Company Registration No. 02469124 (England and Wales)
RHENUS HIGH TECH LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
RHENUS HIGH TECH LIMITED
COMPANY INFORMATION
Directors
G A Barrow
C Braune
G Hollington
(Appointed 18 March 2022)
Company number
02469124
Registered office
Keiler House
Challenge Road
Ashford
Middlesex
United Kingdom
TW15 1AX
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
RHENUS HIGH TECH 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 - 23
RHENUS HIGH TECH LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Business review
During 2021 Rhenus High Tech Limited continued to focus on its core business providing value add logistics services to customers in the Healthcare, IT, Banking and Retail sectors, whilst looking for new opportunities in B2C markets.
2021 was a successful year for the company financially, turnover increased from £13.8m in 2020 to £14.8m in 2021 and operating profit increased from £280k in 2020 to £373k in 2021. The improved financial performance was achieved through organic growth, active management of costs despite significant inflationary pressure and driving operational efficiencies.
The company continues to invest in process improvements and training for employees. In 2021 it also embarked on a Graduate Training Programme aimed at identifying and investing in the development of future managers/leaders for the company.
2022 is expected to bring new challenges not least related to increased uncertainty in the global political and economic landscape. However, the directors believe the company is well positioned and are optimistic about the business and its performance for the coming year.
Principal risks and uncertainties
There are numerous uncertainties for UK Logistics 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.
Developments and future outlook
The company continues to look for opportunities to develop its business within traditional as well as new sectors.
Financial risk management objectives and policies
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.
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 exposes the entity to fair value risk. The company regularly reviews its funding arrangements to ensure they are competitive within the market place.
RHENUS HIGH TECH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
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.
G Hollington
Director
9 August 2022
RHENUS HIGH TECH 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 8.
No ordinary dividends were paid. 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:
G A Barrow
C Braune
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:
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.
RHENUS HIGH TECH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
On behalf of the board
G Hollington
Director
9 August 2022
RHENUS HIGH TECH LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RHENUS HIGH TECH LIMITED
- 5 -
Opinion
We have audited the financial statements of Rhenus High Tech 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:
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.
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.
RHENUS HIGH TECH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF RHENUS HIGH TECH 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:
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 HIGH TECH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF RHENUS HIGH TECH 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.
This report is made solely to the company’s shareholder, 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 shareholder 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 shareholder 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 HIGH TECH LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
14,769,743
13,805,862
Cost of sales
(8,345,702)
(7,685,540)
Gross profit
6,424,041
6,120,322
Administrative expenses
(6,140,591)
(6,295,721)
Other operating income
89,962
455,308
Operating profit
4
373,412
279,909
Interest receivable and similar income
327
173
Interest payable and similar expenses
7
(40,056)
(82,497)
Profit before taxation
333,683
197,585
Tax on profit
8
(24,985)
10,237
Profit for the financial year
308,698
207,822
Retained earnings brought forward
568,151
360,329
Retained earnings carried forward
876,849
568,151
The profit and loss account has been prepared on the basis that all operations are continuing operations.
RHENUS HIGH TECH LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
9
43,029
71,076
Tangible assets
10
1,360,937
827,184
1,403,966
898,260
Current assets
Debtors
11
4,659,492
4,832,783
Cash at bank and in hand
346,074
379,029
5,005,566
5,211,812
Creditors: amounts falling due within one year
12
(2,065,440)
(2,163,185)
Net current assets
2,940,126
3,048,627
Total assets less current liabilities
4,344,092
3,946,887
Creditors: amounts falling due after more than one year
13
(2,200,000)
(3,008,733)
Provisions for liabilities
14
(1,167,240)
(270,000)
Net assets
976,852
668,154
Capital and reserves
Called up share capital
16
100,003
100,003
Profit and loss reserves
876,849
568,151
Total equity
976,852
668,154
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. 02469124
RHENUS HIGH TECH LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
321,015
(124,665)
Interest paid
(40,056)
(82,497)
Income taxes (paid)/refunded
(114,406)
29,854
Net cash inflow/(outflow) from operating activities
166,553
(177,308)
Investing activities
Purchase of intangible assets
(84,603)
Purchase of tangible fixed assets
(208,043)
(45,197)
Proceeds on disposal of tangible fixed assets
8,208
26,375
Interest received
327
173
Net cash used in investing activities
(199,508)
(103,252)
Net decrease in cash and cash equivalents
(32,955)
(280,560)
Cash and cash equivalents at beginning of year
379,029
659,589
Cash and cash equivalents at end of year
346,074
379,029
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
1
Accounting policies
Company information
Rhenus High Tech Limited is a private company limited by shares incorporated in England and Wales. The registered office is Keiler House, Challenge Road, Ashford, Middlesex, United Kingdom, TW15 1AX.
