REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 |
FOR |
H & M FREIGHT SERVICES LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 |
FOR |
H & M FREIGHT SERVICES LIMITED |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 15 |
H & M FREIGHT SERVICES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
50 Seymour Street |
London |
W1H 7JG |
BANKERS: |
Hounslow Branch |
275/277 High Street |
Hounslow |
Middlesex |
TW13 1ZA |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
The director presents his strategic report for the year ended 31st October 2023. |
REVIEW OF BUSINESS |
The results for the period and financial position of the company are as shown in the annexed financial statements. |
The total turnover of the company during the year amounted to £9,734,348 (2022: £10,617,363). The company's losses amounted to £174,920 (2022 profits of £685,604). The management is continuing to review its costs and is also looking at ways to increase the company's customer base. The management anticipates that these steps will help in the improvement of the company's performance in the coming year. |
Shareholders' funds at the year end were £3,936,749 (2022: £4,205,412). |
PRINCIPAL RISKS AND UNCERTAINTIES |
Key performance indicators: |
The director regularly reviews their exposure to key customers. It is the company's intention to further broaden the company's range of customers and its market share both in the UK and abroad. The company therefore continues to invest in developing its service range to meet the market requirements. |
The director manages the company on key indicators including growth and profitability. The director believes that the company can manage its business risks successfully despite the current uncertain economic outlook. |
The director continually monitors the company's liquidity in order to ensure that sufficient funds are available for its ongoing operations and future growth. The company has a good record on bad debts and the director does not consider that it carries any material credit risks. |
The company's internal control systems sufficiently ensure that financial and management controls apply at all levels of the business. The use of annual budgets and forecasts are operated and investigations are made into areas of adverse expenditure with appropriate management action to correct. |
Financial risk management objectives and policies: |
The company's principal financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors and loans. The main purpose of these instruments is to raise funds for the company's operations. |
Due to the nature of financial instruments used by the company, there is no exposure to price risk. The company's approach to managing other risks applicable to 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. The company manages the liquidity risk by ensuring there are sufficient funds to meet these payments. |
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 meet amounts due. |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
FUTURE DEVELOPMENTS |
The company continues to operate in a very competitive market place. The director is aware of the challenging market conditions facing all companies in the UK and is committed to implement new initiatives that will focus on improving profit growth in existing channels whilst broadening its range of customers and its market share both in the UK and abroad. The company therefore continues to invest in developing its service range to meet the market requirements. |
ON BEHALF OF THE BOARD: |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
The director presents his report with the financial statements of the company for the year ended 31st October 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of freight clearing agents. |
DIVIDENDS |
No interim dividend was paid during the year. The director recommends a final dividend of £ |
The total distribution of dividends for the year ended 31st October 2023 will be £ |
DIRECTOR |
FINANCIAL INSTRUMENTS |
The company employs only basic financial instruments including cash, debtors and creditors. |
POLITICAL DONATIONS AND EXPENDITURE |
During the reporting period charitable donations of £1,252 (2022 2,570) were made. |
DIRECTOR'S INSURANCE AND INDEMNITIES |
The directors have the benefit of the indemnity provisions contained in the company's Articles of Association ('Articles'), and the company has maintained throughout the period directors' and officers' liability insurance for the benefit of the company, the directors and its officers. The company has entered into qualifying third party indemnity arrangements for the benefit of all its directors in a form and scope which comply with the requirements of the Companies Act 2006 and which were in force throughout the period and remain in force. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
AUDITORS |
The auditors, Orcom Civvals Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
H & M FREIGHT SERVICES LIMITED |
Opinion |
We have audited the financial statements of H & M Freight Services Limited (the 'company') for the year ended 31st October 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 31st 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
H & M FREIGHT SERVICES LIMITED |
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 Report of the Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
H & M FREIGHT SERVICES LIMITED |
Auditors' 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 a Report of the Auditors 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: |
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK taxation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management override of controls. Audit procedures performed by the engagement team included: |
- Identify and assess the risk of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion; |
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control; |
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and the related disclosures made by the directors; |
- Enquiry of management and those charged with governance around actual and potential litigation and claims; |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and testing accounting estimates (because of the risk of management bias); |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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 Report of the Auditors. |
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 a Report of the Auditors 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 |
Chartered Accountants and Statutory Auditors |
50 Seymour Street |
London |
W1H 7JG |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( | ) | ( | ) |
GROSS PROFIT |
Administrative expenses | ( | ) | ( | ) |
(240,092 | ) | 648,349 |
Other operating income |
OPERATING (LOSS)/PROFIT | 5 | ( | ) |
Interest receivable and similar income |
(170,817 | ) | 688,926 |
Interest payable and similar expenses | 6 | ( | ) | ( | ) |
(LOSS)/PROFIT BEFORE TAXATION | ( | ) |
Tax on (loss)/profit | 7 | ( | ) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( | ) |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | ( | ) |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
STATEMENT OF FINANCIAL POSITION |
31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 | ( | ) | ( | ) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 12 | ( | ) |
PROVISIONS FOR LIABILITIES | 17 | ( | ) | ( | ) |
NET ASSETS | 3,936,749 | 4,205,412 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 82 | 82 |
Capital redemption reserve | 19 | 18 | 18 |
Retained earnings | 19 | 3,936,649 | 4,205,312 |
SHAREHOLDERS' FUNDS | 3,936,749 | 4,205,412 |
The financial statements were approved by the director and authorised for issue on |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st November 2021 | 82 | 3,648,182 | 18 | 3,648,282 |
Changes in equity |
Total comprehensive income | - |
Balance at 31st October 2022 | 82 | 4,205,312 | 18 | 4,205,412 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - | ( | ) | ( | ) |
Balance at 31st October 2023 | 82 | 3,936,649 | 18 | 3,936,749 |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( | ) | ( | ) |
Tax paid | ( | ) | ( | ) |
Net cash from operating activities | ( | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( | ) | ( | ) |
Interest received |
Net cash from investing activities | ( | ) | ( | ) |
Cash flows from financing activities |
Loan repayments in year | ( | ) | ( | ) |
Amount introduced by directors | - | 15,654 |
Amount withdrawn by directors | (10,016 | ) | - |
Equity dividends paid | ( | ) |
Net cash from financing activities | ( | ) | ( | ) |
(Decrease)/increase in cash and cash equivalents | ( | ) |
Cash and cash equivalents at beginning of year | 2 | 2,697,078 |
Cash and cash equivalents at end of year | 2 | 2,917,093 | 3,346,515 |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit before taxation | ( | ) |
Depreciation charges |
Finance costs | 4,103 | 3,322 |
Finance income | (31,595 | ) | (2,897 | ) |
(149,107 | ) | 728,726 |
Decrease in trade and other debtors |
Increase/(decrease) in trade and other creditors | ( | ) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31st October 2023 |
31.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 2,917,093 | 3,346,515 |
Year ended 31st October 2022 |
31.10.22 | 1.11.21 |
£ | £ |
Cash and cash equivalents | 3,346,515 | 2,697,078 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.11.22 | Cash flow | At 31.10.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,346,515 | (429,422 | ) | 2,917,093 |
3,346,515 | ( | ) | 2,917,093 |
Debt |
Debts falling due within 1 year | (64,790 | ) | 64,790 | - |
Debts falling due after 1 year | (71,343 | ) | 71,343 | - |
(136,133 | ) | 136,133 | - |
Total | 3,210,382 | (293,289 | ) | 2,917,093 |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
1. | STATUTORY INFORMATION |
H & M Freight Services Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. |
The presentation currency of the financial statement is in Sterling. |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. |
Significant judgements and estimates |
The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The notes to the financial statements set out areas involving a higher degree of judgement, or areas where assumptions are significant to the reporting entity and its financial report such as: |
- useful economic lives of tangible assets |
- fair value of assets and liabilities |
- recoverability of tax receivables, deferred tax assets and measurement of current and deferred tax liabilities can require significant judgement, particularly where the recoverability of such tax balances relies on the estimation of future taxable profits and management's determination of the likelihood that uncertain tax positions will be accepted by the relevant taxation authority |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Management believes that the estimates used in preparing these financial statements are reasonable. Actual results in the future may differ from those reported and it is therefore reasonably possible, on the basis of existing knowledge, that outcomes within the next financial year that are different from management's assumptions and estimates could require an adjustment to the carrying amounts of the reported assets and liabilities in future reporting periods. |
