Hire Safe Solutions Limited - Limited company accounts 22.3

REGISTERED NUMBER: 08627741 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 July 2022

for

Hire Safe Solutions Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Income and Retained Earnings

10

Balance Sheet

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

G Jennings

Mrs R Jennings

REGISTERED OFFICE:

Meryll House

57 Worcester Road

Bromsgrove

Worcestershire

B61 7DN

REGISTERED NUMBER:

08627741 (England and Wales)

AUDITORS:

Pinfields Limited

Chartered Accountants

Statutory Auditor

Meryll House

57 Worcester Road

Bromsgrove

Worcestershire

B61 7DN

The directors present their strategic report for the year ended 31 July 2022.

REVIEW OF BUSINESS

The principal activity of Hire Safe Solutions Limited is the rental of specialist powered access equipment and lifting equipment throughout the UK. We provide solutions for hire, sale, repair, maintenance of said equipment for all sectors that require it.

Profit before tax for the year amounted to £4,896,728 (2021: £2,993,616).

The business saw growth throughout 2021-22 in terms of turnover and profit, due to continued strategic investment, costs management and the commitment to operational excellence

PRINCIPAL RISKS AND UNCERTAINTIES

One of the key areas of the Company's business strategies is its ability to identify and effectively manage the risks to its business and operations. The Company's approach, through its Integrated Management Systems, are to identify the key risks and then assess the effectiveness of controls to mitigate the impact and likelihood of these risks occurring. Some principal risks are set out below, together with a summary of the actions taken to mitigate each risk:

Reputation and business conduct

The Company's ability to tender new business is dependent on its relationship with its customers and other stakeholders.

The Company monitors performance through customer feedback and complies with the Bribery Act 2010.

Machine Quality and Service

Machine Quality and Service The Company has and will continue to invest into its machine fleet as well as maintaining the quality of service to its customers.

The company will continue to work with manufacturers within the industry to ensure Hire Safe Solution are maintaining a high standard of service.

The Board and senior management are committed to the management of these risks through the consistent analysis and reporting completed throughout the year.

FUTURE DEVELOPMENTS

2022-23 is expected to be a continued improved picture despite uncertainty created within the media with increasing energy prices, cost of living and costs of materials for the construction industry.

FINANCIAL KEY PERFORMANCE INDICATORS

The Directors use key performance indicators (KPI's) to monitor the financial position of the Company as noted below:

2022

2021

£

£

Revenue

18,047,474

12,087,997

Gross profit

16,353,873

10,494,213

Profit (Loss) before tax

4,896,728

2,993,616

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Overview:-

In common with other businesses, the company aims to minimise financial risk. The measures used by the Directors to manage this risk include the preparation of profit/cashflow forecasts and regular monitoring of actual performance against these forecasts.

Credit Risk:-

The companies principal financial assets are fixed assets, cash, trade debtors and stock. The principal credit risk therefore arises from its trade debtors. In order to manage credit risk, the directors set limits for customers based on a combination of payment history, current knowledge and third party credit references. Credit limits are reviewed by the Credit Manager on a regular basis in conjunction with debt ageing and collection history.

ON BEHALF OF THE BOARD:

G Jennings - Director

8 December 2022

The directors present their report with the financial statements of the company for the year ended 31 July 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the rental of specialist powered access equipment and lift equipment throughout the UK. We provide solutions for repair, maintenance, and construction of all sectors within the construction industry.

DIVIDENDS

The total distribution of dividends for the year ended 31 July 2022 will be £241,000 (2021 £94,000).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2021 to the date of this report.

G Jennings

Mrs R Jennings

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Pinfields Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G Jennings - Director

8 December 2022

Opinion

We have audited the financial statements of Hire Safe Solutions Limited (the 'company') for the year ended 31 July 2022 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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 July 2022 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

- Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that have a direct effect on the financial statements;

- Enquiry of management around actual and potential litigation claims;

- Enquiry of management to identify and instances of non-compliance with laws and regulations;

- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness;

- Reviewing accounting estimates for evidence of management bias;

- Reviewing minutes of meetings of those charged with governance and management, where available; and

- Reviewing the bank for evidence of large and other unusual payments.

Because of 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 regulation. 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Other matters which we are required to address

The comparative figures to 31st July 2021 are unaudited.

