REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, Report of the Directors and |
|
Financial Statements for the Year Ended 31 October 2020 |
|
for |
|
Tyrefix Plant Tyres (UK) Limited |
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, Report of the Directors and |
|
Financial Statements for the Year Ended 31 October 2020 |
|
for |
|
Tyrefix Plant Tyres (UK) Limited |
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
|
|
|
|
|
Contents of the Financial Statements |
for the Year Ended 31 October 2020 |
|
|
|
|
Page |
|
Company Information | 1 |
|
Strategic Report | 2 |
|
Report of the Directors | 3 |
|
Report of the Independent Auditors | 4 |
|
Statement of Comprehensive Income | 6 |
|
Balance Sheet | 7 |
|
Statement of Changes in Equity | 8 |
|
Cash Flow Statement | 9 |
|
Notes to the Cash Flow Statement | 10 |
|
Notes to the Financial Statements | 11 |
|
Tyrefix Plant Tyres (UK) Limited |
|
Company Information |
for the Year Ended 31 October 2020 |
|
|
|
|
|
|
|
DIRECTORS: |
|
|
|
|
|
|
|
|
SECRETARY: |
|
|
|
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
|
|
|
AUDITORS: |
|
Chartered Accountants |
Statutory Auditor |
4 HRFC Business Centre |
Leicester Road |
Hinckley |
Leicestershire |
LE10 3DR |
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Strategic Report |
for the Year Ended 31 October 2020 |
|
The directors present their strategic report for the year ended 31 October 2020. |
|
REVIEW OF BUSINESS |
COVID-19 had a significant impact on the business during the year, revenue and profit decreased as a result. However, the business responded well to the pandemic, focusing on business continuity, and rebounded strongly in the last final quarter. |
|
Due to the impact of COVID, revenue decreased by 11.8% to £10,278,271 (2019 £11,651,806). Due to the high fixed cost base within the business, pre-tax profit decreased by 41.0% to £865,826 (2019 £1,467,920). |
|
The company reports net assets of £4,161,603 (2019 £3,506,647). |
|
Our Financial Key Performance Indicators for the year, together with the historical trend data, are set out in the table below:- |
|
2020 | 2019 | Definition and analysis |
|
Increase/(Decrease) in
sales (%) |
(11.8) | 7.7 |
Year on year sales movement expressed as a percentage. We
expect sales to decrease during the year due to the impact of COVID, results were in line with expectations. |
|
Gross profit margin (%) | 40.1 | 44.1 |
Gross profit expressed as a percentage of sales. We expect Gross
Margin to decrease compared to prior year as fitters worked at significantly below capacity during COVID. |
|
Net profit margin (%) | 8.4 | 12.6 |
Profit on ordinary activities before taxation expressed as a
percentage of sales. We expect Net Margin to decrease to a greater extent than Gross margin as we have a high fixed cost base meaning we aren't able to flex overheads in line with revenue. |
|
PRINCIPAL RISKS AND UNCERTAINTIES |
There are several risks impacting the construction industry as a whole and Tyrefix as a result, these include: |
|
Foreign Exchange Rates - GBP to Euro exchange rates have fluctuated throughout the year and have a significant impact on cost of sales . To limit the impact of FX fluctuations we purchase Euros on a quarterly basis. |
|
Availability of Stock - COVID-19 has resulted in increased lead times for importing tyres into the UK as suppliers have significantly decreas ed output and shipping has been delayed. The management team have increased stock levels to ensure we can continu e to operate. |
|
Exposure to Bad Debts - Key customers are offered extended payment terms and we have exposure to potential bad debts as a result. To manage the risk, we perform credit checks on clients at regular intervals and have a credit control function to ensure cu stomers settle invoices within payment terms. |
|
COVID-19 - The economy as a whole including construction was severely impacted by the first COVID-19 lockdown but has subse quently rebounded strongly. There is a small risk that further lockdowns could be required to limit new variants. Were this to happen the company would utilise its business continuity policies to ensure we can continue to operate. |
|
POST BALANCE SHEET EVENTS |
In November 2021, the majority shareholding of the Tyrefix Group was acquired by Literacy Capital PLC with Tom Gover and Tony Buffin joining the company as Directors and Adrian and Diane Johnson retiring. Oliver Johnson has moved from Operations Director to Managing Director. |
|
The acquisition by Literacy Capital provides additional financial security ensuring the company has the capital required to invest in the future. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Report of the Directors |
for the Year Ended 31 October 2020 |
|
The directors present their report with the financial statements of the company for the year ended 31 October 2020. |
|
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of plant tyre repair and replacement service. |
