Company registration number 03163385 (England and Wales)
TRAYLEN ENTERPRISES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
Richard Anthony
Chartered Accountants and Registered Auditors
TRAYLEN ENTERPRISES LIMITED
COMPANY INFORMATION
Director
Mr T Traylen Jnr
Company number
03163385
Registered office
Woburn Park Farm
Addlestone Moor
Addlestone
Surrey
KT15 2QF
Auditor
Richard Anthony
2nd Floor Gadd House
Arcadia Avenue
London
N3 2JU
TRAYLEN ENTERPRISES LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
TRAYLEN ENTERPRISES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -
The director presents the strategic report for the year ended 28 February 2023.
Principal activities
The principal activity of the company continued to be that of supply, hiring and maintenance of trailers and other facilities.
Review of the business
The business has traded well in the current accounting period. Although turnover has fallen slightly, tighter control over the direct costs has meant an improved gross profit margin compared to the previous accounting period
Administration costs have also fallen, although this is largely due to the sale proceeds of many fixed assets over and above their net book value and a lower depreciation charge.
Principal risks and uncertainties
The main risk and uncertainty that the company has faced in recent times is the impact of Covid-19 on all aspects of its income. Supplying the film, television and media sectors with goods and services has meant that as production was put on hold, the company could not generate the income to sustain as much of a profitable business as would normally be the case.
Development and performance
The director is confident that the company will continue to provide the excellent service within the industry in which it operates due to the reliable and reputable name it has established over many years.
Key performance indicators
The director is involved in all of the day to day running of the business and due to this, retains an excellent knowledge of the current practices as well as a good understanding of the company's overall detailed operations.
The key performance indicators have always been related to the profitability of the company and are highlighted by the following main indicators:
Mr T Traylen Jnr
Director
29 November 2023
TRAYLEN ENTERPRISES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
The director presents his annual report and financial statements for the year ended 28 February 2023.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £1,252,000. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr T Traylen Jnr
Auditor
In accordance with the company's articles, a resolution proposing that Richard Anthonybe reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
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 auditor is 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 auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr T Traylen Jnr
Director
29 November 2023
TRAYLEN ENTERPRISES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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.
TRAYLEN ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF TRAYLEN ENTERPRISES LIMITED
- 4 -
Opinion
We have audited the financial statements of Traylen Enterprises Limited (the 'company') for the year ended 28 February 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 28 February 2023 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
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
TRAYLEN ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF TRAYLEN ENTERPRISES LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
The Companies Act 2006
Financial Reporting Standard 102
UK tax legislation
UK employment legislation
UK health and safety legislation
General Data Protection Regulations
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the company is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with these laws and regulations. The assessment did not identify any issues in this area.
TRAYLEN ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF TRAYLEN ENTERPRISES LIMITED
- 6 -
We assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
Identifying and assessing the measures management has in place to prevent and detect fraud,
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,
Challenging assumptions and judgements made by management in its significant estimates, and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential existed within the recording and recognition of revenue and the recognition of fixed assets.
Our procedures in these respects were focused on the origination of revenue and directed towards ensuring the accuracy and completeness of the same by undertaking testing on a sample basis of the revenue items to ensure that sales had been recorded correctly and in the appropriate accounting period and the confirmation of ownership and availability for hire of the fixed assets to ensure that only assets still held and in use are recorded within the accounts. We consider that the work we undertook in this regard was considered capable of detecting irregularities and fraud within the sales cycle and accounting for fixed assets appropriately.
