REGISTERED NUMBER: 05573536 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

Farnborough Tool Hire Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

P Marsh

P R Marsh

G Marsh

SECRETARY:

P Marsh

REGISTERED OFFICE:

Impression House

31 Invincible Road

Farnborough

Hampshire

GU14 7QU

REGISTERED NUMBER:

05573536 (England and Wales)

AUDITORS:

WP Audit Services LLP

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

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

REVIEW OF BUSINESS

The Board aims to present a review of the development and performance of the company during the year under review and its position at the year end. This review is consistent with the size and nature of the company and is written in the context of risks and uncertainties it faces.

During the period under review, the directors are pleased to report an increase in revenue of 5.7% over the previous year from £34,132,495 to £36,084,319 arising from both organic growth and acquisitions made during 2024.

On 18 September 2024, the company acquired 100% of the share capital of Phoenix Hire & Sales Ltd and Safety Survey & Training Ltd and on 25 September 2024, the company acquired 100% of the share capital of Rabbit & Dowling Plant Hire Limited. This takes the total number of hire depots operated by the company to 18.

The company has also continued to reinvest the profits of the business into ensuring a modern fleet of equipment is available to customers, with the only external financing being through hire purchase liabilities relating to the hire fleet. As a result of the above the net book value of the plant and machinery increased by £3.7m from £41.7m to £45.4m.

The company considers that its key performance indicators are those that communicate the financial performance and strength of the company, primarily turnover, operating profit, EBITDA and net assets. Both turnover and net assets increased compared to the prior year, with the decrease in operating profit and EBITDA due to a combination of ensuring that the company remains price competitive for customers, whilst seeing the cost of labour, parts and other materials increase in the year, in addition to investing in the resources of the company to ensure it is well placed to capture the next phase of the company's growth.

The directors aim to maintain the company's existing management policies which have resulted in the company's successful period of trading. These policies include the intention to grow sales and maintain control over costs. The directors are pleased with the overall results for the period and are confident that the company will continue to trade profitably in the future. The continuing profitability has left the company in a sound financial position at the end of the year and is in line with the company's expectations.

The directors consider that the company is in a strong position to take advantage of any profitable opportunities which may arise in the future.

KEY PERFORMANCE INDICATORS

The company considers its Key Performance Indicators to be turnover, gross profit, net assets and cash.

2024

2023

2022

£

£

£

Turnover

36,084,319

34,132,495

24,801,972

Operating profit

8,092,155

10,279,170

8,634,999

Net assets

20,636,803

16,994,063

12,173,894

EBITDA

11,077,255

12,748,966

10,117,465

PRINCIPLE RISKS AND UNCERTAINTIES AND FINANCIAL RISK MANAGEMENT

The management of the company and the nature of its trading strategy are subject to a number of risks. The company operates a thorough risk assessment and management process which involves a formal review of all the risks identified and introducing processes to monitor and mitigate each risk, where possible.

The company's principal financial instruments comprise bank balances, inventories, trade debtors, trade creditors and hire purchase finance. The main purpose of these instruments is to provide funds for the company's operations. Their existence exposes the group to a number of financial risks, which have been considered and are managed as follows:

Cost inflation and supply chain

The company continues to have a strong supply chain system, which allows it to negotiate better purchasing terms and work with suppliers to improve supply chain efficiency. However, the company remains exposed to periods of cost inflation and continually assesses any risks identified with the aim of mitigating the threats these may have on the company's operations and profitability.

The company operates one of the newest hire fleets in the industry and is well placed to provide asset availability as a result of better reliability. The age profile also allows the company to optimise capital expenditure management whilst maintaining customer service.

Construction market conditions

The company is directly impacted by the construction industry with demand and pricing of the company's products dependant on the success in this sector. The company mitigates this risk by ensuring it monitors the market to ensure asset holding levels are closely monitored with its pricing strategy being constantly assessed by comparison to competitors rates.

Operational risk

Operational risk is the risk of a direct or indirect loss resulting from the inadequacies or failures of processes or controls due to technology, staff, organisation or external factors. To monitor and control operational risk, the company maintains a system of comprehensive policies and a control framework which is designed to provide a sound and well-controlled operational environment.

