Company registration number 06809943 (England and Wales)
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 10
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
330,021
384,271
Tangible assets
4
1,394,910
1,569,926
Investments
5
150,000
150,000
1,874,931
2,104,197
Current assets
Debtors
1,276,260
1,141,356
Cash at bank and in hand
64,327
75,480
1,340,587
1,216,836
Creditors: amounts falling due within one year
(1,495,475)
(2,212,537)
Net current liabilities
(154,888)
(995,701)
Total assets less current liabilities
1,720,043
1,108,496
Creditors: amounts falling due after more than one year
(757,702)
(220,644)
Provisions for liabilities
(108,330)
(142,039)
Net assets
854,011
745,813
Capital and reserves
Called up share capital
7
5
5
Profit and loss reserves
854,006
745,808
Total equity
854,011
745,813
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 2 -
In accordance with section 444 of the Companies Act 2006 all of the members of the company have consented to the preparation of an abridged statement of financial position pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (S.I. 2008/409)(b).
The director of the company has elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 15 November 2023
Mr Karl Brown
Director
Company Registration No. 06809943
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
Direct Express Logistics Doncaster Limited is a private company limited by shares incorporated in England and Wales. The company number is 06809943 and its registered office is 2 Alpha Court, Capitol Park, Thorne, Doncaster, DN8 5TZ.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
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.
Revenue from services provided is recognised by reference to the labour hours and costs incurred to date on each contract.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.4
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:
Freehold land and buildings
4% Straight Line
Plant, fixtures and fittings
20% Reducing Balance
Motor vehicles
25% Reducing Balance
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.
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.8
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 abridged statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Equity instruments
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.
1.10
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 income statement 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.
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
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 income statement, 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.
Rentals and incentives paid under operating leases are charged to profit and loss on a straight line basis over the period of the lease.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 7 -
1.15
Debts subject to invoice discounting are included within trade debtors until the monies are received from the customer by the financing company. The corresponding advances from the financing company are included as loans within creditors due within one year.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 55 (2022 - 57). The director was remunerated through companies under common control.
2023
2022
Number
Number
Total
55
57
3
Intangible fixed assets
Goodwill
Total
£
Cost
At 1 April 2022 and 31 March 2023
1,085,000
Amortisation and impairment
At 1 April 2022
700,729
Amortisation charged for the year
54,250
At 31 March 2023
754,979
Carrying amount
At 31 March 2023
330,021
At 31 March 2022
384,271
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
4
Tangible fixed assets
Total
£
Cost
At 1 April 2022
2,212,093
Additions
64,904
Disposals
(108,526)
At 31 March 2023
2,168,471
Depreciation and impairment
At 1 April 2022
642,167
Depreciation charged in the year
188,349
Eliminated in respect of disposals
(56,955)
At 31 March 2023
773,561
Carrying amount
At 31 March 2023
1,394,910
At 31 March 2022
1,569,926
The net book value of assets held under hire purchase & finance lease contracts at the 31st March 2023 amounted to £374,506 (2022 - £551,517). Depreciation of assets held under finance leases and hire purchase contracts in the year amounted to £121,769 (2022 - £189,947).
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
150,000
150,000
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
6
Creditors
Included within creditors due within one year are secured creditors amounting to £228,055 (2022 - £1,263,081).
Included within creditors due after one year are secured creditors amounting to £757,702 (2022 - £220,644).
The secured debts are as follows: 2023 2022
Hire Purchase Obligations 207,045 432,195
Barclays Mortgage 747,045 780,322
HSBC Invoice Discounting Nil 229,541
Barclays Bounce Back Loan 31,667 41,667
The amounts due in respect of the hire purchase contracts are secured on the underlying assets financed.
The Barclays borrowings are secured by fixed and floating charge over the company's assets dated 3rd November 2016 and also by a charge on the property at 2 Alpha Court, Capitol Park, Thorne, Doncaster, DN8 5TZ dated 13th December 2016.
The HSBC invoice discount financing was secured by fixed and floating charges over the company's assets dated 31st May 2018 which was satisfied on 15th December 2022.
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4
4
4
4
B Ordinary shares of £1 each
1
1
1
1
5
5
5
5
The different classes of shares rank pari passu save in relation to dividends.
8
Related party transactions
DIRECT EXPRESS LOGISTICS DONCASTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Related party transactions
(Continued)
- 10 -
At the 31 March 2023 the company was owed loans amounting to £90,328 (2022 - £90,328) by companies under the common control of the director. The loans are interest free and repayable on demand.
During the prior year the company acquired a wholly owned subsidiary, Western Couriers Limited, from a company under common control for £201,000, this has been subject to an impairment of £51,000 at the 31st March 2022. At the 31st March 2023 the company owed £710 to Western Couriers Limited (2022 the company was owed £11,115 by Western Couriers Limited). The loan is interest free and repayable on demand.
At the 31 March 2023 the company owed loans amounting to £210,000 (2022 - £30,399) to a company under the common control of the director. The loan is interest free and repayable on demand.
At the 31st March 2023 the company owed the director and his spouse £613 (2022 - £1,059). The director and his spouse have advanced funds amounting to £1,000 in the year and withdrawn £1,446. The loan is interest free and repayable on demand.
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
244,145
210,631
2023-03-312022-04-01false15 November 2023CCH SoftwareCCH Accounts Production 2023.100No description of principal activityMr K BrownMr Karl Brown068099432022-04-012023-03-31068099432023-03-31068099432022-03-3106809943core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3106809943core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3106809943core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3106809943core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3106809943core:ShareCapital2023-03-3106809943core:ShareCapital2022-03-3106809943core:RetainedEarningsAccumulatedLosses2023-03-3106809943core:RetainedEarningsAccumulatedLosses2022-03-3106809943core:ShareCapitalOrdinaryShares2023-03-3106809943core:ShareCapitalOrdinaryShares2022-03-3106809943bus:CompanySecretaryDirector12022-04-012023-03-3106809943core:Goodwill2022-04-012023-03-3106809943core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3106809943core:FurnitureFittings2022-04-012023-03-3106809943core:MotorVehicles2022-04-012023-03-31068099432021-04-012022-03-31068099432022-03-3106809943bus:PrivateLimitedCompanyLtd2022-04-012023-03-3106809943bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3106809943bus:FRS1022022-04-012023-03-3106809943bus:AuditExemptWithAccountantsReport2022-04-012023-03-3106809943bus:Director12022-04-012023-03-3106809943bus:CompanySecretary12022-04-012023-03-3106809943bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP