IRIS Accounts Production
v21.1.0.652
02941889
Board of Directors
31.7.21
1.8.20
31.7.21
31.7.21
The principal activity of H W Martin Holdings Limited ("the Company") during the year under review was that of a holding company and provision of management services to its subsidiaries, which together encompass the Group. The principal activities of the Group during the year under review were those of:
++
++t mss:t1
<R><C3,,J,,,T>-<C73,,J,,N,T>the design, installation and maintenance of traffic management systems on motorways and high speed dual carriageways;<\R><R><C>-<C>the design, installation, service and hire of traffic control systems;<\R><R><C>-<C>waste recycling, management, collection and treatment to local authorities and the recycling industry;<\R><R><C>-<C>the collection, disposal and management of commercial waste and recyclable materials;<\R><R><C>-<C>commercial fencing and vegetation management and control contractors to the rail, civil engineering and highways industries;<\R><R><C>-<C>plant, vehicle and machinery provision, maintenance and refurbishment;<\R><R><C>-<C>the manufacture of steel galvanised palisade, welded mesh and woven mesh security fencing and gates;<\R><R><C>-<C>the design and installation of permanent and temporary vehicle restraint systems and acoustic environmental barriers;<\R><R><C>-<C>the design, manufacture and servicing of trailers and truck bodies for abnormal and specialist loads;<\R><R><C>-<C>the design, manufacture and servicing of specialist vehicles and equipment for the traffic management industry;<\R><R><C>-<C>the supply of advanced variable messaging systems for the highways industry; and<\R><R><C>-<\R>
++t mss:t1
the hire of specialist vehicles and trailers to the traffic management and wider construction industry.
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REGISTERED NUMBER: 02941889 (England and Wales)
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GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND
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CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021
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H W MARTIN HOLDINGS LIMITED
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Report of the Directors
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7
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Independent Auditor's Report
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10
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Consolidated Income Statement
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14
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Consolidated Other Comprehensive Income
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15
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Consolidated Statement of Financial Position
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16
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Company Statement of Financial Position
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17
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Consolidated Statement of Changes in Equity
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18
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Company Statement of Changes in Equity
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20
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Consolidated Statement of Cash Flows
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21
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Notes to the Consolidated Statement of Cash Flows
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22
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Notes to the Consolidated Financial Statements
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23
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REGISTERED OFFICE:
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Fordbridge Lane
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REGISTERED NUMBER:
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02941889
(England and Wales)
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INDEPENDENT AUDITOR:
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BDO LLP, statutory auditor
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The Directors present their Strategic report for the H W Martin Group of Companies ("the Group") for the
year-ended 31 July 2021.
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PRINCIPAL ACTIVITIES AND BUSINESS REVIEW
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The principal activity of H W Martin Holdings Limited ("the Company") during the year under review was that
of a holding company and provision of management services to its subsidiaries, which together encompass
the Group. The principal activities of the Group during the year under review were those of:
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-
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the design, installation and maintenance of traffic management systems on motorways and high
speed dual carriageways;
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-
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the design, installation, service and hire of traffic control systems;
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-
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waste recycling, management, collection and treatment to local authorities and the recycling
industry;
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-
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the collection, disposal and management of commercial waste and recyclable materials;
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-
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commercial fencing and vegetation management and control contractors to the rail, civil engineering
and highways industries;
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-
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plant, vehicle and machinery provision, maintenance and refurbishment;
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-
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the manufacture of steel galvanised palisade, welded mesh and woven mesh security fencing and
gates;
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-
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the design and installation of permanent and temporary vehicle restraint systems and acoustic
environmental barriers;
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|
-
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the design, manufacture and servicing of trailers and truck bodies for abnormal and specialist loads;
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-
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the design, manufacture and servicing of specialist vehicles and equipment for the traffic
management industry;
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-
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the supply of advanced variable messaging systems for the highways industry; and
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-
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the hire of specialist vehicles and trailers to the traffic management and wider construction industry.
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The Group's profit for the financial year is £21,193,236 (2020:£ 15,633,230 profit).
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The Group's key financial and performance indicators for the year are:
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1.
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Record turnover achieved of over £199 million, representing an increase of 16% (2020: increased
by 12% to a record £171 million);
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2.
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Profit before tax increased by 34% to £25.9 million (2020: increased by 29% to £19.3 million);
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3.
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Profit before tax margin increased by 1.7 percentage points to 13.0% from 11.3%; and
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4.
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Total equity increased by 21% to £109.4 million (2020: increased by 8.5% to £90.2 million).
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The Company's non-financial key performance indicators for the year are:
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-
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Employee retention is 81% (2020: 84%);
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-
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Employee accident frequency rate (AFR) per 100,000 hours worked is 0.15 (2020: 0.23).
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The Group has delivered excellent financial results, significantly increasing sales whilst further improving net
profit margin. The Group maintains an exceptionally strong financial position with cash reserves and very low
gearing allowing operational and strategic flexibility and the opportunity for further Group infrastructure
investment and expansion.
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H W Martin (Traffic Management) Limited has continued its exponential growth with sales of £87.9 million
(2020: £79.8 million) to meet the demands of its client base for an industry leading service.
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PRINCIPAL ACTIVITIES AND BUSINESS REVIEW - continued
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Other Group highways contracting activities, carried out by H W Martin Safety Fencing Limited and Amber
Langis Limited, have also experienced demand driven growth of 30% and 12.5% respectively. Investment has
continued in management, operational labour, IT systems and regional depots, including the recent £1.5
million freehold purchase post year-end of a site close to junction 28 of the M1 motorway for the
establishment of an industry leading operating base, stock yard, training, and welfare facility for the vehicle
restraint system activity.
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Waste and recycling have also provided growth and achieved increases in profit margins; gross profit margin
increased by over 5 percentage points to 35.6% from 30%; The Company has successfully retained its
existing contracts and procured additional contracts including with the local authorities of North East
Derbyshire and Bolsover.
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Significant investment at the Company's material recycling facilities (MRF's) has continued. The expansion of
the Alfreton MRF has been financed from existing cash reserves and amounts to a further investment of
almost £4 million.
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The commercial fencing, vegetation management and ecology services activities have experienced high
levels of growth whilst improving net margins; profit before tax margin increased by 2.4 percentage points to
11.5% from 9.1%. Further rail industry and HS2 contracts (as the project moves on from Enabling Works to
the Permanent Works phase) have been successfully procured.
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The manufacture and supply of fencing and perimeter systems activities have achieved exceptionally good
results, substantially increasing both revenue and profit margins; sales increased by 22% to £5.2 million
(2020: increased by 13.7% to £4.3 million) and profit before tax margin increased by 3.7 percentage points to
17.9% from 14.2%. The Company has invested and now manufactures palisade, welded mesh, and woven
mesh fencing systems in all security rated ranges SR1, SR2 and SR3 to supply an expanding portfolio of
clients and industries.
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The King Group (King Trailers Limited, King Transport Equipment Limited, King Highway Products Limited
and Safety Vehicle Hire & Lease Limited) has again produced an attractive financial return; profit before tax
increased by 23% to over £1.5 million. Previous restructuring and ongoing investment in information
technology, infrastructure and professional practices providing long term benefits.
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Overall Group continuity of the current level of business activity will be provided by existing medium to long
term contracts with local authorities, National Highways, HS2, Network Rail and their agents. Opportunities to
secure further contracts are also expected from the current Client base.
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The Board's policy of authorising capital expenditure to take advantage of market opportunities will continue,
with an ongoing program of vehicle fleet renewals and operational property acquisitions.
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The Group recognises the importance of our supply chain in its continued success and embraces
collaborative working. We also recognise the vulnerability of supply chain to cash flow pressures and actively
mitigate this risk by utilising Group reserves to ensure payments are made to our supply chain in a timely
manner without reliance upon receipt of funds from own clients.
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The Group continues to look to ways to improve its environmental performance and reduce the environmental
impact of its activities and remains committed to a management system conforming to the 14001
Environmental Standard.
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PRINCIPAL RISKS AND UNCERTAINTIES
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The identification, assessment and management of opportunities and associated risks are an integral element
of the business of the Group. Principal risks are:
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Legislation and regulation
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The impact of new legislation and regulation on operations may potentially
increase costs. This risk is considered as a part of the tender approval
process. Many contracts include provisions which allow the Group to pass
increased costs so arising to the Client.
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Competitive risk
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All major contracts are subject to periodic competitive tender and therefore
the renewal of these contracts is not guaranteed. The Group continues to
maintain a very competitive cost base to give the best possible commercial
advantage and actively targets long-term contracts.
