REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 March 2023 |
for |
Bretts Transport Limited |
REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 March 2023 |
for |
Bretts Transport Limited |
Bretts Transport Limited (Registered number: 00348022) |
Contents of the Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 3 |
Report of the Independent Auditors | 6 |
Statement of Income and Retained Earnings | 10 |
Balance Sheet | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 15 |
Bretts Transport Limited |
Company Information |
for the Year Ended 31 March 2023 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Chartered accountants & statutory auditor |
22-26 King Street |
King's Lynn |
Norfolk |
PE30 1HJ |
Bretts Transport Limited (Registered number: 00348022) |
Strategic Report |
for the Year Ended 31 March 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
Review of business |
Overall turnover for the year ended 31 March 2023 was up by 11.55% compared to the year ended 31 March 2022. The gross margin has decreased to 10.30% (2022 - 12.42%). Together with the other Key Performance Indicators, described in the table below, these figures reflect weakness in the demand from supermarket customers arising out of the cost-of-living crisis experienced by the UK during this period. The company has accordingly sought to diversify away from the food sector. The company continues to benefit from the positive impacts of steps taken by management to recruit and retain drivers in a competitive environment. Fleet modernisation and expansion, with improved pay and conditions for drivers, has grown the business, while reducing the need for agency drivers. |
Principal risks and uncertainties |
In common with other businesses in this sector, the most significant risks and uncertainties faced by the company include customer retention and the maintenance of margins and overall profitability. The company's financial risk management objectives and policies are detailed in the Directors' Report. |
The "Brexit" transition period ended on 31 December 2020, giving rise to additional regulatory requirements for goods passing to/from the EU. We continue to work closely with our customers and subcontractors to mitigate any negative impacts and consequently, there has been minimal disruption in delivery and supply chains. |
Key performance indicators |
2023 | 2022 | 2021 |
Turnover (£'000s) | 15,959 | 14,306 | 6,008 |
Gross Profit Margin (%) | 10.30 | 12.42 | 1.27 |
Operating Margin (%) | 2.27 | 4.88 | N/A |
Current Ratio | 0.99 | 0.99 | 0.91 |
Total Liabilities/Shareholders' Funds | 12.06 | 12.36 | 26.77 |
On behalf of the board: |
Bretts Transport Limited (Registered number: 00348022) |
Directors' Report |
for the Year Ended 31 March 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
Principal activity |
The principal activity of the company in the year under review was that of the provision of haulage and distribution services. |
Dividends |
An interim dividend of £ |
The total distribution of dividends for the year ended 31 March 2023 will be £ |
Future developments |
The business will continue to look for complimentary opportunities going forward, whilst respecting the value of its long-term customer base. As noted in the Strategic Report, the company is diversifying away from the food sector to develop a wider range of customers. The continuing investment in our vehicle fleet and warehousing facilities will allow us to continue to provide all customers with the complete logistics solution that the current marketplace demands. |
Directors |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
Bretts Transport Limited (Registered number: 00348022) |
Directors' Report |
for the Year Ended 31 March 2023 |
Financial instruments |
The company uses various financial instruments, including bank overdrafts, finance leases and cash, and items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations and capital projects. |
The existence of these financial instruments exposes the company to a number of financial risks which are described in more detail below. The main risks arising from the company's financial instruments are credit risk, liquidity risk and interest rate risk. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous years. |
Liquidity Risk: |
The company manages its cash and borrowing requirements in order to minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business, including the requirement to effectively fund capital expenditure arising out of the development of the business. |
Interest rate risk: |
The company is exposed to cash flow interest rate risk on bank invoice discounting accounts. |
Foreign currency risk: |
The company carries out all of its business in Sterling, and accordingly is not exposed to risk arising from currency fluctuations. |
Credit risk: |
The company is exposed to credit risk on both its investments and debtors. |
Investments of cash surpluses are made through banks which must fulfil credit rating criteria approved by the Board. |
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments. |
Disclosure of information in the strategic report |
In accordance with the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, the review of the development and performance of the business, including key performance indicators, is now contained in the Strategic Report on page 2. |
Bretts Transport Limited (Registered number: 00348022) |
Directors' Report |
for the Year Ended 31 March 2023 |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Directors' 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Auditors |
The auditors, Stephenson Smart (East Anglia) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Bretts Transport Limited |
Opinion |
We have audited the financial statements of Bretts Transport Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors 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 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. |