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring to fraud other than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Michael Barnett BA FCA
Senior Statutory Auditor
For and on behalf of Richard Anthony
30 November 2023
Chartered Accountants
Statutory Auditor
2nd Floor Gadd House
Arcadia Avenue
London
N3 2JU
TRAYLEN ENTERPRISES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
12,961,974
14,642,695
Cost of sales
(6,421,012)
(7,437,394)
Gross profit
6,540,962
7,205,301
Administrative expenses
(737,899)
(1,947,016)
Other operating income
639,792
448,145
Operating profit
4
6,442,855
5,706,430
Interest receivable and similar income
7
201,575
4,363
Profit before taxation
6,644,430
5,710,793
Tax on profit
8
(1,426,244)
(723,739)
Profit for the financial year
5,218,186
4,987,054
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TRAYLEN ENTERPRISES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
2023
2022
£
£
Profit for the year
5,218,186
4,987,054
Other comprehensive income
Revaluation of tangible fixed assets
10,390,000
Tax relating to other comprehensive income
(2,597,500)
Other comprehensive income for the year
7,792,500
Total comprehensive income for the year
13,010,686
4,987,054
TRAYLEN ENTERPRISES LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
24,461,706
12,666,036
Current assets
Stocks
11
13,796
9,755
Debtors
12
4,243,610
7,179,571
Cash at bank and in hand
14,118,455
8,699,468
18,375,861
15,888,794
Creditors: amounts falling due within one year
13
(1,689,980)
(2,138,729)
Net current assets
16,685,881
13,750,065
Total assets less current liabilities
41,147,587
26,416,101
Provisions for liabilities
Deferred tax liability
14
4,483,539
1,510,739
(4,483,539)
(1,510,739)
Net assets
36,664,048
24,905,362
Capital and reserves
Called up share capital
16
100
100
Revaluation reserve
13,623,101
5,830,601
Profit and loss reserves
23,040,847
19,074,661
Total equity
36,664,048
24,905,362
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved and signed by the director and authorised for issue on 29 November 2023
Mr T Traylen Jnr
Director
Company registration number 03163385 (England and Wales)
TRAYLEN ENTERPRISES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2021
100
5,830,601
14,089,607
19,920,308
Year ended 28 February 2022:
Profit and total comprehensive income
-
-
4,987,054
4,987,054
Dividends
9
-
-
(2,000)
(2,000)
Balance at 28 February 2022
100
5,830,601
19,074,661
24,905,362
Year ended 28 February 2023:
Profit
-
-
5,218,186
5,218,186
Other comprehensive income:
Revaluation of tangible fixed assets
-
10,390,000
-
10,390,000
Tax relating to other comprehensive income
-
(2,597,500)
(2,597,500)
Total comprehensive income
-
7,792,500
5,218,186
13,010,686
Dividends
9
-
-
(1,252,000)
(1,252,000)
Balance at 28 February 2023
100
13,623,101
23,040,847
36,664,048
TRAYLEN ENTERPRISES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
5,381,411
6,192,774
Income taxes paid
(932,646)
(386,919)
Net cash inflow from operating activities
4,448,765
5,805,855
Investing activities
Purchase of tangible fixed assets
(2,284,871)
(1,035,276)
Proceeds from disposal of tangible fixed assets
1,232,518
139,801
Repayment of loans
3,073,000
(3,070,900)
Interest received
201,575
4,363
Net cash generated from/(used in) investing activities
2,222,222
(3,962,012)
Financing activities
Dividends paid
(1,252,000)
(2,000)
Net cash used in financing activities
(1,252,000)
(2,000)
Net increase in cash and cash equivalents
5,418,987
1,841,843
Cash and cash equivalents at beginning of year
8,699,468
6,857,625
Cash and cash equivalents at end of year
14,118,455
8,699,468
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 12 -
1
Accounting policies
Company information
Traylen Enterprises Limited is a private company limited by shares incorporated in England and Wales. The registered office is Woburn Park Farm, Addlestone Moor, Addlestone, Surrey, KT15 2QF.
1.1
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
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, which is that of the supply, for hire, of goods and associated services and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
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.
Tangible fixed assets are stated at cost or valuation less depreciation. The principal activity of the company is to acquire equipment for hire, but due to the nature of the trade such equipment for hire is regularly disposed. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:
Land and buildings Freehold
Straight line over 30 years on buildings
Plant and machinery
25% reducing balance
Equipment for Hire
20% reducing balance
Computer equipment
33% straight line
Motor vehicles
25% reducing balance
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.
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents 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. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.
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 profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.10
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.
