Company registration number 04225931 (England and Wales)
CARTEL LOGISTICS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
CARTEL LOGISTICS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
CARTEL LOGISTICS LIMITED
BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,775,353
1,551,292
Current assets
Debtors
5
134,360
168,972
Cash at bank and in hand
4,142
950
138,502
169,922
Creditors: amounts falling due within one year
6
(386,904)
(267,949)
Net current liabilities
(248,402)
(98,027)
Total assets less current liabilities
1,526,951
1,453,265
Creditors: amounts falling due after more than one year
7
(500,351)
(542,770)
Provisions for liabilities
(1,367)
(19,666)
Net assets
1,025,233
890,829
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
1,025,231
890,827
Total equity
1,025,233
890,829
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
CARTEL LOGISTICS LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2023
31 May 2023
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 12 February 2024
T Gallagher
Director
Company registration number 04225931 (England and Wales)
CARTEL LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
1
Accounting policies
Company information
Cartel Logistics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1, Westport Business Park, Viscount Industrial Estate, Horton road, Colnbrook, SL3 0DF.
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
These financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. The validity of this assumption is dependent upon the continued support from the director and a related company. true
The company has received assurances from director and related company that existing liabilities will not be called upon until Cartel Logistics Limited is in a position to repay them. In addition, indications have been given that continued funding will be provided to support Cartel Logistics Limited for the foreseeable future and to enable it to meet its day-to-day commitments from cash flows.
As a consequence, the director believes that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. In view of the above, and at the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
If the company were unable to trade, adjustments would have to be made to reclassify fixed assets as current assets and to reclassify long term creditors as current liabilities, and to provide for further liabilities that might arise.
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 on the provision of the limousine hire service.
CARTEL LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 4 -
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:
Land and buildings Freehold
2% on cost
Fixtures, fittings & equipment
15% Reducing balance
Motor vehicles
25% Reducing Balance.
Freehold land is not depreciated.
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
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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.
1.7
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.
CARTEL LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 5 -
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.
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.
1.8
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Recoverability of intercompany balances
Management regularly review intercompany balances for recoverability.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
1
1
CARTEL LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 6 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 June 2022
1,442,294
398,952
1,841,246
Additions
481,103
481,103
Disposals
(235,793)
(235,793)
At 31 May 2023
1,442,294
644,262
2,086,556
Depreciation and impairment
At 1 June 2022
107,676
182,278
289,954
Depreciation charged in the year
16,966
59,454
76,420
Eliminated in respect of disposals
(55,171)
(55,171)
At 31 May 2023
124,642
186,561
311,203
Carrying amount
At 31 May 2023
1,317,652
457,701
1,775,353
At 31 May 2022
1,334,618
216,674
1,551,292
There is a First legal Mortgage over the freehold land and buildings. The freehold land and buildings have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity, until the charge has been satisfied.
Certain motor vehicles have been pledged to secure finance lease borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity until the liability is settled.
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
7,809
2,033
Other debtors
126,551
166,939
134,360
168,972
CARTEL LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 7 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
36,752
52,205
Trade creditors
8,789
1,326
Taxation and social security
49,764
48,760
Other creditors
291,599
165,658
386,904
267,949
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
453,255
478,124
Other creditors
47,096
64,646
500,351
542,770
During 2021 the company obtained a Government backed Bounce Back Loan from its bankers. The loan is repayable over 6 years from December 2021. The loan is unsecured and interest is payable at the rate of 2.5% per annum.
Bank loans and overdrafts falling due within and after more than one year amounting to £454,321 (2022: £485,244) and hire purchase obligations included in other creditors falling due within and after more than one year amounting to £31,750 (2022: £71,607), are secured.
The bank loans and overdrafts were secured by
(1) A registered charge in the form of a Legal Mortgage dated 6 September 2016, in favour of the company's bankers, AIB Group (UK) Plc. This comprises fixed and floating charges over all property or undertakings of the company, present and future. The Legal Mortgage contains a negative pledge.
(2) A registered charge in the form of a Mortgage Debenture dated 10 November 2003, in favour of the company's bankers, AIB Group (UK) Plc. This comprises a fixed and floating charge over the undertaking and present and future assets of the company.
(3) Personal guarantees from director, T Gallagher up to the amount of the outstanding loan secured over certain personal assets.
The hire purchase obligations were secured on the assets financed.
8
Financial commitments, guarantees and contingent liabilities
To provide additional security for the bank loan taken out during the financial year 2017 to acquire the freehold land and buildings, the company has entered into an unlimited cross-company guarantee with a related company controlled by the sole director, in favour of the company's bankers, AIB (UK) Plc.