Company Registration No. 06467021 (England and Wales)
SKM & SON HAULAGE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
SKM & SON HAULAGE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 10
SKM & SON HAULAGE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
45,972
92,584
Current assets
Debtors
5
197,271
195,013
Cash at bank and in hand
34,664
22,275
231,935
217,288
Creditors: amounts falling due within one year
6
(288,417)
(282,429)
Net current liabilities
(56,482)
(65,141)
Total assets less current liabilities
(10,510)
27,443
Creditors: amounts falling due after more than one year
7
(111,161)
(161,190)
Provisions for liabilities
(8,735)
-
0
Net liabilities
(130,406)
(133,747)
Capital and reserves
Called up share capital
9
100
20
Profit and loss reserves
(130,506)
(133,767)
Total equity
(130,406)
(133,747)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 7 March 2024 and are signed on its behalf by:
D Magney
Director
Company registration number 06467021 (England and Wales)
SKM & SON HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information

SKM & Son Haulage Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 17c, Askew Farm Lane, Grays, Essex, RM17 5XR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements have been prepared on a going concern basis. true

 

At the balance sheet date the companies liabilities exceeded its assets by £130,406 and the company was reliant on the continued support of its finance lenders.

 

Since the year end the directors have secured a significant trading relationship with their key customer which provides adequate resources from which the company is able to service its loans and other cash obligations.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Turnover is recognised once goods have been confirmed as received by the customer, at this point the significant risks and rewards of the transaction are considered to have transferred to the customer.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25% SL
Computers
33% SL
Motor vehicles
25% SL

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

SKM & SON HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

SKM & SON HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
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 assets 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 profit or loss 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 leases asset are consumed.

1.10
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.

SKM & SON HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.11
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

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.

Depreciation

Depreciation has been calculated using an estimate of the assets useful economic life. The useful economic life of assets is based on industry standards for assets of a similar nature adjusted for directors experience of the historic lifetime of similar assets within the business.

3
Employees

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

2023
2022
Number
Number
Total
10
15
SKM & SON HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022
239,858
Additions
4,175
At 31 March 2023
244,033
Depreciation and impairment
At 1 April 2022
147,274
Depreciation charged in the year
50,787
At 31 March 2023
198,061
Carrying amount
At 31 March 2023
45,972
At 31 March 2022
92,584
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
51,622
143,984
Other debtors
145,649
51,029
197,271
195,013
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
50,478
144,505
Trade creditors
56,524
-
0
Corporation tax
48,220
16,274
Other taxation and social security
96,708
75,058
Other creditors
36,487
46,592
288,417
282,429

Included within other creditors are amounts totalling £13,487 (2022: £41,102) that are secured on underlying assets.

SKM & SON HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
111,161
161,190
8
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
8,735
-
2023
Movements in the year:
£
Liability at 1 April 2022
-
Charge to profit or loss
8,735
Liability at 31 March 2023
8,735
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
20
100
20

During the year 80 £1 shares were issued at par to the existing Shareholders.

10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Neil Brewer
Statutory Auditor:
Rickard Luckin Limited
Date of audit report:
11 March 2024
SKM & SON HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
11
Operating lease commitments
Lessee

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

2023
2022
£
£
51,397
42,145
12
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Director 1
-
(657)
3,092
2,435
Director 2
-
(657)
101,181
100,524
(1,314)
104,273
102,959
SKM & SON HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
13
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Mar 2022
Notes
£
£
£
Current assets
Debtors due within one year
1
243,169
(48,156)
195,013
Bank and cash
2
72,275
(50,000)
22,275
Creditors due within one year
Loans and overdrafts
3
(44,435)
(100,070)
(144,505)
Taxation
4
(62,139)
(29,193)
(91,332)
Other creditors
5
(6,802)
1,312
(5,490)
Net assets
92,360
(226,107)
(133,747)
Capital and reserves
Profit and loss reserves
92,340
(226,107)
(133,767)
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 March 2022
£
£
£
Turnover
1,387,644
(42)
1,387,602
Cost of sales
(757,498)
412,047
(345,451)
Administrative expenses
(531,930)
(449,211)
(981,141)
Taxation
(16,274)
2,341
(13,933)
Profit for the financial period
98,012
(34,865)
63,147
Reconciliation of changes in equity
1 April
31 March
2021
2022
£
£
Adjustments to prior year
Prior period adjustment
-
(226,107)
Equity as previously reported
76,348
92,360
Equity as adjusted
76,348
(133,747)
Analysis of the effect upon equity
Profit and loss reserves
-
(226,107)
SKM & SON HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Prior period adjustment
(Continued)
- 10 -
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Prior period adjustment
(34,865)
Profit as previously reported
98,012
Profit as adjusted
63,147
Notes to reconciliation
Notes to reconciliation

 

1.Debtors adjustment

It was identified that a prepayments balance of £96,844 was incorrectly recognised, amounts due to the company from directors were understated by £48,688. As a result debtors due within one year were overstated by a total of £48,156.

 

2.Cash at bank

It was identified that amounts due to the company from directors totalling £50,000 had been incorrectly recognised as cash at bank. As a result cash at bank is overstated by £50,000 in the prior period.

 

3.Loans and overdrafts

It was identified that amounts due to finance lenders totalling £100,070 had not been recognised as a liability. As a result loans and overdrafts were understated by £100,070 in the prior period.

 

4.Taxation

It was identified the VAT liability was understated by £29,193 in the prior period.

 

5.Other creditors

It was identified amounts due to directors of £1,312 included within creditors should have been offset against amounts due from directors. As a result other creditors were overstated by £1,312 in the prior period.

 

2023-03-312022-04-01false11 March 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedS MagneyD Magneyfalse064670212022-04-012023-03-31064670212023-03-31064670212022-03-3106467021core:OtherPropertyPlantEquipment2023-03-3106467021core:OtherPropertyPlantEquipment2022-03-3106467021core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3106467021core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3106467021core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3106467021core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3106467021core:CurrentFinancialInstruments2023-03-3106467021core:CurrentFinancialInstruments2022-03-3106467021core:ShareCapital2023-03-3106467021core:ShareCapital2022-03-3106467021core:RetainedEarningsAccumulatedLosses2023-03-3106467021core:RetainedEarningsAccumulatedLosses2022-03-3106467021bus:Director22022-04-012023-03-3106467021core:PlantMachinery2022-04-012023-03-3106467021core:ComputerEquipment2022-04-012023-03-3106467021core:MotorVehicles2022-04-012023-03-31064670212021-04-012022-03-3106467021core:OtherPropertyPlantEquipment2022-03-3106467021core:OtherPropertyPlantEquipment2022-04-012023-03-3106467021core:WithinOneYear2023-03-3106467021core:WithinOneYear2022-03-3106467021core:Non-currentFinancialInstruments2023-03-3106467021core:Non-currentFinancialInstruments2022-03-3106467021core:ContinuingOperations2021-04-012022-03-3106467021bus:PrivateLimitedCompanyLtd2022-04-012023-03-3106467021bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3106467021bus:FRS1022022-04-012023-03-3106467021bus:Audited2022-04-012023-03-3106467021bus:Director12022-04-012023-03-3106467021bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP