CAMPEYS OF SELBY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
Company registration number 05049116 (England and Wales)
CAMPEYS OF SELBY LIMITED
COMPANY INFORMATION
Directors
Mr P D Campey
Mrs E A Campey
Mr H Campey
(Appointed 1 February 2023)
Mrs V Briggs
(Appointed 1 January 2024)
Secretary
Mrs E A Campey
Company number
05049116
Registered office
Southlands
Leeds Road
Thorpe Willoughby
Selby
YO8 9PZ
Auditor
Hunter Gee Holroyd
Club Chambers
Museum Street
York
YO1 7DN
CAMPEYS OF SELBY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
Detailed profit and loss account
-
CAMPEYS OF SELBY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -
The directors present the strategic report for the year ended 31 October 2023.
Principal activity
The principal activity of the company is haulage.
Fair Review of the Business
The results contained in these financial statements reflect the success of the strategy adopted by the leadership team.
Despite the haulage market continuing to face many challenges, including driver shortages and fuel price rises during the year, the management have been successful by increasing the turnover by £1.1 million which equates to an increase of 6%.
This has been because of further organisational changes where significant investment has led to greater control and flexibility of the services offered to the widening customer base.
New developments in the company’s operating and management systems have assisted the continued growth and success of the business.
Our strategy focuses on the efficient utilisation of our assets, both vehicle and warehouse based, to deliver long term value to our customers. Growth is targeted and anticipated in our key market sectors especially in our specialist sectors.
The Company has continued to build on its solid foundation as a unique transport network, strengthening its customer base and continuing to focus its priorities on the key strategies of:
Controlling overheads and head office costs.
Optimising and maintaining warehouse utilisation levels, and
Concentrating on maximising efficiencies and improving profitability in the transport network through alteration of the customer base, which ensures both customers and industry sectors remain profitable throughout the diverse network.
As highlighted in the principal risks and uncertainties section of the Strategic Report, the challenging market conditions continue to impact the business, however the directors are satisfied that the Company continues to provide its customers with a market leading service. The company is well funded and financially robust, thus the directors are confident the business is well placed to meet the challenges of the on-going economic climate and market conditions.
CAMPEYS OF SELBY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Financial KPIs
The company's key financial and other performance indicators during the year were as follows:
2023
2022
Turnover
£20,421,389
£19,276,657
Gross profit as a % of turnover
9%
15%
Operating profit as % of turnover
5%
13%
Current assets over current liabilities
1.3:1
1.7;1
Whilst we are mindful of the constant challenges facing the haulage industry, we are confident that our unique operating model provides us with the flexibility to respond rapidly to changing market conditions.
Our constant reinvestment into new assets has enabled the company to operate in new and varying markets that would otherwise have not been serviceable. We are proud of the varying services that we can offer.
We continue to follow central Government guidance and advice and manage our operations in the safest possible way, prioritising the health and safety of our people and those of our customers.
We have found it necessary to make a key decision with regards to the impact of inflation. Due to the increase in the Consumer Price Index (CPI) during the year, the Company increased its focus on managing its costs in order to effectively ensure the impact on its customer base was mitigated wherever possible. All significant costs, for example energy, have been reviewed and appropriate strategies have been adopted to minimise the impact on the Company’s cost base.
Principal risks and uncertainties
The company continues to face risks which, although emphasised by the media, have become typical for the haulage industry. These are predominantly the supply of drivers with the necessary qualifications and safety record to continue with the excellent service offered by the company. The company has continued to employ a full workforce which has expanded in line with the additions to its fleet. The rapid increase in fuel prices and overheads, in part due to the effects of the conflict between Ukraine and Russia as well as the adverse effects of inflation, has been a further industry variant that the company has had to manage in order to offer a cost-effective service to its expanding customer base.
