Company Registration No. SC355823 (Scotland)
GRAMPIAN CONTINENTAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
GRAMPIAN CONTINENTAL LIMITED
COMPANY INFORMATION
Directors
Mr N J Bremner
Mr M W Lacey
Mr G Murray
Mr M D Farrow
Secretary
Stronachs Secretaries Limited
Company number
SC355823
Registered office
28 Albyn Place
Aberdeen
AB10 1YL
Auditor
Johnston Carmichael LLP
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
GRAMPIAN CONTINENTAL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Group profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
GRAMPIAN CONTINENTAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

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

Fair review of the business

The results for the group show turnover of £38,710,480 (2022 - £32,955,560), gross profit of £8,601,411 (2022 - £7,491,573) and a pre tax profit of £3,665,929 (2022 - £3,127,931). The net assets of the group at the year end were £10,617,368 (2022 - £7,622,425).

We are now 2 years into the new premises and overall, we are very happy. Any apprehensions we may have had have turned out positive and we can now boast that we have not only filled the vacant areas, but we purchased adjacent premises with a view to re-locating the workshop. The new workshop was completed at the end of 2022 and the maintenance team moved across in January of the new year to take up residence.

 

The sales team have been very busy in the fact that new and extended contracts have been awarded in various fields and the new facility next door is fully occupied with tenants.

 

We have always felt that health and safety is very important and fundamental to any business. As we went through the year, we continued to assess our position, staying up to date and running with all customer requirements.

 

In turn, we continue to strive forward with our own customs team with external training on the new CDS customs system & government changes. We lead the way with internal export, import – transit formalities for the easy flow of our vehicles into Europe and beyond.

 

A successful recruiting drive was entered into and we are satisfied we now have the correct manpower to utilise the facility. It also extends to the driver team but the shortage we have encountered over previous years has not gone away, it is not as near as bad as it was.

 

We have completed a rigorous renewal programme over the financial year capitalising on the 130% super tax relief, however we will not rest on our laurels and will continue to source beneficial deals when available.

 

Continuous focus remains on consumables, especially the fluctuating cost of fuel. We strategically continue to check the markets and supply chains to ensure buying is clever and at best market price.

 

The directors are continually monitoring operational effectiveness directly from the coal face on a day-to-day basis, which gives us and the staff confidence in our approach.

Principal risks and uncertainties

Principal risks and uncertainties have been caused by the rapid rise in interest rates. This has massively affected the construction industry and so in turn that part of the transport division has been impacted but all other areas have been very buoyant.

Key performance indicators

Traditionally, performance has been measured against revenue flows, profit and a healthy balance sheet: as an organisation committed to business expansion we believe our creativity, innovation and portfolio expansion will provide the stimulus for future growth and development.

 

On behalf of the board

Mr N J Bremner
Director
22 November 2023
GRAMPIAN CONTINENTAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

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

Principal activities

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

Results and dividends

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

Ordinary dividends were declared amounting to £160,000 (2022 - £160,000). The directors do not recommend payment of a further dividend.

Directors

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

Mr N J Bremner
Mr M W Lacey
Mr G Murray
Mr M D Farrow
Future developments

The directors do not anticipate any changes to their business plan in the foreseeable future.

Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr N J Bremner
Director
22 November 2023
GRAMPIAN CONTINENTAL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GRAMPIAN CONTINENTAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GRAMPIAN CONTINENTAL LIMITED
- 4 -
Opinion

We have audited the financial statements of Grampian Continental Limited (the 'parent company') and its subsidiary (the 'group') for the year ended 31 March 2023 which comprise the Group Profit and Loss Account, the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group 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 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:


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 group 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

 

GRAMPIAN CONTINENTAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRAMPIAN CONTINENTAL LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group and parent 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 group or parent 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.

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

Extent to which an audit is 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, 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.

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

GRAMPIAN CONTINENTAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRAMPIAN CONTINENTAL LIMITED
- 6 -
Extent to which an audit is considered capable of detecting irregularities, including fraud (continued)

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and parent company. focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

We gained an understanding of how the group and parent company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns, and relevant correspondence with regulatory bodies.

We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

Our audit procedures were designed to respond to the risk of material misstatements 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

GRAMPIAN CONTINENTAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRAMPIAN CONTINENTAL LIMITED
- 7 -

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.