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.

P J Tivey FCA FCCA (Senior Statutory Auditor)

for and on behalf of Pinfields Limited

Chartered Accountants

Statutory Auditor

Meryll House

57 Worcester Road

Bromsgrove

Worcestershire

B61 7DN

8 December 2022

TURNOVER

18,047,474

12,087,997

Cost of sales

(1,693,601

)

(1,593,784

)

GROSS PROFIT

16,353,873

10,494,213

Administrative expenses

(9,605,157

)

(6,190,340

)

6,748,716

4,303,873

Other operating income

161,347

133,631

OPERATING PROFIT

4

6,910,063

4,437,504

Interest receivable and similar income

-

21

6,910,063

4,437,525

Interest payable and similar expenses

5

(2,013,335

)

(1,443,909

)

PROFIT BEFORE TAXATION

4,896,728

2,993,616

Tax on profit

6

(1,820,690

)

(436,447

)

PROFIT FOR THE FINANCIAL YEAR

3,076,038

2,557,169

Retained earnings at beginning of year

7,047,765

4,584,596

Dividends

7

(241,000

)

(94,000

)

RETAINED EARNINGS AT END OF YEAR

9,882,803

7,047,765

FIXED ASSETS

Tangible assets

8

57,490,444

38,787,235

CURRENT ASSETS

Stocks

9

171,360

38,019

Debtors

10

5,309,457

4,333,548

Cash at bank

1,888,625

894,188

7,369,442

5,265,755

CREDITORS

Amounts falling due within one year

11

22,696,848

16,949,478

NET CURRENT LIABILITIES

(15,327,406

)

(11,683,723

)

TOTAL ASSETS LESS CURRENT LIABILITIES

42,163,038

27,103,512

CREDITORS

Amounts falling due after more than one year

12

(28,666,317

)

(18,324,869

)

PROVISIONS FOR LIABILITIES

17

(3,613,817

)

(1,730,777

)

NET ASSETS

9,882,904

7,047,866

CAPITAL AND RESERVES

Called up share capital

18

101

101

Retained earnings

19

9,882,803

7,047,765

SHAREHOLDERS' FUNDS

9,882,904

7,047,866

The financial statements were approved by the Board of Directors and authorised for issue on 8 December 2022 and were signed on its behalf by:

G Jennings - Director

Cash flows from operating activities

Cash generated from operations

1

4,172,956

2,078,355

Interest paid

(42,768

)

(47,347

)

Interest element of hire purchase and finance lease rental payments paid

(1,970,567

)

(1,396,562

)

Tax received

62,349

115,994

Net cash from operating activities

2,221,970

750,440

Cash flows from investing activities

Purchase of tangible fixed assets

(90,857

)

(963,503

)

Sale of tangible fixed assets

2,084,215

1,317,400

Interest received

-

21

Net cash from investing activities

1,993,358

353,918

Cash flows from financing activities

New loans in year

-

384,278

Loan repayments in year

(195,944

)

(254,780

)

Capital repayments in year

(3,262,854

)

(2,300,134

)

Amount withdrawn by directors

(95

)

(76

)

Share issue

-

1

Additional invoice finance

478,348

272,143

Equity dividends paid

(241,000

)

(94,000

)

Net cash from financing activities

(3,221,545

)

(1,992,568

)

Increase/(decrease) in cash and cash equivalents

993,783

(888,210

)

Cash and cash equivalents at beginning of year

2

894,188

1,782,398

Cash and cash equivalents at end of year

2

1,887,971

894,188

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2022

2021

£

£

Profit before taxation

4,896,728

2,993,616

Depreciation charges

4,374,632

2,960,286

Profit on disposal of fixed assets

(129,990

)

(53,978

)

Finance costs

2,013,335

1,443,909

Finance income

-

(21

)

11,154,705

7,343,812

Increase in stocks

(133,341

)

(38,019

)

Increase in trade and other debtors

(1,138,413

)

(1,441,337

)

Decrease in trade and other creditors

(5,709,995

)

(3,786,101

)

Cash generated from operations

4,172,956

2,078,355

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 July 2022

31/7/22

1/8/21

£

£

Cash and cash equivalents

1,888,625

894,188

Bank overdrafts

(654

)

