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Company Registration number: 02267425

K & W Brick Haulage Limited

Annual Report and Financial Statements

for the Year Ended 31 October 2023

 

K & W Brick Haulage Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15 to 25

 

K & W Brick Haulage Limited

Company Information

Directors

S R Keedwell

A W Bishop

Registered office

Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

Auditors

Bishop Fleming LLP
10 Temple Back
Bristol
BS1 6FL

 

K & W Brick Haulage Limited

Strategic Report for the Year Ended 31 October 2023

The directors present their strategic report for the year ended 31 October 2023.

Principal activity

The principal activity of the company is road haulage.

Fair review of the business

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

14,506,225

20,601,899

Gross profit

£

838,335

1,934,345

Gross margin

%

6

9

Net profit/(loss) before tax

£

(553,832)

724,085

Current net assets

£

2,337,022

2,270,651

Net assets

£

3,421,354

4,255,287

The construction haulage industry, and the company, remains highly capital intensive with relatively low gross and net profit margins. Over recent years the industry has seen both operating costs and pricing pressures increase, thereby further impacting the margins.

The suppressed building sector brought on by high mortgage rates has had an adverse effect on the company’s performance in the 2023 financial year. Turnover fell significantly from £20,601,899 to £14,506,225 with a consequent £1,096,010 fall in gross profit and giving rise to a net loss of £553,832.

Revenue performance is monitored closely by management against gross margins and the return per vehicle, with the aim of ensuring strong utilisation of the vehicles but not at the cost of profits. As part of this the fleet size is constantly being reviewed, and the nature of the work undertaken is challenged.

In addition to this the board continues to monitor costs, with particular focus on employee and fuel costs compared with the cost of utilising subcontractors. The aim is to improve the gross profit margins. Control of these costs has been challenging this year due to increased wage demands from drivers, and general overhead increases.

Measures continue to be taken to improve operational efficiency and profitability by addressing vehicle utilisation, removing inefficient work patterns and a drive to improve customer rates. These continue to be key areas of focus for the board, and whilst accepting significant progress is still required, they are confident that the actions being taken will enable profitability to continue to improve. The year-end balance sheet position remains strong, with the company well positioned to address the challenging market.

Future developments

The external commercial environment is expected to remain competitive, and the cost of fuel remains significant. However, the board continues to focus on improving margins through a mix of pricing and cost controls. The board are focusing on areas where the business is more efficient, moving into more profitable sectors and are engaging with a number of significant local developments and remain confident that these will provide growth both in revenue and margin.

Since the year end the group’s 2024 trading has improved due to higher volumes and returning confidence in the UK economy. As a board we continue to monitor the technological changes within our industry, including fuel types and driverless vehicles and the changing employee environment, with particular focus on recruitment and retention of employees.

 

K & W Brick Haulage Limited

Strategic Report for the Year Ended 31 October 2023

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competition from both National and independent hauliers, fuel prices and the employment and retention of additional HGV drivers. Management monitor these closely ensuring their pricing remains appropriately competitive and that the company is attractive to employees in what is currently an employee market. Fuel price changes are passed on to customers where possible or absorbed.

A number of unforeseen risks have arisen in the past few years, including the Covid-19 pandemic, the effects of the Ukraine conflict and the high inflationary economic environment, and all have impacted the group’s trading. In order to address these challenges the directors continually assessed the risks in detail, concluding that the company remains well placed to navigate such issues. The costs and cash requirements are managed closely and the company seeks to ensure tight controls over the credit procedures and where applicable, government support has been obtained.

Approved by the Board on 30 July 2024 and signed on its behalf by:


S R Keedwell
Director

   
 

K & W Brick Haulage Limited

Directors' Report for the Year Ended 31 October 2023

The directors present their report and the financial statements for the year ended 31 October 2023.

Directors of the company

The directors who held office during the year were as follows:

S R Keedwell

P B Phillips (ceased 31 January 2024)

The following director was appointed after the year end:

A W Bishop (appointed 28 May 2024)

Going concern

As stated in note 2 the directors have concluded that it is appropriate to prepare the financial statements on a going concern basis.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Bishop Fleming LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Financial instruments

Objectives and policies

The company’s principal financial instruments are all relatively standard and comprise bank balances, bank overdrafts, trade creditors, trade debtors, loans to the company and finance lease agreements. The main purpose of these instruments is to raise funds for the company’s operations and to finance the company’s operations.