Our profits generated in 2023 have been significantly reinvested into the fleet as we endeavour to continue to offer the best service possible to our existing and future customer base. We continue to adopt a greener investment strategy where significant assets are now not fossil fuel based. We have progressed with further investment in gas fuelled vehicles and electric vehicles to our fleet as we become more aware of our commitment to be green.
Mr P D Campey
Director
30 July 2024
CAMPEYS OF SELBY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 October 2023.
Principal activities
The principal activity of the company continued to be that of haulage
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £70,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P D Campey
Mrs E A Campey
Mr H Campey
(Appointed 1 February 2023)
Mrs V Briggs
(Appointed 1 January 2024)
Financial instruments
Objectives and policies
The Company does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit, and manages this through credit control procedures and normal bank finance. The financing of the acquisition of the new trucks and vehicles is undertaken, principally, on fixed rate agreements.
The nature of its financial instruments means that they are not subject to price risk or liquidity risk.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr P D Campey
Director
30 July 2024
CAMPEYS OF SELBY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CAMPEYS OF SELBY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAMPEYS OF SELBY LIMITED
- 5 -
Opinion
We have audited the financial statements of Campeys of Selby Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion 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 profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CAMPEYS OF SELBY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAMPEYS OF SELBY LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
CAMPEYS OF SELBY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAMPEYS OF SELBY LIMITED (CONTINUED)
- 7 -
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the haulage industry.
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery and employment legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions;
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance; and
enquiring of management as to actual and potential litigation and claims;
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 the 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.
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.
CAMPEYS OF SELBY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAMPEYS OF SELBY LIMITED (CONTINUED)
- 8 -
Nigel Everard
Senior Statutory Auditor
For and on behalf of Hunter Gee Holroyd
30 July 2024
Chartered Accountants
Statutory Auditor
Club Chambers
Museum Street
York
YO1 7DN
CAMPEYS OF SELBY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
20,421,389
19,276,657
Cost of sales
(18,584,318)
(16,387,591)
Gross profit
1,837,071
2,889,066
Administrative expenses
(919,588)
(508,405)
Other operating income
20,000
86,291
Operating profit
4
937,483
2,466,952
Interest receivable and similar income
7
16,129
595
Interest payable and similar expenses
8
(306,759)
(122,413)
Profit before taxation
646,853
2,345,134
Tax on profit
9
(518,937)
(90,888)
Profit for the financial year
127,916
2,254,246
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CAMPEYS OF SELBY LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
10,326,713
7,303,098
Investment property
12
473,374
10,800,087
7,303,098
Current assets
Stocks
13
27,250
62,500
Debtors
14
4,140,432
3,673,734
Cash at bank and in hand
67,010
1,016,454
4,234,692
4,752,688
Creditors: amounts falling due within one year
15
(3,223,673)
(2,861,875)
Net current assets
1,011,019
1,890,813
Total assets less current liabilities
11,811,106
9,193,911
Creditors: amounts falling due after more than one year
16
(5,237,160)
(3,241,811)
Provisions for liabilities
Deferred tax liability
19
1,162,778
598,848
(1,162,778)
(598,848)
Net assets
5,411,168
5,353,252
Capital and reserves
Called up share capital
21
20
20
Profit and loss reserves
5,411,148
5,353,232
Total equity
5,411,168
5,353,252
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 30 July 2024 and are signed on its behalf by:
Mr P D Campey
Director
Company registration number 05049116 (England and Wales)
CAMPEYS OF SELBY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2021
20
3,165,986
3,166,006
Year ended 31 October 2022:
Profit and total comprehensive income
-
2,254,246
2,254,246
Dividends
10
-
(67,000)
(67,000)
Balance at 31 October 2022
20
5,353,232
5,353,252
Year ended 31 October 2023:
Profit and total comprehensive income
-
127,916
127,916
Dividends
10
-
(70,000)
(70,000)
Balance at 31 October 2023
20
5,411,148
5,411,168
CAMPEYS OF SELBY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
2,470,229
3,396,323
Interest paid
(306,759)
(122,413)