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Recyclable material
market prices
|
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The Group's waste and recycling activities are subject to fluctuating returns as
prices of recyclable material vary due to worldwide demand. This risk is
considered during the tender process and mitigated by a focus on securing
contracts which deliver service rather than material lead returns, and by
actively pursuing market price risk share with out Clients.
|
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Health and safety
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The Group acknowledges that its employees work within a hazardous
environment and training is given to reflect and mitigate this risk. Policies and
procedures are continually monitored and reviewed. The Group has achieved
the 45001 Safety Management System standard and maintains its
commitment to the Contractors Health and Safety Scheme (CHAS).
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Financial risk
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The main risk arising from the Group's financial instruments is liquidity risk.
This risk is managed by maintaining a high cash reserve providing sufficient
liquidity to finance the Group's operations and to meet unanticipated costs.
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The Directors are required to explain how they undertake their duties in respect of requirements under
Section 172(1) ("S172(1)") of the 2006 Companies Act to promote the success of the Group for the benefit of
the Shareholders and other key stakeholders. This S172(1) statement explains how the Group's Directors
("the Board") have considered the interest of all key stakeholders.
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The Directors of the Group act in the way they consider, in good faith, would be most likely to promote the
success of the Group for the benefit of its members as a whole, and in doing so have regard (amongst other
matters) to:
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1. the likely consequences of any decision in the long term;
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2. the interests of the Group's employees;
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3. the need to foster the Group's business relationships with suppliers and customers;
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4. the impact of the Group's operations on the community and environment;
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5. maintaining the Group's reputation for high standards of business conduct; and
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6. the need to act fairly between members of the Group.
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The Board considers its employees, customers, suppliers and shareholders to be its major stakeholders. The
directors of the Group and the operating companies have a responsibility to ensure good relationships are
maintained with key stakeholders, as they are recognised as being vital for the long-term success of the
Group. The Board has recognised that there are various factors that could affect the relationships with key
stakeholders. These factors, and how they are managed, have been discussed in the "Principal risks and
uncertainties" section of the Strategic report. Key performance indicators which help the Board to understand
the strength of the Group's relationships with key stakeholders have been presented and discussed further in
the "Principal activities and business review" section of the Strategic report.
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SECTION 172(1) STATEMENT - continued
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When taking decisions for the long-term future of the Group, the Board informally takes into consideration the
interests of all key stakeholders in its deliberations. Significant events and decisions taken during the year
with respect to investment and growth of the Group have been discussed further in the "Principal activities
and business review" section of the Strategic report.
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The Board considers that appropriate remuneration, benefits and employment procedures are in place which
fairly reward its employees in relation to the local communities in which they operate and identify opportunities
for employee development where practical. Action taken during the year with respect to engagement with
employees has been discussed further in the "Engagement with Employees" section of the Strategic report.
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The Board endeavours to maintain good long-term supplier relationships by contracting on standard business
terms and prompt payment within agreed terms. There are long-standing relationships with some key
suppliers to ensure the quality and continuity of the supply chain. The Board receive regular updates on both
existing and new customer relationships to ensure any decision making takes into account the commercial
and service requirements of the customer base. Action taken during the year with respect to engagement with
suppliers and customers has been discussed further in the "Principal activities and business review" section
of the Strategic report.
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The Board recognises that the Group has to maintain the highest standards of integrity in the conduct of each
of the Group's operations throughout the country. Consequently, the Board aims to ensure all of its operations
minimise harm and contribute as far as practical to the local communities in which it operates. The Board
recognises the importance of maintaining high standards of business conduct and operates according to a full
suite of policies. These include Health & Safety, protecting the environment, looking after our people and
maintaining the high quality of our service. Action taken during the year with respect to carbon efficiency has
been discussed further in the "Streamlined Energy and Carbon Reporting (SECR)" section of the Report of
the Directors. Health & Safety developments have also been discussed in the "Principal risks and
uncertainties" section of the Strategic report.
|
The Board has taken the following key decisions during the year:
|
-
|
|
Purchase of regional depot in Coventry for the traffic management operations. This continued
investment in infrastructure provides opportunity to further expand in this region, which shows
long-term commitment to employees and clients;
|
|
-
|
|
Decentralisation of traffic management decision-making to regional depots. This empowers regional
leaders to be involved in the decision-making process and allows for better oversight and
accountability of revenue and costs;
|
|
-
|
|
rovision of death-in-service benefit to all employees and LifeWorks mental health assistance
programme to all employees and their immediate families to recognise the importance and value of
the health and wellbeing of our employees;
|
|
-
|
|
Purchase of over five acres of land to provide a bespoke stock yard, operating base, training, and
welfare facilities close to junction 28 of the M1 motorway post year-end which will be developed over
the coming months for occupation summer 2022. This will allow for continued expansion and
continuity of contracts;
|
|
-
|
|
Provision of death-in-service benefit to all employees and LifeWorks mental health assistance
programme to all employees and their immediate families to recognise the importance and value of
the health and wellbeing of our employees;
|
|
-
|
|
Continuing the roll-out across the group of the 45001 Management Systems standard, ensuring that
all group-wide policies are adhered to, protecting employees and suppliers.
|
|
ENGAGEMENT WITH EMPLOYEES
|
A policy of equal opportunity employment is followed at all times by the Group. During the year, the policy of
providing employees with information about the Group has been continued through internal media methods in
which employees have also been encouraged to present their suggestions and views on the Group's
performance. Regular meetings are held between local management and employees to allow a free flow of
information and ideas.
|
The Group gives full consideration to applications for employment from disabled persons where the
requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing
employees become disabled, it is the Group's policy wherever practicable to provide continuing employment
under normal terms and conditions and to provide training and career development and promotion to disabled
employees wherever appropriate.
|
N C Faulconbridge
- Director
|
The Directors present their report with the financial statements of the Group for the year-ended 31 July 2021.
|
No interim dividends were paid during the year ended 31 July 2021.
|
The directors recommend final dividends per share as follows:
|
Ordinary £1 shares
|
£40.00
|
|
Redeemable preference £1 shares
|
£0.02
|
|
The total distribution of dividends for the year ended 31 July 2021 will be £ 1,015,288 .
|
The Group is stable and will continue to invest in its existing operations going forwards so as to maximise
revenues, profits and cash flows.
|
The directors shown below have held office during the whole of the period from 1 August 2020 to the date of
this report.
|
The Directors are continuing to monitor the potential impact on its customers and suppliers, market access
and possible effects on foreign currency exchange rates.
|
The Group funds both day-to-day operations and longer-term strategic development from its liquid resources,
including working capital generated from operations. The Directors have considered the level of the liquid
resources and the expected future profitability of both the Group and the wider Group, and are satisfied that,
under anticipated trading conditions, there are sufficient available resources for the Group to meet its trading
requirements through a period of at least 12 months from the date of signing these financial statements to 31
January 2023. For this reason, they have concluded that it is appropriate to use the going concern basis on
presenting these financial statements.
|
Since 31 December 2019, the spread of COVID-19 has severely impacted many local economies around the
globe. The Directors have considered the reasonably plausible impact of the COVID-19 outbreak on the
Group's trading and cash flows. The Directors consider the potential impact of COVID-19 to be minimal on
the grounds of the Group's performance since the outbreak began and post year-end, the type of service they
provide as a Group and the continued liquidity support of the wider Group.
|
STREAMLINED ENERGY AND CARBON REPORTING (SECR)
|
This SECR report sets out cumulative energy consumption information for all entities included in the
consolidated financial statements for the years ending 31 July 2021 and 31 July 2020, in accordance with The
Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations
2018.
|
The Group's energy consumption results from the carrying on of all principal activities of the Group and
included direct emissions (fuel use from transport, natural gas), indirect emissions (electricity purchased and
used for operations) and other indirect emissions (heating oil), all of which was purchased directly by the
Group within the UK.
|
STREAMLINED ENERGY AND CARBON REPORTING (SECR) - continued
|
The total energy use was collated in kilowatt hours and converted to kilograms of CO2 using government
conversion factors. The Group has adopted kilograms of CO2 per £1 of turnover as its key energy intensity
ratio. The Group consumed the following:
|
|
Energy type
|
|
Kilowatt hours
(millions)
|
|
CO2
emissions
(kilograms)
|
|
Kilowatt hours
(millions)
|
|
CO2 emissions
(kilograms)
|
|
Scope 1
|
|
Gas
|
|
1.87
|
|
343,101
|
|
2.01
|
|
370,483
|
|
|
Burning oil
|
|
1.39
|
|
342,883
|
|
1.45
|
|
358,371
|
|
|
Transport fuel
|
|
63.63
|
|
15,221,836
|
|
55.56
|
|
13,680,762
|
|
Scope 2
|
|
Electricity
|
|
5.84
|
|
1,240,192
|
|
5.99
|
|
1,530,319
|
|
|
72.73
|
|
17,148,012
|
|
65.01
|
|
15,939,935
|
|
Per £1 of turnover
|
|
|
0.085
|
|
|
0.093
|
|
Action to reduce energy consumption across the group during the year to 31 July 2021 included increased
recycling of tyres from our vehicles, and increased use of more energy-efficient LED lighting on newer
vehicles.
