The director presents the strategic report for the Company for the period 13 December 2023 (date of incorporation) to 31 January 2025 and the Group for the year ended 31 January 2025.
On 22 December 2023, following a share for share exchange, Jet Plant Hire Group Holdings Limited was introduced as the new parent Company of the Group.
The introduction of this new holding company as the parent for the Group constitutes a Group reconstruction and these transitions have been accounted for using merger accounting principles. Therefore, although the Group reconstruction did not become effective until December 2023, the consolidated financial statements of Jet Plant Hire Group Holdings Limited are presented as if the Group had existed in this format in both years and had always been part of the same Group. Accordingly, the results of the Group for the entire year ended 31 January 2025 are shown in the consolidated income statement and the comparative figures for the year ended 31 January 2024 are also prepared on this basis.
The group's principal activities during the year continued to be the supply of road planing contracting services to the Highways Infrastructure Industry and Local Authorities. There was a 12.6% increase in turnover during the year with the gross profit margin improving to 28.1%. Administrative expenses have been controlled to a similar level as 2024 resulting in an improvement in Operating Profit to £1,382,057 and Net Profit before tax of £1,222,379 for the year.
Inflation started to fall in the early part of the year and remain relatively stable with only small movements and this brought with it some certainty on costs and an increased confidence throughout the highways infrastructure sector to invest in maintaining the highways network.
We continued to invest in capital equipment to support our operations with the latest technology and with a focus on sustainability. In line with our growth strategy we are now operating 30 Wirtgen cold milling machines and this investment allowed for our sales growth of 12.6% while also improving our gross profit margins.
During the year we have strengthened our board with Simon Bithell taking the role of Operations Director and John Lee joining as Transport Director with Ian Mitchell continuing as Non-Executive Director. They all have a wealth of experience operating at board level in large and multinational business and will drive our ambitious growth plans for the coming years.
Our ESG strategy has been determined over the past months and is focussed on addressing the environmental, social and governance challenges facing our stakeholders, and the wider community. We are focussed on long term business sustainability and maintaining ethical and compliant business practices. We created a baseline in 2021 of our emissions and formulated an ambitious strategy on how we support the global target from COP26 of no more than a 1.5 degree rise in climate temperatures. We have continued to drive towards our targets with a relative reduction of 31% in CO2 emissions and our use of fossil fuel by 34% compared with our baseline of 2021. All of our roadplaners are now being fuelled with ethically and sustainably certificated HVO which is having a big impact in reducing our well to wheel CO2 emissions.
We made a commitment to donate 1% of our Net Profits to local charities chosen by our employees and these included St Richards Hospice, The Dogs Trust, Caring Hands in The Vale, Campden Home Nursing, John Martin, Rowcroft Hospice, HITS and Animals in Distress.
Safety remains at the top of our agenda and we maintained our RoSPA Gold Medals for Safety Achievement and also Fleet Safety. We won an industry award at the Motor Transport Awards for Safety Performance as well as being shortlisted for Operational Excellence.
We have spent time asking our customers what they think of us and through a survey of our top 100 customers by turnover we achieved a Net Promoter Score of 85. The Net Promoter Score is a metric that measures customer loyalty and satisfaction by asking customers how likely they are to recommend our services to others. The Retently 2024 NPS benchmark for Construction is a score of 37.
The board has a proactive approach to risk management with the aim of protecting its employees and customers, and safeguarding the interests of the group and its stakeholders. The group has specific policies to ensure that risks are properly evaluated and managed at appropriate levels in the business. The key risks affecting the group are considered to be competitive pressures and any changes in the Government's and Local Authorities' short and long term highways infrastructure maintenance budgets.
The group's principal financial instruments comprise long term bank loans, finance lease contracts and cash and short-term deposits. The group also has trade debtors and trade creditors which arise directly from its operations. The company does not enter into derivative contracts.
The main risks arising from the financial instruments are interest rate risk, credit risk and liquidity risk.
Interest rate risk
The group's exposure to market risk for changes in the interest rates relates primarily to its long term bank loans. The group's exposure to interest rate fluctuations on its borrowing is managed by the use of commercial rates linked to LIBOR.
Credit risk
The group only trades with recognised creditworthy third parties. It is group policy that all customers who wish to trade on credit terms are subject to credit vetting procedures. Credit accounts are monitored on an ongoing basis with the result that the group's exposure to bad debts is not significant.