|
DIVIDENDS |
Interim dividends totalling £22,100 per share were paid during the year. The directors recommend that no final dividend be paid. |
|
The total distribution of dividends for the year ended 31 October 2020 will be £44,200. |
|
DIRECTORS |
|
|
Other changes in directors holding office are as follows: |
|
|
|
|
|
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
|
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
|
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
|
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
|
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
|
AUDITORS |
The auditors, Gopsall Audit Services Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
Report of the Independent Auditors to the Members of |
Tyrefix Plant Tyres (UK) Limited |
|
Opinion |
We have audited the financial statements of Tyrefix Plant Tyres (UK) Limited (the 'company') for the year ended 31 October 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
|
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 October 2020 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
|
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
|
Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
|
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
|
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
|
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
|
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
|
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
|
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Tyrefix Plant Tyres (UK) Limited |
|
|
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
|
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
|
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
|
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
|
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
|
|
|
|
|
for and on behalf of
|
Chartered Accountants |
Statutory Auditor |
4 HRFC Business Centre |
Leicester Road |
Hinckley |
Leicestershire |
LE10 3DR |
|
|
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Statement of Comprehensive Income |
for the Year Ended 31 October 2020 |
|
31.10.20 | 31.10.19 |
as restated |
Notes | £ | £ | £ | £ |
|
TURNOVER | 5 |
|
|
|
Cost of sales |
|
|
GROSS PROFIT |
|
|
|
Administrative expenses |
|
|
545,440 | 1,474,405 |
|
Other operating income |
|
|
OPERATING PROFIT | 8 |
|
|
|
Income from participating interests |
|
|
Interest receivable and similar income |
|
|
19,243 | 354 |
873,501 | 1,483,006 |
|
Interest payable and similar expenses | 9 |
|
|
PROFIT BEFORE TAXATION |
|
|
|
Tax on profit | 10 |
|
|
PROFIT FOR THE FINANCIAL YEAR |
|
|
|
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
|
Prior year adjustment | 12 | ( |
) |
TOTAL COMPREHENSIVE INCOME SINCE
LAST ANNUAL REPORT |
|
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Balance Sheet |
31 October 2020 |
|
31.10.20 | 31.10.19 | 1.11.18 |
as restated |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
|
|
|
Tangible assets | 14 |
|
|
|
Investments | 15 |
|
|
|
|
|
|
|
CURRENT ASSETS |
Stocks | 16 |
|
|
|
Debtors | 17 |
|
|
2,519,347 |
Cash at bank and in hand |
|
|
|
|
|
4,080,541 |
CREDITORS |
Amounts falling due within one year | 18 | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
|
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
|
|
CREDITORS |
Amounts falling due after more than one
year |
19 |
( |
) |
( |
) |
( |
) |
|
PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) | ( |
) |
NET ASSETS |
|
|
|
|
CAPITAL AND RESERVES |
Called up share capital | 23 |
|
|
|
Retained earnings | 4,161,601 | 3,506,645 | 3,298,121 |
SHAREHOLDERS' FUNDS | 4,161,603 | 3,506,647 | 3,298,123 |
|
The financial statements were approved by the Board of Directors and authorised for issue on
|
|
|
|
|
|
|
|
|
|
|
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Statement of Changes in Equity |
for the Year Ended 31 October 2020 |
|
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
|
Balance at 1 November 2018 |
|
|
|
|
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | 1,232,356 | 1,232,356 |
Balance at 31 October 2019 | 2 | 3,548,561 | 3,548,563 |
Prior year adjustment | - | ( |
) | ( |
) |
As restated |
|
|
|
|
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
|
|
Balance at 31 October 2020 |
|
|
|
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Cash Flow Statement |
for the Year Ended 31 October 2020 |
|
31.10.20 | 31.10.19 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
|
|
Interest paid | ( |
) |
|
Interest element of hire purchase payments
paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
|
|
|
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
|
|
Interest received |
|
|
Dividends received |
|
|
Net cash from investing activities | ( |
) | ( |
) |
|
Cash flows from financing activities |
New intercompany loans in year | - | 749,000 |
Intercompany loan repayments in year | (753,782 | ) | - |