|
Energy reduction initiatives for the year commencing 1 August 2021 will continue to target transport and use
of vehicles, which accounts for over 80% of the Group's consumption. Hybrid and fully electric vehicles will be
purchased to replace existing company owned vehicles where practical. New intelligent, gyroscopic tracking
systems will continue to be fitted to all vehicles, allowing poor driver behaviour associated with increased
consumption (such as harsh acceleration, harsh braking, excessive idling, etc) to be identified and corrected.
|
DIRECTORS' RESPONSIBILITIES STATEMENT
|
The directors are responsible for preparing the Group 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), including
Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of
Ireland'. 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 the Group and of the profit or loss
of the Group 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;
|
-
|
state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
|
-
|
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 and the Group's transactions and disclose with reasonable accuracy at any time the financial
position of the Company and the Group 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 the
Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
|
The directors are responsible for the maintenance and integrity of the corporate and financial information
included on the Company's website. Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other jurisdictions.
|
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITOR
|
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 Group's auditor is 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 Group's auditor is aware of that information.
|
The auditor, BDO LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.
|
N C Faulconbridge
- Director
|
Opinion on the financial statements
|
-
|
|
the financial statements give a true and fair view of the state of the Group's and of the Parent
Company's affairs as at 31 July 2021 and of the Group's profit for the year then ended;
|
|
-
|
|
the financial statements have been properly prepared in accordance with United Kingdom Generally
Accepted Accounting Practice; and
|
|
-
|
|
the financial statements have been prepared in accordance with the requirements of the Companies
Act 2006.
|
|
We have audited the financial statements of H W Martin Holdings Limited (the 'Parent Company') and its
subsidiaries (the 'Group') for the year ended 31 July 2021 which comprise the Consolidated Income
Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, the
Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company
Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the Consolidated Analysis of Net
Debt 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).
|
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 believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
|
We are independent of the Group and the Parent 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.
|
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 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 Directors with respect to going concern are described in the
relevant sections of this report.
|
The directors are responsible for the other information. The other information comprises the information
included in the Annual Report and Consolidated Financial Statements 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. Our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our knowledge obtained in the
course of the audit, or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a
material misstatement in the financial statements themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact.
|
We have nothing to report in this regard.
|
Other Companies Act 2006 reporting
|
In our opinion, based on the work undertaken in the course of the audit:
|
-
|
|
the information given in the Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with
applicable legal requirements.
|
|
In the light of the knowledge and understanding of the Group and Parent Company and its environment
obtained in the course of the audit, we have not identified material misstatements in the Group Strategic
Report or the Report of the Directors.
|
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
|
-
|
|
adequate accounting records have not been kept by the Parent Company, or returns adequate for our
audit have not been received from branches not visited by us; or
|
|
-
|
|
the Parent Company 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 Group's and the Parent
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 Group or
the Parent 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.
|
Extent to which the audit was capable of detecting irregularities, including fraud
|
|
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud is detailed below:
|
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and
non-compliance with laws and regulations, our procedures included the following:
|
-
|
|
We made enquiries of management and the directors, including obtaining and reviewing supporting
documentation, concerning the Group's policies and procedures relating to:
|
|
|
-
|
|
identifying, evaluating and complying with laws and regulations and whether they were
aware of any instances of non-compliance;
|
|
|
-
|
|
detecting and responding to the risks of fraud and whether they had knowledge of any
actual, suspected or alleged fraud; and
|
|
|
-
|
|
the internal controls established to mitigate risks related to fraud or non-compliance with
laws and regulations.
|
|
|
We corroborated our enquires through the review of board minutes.
|
|
-
|
|
We obtained an understanding of the legal and regulatory frameworks applicable to the Group based
on our understanding of the business, sector experience and discussions with management. The
most significant considerations for the Group are compliance with UK Accounting Standards, the
Companies Act 2006, corporate taxes, VAT legislation, employment taxes and health and safety
legislation.
|
|
-
|
|
We discussed amongst the engagement team to assess how and where fraud might occur in the
financial statements, any potential indicators of fraud and non-compliance with laws and regulation.
|
|
Based on our understanding of the environment and assessment of the incentive and opportunity for fraud
and non-compliance with laws and regulations gained from the above work we designed and executed the
following procedures:
|
-
|
|
We reviewed correspondence with the relevant authorities to identify any irregularities or instances of
non-compliance with laws and regulations.
|
|
-
|
|
We tested the appropriateness of accounting journals and other adjustments made in the preparation
of the financial statements. We obtained a complete population of all journals in the year and test any
which we considered were indicative of management override.
|
|
-
|
|
We reviewed the Company's and Group's accounting policies for non-compliance with relevant
standards. Our work also included considering significant accounting estimates for evidence of
misstatement or possible bias and testing any significant transactions that appeared to be outside the
normal course of business.
|
|
-
|
|
We also tested manual journals posted to revenue that were either material or fell outside of our
expectations based on our understanding of the Group and Company, agreeing them to supporting
documentation to check that they were appropriate, correctly recorded and supported by appropriate
evidence.
|
|
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement
team members, and remained alert to any indications of fraud or non-compliance with laws and regulations
throughout the audit.
|
Our audit procedures were designed to respond to risks of material misstatement in the financial statements,
recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not
detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery,
misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and
the further removed non-compliance with laws and regulations is from the events and transactions reflected in
the financial statements, the less likely we are to become aware of it.
|
A further description of our responsibilities is available on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
|
This report is made solely to the Parent 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
Parent 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 Parent Company and the Parent Company's members as a body, for our audit work, for this
report, or for the opinions we have formed.
|
Gareth Singleton
(Senior Statutory Auditor)
|
for and on behalf of BDO LLP, statutory auditor
|
BDO LLP is a limited liability partnership registered in England and Wales (with
|
registered number OC305127).
