Company Registration No. 03609237 (England and Wales)
RHENUS LOGISTICS (CORBY) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
RHENUS LOGISTICS (CORBY) LIMITED
COMPANY INFORMATION
Directors
D J Williams
G Dodsworth
G Hollington
Company number
03609237
Registered office
Liverpool Road
Eccles
Manchester
Lancashire
United Kingdom
M30 7RF
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
RHENUS LOGISTICS (CORBY) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
RHENUS LOGISTICS (CORBY) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -

The directors present the strategic report for the year ended 31 December 2021.

Fair review of the business

The company has experienced an increase in reported turnover of 8% following a period of relatively stable turnover between 2019 and 2020.  The increased turnover has been primarily driven by strong demand for UK warehousing and storage services following the Brexit customs formalities changes and the related uncertainties they generated.  Gross margins have remained broadly consistent and have been maintained by focusing on meeting key customer requirements throughout what continues to be a challenging period for both the UK and wider economy.  The business continues to be insulated from these impacts in terms of turnover volatility by the nature of the longer term customer contracts it typically operates with. In order to support the increased turnover additional warehousing space was accessed on a short term basis during 2021.

 

Operating profits decreased in 2021 compared to 2020 by 7% (percentage points) against a prior period increase of 32%.  This being due to increased investment in employee costs together with the reduced level of government assistance through the furlough scheme and general inflationary pressure on the operating cost base of the business.  The company continues to monitor its cost base closely and management are focused on identifying process and cost efficiencies in order to maintain its financial performance. 

 

The company retains a strong balance sheet and the directors are satisfied that the business is well positioned to carry out its future strategic and business objectives.

 

There are numerous uncertainties for UK Logistics and Warehousing companies when looking to the future including;  ongoing changes to the UK customs environment, systems & processes; inflationary pressures within the market and wider political uncertainty.  However, the directors continue to monitor and wherever possible put mitigation actions in place to manage risk.  In addition, being part of the Rhenus Group of companies in the UK helps to mitigate many of the perceived risks and uncertainties that the company faced historically as an independent entity.

 

As well as short term trade receivables and trade payables that arise directly from operations, the company’s financial instruments comprise of cash and lease payables. The objectives of holding financial instruments is to raise finance for the company’s operations and manage related risks.  The company’s activities expose the company to a number of risks including interest rate risk, credit risk, liquidity risk and exchange risk.  The company manages these risks by regularly monitoring the business and providing ongoing forecasts of the expected impacts.

 

 

RHENUS LOGISTICS (CORBY) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Principal risks and uncertainties

Interest rate risk

The company's interest rate risk exposure arises mainly from interest-bearing borrowings, including intra-group loans.  Contractual agreements entered into at floating rates expose the entity to cash flow risk, fixed rate borrowings under finance leases expose the entity to fair value risk.  The company regularly reviews its funding arrangements to ensure they are competitive within the market place.

 

Credit risk

The company monitors credit risk closely and considers that its current policies of credit checks meet its objectives of managing exposure to credit risk.

 

Liquidity risk

The company closely monitors its bank balance, intra-group trading and external borrowings and other credit facilities in comparison to its outstanding commitments to ensure it has sufficient funds to meet its obligations as they fall due.  The company's finance function produces regular forecasts that estimate cash inflows and outflows for the next 12 months, so that management can ensure sufficient funding is in place as it is required.  The company's objective is to maintain a balance between the continuity of funding and flexibility.

 

Currency risk

The company closely monitors its exposure to currency risk, the directors currently consider risk in this area to be low.

 

The directors are confident about the business and its performance for the coming year.

 

 

On behalf of the board

G Hollington
Director
9 August 2022
RHENUS LOGISTICS (CORBY) 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.

Principal activities

The principal activity of the company continued to be that of the provision of road haulage and storage.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid (2020: £1,500,000). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D J Williams
R Kennerley
(Resigned 30 September 2021)
G Dodsworth
(Appointed 30 September 2021)
G Hollington
(Appointed 18 March 2022)
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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:

 

 

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.

RHENUS LOGISTICS (CORBY) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
On behalf of the board
G Hollington
Director
9 August 2022
RHENUS LOGISTICS (CORBY) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RHENUS LOGISTICS (CORBY) LIMITED
- 5 -
Opinion

We have audited the financial statements of Rhenus Logistics (Corby) Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of income and retained earnings, the balance sheet, 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 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:

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 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.

Other information

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.

Opinions on other matters prescribed by the Companies Act 2006

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

RHENUS LOGISTICS (CORBY) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS LOGISTICS (CORBY) LIMITED
- 6 -
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:

 

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 LOGISTICS (CORBY) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS LOGISTICS (CORBY) 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:

 

 

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.

