James Baxter Haulage Limited 04661093 false 2022-04-01 2023-03-31 2023-03-31 The principal activity of the company is haulage. Digita Accounts Production Advanced 6.30.9574.0 true true true true 04661093 2022-04-01 2023-03-31 04661093 2023-03-31 04661093 bus:Director3 2023-03-31 04661093 bus:OrdinaryShareClass1 bus:Non-cumulativeNon-redeemableShares 2023-03-31 04661093 bus:OrdinaryShareClass2 bus:Non-cumulativeNon-redeemableShares 2023-03-31 04661093 bus:OrdinaryShareClass3 bus:Non-cumulativeNon-redeemableShares 2023-03-31 04661093 core:AcceleratedTaxDepreciationDeferredTax 2023-03-31 04661093 core:TaxLossesCarry-forwardsDeferredTax 2023-03-31 04661093 core:RetainedEarningsAccumulatedLosses 2023-03-31 04661093 core:ShareCapital 2023-03-31 04661093 core:CurrentFinancialInstruments 2023-03-31 04661093 core:CurrentFinancialInstruments 2 2023-03-31 04661093 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 04661093 core:Non-currentFinancialInstruments 2023-03-31 04661093 core:Non-currentFinancialInstruments core:AfterOneYear 2023-03-31 04661093 core:BetweenTwoFiveYears 2023-03-31 04661093 core:MoreThanFiveYears 2023-03-31 04661093 core:WithinOneYear 2023-03-31 04661093 core:FurnitureFittingsToolsEquipment 2023-03-31 04661093 core:LandBuildings 2023-03-31 04661093 core:MotorVehicles 2023-03-31 04661093 core:OtherPropertyPlantEquipment 2023-03-31 04661093 core:DeferredTaxation 2023-03-31 04661093 bus:FRS102 2022-04-01 2023-03-31 04661093 bus:Audited 2022-04-01 2023-03-31 04661093 bus:FullAccounts 2022-04-01 2023-03-31 04661093 bus:RegisteredOffice 2022-04-01 2023-03-31 04661093 bus:Director1 2022-04-01 2023-03-31 04661093 bus:Director2 2022-04-01 2023-03-31 04661093 bus:Director3 2022-04-01 2023-03-31 04661093 bus:OrdinaryShareClass1 bus:Non-cumulativeNon-redeemableShares 2022-04-01 2023-03-31 04661093 bus:OrdinaryShareClass2 bus:Non-cumulativeNon-redeemableShares 2022-04-01 2023-03-31 04661093 bus:OrdinaryShareClass3 bus:Non-cumulativeNon-redeemableShares 2022-04-01 2023-03-31 04661093 bus:Consolidated 2022-04-01 2023-03-31 04661093 bus:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 04661093 core:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 04661093 core:CommercialMotorVehicles 2022-04-01 2023-03-31 04661093 core:FurnitureFittingsToolsEquipment 2022-04-01 2023-03-31 04661093 core:Land 2022-04-01 2023-03-31 04661093 core:LandBuildings 2022-04-01 2023-03-31 04661093 core:LeaseholdImprovements 2022-04-01 2023-03-31 04661093 core:MotorVehicles 2022-04-01 2023-03-31 04661093 core:OtherPropertyPlantEquipment 2022-04-01 2023-03-31 04661093 core:PlantMachinery 2022-04-01 2023-03-31 04661093 core:ToolsEquipment 2022-04-01 2023-03-31 04661093 core:DeferredTaxation 2022-04-01 2023-03-31 04661093 core:OtherRelatedParties 2022-04-01 2023-03-31 04661093 core:UKTax 2022-04-01 2023-03-31 04661093 1 2022-04-01 2023-03-31 04661093 countries:EnglandWales 2022-04-01 2023-03-31 04661093 2022-03-31 04661093 core:FurnitureFittingsToolsEquipment 2022-03-31 04661093 core:LandBuildings 2022-03-31 04661093 core:MotorVehicles 2022-03-31 04661093 core:OtherPropertyPlantEquipment 2022-03-31 04661093 core:DeferredTaxation 2022-03-31 04661093 2021-04-01 2022-03-31 04661093 2022-03-31 04661093 bus:OrdinaryShareClass1 bus:Non-cumulativeNon-redeemableShares 2022-03-31 04661093 bus:OrdinaryShareClass2 bus:Non-cumulativeNon-redeemableShares 2022-03-31 04661093 bus:OrdinaryShareClass3 bus:Non-cumulativeNon-redeemableShares 2022-03-31 04661093 core:AcceleratedTaxDepreciationDeferredTax 2022-03-31 04661093 core:TaxLossesCarry-forwardsDeferredTax 2022-03-31 04661093 core:RetainedEarningsAccumulatedLosses 2022-03-31 04661093 core:ShareCapital 2022-03-31 04661093 core:CurrentFinancialInstruments 2022-03-31 04661093 core:CurrentFinancialInstruments 2 2022-03-31 04661093 core:CurrentFinancialInstruments core:WithinOneYear 2022-03-31 04661093 core:Non-currentFinancialInstruments 2022-03-31 04661093 core:Non-currentFinancialInstruments core:AfterOneYear 2022-03-31 04661093 core:BetweenTwoFiveYears 2022-03-31 04661093 core:MoreThanFiveYears 2022-03-31 04661093 core:WithinOneYear 2022-03-31 04661093 core:FurnitureFittingsToolsEquipment 2022-03-31 04661093 core:LandBuildings 2022-03-31 04661093 core:MotorVehicles 2022-03-31 04661093 core:OtherPropertyPlantEquipment 2022-03-31 04661093 core:UKTax 2021-04-01 2022-03-31 04661093 2021-03-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 04661093

James Baxter Haulage Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2023

 

James Baxter Haulage Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account and Statement of Retained Earnings

11

Balance Sheet

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 25

 

James Baxter Haulage Limited

Company Information

Directors

J. Baxter

R. A. Baxter

Registered office

Unit 15b South Leicester Industrial Estate
Beveridge Lane
Ellistown
Coalville
Leicestershire
LE67 1FB

Auditors

Robert Whowell & Partners
Chartered accountants
Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

 

James Baxter Haulage Limited

Strategic Report for the Year Ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

Principal activity

The principal activity of the company is haulage.

Fair review of the business

The business revenue increased £1,073,427 in the year to 31st March 2023 to £7,633,927, this was partly due to the securing of a new contract, and ongoing development of key accounts serviced by the business. To support the increase in turnover further investment was made in additional tractor units and industry specialist walking floor trailers. This was a considerable challenge due to the shortage of new vehicle stock and the premium reflected by the shortfall available within the market.

It is our intention to continue to invest in up-to-date fleet equipment, supported with manufacturer backed maintenance packages. However, there is much uncertainty around which low carbon technologies are going to become more dominant, and how logistics operations will adapt to facilitate the adoption of these technologies.

We recently invested in our first gas-powered commercial vehicle, to reduce our CO2 footprint, currently poor fuelling opportunities within our trading region hamper the progress of this investment. In addition, the global logistical marketplace has become increasingly turbulent due to more frequent natural and man-made disasters occurring, which delay and divert resources from the development and transition to net zero transport systems, making it more challenging to achieve a sustainable haulage operation.

Within the year debtors increased due to higher levels of turnover. A lapse in consideration of this led to the business incurring a bad debt of £52,688, the first significant debt incurred in the trading history of the business.

In reaction to this, the last quarter of the financial year focused on staff performance reviews, which resulted in a change within the business infrastructure. We continue to work with our HR provider to ensure a culture of openness and accountability is encouraged.

The company has continued to generate increased profits despite the waste and recycling market remaining competitive both locally and nationally. The company will continue to strive to offer a premium service and as such gain an advantage over its competitors. We consider the key performance indicators of the company to be the following:

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£'000

7,634

6,561

Gross profit

£'000

1,911

1,762

Profit before taxation

£'000

679

514

 

James Baxter Haulage Limited

Strategic Report for the Year Ended 31 March 2023

Management also continues to monitor closely non-financial key performance indicators. Emphasis is being placed on continuous staff improvement, including bespoke departmental training both for our workshop and our driving team.

Principal risks and uncertainties

The key business risks and uncertainties affecting the business are considered to be the ongoing fluctuations relating to fuel prices and scarcity of professional driving staff. Likewise, our competitors are also experiencing the same. We do therefore anticipate that we will remain competitive within the waste and recycling market. We have moderated these challenges by negotiating fuel escalators with our customers. The business is also mindful of the welfare of its driving staff and continues to invest in competitive salary packages.

The business concluded the financial year with good financial headroom, funded by its cash reserves and the availability of an overdraft facility. There is no foreseeable reason why this would not be renewed if required. This leaves the business in an excellent position to continue to seek opportunities to progress with our existing customer base, as well as foster new business relationships within the waste and recycling marketplace, allowing us to further demonstrate our first-class service levels.

Approved and authorised by the Board on 27 October 2023 and signed on its behalf by:
 

.........................................
R. A. Baxter
Director

 

James Baxter Haulage Limited

Directors' Report for the Year Ended 31 March 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors of the company

The directors who held office during the year were as follows:

J. Baxter

R. A. Baxter

L. M. Davies (ceased 8 March 2023)

Results and dividends

The profit for the year, after taxation, amounted to £484,503 (2022 - £492,204).

Dividends of £240,191 (2022 - £173,000) were paid during the year.

Information included in the Strategic Report

The company has chosen, in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the Strategic Report certain information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

Future developments

The business is now focused on developing new business contracts to enable growth, and further enhance the Baxter’s brand. Internally, we are investing in site facilities ensuring our staff have a better, safer working environment. We have made considerable progress raising staff awareness in Health and Safety at work. We are also looking to streamline our software packages further underpinning our productivity and reporting.

The shareholders are proud of the success of Baxter’s and the role it plays within the waste and recycling marketplace, and we will continue to improve our efficiencies to deliver our best service as standard.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Robert Whowell & Partners as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

 

James Baxter Haulage Limited

Directors' Report for the Year Ended 31 March 2023

Approved and authorised by the Board on 27 October 2023 and signed on its behalf by:
 

.........................................
R. A. Baxter
Director

 

James Baxter Haulage Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

James Baxter Haulage Limited

Independent Auditor's Report to the Members of James Baxter Haulage Limited

Opinion

We have audited the financial statements of James Baxter Haulage Limited (the 'company') for the year ended 31 March 2023, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 March 2023 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.

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 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.

The comparative financial statements for the year ended 31 March 2022 were unaudited.

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 original financial statements were 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.

 

James Baxter Haulage Limited

Independent Auditor's Report to the Members of James Baxter Haulage Limited

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 directors' 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 Statement of Directors' Responsibilities [set out on page 6], 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.

 

James Baxter Haulage Limited

Independent Auditor's Report to the Members of James Baxter Haulage Limited

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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

enquiring of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they had knowledge of any actual, suspected or alleged fraud; and the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

we obtained an understanding of the legal and regulatory frameworks applicable to the company based on our understanding of the company, sector experience and discussions with management. The most significant considerations for the company are the Companies Act 2006, Operators licence, Waste carriers licence, Corporate and VAT legislation, Employment Taxes, Health and Safety and the Bribery Act 2010.

discussing amongst the engagement team, who also undertook the audit testing on significant components, to assess how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas: management override of controls; and revenue recognition, specifically the manipulation of revenue using fraudulent journals.

we tested the appropriateness of accounting journals and other adjustments made in the preparation of the financial statements.

we reviewed the company's accounting policies for non-compliance with relevant standards. Our work also included considering significant accounting estimates for evidence of misstatement or possible bias and testing any significant transactions that appeared to be outside the normal course of business.

 

James Baxter Haulage Limited

Independent Auditor's Report to the Members of James Baxter Haulage Limited

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

....................................................................................
Paul D Johnson FCA (Senior Statutory Auditor)
For and on behalf of Robert Whowell & Partners, Statutory Auditor

Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

27 October 2023

 

James Baxter Haulage Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 March 2023

Note

2023
£

2022
£

Turnover

3

7,633,927

6,560,500

Cost of sales

 

(5,722,544)

(4,798,321)

Gross profit

 

1,911,383

1,762,179

Administrative expenses

 

(1,185,347)

(1,213,007)

Operating profit

4

726,036

549,172

Other interest receivable and similar income

5

926

235

Interest payable and similar charges

6

(47,744)

(35,809)

 

(46,818)

(35,574)

Profit before tax

 

679,218

513,598

Taxation

10

(194,715)

(21,394)

Profit for the financial year

 

484,503

492,204

Retained earnings brought forward

 

2,595,401

2,276,197

Dividends paid

 

(240,191)

(173,000)

Retained earnings carried forward

 

2,839,713

2,595,401

 

James Baxter Haulage Limited

(Registration number: 04661093)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

11

3,767,100

3,481,609

Current assets

 

Stocks

12

69,033

61,130

Debtors

13

1,100,031

1,077,246

Cash at bank and in hand

 

1,112,719

682,205

 

2,281,783

1,820,581

Creditors: Amounts falling due within one year

15

(1,594,346)

(1,323,252)

Net current assets

 

687,437

497,329

Total assets less current liabilities

 

4,454,537

3,978,938

Creditors: Amounts falling due after more than one year

15

(985,744)

(949,172)

Provisions for liabilities

16

(628,080)