 

K & W Brick Haulage Limited

Directors' Report for the Year Ended 31 October 2023

Price risk, credit risk, liquidity risk and cash flow risk

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company’s approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. The company makes use of money market facilities where funds are available.

In respect of loans these comprise loans from the directors and loans from financial institutions. The interest rate on the loans from financial institutions is variable but the monthly repayments are fixed. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments. The loans from the directors are interest free and payable on demand. The directors are aware of the company’s required finance and have determined that these will only be repaid in whole or in part when finance is available.

The company is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed in the same way as loans above.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to settle amounts as they fall due.

Future Developments

The future developments of the business are included within the strategic report.

Approved by the Board on 30 July 2024 and signed on its behalf by:


S R Keedwell
Director

   
 

K & W Brick Haulage Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

K & W Brick Haulage Limited

Independent Auditor's Report to the Members of K & W Brick Haulage Limited

Opinion

We have audited the financial statements of K & W Brick Haulage Limited (the 'company') for the year ended 31 October 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.

 

K & W Brick Haulage Limited

Independent Auditor's Report to the Members of K & W Brick Haulage Limited

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements

In the light of our 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 and the Directors' Report.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 8, 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.

 

K & W Brick Haulage Limited

Independent Auditor's Report to the Members of K & W Brick Haulage Limited

Auditor 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.

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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we have considered the following:

The nature of the industry and sector, control environment and business performance;

Results of our enquires of management and directors in relation to their own identification and assessment of the risks of irregularities within the Company; and

any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or noncompliance with laws and regulations.

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition. In common with all audits under ISAs (UK) we are required to perform specific procedures to respond to the risk of management override.

We have also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures within the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Financial Reporting Standard 102 and UK tax legislation. In addition we considered provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with may be fundamental for the Company’s ability to operate or avoid a material penalty. These included health and safety regulations; employment legislation; and data protection laws.

Our audit procedures performed to respond to the risks identified included, but were not limited to:

Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;

 

K & W Brick Haulage Limited

Independent Auditor's Report to the Members of K & W Brick Haulage Limited

Challenging assumptions and judgments made by management in their significant accounting estimates

Discussions with management, including consideration of known or suspected instances of non compliance with laws and regulation and fraud;

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

Identifying and testing journal entries, evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud;

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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.





Simon Morrison (Senior Statutory Auditor)
For and on behalf of Bishop Fleming LLP, Statutory Auditor

10 Temple Back
Bristol
BS1 6FL

30 July 2024

 

K & W Brick Haulage Limited

Profit and Loss Account
for the Year Ended 31 October 2023

Note

2023
 £

2022
 £

Turnover

3

14,506,225

20,601,899

Cost of sales

 

(13,667,890)

(18,667,554)

Gross profit

 

838,335

1,934,345

Distribution costs

 

(27,805)

(23,663)

Administrative expenses

 

(1,353,893)

(1,191,189)

Other operating income

4

9,531

4,592

Operating (loss)/profit

5

(533,832)

724,085

Other interest receivable and similar income

6

103,918

-

Interest payable and similar charges

7

(41,040)

(35,865)

(Loss)/profit before tax

 

(470,954)

688,220

Taxation

10

(362,979)

-

(Loss)/profit for the financial year

 

(833,933)

688,220

The above results were derived from continuing operations.

 

K & W Brick Haulage Limited

Statement of Comprehensive Income
for the Year Ended 31 October 2023

2023
£

2022
£

(Loss)/profit for the year

(833,933)

688,220

Total comprehensive income for the year

(833,933)

688,220

 

K & W Brick Haulage Limited

(Registration number: 02267425)
Balance Sheet as at 31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

11

2,221,324

2,839,352

Current assets

 

Stocks

12

13,463

67,196

Debtors

13

3,683,281

4,603,849

Cash at bank and in hand

 

2,694,181

2,141,004

 

6,390,925

6,812,049

Creditors: Amounts falling due within one year

15

(4,013,903)

(4,541,398)

Net current assets

 

2,377,022

2,270,651

Total assets less current liabilities

 

4,598,346

5,110,003

Creditors: Amounts falling due after more than one year

15

(814,013)

(854,716)

Provisions for liabilities

16

(362,979)

-

Net assets

 

3,421,354

4,255,287

Capital and reserves

 

Called up share capital

100

100

Retained earnings

3,421,254

4,255,187

Shareholders' funds

 

3,421,354

4,255,287

Approved and authorised by the Board on 30 July 2024 and signed on its behalf by:
 