Liquidity risk

Liquidity risk is the risk that the company will have insufficient resources to meet its financial liabilities as they fall due. The company's strategy to managing liquidity risk is to ensure that the company has sufficient funds to meet all its potential liabilities as they fall due. In respect of bank balances, the liquidity risk is managed by maintaining a substantial cash balance at all times. In respect of the hire purchase finance, these are short term on low interest rates. The liquidity risk is therefore managed by ensuring there are always sufficient funds available to meet all monthly liabilities.

Price risk

Price risk is the risk that financial performance of the company will be adversely affected by pricing changes or price pressure from competitors. The company has managed this risk by securing long term contracts with its key suppliers that sets out defined parameters and pricing.

Interest rate risk

Interest rate risk is the risk that the financial performance of the company will be adversely affected by adverse fluctuations on interest rates being charged to the company on its financial instruments. The interest rate risk is managed by using short term agreements with fixed low interest rates. This is deemed sufficient to mitigate this risk.

Credit risk

The company has a significant and diverse customer base, ranging from large contractors to individual operations. This, combined with undertaking stringent credit checks and the implementation of further safeguards, where necessary, minimises credit risk.

Currency risk

Currency risk is the risk that the financial performance of the company will be adversely affected by adverse fluctuations in foreign currencies used by the company. The company has minimal exposure to foreign currency risk.

The directors review the principal risks and uncertainties facing the company on a regular basis and ensure systems and policies are continuously updated to reflect any changes, they work in an efficient manner to minimise those risks and help achieve the company's objectives.

GOING CONCERN

The company's business activities, together with the factors likely to affect its future development, performance and position are set out above. After making enquiries, the directors have an expectation that the company's net current assets as at 31 December 2024 of £1.9m (2023: £3.5m) and the company's cash position, forecasts and projections are more than sufficient to provide adequate resources to continue in operational existence for the foreseeable future. The directors have therefore concluded that it is appropriate to prepare the financial statements on a going concern basis.

ON BEHALF OF THE BOARD:

P R Marsh - Director

26 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the hire and supply of plant and tools.

DIVIDENDS

Interim dividends of £750,000 (2023: £1,125,000) were paid in the year. The directors recommend that no final dividend be paid.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

P Marsh

P R Marsh

G Marsh

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, WP Audit Services LLP, have indicated their willingness to continue in office.

ON BEHALF OF THE BOARD:

P R Marsh - Director

26 September 2025

Opinion

We have audited the financial statements of Farnborough Tool Hire Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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.

Other information

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory framework that the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context include the Companies Act and tax legislation. In addition we considered the provisions of other laws and regulations that do not have an effect on the financial statements but compliance with which may be fundamental to the company's ability to incur or to avoid a material penalty, including the company's operating licences and environmental regulations.

Our procedures in response to the risks identified included reviewing the financial statements disclosures and testing supporting documentation to assess compliance with the provisions of relevant laws and regulations considered to have a direct effect in the financial statements, enquiring of management concerning actual or potential litigation and claims, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, reading minutes of meetings of those charged with governance, reviewing correspondence with relevant regulatory authorities and in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential audit risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Stuart Wright (Senior Statutory Auditor)

for and on behalf of WP Audit Services LLP

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

26 September 2025

REVENUE

3

36,084,319

34,132,495

Cost of sales

(17,847,429

)

(16,366,225

)

GROSS PROFIT

18,236,890

17,766,270

Administrative expenses

(10,212,235

)

(7,637,046

)

8,024,655

10,129,224

Other operating income

67,500

149,946

OPERATING PROFIT

5

8,092,155

10,279,170

Income from shares in group undertakings

3,515,019

2,410,192

Interest receivable and similar income

156,274

4,331

11,763,448

12,693,693

Amounts written off investments

6

(2,443,434

)

(1,192,750

)

9,320,014

11,500,943

Interest payable and similar expenses

7

(2,443,091

)

(2,402,133

)

PROFIT BEFORE TAXATION

6,876,923

9,098,810

Tax on profit

8

(2,484,183

)

(3,153,641

)