Income taxes refunded/(paid)
44,993
(16,290)
Net cash inflow from operating activities
2,208,463
3,257,620
Investing activities
Purchase of tangible fixed assets
(5,931,306)
(3,318,907)
Proceeds from disposal of tangible fixed assets
335,868
60,871
Purchase of investment property
(473,374)
Interest received
16,129
595
Net cash used in investing activities
(6,052,683)
(3,257,441)
Financing activities
Payment of HP obligations
2,630,645
958,253
Dividends paid
(70,000)
(67,000)
Net cash generated from financing activities
2,560,645
891,253
Net (decrease)/increase in cash and cash equivalents
(1,283,575)
891,432
Cash and cash equivalents at beginning of year
1,016,454
125,022
Cash and cash equivalents at end of year
(267,121)
1,016,454
Relating to:
Cash at bank and in hand
67,010
1,016,454
Bank overdrafts included in creditors payable within one year
(334,131)
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
1
Accounting policies
Company information
Campeys of Selby Limited is a private company limited by shares incorporated in England and Wales. The registered office is Southlands, Leeds Road, Thorpe Willoughby, Selby, YO8 9PZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when; the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and, specific criteria have been met for each of the company's activities.
1.4
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.
1.5
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:
Property improvements
7% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at cost as they only relate to materials and supplies consumed in the rendering of services at no or nominal consideration.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated value at the reporting date is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
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. Any bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
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.
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company 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 company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
1.13
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods
Payments to defined contribution retirement benefit schemes are recognised as an employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
1.14
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 leases asset are consumed.
1.15
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Haulage
20,265,225
19,276,657
Storage
156,164
-
20,421,389
19,276,657
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
3
Turnover and other revenue
(Continued)
- 18 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
20,421,389
19,276,657
2023
2022
£
£
Other revenue
Interest income
16,129
595
Rental income arising from investment properties
20,000
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(21)
Research and development costs
6,238
-
Fees payable to the company's auditor for the audit of the company's financial statements
8,500
7,500
Depreciation of owned tangible fixed assets
2,469,663
1,739,954
Loss/(profit) on disposal of tangible fixed assets
102,160
(13,344)
Operating lease charges
228,290
97,422
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
3
2
Haulage
116
106
Administration
21
21
Warehouse
4
-
Total
144
129
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
5
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
6,632,252
5,716,642
Social security costs
700,003
665,754
Pension costs
131,611
112,920
7,463,866
6,495,316
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
66,481
20,395
Company pension contributions to defined contribution schemes
997
1,440
67,478
21,835
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
7,601
595
Other interest income
8,528
Total income
16,129
595
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
7,601
595
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
39,318
13,401
Other finance costs:
Interest on finance leases and hire purchase contracts
267,441
109,012
306,759
122,413
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
9
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(44,993)
Deferred tax
Origination and reversal of timing differences
563,930
90,888
Total tax charge
518,937
90,888
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
£
£
Profit before taxation
646,853
2,345,134
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
161,713
445,575
Tax effect of expenses that are not deductible in determining taxable profit
2,716
1,423
Unutilised tax losses carried forward
845,011
146,404
Permanent capital allowances in excess of depreciation
(1,009,440)
(593,402)
Research and development tax credit
(44,993)
Deferred tax
563,930
90,888
Taxation charge for the year
518,937
90,888
10
Dividends
2023
2022
£
£
Final paid
70,000
67,000
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
11
Tangible fixed assets