-

1,887,971

894,188

Year ended 31 July 2021

31/7/21

1/8/20

£

£

Cash and cash equivalents

894,188

1,782,398

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1/8/21

Cash flow

changes

At 31/7/22

£

£

£

£

Net cash

Cash at bank

894,188

994,437

1,888,625

Bank overdrafts

-

(654

)

(654

)

894,188

993,783

1,887,971

Debt

Hire purchase and

finance leases

(25,696,758

)

3,262,854

(17,983,708

)

(40,417,612

)

Debts falling due

within 1 year

(187,610

)

(9,270

)

-

(196,880

)

Debts falling due

after 1 year

(621,082

)

205,213

-

(415,869

)

(26,505,450

)

3,458,797

(17,983,708

)

(41,030,361

)

Total

(25,611,262

)

4,452,580

(17,983,708

)

(39,142,390

)

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).

The figures in the financial statements are rounded to the nearest £1.

2.	ACCOUNTING POLICIES

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.

Significant judgements and estimates

In the course of preparing the financial statements, no judgements have been made in the process of

applying the Company's accounting policies, other than those involving estimations, that have had a

significant effect on the amounts recognised in the financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

15% on reducing balance

Plant and machinery

-

8% on cost

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Government grants

Government grants relating to revenue are recognised when it is reasonable to expect that the grants

will be received and that all related conditions will be met, usually on submission of a valid claim for

payment.

Grants relating to fixed assets are recognised in the income statement on a systematic basis over the

expected useful life of the assets.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes party to the

contractual provisions of the instrument.

All financial assets and liabilities are initially measured at transactions price, except for those

financial assets classified as at fair value through profit and loss. which are initially measured at fair

value. If an arrangement constitutes a financing transaction, the financial asset or liability is

measured at the present value of the future payments discounted at a market rate of interest for a

similar debt instrument.

Debt instruments that have no stated interest rate and are classified as payable or receivable within

one year are initially measured at an undiscounted amount of the cash or other consideration expected

to be paid or received, net of impairment.

Financial assets are only derecognised when the contractual rights to the cash flows from the financial

asset expire or are settled, when the company transfers to another party substantially all of the risks

and rewards of ownership of the financial asset, or when the company has transferred control of the

asset to another party.

Financial liabilities are only derecognised when the obligation is discharged, cancelled or expired.

Taxation

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

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

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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

3.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

2,309,401

1,393,687

Social security costs

266,449

156,996

Other pension costs

37,533

24,220

2,613,383

1,574,903

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

2022

2021

Staff

46

32

2022

2021

£

£

Directors' remuneration

18,836

7,097

4.	OPERATING PROFIT

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

2022

2021

£

£

Hire of plant and machinery

738,419

835,461

Depreciation - owned assets

339,089

236,376

Depreciation - assets on hire purchase contracts and finance leases

4,035,544

2,723,910

Profit on disposal of fixed assets

(129,990

)

(53,978

)

Auditors' remuneration

20,000

-

Foreign exchange differences

32,307

(17,262

)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Loan

42,768

47,347

Hire purchase

1,962,971

1,394,943

Leasing

7,596

1,619

2,013,335

1,443,909

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2022

2021

£

£

Current tax:

Prior year tax adjustment

(62,349

)

(120,223

)

Deferred tax

1,883,039

556,670

Tax on profit

1,820,690

436,447

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:

2022

2021

£

£

Profit before tax

4,896,728

2,993,616

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

930,378

568,787

Effects of:

Expenses not deductible for tax purposes

20,771

23,080

Adjustments to tax charge in respect of previous periods

2,642

(120,223

)

Enhanced capital allowances

(417

)

(35,197

)

Deferred taxation provision above the standard rate.

867,316

-

Total tax charge

1,820,690

436,447

Factors that may affect future tax charges

From 1 April 2023 the corporation tax main rate will increase to 25% for profits over £250,000. A small profits rate will also be introduced for profits of £50,000 or less, charging corporation tax at 19%. Profits between £50,000 and £250,000 will be taxed at the main rate reduced by a marginal relief providing a gradual increase in the effective rate of corporation tax rate.

The deferred taxation provision provided in these accounts is at 25% (2021 19%).