PROFIT FOR THE FINANCIAL YEAR

4,392,740

5,945,169

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,392,740

5,945,169

FIXED ASSETS

Intangible assets

10

1,177,510

564,943

Property, plant and equipment

11

49,571,283

45,443,588

Investments

12

2,962,805

6,200

53,711,598

46,014,731

CURRENT ASSETS

Inventories

13

262,168

241,511

Debtors

14

10,104,260

6,453,488

Prepayments and accrued income

430,657

160,288

Cash at bank and in hand

1,123,931

6,067,717

11,921,016

12,923,004

CREDITORS

Amounts falling due within one year

15

(9,976,722

)

(9,429,993

)

NET CURRENT ASSETS

1,944,294

3,493,011

TOTAL ASSETS LESS CURRENT LIABILITIES

55,655,892

49,507,742

CREDITORS

Amounts falling due after more than one year

16

(27,390,746

)

(26,654,646

)

PROVISIONS FOR LIABILITIES

20

(7,628,343

)

(5,859,033

)

NET ASSETS

20,636,803

16,994,063

CAPITAL AND RESERVES

Called up share capital

21

125

125

Share premium

22

399,975

399,975

Retained earnings

22

20,236,703

16,593,963

SHAREHOLDERS' FUNDS

20,636,803

16,994,063

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

P R Marsh - Director

Called up

share

Retained

Share

Other

Total

capital

earnings

premium

reserves

equity

£

£

£

£

£

Balance at 1 January 2023

125

11,542,515

399,975

231,279

12,173,894

Changes in equity

Dividends

-

(1,125,000

)

-

-

(1,125,000

)

Total comprehensive income

-

6,176,448

-

(231,279

)

5,945,169

Balance at 31 December 2023

125

16,593,963

399,975

-

16,994,063

Changes in equity

Dividends

-

(750,000

)

-

-

(750,000

)

Total comprehensive income

-

4,392,740

-

-

4,392,740

Balance at 31 December 2024

125

20,236,703

399,975

-

20,636,803

1.	STATUTORY INFORMATION

Farnborough Tool Hire Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis.

The financial statements are presented in Sterling (£).

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

- The requirements of section 33 Related Party Disclosures - key management remuneration.

- The requirements of section 7 Statement of Cash Flows.

The financial statements of the Company are consolidated in the financial statements of Coxbridge Group Ltd. The consolidated financial statements of Coxbridge Group Ltd are available from its registered office, Chancery House, St. Johns Road, Woking, England, GU21 7SA.

Going concern

After reviewing the company's cash position, forecasts and projections for a period of 12 months from the accounts signing date, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Revenue

Revenue is recognised at the fair value of the consideration received or receivable for sale of goods and services to external customers in the ordinary nature of the business. Revenue is recognised when it and the associated costs can be reliably measured, future economic benefits are probable, and the risks and rewards of ownership have been transferred to the customer. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Revenue is stated net of Value Added Tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses, is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write each asset down to its estimated residual value over its expected useful life at the following rates:-

Freehold Property - 2% on cost

Leasehold improvements - Over the period of the lease

Plant and machinery - 4% on reducing balance

Fixtures and fittings - 15% on reducing balance

Motor vehicles - 25% on reducing balance

Computer equipment - 25% on cost

Freehold land is not depreciated.

Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life.

Planned disposals of plant held for hire are transferred, at net book value, to inventory prior to sale, with the sale proceeds included in revenue.

Impairment of fixed assets

Fixed assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable or as otherwise required by relevant accounting standards.

Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of net realisable value and value-in-use, are recognised as impairments. Impairment losses are recognised in the profit and loss account.

Investments in subsidiaries

Investments in subsidiaries are accounted for at cost less impairment. Any impairment losses are recognised in the profit and loss account.

Inventories

Inventories are valued at the lower of cost and net realisable value. Net realisable value is based upon estimated normal selling price less further costs expected to be incurred to completion and disposal.

At each reporting date, the company assesses whether inventories are impaired or if an impairment loss recognised in prior periods has reversed. Any excess of the carrying amount of inventory over its estimate selling price less costs to complete and sell, is recognised as an impairment loss in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Transactions in currencies other than the functional currency (foreign currencies) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction or, if the asset or liability is measured at fair value, the rate when that fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

Hire purchase and leasing commitments

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

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

Where assets are financed by leasing agreements that give rights approximating to ownership ("finance leases"), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term. The corresponding leasing commitments are shown as obligations to the lessor.

