Registration number:
Modular Logistics Group Limited
for the Year Ended 30 November 2023
Modular Logistics Group Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Modular Logistics Group Limited
Company Information
Directors |
M L Peterson A J Skelton M J Swan |
Registered office |
|
Auditors |
|
Modular Logistics Group Limited
Strategic Report for the Year Ended 30 November 2023
The Directors present their strategic report for the year ended 30 November 2023.
Principal activity
The principal activity of the Group is is that of renting and leasing trucks and other heavy vehciles
Fair review of the business
The Group has seen growth of 6% in the financial year with revenue reaching £13.5m for the period. Gross profit is relatively consistent at 15% and has been maintained despite increasing costs across large elements of the business due to the levels of inflation in the UK.
Despite this growth in £ gross profit the Group has suffered a large one off bad debt in the year which has seen a significant loss made. If this is excluded the profit before tax stands at just below £1.1m and highlights an excellent underlying trading position.
The Directors are confident that the Group will return to profitability in the next financial year with strong results at the 6 months stage of the year and also in its ability to cope with the bad debt incurred and the financial risks faced by Companies across the UK in a challenging economic climate.
The Group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2023 |
2022 |
Turnover |
£ |
13,550,892 |
12,743,682 |
Gross profit |
£ |
2,026,314 |
2,019,922 |
Gross profit % |
% |
15 |
16 |
PBT (excluding exceptional bad debts) |
£ |
1,089,102 |
1,351,414 |
Principal risks and uncertainties
The war in Ukraine together with high energy costs, increasing inflation and interest rates are challenges the business has faced over the last few financial years and continue to impact customer spending.
Currently however the Group is trading well and is well positioned to deal with any external pressures faced.
Approved and authorised by the
......................................... |
Modular Logistics Group Limited
Directors' Report for the Year Ended 30 November 2023
The Directors present their report and the for the year ended 30 November 2023.
Directors of the Group
The Directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The Group uses basic financial instruments, comprising cash, a debt factoring facility and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations.
Price risk, credit risk, liquidity risk and cash flow risk
The Group's principal financial instruments comprise of bank balances and debt factoring balances, trade debtors, trade creditors and hire purchase agreements.
The liquidity risk is managed by maintaining a balance between the need for continuity of funding and flexibility through the use of the debt factoring facility and hire purchase arrangements for vehicle purchases. All business cash balances are held in such a way that achieves a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to business customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the consolidated balance sheet are net of allowances for trade debtors.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due
Disclosure of information to the auditor
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 auditor is aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
Modular Logistics Group 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 Group and the Company and of the profit or loss of the Group for that period. In preparing these financial statements, the Directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and 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 Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Modular Logistics Group Limited
Independent Auditor's Report to the Members of Modular Logistics Group Limited
Opinion
We have audited the financial statements of Modular Logistics Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 November 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 Group's and the parent Company's affairs as at 30 November 2023 and of the Group's 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
Other information
The Directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Modular Logistics Group Limited
Independent Auditor's Report to the Members of Modular Logistics Group Limited
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent Company 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 Statement of Directors' Responsibilities [set out on page 4], 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 Group and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• |
Discussions with management held, including consideration of known or suspected instances of non-compliance. |
• |
Enquiries of management and the company's solicitors of actual and potential litigation claims. |
• |
Challenging assumptions and judgements made within significant accounting estimates and judgements such as useful economic life of assets and bad debt provisions. |
• |
Identification of key laws and regulations central to the Company's operations and review of compliance with such laws including a review of vehicle operators licence status and correspondence to identify any disciplinary action or ongoing issues. |
• |
Testing of journal entries and potential override of systems. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Modular Logistics Group Limited
Independent Auditor's Report to the Members of Modular Logistics Group Limited
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
26 South St. Mary's Gate
DN31 1LW
Modular Logistics Group Limited
Consolidated Profit and Loss Account for the Year Ended 30 November 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating (loss)/profit |
( |
|
|
Other interest receivable and similar income |
|
- |
|
Interest payable and similar expenses |
( |
( |
|
(131,423) |
(78,300) |
||
(Loss)/profit before tax |
( |
|
|
Tax on (loss)/profit |
|
( |
|
(Loss)/profit for the financial year |
( |
|
The Group has no recognised gains or losses for the year other than the results above.
Modular Logistics Group Limited
(Registration number: 09225439)
Consolidated Balance Sheet as at 30 November 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
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 |
6 |
6 |
|
Retained earnings |
814,572 |
1,480,636 |
|
Shareholders' funds |
814,578 |
1,480,642 |
Approved and authorised by the
......................................... |
Modular Logistics Group Limited
(Registration number: 09225439)
Balance Sheet as at 30 November 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
(2,068,868) |
(1,070,686) |
|
Net current liabilities |
( |
( |
|
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 |
6 |
6 |
|
Retained earnings |
901 |
49,516 |
|
Shareholders' funds |
907 |
49,522 |
The company made a profit after tax for the financial year of £95,386 (2022 - profit of £333,228).