(433,365)

Net assets

 

2,840,713

2,596,401

Capital and reserves

 

Called up share capital

1,000

1,000

Retained earnings

19

2,839,713

2,595,401

Shareholders' funds

 

2,840,713

2,596,401

Approved and authorised by the Board on 27 October 2023 and signed on its behalf by:
 

.........................................
J. Baxter
Director

 

James Baxter Haulage Limited

Statement of Cash Flows for the Year Ended 31 March 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

484,503

492,204

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

1,049,418

1,004,433

Profit on disposal of tangible assets

4

(231,061)

(107,190)

Finance income

5

(926)

(235)

Finance costs

6

47,744

35,809

Income tax expense

10

194,715

21,394

 

1,544,393

1,446,415

Working capital adjustments

 

Increase in stocks

12

(7,903)

(38,630)

Increase in debtors

13

(81,014)

(89,857)

Increase/(decrease) in creditors

15

151,301

(112,888)

Cash generated from operations

 

1,606,777

1,205,040

Income taxes received

10

58,229

7,695

Net cash flow from operating activities

 

1,665,006

1,212,735

Cash flows from investing activities

 

Interest received

5

926

235

Acquisitions of tangible assets

11

(1,640,306)

(1,383,395)

Proceeds from sale of tangible assets

 

536,458

250,301

Net cash flows from investing activities

 

(1,102,922)

(1,132,859)

Cash flows from financing activities

 

Interest paid

6

(47,744)

(35,809)

Payments to finance lease creditors

20

156,365

(128,545)

Dividends paid

(240,191)

(173,000)

Net cash flows from financing activities

 

(131,570)

(337,354)

Net increase/(decrease) in cash and cash equivalents

 

430,514

(257,478)

Cash and cash equivalents at 1 April

 

682,205

939,683

Cash and cash equivalents at 31 March

14

1,112,719

682,205

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 15b South Leicester Industrial Estate
Beveridge Lane
Ellistown
Coalville
Leicestershire
LE67 1FB

These financial statements were authorised for issue by the Board on 27 October 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land

Not depreciated

Leasehold property improvements

Straight line over the life of the lease

Trailers

25% reducing balance

Tools and equipment

20% reducing balance

Motor vehicles

25% reducing balance

Road haulage vehicles

25% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtor.

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the profit and loss account.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Road haulage

7,544,452

6,532,000

Tractor and trailer sales

89,475

28,500

7,633,927

6,560,500

4

Operating profit

Arrived at after charging/(crediting):

2023
 £

2022
 £

Depreciation

1,049,418

1,004,433

Profit on disposal of property, plant and equipment

(231,061)

(107,190)

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

5

Other interest receivable and similar income

2023
 £

2022
 £

Interest income on bank deposits

711

18

Other finance income

215

217

926

235

6

Interest payable and similar expenses

2023
 £

2022
 £

Interest on obligations under finance leases and hire purchase contracts

47,744

35,809

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

2,198,520

2,008,123

Social security costs

256,473

211,917

Pension costs, defined contribution scheme

48,157

42,184

Other employee expense

10,509

11,240

2,513,659

2,273,464

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Directors

3

3

Administration and support

5

5

Drivers

46

47

54

55

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

104,657

78,855

Contributions paid to defined contribution schemes

1,227

1,174

105,884

80,029

During the year the number of directors' who were accruing retirement benefits in respect of defined contribution pension schemes was as follows:

2023
 No.

2022
 No.

Accruing benefits under defined contribution pension scheme

1

1

9

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

12,000

-


 

10

Taxation

Tax charged/(credited) in the profit and loss account:

2023
£

2022
£

Current taxation

UK corporation tax

-

(58,229)

Deferred taxation

Arising from origination and reversal of timing differences

194,715

79,623

Tax expense in the income statement

194,715

21,394

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

679,218

513,598

Corporation tax at standard rate

129,051

97,584

Effect of expense not deductible in determining taxable profit

1,468

3,579

Effect of tax losses

-

58,229

Deferred tax expense relating to changes in tax rates or laws

136,852

-

Tax decrease from effect of capital allowances and depreciation

(208,942)

(151,512)

Tax increase from other short-term timing differences

57,863

21,393

Tax increase from effect of unrelieved tax losses carried forward

122,324

12,487

Other tax effects for reconciliation between accounting profit and tax expense/(income)

(43,901)

(20,366)