Lease payments are treated as consisting of capital and interest elements, and the interest is charged to the profit and loss account in proportion to the remaining balance outstanding.

All other leases are "operating leases" and the annual rentals are charged to the profit and loss on a straight line basis over the lease

Pension costs and other post-retirement benefits

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

For defined contribution schemes the amount charged to the profit and loss account in respect of pension costs and other post retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense in the period in which these are incurred.

The holiday year for the company ends at the reporting date and employees are not entitled to carry forward unused holiday.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102, in full, to all of its financial instruments.

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument, and are offset only when the company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets

Debtors

Debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Where an arrangement with a debtor constitutes a financing transaction, the debtor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

A provision for impairment of debtors is established when there is evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event accruing after the impairment loss was recognised, are recognised immediately in profit or loss.

Financial liabilities and equity

Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Depreciation of plant and machinery

Plant and machinery is depreciated at a rate of 4% reducing balance. The directors have assessed the depreciation rates provided on the plant and machinery to write down each asset to its estimated residual value over its expected useful life. The assessment of residual value and useful life is inherently subjective as it is made on the basis of previous resale activity which may in future not prove to be accurate.

Provision for deferred consideration on acquisitions

Provision is made for anticipated deferred consideration due on acquisitions made. When completion accounts have not been agreed on which the deferred consideration is based, the directors make an assessment on the likely outcome and financial impact to the business.

Provision for bad debts

Estimates are made in respect of determining the recoverability of trade debtor balances. A provision is made within the financial statements against specific trade debtor balances only where the directors believe there is a probability that the customer will not settle their debt due.

The assessment of recoverability is however inherently subjective as it is made on the basis of previous activity and communications with the customer which may in the future not prove to be accurate.

3.

REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

31/12/24

31/12/23

£

£

Hire income

24,567,223

23,065,522

Sale of plant

7,473,187

7,846,191

Transport

2,041,495

1,763,449

Other income

2,002,414

1,457,333

36,084,319

34,132,495

In the year to 31 December 2024 less than 1% (2023 - less than 1%) of the company's turnover was to markets outside the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

31/12/24

31/12/23

£

£

Wages and salaries

6,862,016

5,384,543

Social security costs

727,613

519,057

Other pension costs

136,390

147,490

7,726,019

6,051,090

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

31/12/24

31/12/23

Office and management

28

26

Sales and marketing

17

11

Transport and operations

149

130

194

167

31/12/24

31/12/23

£

£

Directors' remuneration

36,495

24,000

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31/12/2024

31/12/2023

£

£

Depreciation

2,695,101

2,302,047

Profit on disposal of fixed assets

(8,172

)

(39,388

)

Goodwill amortisation

289,999

266,749

Operating leases

427,416

428,928

Auditors' remuneration

36,495

24,500

Auditors' remuneration for non audit work:-

Coporate finance services

8,500

32,230

Management accounting services

53,350

34,450

Taxation compliance

6,400

6,500

Other

27,550

24,970

6.

AMOUNTS WRITTEN OFF INVESTMENTS

31/12/24

31/12/23

£

£

Amounts written off investment

2,443,434

1,192,750

On 25 September 2024 the company acquired Rabbit and Dowling Plant Hire Limited (Rabbit). On acquisition, Rabbit's trade was hived up to the company and trading assets and liabilities were transferred to the company. Rabbit declared a dividend to distribute the majority of its reserves to the company at 31 December 2024 and so accordingly the company has impaired its fixed asset investment.

In the prior year ending 31 December 2023, the trade, assets and liabilities of Arvill Limited were hived up to the company. In that year, Arvill declared a dividend to distribute all its reserves to the company at 31 December 2023 and so accordingly the company impaired its fixed asset investment.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31/12/24

31/12/23

£

£

Bank loan interest

29,401

81,253

Loan interest

1,329,336

1,543,949

Hire purchase interest

1,084,354

776,931

2,443,091

2,402,133