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
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 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. The following criteria must also be met before turnover is recognised:
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are delivered and all the conditions in the contract have been met.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
33% straight line
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.
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -
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
10% straight line
Plant and equipment
between 10% and 33% straight line
Computers
33% straight line
Motor vehicles
between 20% and 33% 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.
1.6
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 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 HIGH TECH 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 HIGH TECH 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
Leases
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.12
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.
1.13
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.
1.14
Finance costs are charged to the statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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 HIGH TECH 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
Freight services
14,769,743
13,805,862
2021
2020
£
£
Other significant revenue
Interest income
327
173
Government grants received
41,264
200,536
Rental income
48,698
254,772
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
12,777,115
11,659,351
Rest of Europe
1,565,520
1,682,756
Rest of World
427,108
463,755
14,769,743
13,805,862
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 16 -
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
14,491
(4,911)
Government grants
(41,264)
(200,536)
Fees payable to the company's auditor for the audit of the company's financial statements
13,750
12,600
Depreciation of tangible fixed assets
416,437
362,312
Loss/(profit) on disposal of tangible fixed assets
146,885
(26,371)
Amortisation of intangible assets
28,047
13,527
Operating lease charges
1,347,713
1,506,066
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Distribution
64
58
Administrative
51
56
Directors
3
3
Total
118
117
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
4,255,948
4,125,170
Social security costs
438,384
452,410
Pension costs
231,051
219,715
4,925,383
4,797,295
6
Remuneration for key managment personal
2021
2020
£
£
Remuneration for qualifying services
194,928
179,669
Company pension contributions to defined contribution schemes
16,234
15,816
211,162
195,485
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
6
Remuneration for key managment personal
(Continued)
- 17 -
The number of key management personal for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2020 - 1).
7
Interest payable and similar expenses
2021
2020
£
£
Interest payable to group undertakings
40,056
82,497
8
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
55,383
75,662
Adjustments in respect of prior periods
(7,580)
(29,854)
Total current tax
47,803
45,808
Deferred tax
Origination and reversal of timing differences
(9,485)
(56,045)
Adjustment in respect of prior periods
(13,333)
Total deferred tax
(22,818)
(56,045)
Total tax charge/(credit)
24,985
(10,237)
The actual charge/(credit) 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
333,683
197,585
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
63,400
37,541
Tax effect of expenses that are not deductible in determining taxable profit
82
1,478
Adjustments in respect of prior years
(17,924)
(29,854)
Effect of change in corporation tax rate
(38,691)
(16,702)
Depreciation on assets not qualifying for tax allowances
37,502
1,970
Deferred tax adjustments in respect of prior years
(13,333)
(4,670)
Super deductions allowed
(6,051)
Taxation charge/(credit) for the year
24,985
(10,237)
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
9
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2021 and 31 December 2021
290,296
84,603
374,899
Amortisation and impairment
At 1 January 2021
290,296
13,527
303,823
Amortisation charged for the year
28,047
28,047
At 31 December 2021
290,296
41,574
331,870
Carrying amount
At 31 December 2021
43,029
43,029
At 31 December 2020
71,076
71,076
10
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2021
1,261,842
457,769
3,907,390
815,537
6,442,538
Additions
951,578
2,162
151,543
1,105,283
Disposals
(355,571)
(181,028)
(1,118,541)
(564,577)
(2,219,717)
At 31 December 2021
1,857,849
278,903
2,940,392
250,960
5,328,104
Depreciation and impairment
At 1 January 2021
697,587
420,811
3,743,595
753,361
5,615,354
Depreciation charged in the year
226,336
15,071
139,926
35,104
416,437
Eliminated in respect of disposals
(200,478)
(181,028)
(1,118,541)
(564,577)
(2,064,624)
At 31 December 2021
723,445
254,854
2,764,980
223,888
3,967,167
Carrying amount
At 31 December 2021
1,134,404
24,049
175,412
27,072
1,360,937
At 31 December 2020
564,255
36,958
163,795
62,176
827,184
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
11
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
3,410,416
3,475,228
Amounts owed by group undertakings
80,398
508,056
Other debtors
87,592
71,092
Prepayments and accrued income
864,928
585,067
4,443,334
4,639,443
Deferred tax asset (note 15)
216,158
193,340
4,659,492
4,832,783
12
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
592,194
437,625
Amounts owed to group undertakings
213,672
203,144
Corporation tax
9,059
75,662
Other taxation and social security
477,537
630,286
Other creditors
24,007
24,326
Accruals and deferred income
748,971
792,142
2,065,440
2,163,185
Net obligations under finance leases and hire purchase contracts are secured by way of a charge on the assets financed.