Liquidity risk
The group mitigates liquidity risk by managing cash generation by its operations and applying cash collection targets.
The directors have monitored the performance of the group against key performance indicators including those below:
2025 2024
Turnover (£s) 20,816,455 18,480,321
Gross profit percentage - % 28.15 26.24
Profit before taxation (£s) 1,222.379 970,763
Future Developments
In July 2025 the property was demerged from the trading group so it now sits in Ickarus Limited. The group entered into a 10 year lease to continue operating from its existing premises in Evesham and Newton Abbot.
In July 2024 a new labour government was elected. In their first budget they have pledged to increase funding on highway maintenance for local authorities with an additional £500m per annum over the next years. We are confident that with these measures and their pledge to tackle potholes nationally, local authorities will have enhanced budgets to spend on highways infrastructure maintenance.
We continue to run our Jet School with new trainees starting every 3 months. The aim of Jet School is to produce highly skilled operators fully immersed in our Jet culture and values. We recognise our industry has an ageing workforce and the Jet School will bring young workers into our industry with the specialist training needed to continue our growth plans. We will run 4 cohorts of trainees each year with a guaranteed job at the end of the training program.
We have won and been shortlisted for a number of awards.
Listed in The Sunday Times Best Places to Work for medium sized businesses
RoSPA Fleet Safety Trophy
Shortlisted MTA Operational Excellence
Shortlisted Sustainability Magazine Global Awards ESG Program and Company of the Year
Shortlisted Employee Benefits Awards Best Mental Health Strategy
On behalf of the board
The director presents his annual report and financial statements for the year ended 31 January 2025.
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £450,000. The director does not recommend payment of a further dividend.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
The group's principal financial instruments comprise long term bank loans, finance lease contracts and cash and short term deposits. The group also has trade debtors and trade creditors which arise directly from its operations. The group does not enter into derivative contracts.
The main risks arising from the financial instruments are interest rate risk, credit risk and liquidity risk. These risks are described more fully in the Strategic Report.
Kingscott Dix were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
We have audited the financial statements of Jet Plant Hire Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, included fraud is detailed below:
In assigning the audit engagement team we ensured that collectively they had the appropriate competence and capabilities to identify non-compliance with laws and regulations, highlight areas of the financial statements particularly susceptible to fraud and conduct appropriate additional enquiries where suspicions or weaknesses became evident.
At the planning stage, we assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. This involved preliminary planning discussions with management to obtain their assessment of fraud risk, to identify any incidences of fraud during the year and understand the measures and controls they had taken to combat the possibility of fraud.
Our transaction testing and assessment of controls during the audit provided further evidence as to the validity of this initial assessment with regard to material misstatement and fraud.
We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the Directors, and inspection of the Company's regulatory and legal correspondence. The team were briefed with regard to laws and regulations and remained alert to any indication of non-compliance throughout the audit.
The company is subject to laws and regulations that directly affect the financial statements including legislation covering financial reporting including related companies, distributable profits and taxation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. In assessing this compliance, we evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates in the measurement and presentation of profit within the financial statements.
The company is subject to laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: Health and Safety at Work Act 1974, Provision and Use of Work Equipment Regulations 1998, Environmental Protection Act 1990, employment laws, GDPR and any other regulations recognising the nature of the company’s activities. Audit procedures designed to identify non-compliance with these laws and regulations included enquiry of the Directors and other management and inspection of regulatory and legal correspondence. None of the procedures applied identified actual or suspected non-compliance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. Where an irregularity is non-financial or has not reached a stage where its impact is financial, it is less likely to be identified by auditing procedures. In addition, to the extent that an irregularity involves collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls, there remains a high risk of non-detection. We are not responsible for detecting all instances of non-compliance with laws and regulations and cannot be expected to do so.
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 the Report of the Auditors.
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 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.
The income statement has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £450,000 (2024 - £348,068 profit).
Jet Plant Hire Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 7c Enterprise Way, Vale Park, Evesham, Worcestershire, United Kingdom, WR11 1GS.
The group consists of Jet Plant Hire Group Holdings Limited and all of its subsidiaries.
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 freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
Upon accounting for the group using merger accounting principles, it became apparent that the non distributable revaluation reserve in Jet Plant Hire Holdings Limited had been eliminated on consolidation incorrectly against distributable retained earnings.
Refer to the prior period adjustment note for detail of the correction.
