Company registration number 02750764 (England and Wales)
LAWSONS HAULAGE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
LAWSONS HAULAGE LIMITED
COMPANY INFORMATION
Directors
Miss P Lawson
Mr RJ Lawson
Company number
02750764
Registered office
Gote Mill House
Gote Road
Cockermouth
Cumbria
CA13 0JQ
Auditor
Gibbons
Carleton House
136 Gray Street
Workington
Cumbria
CA14 2LU
LAWSONS HAULAGE LIMITED
CONTENTS
Page
Strategic report
3
Directors' report
1 - 2
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
LAWSONS HAULAGE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -
The directors present their annual report and financial statements for the year ended 30 September 2023.
Principal activities
The principal activity of the company continued to be that of haulage and plant hire.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £14,582. The directors recommend payment of a final dividend amounting to £163,800.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Miss P Lawson
Mr RJ Lawson
Financial instruments
The company uses various financial instruments which include hire purchase agreements and bank loans. The main purpose of these financial instruments is to raise finance for the company's operations and to thereby facilitate growth of the company. The company aims to ensure that they are in the best possible position to take advantage of all business opportunities as they arise.
Loans comprise of loans from a director and from financial institutions. The company manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.
Future developments
In the next financial year the directors believe that the company will trade profitably and produce results which compare favourably to previous years.
Auditor
The auditor, Gibbons, Chartered Accountants and Statutory Auditors, 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 company’s auditor 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 company’s auditor is aware of that information.
Going concern
The financial statements have been prepared on a going concern basis.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
LAWSONS HAULAGE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
On behalf of the board
Mr RJ Lawson
Director
9 April 2024
LAWSONS HAULAGE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
The directors present the strategic report for the year ended 30 September 2023.
Review of the business
The company has traded profitably in the year. The directors believe that the company will continue to trade profitably and will continue to monitor its operations and take advantage of business opportunities as they arise.
The company's key financial and other performance indicators during the year were as follows:
The company can manage its affairs with the above basic KPIs and no other KPIs are relevant to business decisions.
Principal risks and uncertainties
The company is not immune to risks and has procedures in place aimed to minimise the occurrence and scale of specific risks that may impact the company. The directors are involved in the day to day running of the company and believe new risks that arise can be easily identified. A principle risk to the company is its dependence on key customers.
Development and performance
The company continues to take advantage of business opportunities as they arise. The directors are happy that the company has sufficient resources to take advantage of business opportunities as they arise, and that the company is able to adapt to change.
The company has had a successful year and turnover has grown by 10%. Directors are managing to maintain gross profit margins, even with the rising cost of fuel.
Mr RJ Lawson
Director
9 April 2024
LAWSONS HAULAGE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
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 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.
LAWSONS HAULAGE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LAWSONS HAULAGE LIMITED
- 5 -
Qualified opinion on financial statements
We have audited the financial statements of Lawsons Haulage Limited (the 'company') for the year ended 30 September 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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, except for the possible effects on the corresponding figures of the matter described in the basis for qualified opinion section of our report, the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 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 qualified opinion
The prior year audit report contained a qualified opinion as the previous auditors were unable to obtain sufficient and appropriate evidence to support the completeness of creditors and the corresponding occurrence of expenses; and, as such were unable to determine whether any adjustment to trade creditors and expenses was necessary for the year ended 30 September 2021. Consequentially, they were unable to determine the effect on the profit and loss expenses in the year ended 30 September 2022.
Our audit opinion on the financial statements for the current periods financial statements is also modified because of the possible effects of this matter on the comparability of the current periods figures and the corresponding figures.
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's 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.
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.
LAWSONS HAULAGE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF LAWSONS HAULAGE LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our 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 in relation to which 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 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 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated with the audit team and the team remained alert to instances of non-compliance throughout the audit.
LAWSONS HAULAGE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF LAWSONS HAULAGE LIMITED
- 7 -
We assessed the susceptibility of the company's financial statements to material misstatements including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company's remuneration policies.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management and those charged with governance as to actual and potential litigation and claims;
enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; and
reviewing correspondence.
In response to the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
David Harper
Senior Statutory Auditor
For and on behalf of Gibbons
15 April 2024
Chartered Accountants
Statutory Auditor
Carleton House
136 Gray Street
Workington
Cumbria
CA14 2LU
LAWSONS HAULAGE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
as restated
Notes
£
£
Turnover
3
9,608,781
8,736,333
Cost of sales
(8,762,382)
(7,864,806)
Gross profit
846,399
871,527
Administrative expenses
(584,187)
(425,857)
Other operating income
35,514
21,141
Operating profit
4
297,726
466,811
Interest receivable and similar income
8
29,499
586
Interest payable and similar expenses
9
(92,429)
(95,273)
Profit before taxation
234,796
372,124
Tax on profit
10
85,402
(159,874)
Profit for the financial year
320,198
212,250
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LAWSONS HAULAGE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
2023
2022
as restated
£
£
Profit for the year
320,198
212,250
Other comprehensive income
-
-
Total comprehensive income for the year
320,198
212,250
LAWSONS HAULAGE LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
4,719,808
5,366,869
Investment property
13
88,297
88,297
4,808,105
5,455,166
Current assets
Stocks
14
71,401
69,926
Debtors
15
3,081,838
3,286,914
Cash at bank and in hand
2,517,777
1,651,971
5,671,016
5,008,811
Creditors: amounts falling due within one year
16
(2,179,132)
(2,017,881)
Net current assets
3,491,884
2,990,930
Total assets less current liabilities
8,299,989
8,446,096
Creditors: amounts falling due after more than one year
17
(567,086)
(960,063)
Provisions for liabilities
Deferred tax liability
20
922,229
980,975
(922,229)
(980,975)
Net assets
6,810,674
6,505,058
Capital and reserves
Called up share capital
22
262,500
262,500
Share premium account
37,500
37,500
Profit and loss reserves
6,510,674
6,205,058
Total equity
6,810,674
6,505,058
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 9 April 2024 and are signed on its behalf by:
Miss P Lawson
Mr RJ Lawson
Director
Director
Company registration number 02750764 (England and Wales)
LAWSONS HAULAGE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 30 September 2022:
Balance at 1 October 2021
262,500
37,500
6,171,064
6,471,064
Year ended 30 September 2022:
Profit and total comprehensive income
-
-
212,250
212,250
Dividends
11
-
-
(178,256)
(178,256)
Balance at 30 September 2022
262,500
37,500
6,205,058
6,505,058
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
320,198
320,198
Dividends
11
-
-
(14,582)
(14,582)
Balance at 30 September 2023
262,500
37,500
6,510,674
6,810,674
LAWSONS HAULAGE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
2,226,955
1,039,684
Interest paid
(92,429)
(95,273)
Income taxes refunded/(paid)
6,458
(109,872)
Net cash inflow from operating activities
2,140,984
834,539
Investing activities
Purchase of tangible fixed assets
(284,874)
(1,061,734)
Proceeds from disposal of tangible fixed assets
90,333
495,500
Repayment of loans
(278,308)
61,504
Interest received
29,499
586
Net cash used in investing activities
(443,350)
(504,144)
Financing activities
Payment of finance leases obligations
(817,246)
(37,082)
Dividends paid
(14,582)
(178,256)
Net cash used in financing activities
(831,828)
(215,338)
Net increase in cash and cash equivalents
865,806
115,057
Cash and cash equivalents at beginning of year
1,651,971
1,536,914
Cash and cash equivalents at end of year
2,517,777
1,651,971
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
1
Accounting policies
Company information
Lawsons Haulage Limited is a private company limited by shares incorporated in England and Wales. The registered office is Gote Mill House, Gote Road, Cockermouth, Cumbria, CA13 0JQ.
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 company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention as modified by the revaluation of investment property . The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold buildings
4% straight line
Plant and equipment
10% straight line
Fixtures and fittings
10% straight line
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
Investment property
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.
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.6
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand.
1.9
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.
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 company 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and finance leases, 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.
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
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.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Haulage
6,832,190
6,603,106
Plant hire
2,775,221
2,106,474
Farm supplies
-
7,037
Other sales
1,370
19,716
9,608,781
8,736,333
2023
2022
£
£
Other revenue
Interest income
29,499
586
All turnover is generated in the United Kingdom.
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 18 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
1,062
46
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
20,145
Depreciation of owned tangible fixed assets
1,133,476
1,107,916
Loss/(profit) on disposal of tangible fixed assets
3,774
(392,711)
Operating lease charges
17,197
9,000
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,000
20,145
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Distribution
54
54
Administration
12
12
Total
66
66
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,423,744
2,915,994
Social security costs
335,592
317,408
Pension costs
113,285
101,530
3,872,621
3,334,932
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 19 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
23,329
18,301
Company pension contributions to defined contribution schemes
25,289
25,280
48,618
43,581
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
21,288
Other interest income
8,211
586
Total income
29,499
586
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
21,288
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
4,523
2,701
Dividends on redeemable preference shares not classified as equity
2,000
2,000
6,523
4,701
Other finance costs:
Interest on finance leases and hire purchase contracts
85,906
90,572
92,429
95,273
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
103,867
13,416
Adjustments in respect of prior periods
(130,523)
Total current tax
(26,656)
13,416
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
10
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
(58,746)
146,458
Total tax (credit)/charge
(85,402)
159,874
The actual (credit)/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
234,796
372,124
Expected tax charge based on the standard rate of corporation tax in the UK of 22.00% (2022: 19.00%)
51,655
70,704
Tax effect of expenses that are not deductible in determining taxable profit
(6,229)
1,593
Tax effect of utilisation of tax losses not previously recognised
(22,969)
82,941
Adjustments in respect of prior years
(130,523)
Permanent capital allowances in excess of depreciation
(9,787)
Depreciation on assets not qualifying for tax allowances
2,794
Fixed asset timing differences
29,657
(4,322)
Other timing differences leading to an increase (decrease) in the tax charge
8,958
Taxation (credit)/charge for the year
(85,402)
159,874
11
Dividends
2023
2022
£
£
Interim paid
14,582
178,256
The proposed final dividend for the year ended 30 September 2023 is:
2023
2022
Per share
Total
Total
£
£
£
Ordinary shares
0.62
163,800
The proposed final dividend is subject to approval by shareholders and has not been included as a liability in these financial statements.
