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Registration number: 03848064

South Molton Transport Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 August 2023

 

South Molton Transport Limited

Contents

Statement of Financial Position

1 to 2

Notes to the Unaudited Financial Statements

3 to 9

 

South Molton Transport Limited

(Registration number: 03848064)
Statement of Financial Position as at 31 August 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

-

725

Tangible assets

5

1,764,784

1,194,225

 

1,764,784

1,194,950

Current assets

 

Debtors

6

1,890,360

1,017,993

Cash at bank and in hand

 

98,094

32,906

 

1,988,454

1,050,899

Creditors: Amounts falling due within one year

7

(1,742,839)

(604,316)

Net current assets

 

245,615

446,583

Total assets less current liabilities

 

2,010,399

1,641,533

Creditors: Amounts falling due after more than one year

7

(894,567)

(572,586)

Provisions for liabilities

(319,387)

(295,416)

Net assets

 

796,445

773,531

Capital and reserves

 

Called up share capital

10

10

Profit and loss account

796,435

773,521

Shareholders' funds

 

796,445

773,531

For the financial year ending 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Statement of Comprehensive Income.

Approved and authorised by the director on 30 August 2024
 

 

South Molton Transport Limited

(Registration number: 03848064)
Statement of Financial Position as at 31 August 2023 (continued)


Mr Christopher Morris
Director

 

South Molton Transport Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023

1

General information

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

The address of its registered office is:
M & B Plant Yard
Hacche Lane
Pathfields Business Park
South Molton
Devon
EX36 3LH
United Kingdom

Principal activity

The principal activity of the company is of road hauliers, plant hire and servicing.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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 are prepared in sterling which is the functional currency of the entity.

Going concern

The financial statements have been prepared on a going concern basis.

 

South Molton Transport Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023 (continued)

2

Accounting policies (continued)

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

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 company’s activities. Turnover is shown net of 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.

Tax

The tax expense for the period comprises 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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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

10% reducing balance

 

South Molton Transport Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023 (continued)

2

Accounting policies (continued)

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

5% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, 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. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

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 statement of comprehensive income over the period of the relevant borrowing.

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

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

 

South Molton Transport Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023 (continued)

2

Accounting policies (continued)

Leases

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

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

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

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 30 (2022 - 31).

 

South Molton Transport Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023 (continued)

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 September 2022

14,500

14,500

At 31 August 2023

14,500

14,500

Amortisation

At 1 September 2022

13,775

13,775

Amortisation charge

725

725

At 31 August 2023

14,500

14,500

Carrying amount

At 31 August 2023

-

-

At 31 August 2022

725

725

5

Tangible assets

Motor vehicles
 £

Total
£

Cost or valuation

At 1 September 2022

1,729,001

1,729,001

Additions

875,759

875,759

Disposals

(159,500)

(159,500)

At 31 August 2023

2,445,260

2,445,260

Depreciation

At 1 September 2022

534,776

534,776

Charge for the year

189,423

189,423

Eliminated on disposal

(43,723)

(43,723)

At 31 August 2023

680,476

680,476

Carrying amount

At 31 August 2023

1,764,784

1,764,784

At 31 August 2022

1,194,225

1,194,225

 

South Molton Transport Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023 (continued)

6

Debtors

2023
£

2022
£

Trade debtors

168,016

368,625

Amounts owed by related parties

317,856

240,000

Other debtors

1,209,613

351,955

Prepayments

35,039

6,241

Income tax asset

159,836

51,172

1,890,360

1,017,993

7

Creditors

Creditors: amounts falling due within one year

2023
£

2022
£

Due within one year

Loans and borrowings

418,927

337,917

Trade creditors

200,757

135,710

Taxation and social security

584,465

128,689

Accruals and deferred income

3,000

2,000

Other creditors

535,690

-

1,742,839

604,316


Hire purchase liabilities are secured against the asset to which they relate.

Bank loan liabilities are secured by personal guarantees against the company directors.

 

South Molton Transport Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023 (continued)

7

Creditors (continued)

Creditors: amounts falling due after more than one year

2023
£

2022
£

Due after one year

Loans and borrowings

894,567

572,586


Hire purchase liabilities are secured against the asset to which they relate.

Bank loan liabilities are secured by personal guarantees against the company directors.

8

Reserves

Profit and loss account:

This reserve records retained earnings and accumulated losses.

9

Related party transactions

Transactions with the director

2023

At 1 September 2022
£

Advances to director
£

Repayments by director
£

At 31 August 2023
£

Director

351,955

375,967

(54,000)

673,922

         
       

 

2022

At 1 September 2021
£

Advances to director
£

Repayments by director
£

At 31 August 2022
£

Director

350,523

55,432

(54,000)

351,955

 

Other transactions with the director

Directors' loans are repayable on demand and subject to interest on overdrawn balances at the official rate.