David Wilson (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
23 November 2023
Chartered Accountants
Statutory Auditor
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
GRAMPIAN CONTINENTAL LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
38,710,480
32,955,560
Cost of sales
(30,109,069)
(25,463,987)
Gross profit
8,601,411
7,491,573
Administrative expenses
(5,398,758)
(4,537,141)
Other operating income
609,864
295,775
Operating profit
4
3,812,517
3,250,207
Interest receivable and similar income
8
-
0
45
Interest payable and similar expenses
9
(146,588)
(122,321)
Profit before taxation
3,665,929
3,127,931
Tax on profit
10
(691,913)
(748,445)
Profit for the financial year
2,974,016
2,379,486
Profit for the financial year is all attributable to the owners of the parent company.

 

GRAMPIAN CONTINENTAL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Profit for the year
2,974,016
2,379,486
Other comprehensive income
Currency translation differences
180,927
(29,502)
Total comprehensive income for the year
3,154,943
2,349,984
Total comprehensive income for the year is all attributable to the owners of the parent company.
GRAMPIAN CONTINENTAL LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
10,082,399
8,554,666
Investment properties
13
1,826,365
1,826,365
11,908,764
10,381,031
Current assets
Stocks
15
56,205
150,561
Debtors
16
8,288,451
9,702,675
Cash at bank and in hand
1,673,490
1,354,105
10,018,146
11,207,341
Creditors: amounts falling due within one year
17
(8,016,799)
(10,356,075)
Net current assets
2,001,347
851,266
Total assets less current liabilities
13,910,111
11,232,297
Creditors: amounts falling due after more than one year
18
(2,041,193)
(2,825,009)
Provisions for liabilities
Deferred tax liability
21
1,251,550
784,863
(1,251,550)
(784,863)
Net assets
10,617,368
7,622,425
Capital and reserves
Called up share capital
23
40,000
40,000
Capital redemption reserve
25
10,000
10,000
Other reserves
25
175,491
(5,436)
Profit and loss reserves
25
10,391,877
7,577,861
Total equity
10,617,368
7,622,425
The financial statements were approved by the board of directors and authorised for issue on 22 November 2023 and are signed on its behalf by:
22 November 2023
Mr N J Bremner
Director
GRAMPIAN CONTINENTAL LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,781,289
7,141,141
Investment properties
13
1,826,365
1,826,365
Investments
14
15,934
15,934
10,623,588
8,983,440
Current assets
Stocks
15
56,205
150,561
Debtors
16
7,388,631
8,744,243
Cash at bank and in hand
820,392
317,041
8,265,228
9,211,845
Creditors: amounts falling due within one year
17
(7,621,568)
(9,100,364)
Net current assets
643,660
111,481
Total assets less current liabilities
11,267,248
9,094,921
Creditors: amounts falling due after more than one year
18
(2,041,193)
(2,825,009)
Provisions for liabilities
Deferred tax liability
21
1,247,728
781,157
(1,247,728)
(781,157)
Net assets
7,978,327
5,488,755
Capital and reserves
Called up share capital
23
40,000
40,000
Capital redemption reserve
25
10,000
10,000
Profit and loss reserves
25
7,928,327
5,438,755
Total equity
7,978,327
5,488,755

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,649,572 (2022 - £2,029,455 profit).

