Company Registration No. 02516107 (England and Wales)
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
COMPANY INFORMATION
Directors
K Delaney
A Plikat
D J Williams
Company number
02516107
Registered office
Vulcan Way
Magna Park
Lutterworth
Leicester
United Kingdom
LE17 4XR
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
Bankers
Barclays
1-3 Haymarket Towers
Leicester
United Kingdom
LE1 1WA
Solicitors
Freeths
1 Colton Street
Leicester
United Kingdom
LE1 1QH
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Balance sheet
10
Notes to the financial statements
11 - 23
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Principle activities
The company's principle activity is unchanged since last year and is that of providing warehousing and logistical solutions for the retail industry in the UK.
Principal risks and uncertainties
Turnover increased by 27.5% to £28.7million (2020: £22.5 million) and profit before taxation increased by 20.5% to £2.3million (2020: £1.9 million). This increase is attributable to sales growth from existing customers and new business won during the year. To support this growth, an additional leased facility was added to our current portfolio of sites. The prior year’s figures were significantly affected by the Covid-19 pandemic; however, during 2021 revenue was not materially impacted.
Future Developments
The company has a robust future growth plan and to support this will continue to invest in IT infrastructure to allow further streamlining of business processes whilst also enhancing the quality and breadth of services offered to its customers. This plan will also address current capacity constraints faced by the business.
Principal risks and uncertainties
The company may be affected by a number of risks and uncertainties, some of which are beyond its control. The principal risks facing the company are described below:
Competition and Market
Competitive pressure within the third party logistics market along with economic uncertainty within the retail supply chain is an ongoing risk for the company. These factors could result in the loss of sales to other service providers and with retail customers strategically closing their store footprint; this could also negatively impact business volumes. The company manages that risk by shifting its new business sales focus towards e-commerce and online services whilst also consistently achieving key performance indicators and maintaining strong relationships with customers.
Credit Risk
The company’s principal financial assets are cash and trade debtors. In order to manage credit risk the company has strong credit policies in place that require appropriate credit checks on potential customers and continual monitoring of existing customers to reduce exposure. The company also performs credit checks on key suppliers.
Liquidity Risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Covid-19
Covid-19 remains a risk for the company due to the uncertainty of additional measures that will be taken by the Government that may impact the business. Management continue to monitor the situation and regular forecast are produced to simulate business outcomes based on numerous scenarios.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Key performance indicators
Rhenus manages its operations based upon the analysis of each individual service type at gross margin level in addition to comparing actual performance against budgets and forecast. Comparisons between current year and prior year and against budget are made on a monthly basis with management focusing on any significant adverse deviations and where possible taking corrective action to address this.
The company also uses non-financial performance indicators namely timeliness, accuracy and handling efficiencies to monitor the performance of key customer accounts.
K Delaney
Director
9 August 2022
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £1,500,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
K Delaney
R Kennerley
(Resigned 30 September 2021)
A Plikat
D J Williams
(Appointed 30 September 2021)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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 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.
On behalf of the board
K Delaney
Director
9 August 2022
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
- 5 -
Opinion
We have audited the financial statements of Rhenus Warehousing Solutions Lutterworth Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of income and retained earnings, the balance sheet 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 FRS 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 December 2021 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
- 6 -
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report 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 and the directors' report.
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
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.
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.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
- 8 -
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 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.