13
Creditors: amounts falling due after more than one year
2021
2020
£
£
Amounts owed to group undertakings
2,200,000
3,008,733
14
Provisions for liabilities
2021
2020
£
£
Dilapidation provision
1,167,240
270,000
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
14
Provisions for liabilities
(Continued)
- 20 -
Movements on provisions:
Dilapidation provision
£
At 1 January 2021
270,000
Additional provisions in the year
897,240
At 31 December 2021
1,167,240
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2021
2020
Balances:
£
£
Accelerated capital allowances
168,122
130,542
Short term timing differences
48,036
62,798
216,158
193,340
2021
Movements in the year:
£
Asset at 1 January 2021
(193,340)
Credit to profit or loss
(22,818)
Asset at 31 December 2021
(216,158)
16
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
"A" non-voting ordinary share of £1 each
1
1
1
1
"B" non-voting ordinary share of £1 each
1
1
1
1
"C" non-voting ordinary share of £1 each
1
1
1
1
100,003
100,003
100,003
100,003
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
17
Pension commitments
Included within other creditors is £29,512 (2020: £27,722) in respect of contributions to the company's defined contribution pension scheme, paid monthly in arrears.
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
990,385
795,836
Between two and five years
2,379,257
1,465,216
In over five years
623,997
824,200
3,993,639
3,085,252
Lessor
The future minimum lease payments under non-cancellable operating leases due to the company are as follows:
2021
2020
£
£
36,408
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
19
Related party transactions
Amount owed to
Amounts owed by
2021
2020
2021
2020
£
£
£
£
Other related parties
13,193
1,246
938
3,925
PSL Freight Limited
17,533
10,539
Rhenus Assets & Services GmbH & Co. KG
695
1,416
Rhenus Contract Logistics Holding B.V.
22,763
12,304
Rhenus Fulfillment Solutions GmbH & Co. KG
11,301
Rhenus High Tech GmbH
3,954
5,578
Rhenus High Tech N.V.
5,354
38,734
Rhenus High Tech Service GmbH & Co.K
33,917
73,403
Rhenus Home Delivery Ltd
57,239
44,495
5,093
1,904
Rhenus Logistics Ltd
3,313
42,735
7,555
Rhenus Midi Data GmbH
2,925
Rhenus Midi Data Romania S.R.L.
2,690
Rhenus SE & Co. KG
79,464
3,008,733
484,345
Rhenus South Europe, S.L.
6,834
6,990
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 undertakings. All related party transactions have been carried out under normal commercial terms.
20
Ultimate controlling party
At the current and preceding year ends the company's ultimate parent undertaking was Rethmann SE & Co. KG, a private company incorporated in Germany, controlled by its directors, and the immediate parent undertaking of the company was Rhenus Beteiligungen GmBH, a company incorporated in Germany.
21
Cash generated from/(absorbed by) operations
2021
2020
£
£
Profit for the year after tax
308,698
207,822
Adjustments for:
Taxation charged/(credited)
24,985
(10,237)
Finance costs
40,056
82,497
Investment income
(327)
(173)
Loss/(gain) on disposal of tangible fixed assets
146,885
(26,371)
Amortisation and impairment of intangible assets
28,047
13,527
Depreciation and impairment of tangible fixed assets
416,437
362,312
Movements in working capital:
Decrease/(increase) in debtors
196,109
(481,894)
Decrease in creditors
(839,875)
(272,148)
Cash generated from/(absorbed by) operations
321,015
(124,665)
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
22
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
379,029
(32,955)
346,074
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