S R Keedwell
Director

   
 

K & W Brick Haulage Limited

Statement of Changes in Equity
for the Year Ended 31 October 2023

Share capital
£

Retained earnings
£

Total
£

At 1 November 2022

100

4,255,187

4,255,287

Loss for the year

-

(833,933)

(833,933)

At 31 October 2023

100

3,421,254

3,421,354

Share capital
£

Retained earnings
£

Total
£

At 1 November 2021

100

3,566,967

3,567,067

Profit for the year

-

688,220

688,220

At 31 October 2022

100

4,255,187

4,255,287

 

K & W Brick Haulage Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

The principal place of business is:
Commerce Way
Highbridge
Somerset
TA9 4AG

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Summary of disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”:

• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); and
• the requirements of Section 15 Investments in Joint Ventures paragraph 15.21A.

 

K & W Brick Haulage Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

Key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these significant judgements and estimate have been made include:

1. The going concern basis of preparation
The directors considers it appropriate to prepare the financial statements on a going concern basis. In forming this conclusion the directors have assessed the company’s future trading and cash requirements. However as the company is a member of the S R Keedwell Holdings Limited group (together the “group”) the directors have also assessed the viability of both the company and the group in forming their conclusion.

At the year end the company had net current assets and net assets of £2,377,022 and £3,421,354 respectively. The directors believe this to be a robust position. However, the company trades with other group companies and at the year end was owed £369,393 and owed £2,266,681 to fellow group companies. The company is also part of a group guarantee (see note 16 for further information). It has been confirmed, by group confirmation, that the group companies will not seek settlement of outstanding balances, for at least 12 months from the approval of these financial statements, if it is considered detrimental to the ability of that company to continue trading. It has also been confirmed that the group will provide its members with any required support for at least 12 months from the approval date of these financial statements. The group, per its consolidated financial statements has consolidated net current assets of £14,639,646 (2022 - £14,262,010) and net assets of £28,060,369 as at 31 October 2023 (2022 - £27,503,988).

The directors have concluded that the trading forecast combined with the funding arrangements will enable the company and group to meet their liabilities as they fall due for at least 12 months from the date of approving the financial statements.

2. Depreciation rates
The directors assess and adopt an appropriate depreciation rate for each class of asset based on the anticipated useful economic life and expected residual value of the assets. These are reassessed annually for changes in legislation and other factors that may limit the useful economic life and the potential residual value. The current year depreciation charge is £756,344 and so a change in the adopted rate may materially impact the result for the financial year. There has been no change in the current year.

Turnover recognition

Turnover represents the receipts or amounts receivable from haulage services provided and hire of haulage vehicles net of value added tax. Turnover for hire of haulage vehicles is recognised in the period to which it relates. Turnover from haulage services provided is recognised at the point of delivery.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

K & W Brick Haulage Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant & machinery

15% reducing balance

Lorries & trailers

25% reducing balance

Motor vehicles

25% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Other debtors and loans receivable are initially recognised at fair value net of transaction costs and are subsequently measured at amortised cost using the effective interest method less any provision for impairment.

 

K & W Brick Haulage Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Short term trade creditors are measured at the transaction price, which is deemed to equate to amortised cost. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss account includes all current and prior period profits and losses.

 

K & W Brick Haulage Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

14,467,301

20,600,675

Other revenue

38,924

1,224

14,506,225

20,601,899

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

9,531

4,592

 

K & W Brick Haulage Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

5

Operating (loss)/profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

756,345

659,184

Loss/(profit) on disposal of property, plant and equipment

122,519

(27,469)

6

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

103,918

-

7

Interest payable and similar expenses

2023
£

2022
£

Interest on obligations under finance leases and hire purchase contracts

41,040

35,865

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

As restated
2022
£

Wages and salaries

3,479,131

3,883,982

Social security costs

322,315

630,687

Pension costs, defined contribution scheme

67,191

58,050

Other employee expense

4,388

-

3,873,025

4,572,719

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

11

11

Drivers

65

55

76

66

 

K & W Brick Haulage Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

9

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

7,325

6,875


 

10

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Deferred taxation

Arising from origination and reversal of timing differences

362,979

-

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 22.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

(Loss)/profit before tax

(470,954)

688,220

Corporation tax at standard rate

(105,965)

130,762

Effect of expense not deductible in determining taxable profit (tax loss)

2,608

-

Tax increase/(decrease) from effect of capital allowances and depreciation

395,521

(130,762)