Report of the Independent Auditors to the Members of |
Bretts Transport Limited |
Opinions on other matters 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 the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or 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 five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Bretts Transport Limited |
Auditors' 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 a Report of the Auditors 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. |
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of those discussions and enquires were shared with the team, as well as consideration as to where and how fraud may occur in the entity. |
The following laws and regulations were identified as being of significance to the entity: |
a) Those laws and regulations considered to have a direct effect on the financial statements include UK Financial Reporting Standards, Company Law, tax and pensions legislation and distributable profits legislation. |
b) Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include health and safety legislation, and road transport legislation and regulations dealing with motor vehicles condition and safety, the licencing of hauliers and Working Time practices. |
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls; and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Bretts Transport Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered accountants & statutory auditor |
22-26 King Street |
King's Lynn |
Norfolk |
PE30 1HJ |
Bretts Transport Limited (Registered number: 00348022) |
Statement of Income and Retained Earnings |
for the Year Ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
Turnover | 4 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
(142,711 | ) | 416,040 |
Other operating income | 5 |
Operating profit | 7 |
Interest receivable and similar income |
377,731 | 712,469 |
Interest payable and similar expenses | 8 | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 9 |
Profit for the financial year |
Retained earnings at beginning of year |
Dividends | 10 | ( |
) | ( |
) |
Retained earnings at end of year |
Bretts Transport Limited (Registered number: 00348022) |
Balance Sheet |
31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
Fixed assets |
Tangible assets | 11 |
Current assets |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
Net assets |
Capital and reserves |
Called up share capital | 19 |
Retained earnings | 20 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
Bretts Transport Limited (Registered number: 00348022) |
Cash Flow Statement |
for the Year Ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Government grants |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(2,576,234 |
) |
(1,945,504 |
) |
Cash and cash equivalents at end of year | 2 | ( |
) | ( |
) |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Cash Flow Statement |
for the Year Ended 31 March 2023 |
1. | Reconciliation of profit before taxation to cash generated from operations |
31.3.23 | 31.3.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Government grants | ( |
) | ( |
) |
Finance costs | 218,394 | 81,966 |
Finance income | (15,320 | ) | (14,123 | ) |
1,126,342 | 1,160,039 |
(Increase)/decrease in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | Cash and cash equivalents |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 146,749 | 121,745 |
Bank overdrafts | ( |
) | ( |
) |
(1,941,261 | ) | (2,576,234 | ) |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 121,745 | 2,369 |
Bank overdrafts | ( |
) | ( |
) |
(2,576,234 | ) | (1,945,504 | ) |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Cash Flow Statement |
for the Year Ended 31 March 2023 |
3. | Analysis of changes in net debt |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 121,745 | 25,004 | 146,749 |
Bank overdrafts | (2,697,979 | ) | 609,969 | (2,088,010 | ) |
(2,576,234 | ) | (1,941,261 | ) |
Debt |
Finance leases | (3,682,315 | ) | (672,109 | ) | (4,354,424 | ) |
(3,682,315 | ) | (672,109 | ) | (4,354,424 | ) |
Total | (6,258,549 | ) | (37,136 | ) | (6,295,685 | ) |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements |
for the Year Ended 31 March 2023 |
1. | Statutory information |
Bretts Transport Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Statement of compliance |
3. | Accounting policies |
Basis of preparing the financial statements |
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in Sterling, which is the functional currency of the entity. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are in respect of the applicable rates of depreciation of tangible fixed assets. |
Turnover |
The turnover shown in the profit and loss account represents amounts invoiced and accrued during the year, exclusive of discounts, rebates and Value Added Tax. Revenue is recognised upon the performance of contracted services, ie: upon delivery of goods transported. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are initially recorded at cost and subsequently stated at cost less any accumulated depreciation and impairment losses. |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | Accounting policies - continued |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. |
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. |
Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | Accounting policies - continued |
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. |
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. 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 entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | Accounting policies - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. |
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
4. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.3.23 | 31.3.22 |
£ | £ |
An analysis of turnover by geographical market is given below: |
31.3.23 | 31.3.22 |
£ | £ |
United Kingdom |
Europe |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