|
TURNOVER
|
4
|
199,622,983
|
|
171,372,627
|
|
|
Cost of sales
|
(145,094,776
|
)
|
(125,078,902
|
)
|
|
GROSS PROFIT
|
54,528,207
|
|
46,293,725
|
|
|
Administrative expenses
|
(28,698,743
|
)
|
(27,167,748
|
)
|
|
OPERATING PROFIT
|
25,829,464
|
|
19,125,977
|
|
|
Interest receivable and similar income
|
21,902
|
|
177,470
|
|
|
Interest payable and similar expenses
|
7
|
(68
|
)
|
(4,672
|
)
|
|
PROFIT BEFORE TAXATION
|
8
|
25,851,298
|
|
19,298,775
|
|
|
Tax on profit
|
10
|
(4,658,062
|
)
|
(3,665,545
|
)
|
|
PROFIT FOR THE FINANCIAL YEAR
|
21,193,236
|
|
15,633,230
|
|
|
Owners of the parent
|
21,076,350
|
|
15,533,194
|
|
|
Non-controlling interests
|
116,886
|
|
100,036
|
|
|
PROFIT FOR THE YEAR
|
21,193,236
|
|
15,633,230
|
|
|
OTHER COMPREHENSIVE INCOME
|
-
|
|
-
|
|
|
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR
|
21,193,236
|
|
15,633,230
|
|
|
Total comprehensive income attributable to:
|
Owners of the parent
|
21,076,350
|
|
15,533,194
|
|
|
Non-controlling interests
|
116,886
|
|
100,036
|
|
|
Intangible assets
|
14
|
257,456
|
|
342,081
|
|
|
Tangible assets
|
15
|
45,943,542
|
|
40,509,561
|
|
|
Stocks
|
17
|
4,679,722
|
|
4,381,267
|
|
|
Debtors: amounts falling due within one
year
|
18
|
33,076,790
|
|
29,986,680
|
|
|
Cash at bank and in hand
|
52,491,361
|
|
39,038,205
|
|
|
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
|
19
|
27,040,353
|
|
24,024,718
|
|
|
NET CURRENT ASSETS
|
63,207,520
|
|
49,381,434
|
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES
|
109,408,518
|
|
90,233,076
|
|
|
CREDITORS: AMOUNTS FALLING
DUE AFTER MORE THAN ONE YEAR
|
20
|
45,275
|
|
47,781
|
|
|
NET ASSETS
|
109,363,243
|
|
90,185,295
|
|
|
Called up share capital
|
23
|
25,000
|
|
1,025,000
|
|
|
Retained earnings
|
24
|
108,535,413
|
|
88,474,351
|
|
|
SHAREHOLDERS' FUNDS
|
108,560,413
|
|
89,499,351
|
|
|
NON-CONTROLLING INTERESTS
|
802,830
|
|
685,944
|
|
|
TOTAL EQUITY
|
109,363,243
|
|
90,185,295
|
|
|
The financial statements were approved by the Board of Directors and authorised for issue on
17 December 2021 and were signed on its behalf by:
|
N C Faulconbridge - Director
|
Tangible assets
|
15
|
3,132,833
|
|
3,152,833
|
|
|
Investments
|
16
|
4,254,150
|
|
4,254,150
|
|
|
Debtors: amounts falling due within one
year
|
18
|
10,749,138
|
|
8,544,057
|
|
|
Debtors: amounts falling due after more
than one year
|
18
|
13,603,430
|
|
12,898,110
|
|
|
Cash at bank
|
29,345,568
|
|
20,627,646
|
|
|
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
|
19
|
10,746,290
|
|
9,472,564
|
|
|
NET CURRENT ASSETS
|
42,951,846
|
|
32,597,249
|
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES
|
50,338,830
|
|
40,004,233
|
|
|
Called up share capital
|
23
|
25,000
|
|
1,025,000
|
|
|
Retained earnings
|
24
|
50,313,830
|
|
38,979,233
|
|
|
SHAREHOLDERS' FUNDS
|
50,338,830
|
|
40,004,233
|
|
|
Company's profit for the financial year
|
12,349,882
|
|
8,343,504
|
|
|
The financial statements were approved by the Board of Directors and authorised for issue on
17 December 2021
and were signed on its behalf by:
|
N C Faulconbridge
- Director
|
|
share
|
|
Retained
|
|
redemption
|
Balance at 1 August 2019
|
8,437,000
|
|
74,027,842
|
|
37,500
|
|
|
Profit for the year
|
-
|
|
15,533,194
|
|
-
|
|
|
Total comprehensive income
|
-
|
|
15,533,194
|
|
-
|
|
|
Dividends
|
-
|
|
(1,124,185
|
)
|
-
|
|
|
Reduction in share capital
|
(7,412,000
|
)
|
37,500
|
|
(37,500
|
)
|
|
Total transactions with owners,
recognised directly in equity
|
(7,412,000
|
)
|
(1,086,685
|
)
|
(37,500
|
)
|
|
Balance at 31 July 2020
|
1,025,000
|
|
88,474,351
|
|
-
|
|
|
Profit for the year
|
-
|
|
21,076,350
|
|
-
|
|
|
Total comprehensive income
|
-
|
|
21,076,350
|
|
-
|
|
|
Dividends
|
-
|
|
(1,015,288
|
)
|
-
|
|
|
Reduction in share capital
|
(1,000,000
|
)
|
-
|
|
-
|
|
|
Total transactions with owners,
recognised directly in equity
|
(1,000,000
|
)
|
(1,015,288
|
)
|
-
|
|
|
Balance at 31 July 2021
|
25,000
|
|
108,535,413
|
|
-
|
|
|
Balance at 1 August 2019
|
82,502,342
|
|
585,908
|
|
83,088,250
|
|
|
Profit for the year
|
15,533,194
|
|
100,036
|
|
15,633,230
|
|
|
Total comprehensive income
|
15,533,194
|
|
100,036
|
|
15,633,230
|
|
|
Dividends
|
(1,124,185
|
)
|
-
|
|
(1,124,185
|
)
|
|
Reduction in share capital
|
(7,412,000
|
)
|
-
|
|
(7,412,000
|
)
|
|
Total transactions with owners,
recognised directly in equity
|
(8,536,185
|
)
|
-
|
|
(8,536,185
|
)
|
|
Balance at 31 July 2020
|
89,499,351
|
|
685,944
|
|
90,185,295
|
|
|
Profit for the year
|
21,076,350
|
|
116,886
|
|
21,193,236
|
|
|
Total comprehensive income
|
21,076,350
|
|
116,886
|
|
21,193,236
|
|
|
Dividends
|
(1,015,288
|
)
|
-
|
|
(1,015,288
|
)
|
|
Reduction in share capital
|
(1,000,000
|
)
|
-
|
|
(1,000,000
|
)
|
|
Total transactions with owners,
recognised directly in equity
|
(2,015,288
|
)
|
-
|
|
(2,015,288
|
)
|
|
Balance at 31 July 2021
|
108,560,413
|
|
802,830
|
|
109,363,243
|
|
|
|
share
|
|
Retained
|
|
redemption
|
|
Total
|
|
capital
|
|
earnings
|
|
reserve
|
|
equity
|
Balance at 1 August 2019
|
8,437,000
|
|
31,722,414
|
|
37,500
|
|
40,196,914
|
|
|
Profit for the year
|
-
|
|
8,343,504
|
|
-
|
|
8,343,504
|
|
|
Total comprehensive income
|
-
|
|
8,343,504
|
|
-
|
|
8,343,504
|
|
|
Dividends
|
-
|
|
(
1,124,185
|
)
|
-
|
|
(
1,124,185
|
)
|
|
Reduction in share capital
|
(7,412,000
|
)
|
37,500
|
|
(37,500
|
)
|
(7,412,000
|
)
|
|
Balance at 31 July 2020
|
1,025,000
|
|
38,979,233
|
|
-
|
|
40,004,233
|
|
|
Profit for the year
|
-
|
|
12,349,882
|
|
-
|
|
12,349,882
|
|
|
Total comprehensive income
|
-
|
|
12,349,882
|
|
-
|
|
12,349,882
|
|
|
Dividends
|
-
|
|
(
1,015,288
|
)
|
-
|
|
(
1,015,288
|
)
|
|
Reduction in share capital
|
(1,000,000
|
)
|
-
|
|
-
|
|
(1,000,000
|
)
|
|
Total transactions with owners,
recognised directly in equity
|
(1,000,000
|
)
|
(1,015,288
|
)
|
-
|
|
(2,015,288
|
)
|
|
Balance at 31 July 2021
|
25,000
|
|
50,313,827
|
|
-
|
|
50,338,827
|
|
|
Cash flows from operating activities
|
Cash generated from operations
|
1
|
33,915,225
|
|
24,676,727
|
|
|
Interest paid
|
(68
|
)
|
(4,672
|
)
|
|
Tax paid
|
(6,225,425
|
)
|
(4,230,995
|
)
|
|
Net cash from operating activities
|
27,689,732
|
|
20,441,060
|
|
|
Cash flows from investing activities
|
Purchase of tangible fixed assets
|
(13,134,804
|
)
|
(9,254,186
|
)
|
|
Sale of tangible fixed assets
|
932,936
|
|
814,136
|
|
|
Interest received
|
21,902
|
|
177,470
|
|
|
Net cash from investing activities
|
(12,179,966
|
)
|
(8,262,580
|
)
|
|
Cash flows from financing activities
|
Capital repayments in year
|
(7,059
|
)
|
(148,396
|
)
|
|
Reduction in share capital
|
(1,000,000
|
)
|
(7,412,000
|
)
|
|
Equity dividends paid
|
(1,049,551
|
)
|
(1,089,096
|
)
|
|
Net cash from financing activities
|
(2,056,610
|
)
|
(8,649,492
|
)
|
|
Increase in cash and cash equivalents
|
13,453,156
|
|
3,528,988
|
|
|
Cash and cash equivalents at
beginning of year
|
2
|
39,038,205
|
|
35,509,217
|
|
|
Cash and cash equivalents at end of
year
|
2
|
52,491,361
|
|
39,038,205
|
|
|
1.
|
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
|
|
Profit before taxation
|
25,851,298
|
|
19,298,775
|
|
|
|
Depreciation charges
|
7,119,609
|
|
6,841,456
|
|
|
|
Profit on disposal of fixed assets
|
(351,162
|
)
|
(356,091
|
)
|
|
|
Amortisation charges
|
84,625
|
|
84,625
|
|
|
|
Finance income
|
(21,902
|
)
|
(177,470
|
)
|
|
|
(Increase)/decrease in stocks
|
(298,455
|
)
|
440,844
|
|
|
|
Increase in trade and other debtors
|
(2,759,475
|
)
|
(1,587,145
|
)
|
|
|
Increase in trade and other creditors
|
4,290,619
|
|
127,061
|
|
|
|
Cash generated from operations
|
33,915,225
|
|
24,676,727
|
|
|
2.