Graham Rigby (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
9 August 2022
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
2021
2020
Notes
£
£
Turnover
3
28,694,720
22,497,017
Cost of sales
(14,743,773)
(10,503,320)
Gross profit
13,950,947
11,993,697
Administrative expenses
(11,728,908)
(10,276,120)
Other operating income
73,008
199,513
Operating profit
4
2,295,047
1,917,090
Interest receivable and similar income
20,636
16,104
Interest payable and similar expenses
(17,422)
(26,274)
Profit before taxation
2,298,261
1,906,920
Tax on profit
7
(471,750)
(476,225)
Profit for the financial year
1,826,511
1,430,695
Retained earnings brought forward
6,920,840
6,790,145
Dividends
8
(1,500,000)
(1,300,000)
Retained earnings carried forward
7,247,351
6,920,840
The profit and loss account has been prepared on the basis that all operations are continuing operations.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 10 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
9
5,306,557
4,980,664
Current assets
Stocks
10
76,452
34,052
Debtors falling due after more than one year
11
1,729,231
1,729,231
Debtors falling due within one year
11
10,059,730
7,954,155
Cash at bank and in hand
726,273
1,980,682
12,591,686
11,698,120
Creditors: amounts falling due within one year
12
(5,505,568)
(6,003,042)
Net current assets
7,086,118
5,695,078
Total assets less current liabilities
12,392,675
10,675,742
Creditors: amounts falling due after more than one year
13
(44,878)
(74,818)
Provisions for liabilities
Provisions
14
4,829,216
3,437,000
Deferred tax liability
15
221,230
193,084
(5,050,446)
(3,630,084)
Net assets
7,297,351
6,970,840
Capital and reserves
Called up share capital
17
50,000
50,000
Profit and loss reserves
7,247,351
6,920,840
Total equity
7,297,351
6,970,840
The financial statements were approved by the board of directors and authorised for issue on 9 August 2022 and are signed on its behalf by:
K Delaney
Director
Company Registration No. 02516107
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
1
Accounting policies
Company information
Rhenus Warehousing Solutions Lutterworth Limited is a private company limited by shares incorporated in England and Wales. The registered office is Vulcan Way, Magna Park, Lutterworth, Leicester, United Kingdom, LE17 4XR.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Rhenus Warehousing Solutions UK Limited. These consolidated financial statements are available from its registered office, Liverpool Road, Eccles, Manchester M30 7RF.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover comprises revenue recognised by the company in respect of storage, handling and freight services supplied by during the year, exclusive of value added tax and trade discounts. Turnover is recognised in line with services provided.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -
1.4
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.
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:
Leasehold land and buildings
Over the period of the lease
Plant and equipment
6.7% - 30% straight line
Fixtures and fittings
20% - 33% straight line
Motor vehicles
25% straight line
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.
1.5
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
1.6
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. Financial assets classified as receivable within one year are not amortised.
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.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
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.
1.7
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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.
1.9
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
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 of the risks and rewards of ownership of the lease. 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 account 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 lease asset are consumed
1.13
Government grants
Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure. Government grants represent amounts claimed under the Coronavirus Job Retention Scheme.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
Key sources of estimation uncertainty
Provision for doubtful debts
The directors have reviewed trading balances owing to the company from its customers and made adequate provision for any debts where it is considered probable that the amount will not be recovered. The amounts would otherwise have been recognised in trade debtors.
Dilapidation provision
The company recognises dilapidations provisions on the leasehold properties it occupies. The directors assess the level of provision required on a property by property basis based on past experience within the property portfolio along with professional advice from qualified surveyors where appropriate. These provisions are reviewed annually to ensure that they reflect the current best estimate of the provision required.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 16 -
3
Turnover and other revenue
The whole of the turnover of the company for the year has been derived from its principle activity, wholly undertaken in the United Kingdom.
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
26,250
21,850
Depreciation of owned tangible fixed assets
1,322,220
973,722
Goverment grants
(18,298)
(169,573)
Foreign exchange loss
25,722
Operating lease charges
2,979,584
2,374,771
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Office and management
86
76
Warehouse staff
235
208
Total
321
284
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
8,578,485
7,383,740
Social security costs
770,761
652,099
Pension costs
206,042
183,219
9,555,288
8,219,058
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
220,064
157,387
Company pension contributions to defined contribution schemes
10,963
10,062
231,027
167,449
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2020 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
220,064
157,387
Company pension contributions to defined contribution schemes
10,963
10,062
7
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
447,544
367,572
Adjustments in respect of prior periods
(3,940)
(51,387)
Total current tax
443,604
316,185
Deferred tax
Origination and reversal of timing differences
28,018
43,041
Adjustment in respect of prior periods
128
116,999
Total deferred tax
28,146
160,040
Total tax charge
471,750
476,225
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
7
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:
2021
2020
£
£
Profit before taxation
2,298,261
1,906,920
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
436,670
362,315
Tax effect of expenses that are not deductible in determining taxable profit
6,931
4,962
Tax effect of income not taxable in determining taxable profit
(5,689)
(5,689)
Adjustments in respect of prior years
(3,940)
(51,387)
Depreciation on assets not qualifying for tax allowances
366
31,373
Deferred tax adjustments in respect of prior years
128
116,999
Difference in tax rates
53,091
17,652
Super deductions allowance
(15,807)
Taxation charge for the year
471,750
476,225
8
Dividends
2021
2020
£
£
Final paid
1,500,000
1,300,000
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
9
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2021
9,463,978
1,312,053
545,136
426,353
11,747,520
Additions
1,588,324
28,439
43,768
1,660,531
Disposals
(178,480)
(178,480)
At 31 December 2021
11,052,302
1,340,492
588,904
247,873
13,229,571
Depreciation and impairment
At 1 January 2021
4,888,123
1,049,326
526,562
302,845
6,766,856
Depreciation charged in the year
1,144,095
101,931
18,522
57,672
1,322,220
Eliminated in respect of disposals
(166,062)
(166,062)
At 31 December 2021
6,032,218
1,151,257
545,084
194,455
7,923,014
Carrying amount
At 31 December 2021
5,020,084
189,235
43,820
53,418
5,306,557
At 31 December 2020
4,575,855
262,727
18,574
123,508
4,980,664
Additions in the year include £1,392,216 capitalised in respect of future dilapidation costs.