Capital repayments in year |
|
( |
) |
Amount introduced by directors | 21,044 | - |
Amount withdrawn by directors | (226,246 | ) | (24,951 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
|
(Decrease)/increase in cash and cash equivalents | ( |
) |
|
Cash and cash equivalents at beginning
of year |
2 |
|
1,007,423 |
|
Cash and cash equivalents at end of year | 2 | 1,784,283 | 1,805,512 |
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Notes to the Cash Flow Statement |
for the Year Ended 31 October 2020 |
|
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Profit before taxation |
|
|
Depreciation charges |
|
|
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 7,675 | 15,086 |
Finance income | (19,243 | ) | (354 | ) |
1,545,598 | 2,152,033 |
Decrease/(increase) in stocks |
|
( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
|
Increase in trade and other creditors |
|
|
Cash generated from operations |
|
|
|
2. | CASH AND CASH EQUIVALENTS |
|
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
|
Year ended 31 October 2020 |
31.10.20 | 1.11.19 |
£ | £ |
Cash and cash equivalents | 1,784,283 | 1,805,512 |
Year ended 31 October 2019 |
31.10.19 | 1.11.18 |
as restated |
£ | £ |
Cash and cash equivalents | 1,805,512 | 1,007,423 |
|
|
3. | ANALYSIS OF CHANGES IN NET FUNDS |
|
At 1.11.19 | Cash flow | At 31.10.20 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,805,512 | (21,229 | ) | 1,784,283 |
1,805,512 | ( |
) | 1,784,283 |
Debt |
Finance leases | (171,624 | ) | (49,423 | ) | (221,047 | ) |
(171,624 | ) | (49,423 | ) | (221,047 | ) |
Total | 1,633,888 | (70,652 | ) | 1,563,236 |
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Notes to the Financial Statements |
for the Year Ended 31 October 2020 |
|
1. | STATUTORY INFORMATION |
|
Tyrefix Plant Tyres (UK) Limited is a
|
|
The presentation currency of the financial statements is the Pound Sterling (£). |
|
|
2. | STATEMENT OF COMPLIANCE |
|
|
|
|
3. | ACCOUNTING POLICIES |
|
Summary of significant accounting policies |
The principal accounting policies applied in the preparation of these financial statements are set out below. These polices have been consistently applied to all the years presented, unless otherwise stated. |
|
Basis of preparing the financial statements |
These financial statements are prepared on a going concern basis, under the historical cost convention. |
|
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the notes to the accounts. |
|
Going Concern |
The directors assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The directors make this assessment in respect of a period of at least one year from the date of the approval of the financial statements. |
|
Since March 2020 the company has been affected by the COVID-19 pandemic. With the ongoing vaccination program and the country tentatively returning to more normal working arrangements at the time of the approval of these financial statements the directors are hopeful that trading will continue to improve. The directors do, however, note that some inherent uncertainties remain, particularly in respect of national or local periods of restrictions which may affect areas in which the company operates. This uncertainty is mitigated as the company's customers have been able to structure their operations in order for them to continue to operate throughout recent periods of restrictions. |
|
For the purposes of assessing going concern the directors have assumed that the company will continue to be able to provide its services to its customers. Taking this into account, the directors have concluded that there are no material uncertainties about the company's ability to continue as a going concern and they are satisfied that the company has adequate resources to continue to meet its liabilities as they fall due and, therefore, that it remains appropriate to continue to adopt going concern basis of accounting in the preparation of the financial statements. |
|
Related party exemption |
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. |
|
Revenue recognition |
Tyre replacement and repair |
The company recognises revenue upon completion of the tyre replacement or repair. Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and value added taxes. |
|
Goodwill |
Goodwill acquired in earlier periods has been fully amortised prior to 1 November 2017. |
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2020 |
|
3. | ACCOUNTING POLICIES - continued |
|
Tangible fixed assets |
|
Improvements to property | - |
|
Plant and machinery | - |
|
Fixtures and fittings | - |
|
Motor vehicles | - |
|
|
Government grants |
Government grants have been accounted for under the accrual model. The grants, which relate to revenue, are recognised as income in the same period as the expenses for which they compensate. |
|
Investments in associates |
Investments in subsidiaries and associates are held at cost less accumulated impairment losses. |
|
Stocks |