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 16 -
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
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 fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Hire and sale of trailers
12,252,004
14,091,390
Sale of diesel
709,970
551,305
12,961,974
14,642,695
2023
2022
£
£
Turnover analysed by geographical market
UK
12,961,974
14,642,695
2023
2022
£
£
Other revenue
Interest income
201,575
4,363
Grants received
-
27,021
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
36,660
(13,771)
Government grants
-
(27,021)
Fees payable to the company's auditor for the audit of the company's financial statements
Depreciation of owned tangible fixed assets
513,447
1,013,260
Profit on disposal of tangible fixed assets
(866,764)
(104,404)
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
36
40
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
988,915
986,752
Social security costs
114,199
96,751
Pension costs
17,687
17,149
1,120,801
1,100,652
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
12,000
12,000
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
200,707
2,183
Other interest income
868
2,180
Total income
201,575
4,363
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
200,707
2,183
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,050,944
932,646
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
8
Taxation
2023
2022
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
375,300
(208,907)
Total tax charge
1,426,244
723,739
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:
2023
2022
£
£
Profit before taxation
6,644,430
5,710,793
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
1,262,442
1,085,051
Tax effect of income not taxable in determining taxable profit
(164,685)
(19,837)
Tax effect of expenses that are not deductible in determining taxable profit
105,160
196,276
Deferred tax movement
375,300
(208,907)
Capital allowances in excess of depreciation
(151,973)
(328,844)
Taxation charge for the year
1,426,244
723,739
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
2,597,500
-
9
Dividends
2023
2022
£
£
Interim paid
1,252,000
2,000
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 20 -
10
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Equipment for Hire
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 March 2022
10,000,000
901,301
9,370,643
29,549
2,882,053
23,183,546
Additions
1,579,700
297,671
407,500
2,284,871
Disposals
(157,623)
(913,827)
(163,977)
(1,235,427)
Revaluation
10,350,000
10,350,000
At 28 February 2023
21,929,700
743,678
8,754,487
29,549
3,125,576
34,582,990
Depreciation and impairment
At 1 March 2022
40,000
649,016
7,544,523
29,549
2,254,422
10,517,510
Depreciation charged in the year
52,656
58,563
144,166
258,062
513,447
Eliminated in respect of disposals
(139,593)
(568,985)
(161,095)
(869,673)
Revaluation
(40,000)
(40,000)
At 28 February 2023
52,656
567,986
7,119,704
29,549
2,351,389
10,121,284
Carrying amount
At 28 February 2023
21,877,044
175,692
1,634,783
774,187
24,461,706
At 28 February 2022
9,960,000
252,285
1,826,120
627,631
12,666,036
Freehold land and buildings with a carrying amount of £20,350,000 (2022 - £9,960,000) were revalued on 3 November 2023 by RES Property Surveyors Limited (an independent firm of chartered surveyors who are not connected with the company) on an open market basis. The valuation was carried out in accordance with the Royal Institute of Chartered Surveyor Valuation Professional Standards (RICS Valuation – Global standards 2017: UK National Supplement).
Freehold land and buildings with a carrying amount of £20,350,000 (2022 - £9,960,000) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
13,796
9,755
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 21 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
597,379
1,214,979
Other debtors
2,974,035
5,787,050
Prepayments and accrued income
672,196
177,542
4,243,610
7,179,571
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
273,106
603,069
Corporation tax
1,050,944
932,646
Other taxation and social security
294,997
445,151
Other creditors
2,465
1,955
Accruals and deferred income
68,468
155,908
1,689,980
2,138,729
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
117,028
158,692
Revaluations
4,366,511
1,352,047
4,483,539
1,510,739
2023
Movements in the year:
£
Liability at 1 March 2022
1,510,739
Charge to profit or loss
584,207
Charge to other comprehensive income
2,597,500
Effect of change in tax rate - profit or loss
(208,907)
Liability at 28 February 2023
4,483,539
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 22 -
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
17,687
17,149
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
17
Related party transactions
The following amounts were due to entities under common control at the balance sheet date:
And the following amounts were due from entities under common control at the reporting end date:
Woburn Fuel Stop £392,685 2022 - £68,400
Domani Developments Limited £6,500 2022 - £1,200
18
Directors' transactions
Dividends totalling £1,252,000 (2022 - £2,000) were paid in the year in respect of shares held by the company's directors.