Total tax charge

194,715

21,394

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

805,464

Unused taxable losses c/fwd

177,384

-

177,384

805,464

2022

Asset
£

Liability
£

Accelerated capital allowances

-

445,852

Unused taxable losses c/fwd

12,487

-

12,487

445,852

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

11

Tangible assets

Land and buildings
£

Trailers, tools and equipment
 £

Motor vehicles
 £

Road haulage vehicles
£

Total
£

Cost or valuation

At 1 April 2022

343,358

2,731,269

96,414

3,958,875

7,129,916

Additions

-

163,196

16,500

1,460,610

1,640,306

Disposals

-

(28,960)

(64,593)

(594,908)

(688,461)

At 31 March 2023

343,358

2,865,505

48,321

4,824,577

8,081,761

Depreciation

At 1 April 2022

36,163

1,650,136

31,706

1,930,302

3,648,307

Charge for the year

15,067

289,537

7,713

737,101

1,049,418

Eliminated on disposal

-

(12,496)

(13,741)

(356,827)

(383,064)

At 31 March 2023

51,230

1,927,177

25,678

2,310,576

4,314,661

Carrying amount

At 31 March 2023

292,128

938,328

22,643

2,514,001

3,767,100

At 31 March 2022

307,195

1,081,133

64,708

2,028,573

3,481,609

Included within the net book value of land and buildings above is £190,186 (2022 - £190,186) in respect of freehold land and buildings and £101,942 (2022 - £117,009) in respect of leasehold property improvements.
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Road haulage vehicles and trailers

2,923,135

2,201,112

     

12

Stocks

2023
 £

2022
 £

Parts and fuel

69,033

61,130

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

13

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

1,063,797

947,383

Other debtors

 

-

25,000

Prepayments

 

36,234

46,634

Income tax asset

10

-

58,229

   

1,100,031

1,077,246

14

Cash and cash equivalents

2023
 £

2022
 £

Cash at bank

855,053

518,004

Short-term deposits

257,666

164,201

1,112,719

682,205

15

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

20

814,503

694,710

Trade creditors

 

343,578

284,459

Amounts due to related parties

 

120,897

50,214

Social security and other taxes

 

285,685

237,151

Outstanding defined contribution pension costs

 

9,839

8,166

Other payables

 

2,837

757

Accrued expenses

 

17,007

47,795

 

1,594,346

1,323,252

Due after one year

 

Loans and borrowings

20

985,744

949,172

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

16

Provisions for liabilities

Deferred tax
£

Total
£

At 1 April 2022

433,365

433,365

Increase in existing provisions

194,715

194,715

At 31 March 2023

628,080

628,080

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £48,157 (2022 - £42,184).

Contributions totalling £9,839 (2022 - £8,166) were payable to the scheme at the end of the year and are included in creditors.

18

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A shares of £1 each

960

960

960

960

Ordinary B shares of £1 each

20

20

20

20

Ordinary C shares of £1 each

20

20

20

20

 

1,000

1,000

1,000

1,000

19

Reserves

Retained earnings

Retained earnings represents profits and losses retained in the current and previous periods.

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

20

Loans and borrowings

2023
 £

2022
 £

Non-current loans and borrowings

Hire purchase and finance leases

985,744

949,172

Loans and borrowings include net obligations under hire purchase contracts which are secured against the assets to which the borrowings relate of £985,744 (2022 - £949,172). The interest rates charged vary between agreements and finance provider. Due to the volume of agreements it is not reasonable to list every rate.

2023
 £

2022
 £

Current loans and borrowings

Hire purchase and finance leases

814,503

694,710

Loans and borrowings include net obligations under hire purchase contracts which are secured against the assets to which the borrowings relate of £814,503 (2022 - £694,710). The interest rates charged vary between agreements and finance provider. Due to the volume of agreements it is not reasonable to list every rate.

21

Commitments under operating leases

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

31,470

31,470

Later than one year and not later than five years

77,000

77,000

Later than five years

24,063

43,313

132,533

151,783

22

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £21,220 (2022 - £Nil).

 

James Baxter Haulage Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

23

Analysis of changes in net debt

At 1 April 2022
£

Cash flows
£

At 31 March 2023
£

Cash and cash equivalents

Cash

682,205

430,514

1,112,719

Borrowings

Finance leases

(1,643,882)

(156,365)

(1,800,247)

Net debt

(961,677)

274,149

(687,528)

24

Related party transactions

Summary of transactions with other related parties

During the year two of the directors and members of their close family received dividends amounting to £240,191 (2022 - £173,000).
 

25

Ultimate controlling party

The company is controlled by the directors by virtue of their controlling interest in the company's issued share capital.