1.
General Information
Hodges Coaches (Sandhurst) Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
00739970
. The registered office is Deepnell House, 100 Yorktown Road, Sandhurst, Berkshire, GU47 9BH.
2.
Accounting Policies
2.1.
Basis of Preparation of 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The financial statements have been prepared in accordance with accounting standards generally accepted in the United Kingdom and the Companies Act 2006. Accounting standards generally accepted in the United Kingdom in preparing financial statements giving a true and fair view are those published by the Institute of Chartered Accountants in England and Wales and issued by the Accounting Standards Board.
2.2.
Going Concern Disclosure
In the directors' opinion, and to the best of their knowledge, the continued unsettled economic conditions arising from geo-political eventsin Eastern Europe, restrictions in supply chains from Europe, fleet investment obligations resulting from changes in the company'sregulatory environment and increases in interest rates will not have a material adverse impact on the company's ability to continue as agoing concern.
The company has financial resources available which the directors believe will enable the company to manage its business riskssuccessfully.
The directors have a reasonable expectation that the company has adequate resources, to meet its obligations for a period of at least 12 months from the date of approval of the financial statements, and to continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
2.3.
Significant judgements and estimations
Judgments and key sources of estimation uncertainty -
The directors consider the accounting estimates and assumptions below to be its critical accounting estimates and judgements:
Impairment of Trade Debtors
The company trades with a large and varied number of customers on credit terms. Some debts due will not be paid through the default of asmall number of customers. The company uses estimates based on historical experience and current information in determining the level of debts for which an impairment charge is required. The level of impairment required is reviewed on an ongoing basis. The total amount of trade debtors is £105,878 (2023: £79,640).
Useful Lives of Tangible and Intangible Fixed Assets
Long-lived assets comprising primarily of fixtures and fittings, plant and machinery and motor vehicles represent a significant portion of
total assets. The annual depreciation and amortisation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of residual values. The directors regularly review these useful lives and change them if necessary to reflect current conditions. In determining these useful lives management consider technological change, patterns of consumption, physical condition and expected economic utilisation of the assets. Changes in the useful lives can have a significant impact on the depreciation and amortisation charge for the financial year. The net book value of Tangible Fixed Assets subject to depreciation at the financial year end date was£2,069,895 (2023: £2,043,852).
2.4.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
Hodges Coaches (Sandhurst) Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
2.5.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
| Freehold |
|
| Plant & Machinery |
|
| Motor Vehicles |
|
| Fixtures & Fittings |
|
2.6.
Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.
2.7.
Stocks and Work in Progress
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 stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
2.8.
Financial Instruments
Share Capital of the Company
Ordinary Share Capital
The ordinary share capital of the company is presented as equity.
Cash and cash equivalents
Cash consists of cash on hand and demand deposits. Cash equivalents consist of short term highly liquid investments that are readily convertible to known amounts of cash that are subject to an insignificant risk of change in value.
Other financial assets
Other financial assets including trade debtors for goods or services sold to customers on short-term credit, are initially measured at the undiscounted amount of cash receivable from that customer, which is normally the invoice price, and are subsequently measured at amortised cost less impairment, where there is objective evidence of an impairment.
Loans and borrowings
All loans and borrowings, both assets and liabilities are initially recorded at the present value of cash payable to the lender in settlement of the liability discounted at the market interest rate. Subsequently, loans and borrowings are stated at amortised cost using the effective interest rate method. The computation of amortised cost includes any issue costs, transaction costs and fees, and any discount or premium on settlement, and the effect of this is to amortise these amounts over the expected borrowing period. Loans with no stated interest rate andrepayable within one year or on demand are not amortised. Loans and borrowings are classified as current assets or liabilities unless the borrower has an unconditional right to defer settlement of the liability for at least twelve months after the financial year end date.
Other financial liabilities
Trade creditors are measured at invoice price, unless payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. In this case, the arrangement constitutes a financing transaction, and the financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Hodges Coaches (Sandhurst) Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
2.9.
Taxation
Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
2.10.
Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
3.
Average Number of Employees
Average number of employees, including directors, during the year was:
24 (2023: 27)
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2024
|
2023
|
||
|
Directors
|
3
|
3
|
|
|
Administration
|
5
|
4
|
|
|
Operations
|
16
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20
|
|
![image](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 2" preserveAspectRatio="none">
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</svg>){kind=small}
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24
![image](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 5" preserveAspectRatio="none">
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</svg>){kind=small}
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27
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4.
Tangible Assets
| Land & Property | |||||
|---|---|---|---|---|---|
| Freehold | Plant & Machinery | Motor Vehicles | Fixtures & Fittings | Total | |
| £ | £ | £ | £ | £ | |
| Cost | |||||
| As at 1 January 2024 |
|
|
|
|
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| Additions |
|
|
|
|
|
| Disposals |
|
|
( |
|
( |
| As at 31 December 2024 |
|
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| Depreciation | |||||
| As at 1 January 2024 |
|
|
|
|
|
| Provided during the period |
|
|
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| Disposals |
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( |
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( |
| As at 31 December 2024 |
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...CONTINUED
Hodges Coaches (Sandhurst) Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
| Net Book Value | |||||
| As at 31 December 2024 |
|
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|
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|
| As at 1 January 2024 |
|
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|
Included in cost of land and buildings is freehold land of £354,879 (2023 - £354,879) which is not depreciated.
The total net book value of assets held under hire/lease purchase agreements is £1,701,378 (2023: £1,709,268).
5.
Stocks
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Stock |
|
|
|
6.
Debtors
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
|
|
|
| Other debtors | 9,577 | 24,969 | |
|
|
|
||
7.
Creditors: Amounts Falling Due Within One Year
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Net obligations under finance lease and hire purchase contracts |
|
|
|
| Trade creditors |
|
|
|
| Bank loans and overdrafts |
|
|
|
| Loan from pension scheme |
|
|
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| Amounts owed to participating interests |
|
|
|
| Other creditors | 35,646 | 72,316 | |
| Taxation and social security |
|
|
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|
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8.
Creditors: Amounts Falling Due After More Than One Year
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Net obligations under finance lease and hire purchase contracts |
|
|
|
| Bank loans |
|
|
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| Loan from pension scheme |
|
|
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Hodges Coaches (Sandhurst) Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
9.
Secured Creditors
Of the creditors the following amounts are secured.
Bank loans and overdrafts are secured by a debenture over the assets of the company.
Hire purchase finance and pension scheme loans are secured by fixed charges over assets to which this finance relates
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Net obligations under finance lease and hire purchase contracts | 499,114 | 525,608 | |
| Bank loans and overdrafts | 83,152 | 95,097 | |
| Other Creditors | 131,992 | 160,221 |
10.
Obligations Under Finance Leases and Hire Purchase
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| The future minimum finance lease payments are as follows: | |||
| Not later than one year |
|
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| Later than one year and not later than five years |
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12.
Financial Instruments
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The analysis of the carrying amounts of the financial instruments of the company required
|
2024
|
2023
|
|
|
under section 11 of FRS 102 is as follows -
|
£
|
£
|
|
|
Financial assets that are debt instruments measured at amortised cost:
|
|||
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Trade debtors
|
105,878
|
79,640
|
|
|
Cash at bank and in hand
|
511,845
|
501,714
|
|
|
Other debtors
|
9,077
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17,437
|
|
|
Financial liabilities measured at amortised cost:
|
|||
|
Bank overdraft
|
67,310
|
68,980
|
|
|
Hire purchase finance
|
499,114
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525,608
|
|
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Trade creditors
|
21,354
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36,067
|
|
|
Pension scheme loans
|
131,992
|
160,221
|
|
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Directors current accounts
|
-
|
59,739
|
|
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Amounts owed to parent company
|
158,387
|
306,887
|
|
|
Bank loans
|
15,842
|
26,117
|
Hodges Coaches (Sandhurst) Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
13.
Reserves
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Capital
|
||||
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Retained
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Redemption
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Other
|
||
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Earnings
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Reserve
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Reserves
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Totals
|
|
|
£
|
£
|
£
|
£
|
|
|
At 1 January 2024
|
785,782
|
161,499
|
120,000
|
1,067,281
|
|
Profit for the year
|
189,060
|
-
|
-
|
189,060
|
|
Dividends
|
(1,500)
|
-
|
-
|
(1,500)
|
|
|
|
|
|
|
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At 31 December 2024
|
973,342
|
161,499
|
120,000
|
1,254,841
|
14.
Related Party Transactions
At the beginning of the year, the company owed £306,887 to its parent company, Hodges Travel Limited.
During the year payments amounting to £150,000 were made and dividends amounting to £1,500 were declared to Hodges Travel Limited, reducing the amount owed to the parent company to £158,387 the balance sheet date.
The above amount was unsecured, interest free and repayable on demand.
During the year, the company paid rent to the Coach Company Retirement Benefit Scheme (CCRBS) amounting to £42,000 (2023:£28,500). Repayments of £43,478 were made to the CCRBS and interest amounting to £15,249 was charged by the CCRBS during the year. At the balance sheet, amounts owed to the CCRBS amounted to £131,992 (2023:£160,221)
The above amount was unsecured and repayable on demand.
At the beginning of the year, the company was owed £17,437 by the Hodges Coaches Unapproved Retirement Benefit Scheme(HCURBS). During the year, costs amounting to £6,088 were paid on behalf of the Hodges Coaches Unapproved Retirement Benefit Scheme (HCURBS) by the company and the company received repayments of 17,437. The amount owed to the company at the end of the year amounted to £6,088.
The above amount was unsecured and repayable on demand.
At the beginning of the year, the company owed £59,739 to its directors.
During the year £63,928 was repaid to the directors. In addition, interest in the amount of £1,200 was charged by the directors. The amount owed by the directors at the balance sheet date was £2,989.
The above amount was unsecured, interest free and repayable on demand.
15.
Ultimate Parent Undertaking and Controlling Party
The company's immediate and ultimate parent undertaking is Hodges Travel Limited. Hodges Travel Limited was incorporated in England. The ultimate controlling parties are Paul, Mark and Martin Hodge who, between them, control 100% of the shares of Hodges Travel Limited.
16.
Provisions for Liabilities
|
Deferred Tax
|
Other Provisions
|
|
|
£
|
£
|
|
|
At 1 January 2024
|
442,996
|
70,100
|
|
Charge (credit) for the year
|
74,479
|
(24,000)
|
|
|
|
|
|
At 31 December 2024
|
517,475
|
46,100
|