
281,732
(49,290)
Proceeds from other investments and loans
110,042
(17,880)
Interest received
81
Dividends received
11,094
7,170
Net cash used in investing activities
(642,070)
(1,458,974)
Financing activities
Repayment of borrowings
(55,772)
27,608
Payment of finance leases obligations
(135,517)
(191,325)
Dividends paid
(141,000)
(148,693)
Net cash used in financing activities
(332,289)
(312,410)
Net increase/(decrease) in cash and cash equivalents
407,020
(127,585)
Cash and cash equivalents at beginning of year
1,062,644
1,190,229
Cash and cash equivalents at end of year
1,469,664
1,062,644
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
1
Accounting policies
Company information
T French & Son Ltd is a private company limited by shares incorporated in Scotland. The registered office is Stonebriggs, Cronberry, Cumnock, Ayrshire, KA18 3LP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of fixed asset investments and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for the provision of road haulage services net of VAT and trade discounts. Revenue from the sale of road haulage services is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on date of delivery of services), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
10% straight line
Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
15% reducing balance
Motor vehicles
20-25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
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.
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks are stated at the lower of cost and net realisable value.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
As lessee
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Haulage
11,649,317
12,012,562
Storage
111,420
122,831
ATF
554,255
436,966
Training
218,842
209,738
12,533,834
12,782,097
2024
2023
£
£
Other revenue
Interest income
-
81
Dividends received
11,094
7,170
Grants received
5,500
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(5,500)
-
Fees payable to the company's auditor for the audit of the company's financial statements
9,640
9,100
Depreciation of owned tangible fixed assets
982,619
815,069
Depreciation of tangible fixed assets held under finance leases
-
80,712
Profit on disposal of tangible fixed assets
(52,010)
(124,529)
Impairment of stocks recognised or reversed
39,033
34,799
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Drivers & Workshop
84
88
Traffic Office & Administration
6
6
Management
3
3
Total
93
97
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,779,828
3,641,434
Social security costs
394,627
374,091
Pension costs
177,641
138,781
4,352,096
4,154,306
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
38,108
33,150
Company pension contributions to defined contribution schemes
77,360
47,360
115,468
80,510
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
81
Other income from investments
Dividends received
11,094
7,170
Total income
11,094
7,251
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
5,413
7,550
9
Adjustments to the fair value of financial assets
2024
2023
£
£
Fair value gains/(losses) on financial assets
Change in value of financial assets held at fair value through profit or loss
68,824
2,091
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
63,777
Deferred tax
Origination and reversal of timing differences
103,503
182,411
Total tax charge
167,280
182,411
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
732,185
798,913
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
183,046
199,728
Tax effect of expenses that are not deductible in determining taxable profit
(16,996)
2,435
Permanent capital allowances in excess of depreciation
(25,434)
Depreciation on assets not qualifying for tax allowances
3,096
7,475
Other permanent differences
907
Dividend income
(2,773)
(1,793)
Taxation charge for the year
167,280
182,411
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
11
Dividends
2024
2023
£
£
Interim paid
141,000
148,693
12
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Stocks
16
39,033
34,799
Recognised in:
Cost of sales
39,033
34,799
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
13
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2023
298,991
322,306
179,507
9,816,240
10,617,044
Additions
57,335
10,595
635
1,024,551
1,093,116
Disposals
(562,976)
(562,976)
At 31 October 2024
356,326
332,901
180,142
10,277,815
11,147,184
Depreciation and impairment
At 1 November 2023
241,883
234,995
119,571
5,872,921
6,469,370
Depreciation charged in the year
12,384
14,156
9,014
947,065
982,619
Eliminated in respect of disposals
(503,939)
(503,939)
At 31 October 2024
254,267
249,151
128,585
6,316,047
6,948,050
Carrying amount
At 31 October 2024
102,059
83,750
51,557
3,961,768
4,199,134
At 31 October 2023
57,108
87,311
59,936
3,943,319
4,147,674
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
13
Tangible fixed assets
(Continued)
- 19 -
Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:
2024
2023
£
£
Motor vehicles
322,850
14
Fixed asset investments
2024
2023
£
£
Listed investments
469,766
729,847
Fixed asset investments revalued
Fixed asset investments comprise listed investments which are stated at market value and have the historical cost basis amount of £414,465 (2023 - £705,325).
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 November 2023
729,847
Additions
71,095
Valuation changes
68,824
Disposals
(400,000)
At 31 October 2024
469,766
Carrying amount
At 31 October 2024
469,766
At 31 October 2023
729,847
15
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,866,832
2,016,375
Equity instruments measured at valuation
469,766
729,847
Carrying amount of financial liabilities
Measured at amortised cost
800,810
1,341,901
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
16
Stocks
2024
2023
£
£
Fuel and consumables
72,656
54,325
17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,856,734
1,979,490
Other debtors
10,098
36,885
Prepayments and accrued income
240,491
231,445
2,107,323
2,247,820
18
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
21
135,517
Other borrowings
20
90,730
137,005
Trade creditors
468,896
827,161
Corporation tax
63,777
Other taxation and social security
472,034
445,895
Other creditors
90
90
Accruals and deferred income
241,094
232,631
1,336,621
1,778,299
The aggregate amount of creditors which security has been amounted to £NIL (2023 - £135,517)
A bond and floating charge has been granted to the bank over the whole assets of the Company.
19
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Other borrowings
20
9,497
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
20
Loans and overdrafts
2024
2023
£
£
Other loans
90,730
146,502
Payable within one year
90,730
137,005
Payable after one year
9,497
21
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
135,517
Hire purchase liabilities are secured over the assets concerned.
22
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
874,099
770,596
2024
Movements in the year:
£
Liability at 1 November 2023
770,596
Charge to profit or loss
103,503
Liability at 31 October 2024
874,099
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
177,641
138,781
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
24
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
25
Events after the reporting date
There is an ongoing legal case where funds may be due to T French & Son Ltd. We don't have an exact quantification of the value at this stage.
26
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Included within 'Creditors' at note 18 are amounts owed to the directors of £90,730 (2023 - £146,502). The loans are interest free and are repayable on demand.
The company occupies premises and workshops owned by Mr T French Snr and Mrs E French, directors. There was no charge made to the company in the year for use of the site.
During the year the company received sub-contractor services to the value of £111,419 (2023 - £130,721) from a company under common control. At the balance sheet date the sum of £21,286 remained outstanding (2023 - £42,933).
No guarantees have been given or received.
27
Cash generated from operations
2024
2023
£
£
Profit after taxation
564,905
616,502
Adjustments for:
Taxation charged
167,280
182,411
Finance costs
5,413
7,550
Investment income
(11,094)
(7,251)
Gain on disposal of tangible fixed assets
(52,010)
(124,529)
Depreciation and impairment of tangible fixed assets
982,619
895,781
Other gains and losses
(68,824)
(2,091)
Movements in working capital:
(Increase)/decrease in stocks
(18,331)
29,640
Decrease/(increase) in debtors
140,497
(56,911)
(Decrease)/increase in creditors
(323,663)
180,539
Cash generated from operations
1,386,792
1,721,641
T FRENCH & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
28
Analysis of changes in net funds
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
1,062,644
407,020
1,469,664
Borrowings excluding overdrafts
(146,502)
55,772
(90,730)
Lease liabilities
(135,517)
135,517
-
780,625
598,309
1,378,934
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