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
12
Tangible fixed assets
Freehold buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 October 2022
346,571
14,320,363
70,518
14,737,452
Additions
13,006
567,516
580,522
Disposals
(808,267)
(808,267)
At 30 September 2023
359,577
14,079,612
70,518
14,509,707
Depreciation and impairment
At 1 October 2022
204,047
9,110,307
56,229
9,370,583
Depreciation charged in the year
13,018
1,117,854
2,604
1,133,476
Eliminated in respect of disposals
(714,160)
(714,160)
At 30 September 2023
217,065
9,514,001
58,833
9,789,899
Carrying amount
At 30 September 2023
142,512
4,565,611
11,685
4,719,808
At 30 September 2022
142,524
5,210,056
14,289
5,366,869
The net book value of assets held under finance leases or hire purchase contracts included above are £2,148,623 (2022 - £4,182,569)
13
Investment property
2023
£
Fair value
At 1 October 2022 and 30 September 2023
88,297
There has been no valuation of investment property by an independent valuer.
14
Stocks
2023
2022
£
£
Finished goods and goods for resale
71,401
69,926
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,804,761
2,248,843
Corporation tax recoverable
76,239
Other debtors
869,196
535,159
Prepayments and accrued income
331,642
502,912
3,081,838
3,286,914
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
19
599,948
728,569
Trade creditors
672,008
652,583
Corporation tax
106,862
50,821
Other taxation and social security
255,250
260,657
Other creditors
295,405
180,518
Accruals and deferred income
249,659
144,733
2,179,132
2,017,881
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
19
403,086
796,063
Other borrowings
18
164,000
164,000
567,086
960,063
18
Loans and overdrafts
2023
2022
£
£
Preference shares
100,000
100,000
Other loans
64,000
64,000
164,000
164,000
Payable after one year
164,000
164,000
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 23 -
19
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
599,948
728,569
In two to five years
403,086
796,063
1,003,034
1,524,632
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. 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.
20
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
922,229
980,975
2023
Movements in the year:
£
Liability at 1 October 2022
980,975
Credit to profit or loss
(58,746)
Liability at 30 September 2023
922,229
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
113,285
101,530
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
262,500
262,500
262,500
262,500
262,500
262,500
262,500
262,500
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
2% Preference shares of £1 each
100,000
100,000
100,000
100,000
Preference shares classified as liabilities
100,000
100,000
23
Related party transactions
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
219,495
217,570
The loan is interest free
24
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
Directors loan account 1
2.12
10,963
124,309
1,685
136,957
Directors loan account 2
2.12
226,085
152,999
6,526
385,610
237,048
277,308
8,211
522,567
25
Ultimate controlling party
The company is a wholly owned subsidiary of Sametimetomorrow Limited.
There is no ultimate controlling party.
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 25 -
26
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
320,198
212,250
Adjustments for:
Taxation (credited)/charged
(85,402)
159,874
Finance costs
92,429
95,273
Investment income
(29,499)
(586)
Loss/(gain) on disposal of tangible fixed assets
3,774
(392,711)
Depreciation and impairment of tangible fixed assets
1,133,476
1,107,916
Movements in working capital:
Increase in stocks
(1,475)
(46,256)
Decrease/(increase) in debtors
566,834
(260,477)
Increase in creditors
226,620
164,401
Cash generated from operations
2,226,955
1,039,684
27
Analysis of changes in net funds/(debt)
1 October 2022
Cash flows
New finance leases
30 September 2023
£
£
£
£
Cash at bank and in hand
1,651,971
865,806
-
2,517,777
Borrowings excluding overdrafts
(164,000)
-
-
(164,000)
Obligations under finance leases
(1,524,632)
817,246
(295,648)
(1,003,034)
(36,661)
1,683,052
(295,648)
1,350,743
28
Prior period adjustment
Some expenditure items in the comparative figures have been relocated between cost of sales and administrative expenses. There has been no effect on the profits for the period or the balance sheet.
Changes to the balance sheet
Adjustment
£
Net assets
-
Capital and reserves
Total equity
-
LAWSONS HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
28
Prior period adjustment
(Continued)
- 26 -
Changes to the profit and loss account
Adjustment
Period ended 30 September 2022
£
Cost of sales
342,017
Administrative expenses
(342,017)
Profit for the financial period
-
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