|
CASH AND CASH EQUIVALENTS
|
|
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in
respect of these Statement of Financial Position amounts:
|
|
Cash and cash equivalents
|
52,491,361
|
|
39,038,205
|
|
|
|
Cash and cash equivalents
|
39,038,205
|
|
35,509,217
|
|
|
3.
|
ANALYSIS OF CHANGES IN NET FUNDS
|
|
At 1/8/20
|
Cash flow
|
At 31/7/21
|
|
Cash at bank and in hand
|
39,038,205
|
|
13,453,156
|
|
52,491,361
|
|
|
39,038,205
|
|
13,453,156
|
|
52,491,361
|
|
|
|
Finance leases
|
(7,059
|
)
|
7,059
|
|
-
|
|
|
|
Total
|
39,031,146
|
|
13,460,215
|
|
52,491,361
|
|
|
|
H W Martin Holdings 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 General
Information page.
|
|
Basis of preparing the 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
|
|
The Group funds both day-to-day operations and longer-term strategic development from its liquid
resources, including working capital generated from operations. The Directors have considered the
level of the liquid resources and the expected future profitability of the Group, and are satisfied that,
under anticipated trading conditions, there are sufficient available resources for the Group to meet its
trading requirements through a period of at least 12 months from the date of signing these financial
statements to 31 January 2023. For this reason, they have concluded that it is appropriate to use the
going concern basis on presenting these financial statements.
|
|
The consolidated financial statements include the financial statements of the Company and all of its
subsidiary undertakings made up to 31 July. A subsidiary is an entity controlled by the Group. Control
is the power to govern the financial and operating policies of an entity so as to obtain benefits from its
activities. All intra-group transactions, balances, income and expenses are eliminated on consolidation.
|
|
Where a subsidiary has different accounting policies to the Group, adjustments are made to those
subsidiary financial statements to apply the Group's accounting policies when preparing consolidated
financial statements.
|
|
Turnover is measured as the fair value of the consideration received or receivable, excluding
discounts, rebates, value added tax and other sales taxes.
|
|
Sale of goods are recognised on delivery to the customer. Delivery occurs when the goods have been
shipped to the location specified by the customer, the risks of obsolescence or loss have been
transferred to the customer, the customer has accepted the products in accordance with the sales
contract, the acceptance provisions have lapsed or the Company has objective evidence that all
criteria for acceptance have been satisfied.
|
|
Standard warranties are often provided in conjunction with the sale of goods and relate to the condition
of the item sold at the date of sale. These warranties are not separable from the sale of goods. The full
consideration received is recognised as turnover on the sale, and a provision is recognised for the
expected future cost to be incurred relating to the warranty.
|
|
Turnover is is recognised in the accounting period in which the services are rendered. For longer term
contracts where services are rendered over a period that spans the year-end, turnover is determined
by reference to the value of the work carried out to date in the accounting period in which the services
are rendered and when the outcome of the contract can be estimated reliably. No profit is recognised
until the contract has advanced to a stage where the total profit can be assessed with reasonable
certainty. Provision is made for the full amount of foreseeable losses on contracts. Amounts
recognised as turnover where contract progress is sufficient to do so are included on the statement of
financial position as amounts receivable on contracts.
|
|
iii. Operating lease income
|
|
|
Operating lease income is credited to the Consolidated Income Statement on a straight-line basis over
the period of the relevant lease. Incentives paid and payable to sign an operating lease are debited to
the Consolidated Income Statement, to reduce the lease income, on a straight-line basis over the
period of the lease, unless another systematic basis is representative of the time pattern of the benefit
from the use of the leased asset.
|
|
Business combinations and goodwill
|
|
Business combinations are accounted for by applying the purchase method. The cost of a business
combination is the fair value of the consideration given, liabilities incurred or assumed and of equity
instruments issued plus the costs directly attributable to the business combination.
|
|
On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and
contingent liabilities unless the fair value cannot be measured reliably, in which case the value is
incorporated in goodwill. Intangible assets are only recognised separately from goodwill where they are
separate and arise from contractual or other legal rights. Where the fair value of contingent liabilities
cannot be reliably measured, they are disclosed on the same basis as other contingent liabilities.
|
|
Goodwill recognised represents the excess of the fair value and directly attributable costs of purchase
consideration over the fair values to the Group's interest in identifiable net assets, liabilities and
contingent liabilities acquired.
|
|
On acquisition, goodwill is allocated to cash-generating units ("CGU's") that are expected to benefit
from the combination.
|
|
Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is
assessed for impairment when there are indicators of impairment and any impairment is charged to
the Consolidated Income Statement. No reversals of impairments are recognised.
|
|
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment
losses. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of
the assets to their residual values over their estimated useful lives.
|
|
Patents and licences are being amortised over their useful lives of three years. Amortisation is included
in administrative expenses in the Consolidated Income Statement.
|
|
Where factors, such as technological advancement or changes in market price, indicate that residual
values or useful lives have changed, useful lives or amortisation rates are amended prospectively to
reflect the new circumstances.
|
|
The assets are reviewed for impairment if the above factors indicate that the carrying amount may be
impaired.
|
|
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and any
accumulated impairment losses. Cost includes the original purchase price and expenditure that is
directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by management.
|
|
Depreciation is charged so as to allocate the cost of assets less their residual value over the estimated
useful lives. Depreciation is provided on the following basis:
|
|
Freehold property
|
|
3 - 50
years
straight line
|
|
|
|
Computer equipment
|
|
5
years
straight line
|
|
|
|
Plant & machinery
|
|
2 - 10
years
straight line
|
|
|
|
Motor vehicles
|
|
3 - 6
years
straight line
|
|
|
|
Fixtures & fittings
|
|
1 - 5
years
straight line
|
|
|
|
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted
prospectively if appropriate, or if there is an indication of a significant change since the last reporting
date.
|
|
The carrying amount of any replacement component is derecognised. Major components are treated
as a separate asset where they have significantly different patterns of consumption of economic
benefits and are depreciated separately over its useful life.
|
|
Repairs, maintenance and minor inspection costs are expenses as incurred.
|
|
Tangible assets are derecognised on disposal or when no future economic benefits are expected.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount
and are recognised in the Consolidated Income Statement.
|
|
Impairment of non-financial assets
|
|
At each statement of financial position date, non-financial assets not carried at fair value are assessed
to determine whether there is an indication that the asset (or asset's cash generating unit ("CGU"))
may be impaired. If there is such an indication, the recoverable amount of the asset (or asset's CGU)
is compared to the carrying value of the asset (or asset's CGU).
|
|
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less
costs to complete and sell. Stocks are recognised as an expense in the period in which the related
revenue is recognised.
|
|
Cost is based on the cost of purchase on a first in, first out basis. Cost includes the purchase price,
including taxes and duties and transport and handling directly attributable to bringing the inventory to its
present location and condition. The cost of work-in-progress and finished goods includes design costs,
raw materials, direct labour and other direct costs and related production overheads.
|
|
At each statement of financial position date, stocks are assessed for impairment. If stock is impaired,
the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss
is recognised immediately in the Consolidated Income Statement. Where a reversal of the impairment
is recognised, the impairment charge is reversed, up to the original impairment loss, and is recognised
as a credit in the Consolidated Income Statement.
|
|
Cash and cash equivalents
|
|
Cash and cash equivalents includes cash in hand, deposits held at call with financial institutions
repayable without penalty on notice of not more than 24 hours, other short-term highly liquid
investments with original maturities of three months or less from the date of acquisition that are readily
convertible to known amounts of cash with insignificant risk of change in value.
|
|
The Group only enters into basic financial instruments transactions that result in the recognition of
basic financial assets and liabilities. The Group has chosen to adopt the Section 11 of FRS 102 in
respect of financial instruments.
|
|
Basic financial assets, including trade and other debtors and cash and bank balances, are initially
recognised at transaction price, 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.
|
|
Such assets are subsequently carried at amortised cost using the effective interest method.
|
|
At the end of each reporting period, financial assets measured at amortised cost are assessed for
objective evidence of impairment. If an asset is impaired, the impairment loss is the difference
between the carrying amount and the present value of the estimated cash flows discounted at the
asset's original effective interest rate. The impairment loss is recognised in the Consolidated Income
Statement.
|
|
If there is a decrease in the impairment loss arising from an event occurring after the impairment was
recognised, the impairment is reversed. The reversal is such that the current carrying amount does not
exceed what the carrying amount would have been had the impairment not previously been
recognised. The impairment reversal is recognised in the Consolidated Income Statement.
|
|
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset
expire or are settled or (b) substantially all the risks and rewards of the ownership of the asset are
transferred to another party or (c) control of the asset has been transferred to another party who has
the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional
restrictions.
|
|
ii. Financial liabilities
|
|
|
Basic financial liabilities, including trade and other creditors 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.
|
|
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
|
|
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary
course of business from suppliers. Trade creditors are classified as current liabilities if payment is due
within one year or less. If not, they are presented as non-current liabilities. Trade creditors are
recognised initially at transaction price and subsequently measured at amortised cost using the
effective interest rate method.
|
|
Financial liabilities are derecognised when the liability is extinguished (i.e. when the contractual
obligation is discharged, cancelled or expires).
|
|
Financial assets and liabilities are offset and the net amount reported in the statement of financial
position when there is an 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.
|
|
Taxation expense for the year comprises current and deferred tax recognised in the reporting period.
Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case tax is also recognised in
other comprehensive income or directly in equity respectively.
|
|
Current or deferred taxation assets and liabilities are not discounted.
|
|
Current tax is the amount of tax payable in respect of the taxable profit for the year or prior years. Tax
is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the
statement of financial position date.
|
|
Management periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities.
|
|
Deferred tax arises from timing differences that are differences between taxable profits and total
comprehensive income as stated in the financial statements. These 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 recognised in respect of all timing differences that have originated but not reversed at
the statement of financial position date, except that:
|
|
-
|
|
the recognition of deferred tax assets is limited to the extent that it is probable that they will be
recovered against the reversal of deferred tax liabilities or other future taxable profits; and
|
|
|
|
-
|
|
any deferred tax balances are reversed if and when all conditions for retaining associated tax
allowances have been met.
|
|
|
|
Deferred tax balances are not recognised in respect of permanent differences except in respect of
business combinations, when deferred tax is recognised on the differences between the fair values of
assets acquired and the future tax deductions available for them and the differences between the fair
value of liabilities acquired and the amount that will be assessed for tax.
|
|
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.
|
|
i. Functional and presentational currency
|
|
|
The Group's functional and presentation currency is the pound sterling.
|
|
ii. Transactions and balances
|
|
|
Foreign currency transactions are translated into the functional currency using the spot exchange rates
at the dates of the transactions.
|
|
At each period-end, foreign currency monetary items are translated using the closing rate.
Non-monetary items measured at historical cost are translated using the exchange rate at the date of
the transaction and non-monetary items measured at fair value are measured using the exchange rate
when fair value was determined.
|
|
Foreign exchange gains and losses resulting from the settlement of transactions and from the
translation at period-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in the Consolidated Income Statement.
|
|
At inception the Group assesses agreements that transfer the right to use assets. The assessment
considers whether the arrangement is, or contains, a lease based on the substance of the
arrangement.
|
|
i. Finance leased/hire purchased assets
|
|
|
Leases of assets that transfer substantially all the risks and rewards incidental to ownership are
classified as finance leases/hire purchase contracts.
|
|
Finance leases/hire purchase contracts are capitalised on the Group's statement of financial position at
commencement of the lease as assets at the fair value of the leased asset or, if lower, the present
value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the
implicit interest rate cannot be determined the Group's incremental borrowing rate is used. Incremental
debt costs, incurred in negotiating and arranging the lease, are included in the cost of the asset.
|
|
Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset.
Assets are assessed for impairment at each reporting date.
|
|
The capital element of lease obligations is recorded as a liability on inception of the arrangement.
Lease payments are apportioned between capital repayment and finance charge, using the effective
interest rate method, to produce a constant rate of charge on the balance of the capital repayments
outstanding.
|
|
ii. Operating leased assets
|
|
|
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases.
Payments under operating leases are charged to the Consolidated Income Statement on a straight-line
basis over the period of the lease.
|
|
Incentives received to enter into a finance lease reduce the fair value of the asset and are included in
the calculated of present value of minimum lease payments.
|
|
Incentives received to enter into an operating lease are credited to the Consolidated Income
Statement, to reduce the lease expense, on a straight-line basis over the period of the lease, unless
another systematic basis is representative of the time pattern of the benefit from the use of the leases
asset.
|
|
Leasing arrangements - continued
|
|
At inception the Group assesses agreements that transfer the right to use assets. The assessment
considers whether the arrangement is, or contains, a lease based on the substance of the
arrangement.
|
|
i. Operating leased assets
|
|
|
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases.
The related asset remains on the Group's statement of financial position, and the related income is
credited to the Consolidated Income Statement on a straight-line basis over the term of the relevant
lease.
|
|
Incentives paid and payable to sign an operating lease are debited to the Consolidated Income
Statement, to reduce the lease income, on a straight-line basis over the period of the lease, unless
another systematic basis is representative of the time pattern of the benefit from the use of the leased
asset.
|
|
The Group provides a range of benefits to employees, including paid holiday arrangements and
defined contribution pension plans.
|
|
Short-term benefits, including holiday pay and other similar non-monetary benefits, are recognised as
an expense in the period in which the service is received.
|
|
ii. Defined contribution pension plans
|
|
|
The Group operates a defined contribution pension scheme for its employees. A defined contribution
plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the
contributions have been paid, the Group has no further payment obligations. Contributions payable to
the Group's pension scheme are charged to the Consolidated Income Statement in the period to which
they relate. Amounts not paid are shown in other creditors as a liability in the statement of financial
position. The assets of the plan are held separately from the Group in independently administered
funds.
|
|
Distributions to equity holders
|
|
Dividends and other distributions to the Company's shareholders are recognised as a liability in the
financial statements in the period in which they are approved by the Company's shareholders. These
amounts are recognised in retained earnings.
|
3.
|
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
|
|
Preparation of the financial statements required management to make significant judgements and
estimates. The items in the financial statements where these judgements and estimates have been
made include:
|
|
Impairment of financial
assets
|
|
At the end of each reporting period, an assessment is made as to
whether there is objective evidence of impairment of any financial
assets that are measured at cost or amortised cost, including trade
debtors, stock and amounts recoverable on contracts. If there is
objective evidence of impairment, an impairment loss is recognised in
the Consolidated Income Statement immediately.
|
|
|
|
Impairment of investments
|
|
Determining whether the Company's investments in subsidiary
undertakings are to be impaired requires a judgement as to whether
there is an indication of impairment. The Directors consider there to
be no indicators of impairment in any of the Company's investments.
|
|
|
|
Value of land included in
freehold property
|
|
Upon purchase of freehold property, an estimate is made to ascertain
the value of the land and the value of the buildings included in the
purchase price. This forms the basis of depreciation of freehold
property, given that land is not depreciated.
|
|
|
|
The turnover and profit before taxation are attributable to the one principal activity of the Group.
|
|
An analysis of turnover by class of business is given below:
|
|
Traffic management
|
95,221,257
|
|
85,202,986
|
|
|
|
Waste recycling and management
|
57,009,563
|
|
45,868,118
|
|
|
|
Fence installation
|
18,018,539
|
|
13,506,567
|
|
|
|
Specialist vehicles
|
13,326,909
|
|
12,609,920
|
|
|
|
Vehicle restraint systems
|
10,767,053
|
|
9,996,304
|
|
|
|
Perimeter systems manufacture
|
3,680,998
|
|
2,897,521
|
|
|
|
Other
|
1,598,664
|
|
1,291,211
|
|
|
|
Including within turnover attributable to the specialist vehicles class of business is operating lease
income of £3,895,591 (2020: £3,114,537).
|
5.
|
EMPLOYEES AND DIRECTORS
|
|
Wages and salaries
|
45,036,840
|
|
40,655,583
|
|
|
|
Social security costs
|
5,123,071
|
|
3,753,288
|
|
|
|
Other pension costs
|
1,367,378
|
|
984,035
|
|
|
|
The average number of employees during the year was as follows:
|
|
Administration & management
|
248
|
|
232
|
|
|
|
Directors' remuneration
|
1,896,478
|
|
1,645,370
|
|
|
|
Information regarding the highest paid director is as follows:
|
|
Emoluments etc
|
777,242
|
|
645,533
|
|
|
|
Company contributions to defined contribution pension schemes in respect of the directors amounted
to £10,000 (2020: £10,000). The value of the Company's contributions in respect of the highest paid
director amounted to £nil (2020: £10,000).
|
7.
|
INTEREST PAYABLE AND SIMILAR EXPENSES
|
|
8.
|
PROFIT BEFORE TAXATION
|
|
The profit is stated after charging/(crediting):
|
|
Other operating leases
|
345,918
|
|
298,001
|
|
|
|
Depreciation - owned assets
|
8,100,068
|
|
6,827,459
|
|
|
|
Depreciation - assets on hire purchase contracts
|
-
|
|
14,000
|
|
|
|
Profit on disposal of fixed assets
|
(
351,162
|
)
|
(
356,091
|
)
|
|
|
Goodwill amortisation
|
84,625
|
|
84,625
|
|
|
|
Foreign exchange differences
|
(
15,305
|
)
|
(
69,157
|
)
|
|
9.