Approved and authorised by the
......................................... |
Modular Logistics Group Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 November 2023
Equity attributable to the parent company
Share capital |
Retained earnings |
Total |
Total equity |
|
At 1 December 2022 |
|
|
|
|
Loss for the year |
- |
( |
( |
( |
Dividends |
- |
( |
( |
( |
At 30 November 2023 |
|
|
|
|
Share capital |
Retained earnings |
Total |
Total equity |
|
At 1 December 2021 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
( |
At 30 November 2022 |
6 |
1,480,636 |
1,480,642 |
1,480,642 |
Modular Logistics Group Limited
Statement of Changes in Equity for the Year Ended 30 November 2023
Share capital |
Retained earnings |
Total |
|
At 1 December 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 November 2023 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 December 2021 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 November 2022 |
6 |
49,516 |
49,522 |
Modular Logistics Group Limited
Consolidated Statement of Cash Flows for the Year Ended 30 November 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
(Loss)/profit for the year |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss on disposal of tangible assets |
|
|
|
Loss from disposals of investments |
- |
|
|
Finance income |
( |
- |
|
Finance costs |
|
|
|
Income tax expense |
( |
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
- |
|
Proceeds from sale of tangible assets |
|
|
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from other borrowing draw downs |
|
|
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 December |
|
|
|
Cash and cash equivalents at 30 November |
279,551 |
208,359 |
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
General information |
The company is a private company limited by share capital incorporated in United Kingdom and the company registration number is 09225439.
The address of its registered office is:
These financial statements were authorised for issue by the
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 United Kingdom and Republic of Ireland and the Companies Act 2006'.
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.
The financial statements have been prepared in sterling and are rounded to the nearest pound.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 30 November 2023.
No Profit and Loss Account is presented for the Company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £95,386 (2022 - profit of £333,228).
A subsidiary is an entity controlled by the Company. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the Group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the Company and its subsidiaries, which are related parties, are eliminated in full.
Going concern
The financial statements have been prepared on a going concern basis.
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Revenue recognition
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 Group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the Group.
The Group 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 Group's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, 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 group operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the Group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent 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 |
Motor vehicles |
16.67% straight line basis |
Furniture, fittings and equipment |
16.67% straight line basis |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
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.
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 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 Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
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.
Dividends
Dividend distribution to the Group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group 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.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Turnover |
The analysis of the Group's Turnover for the year by class of business is as follows:
2023 |
2022 |
|
Transport and haulage |
|
|
Storage revenue |
|
|
Other miscellaneous services |
|
|
|
|
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Other operating income |
The analysis of the Group's other operating income for the year is as follows:
2023 |
2022 |
|
Government grants |
- |
|
Other gains and losses |
The analysis of the Group's other gains and losses for the year is as follows:
2023 |
2022 |
|
Loss on disposal of Tangible assets |
( |
( |
Loss from disposals of investments |
- |
( |
(1,661) |
(7,600) |
Operating (loss)/profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Operating lease expense - property |
|
|
Operating lease expense - plant and machinery |
|
( |
Loss 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 |
|
|
Interest expense on other finance liabilities |
|
|
|
|
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 |
|
|
|
|
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
The average number of persons employed by the Group (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 |
|
- |
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
( |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax (receipt)/expense in the income statement |
( |
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher 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 |
( |
|
Increase from effect of different UK tax rates on some earnings |
|
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
( |
- |
Tax increase from effect of capital allowances and depreciation |
|
|
Total tax (credit)/charge |
( |
|
From 1 April 2023 the main rate of UK Corporation Tax increased from 19% to 25% meaning the effective rate of tax for the period ended 30 November 2023 equated to 23%
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Capital allowances and depreciation |
- |
|
- |
|
2022 |
Asset |
Liability |
Capital allowances and depreciation |
- |
|
- |
|
Company
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Capital allowances and depreciation |
- |
|
- |
|
2022 |
Asset |
Liability |
Capital allowances and depreciation |
- |
|
- |
|
Tangible assets |
Group
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
|||
At 1 December 2022 |
|
|
|
Additions |
- |
|
|
Disposals |
- |
( |
( |
At 30 November 2023 |
|
|
|
Depreciation |
|||
At 1 December 2022 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
- |
( |
( |
At 30 November 2023 |
|
|
|
Carrying amount |
|||
At 30 November 2023 |
|
|
|
At 30 November 2022 |
|
|
|
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Company
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
|||
At 1 December 2022 |
|
|
|
Additions |
- |
|
|
Disposals |
- |
( |
( |
At 30 November 2023 |
|
|
|
Depreciation |
|||
At 1 December 2022 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
- |
( |
( |
At 30 November 2023 |
|
|
|
Carrying amount |
|||
At 30 November 2023 |
|
|
|
At 30 November 2022 |
|
|
|
Investments |
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 December 2022 |
|
Provision |
|
At 1 December 2022 & 30 November 2023 |
- |
Carrying amount |
|
At 30 November 2023 |
|
At 30 November 2022 |
|
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Details of undertakings
Details of the investments in which the Company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
United Kingdom |
|
|
|
|
United Kingdom |
|
|
|
Debtors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Trade debtors |
|
|
- |
|
|
Amounts owed by related parties |
- |
- |
|
- |
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
- |
- |
|
Accrued income |
|
|
|
|
|
Income tax asset |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash at bank |
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
- |
- |
|
|
|
Social security and other taxes |
|
|
|
|
|
Other payables |
|
|
|
|
|
Accruals |
|
|
|
|
|
Income tax liability |
29,604 |
207,726 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
|
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 December 2022 |
|
|
Increase (decrease) in existing provisions |
|
|
At 30 November 2023 |
|
|
|
Company
Deferred tax |
Total |
|
At 1 December 2022 |
|
|
Increase (decrease) in existing provisions |
|
|
At 30 November 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The Group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Group to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
6 |
|
6 |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Reserves |
Group
Called up share capital
Share capital comprises of the value of issued share capital at par in the parent company.
Retained earnings
The profit and loss account consists of profits made by the group attributable to the shareholders of the parent company.
Company
Called up share capital
Share capital comprises of the value of issued share capital at par in the company.
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Retained earnings
The profit and loss account consists of profits made by the group attributable to the shareholders of the company.
Loans and borrowings |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Non-current loans and borrowings |
||||
Hire purchase contracts |
|
|
- |
|
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Current loans and borrowings |
||||
Hire purchase contracts |
|
|
|
|
Other borrowings |
|
|
- |
|
|
|
|
|
Group
Other borrowings
Included within other borrowings is a debt factoring facility denominated in sterling . The carrying amount at the year end is £1,328,122 (2022 - £946,637).
The liability is secured by a fixed and floating charge over all property and other undertakings of the Group.
Hire purchase liabilities are denominated in sterling . The carrying amount at the year end is £1,560,226 (2022 - £1,289,037).
Hire purchase contracts are secured against the assets to which they relate.
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Analysis of changes in net debt |
Group
At 1 December 2022 |
Financing cash flows |
New finance leases |
At 30 November 2023 |
|
Cash and cash equivalents |
||||
Cash |
208,359 |
71,192 |
- |
279,551 |
Borrowings |
||||
Short term borrowings |
946,637 |
381,485 |
- |
1,328,122 |
Lease liabilities |
1,289,037 |
(675,922) |
947,111 |
1,560,226 |
2,235,674 |
(294,437) |
947,111 |
2,888,348 |
|
|
||||
|
( |
|
|
Related party transactions |
Group
Other transactions with Directors |
Dividends paid to directors and close family members during the year total £144,000 (2022: £294,000).
Summary of transactions with entities with joint control or significant interest
Income and receivables from related parties
2023 |
Entities with joint control or significant influence |
Directors & key |
Sale of goods |
|
- |
Amounts receivable from related party |
|
|
|
2022 |
Entities with joint control or significant influence |
Directors & key |
Sale of goods |
|
- |
Amounts receivable from related party |
|
- |
|
Expenditure with and payables to related parties
2023 |
Entities with joint control or significant influence |
Directors & key |
Purchase of goods |
|
- |
Amounts payable to related party |
|
- |
|
Modular Logistics Group Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
2022 |
Entities with joint control or significant influence |
Directors & key |
Purchase of goods |
|
- |
Amounts payable to related party |
|
|
|
Loans to related parties
2023 |
Entities with joint control or significant influence |
At end of period |
36,876 |
|
2022 |
Entities with joint control or significant influence |
At end of period |
34,376 |
|
Company
Income and receivables from related parties
2023 |
Entities with joint control or significant influence |
Key management |
Sale of goods |
|
- |
Amounts receivable from related party |
- |
|
|
2022 |
Entities with joint control or significant influence |
Amounts receivable from related party |
|
|
Expenditure with and payables to related parties
2023 |
Entities with joint control or significant influence |
Purchase of goods |
|
|
2022 |
Entities with joint control or significant influence |
Key management |
Purchase of goods |
|
- |
Amounts payable to related party |
- |
|
|