Stocks are stated at the lower of cost and 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 determined using the weighted average cost method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the stock to its present location and condition. |
|
At the end of each reporting period inventories are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. 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 profit and loss account. |
|
Financial instruments |
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument. |
|
Cash and cash equivalents |
These comprise cash at bank and other short-term highly liquid bank deposits with an original maturity of three months or less. |
|
Debtors |
Debtors do not carry any interest and are stated at their nominal value. Appropriate allowances for |
estimated irrecoverable amounts are recognised in the Profit and Loss account when there is objective evidence that the asset is impaired. |
|
Trade creditors |
Trade creditors are not interest bearing and are stated at their nominal value. |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
|
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2020 |
|
3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
|
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
|
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
|
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
|
Pension costs and other post-retirement benefits |
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in Other creditors in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. |
|
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2020 |
|
4. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
|
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
|
(i) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount of tangible fixed assets is £1,704,904 (2019 £1,842,496) and is disclosed in note 14 to these financial statements. |
|
(ii) Impairment of debtors |
The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. The carrying amount of Trade and Other debtors is disclosed in note 17 to these financial statements. |
|
(iii) Provisions |
Provision is made for asset retirement obligations, dilapidations and contingencies. These provisions require management's best estimate of the costs that will be incurred based on legislative and contractual requirements. In addition, the timing of the cash flows and the discount rates used to establish net present value of the obligations require management's judgement. The net carrying value of provisions is disclosed in note 22 to these financial statements. |
|
(iv) Stock |
Stock is stated at the lower of net realisable value and cost. Net realisable value is based on estimated selling price in the ordinary course of business, less any further costs expected to be incurred to completion and disposal. At the end of each reporting period inventories are assessed for impairment and an impairment charge is recognised in the profit and loss account. The net carrying value of stocks is £636,400 (2019 £814,412). |
|
5. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
6. | EMPLOYEES AND DIRECTORS |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
31.10.20 | 31.10.19 |
as restated |
|
Directors | 3 | 3 |
Administrative | 15 | 14 |
Fitters | 87 | 86 |
|
|
|
7. | DIRECTORS' EMOLUMENTS |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
Compensation to director for loss of office |
|
|
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2020 |
|
7. | DIRECTORS' EMOLUMENTS - continued |
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
The key management personnel of the company are the directors. |
|
8. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Hire of plant and machinery |
|
|
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
|
|
Other non- audit services |
|
|
|
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Other interest |
|
|
Hire purchase |
|
|
|
|
|
10. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2020 |
|
10. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2019 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Income not taxable for tax purposes | ( |
) |
|
Adjustments to tax charge in respect of previous periods |
|
( |
) |
Total tax charge | 166,670 | 277,480 |
|
11. | DIVIDENDS |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Ordinary shares of 1 each |
Interim |
|
|
|
12. | PRIOR YEAR ADJUSTMENT |
|
A prior year adjustment has been made to correct an understatement in accrued expenses. The impact of this adjustment is a debit to opening reserves at 1 November 2018 of £41,916, a credit to accrued expenses at 31 October 2019 by £51,748 and a debit in corporation tax liability at 31 October 2019 by £9,832 |
|
13. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 November 2019 |
and 31 October 2020 |
|
AMORTISATION |
At 1 November 2019 |
and 31 October 2020 |
|
NET BOOK VALUE |
At 31 October 2020 |
|
At 31 October 2019 |
|
