Company registration number 02064699 (England and Wales)
REVIS TRANSPORT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022
REVIS TRANSPORT LIMITED
COMPANY INFORMATION
Director
Mr J S Revis
Company number
02064699
Registered office
Southfield Lane
Tockwith
York
YO26 7QP
Auditor
Davies Tracey
Swan House
Westpoint Road
Teesdale Business Park
Stockton on Tees
TS17 6BP
REVIS TRANSPORT LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 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 - 24
REVIS TRANSPORT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2022
- 1 -
The director presents the strategic report for the year ended 31 May 2022.
Fair review of the business
The company has secured several new contracts and maintained the majority of its historical customers.
Despite significant increases in driver costs and fuel costs which have affected the industry as a whole the director has been successful in maintaining margins through a combination of cost efficiencies and passing on the cost increases.
The company has also invested heavily in its vehicle fleet which has resulted in ongoing cost savings. This program resulted in initial cash outlay.
Turnover for the year ended 31 May 2022 was £10,750,367 (2021 - £9,271,334) and the Operating profit for the year ended 31 May 2022 was £1,058,115 (2021 - £548,914).
Principal risks and uncertainties
The principal risks and uncertainties that the company is exposed to are the price of oil (as reflected in fuel prices), the cost of and availability of drivers, the cost of borrowing and the state of the UK economy as a whole. Exposure to interest rates is minimalised by borrowing at fixed rates wherever possible.
Mr J S Revis
Director
13 September 2022
REVIS TRANSPORT LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MAY 2022
- 2 -
The director presents his annual report and financial statements for the year ended 31 May 2022.
Principal activities
The principal activity of the company continued to be that of haulage and transport.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £282,000. 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 J S Revis
Future developments
The director continues to explore opportunities for cost savings and increased efficiency.
Statement of director's responsibilities
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.
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.
REVIS TRANSPORT LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 3 -
On behalf of the board
Mr J S Revis
Director
13 September 2022
REVIS TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF REVIS TRANSPORT LIMITED
- 4 -
Opinion
We have audited the financial statements of Revis Transport Limited (the 'company') for the year ended 31 May 2022 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 31 May 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.
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.
REVIS TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF REVIS TRANSPORT 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is the extent to which an audit conducted under ISAs (UK) is capable of detecting irregularity, including fraud. Our procedures include:
obtaining an understanding of the legal and regulatory frameworks applicable to the company, such as the Companies Act 2006;
obtaining an understanding of how the company complies with the applicable legal and regulatory frameworks;
assessing the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, with audit procedures including reviewing internal controls, testing supporting documentation, enquiring of company management and obtaining written confirmation.
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. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
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.
REVIS TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF REVIS TRANSPORT LIMITED
- 6 -
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.
Craig McBride (Senior Statutory Auditor)
for and on behalf of Davies Tracey
Chartered Accountants and Statutory Auditors
Swan House
Westpoint Road
Teesdale Business Park
Stockton on Tees
TS17 6BP
13 September 2022
REVIS TRANSPORT LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2022
- 7 -
2022
2021
Notes
£
£
Turnover
10,750,367
9,271,334
Cost of sales
(9,610,259)
(8,244,289)
Gross profit
1,140,108
1,027,045
Administrative expenses
(81,993)
(478,131)
Operating profit
4
1,058,115
548,914
Interest receivable and similar income
6
1,890
-
Interest payable and similar expenses
7
(148,042)
(91,333)
Profit before taxation
911,963
457,581
Tax on profit
8
(204,186)
(127,308)
Profit for the financial year
707,777
330,273
REVIS TRANSPORT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2022
- 8 -
2022
2021
£
£
Profit for the year
707,777
330,273
Other comprehensive income
-
-
Total comprehensive income for the year
707,777
330,273
REVIS TRANSPORT LIMITED
BALANCE SHEET
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
5,344,730
4,788,837
Current assets
Stocks
13
10,107
48,992
Debtors
14
1,681,779
1,413,032
Cash at bank and in hand
104,936
261,024
1,796,822
1,723,048
Creditors: amounts falling due within one year
15
(2,279,023)
(2,073,703)
Net current liabilities
(482,201)
(350,655)
Total assets less current liabilities
4,862,529
4,438,182
Creditors: amounts falling due after more than one year
16
(2,754,494)
(2,960,110)
Provisions for liabilities
Deferred tax liability
19
351,326
147,140
(351,326)
(147,140)
Net assets