|
AUDITORS' REMUNERATION
|
|
Fees payable to the Company's auditor and its associates for the
audit of the Company's financial statements
|
160,000
|
|
97,950
|
|
|
|
Taxation compliance services
|
43,500
|
|
31,500
|
|
|
|
Analysis of the tax charge
|
|
The tax charge on the profit for the year was as follows:
|
|
UK corporation tax
|
4,989,257
|
|
3,801,445
|
|
|
|
Deferred tax
|
(
331,195
|
)
|
(
135,900
|
)
|
|
|
Tax on profit
|
4,658,062
|
|
3,665,545
|
|
|
|
UK corporation tax has been charged at
19
% (2020 -
19
%).
|
|
Reconciliation of total tax charge included in profit and loss
|
|
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The
difference is explained below:
|
|
Profit before tax
|
25,851,298
|
|
19,298,775
|
|
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
19
% (2020 -
19
%)
|
4,911,747
|
|
3,666,767
|
|
|
|
Expenses not deductible for tax purposes
|
22,299
|
|
69,356
|
|
|
|
Income not taxable for tax purposes
|
(
690
|
)
|
-
|
|
|
|
Depreciation in excess of capital allowances
|
104,718
|
|
8,862
|
|
|
|
Adjustments to tax charge in respect of previous periods
|
(
158,280
|
)
|
287
|
|
|
|
Remeasurement of deferred tax for changes in tax rates
|
(
217,762
|
)
|
-
|
|
|
|
Adjust deferred tax charge to average rate
|
-
|
|
(
5,504
|
)
|
|
|
Deferred tax not recognised
|
(
12,311
|
)
|
(
431
|
)
|
|
|
Other differences leading to an increase/(decrease) in taxation
|
8,341
|
|
(
73,792
|
)
|
|
|
Total tax charge
|
4,658,062
|
|
3,665,545
|
|
|
|
In March 2020, the Finance Bill 2020 was substantively enacted which maintained the corporation tax
rate at 19% and in May 2021 the rate was increased to 25% in the Finance Bill 2021, effective from
April 2023. Deferred taxes at the balance sheet date have been measured using the enacted tax rate
and reflected in these financial statements.
|
11.
|
INDIVIDUAL INCOME STATEMENT
|
|
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company
is not presented as part of these financial statements.
|
|
Ordinary shares of £1 each
|
|
Final
|
1,000,000
|
|
1,000,000
|
|
|
|
Redeemable preference shares of £1 each
|
13.
|
PRIOR YEAR ADJUSTMENT
|
|
In the previous year's financial statements, a consolidation adjustment was processed to eliminate the
cost and accumulated depreciation of historic fully depreciated tangible fixed assets which were not
recognised in the Group financial statements. The assets in question were disposed of before the start
of the previous period and following the disposal of the tangible fixed assets, the consolidation
adjustment to eliminate the cost and accumulated depreciation continued to be processed in error.
Given the error occurred before the beginning of the prior year, the balances of cost and accumulated
depreciation in the plant and machinery category as at 1 August 2019 have been increased by
£4,037,188 to reverse this elimination. The net effect on the net book value of tangible fixed assets is
£nil.
|
14.
|
INTANGIBLE FIXED ASSETS
|
|
and 31 July 2021
|
8,215,024
|
|
1,422,501
|
|
9,637,525
|
|
|
|
At 1 August 2020
|
7,895,445
|
|
1,399,999
|
|
9,295,444
|
|
|
|
Amortisation for year
|
84,625
|
|
-
|
|
84,625
|
|
|
|
At 31 July 2021
|
7,980,070
|
|
1,399,999
|
|
9,380,069
|
|
|
|
At 31 July 2021
|
234,954
|
|
22,502
|
|
257,456
|
|
|
|
At 31 July 2020
|
319,579
|
|
22,502
|
|
342,081
|
|
|
|
and 31 July 2021
|
1,400,000
|
|
|
|
and 31 July 2021
|
1,399,999
|
|
|
15.
|
TANGIBLE FIXED ASSETS
|
|
property
|
|
machinery
|
|
fittings
|
|
At 1 August 2020
|
23,600,213
|
|
22,893,812
|
|
1,801
|
|
|
|
Additions
|
3,005,929
|
|
6,225,384
|
|
165,073
|
|
|
|
Disposals
|
-
|
|
(1,817,927
|
)
|
-
|
|
|
|
At 31 July 2021
|
26,606,142
|
|
27,301,269
|
|
166,874
|
|
|
|
At 1 August 2020
|
1,451,788
|
|
15,230,528
|
|
(2,436
|
)
|
|
|
Charge for year
|
449,782
|
|
3,195,761
|
|
168,582
|
|
|
|
Eliminated on disposal
|
-
|
|
(1,418,758
|
)
|
-
|
|
|
|
At 31 July 2021
|
1,901,570
|
|
17,007,531
|
|
166,146
|
|
|
|
At 31 July 2021
|
24,704,572
|
|
10,293,738
|
|
728
|
|
|
|
At 31 July 2020
|
22,148,425
|
|
7,663,284
|
|
4,237
|
|
|
|
vehicles
|
|
equipment
|
|
Totals
|
|
At 1 August 2020
|
30,705,386
|
|
248,440
|
|
77,449,652
|
|
|
|
Additions
|
4,719,437
|
|
-
|
|
14,115,823
|
|
|
|
Disposals
|
(1,704,244
|
)
|
(23,889
|
)
|
(3,546,060
|
)
|
|
|
At 31 July 2021
|
33,720,579
|
|
224,551
|
|
88,019,415
|
|
|
|
At 1 August 2020
|
20,044,094
|
|
216,117
|
|
36,940,091
|
|
|
|
Charge for year
|
4,276,825
|
|
9,118
|
|
8,100,068
|
|
|
|
Eliminated on disposal
|
(1,521,639
|
)
|
(23,889
|
)
|
(2,964,286
|
)
|
|
|
At 31 July 2021
|
22,799,280
|
|
201,346
|
|
42,075,873
|
|
|
|
At 31 July 2021
|
10,921,299
|
|
23,205
|
|
45,943,542
|
|
|
|
At 31 July 2020
|
10,661,292
|
|
32,323
|
|
40,509,561
|
|
|
|
Included in cost of land and buildings is freehold land of £13,594,734 (2020 - £13,074,734) which is not
depreciated.
|
|
Opening balances of cost and accumulated depreciation in the plant and machinery category have
been restated. See note 13 for further information.
|
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
|
|
Transfer to ownership
|
(140,000
|
)
|
|
|
Transfer to ownership
|
(66,500
|
)
|
|
|
and 31 July 2021
|
3,169,500
|
|
|
|
At 31 July 2021
|
3,132,833
|
|
|
|
At 31 July 2020
|
3,152,833
|
|
|
16.