The prior period error did not impact the financial statements of the company, Jet Plant Hire Group Holdings Limited.
The consolidated group financial statements consist of the financial statements of the parent company Jet Plant Hire Group Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
In December 2023, following a share for share exchange, Jet Plant Hire Group Holdings Limited Limited was introduced into the Group as the new parent company for the Group.
The introduction of this new holding company as the parent for the Group constitutes a Group reconstruction and these transitions have been accounted for using merger accounting principles. Therefore, although the Group reconstruction did not become effective until 22 December 2023, the consolidated financial statements of Jet Plant Hire Group Holdings Limited are presented as if the Group had existed in this format in both years and had always been part of the same Group. Accordingly, the results of the Group for the entire year ended 31 Janauary 2025 are shown in the consolidated income statement and the comparative figures for the year ended 31 January 2024 are also prepared on this basis.
All financial statements are made up to 31 January 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include trade and other receivables 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, 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 assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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 non-current 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 statement of financial position 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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The remaining useful economic life of the main production plant assets is considered a source of significant estimation uncertainty.
The fair value of the investment property is reviewed annually by the directors. An independent valuation was undertaken during the year ended 31 January 2025 and the fair value of £1,600,000 was reflected. The previous valuation which reflected the fair value at 31 Janaury 2025 was undertaken during the year ended 31 January 2022.
During the year ended 31 January 2023, land and buildings included within property, plant and equipment were also subject to independent valuations and the fair values totalling £1,915,000 were reflected. The directors believe this valuation remains in place and is accurate at the year ended 31 January 2025 and 2024.
The directors will review the valuations annually and an independent valuation will be undertaken every five years.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Assets held under finance leases or hire purchase contracts are pledged as security against the liabilities to which they relate.
Tangible fixed assets are pledged as security for the bank facilities under a fixed and floating charge.
Independent valuations were undertaken during the year by BNP Paribas on 15 August 2022 and Vickery Holman Property Consultants on 18 July 2023 which formed the basis of the fair market valuations of two properties totalling £1,915,000 for the year ended 31 January 2023. The directors consider that at 31 January 2025 and 2024, the valuations still reflected the fair market value based on commercial properties in the local areas of a similar size, structure and state of repair.
If land and buildings had not been revalued it would, it would have been included at historical costs of £1,242,183 (2024 - £1,242,183) less depreciation of £256,264 (2024 - £244,061).
Investment property comprises a building erected in 2016 on land already owned by the company. An independent valuation was undertaken by BNP Paribas on 15 August 2022 which formed the basis of the fair market valuation for the year ended 31 January 2022. The directors consider that at 31 January 2024, the valuation continued to reflect the fair market value based on commercial properties in the local area of a similar size, structure and state of repair.
During the year ended 31 Janaury 2025, a further valuation was undertaken and this formed the basis of the valuation of the fair market valuation for the year ended 31 January 2025.
The historical cost of investment property is £1,131,240 (2024: £1,131,240).
Investment properties are pledged as security for the bank facilities under a fixed and floating charge.
Details of the company's subsidiaries at 31 January 2025 are as follows:
Registered office addresses (all UK unless otherwise indicated):
Stock is pledged as security for the bank facilities under a fixed and floating charge.
Debtors are pledged as security for the bank facilities under a fixed and floating charge.
The bank loans are secured by a fixed and floating charge over all the assets of the company.
Interest rates range from base rate plus 2.25% to base rate plus 2.75%. Repayments are by monthly instalments and the final repayment on one of the loans is anticpated to be October 2042. However, it is company practice to repay loans over a shorter period than the contractual requirement, where possible.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets.
The hire purchase and finance lease obligations are secured over the assets to which they relate. Interest rates underlying all obligations under finance leases are fixed at respective contract rates ranging from 2.33% to 7.77%. Amounts are repayable by monthly instalments and are all due by 30 November 2028.
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is an analysis of the deferred tax balances (after offset) for financial reporting purposes:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The operating leases represent rental income leases to third parties. All leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms.
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
After the balance sheet date, a restructure of the group in which the company is a member is being
undertaken. A capital reduction demerger is being completed which will result in commercial properties totalling £3,500,000 at 31 January 2025 being transferred. At 31 January 2025, deferred tax relating to the commercial properties has not been recognised as the transfer will take place on a no gain/ no loss basis.
Dividends totalling £271,978 were paid in the year in respect of shares held by the company's director.