1,756,709
1,330,932
Capital and reserves
Called up share capital
21
100,000
100,000
Profit and loss reserves
1,656,709
1,230,932
Total equity
1,756,709
1,330,932
The financial statements were approved and signed by the director and authorised for issue on 13 September 2022
Mr J S Revis
Director
Company Registration No. 02064699
REVIS TRANSPORT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2020
100,000
900,659
1,000,659
Year ended 31 May 2021:
Profit and total comprehensive income for the year
-
330,273
330,273
Balance at 31 May 2021
100,000
1,230,932
1,330,932
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
707,777
707,777
Dividends
9
-
(282,000)
(282,000)
Balance at 31 May 2022
100,000
1,656,709
1,756,709
REVIS TRANSPORT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2022
- 11 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,206,955
881,139
Interest paid
(148,042)
(91,333)
Net cash inflow from operating activities
1,058,913
789,806
Investing activities
Purchase of tangible fixed assets
(156,175)
(51,875)
Proceeds from disposal of tangible fixed assets
353,000
49,851
Net cash generated from/(used in) investing activities
196,825
(2,024)
Financing activities
Net amount paid to parent company
(178,116)
(377,049)
Proceeds from new bank loans
1,150,000
Repayment of bank loans
(208,887)
(1,079,374)
Payment of finance leases obligations
(1,024,823)
(441,209)
Net cash used in financing activities
(1,411,826)
(747,632)
Net (decrease)/increase in cash and cash equivalents
(156,088)
40,150
Cash and cash equivalents at beginning of year
261,024
220,874
Cash and cash equivalents at end of year
104,936
261,024
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022
- 12 -
1
Accounting policies
Company information
Revis Transport Limited is a private company limited by shares incorporated in England and Wales. The registered office is Southfield Lane, Tockwith, York, YO26 7QP.
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. The principal accounting policies adopted are set out below.
The financial statements contain information about Revis Transport Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as its subsidiary undertaking's inclusion is not material for the purpose of giving a true and fair view.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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, 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.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
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.
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 13 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line on cost of buildings
Plant and machinery
25% on reducing balance
Computer equipment
33% and 20% straight line as appropriate
Motor vehicles
25% reducing balance and 25% or 20% straight line as appropriate
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.
1.6
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.
1.7
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.
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.
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 14 -
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.
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
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 15 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 16 -
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Management and administration
7
8
Drivers and workshop staff
65
60
Total
72
68
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
3,247,893
2,706,427
Social security costs
283,687
237,435
Pension costs
44,000
3,575,580
2,943,862
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(50,577)
Fees payable to the company's auditor for the audit of the company's financial statements
5,840
5,450
Depreciation of owned tangible fixed assets
103,416
85,452
Depreciation of tangible fixed assets held under finance leases
551,193
281,620
Profit on disposal of tangible fixed assets
(289,614)
(45,000)
Amortisation of intangible assets
43,780
Impairment of intangible assets
131,337
Operating lease charges
832,701
1,155,114
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 17 -
5
Director's remuneration
2022
2021
£
£
Remuneration for qualifying services
12,570
31,411
Company pension contributions to defined contribution schemes
44,000
56,570
31,411
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2021 - 0).
6
Interest receivable and similar income
2022
2021
£
£
Interest income
Other interest income
1,890
7
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
31,019
33,329
Other finance costs:
Interest on finance leases and hire purchase contracts
99,461
42,748
Other interest
17,562
15,256
148,042
91,333
8
Taxation
2022
2021
£
£
Deferred tax
Origination and reversal of timing differences
204,186
127,308
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
8
Taxation
(Continued)
- 18 -
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:
2022
2021
£
£
Profit before taxation
911,963
457,581
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
173,273
86,940
Tax effect of expenses that are not deductible in determining taxable profit
14,553
40,368
Gains not taxable
(10,518)
Adjustments in respect of prior years
(155)
Effect of change in corporation tax rate
84,318
Permanent capital allowances in excess of depreciation
(57,285)
Taxation charge for the year
204,186
127,308
Deferred tax is provided at 25%, the UK corporation tax rate which is effective from April 2023.