10
Stocks
2021
2020
£
£
Raw materials and consumables
76,452
34,052
11
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
6,332,608
3,243,548
Corporation tax recoverable
816,331
Amounts owed by group undertakings
2,703,067
3,203,067
Prepayments and accrued income
1,024,055
691,209
10,059,730
7,954,155
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
11
Debtors
(Continued)
- 20 -
2021
2020
Amounts falling due after more than one year:
£
£
Other debtors
1,729,231
1,729,231
Total debtors
11,788,961
9,683,386
12
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
2,010,988
1,098,387
Amounts owed to group undertakings
121,980
777,527
Corporation tax
103,019
Other taxation and social security
1,097,347
1,006,408
Other creditors
117,733
44,039
Accruals and deferred income
2,054,501
3,076,681
5,505,568
6,003,042
13
Creditors: amounts falling due after more than one year
2021
2020
£
£
Other creditors
44,878
74,818
14
Provisions for liabilities
2021
2020
£
£
Dilapidation provision
4,829,216
3,437,000
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
14
Provisions for liabilities
(Continued)
- 21 -
Movements on provisions:
Dilapidation provision
£
At 1 January 2021
3,437,000
Additional provisions in the year
1,392,216
At 31 December 2021
4,829,216
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
238,688
193,735
Short term timing differences
(17,458)
(651)
221,230
193,084
2021
Movements in the year:
£
Liability at 1 January 2021
193,084
Charge to profit or loss
28,146
Liability at 31 December 2021
221,230
16
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
206,042
183,219
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. At the balance sheet date an amount of £39,887 (2020: £12,367 ) was outstanding and is included within other creditors.
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
17
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of 10p each
500,000
500,000
50,000
50,000
18
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:
2021
2020
£
£
Within one year
3,684,426
2,686,615
Between two and five years
8,866,342
8,405,212
In over five years
110,215
1,179,172
12,660,983
12,270,999
19
Related party transactions
Balances with related parties
The company has taken advantage of the exemption in Financial Reporting Standard 102 Section 33 "Related party disclosures" and has not disclosed transactions with group and other related parties in the year which have been conducted on standard commercial terms.
The following amounts were due from/(to) the following related parties at the reporting end date:
Amounts owed by
Amounts owed to
related parties
related parties
2021
2020
2021
2020
£
£
£
£
ALS Customs Services Limited
31,673
PSL Freight Limited
114,784
114,784
Remondis Plastics Recycling U.K. Limited
16,380
Rhenus Air & Ocean BV
-
-
Rhenus Assests & Services GmbH & Co. KG
752
Rhenus Beteiligungen International GmbH
145,251
-
Rhenus Home Delivery Limited
7,196
7,196
Rhenus Logistics Limited
1,500,000
2,011,411
-
Rhenus SE & Co
10,352
Rhenus Warehousing Solutions SE & Co
-
14,541
Rhenus Warehousing Solutions UK Limited
1,203,067
1,057,816
-
Secanim Limited
607,494
RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
20
Ultimate controlling party
The company's immediate parent undertaking is Rhenus Warehousing Solutions Holdings Limited, a company registered in England and Wales.
At the current year end the company's parent company was Rhenus Beteiligungen International GmbH and its ultimate parent undertaking was Rethmann SE & Co. KG, a private company controlled by its directors. The results of the company are consolidated into Rethmann SE & Co. KG, a company incorporated in Germany.
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