The financial statements were approved by the board of directors and authorised for issue on 22 November 2023 and are signed on its behalf by:
22 November 2023
Mr N J Bremner
Director
Company Registration No. SC355823
GRAMPIAN CONTINENTAL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
40,000
10,000
24,066
5,358,375
5,432,441
Year ended 31 March 2022:
Profit for the year
-
-
-
2,379,486
2,379,486
Other comprehensive income:
Currency translation differences
-
-
-
(29,502)
(29,502)
Total comprehensive income for the year
-
-
-
2,349,984
2,349,984
Dividends
11
-
-
-
(160,000)
(160,000)
Transfers
-
-
(29,502)
29,502
-
Balance at 31 March 2022
40,000
10,000
(5,436)
7,577,861
7,622,425
Year ended 31 March 2023:
Profit for the year
-
-
-
2,974,016
2,974,016
Other comprehensive income:
Currency translation differences
-
-
-
180,927
180,927
Total comprehensive income for the year
-
-
-
3,154,943
3,154,943
Dividends
11
-
-
-
(160,000)
(160,000)
Transfers
-
-
180,927
(180,927)
-
Balance at 31 March 2023
40,000
10,000
175,491
10,391,877
10,617,368
GRAMPIAN CONTINENTAL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
40,000
10,000
3,569,300
3,619,300
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
2,029,455
2,029,455
Dividends
11
-
-
(160,000)
(160,000)
Balance at 31 March 2022
40,000
10,000
5,438,755
5,488,755
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
2,649,572
2,649,572
Dividends
11
-
-
(160,000)
(160,000)
Balance at 31 March 2023
40,000
10,000
7,928,327
7,978,327
GRAMPIAN CONTINENTAL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
5,080,848
3,431,751
Interest paid
(146,588)
(122,321)
Income taxes paid
(358,464)
(99,100)
Net cash inflow from operating activities
4,575,796
3,210,330
Investing activities
Purchase of tangible fixed assets
(1,039,529)
(2,864,181)
Proceeds on disposal of tangible fixed assets
351,743
208,629
Interest received
-
0
45
Net cash used in investing activities
(687,786)
(2,655,507)
Financing activities
Invoice finance repayment
(1,124,930)
(162,217)
Proceeds of new bank loans
-
500,000
Bank loan repayment
(433,376)
(98,816)
Payment of finance leases obligations
(1,614,671)
(813,274)
Dividends paid to equity shareholders
(395,000)
(55,000)
Net cash used in financing activities
(3,567,977)
(629,307)
Net increase/(decrease) in cash and cash equivalents
320,033
(74,484)
Cash and cash equivalents at beginning of year
1,354,105
1,429,938
Effect of foreign exchange rates
(764)
(1,349)
Cash and cash equivalents at end of year
1,673,490
1,354,105
GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

Grampian Continental Limited (“the parent company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 28 Albyn Place, Aberdeen, AB10 1YL. The principal place of business is Blacklaws House, Minto Drive, Aberdeen, AB12 3LW.

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 group. Monetary amounts in these financial statements are rounded to the nearest pound sterling.

The financial statements have been prepared under the historical cost convention, except for investment properties at fair value. The principal accounting policies adopted are set out below.

The parent company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Grampian Continental Limited and its subsidiary (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 31 March 2023.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and company have adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months from the approval of the financial statements. The directors actively manage cash flows and use cash forecasting to make informed management decisions, and have considered plausible adverse scenarios. The directors expect to operate within the terms of the debt facilities currently available and expected to be available for the foreseeable future.

 

On this basis, the directors continue to adopt the going concern basis in preparing the financial statements.

1.4
Turnover

Turnover represents net sales from from road haulage services, excluding value added tax and is recognised in the financial statements when the group has received the right to consideration. The group usually obtains the right to consideration upon the collection of goods for delivery to the end-customer.

 

Rental income is recognised on a straight line basis over the period of the rental term.

GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
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.

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
2% on cost
Leasehold improvements
10% on cost
Plant and machinery
33% on cost
Fixtures and fittings
20% on cost
Computer equipment
33% on cost
Motor vehicles
20% on cost

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 recognised in the profit and loss account.

1.6
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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).

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

1.9
Stocks

Stocks are stated at cost and relate to consumables held for internal use by the group.

 

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 group 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 group after deducting all of its liabilities.

GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
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 group’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 if, and only if, there is 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.

GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.14
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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

The companies in the group operate a defined contribution pension scheme. Payments to the group's pension scheme are charged to the profit and loss account in the period to which they relate.

1.16
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the asset's fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.17
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.

1.18
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

 

The financial statements of overseas subsidiary undertakings are translated at the rate of exchange ruling at the balance sheet date. The exchange differences arising on the retranslation of opening net assets are taken directly to reserves. All other translation differences are taken to the profit and loss account.

1.19

Invoice financing

The group has a debt factoring agreement in place with the bank. Due to the nature of the agreement, the risks and rewards are still retained by the group, and therefore under FRS 102, separate presentation is appropriate.

GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Estimated useful life of fixed assets (Note 12)

The directors consider the useful life of each class of fixed assets and depreciate assets in line with this judgement. Group depreciation in the year was £1,678,492 (2022 - £1,217,031).

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Haulage income
38,512,665
32,799,869
Garage income
197,815
155,691
38,710,480
32,955,560
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
31,395,513
26,140,948
Rest of the world
7,314,967
6,814,612
38,710,480
32,955,560
2023
2022
£
£
Other significant revenue
Interest income
-
45
Grants received
-
31,889
Rental income
602,035
234,648
GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
11,531
56,435
Government grants
-
(31,889)
Depreciation of owned tangible fixed assets
914,159
759,052
Depreciation of tangible fixed assets held under finance leases
764,333
457,979
Profit on disposal of tangible fixed assets
(212,021)
(141,080)
Operating lease charges
178,470
387,370
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the group and company
29,500
20,800
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management and admin
54
45
45
42
Drivers
74
76
72
70
Total
128
121
117
112

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,787,252
5,152,804
5,032,493
4,518,525
Social security costs
657,896
544,336
564,350
468,968
Pension costs
488,493
448,576
397,784
375,032
6,933,641
6,145,716
5,994,627
5,362,525
GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
169,000
166,532
Company pension contributions to defined contribution schemes
240,000
240,000
409,000
406,532

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
45
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank loans
75,302
49,559
Interest on finance leases and hire purchase contracts
54,074
46,876
Other interest
17,212
25,886
Total finance costs
146,588
122,321
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
117,222
194,294
Adjustments in respect of prior periods
(7,800)
455
Total UK current tax
109,422
194,749
Foreign current tax on profits for the current period
115,804
94,981
Total current tax
225,226
289,730
GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
2023
2022
£
£
(Continued)
- 23 -
Deferred tax
Origination and reversal of timing differences
456,456
457,316
Adjustment in respect of prior periods
10,115
-
0
Foreign exchange differences
116
1,399
Total deferred tax
466,687
458,715
Total tax charge
691,913
748,445

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,665,929
3,127,931
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
696,527
594,307
Tax effect of expenses that are not deductible in determining taxable profit
8,774
6,413
Adjustments in respect of prior years
(7,800)
455
Effect of overseas tax rates
-
0
11,561
Deferred tax adjustments in respect of prior years
10,115
-
0
Fixed asset differences
(160,212)
(57,089)
Chargeable gains/(losses)
1,577
5,320
Other tax adjustments
142,932
187,478
Taxation charge
691,913
748,445
11
Dividends
2023
2022
£
£
Ordinary dividend declared
160,000
160,000
GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2022
3,734,582
266,780
334,891
78,358
193,213
9,006,213
13,614,037
Additions
526,894
-
0
106,289
935
12,203
2,650,700
3,297,021
Disposals
(4,249)
-
0
-
0
-
0
-
0
(974,466)
(978,715)
Exchange adjustments
23,114
-
0
-
0
-
0
2,072
47,828
73,014
At 31 March 2023
4,280,341
266,780
441,180
79,293
207,488
10,730,275
16,005,357
Depreciation
At 1 April 2022
157,517
231,709
37,559
35,181
124,116
4,473,289
5,059,371
Depreciation charged in the year
84,805
-
0
72,477
12,101
32,392
1,476,717
1,678,492
Eliminated in respect of disposals
(107)
-
0
-
0
-
0
-
0
(838,886)
(838,993)
Exchange adjustments
2,307
-
0
-
0
-
0
1,386
20,395
24,088
At 31 March 2023
244,522
231,709
110,036
47,282
157,894
5,131,515
5,922,958
Carrying amount
At 31 March 2023
4,035,819
35,071
331,144
32,011
49,594
5,598,760
10,082,399
At 31 March 2022
3,577,065
35,071
297,332
43,177
69,097
4,532,924
8,554,666
GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Tangible fixed assets
(Continued)
- 25 -
Company
Freehold land and buildings
Leasehold improvements
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2022
3,103,221
266,780
334,891
78,358
138,426
7,698,277
11,619,953
Additions
526,894
-
0
106,289
935
8,415
2,630,139
3,272,672
Disposals
(4,249)
-
0
-
0
-
0
-
0
(950,742)
(954,991)
At 31 March 2023
3,625,866
266,780
441,180
79,293
146,841
9,377,674
13,937,634
Depreciation
At 1 April 2022
99,116
231,709
37,559
35,181
90,008
3,985,239
4,478,812
Depreciation charged in the year
75,157
-
0
72,477
12,101
24,557
1,308,510
1,492,802
Eliminated in respect of disposals
(107)
-
0
-
0
-
0
-
0
(815,162)
(815,269)
At 31 March 2023
174,166
231,709
110,036
47,282
114,565
4,478,587
5,156,345
Carrying amount
At 31 March 2023
3,451,700
35,071
331,144
32,011
32,276
4,899,087
8,781,289
At 31 March 2022
3,004,105
35,071
297,332
43,177
48,418
3,713,038
7,141,141

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
3,801,100
2,723,115
3,801,100
2,723,115
Depreciation charge for the year in respect of leased assets
764,333
457,979
764,333
457,979
13
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 April 2022 and 31 March 2023
1,826,365
1,826,365
GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Investment property
(Continued)
- 26 -

Investment property comprises property held for long-term rental yields. The fair value of the investment properties were recognised at their cost of acquisition taking into account the independent valuation reports obtained at the time of purchase in 2021. The directors do not consider there has been any material change in fair value since then to the balance sheet date.

 

On a historical cost basis, the properties would have been included at £1,826,365 (2022 - £1,826,365).

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
30
-
0
-
0
15,934
15,934
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost
At 1 April 2022 and 31 March 2023
15,934
Carrying amount
At 31 March 2023
15,934
At 31 March 2022
15,934
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
56,205
150,561
56,205
150,561
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,422,577
9,027,422
6,562,952
8,141,212
Corporation tax recoverable
12,416
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
101,027
70,514
Other debtors
666,029
361,025
598,953
334,215
Prepayments and accrued income
187,429
314,228
125,699
198,302
8,288,451
9,702,675
7,388,631
8,744,243

Amounts owed by group undertakings are interest free and repayable on demand.

GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
955,681
178,599
955,681
178,599
Obligations under finance leases
20
1,160,145
943,966
1,160,145
943,966
Trade creditors
3,934,988
6,397,020
3,543,113
5,343,396
Amounts due to group undertakings
-
0
-
0
102,400
108,732
Corporation tax payable
109,422
233,391
109,422
194,749
Other taxation and social security
174,014
145,146
147,625
123,040
Dividends payable
140,000
375,000
140,000
375,000
Other creditors
324,355
534,415
300,876
307,707
Amounts owed to invoice finance
-
973,620
-
973,620
Accruals and deferred income
1,218,194
574,918
1,162,306
551,555
8,016,799
10,356,075
7,621,568
9,100,364

Amounts owed on finance leases are secured against the assets to which they relate.

 

Amounts owed to invoice finance are secured against the trade debtors to which they relate.

 

Amounts due to group undertakings are interest free and repayable on demand.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
334,945
1,545,403
334,945
1,545,403
Obligations under finance leases
20
1,706,248
1,279,606
1,706,248
1,279,606
2,041,193
2,825,009
2,041,193
2,825,009

Amounts owed on finance leases are secured against the assets to which they relate.

19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,290,626
1,724,002
1,290,626
1,724,002
Payable within one year
955,681
178,599
955,681
178,599
Payable after one year
334,945
1,545,403
334,945
1,545,403

The bank loans are secured by a bond and floating charge held by the bank over the assets of the parent company and standard security over the parent company property.

GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
19
Loans and overdrafts
(Continued)
- 28 -

Part of the bank loan is repayable in monthly instalments of £10,069 (including interest) with a final bullet repayment due in March 2025. The remainder of the bank loan is repayable in monthly instalments of £4,814 (including interest) with the final bullet repayment due in October 2031. The loans attract an interest rate of 2.85% per annum over the bank's base rate.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,160,145
943,966
1,160,145
943,966
In two to five years
1,706,248
1,279,606
1,706,248
1,279,606
2,866,393
2,223,572
2,866,393
2,223,572

Finance lease payments represent rentals payable by the company or group for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
1,315,430
791,323
Short term differences
(63,880)
(6,460)
1,251,550
784,863
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
1,311,608
787,617
Short term differences
(63,880)
(6,460)
1,247,728
781,157
GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
21
Deferred taxation
(Continued)
- 29 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
784,863
781,157
Charge to profit or loss
466,571
466,571
Charge to other comprehensive income
116
-
Liability at 31 March 2023
1,251,550
1,247,728
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
488,493
448,576

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

As at 31 March 2023 included within group creditors is a pension commitment of £288,570 (2022 - £56,618).

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
40,000
40,000
40,000
40,000
24
Share based payments

During 2019, the company introduced a share option scheme for certain employees, which provides for these employees to exercise share options in the future if certain conditions are met. The exercise of these equity settled options will generally be on a sale, change of control or listing of the business. Options may also be forfeited if the employee leaves the business before the options vest. The directors consider that the value of the share options is not material to the accounts and therefore no further disclosure is included.

25
Reserves
Capital redemption reserve

The capital redemption reserve represents the par value of company shares repurchased.

GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
25
Reserves
(Continued)
- 30 -
Profit and loss reserves

The profit and loss account represents cumulative realisable profits less dividends declared.

 

Other reserves

Other reserves represent foreign exchange differences on the retranslation of net assets in the foreign subsidiary.

26
Operating lease commitments
Lessee

At the reporting end date the group and company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
118,964
178,813
76,611
141,525
Between two and five years
124,965
204,263
11,340
58,494
243,929
383,076
87,951
200,019
27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
773,350
674,963
773,350
674,963
28
Directors' transactions

Dividends totalling £160,000 (2022 - £160,000) were declared in the year in respect of shares held by the company's directors.

GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
29
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sale of goods
Purchase of goods
2023
2022
2023
2022
£
£
£
£
Group
Companies in which directors have an interest
1,206,486
973,373
7,373,847
6,603,215
Company
Companies in which directors have an interest
951,476
783,988
6,365,620
5,821,454

The following amounts were outstanding at the reporting end date:

Amounts owed to related parties
2023
2022
£
£
Group
Companies in which directors have an interest
1,557,714
2,276,823
Company
Companies in which directors have an interest
1,462,186
2,201,921

The following amounts were outstanding at the reporting end date:

Amounts owed by related parties
2023
2022
£
£
Group
Companies in which directors have an interest
248,940
307,818
Company
Companies in which directors have an interest
199,394
280,274

The company has taken advantage of exemptions under Financial Reporting Standard 102 s.33.1A not to disclose transactions with group undertakings as it is a parent company whose results are included in publicly available consolidated accounts.

Key management personnel are the same as directors, and therefore the company has taken advantage of the exemption not to disclose the remuneration of key personnel.

GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
30
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
GC Continental Logistics B.V.
Waterland 2, 1948 RK Beverwijk, The Netherlands
Road haulage
Ordinary
100
0
The aggregate capital and reserves and the profit for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit
Capital and Reserves
£
£
GC Continental Logistics B.V.
324,443
2,654,974
31
Controlling party

The company is controlled by the directors.

32
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,974,016
2,379,486
Adjustments for:
Taxation charged
691,913
748,445
Finance costs
146,588
122,321
Investment income
-
0
(45)
Gain on disposal of tangible fixed assets
(212,021)
(141,080)
Depreciation and impairment of tangible fixed assets
1,678,492
1,217,030
Movements in working capital:
Decrease/(increase) in stocks
94,356
(140,498)
Decrease/(increase) in debtors
1,617,232
(4,323,003)
(Decrease)/increase in creditors
(1,909,728)
3,569,095
Cash generated from operations
5,080,848
3,431,751
GRAMPIAN CONTINENTAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 33 -
33
Analysis of changes in net debt - group
1 April 2022
Cash flows
New finance leases
Exchange rate movements
31 March 2023
£
£
£
£
£
Cash at bank and in hand
1,354,105
353,536
-
(34,151)
1,673,490
Borrowings
(1,724,002)
433,376
-
-
(1,290,626)
Obligations under finance leases
(2,223,572)
1,614,671
(2,257,492)
-
(2,866,393)
(2,593,469)
2,401,583
(2,257,492)
(34,151)
(2,483,529)
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