Property improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 November 2022
238,592
221,744
54,633
81,865
12,618,735
13,215,569
Additions
54,971
92,114
3,199
117,271
5,663,751
5,931,306
Disposals
(1,577,417)
(1,577,417)
At 31 October 2023
293,563
313,858
57,832
199,136
16,705,069
17,569,458
Depreciation and impairment
At 1 November 2022
178,473
77,413
47,212
42,765
5,566,608
5,912,471
Depreciation charged in the year
7,834
49,214
2,220
16,980
2,393,415
2,469,663
Eliminated in respect of disposals
(1,139,389)
(1,139,389)
At 31 October 2023
186,307
126,627
49,432
59,745
6,820,634
7,242,745
Carrying amount
At 31 October 2023
107,256
187,231
8,400
139,391
9,884,435
10,326,713
At 31 October 2022
60,119
144,331
7,421
39,100
7,052,127
7,303,098
12
Investment property
2023
£
Fair value
At 1 November 2022
Additions through external acquisition
473,374
At 31 October 2023
473,374
Investment property comprises of property on Mill Lane, Brayton, Selby. The fair value of the investment property has been arrived at on the basis of cost price plus related fees regarding the purchase of the property. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The carrying value of land and buildings comprises:
2023
2022
£
£
Freehold
473,374
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
13
Stocks
2023
2022
£
£
Raw materials and consumables
27,250
62,500
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,864,393
3,539,378
Other debtors
61,134
26,568
Prepayments and accrued income
214,905
107,788
4,140,432
3,673,734
The trade debtors balance includes £2,153,947 (2022: £3,115,752) which is covered by an invoice discounting arrangement. These assets have not been derecognised from the balance sheet because the company remains ultimately responsible for any unpaid balances, so the directors consider significant risks to have been retained.
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
334,131
Obligations under finance leases
18
2,229,729
1,594,433
Trade creditors
666,033
648,547
Taxation and social security
228,077
241,390
Other creditors
(477,895)
245,634
Accruals and deferred income
243,598
131,871
3,223,673
2,861,875
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
18
5,237,160
3,241,811
Net obligations under hire purchase agreements are secured on the assets of the company.
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 23 -
17
Loans and overdrafts
2023
2022
£
£
Bank loans
334,131
Payable within one year
334,131
The loan balance relates to amounts drawn down on the invoice discounting arrangement and is repayable within one year.
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
2,229,729
1,594,433
In two to five years
5,237,160
3,241,811
7,466,889
4,836,244
Finance lease payments represent hire purchase arrangements utilised by the company for certain items of plant and machinery.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,162,778
598,848
2023
Movements in the year:
£
Liability at 1 November 2022
598,848
Other
563,930
Liability at 31 October 2023
1,162,778
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
131,611
112,920
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
20
20
20
20
22
Operating lease commitments
Lessee
2023
2022
£
£
Within one year
195,000
Between two and five years
225,000
420,000
23
Presentational adjustments.
The comparative year figures have been adjusted to display Palletforce operations separately, as income and expenditure, on the Statement of Profit and Loss as opposed to how it was originally published, as being netted off within turnover.
The net effect of this adjustment has no bearing on either the profit for the year or retained earnings within the company. This change has been made in order to provide a true and fair view of the business' performance.
24
Directors' transactions
Dividends totalling £70,000 (2022 - £70,000) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors Loan Account
2.12
(205,683)
916,600
8,528
(197,362)
522,083
(205,683)
916,600
8,528
(197,362)
522,083
CAMPEYS OF SELBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 25 -
25
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
127,916
2,254,246
Adjustments for:
Taxation charged
518,937
90,888
Finance costs
306,759
122,413
Investment income
(16,129)
(595)
Loss/(gain) on disposal of tangible fixed assets
102,160
(13,344)
Depreciation and impairment of tangible fixed assets
2,469,663
1,739,954
Movements in working capital:
Decrease/(increase) in stocks
35,250
(57,500)
Increase in debtors
(466,698)
(385,881)
Decrease in creditors
(607,629)
(353,858)
Cash generated from operations
2,470,229
3,396,323
26
Analysis of changes in net debt
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
1,016,454
(949,444)
67,010
Bank overdrafts
(334,131)
(334,131)
1,016,454
(1,283,575)
(267,121)
Obligations under finance leases
(4,836,244)
(2,630,645)
(7,466,889)
(3,819,790)
(3,914,220)
(7,734,010)
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