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 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 LOGISTICS (CORBY) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
12,381,592
11,444,196
Cost of sales
(3,475,135)
(3,097,448)
Gross profit
8,906,457
8,346,748
Administrative expenses
(8,795,414)
(7,575,020)
Other operating income
17,226
86,731
Operating profit
4
128,269
858,459
Interest receivable and similar income
-
0
13,759
Interest payable and similar expenses
(1,861)
-
0
Profit before taxation
126,408
872,218
Tax on profit
6
38,049
(164,641)
Profit for the financial year
164,457
707,577
Retained earnings brought forward
1,245,274
2,037,697
Dividends
7
-
0
(1,500,000)
Retained earnings carried forward
1,409,731
1,245,274

The profit and loss account has been prepared on the basis that all operations are continuing operations.

RHENUS LOGISTICS (CORBY) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
8
1,325,491
1,081,804
Current assets
Stocks
9
136,463
69,104
Debtors
10
3,444,350
4,341,324
Cash at bank and in hand
250,000
921,522
3,830,813
5,331,950
Creditors: amounts falling due within one year
11
(1,978,600)
(3,869,036)
Net current assets
1,852,213
1,462,914
Total assets less current liabilities
3,177,704
2,544,718
Provisions for liabilities
Provisions
12
1,603,387
1,134,858
(1,603,387)
(1,134,858)
Net assets
1,574,317
1,409,860
Capital and reserves
Called up share capital
15
160,490
160,490
Share premium account
16
4,096
4,096
Profit and loss reserves
1,409,731
1,245,274
Total equity
1,574,317
1,409,860
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:
G Hollington
Director
Company Registration No. 03609237
RHENUS LOGISTICS (CORBY) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
862,508
261,789
Interest paid
(1,861)
-
0
Income taxes refunded/(paid)
26,115
(160,160)
Net cash inflow from operating activities
886,762
101,629
Investing activities
Purchase of tangible fixed assets
(22,965)
(158,660)
Interest received
-
0
13,759
Net cash used in investing activities
(22,965)
(144,901)
Financing activities
Payment of finance leases obligations
(35,319)
(69,105)
Dividends paid
(1,500,000)
-
0
Net cash used in financing activities
(1,535,319)
(69,105)
Net decrease in cash and cash equivalents
(671,522)
(112,377)
Cash and cash equivalents at beginning of year
921,522
1,033,899
Cash and cash equivalents at end of year
250,000
921,522
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
1
Accounting policies
Company information

Rhenus Logistics (Corby) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Liverpool Road, Eccles, Manchester, Lancashire, United Kingdom, M30 7RF.

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.

1.2
Going concern

At 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.true

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.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

 

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 improvements
Over the life of the lease
Plant and machinery
10% - 50% straight line
Fixtures and fittings
10% - 50% straight line
Motor vehicles
25% - 33% straight line
Other fixed assets
10% - 20% straight line
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -

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 stated at the lower of cost and net realisable value, being the estimates selling price less costs to sell. Cost is based on the cost of purchase on a first in first out basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price. 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.

RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
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.

 

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.

1.9
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 LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.10
Employee benefits

The company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

 

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Amounts not yet paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

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.

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.

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.

RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
2
Judgements and key sources of estimation uncertainty
(Continued)
- 15 -
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.

3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Transport sales
6,367,103
6,087,761
Warehousing and storage sales
6,014,489
5,356,435
12,381,592
11,444,196
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
93
222
Government grants
(17,226)
(86,731)
Audit fees
15,000
15,000
Depreciation of owned tangible fixed assets
254,414
254,416
Operating lease charges
1,581,815
1,572,502
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2021
2020
Number
Number
Administration
128
125
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
5
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2021
2020
£
£
Wages and salaries
4,696,920
3,882,214
Social security costs
295,025
273,781
Pension costs
69,626
69,122
5,061,571
4,225,117
6
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
(28,893)
162,938
Deferred tax
Origination and reversal of timing differences
(9,156)
(4,054)
Adjustment in respect of prior periods
-
0
5,757
Total deferred tax
(9,156)
1,703
Total tax (credit)/charge
(38,049)
164,641