Revenue recognition |
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for services rendered, net of returns and discounts allowed by the company and value added taxes. |
Turnover represents the amount derived from the provision of services falling within the company's activities after deduction of value added tax. |
The company recognises revenue when: |
i) the company has performed its obligations, wholly or in part, in a service agreement; |
ii) the amount of revenue can be measured reliably; |
iii) it is probable that future economic benefits will flow to the entity. |
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered. |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Financial instruments |
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled; or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party; or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans, loans 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 receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Monetary assets and liabilities in foreign currencies are translated into Sterling at the rate of exchange at balance sheet date. Transactions in foreign currencies are translated into Sterling at the average rate of exchange for the year. Exchange differences are taken into account in arriving at the operating result. |
Operating lease |
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Office and administration | 4 | 4 |
Others | 34 | 34 |
2023 | 2022 |
£ | £ |
Director's remuneration |
Director's pension contributions to money purchase schemes |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences | ( | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
Other interest |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( | ) |
Tax on (loss)/profit | ( | ) |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
7. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | ( | ) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of | ( | ) |
Effects of: |
Capital allowances in excess of depreciation | - | ( | ) |
Utilisation of tax losses | ( | ) |
Trading losses carried forward | 33,235 | - |
Deferred tax | (6,257 | ) | 14,524 |
Total tax (credit)/charge | (6,257 | ) | 128,474 |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Final |
9. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and | Motor |
property | property | machinery | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st November 2022 |
Additions |
At 31st October 2023 |
DEPRECIATION |
At 1st November 2022 |
Charge for year |
At 31st October 2023 |
NET BOOK VALUE |
At 31st October 2023 |
At 31st October 2022 |
Included in cost of land and buildings is freehold land of £ 399,757 (2022 - £ 399,757 ) which is not depreciated. |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors and prepayments |
Other taxation |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 13) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors and accruals |
Directors' current accounts | 12,697 | 22,713 |
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 13) |
13. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
National Westminster Bank PLC has a first legal charge over the company's freehold property and an unscheduled mortgage debenture incorporating a fixed and floating charge over all current and future assets of the company. |
16. | FINANCIAL INSTRUMENTS |
The company has the following financial instruments: |
Note | 2023 | 2022 |
£ | £ |
Financial assets at fair value through profit or loss | - | - |
Financial assets that are debt instruments measured at amortised |
- Trade receivables | 10 | 1,458,434 | 1,528,298 |
- Other debtors | 10 | 80,625 | 81,896 |
1,539,059 | 1,610,194 |
Financial liabilities measured at amortised cost |
- Trade creditors | 11 | 1,568,840 | 1,478,261 |
- Bank loans and overdrafts | 11, 12 | - | 136,133 |
- Other creditors | 11 | 113,532 | 101,189 |
1,682,372 | 1,715,583 |
17. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred taxation | 29,906 | 36,163 |
Deferred |
tax |
£ |
Balance at 1st November 2022 |
Provided during year | ( | ) |
Balance at 31st October 2023 |
H & M FREIGHT SERVICES LIMITED (REGISTERED NUMBER: 01917783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 82 | 82 |
Ordinary shares have full rights in the company with respect to voting and dividend. |
19. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1st November 2022 | 4,205,312 | 18 |
Deficit for the year | ( | ) | ( | ) |
Dividends | ( | ) | ( | ) |
At 31st October 2023 | 3,936,649 | 18 | 3,936,667 |
20. | PENSION COMMITMENTS |
2023 | 2022 |
Defined contribution schemes | £ | £ |
Charge to profit or loss in respect of defined contribution schemes | 18,926 | 19,110 |
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. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements |
22. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
At the year end the company owed H Malik £12,697 (2022: £22,713). |
23. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £51,000 were paid to the director . |
During the year the company received rent of £9,000 (2022: £9,000) from H & M Express Limited, a company connected to the director. |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties of the company are H Malik the director and Mrs N Malik his wife, who own 51% and 49% of the issued share capital respectively. |