Company Registration number:
R.T. Keedwell Limited
for the Year Ended 31 October 2023
R.T. Keedwell Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
R.T. Keedwell Limited
Company Information
Directors |
S R Keedwell J D White G S Janes |
Registered office |
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Auditors |
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R.T. Keedwell 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:
Unit |
2023 |
2022 |
|
Turnover |
£ |
23,911,962 |
25,122,707 |
Gross profit |
£ |
2,108,218 |
4,286,699 |
Gross margin |
% |
9 |
17 |
Net profit/(loss) before tax |
£ |
-501,159 |
1,991,621 |
Current net assets |
£ |
9,196,070 |
11,016,162 |
Net assets |
£ |
12,647,581 |
13,346,672 |
The general 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 war in Ukraine and the downturn in the UK economy have continued to impact trading during 2023. Company turnover has fallen from £25.1m to £23.9m. Gross margins have reduced slightly due to increases in labour and fuel costs. The company recorded a gross margin of £2.1m, against £4.3m.
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.
As noted in the prior year, 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 continued to improve. 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
R.T. Keedwell 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 company’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
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R.T. Keedwell 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:
The following director was appointed after the year end:
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.
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.
R.T. Keedwell Limited
Directors' Report for the Year Ended 31 October 2023
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.
Approved by the Board on
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R.T. Keedwell 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
R.T. Keedwell Limited
Independent Auditor's Report to the Members of R.T. Keedwell Limited
Opinion
We have audited the financial statements of R.T. Keedwell 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
R.T. Keedwell Limited
Independent Auditor's Report to the Members of R.T. Keedwell 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:
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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 |
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the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements |
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters 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 6, 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.
R.T. Keedwell Limited
Independent Auditor's Report to the Members of R.T. Keedwell 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 Auditors' 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:
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The nature of the industry and sector, control environment and business performance; |
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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 |
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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:
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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; |
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Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue; |
R.T. Keedwell Limited
Independent Auditor's Report to the Members of R.T. Keedwell Limited
• |
Challenging assumptions and judgments made by management in their significant accounting estimates |
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Discussions with management, including consideration of known or suspected instances of non compliance with laws and regulation and fraud; |
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Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and |
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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 Auditors' 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.
For and on behalf of
10 Temple Back
BS1 6FL
R.T. Keedwell Limited
Profit and Loss Account
for the Year Ended 31 October 2023
Note |
2023 |
2022 |
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Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating (loss)/profit |
( |
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
(Loss)/profit before tax |
( |
|
|
Taxation |
( |
( |
|
(Loss)/profit for the financial year |
( |
|
The above results were derived from continuing operations.
R.T. Keedwell Limited
Statement of Comprehensive Income
for the Year Ended 31 October 2023
2023 |
2022 |
|
(Loss)/profit for the year |
( |
|
Total comprehensive income for the year |
( |
|
R.T. Keedwell Limited
(Registration number: 01658126)
Balance Sheet as at 31 October 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
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Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
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Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
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Share premium reserve |
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Retained earnings |
|
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Shareholders' funds |
|
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Approved and authorised by the
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R.T. Keedwell Limited
Statement of Changes in Equity
for the Year Ended 31 October 2023
Share capital |
Share premium |
Retained earnings |
Total |
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At 1 November 2022 |
|
|
|
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Loss for the year |
- |
- |
( |
( |
At 31 October 2023 |
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|
|
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Share capital |
Share premium |
Retained earnings |
Total |
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At 1 November 2021 |
|
|
|
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Profit for the year |
- |
- |
|
|
At 31 October 2022 |
100 |
15,598 |
13,330,974 |
13,346,672 |
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
Commerce Way
Highbridge
Somerset
TA9 4AG
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 were 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.
R.T. Keedwell 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 consider 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 £9,196,070 and £12,647,581 respectively. However, the company trades with other group companies and at the year end was owed £4,044,455 and owed £453,260 to fellow group companies. The company is also part of a group guarantee (see note 21 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 £1,520,885 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.
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
Turnover recognition
Turnover represents the receipts or amounts receivable for the provision of haulage services, rental of warehouse areas and hire of haulage vehicles net of value added tax. Turnover for haulage services is recognised at the point of delivery. Turnover for warehouse rent and hire of haulage vehicles is recognised in the period to which it relates.
Government grants
Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other operating income in the profit and loss and timing differences presented as other debtors within the balance sheet.
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.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred income tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income 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.
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 and machinery |
15% reducing balance |
Motor vehicles |
25% reducing balance |
Lorries and trailers |
25% reducing balance |
Investment property
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
Investments
Investments in joint ventures are measured at cost less any accumulated impairment losses recognised. Any distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the jointly controlled entity arising before or after the date of acquisition.
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.
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.
When stock is utilised, the carrying amount of such stock is recognised as an expense in the period that it is utilised. At each reporting date, stocks are assessed for impairment. If stocks are impaired, 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.
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
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.
Share premium reserve includes any premiums received on the issue of share capital. Transaction costs associated with the issuing of shares are deducted from the share premium.
Profit and loss reserve includes all current and prior period profits and losses.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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.
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
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.
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Haulage |
|
|
Warehouse rent |
|
|
Hire |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2023 |
2022 |
|
Miscellaneous other operating income |
|
|
Operating (loss)/profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Other interest receivable and similar income |
2023 |
2022 |
|
Other finance income |
|
|
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
- |
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Production |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
Taxation |
Tax charged/(credited) in the profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
- |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
( |
|
Effect of tax losses |
( |
- |
Deferred tax expense relating to changes in tax rates or laws |
- |
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Tax increase from other short-term timing differences |
- |
|
Tax increase/(decrease) arising from group relief |
|
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
( |
Total tax charge |
|
|
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
Tangible assets |
Motor vehicles |
Plant and machinery |
Lorries and trailers |
Total |
|
Cost or valuation |
||||
At 1 November 2022 |
|
|
|
|
Additions |
|
- |
|
|
Disposals |
( |
- |
( |
( |
At 31 October 2023 |
|
|
|
|
Depreciation |
||||
At 1 November 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
- |
( |
( |
At 31 October 2023 |
|
|
|
|
Carrying amount |
||||
At 31 October 2023 |
|
|
|
|
At 31 October 2022 |
|
|
|
|
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Lorries and trailers |
6,372,571 |
2,519,184 |
Restriction on title and pledged as security
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
Stocks |
2023 |
2022 |
|
Stocks |
|
|
Debtors |
Note |
2023 |
2022 |
|
Trade debtors |
|
|
|
Amounts owed by group undertakings |
|
|
|
Amounts owed by associated undertakings |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Corporation tax |
|
- |
|
|
|
||
Less non-current portion |
( |
( |
|
Total current trade and other debtors |
9,312,572 |
10,115,230 |
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
Details of non-current trade and other debtors
£116,000 (2022 -£116,000) of other debtors is classified as non current. In 2016 the company issued an unsecured loan that is repayable in full in 2031. Interest is charged on the loan at 6%.
Cash and cash equivalents |
2023 |
2022 |
|
Cash on hand |
|
|
Cash at bank |
|
|
Short-term deposits |
|
- |
|
|
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts owed to group undertakings |
|
|
|
Amounts owed to associated undertakings |
- |
|
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
Corporation tax |
- |
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 November 2022 |
|
|
Additional provisions |
|
|
At 31 October 2023 |
|
|
|
R.T. Keedwell 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 |
- |
|
Provisions |
|
- |
Tax losses carried forward |
|
- |
|
|
2022 |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
- |
|
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 £
Contributions totalling £
Loans and borrowings |
2023 |
2022 |
|
Current loans and borrowings |
||
Hire purchase contracts |
|
|
2023 |
2022 |
|
Non-current loans and borrowings |
||
Hire purchase contracts |
|
|
Finance lease liabilities
Hire purchase contracts with a carrying amount of £5,916,831 (2022 - £2,222,899) 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.
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
2023 |
As restated |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
- |
|
|
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.
Commitments |
Capital commitments
The total amount contracted for but not provided in the financial statements was £
R.T. Keedwell Limited
Notes to the Financial Statements
for the Year Ended 31 October 2023
Related party transactions |
Transactions with directors |
Summary of transactions with parent
Summary of transactions with 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 was owed £463,666 (2022 - £615,613) from entities with joint control or significant interest and the amounts are included within debtors and creditors as amounts owed by/to group undertakings.
The company maintains interest bearing loan accounts with an entity with joint control or significant interest which is repayable on demand. During the year the company received interest of £1,526 (2022 - £6,227) and at the balance sheet date the balance due from this entity was £177,016 (2022 - £450,223) and the amount is included within debtors as amounts owed by group undertakings.
Summary of transactions with other related parties
At the balance sheet date R.T. Keedwell Limited was due £169,007 (2022 - £187,689) from companies controlled by the directors.
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is