5. | Other operating income |
31.3.23 | 31.3.22 |
£ | £ |
Rents received |
Equipment leased |
Management charges receivable |
Government grants |
505,122 | 282,306 |
Government grants comprise £0 (2022: £25,552), received under the Coronavirus Job Retention Scheme and £3,165 (2022: £48,411), received under the Business Interruption Payment Scheme. |
6. | Employees and directors |
31.3.23 | 31.3.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.3.23 | 31.3.22 |
Drivers | 89 | 85 |
Warehouse and workshop staff | 5 | 4 |
Management and administrative staff | 28 | 25 |
31.3.23 | 31.3.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director for the year ended 31 March 2023 is as follows: |
31.3.23 |
£ |
Emoluments etc |
Pension contributions to money purchase schemes |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
7. | Operating profit |
The operating profit is stated after charging/(crediting): |
31.3.23 | 31.3.22 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
8. | Interest payable and similar expenses |
31.3.23 | 31.3.22 |
£ | £ |
Bank loan interest |
Hire purchase interest |
9. | Taxation |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
31.3.23 | 31.3.22 |
£ | £ |
Deferred tax | ( |
) |
Tax on profit | ( |
) |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
9. | Taxation - continued |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.23 | 31.3.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses |
Other timing differences | 456 | - |
Total tax credit | - | (30,530 | ) |
10. | Dividends |
31.3.23 | 31.3.22 |
£ | £ |
Ordinary shares of £1 each |
Interim |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | Tangible fixed assets |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
Depreciation |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
Net book value |
At 31 March 2023 |
At 31 March 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
Cost |
At 1 April 2022 |
Additions |
At 31 March 2023 |
Depreciation |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
Net book value |
At 31 March 2023 |
At 31 March 2022 |
12. | Stocks |
31.3.23 | 31.3.22 |
£ | £ |
Raw materials |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
13. | Debtors |
31.3.23 | 31.3.22 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Tax |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
14. | Creditors: amounts falling due within one year |
31.3.23 | 31.3.22 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Social security and other taxes |
VAT | 53,497 | 231,357 |
Other creditors |
Accrued expenses |
15. | Creditors: amounts falling due after more than one year |
31.3.23 | 31.3.22 |
£ | £ |
Hire purchase contracts (see note 17) |
16. | Loans |
An analysis of the maturity of loans is given below: |
31.3.23 | 31.3.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
17. | Leasing agreements |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.3.23 | 31.3.22 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
The company has entered into a number of significant finance lease contracts. The most significant were as follows: |
Balance 31.03.23 Due within 1 year Interest rate |
Contract no. 1 - vehicle purchases £471,474 £142,559 3.16% |
Contract no. 2 - vehicle purchases £321,937 £ 94,487 3.16% |
Contract no. 3 - vehicle purchases £359,351 £ 91,727 3.16% |
Contract no. 4 - Trailer purchases £501,724 £ 111,871 4.99% |
Contract no. 5 - Trailer purchases £344,717 £105,566 4.57% |
Contract no. 6 - vehicle purchases £623,986 £189,857 3.69% |
Non-cancellable |
operating leases |
31.3.23 | 31.3.22 |
£ | £ |
Within one year |
Between one and five years |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
18. | Secured debts |
The following secured debts are included within creditors: |
31.3.23 | 31.3.22 |
£ | £ |
Bank overdrafts |
Hire purchase contracts | 4,354,424 | 3,682,315 |
Overdrafts are secured by way of a fixed and floating charge over all property and assets, present and future. The overdraft is in respect of sums advanced under an Invoice Discounting facility. Liabilities relating to finance leases and hire purchase contracts are secured on the assets concerned. |
19. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.23 | 31.3.22 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
20. | Reserves |
Retained |
earnings |
£ |
At 1 April 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2023 |
Profit and loss account - This reserve records distributable retained earnings and accumulated losses. |
Bretts Transport Limited (Registered number: 00348022) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
21. | Related party disclosures |
During the year, Bretts Transport Limited has conducted transactions with a partnership in which Mr S C Brett is a partner: |
2023 | 2022 |
Trade sales | 272,553 | 37,006 |
Amount included in trade debtors | 2,189,192 | 1,833,049 |
Amount included in trade creditors | 5,361 | 5,361 |
Management charge to partnership | 460,000 | 160,000 |
Rent of equipment to partnership | 41,957 | 46,843 |
Expenses recharged (by)/to partnership | (3,749 | ) | (5,831 | ) |
Interest on loan (see below) | 14,400 | 14,400 |
The company has shared use of premises with the partnership, which are owned by the partnership. No rent is charged in respect of these premises. |
During 2013, the company loaned the partnership £492,070 towards the construction of a new warehouse at the site from which both businesses trade. The loan was agreed on a commercial basis. Interest is calculated at 3%. |
At the balance sheet date, the amount outstanding on the loan, which is included in other (long-term) debtors, was £464,922 (2022: £450,522). |
During 2019, a loan was advanced by the partnership to Bretts Transport Limited. The balance owing to the partnership at the balance sheet date, net of recharged expenses, included in other creditors, was £1,241,953 (2022: £982,625). |
22. | Ultimate controlling party |
The controlling party is Mr S C Brett. |