Company registration number 12253218 (England and Wales)
DAYSHIP LOGISTICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
LB GROUP
1 Vicarage Lane
Stratford
London
E15 4HF
DAYSHIP LOGISTICS LIMITED
COMPANY INFORMATION
Director
Mr R Munday
Company number
12253218
Registered office
Number One
1 Vicarage Lane
Stratford
London
E15 4HF
Auditor
LB Group Limited (Stratford)
1 Vicarage Lane
Stratford
London
E15 4HF
Bankers
HSBC UK plc
59-61 The Mall
Stratford Centre
Stratford
London
E15 1XF
Clydesdale Bank plc
30 St Vincent Street
Glasgow
Scotland
G1 2HL
DAYSHIP LOGISTICS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Group profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 33
DAYSHIP LOGISTICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

The director presents the strategic report for the year ended 31 July 2023.

Review of the business

The results for the year and the financial position at the yearend were considered strong by the directors within the current climate of the global economy.

 

The directors consider turnover, net gross profit, net gross profit margin, employees and net profits before tax to be the key measures of financial performance.

 

31 July 2023     31 July 2022 % Change

 

Turnover            £45.78m        £86.29m        down 46.9%

 

Gross Profit            £11.83m        £18.27m        down 35.25%

 

Gross Profit Margin (%)        25.84%        21.18%        

 

Profit Before Tax            £4.48m        £12.38m        down 63.81%

 

Net Assets            £12.89m        £10.30m        up 25.15%

 

Employees            60        55        up 9.09%    

 

 

Looking ahead to the year ended 31 July 2024 the group have continued to trade positively. Consumer demand is high and in turn generating high monthly turnover and a strong gross profit and cash generation. There has been a favourable movement in foreign exchange in relation to overseas trade further boosting cash reserves. With this strong position the owner and Director of the business believe that the group is in a strong position to further solidify its position in the UK and worldwide freight business.

Principal risks and uncertainties

The main risks and uncertainties relating to the group are based on the wider economic client and freight rates based on global geopolitics. The company continues to ensure that the business and trade is robust in relation to these uncertainties and continually assesses and reviews its business model accordingly.

Statement by the directors relating to their statutory duties under s172(1) Companies Act 2006

During the year the directors consider, both individually and collectively, that, in the decisions taken during the financial year, they have satisfied the requirements of s1722(1) of the Companies Act 2006 in acting in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its' members as a whole and in doing so having regard to the stakeholders and matters outlined in s172(1).

 

Long term plan

The Board considers the interest of a range of stakeholders impacted by our business and recognises that valuable stakeholder engagement underpins our ability to achieve our purpose and strategic aim. Key stakeholder relationships are regularly reviewed, including how we engage with them and whether any improvements can be made. The relevance of each stakeholder group will depend on the particular mater requiring Board decision.

 

The key strategic decisions for the Board during the year relate to long term growth and the development of next generation products, partnerships and offerings.

 

Employees

The Group strategy is to attract, retain, develop and promote the best people through communication, inclusion, management and leadership, rewards and remuneration, training and development, teamwork, working conditions, values and behaviour.

 

There are specific and segregated levels of communication that ensures appropriate levels are engaged with the Group's employees.

DAYSHIP LOGISTICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 2 -
Customer care

The Group understands that engagement, through listening, understanding and responding to customers and prospective customers, is critical to long term success. The directors regularly engage with customers through user group meetings and customer satisfaction surveys.

Suppliers and other stakeholders

The Group success and reputation is intrinsically linked to its relationship with its partners and suppliers. The directors seek to maintain and develop strong, open collaborative and positive relationship with our advisers, suppliers and subcontractors.

 

Shareholders and other stakeholders

As a privately owned business with a small group of shareholders but one ultimate controlling shareholder, the board are keen to understand and meet the objectives of the ultimate shareholder and reflecting these where possible when developing the company's long-term plan.

 

The directors maintain regular and open relationship and group updates with other stakeholders such as banks and funders, insurers, auditors, HMRC and government.

 

The Group plans, strategyy and policies have been considered by the directors to ensure the Group maintains the highest standards of business conduct.

On behalf of the board

Mr R Munday
Director
28 March 2024
DAYSHIP LOGISTICS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 July 2023.