Tax increase arising from group relief

70,815

-

Total tax charge

362,979

-

 

K & W Brick Haulage Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

11

Tangible assets

Motor vehicles
 £

Plant and machinery
 £

Lorries and trailers
 £

Total
£

Cost or valuation

At 1 November 2022

-

116,624

6,002,414

6,119,038

Additions

19,211

-

782,831

802,042

Disposals

-

-

(1,300,263)

(1,300,263)

At 31 October 2023

19,211

116,624

5,484,982

5,620,817

Depreciation

At 1 November 2022

-

85,114

3,194,572

3,279,686

Charge for the year

1,201

4,726

750,418

756,345

Eliminated on disposal

-

-

(636,538)

(636,538)

At 31 October 2023

1,201

89,840

3,308,452

3,399,493

Carrying amount

At 31 October 2023

18,010

26,784

2,176,530

2,221,324

At 31 October 2022

-

31,510

2,807,842

2,839,352

12

Stocks

2023
£

2022
£

Other stocks

13,463

67,196

 

K & W Brick Haulage Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

13

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

2,939,878

4,264,922

Amounts owed by related parties

19

369,393

2,154

Prepayments

 

236,586

186,773

Corporation tax

10

137,424

150,000

   

3,683,281

4,603,849

14

Cash and cash equivalents

2023
£

2022
£

Cash on hand

555

259

Cash at bank

107,908

2,140,745

Short-term deposits

2,585,718

-

2,694,181

2,141,004

15

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

17

586,219

591,703

Trade creditors

 

566,555

848,047

Amounts owed to group undertakings

 

2,266,681

2,690,794

Amounts owed to associated undertakings

 

-

3,570

Social security and other taxes

 

380,092

246,526

Outstanding defined contribution pension costs

 

17,500

10,717

Other creditors

 

97,875

41,620

Accrued expenses

 

98,981

108,421

 

4,013,903

4,541,398

Due after one year

 

Loans and borrowings

17

814,013

854,716

16

Provisions for liabilities

Deferred tax
£

Total
£

Additional provisions

362,979

362,979

At 31 October 2023

362,979

362,979

 

K & W Brick Haulage Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

Deferred tax

Deferred tax assets and liabilities:

2023

Asset
£

Liability
£

Accelerated tax depreciation

-

365,877

Provisions

2,898

-

2,898

365,877

17

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Hire purchase contracts

586,219

591,703

2023
£

2022
£

Non-current loans and borrowings

Hire purchase contracts

814,013

854,716

Finance lease liabilities

Hire purchase contracts with a carrying amount of £1,400,232 (2022 - £1,446,419) has a nominal interest rate of between 1.5% and 4%.

Hire purchase contracts are secured on the lorries and trailers they are financing and are repayable in monthly instalments over 3 to 6 years from the date they are advanced. The company uses hire purchase contracts in order to acquire lorries and trailers. There are purchase options within the contracts, which are at the option of the lessee.

18

Contingent liabilities

The company has provided an unlimited guarantee in favour of Barclays Bank PLC covering the liabilities of all companies within the R. T. Keedwell Holdings Limited group (excluding Walrow Tyre Services Limited, Truck Tech Yorkshire Limited, Junction 22 Trailers Limited and Keedwell Konnect Limited) and West Trucks (Highbridge) Limited. The amount guaranteed is £Nil (2022 - £Nil). The bank has secured this debt against the freehold property owned by the companies and an unlimited debenture over all assets of the company.

19

Related party transactions

Summary of transactions with parent

The company has taken advantage of the exemption in FRS102 paragraph 33.1A from disclosing transactions and balances from wholly owned subsidiaries of its parent company.
 

 

K & W Brick Haulage Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

Summary of transactions with entities with joint control or significant interest

During the year the company generated £78,366 (2022 - £78,116) in turnover and made purchases of £825,274 (2022 - £1,021,302) from entities with joint control or significant interest.

The company maintains interest free loan accounts with entities with joint control or significant interest which are repayable on demand. At the balance sheet date the company owed £90,180 (2022 - £113,369) to entities with joint control or significant interest and the amounts are included within debtors and creditors as amounts owed by/to group undertakings.

 

20

Parent and ultimate parent undertaking

The company's immediate parent is R. T. Keedwell Holdings Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is S R Keedwell Holdings Limited. These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.

 

21

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £67,191 (2022 - £58,050).

Contributions totalling £17,500 (2022 - £10,717) were payable to the scheme at the end of the year and are included in creditors.