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2020 |
|
14. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 November 2019 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
|
( |
) |
|
( |
) | ( |
) |
At 31 October 2020 |
|
|
|
|
|
DEPRECIATION |
At 1 November 2019 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal |
|
( |
) |
|
( |
) | ( |
) |
At 31 October 2020 |
|
|
|
|
|
NET BOOK VALUE |
At 31 October 2020 |
|
|
|
|
|
At 31 October 2019 |
|
|
|
|
|
|
The net book value of tangible fixed assets includes £264,244 (2019 £197,322) in respect of assets held under hire purchase contracts. |
|
15. | FIXED ASSET INVESTMENTS |
Interest |
in |
associate |
£ |
COST |
At 1 November 2019 |
and 31 October 2020 |
|
NET BOOK VALUE |
At 31 October 2020 |
|
At 31 October 2019 |
|
|
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
Associated companies |
|
|
Registered office: Unit 3 Hill Lane Close, Markfield, Leicester, Leicestershire, LE67 9PY |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
£ | £ |
Aggregate capital and reserves |
|
|
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2020 |
|
15. | FIXED ASSET INVESTMENTS - continued |
|
|
Registered office: Unit 3 Hill Lane Close, Markfield, Leicester, Leicestershire, LE67 9PY |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
£ | £ |
Aggregate capital and reserves |
|
|
|
16. | STOCKS |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Stocks |
|
|
|
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Directors' current accounts | 225,775 | 21,044 |
Prepayments |
|
|
|
|
|
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Hire purchase contracts (see note 20) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
VAT | 239,401 | 260,265 |
Other creditors |
|
|
Directors' current accounts | - | 471 |
Accrued expenses |
|
|
|
|
|
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Hire purchase contracts (see note 20) |
|
|
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2020 |
|
20. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable operating | leases |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
21. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Hire purchase contracts | 221,047 | 171,624 |
|
Hire purchase loans are secured against the asset to which they relate. |
|
22. | PROVISIONS FOR LIABILITIES |
31.10.20 | 31.10.19 |
as restated |
£ | £ |
Deferred tax | 147,656 | 122,374 |
|
Deferred |
tax |
£ |
Balance at 1 November 2019 |
|
Provided during year |
|
Balance at 31 October 2020 |
|
|
23. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.10.20 | 31.10.19 |
value: | as restated |
£ | £ |
|
Ordinary | 1 | 2 | 2 |
Tyrefix Plant Tyres (UK) Limited (Registered number: 04075419) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2020 |
|
24. | PENSION COMMITMENTS |
|
The company operates a defined contribution pension scheme. The charge for the year of pension contributions payable by the company amounted to £66,480 (2019 £51,832). |
|
At the balance sheet date the amount owed to the scheme was £8,599 (2019 £9,510) and is included within other creditors. |
|
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
Included in debtors at 31 October 2020 is an amount owed by Mr A R Johnson to the company of £119,571 (2019 £11,127). |
|
Included in debtors at 31 October 2020 is an amount owed by Mrs D Johnson to the company of £106,203 (2019 £9,917). |
|
Interest is charged on overdrawn directors loan accounts at HMRC official rate. |
|
26. | RELATED PARTY DISCLOSURES |
|
The company has paid rent of £29,923 (2019 £24,948) into the pension trust of a director. |
|
The company has entered into the following transactions with a partnership under common control: |
- The company has paid rent of £79,250 (2019 £63,400) to the partnership. |
- During the year the company sold items of plant and machinery to the partnership for sales proceeds of £700 (2019 £500). At the date of disposal the Net Book Value of the plant and machinery was £700 (2019 £500). |
- At the balance sheet date the company was owed £61,774 (2019 £49,689) from the partnership. This balance is presented within trade debtors £37,406 (2019 £40,442) and within other debtors £24,368 (2019 £9,247). |
|
27. | ULTIMATE CONTROLLING PARTY |
|
The immediate parent undertaking is Tyrefix Holdings Limited. |
|
The smallest and largest group to consolidate these financial statements is Tyrefix Holdings Limited. Copies of Tyrefix Holdings Limited consolidated financial statements can be obtained from its registered office at Unit 3 Hill Lane Close, Markfield, Leicester, Leicestershire, LE67 9PY. |
|
The ultimate holding company is Literacy Capital plc (Company Number 10976145). Literacy Capital plc does not have an ultimate controlling party. |
|
28. | GOVERNMENT GRANTS |
|
Government grants are recognised as income in Other operating income of £299,683 (2019 - £nil) and relate to claims made under the Coronavirus Job Retention Scheme. |