Principal activities

The principal activity of the group during the year was that of providing Logistics solutions by sea, air & land together with Hotel Hospitality Logistics and the principal activity of the parent was that of a dormant holding company.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £935,000. The director does not recommend payment of a further dividend.

Director

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

Mr R Munday
Auditor

The auditor, LB Group Limited (Stratford), is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Streamline energy and carbon reporting

As the trade and main activities of Dayship Logistics Limited are based outside of UK jurisdiction, less than 40,000kWh of energy has been consumed during the year in the UK. Consequently, the Group and company qualify as low energy users and are exempt from making further disclosures.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr R Munday
Director
28 March 2024
DAYSHIP LOGISTICS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2023
- 4 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DAYSHIP LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DAYSHIP LOGISTICS LIMITED
- 5 -
Opinion

We have audited the financial statements of Dayship Logistics Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

DAYSHIP LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DAYSHIP LOGISTICS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

DAYSHIP LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DAYSHIP LOGISTICS LIMITED
- 7 -
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 the audit was considered capable of detecting irregularities including fraud

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:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

DAYSHIP LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DAYSHIP LOGISTICS LIMITED
- 8 -

There are inherent limitations in our audit procedures described above. The more removed that laws and

regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations

to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they

may involve deliberate concealment or collusion.

 

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Lane (Senior Statutory Auditor)
For and on behalf of LB Group Limited (Stratford)
28 March 2024
Chartered Accountants
Statutory Auditor
1 Vicarage Lane
Stratford
London
E15 4HF
DAYSHIP LOGISTICS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
2023
2022
Notes
£'000
£'000
Turnover
3
45,779
86,291
Cost of sales
(33,954)
(68,018)
Gross profit
11,825
18,273
Administrative expenses
(7,381)
(5,892)
Operating profit
4
4,444
12,381
Interest receivable and similar income
7
93
-
0
Fair value adjustment
8
(61)
-
Profit before taxation
4,476
12,381
Tax on profit
9
(1,032)
(2,606)
Profit for the financial year
3,444
9,775
Profit for the financial year is all attributable to the owner of the parent company.
DAYSHIP LOGISTICS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
- 10 -
2023
2022
£'000
£'000
Profit for the year
3,444
9,775
Other comprehensive income
-
-
Total comprehensive income for the year
3,444
9,775
Total comprehensive income for the year is all attributable to the owners of the parent company.
DAYSHIP LOGISTICS LIMITED
GROUP BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 11 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Goodwill
11
2,755
3,148
Tangible assets
12
730
433
3,485
3,581
Current assets
Debtors
15
10,362
12,697
Cash at bank and in hand
6,958
12,091
17,320
24,788
Creditors: amounts falling due within one year
16
(7,587)
(17,957)
Net current assets
9,733
6,831
Total assets less current liabilities
13,218
10,412
Creditors: amounts falling due after more than one year
17
(227)
-
Provisions for liabilities
Deferred tax liability
19
101
108
(101)
(108)
Net assets
12,890
10,304
Capital and reserves
Called up share capital
22
6
6
Other reserves
152
3,111
Profit and loss reserves
12,732
7,187
Total equity
12,890
10,304
The financial statements were approved and signed by the director and authorised for issue on 28 March 2024
28 March 2024
Mr R Munday
Director
Company registration number 12253218 (England and Wales)
DAYSHIP LOGISTICS LIMITED
COMPANY BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 12 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Investments
13
3,035
3,035
Current assets
Debtors
15
551
1
Cash at bank and in hand
300
9,473
851
9,474
Creditors: amounts falling due within one year
16
(3,880)
(12,503)
Net current liabilities
(3,029)
(3,029)
Net assets
6
6
Capital and reserves
Called up share capital
22
6
6

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £935,000 (2022 - £5,785,000 profit).

