Company Registration No. 02214285 (England and Wales)
THORN PLANT HIRE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2018
Riordan O'Sullivan & Co
Chartered Certified Accountants & Statutory Auditors
40 Chamberlayne Road
London
NW10 3JE
THORN PLANT HIRE LIMITED
COMPANY INFORMATION
Directors
G A G Brewin
N C Byrne
W J Byrne
Company number
02214285
Registered office
The Brickworks
Spring Green Lane, off Shooters Way
Berkhamstead
Hertfordshire
HP4 3GY
Auditors
Riordan O'Sullivan & Co
Chartered Certified Accountants & Statutory Auditors
40 Chamberlayne Road
London
NW10 3JE
Bankers
Allied Irish Bank
Mayfair
10 Berkely Square
London
W1J 6AA
THORN PLANT HIRE LIMITED
CONTENTS
Page
Directors' report
1
Independent auditor's report
2 - 3
Profit and loss account
4
Balance sheet
5
Statement of changes in equity
6
Notes to the financial statements
7 - 11
THORN PLANT HIRE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2018
- 1 -
The directors present their annual report and financial statements for the year ended 31 May 2018.
Principal activities
The company's principal activity continues to be that of hire and sale of plant and equipment.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G A G Brewin
N C Byrne
W J Byrne
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
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.
Auditors
The auditors, Riordan O'Sullivan & Co, Chartered Certified Accountants and Statutory Auditors are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditors
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditors are unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditors are aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
________________
G A G Brewin
Director
26 September 2018
THORN PLANT HIRE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THORN PLANT HIRE LIMITED
- 2 -
Opinion
We have audited the financial statements of Thorn Plant Hire Limited
(the 'company')
for the year ended 31 May 2018 which comprise
the Profit And Loss Account, the Balance Sheet, the 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 FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 May 2018 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Directors' Report has been prepared in accordance with applicable legal requirements.
THORN PLANT HIRE LIMITED
INDEPENDENT AUDITOR'S REPORT (continued)
TO THE MEMBERS OF THORN PLANT HIRE LIMITED
- 3 -
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 identifie
d
material misstatements in the Directors' Report
.
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
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s 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.
__________________________________________
Sutti Seetanna (Senior Statutory Auditor)
for and on behalf of Riordan O'Sullivan & Co
Chartered Certified Accountants & Statutory Auditors
40 Chamberlayne Road
London
NW10 3JE
26 September 2018
THORN PLANT HIRE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2018
- 4 -
2018
2017
Notes
£
£
Turnover
4,560,914
7,170,244
Cost of sales
(1,807,640)
(3,122,214)
Gross profit
2,753,274
4,048,030
Administrative expenses
(1,805,243)
(2,092,202)
Operating profit
948,031
1,955,828
Interest receivable and similar income
3,054
4,838
Profit before taxation
951,085
1,960,666
Taxation
4
(165,507)
(435,054)
Profit for the financial year
785,578
1,525,612
THORN PLANT HIRE LIMITED
BALANCE SHEET
AS AT 31 MAY 2018
31 May 2018
- 5 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,641,536
1,726,294
Current assets
Stocks
953,393
936,910
Debtors
6
915,143
1,438,459
Cash at bank and in hand
1,560,619
2,674,271
3,429,155
5,049,640
Creditors: amounts falling due within one year
7
(720,196)
(2,644,799)
Net current assets
2,708,959
2,404,841
Total assets less current liabilities
4,350,495
4,131,135
Provisions for liabilities
(169,677)
(178,607)
Net assets
4,180,818
3,952,528
Capital and reserves
Called up share capital
8
1,000
1,000
Profit and loss reserves
4,179,818
3,951,528
Total equity
4,180,818
3,952,528
The financial statements were approved by the board of directors and authorised for issue on 26 September 2018 and are signed on its behalf by:
_______________________
_______________________
G A G Brewin
W J Byrne
Director
Director
Company Registration No. 02214285
THORN PLANT HIRE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2018
- 6 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 June 2016
1,000
3,864,095
3,865,095
Year ended 31 May 2017:
Profit and total comprehensive income for the year
-
1,525,612
1,525,612
Dividends
-
(1,550,002)
(1,550,002)
Movement on deferred tax provision on revaluation reserve
-
111,823
111,823
Balance at 31 May 2017
1,000
3,951,528
3,952,528
Year ended 31 May 2018:
Profit and total comprehensive income for the year
-
785,578
785,578
Dividends
-
(566,218)
(566,218)
Movement on deferred tax provision on revaluation reserve
-
8,930
8,930
Balance at 31 May 2018
1,000
4,179,818
4,180,818
THORN PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2018
- 7 -
1
Company information
Thorn Plant Hire Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
The Brickworks, Spring Green Lane, off Shooters Way, Berkhamstead, Hertfordshire, HP4 3GY.
2
Accounting policies
2.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
2.2
Going concern
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3
Turnover
Turnover is recognised at fair value of consideration received or receivable for goods and services provided and is shown net of trade discounts and VAT.
Turnover from hire of plant is recognised at the earlier of the month end for ongoing hire contracts or when the hire contract is terminated.
Turnover from the sale of plant is recognised when they are dispatched and where all the risks and rewards of ownership of the goods have been transferred to the buyer.
2.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
over 8 years
Hire stocks
over 6 to 8 years
Motor vehicles
over 4 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
2.5
Stocks
Stocks
are stated at the lower of cost and
net realisable value, after making due allowance for obsolete and slow moving items.
2.6
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
THORN PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2018
2
Accounting policies
(continued)
- 8 -
2.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
2.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
2.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
2.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.11
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 24 (2017 : 21).
4
Taxation
2018
2017
£
£
Current tax
UK corporation tax
165,507
435,054
THORN PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MAY 2018
4
Taxation
(continued)
- 9 -
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:
2018
2017
£
£
Profit before taxation
951,085
1,960,666
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2017: 19.00%)
180,706
372,527
Tax effect of expenses that are not deductible in determining taxable profit
4,231
3,209
Effect of change in corporation tax rate
-
18,270
Permanent capital allowances in excess of depreciation
1,286
67,862
Profit on disposal of plant and machinery
(24,090)
(26,814)
Bad debt provision
3,374
-
Taxation charge for the year
165,507
435,054
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 June 2017
5,497,873
Additions
393,455
Disposals
(287,194)
At 31 May 2018
5,604,134
Depreciation and impairment
At 1 June 2017
3,771,579
Depreciation charged in the year
257,377
Eliminated in respect of disposals
(66,358)
At 31 May 2018
3,962,598
Carrying amount
At 31 May 2018
1,641,536
At 31 May 2017
1,726,294
THORN PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MAY 2018
- 10 -
6
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
732,986
1,215,415
Corporation tax recoverable
10,933
-
Amounts owed by group undertakings
11,862
-
Other debtors
159,362
223,044
915,143
1,438,459
The amounts due from group companies are unsecured, interest-free and are repayable on demand.
7
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
114,254
319,138
Amounts due to group undertakings
-
740,616
Corporation tax
-
310,054
Other taxation and social security
191,012
286,699
Other creditors
5,694
95,765
Accruals and deferred income
409,236
892,527
720,196
2,644,799
8
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary shares of £1 each
1,000
1,000
9
Financial commitments, guarantees and contingent liabilities
The company, in the normal course of the business, has given unlimited guarantees to support the bank borrowings of its parent company, Rathbawn Properties Limited. The bank holds a mortgage debenture on the company's assets.
THORN PLANT HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MAY 2018
- 11 -
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2018
2017
£
£
153,000
153,000
11
Events after the reporting date
There were no events since the year end which materially affected the company.
12
Parent company
Rathbawn Properties Limited, a private company registered in England and Wales, is the ultimate parent undertaking holding 92.5% of the shares in the company. William Byrne and Nolan Byrne who hold 100% of Rathbawn Properties Limited are the ultimate controllers of the company.
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