|
FIXED ASSET INVESTMENTS
|
|
and 31 July 2021
|
4,254,150
|
|
|
|
At 31 July 2021
|
4,254,150
|
|
|
|
At 31 July 2020
|
4,254,150
|
|
|
|
The Group or the Company's investments at the Statement of Financial Position date in the share
capital of companies include the following:
|
|
H W Martin (Fencing Contractors) Limited
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Installation of fencing and perimeter systems
|
|
Aggregate capital and reserves
|
5,666,245
|
|
4,965,076
|
|
|
|
Profit for the year
|
1,701,169
|
|
998,131
|
|
|
|
H W Martin Safety Fencing Limited
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Installation of security/ barrier perimeter systems
|
|
Aggregate capital and reserves
|
4,811,277
|
|
4,353,571
|
|
|
|
Profit for the year
|
1,457,706
|
|
935,524
|
|
|
|
H W Martin (Traffic Management) Limited
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Design/install of traffic management systems
|
|
Aggregate capital and reserves
|
16,467,844
|
|
14,864,613
|
|
|
|
Profit for the year
|
4,603,231
|
|
6,026,536
|
|
|
|
H W Martin (Plant) Limited
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Vehicle & plant provision and maintenance
|
|
Aggregate capital and reserves
|
2,746,985
|
|
2,374,308
|
|
|
|
Profit for the year
|
372,677
|
|
29,971
|
|
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Management/treatment of waste/recyclable products
|
|
Aggregate capital and reserves
|
15,947,147
|
|
12,997,825
|
|
|
|
Profit for the year
|
4,949,322
|
|
2,829,626
|
|
|
|
Registered office:
Lochrin Works, 7 Limekilns Road, Blairlinn Industrial Estate, Cumbernauld, G67 2RN
|
|
Nature of business:
Manufacture of steel galvanised fencing
|
|
Aggregate capital and reserves
|
2,725,596
|
|
2,485,722
|
|
|
|
Profit for the year
|
739,874
|
|
487,723
|
|
|
|
King Vehicle Engineering Limited
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Holding company
|
|
Aggregate capital and reserves
|
4,063,205
|
|
4,066,888
|
|
|
|
Loss for the year
|
(
3,683
|
)
|
(
81,072
|
)
|
|
|
King Highway Products Limited*
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Manufacture of specialist truck equipment
|
|
Aggregate capital and reserves
|
2,203,212
|
|
1,703,554
|
|
|
|
Profit for the year
|
499,658
|
|
248,431
|
|
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Manufacture of specialist trailers & truck bodies
|
|
Aggregate capital and reserves
|
1,281,064
|
|
1,229,603
|
|
|
|
Profit for the year
|
51,461
|
|
356,593
|
|
|
|
King Transport Equipment Limited*
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Manufacture/sale of engineer solutions
|
|
Aggregate capital and reserves
|
166,869
|
|
31,073
|
|
|
|
Profit for the year
|
135,796
|
|
127,376
|
|
|
|
Safety Vehicle Hire & Lease Limited*
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Hire and lease of specialist vehicles
|
|
Aggregate capital and reserves
|
3,418,093
|
|
2,934,345
|
|
|
|
Profit for the year
|
483,748
|
|
345,376
|
|
|
|
Premier Waste Recycling Limited*
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Management of commercial waste
|
|
Aggregate capital and reserves
|
4,919,402
|
|
3,919,907
|
|
|
|
Profit for the year
|
999,495
|
|
660,589
|
|
|
|
Registered office:
Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
|
|
Nature of business:
Design/installation of traffic control systems
|
|
Aggregate capital and reserves
|
1,786,827
|
|
1,351,169
|
|
|
|
Profit for the year
|
435,658
|
|
155,825
|
|
|
|
Companies with * are indirect subsidiary undertakings.
|
|
Raw materials
|
2,323,653
|
|
2,760,957
|
|
|
|
Work-in-progress
|
2,318,890
|
|
1,344,814
|
|
|
|
Finished goods
|
37,179
|
|
275,496
|
|
|
|
Amounts falling due within one year:
|
|
|
Trade debtors
|
16,986,340
|
|
13,879,816
|
|
-
|
|
-
|
|
|
|
Amounts owed by group undertakings
|
-
|
|
-
|
|
7,094,441
|
|
8,515,795
|
|
|
|
Amounts recoverable on contract
|
13,463,928
|
|
13,449,183
|
|
-
|
|
-
|
|
|
|
Other debtors
|
17,602
|
|
170,388
|
|
11,748
|
|
9,416
|
|
|
|
Deferred tax asset
|
933,495
|
|
602,300
|
|
-
|
|
-
|
|
|
|
Prepayments and accrued income
|
1,675,425
|
|
1,884,993
|
|
-
|
|
-
|
|
|
|
Corporation tax recoverable
|
-
|
|
-
|
|
3,642,949
|
|
18,846
|
|
|
33,076,790
|
|
29,986,680
|
|
10,749,138
|
|
8,544,057
|
|
|
|
Amounts falling due after more than one
|
year:
|
|
|
Amounts owed by group undertakings
|
-
|
|
-
|
|
13,603,430
|
|
12,898,110
|
|
|
|
Aggregate amounts
|
33,076,790
|
|
29,986,680
|
|
24,352,568
|
|
21,442,167
|
|
|
|
Deferred tax
|
933,495
|
|
602,300
|
|
-
|
|
-
|
|
|
|
Amounts owed by group undertakings falling due within one year are interest free and repayable on
demand.
|
|
Trade debtors are stated after provisions for impairment of £80,832 (2020: £68,081). Impairment
losses reversed in the Consolidated Income Statement during the year amounted to £50,705 (2020:
£102,876 reversed).
|
19.
|
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|
|
|
Hire purchase contracts (see note 21)
|
-
|
|
7,059
|
|
-
|
|
-
|
|
|
|
Trade creditors
|
16,017,250
|
|
13,331,581
|
|
-
|
|
-
|
|
|
|
Amounts owed to group undertakings
|
-
|
|
-
|
|
2,966,932
|
|
4,336,987
|
|
|
|
Corporation tax
|
38,165
|
|
1,274,333
|
|
3,504,912
|
|
-
|
|
|
|
Social security and other taxes
|
1,354,694
|
|
3,743,068
|
|
153,954
|
|
2,753,158
|
|
|
|
VAT
|
1,461,912
|
|
-
|
|
1,466,785
|
|
-
|
|
|
|
Other creditors
|
1,024,067
|
|
1,056,024
|
|
1,004,222
|
|
1,039,311
|
|
|
|
Accruals and deferred income
|
7,144,265
|
|
4,612,653
|
|
1,649,485
|
|
1,343,108
|
|
|
27,040,353
|
|
24,024,718
|
|
10,746,290
|
|
9,472,564
|
|
|
|
Amounts owed to group undertakings are interest free and repayable on demand.
|
20.
|
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
|
|
|
Deferred government grants
|
45,275
|
|
47,781
|
|
|
|
Minimum lease payments fall due as follows:
|
|
Net obligations repayable:
|
|
Non-cancellable
|
operating leases
|
|
|
Within one year
|
365,563
|
|
3,992
|
|
|
|
Between one and five years
|
708,344
|
|
-
|
|
|
|
In more than five years
|
12
|
|
-
|
|
|
|
The Group is a lessee of various properties for use in the business.
|
|
Minimum lease payments under non-cancellable operating leases are receivable as follows:
|
|
Within one year
|
|
1,220,581
|
|
1,616,135
|
|
|
|
Between one and five years
|
|
1,950,518
|
|
689,374
|
|
|
|
After five years
|
|
548,865
|
|
-
|
|
|
|
The Group acts as a lessor of specialist vehicles and trailers to the traffic management and wider
construction industry.
|
|
Balance at 1 August 2020
|
(602,300
|
)
|
|
|
Credit to Income Statement during year
|
(331,195
|
)
|
|
|
Balance at 31 July 2021
|
(933,495
|
)
|
|
|
The deferred tax asset us made up as follows:
|
|
Accelerated capital allowances
|
|
(928,390
|
)
|
(594,700
|
)
|
|
|
Short-term timing differences
|
|
(5,105
|
)
|
(7,600
|
)
|
|
23.
|
CALLED UP SHARE CAPITAL
|
|
Allotted, issued and fully paid:
|
|
Number:
|
Class:
|
Nominal
|
2021
|
2020
|
|
|
25,000
|
Ordinary
|
£1
|
25,000
|
|
25,000
|
|
|
|
1,000,000
|
Redeemable preference
|
£1
|
-
|
|
1,000,000
|
|
|
|
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and
the repayment of capital.
|
|
The preference shares carry no voting rights. The holders of preference shares are entitled to be paid
a preferential dividend, before dividends paid to ordinary shareholders, at the rate of 3% per annum
above the base rate of Barclays Bank plc.
|
|
At 1 August 2020
|
88,474,351
|
|
|
|
Profit for the year
|
21,076,350
|
|
|
|
At 31 July 2021
|
108,535,413
|
|
|
|
At 1 August 2020
|
38,979,236
|
|
|
|
Profit for the year
|
12,349,882
|
|
|
|
At 31 July 2021
|
50,313,830
|
|
|
|
Profit and loss account includes all current and prior period retained profits and losses.
|
|
The Group operates a defined contribution pension scheme. The assets of the scheme are
administered by trustees in funds independent from those of the Group.
|
|
The pension cost charges represents contributions payable by the Company into the fund and
amounted to £1,367,378 (2020: £984,035).
|
|
Contributions totalling £nil (2020: £4,300) were payable to the fund at the balance sheet date.
|
|
Contracted but not provided for in the
|
|
financial statements
|
1,086,265
|
|
1,350,020
|
|
|
27.
|
RELATED PARTY DISCLOSURES
|
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102
'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related
party transactions with wholly owned subsidiaries within the group.
|
|
Transactions between group entities which have been eliminated on consolidation are not disclosed
within the financial statements.
|
|
Entities under common control
|
|
Amount due from related parties
|
13,177
|
|
3,663
|
|
|
28.
|
ULTIMATE CONTROLLING PARTY
|
|
The ultimate controlling party is H W Martin.
|