As at the balance sheet, an amount of £2,023,000 (2022 - £5,096,000) was owed to the company by the director Mr T Traylen.
The loan is unsecured, carries no interest and is repayable on demand.
19
Ultimate controlling party
The ultimate controlling party is Mr T Traylen by virtue of his directorship and shareholding.
20
Analysis of changes in net funds
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
8,699,468
5,418,987
14,118,455
TRAYLEN ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 23 -
21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
5,218,186
4,987,054
Adjustments for:
Taxation charged
1,426,244
723,739
Investment income
(201,575)
(4,363)
Gain on disposal of tangible fixed assets
(866,764)
(104,404)
Depreciation and impairment of tangible fixed assets
513,447
1,013,260
Movements in working capital:
(Increase)/decrease in stocks
(4,040)
2,744
Increase in debtors
(137,039)
(247,755)
Decrease in creditors
(567,048)
(177,501)
Cash generated from operations
5,381,411
6,192,774
2023-02-282022-03-01falseCCH SoftwareCCH Accounts Production 2023.300Mr T Traylen Jnrfalse031633852022-03-012023-02-2803163385bus:Director12022-03-012023-02-2803163385bus:RegisteredOffice2022-03-012023-02-28031633852023-02-28031633852021-03-012022-02-2803163385core:RetainedEarningsAccumulatedLosses2021-03-012022-02-2803163385core:RetainedEarningsAccumulatedLosses2022-03-012023-02-2803163385core:RevaluationReserve2022-03-012023-02-28031633852022-02-2803163385core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-2803163385core:PlantMachinery2023-02-2803163385core:FurnitureFittings2023-02-2803163385core:ComputerEquipment2023-02-2803163385core:MotorVehicles2023-02-2803163385core:LandBuildingscore:OwnedOrFreeholdAssets2022-02-2803163385core:PlantMachinery2022-02-2803163385core:FurnitureFittings2022-02-2803163385core:ComputerEquipment2022-02-2803163385core:MotorVehicles2022-02-2803163385core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-2803163385core:CurrentFinancialInstrumentscore:WithinOneYear2022-02-2803163385core:CurrentFinancialInstruments2023-02-2803163385core:CurrentFinancialInstruments2022-02-2803163385core:ShareCapital2023-02-2803163385core:ShareCapital2022-02-2803163385core:RevaluationReserve2023-02-2803163385core:RevaluationReserve2022-02-2803163385core:RetainedEarningsAccumulatedLosses2023-02-2803163385core:RetainedEarningsAccumulatedLosses2022-02-2803163385core:ShareCapital2021-02-2803163385core:RevaluationReserve2021-02-2803163385core:RetainedEarningsAccumulatedLosses2021-02-28031633852022-02-28031633852021-02-2803163385core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-012023-02-2803163385core:PlantMachinery2022-03-012023-02-2803163385core:FurnitureFittings2022-03-012023-02-2803163385core:ComputerEquipment2022-03-012023-02-2803163385core:MotorVehicles2022-03-012023-02-2803163385core:UKTax2022-03-012023-02-2803163385core:UKTax2021-03-012022-02-280316338512022-03-012023-02-280316338512021-03-012022-02-280316338522022-03-012023-02-280316338522021-03-012022-02-280316338532022-03-012023-02-280316338532021-03-012022-02-2803163385core:LandBuildingscore:OwnedOrFreeholdAssets2022-02-2803163385core:PlantMachinery2022-02-2803163385core:FurnitureFittings2022-02-2803163385core:ComputerEquipment2022-02-2803163385core:MotorVehicles2022-02-2803163385bus:PrivateLimitedCompanyLtd2022-03-012023-02-2803163385bus:FRS1022022-03-012023-02-2803163385bus:Audited2022-03-012023-02-2803163385bus:FullAccounts2022-03-012023-02-28xbrli:purexbrli:sharesiso4217:GBP