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

The financial statements were approved and signed by the director and authorised for issue on 28 March 2024
28 March 2024
Mr R Munday
Director
Company registration number 12253218 (England and Wales)
DAYSHIP LOGISTICS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 13 -
Share capital
Other reserves
share based payments
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
£'000
Balance at 1 August 2021
6
3,035
-
3,197
6,238
Year ended 31 July 2022:
Profit and total comprehensive income
-
-
-
9,775
9,775
Dividends
10
-
-
-
(5,785)
(5,785)
Transfers
-
-
76
-
76
Balance at 31 July 2022
6
3,035
76
7,187
10,304
Year ended 31 July 2023:
Profit and total comprehensive income
-
-
-
3,444
3,444
Dividends
10
-
-
-
(935)
(935)
Transfers
-
-
76
-
76
Transfer of reserves
-
(3,035)
-
3,035
-
Balance at 31 July 2023
6
-
152
12,732
12,890
DAYSHIP LOGISTICS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
Balance at 1 August 2021
6
-
0
6
Year ended 31 July 2022:
Profit and total comprehensive income for the year
-
5,785
5,785
Dividends
10
-
(5,785)
(5,785)
Balance at 31 July 2022
6
-
0
6
Year ended 31 July 2023:
Profit and total comprehensive income
-
935
935
Dividends
10
-
(935)
(935)
Balance at 31 July 2023
6
-
0
6
DAYSHIP LOGISTICS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 15 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(2,063)
14,762
Income taxes paid
(2,133)
(2,047)
Net cash (outflow)/inflow from operating activities
(4,196)
12,715
Investing activities
Purchase of tangible fixed assets
(359)
(163)
Proceeds from disposal of tangible fixed assets
36
-
Repayment of loans
-
6
Interest received
93
-
0
Net cash used in investing activities
(230)
(157)
Financing activities
Proceeds from issue of shares
1
-
Repayment of bank loans
-
(1,135)
Payment of finance leases obligations
227
-
Dividends paid to equity shareholders
(935)
(5,785)
Net cash used in financing activities
(707)
(6,920)
Net (decrease)/increase in cash and cash equivalents
(5,133)
5,638
Cash and cash equivalents at beginning of year
12,091
6,453
Cash and cash equivalents at end of year
6,958
12,091
DAYSHIP LOGISTICS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 16 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(9,173)
9,467
Investing activities
Repayment of loans
-
0
6
Dividends received
935
5,785
Net cash generated from investing activities
935
5,791
Financing activities
Dividends paid to equity shareholders
(935)
(5,785)
Net cash used in financing activities
(935)
(5,785)
Net (decrease)/increase in cash and cash equivalents
(9,173)
9,473
Cash and cash equivalents at beginning of year
9,473
-
0
Cash and cash equivalents at end of year
300
9,473
DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 17 -
1
Accounting policies
Company information

Dayship Logistics Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Number One, Vicarage Lane, Stratford, London, E15 4HF.

 

The group consists of Dayship Logistics Limited and all of its subsidiaries.

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 £'000.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Dayship Logistics Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 July 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 18 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the direct has a reasonable expectation that group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

 

The turnover is recognised when the risks and rewards of transit are transferred to the Group. In this respects it is considered either the day of departure or the day of arrival of the relevant freight according to  the nature of the import or export transaction. Incomes received outside of this are treated and recognised  as accrued or deferred income, as identified according to timings of that particular shipment.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 19 -
1.8
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:

Leasehold land and buildings
50 years straight line
Plant and equipment
5 years straight line
Fixtures and fittings
5 years straight line
Computers
3 years straight line
Motor vehicles
5 years 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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 20 -
1.10
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
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.

1.12
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 21 -
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

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.

DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 22 -
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 group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

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

Deferred tax

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

 

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

DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 23 -
1.15
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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
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 leased asset are consumed.

1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.19
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.

1.20

Other reserves

The value held in other reserves comprises that of the merger account reserve. Under merger accounting, the carrying values of the assets and liability of the parties of the combination are not adjusted to fair value on consolidation. Any difference between the cost of investment and the nominal value of the share capital acquired it put to a merger reserve.

DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 24 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

Key sources of estimation uncertainty:

 

 

 

 

3
Turnover and other revenue
2023
2022
£'000
£'000
Turnover analysed by class of business
Freight and Cargo Handling
38,947
79,606
Hotel and Hospitality Logistics
6,832
6,685
45,779
86,291
2023
2022
£'000
£'000
Other revenue
Interest income
93
-
4
Operating profit
2023
2022
£'000
£'000
Operating profit for the year is stated after charging:
Exchange losses
370
414
Depreciation of owned tangible fixed assets
103
49
Amortisation of intangible assets
394
394
Operating lease charges
973
392
DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 25 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
3
1
Audit of the financial statements of the company's subsidiaries
24
24
27
25
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
60
55
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Wages and salaries
2,293
2,522
-
0
-
0
Social security costs
271
214
-
-
Pension costs
48
79
-
0
-
0
2,612
2,815
-
0
-
0
7
Interest receivable and similar income
2023
2022
£'000
£'000
Interest income
Interest on bank deposits
93
-
0
2023
2022
Investment income includes the following:
£'000
£'000
Interest on financial assets not measured at fair value through profit or loss
93
-
DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 26 -
8
Fair value adjustments
2023
2022
£'000
£'000
Forward contracts
(61)
-
9
Taxation
2023
2022
£'000
£'000
Current tax
UK corporation tax on profits for the current period
1,039
2,481
Adjustments in respect of prior periods
-
0
17
Total current tax
1,039
2,498
Deferred tax
Origination and reversal of timing differences
(7)
108
Total tax charge
1,032
2,606

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

2023
2022
£'000
£'000
Profit before taxation
4,476
12,381
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
1,119
2,352
Tax effect of expenses that are not deductible in determining taxable profit
122
101
Tax effect of income not taxable in determining taxable profit
(12)
(31)
Adjustments in respect of prior years
-
0
60
Effect of change in corporation tax rate
(190)
-
Under/(over) provided in prior years
-
0
16
(7)
108
Taxation charge
1,032
2,606

The tax rate in the UK increased to 25% from 1 April 2023.

10
Dividends
2023
2022
Recognised as distributions to equity holders:
£'000
£'000
Final paid
935
5,785
DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 27 -
11
Intangible fixed assets
Group
Goodwill
£'000
Cost
At 1 August 2022 and 31 July 2023
3,936
Amortisation and impairment
At 1 August 2022
788
Amortisation charged for the year
394
At 31 July 2023
1,181
Carrying amount
At 31 July 2023
2,755
At 31 July 2022
3,148
The company had no intangible fixed assets at 31 July 2023 or 31 July 2022.
12
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
£'000
Cost
At 1 August 2022
257
194
22
102
49
624
Additions
95
36
-
0
3
302
436
Disposals
-
0
-
0
-
0
-
0
(49)
(49)
At 31 July 2023
352
230
22
105
302
1,011
Depreciation and impairment
At 1 August 2022
17
74
18
78
4
191
Depreciation charged in the year
6
44
3
12
38
103
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(13)
(13)
At 31 July 2023
23
118
21
90
29
281
Carrying amount
At 31 July 2023
329
112
1
15
273
730
At 31 July 2022
240
120
4
24
45
433
The company had no tangible fixed assets at 31 July 2023 or 31 July 2022.
DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 28 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
14
-
0
-
0
3,035
3,035
Movements in fixed asset investments
Company
Shares in subsidiaries
£'000
Cost or valuation
At 1 August 2022 and 31 July 2023
3,035
Carrying amount
At 31 July 2023
3,035
At 31 July 2022
3,035
14
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Daygard Logistics Group Limited
UK
Ordinary
100.00
-
Daygard Subco 1 Limited ( formerly known as Cargo Movers International Limited)
UK
Ordinary
-
100.00
Daygard Clearances Limited
UK
Ordinary
-
100.00
Freight Movers International Limited
UK
Ordinary
-
100.00
Gateway Freight Terminal Limited
UK
Ordinary
-
100.00
World Freight Movements Limited
UK
Ordinary
-
100.00
Hotel & Hospitality Logistics Limited
UK
Ordinary
-
100.00
Daygard Group Limited
UK
Ordinary
-
100.00
Cargo Movers International Limted (formerly known as Daygard Subco 1 Limited)
UK
Ordinary
-
100.00

Daygard Subco 1 Limited dissolved on 21 November 2023.

DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 29 -
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade debtors
2,550
7,808
-
0
-
0
Other debtors
4,018
371
551
1
Prepayments and accrued income
3,506
4,291
-
0
-
0
10,074
12,470
551
1
Amounts falling due after more than one year:
Other debtors
288
227
-
0
-
0
Total debtors
10,362
12,697
551
1

 

Including in other debtors is £2,3m, and other creditors £2,4m, amounts relating to the future obligations of the company/group to purchase foreign currency under a forward purchase arrangement. The fair value adjustment relating to this agreement is recognised within the profit and loss.

16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£'000
£'000
£'000
£'000
Trade creditors
2,533
7,955
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
3,880
12,503
Corporation tax payable
387
1,481
-
0
-
0
Other taxation and social security
-
21
-
-
Government grants
495
2,170
-
0
-
0
Other creditors
2,464
2,200
-
0
-
0
Accruals and deferred income
1,708
4,130
-
0
-
0
7,587
17,957
3,880
12,503

Within the company, amounts due to group undertakings are interest free and repayable on demand.

17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£'000
£'000
£'000
£'000
Obligations under finance leases
18
227
-
0
-
0
-
0
DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 30 -
18
Finance lease obligations
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Future minimum lease payments due under finance leases:
Within one year
227
-
0
-
0
-
0

The business secures its finance leases against the assets they pertain to.

19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£'000
£'000
Accelerated capital allowances
101
108
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£'000
£'000
Liability at 1 August 2022
108
-
Credit to profit or loss
(7)
-
Liability at 31 July 2023
101
-

The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature in future financial years.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
48
79

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

DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 31 -
21
Share-based payment transactions
Group
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£'000
£'000
Outstanding at 1 August 2022
-
-
-
-
Granted
558
558
-
546.00
Outstanding at 31 July 2023
558
558
558.00
546.00
Exercisable at 31 July 2023
558
558
558.00
546.00

The weighted average share price at the date of exercise for share options exercised during the year was £nil (2022 - £546).

 

The options outstanding at 31 July 2023 had an exercise price of £546, and a remaining contractual life of 3 to 6 years.

 

The share based payment transaction relates to shares in the ultimate parent company of the group. The recognition of the transaction is included in Daygard Logistics Group Limited as that includes the employee contractual obligation.

 

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary of £1 each
5,650
5,650
6
6

 

23
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Within one year
1,158,079
336,650
-
-
Between two and five years
5,247,700
1,414,367
-
-
In over five years
1,153,988
395,400
-
-
7,559,767
2,146,417
-
-
DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 32 -
24
Ultimate controlling party

During the period the Group was under the ownership or Mr R Munday due to his majority shareholding.

25
Directors' transactions

Dividends totalling £935k (2022: £5,785k) were paid in the period in respect of shares held by the company's directors.

26
Reserves

A merger reserve of £3,035,336 was created on acquisition of Daygard Logistics Group Limited, during the year this was transferred to the Profit and Loss reserve at group level, as the reserve was previously formed and no longer materially exists at 31 July 2023.

27
Cash (absorbed by)/generated from group operations
2023
2022
£'000
£'000
Profit for the year after tax
3,444
9,775
Adjustments for:
Taxation charged
1,032
2,606
Investment income
(93)
-
0
Amortisation and impairment of intangible assets
394
394
Depreciation and impairment of tangible fixed assets
103
49
Other gains and losses
61
-
Pension scheme non-cash movement
(2,232)
1,116
Equity settled share based payment expense
-
(305)
Movements in working capital:
Decrease in debtors
2,333
540
(Decrease)/increase in creditors
(5,430)
1,278
Decrease in deferred income
(1,675)
(1,072)
Cash (absorbed by)/generated from operations
(2,063)
14,991
28
Analysis of changes in net funds - group
1 August 2022
Cash flows
31 July 2023
£'000
£'000
£'000
Cash at bank and in hand
12,091
(5,133)
6,958
Obligations under finance leases
-
(227)
(227)
12,091
(5,360)
6,731
DAYSHIP LOGISTICS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 33 -
29
Cash (absorbed by)/generated from operations - company
2023
2022
£'000
£'000
Profit for the year after tax
935
5,785
Adjustments for:
Investment income
(935)
(5,785)
Movements in working capital:
Increase in debtors
(550)
(1)
(Decrease)/increase in creditors
(8,623)
9,468
Cash (absorbed by)/generated from operations
(9,173)
9,467
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