The actual (credit)/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
126,408
872,218
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
24,018
165,721
Tax effect of expenses that are not deductible in determining taxable profit
298
232
Effect of change in corporation tax rate
(164)
320
Depreciation on assets not qualifying for tax allowances
24,866
21,594
Under/(over) provided in prior years
-
0
(19,172)
Deferred tax adjustments in respect of prior years
-
0
(4,054)
Super deductions allowance
(1,274)
-
0
Release of provision now specific for tax purposes
(85,793)
-
0
Taxation (credit)/charge for the year
(38,049)
164,641
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
7
Dividends
2021
2020
£
£
Final declared
-
0
1,500,000
8
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures and fittings
Motor vehicles
Other fixed assets
Total
£
£
£
£
£
£
Cost
At 1 January 2021
1,126,384
852,766
346,730
689,499
92,179
3,107,558
Additions
477,003
2,140
11,165
-
0
9,660
499,968
Disposals
-
0
(291,400)
(39,723)
(57,500)
(18,735)
(407,358)
At 31 December 2021
1,603,387
563,506
318,172
631,999
83,104
3,200,168
Depreciation and impairment
At 1 January 2021
369,824
713,629
253,499
630,369
58,433
2,025,754
Depreciation charged in the year
130,032
43,072
28,634
43,473
9,203
254,414
Eliminated in respect of disposals
-
0
(289,533)
(39,723)
(57,500)
(18,735)
(405,491)
At 31 December 2021
499,856
467,168
242,410
616,342
48,901
1,874,677
Carrying amount
At 31 December 2021
1,103,531
96,338
75,762
15,657
34,203
1,325,491
At 31 December 2020
756,560
139,137
93,231
59,130
33,746
1,081,804
9
Stocks
2021
2020
£
£
Raw materials and consumables
136,463
69,104
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
10
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
2,645,532
1,744,611
Amounts owed by related parties
357,545
1,782,734
Other debtors
440,591
813,979
3,443,668
4,341,324
Deferred tax asset
682
-
0
3,444,350
4,341,324
11
Creditors: amounts falling due within one year
2021
2020
£
£
Obligations under finance leases
-
0
35,319
Trade creditors
761,816
520,308
Amounts due to related parties
498,929
726,909
Corporation tax
-
0
2,778
Other taxation and social security
364,114
572,798
Dividends payable
-
0
1,500,000
Other creditors
22,446
8,226
Accruals and deferred income
331,295
502,698
1,978,600
3,869,036

Assets held under hire purchase agreement are secured against the assets to which they relate.

 

On 4 September 2020 a fixed and floating charge over all assets of the company was registered in favour of HSBC UK Bank Plc.

12
Provisions for liabilities
2021
2020
Notes
£
£
Dilapidation provision
1,603,387
1,126,384
Deferred tax liabilities
13
-
8,474
1,603,387
1,134,858
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
12
Provisions for liabilities
(Continued)
- 19 -
Movements on provisions apart from deferred tax liabilities:
Dilapidation provision
£
At 1 January 2021
1,126,384
Additional provisions in the year
477,003
At 31 December 2021
1,603,387
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2021
2020
2021
2020
Balances:
£
£
£
£
Accelerated capital allowances
-
20,628
(10,355)
-
Short term timing differences
-
(12,154)
11,037
-
-
8,474
682
-
2021
Movements in the year:
£
Liability at 1 January 2021
8,474
Credit to profit or loss
(9,156)
Asset at 31 December 2021
(682)
14
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
69,626
69,122

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.

RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
15
Share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
140,000 Ordinary shares of £1 each
140,000
140,000
1 Ordinary A share of £1 each
1
1
1 Ordinary B share of £1 each
1
1
20,488 Ordinary C shares of £1 each
20,488
20,488
160,490
160,490

Ordinary shares hold full and equal rights to participate in voting in all circumstances and in dividends and capital distributions, whether on a winding up or otherwise. The shares are not redeemable.
    

The A ordinary shares shall carry no right to receive notice of, attend or vote at any general meeting of the company save of a meeting of the holders of the A ordinary shares as a class.

The B ordinary shares shall carry no right to receive notice of, attend or vote at any general meeting of the company save of a meeting of the holders of the B ordinary shares as a class.

The C ordinary shares hold full and equal rights to participate in voting in all circumstances and in dividends and capital distributions, whether on a winding up or otherwise. The shares are not redeemable.

16
Share premium account

The reserve represents the excess amount received that was above the cost amount of the shares issued.

17
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
1,353,218
1,412,764
Between two and five years
4,991,486
4,647,931
In over five years
826,038
1,952,421
7,170,742
8,013,116
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
18
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
-
0
-
0
-
0
80,029
Buchen-ICS Limited
-
0
-
0
938
10,303
Other related parties
-
0
9,276
-
0
-
0
PSL Freight Limited
-
0
-
0
-
0
31,770
Remondis Plastics Recycling U.K. Limited
-
0
-
0
-
0
12,983
Rhenus Beteiligungen International GmbH
-
0
-
0
298,039
327,987
Rhenus Home Delivery Limited
-
0
-
0
-
0
263,568
Rhenus Logistics Limited
-
0
190,311
32,027
-
0
Rhenus Project Logistics Limited
-
0
19,172
167,925
-
0
Rhenus SE & Co. KG
357,545
1,563,976
-
0
-
0
19
Ultimate controlling party

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.

20
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
921,522
(671,522)
250,000
Obligations under finance leases
(35,319)
35,319
-
886,203
(636,203)
250,000
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
21
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
164,457
707,577
Adjustments for:
Taxation (credited)/charged
(38,049)
164,641
Finance costs
1,861
-
0
Investment income
-
0
(13,759)
Loss on disposal of tangible fixed assets
1,867
-
0
Depreciation and impairment of tangible fixed assets
254,414
254,416
Movements in working capital:
(Increase)/decrease in stocks
(67,359)
23,118
Decrease/(increase) in debtors
897,656
(1,540,014)
(Decrease)/increase in creditors
(352,339)
665,810
Cash generated from operations
862,508
261,789
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