9
Dividends
2022
2021
£
£
Interim paid
282,000
10
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2021 and 31 May 2022
437,795
Amortisation and impairment
At 1 June 2021 and 31 May 2022
437,795
Carrying amount
At 31 May 2022
At 31 May 2021
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 19 -
11
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2021
2,120,259
142,158
44,321
3,863,790
6,170,528
Additions
169,217
24,513
1,080,158
1,273,888
Disposals
(36,720)
(169,263)
(205,983)
At 31 May 2022
2,252,756
142,158
68,834
4,774,685
7,238,433
Depreciation and impairment
At 1 June 2021
365,750
122,710
33,717
859,514
1,381,691
Depreciation charged in the year
42,687
4,862
3,780
603,280
654,609
Eliminated in respect of disposals
(6,115)
(136,482)
(142,597)
At 31 May 2022
402,322
127,572
37,497
1,326,312
1,893,703
Carrying amount
At 31 May 2022
1,850,434
14,586
31,337
3,448,373
5,344,730
At 31 May 2021
1,754,509
19,448
10,604
3,004,276
4,788,837
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2022
2021
£
£
Motor vehicles
3,259,295
2,881,316
12
Subsidiaries
Details of the company's subsidiaries at 31 May 2022 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
A.B.C. (Grimsby) Limited
Lancaster Approach, North Killingholme, Immingham, South Humberside DN40 3JZ
Dormant
Ordinary
100.00
13
Stocks
2022
2021
£
£
Raw materials and consumables
10,107
48,992
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 20 -
14
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,250,005
1,060,134
Amounts owed by group undertakings
7,922
10,000
Other debtors
44,927
Prepayments and accrued income
423,852
297,971
1,681,779
1,413,032
15
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
17
99,153
162,046
Obligations under finance leases
18
914,652
762,140
Trade creditors
719,121
695,849
Amounts owed to group undertakings
76,332
Taxation and social security
120,893
240,926
Other creditors
425,204
136,410
2,279,023
2,073,703
Other creditors includes £270,112 relating to funding secured against the assets of the company.
16
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
17
841,960
987,954
Obligations under finance leases
18
1,912,534
1,972,156
2,754,494
2,960,110
17
Loans and overdrafts
2022
2021
£
£
Bank loans
941,113
1,150,000
Payable within one year
99,153
162,046
Payable after one year
841,960
987,954
Bank loans amounting to £897,954 are secured by way of a debenture over the assets of the company (2021 : £1,150,000).
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
17
Loans and overdrafts
(Continued)
- 21 -
Bank loans, which accrue interest at 2.5% per annum (fixed rate) and 3.0% above bank base rate per annum are repayable by August 2026 and June 2025 respectively.
18
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases or hire purchase contracts:
£
£
Within one year
1,017,552
860,252
In two to five years
2,007,600
2,081,401
3,025,152
2,941,653
Less: future finance charges
(197,966)
(207,357)
2,827,186
2,734,296
Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
555,972
266,244
Tax losses
(203,479)
(117,232)
Other timing differences
(1,167)
(1,872)
351,326
147,140
2022
Movements in the year:
£
Liability at 1 June 2021
147,140
Charge to profit or loss
204,186
Liability at 31 May 2022
351,326
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 22 -
20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
44,000
-
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.
21
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
545,822
698,745
Between two and five years
676,193
1,171,955
1,222,015
1,870,700
23
Capital commitments
Amounts contracted for but not provided in the financial statements:
2022
2021
£
£
Acquisition of tangible fixed assets
777,812
-
24
Related party transactions
2022
2021
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
76,332
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
24
Related party transactions
(Continued)
- 23 -
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
7,922
10,000
Other information
J H Revis (the father of J S Revis) and the company jointly own freehold property from which the company operates. The company financial statements include approximately £1,000,000 in relation to this property, being the half share attributed to the company.
During the year the company paid a dividend of £282,000 (2021 - £Nil) to Revis Holdings Limited.
25
Ultimate controlling party
The company's parent company is Revis Holdings Limited and its ultimate controlling party is J S Revis.
26
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
707,777
330,273
Adjustments for:
Taxation charged
204,186
127,308
Finance costs
148,042
91,333
Investment income
(1,890)
Gain on disposal of tangible fixed assets
(289,614)
(45,000)
Amortisation and impairment of intangible assets
175,117
Depreciation and impairment of tangible fixed assets
654,609
367,072
Movements in working capital:
Decrease/(increase) in stocks
38,885
(10,132)
Increase in debtors
(268,747)
(128,810)
Increase/(decrease) in creditors
13,707
(26,022)
Cash generated from operations
1,206,955
881,139
REVIS TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 24 -
27
Analysis of changes in net debt
1 June 2021
Cash flows
New finance leases
31 May 2022
£
£
£
£
Cash at bank and in hand
261,024
(156,088)
-
104,936
Borrowings excluding overdrafts
(1,150,000)
208,887
-
(941,113)
Obligations under finance leases
(2,734,296)
1,024,823
(1,117,713)
(2,827,186)
(3,623,272)
1,077,622
(1,117,713)
(3,663,363)
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