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REGISTERED NUMBER: 04089198 (England and Wales)




















United Pallet Network (UK) Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2024






United Pallet Network (UK) Limited (Registered number: 04089198)






Contents of the Financial Statements
for the year ended 31 March 2024




Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 9

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13 to 20


United Pallet Network (UK) Limited

Company Information
for the year ended 31 March 2024







DIRECTORS: Mr D J Brown
Mr M B Chapman
Mr A J Lowe
Mr G S Allard
Mr N Chappelow
Mr S J Fuller





SECRETARY: Mr G S Allard





REGISTERED OFFICE: 8 High View Close
Vantage Business Park
Leicester
Leicestershire
LE4 9LJ





REGISTERED NUMBER: 04089198 (England and Wales)





AUDITORS: Clifford Roberts
Chartered Accountants &
Statutory Auditors
Pacioli House
9 Brookfield
Duncan Close
Northampton
Northamptonshire
NN3 6WL

United Pallet Network (UK) Limited (Registered number: 04089198)

Strategic Report
for the year ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

REVIEW OF BUSINESS
Turnover for the year under review was £13,491,754 compared to £14,109,858 for the year ended 31 March 2023, an decrease of 4.4%. Profit before taxation for the year was £2,794,554 compared to £4,992,609 for the prior year.

At the year end, the company had shareholders' funds of £3,978,822 including distributable reserves of £3,975,622. The directors, therefore, believe the company's position is satisfactory and are optimistic for the future, especially as the company's current assets exceed its current liabilities by £3,566,262.

PRINCIPAL RISKS AND UNCERTAINTIES
The process of risk acceptance and risk management is addressed through a framework of policies, procedures, and internal controls. All policies are subject to Board approval and ongoing review by the directors and management. Compliance with regulation, legal and ethical standards is a high priority for the company.

The company has developed a framework for identifying the risks it faces and the directors have assessed the main risks to the business as being its dependency on the performance of the UK economy: The company provides services to businesses primarily in the UK and is, therefore, dependent on the performance of the UK economy.

The directors are confident of continued growth and long-term stability of the business, with pallet numbers and membership increasing.

The company finances its business through its shareholder funds and so the impact of any fluctuation in the bank interest rate is irrelevant.

FUTURE DEVELOPMENTS
The company continues to grow in respect of the number of members joining and number of pallets moved on a nightly basis. The company will continue to develop its internal systems and IT infrastructure in the coming year which will maintain UPN's position as a market leader within the pallet sector.

Environmental Management
The company continues to evaluate its environmental impact and sustainability commitments. It strives to continually reduce its electricity and water consumption, reduce landfill waste and increase recycling and has increased the number of electric and hybrid fleet vehicles alongside the migration over to electric forklift trucks.

As a sector first, all deliveries through the network will be done on a Carbon Neutral basis, working in partnership with Carbon Neutral Britain to offset the CO2 emissions through accredited offset projects. Fully certified by independent bodies the company will be the first pallet network to offset its CO2 delivery emissions.


United Pallet Network (UK) Limited (Registered number: 04089198)

Strategic Report
for the year ended 31 March 2024

KEY PERFORMANCE INDICATORS
We have made significant progress throughout the year in relation to the key elements of our strategy, the board monitors the progress by reference to the following KPI's:

2024 2023

Increase/(decrease) in turnover (4.4%) 3.3%

Gross profit percentage 73.1% 75.3%

Operating profit percentage 20.7% 35.3%

Liquidity ratio 1.95 2.07

All of the above ratios are defined in UK Generally Accepted Accounting Practice.

ON BEHALF OF THE BOARD:





Mr D J Brown - Director


30 July 2024

United Pallet Network (UK) Limited (Registered number: 04089198)

Report of the Directors
for the year ended 31 March 2024

The directors present their report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of a transport hub.

DIVIDENDS
The directors recommend interim dividends per share as follows:

Ordinary A £0.01 shares £11.57
Ordinary B £0.01 shares £5.00
Ordinary C £0.01 shares £-

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31st March, 2024 will be £2,510,000.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

Mr D J Brown
Mr M B Chapman
Mr A J Lowe
Mr G S Allard
Mr N Chappelow
Mr S J Fuller

DISCLOSURE IN THE STRATEGIC REPORT
The disclosures relating to events occurring after the year end, likely future developments and research and development activities are disclosed within the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are 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 each director 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.

United Pallet Network (UK) Limited (Registered number: 04089198)

Report of the Directors
for the year ended 31 March 2024


AUDITORS
The auditors, Clifford Roberts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr D J Brown - Director


30 July 2024

Report of the Independent Auditors to the Members of
United Pallet Network (UK) Limited

Opinion
We have audited the financial statements of United Pallet Network (UK) Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
United Pallet Network (UK) 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 Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
United Pallet Network (UK) 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We obtained an understanding of the legal and regulatory framework applicable to the company and
the sector in which they operate. We determined that the following laws and regulations were most
significant: the Companies Act 2006, UK Generally Accepted Accounting Practice and UK corporate
taxation laws.
- We obtained an understanding of how the company is complying with those legal and regulatory
frameworks by making inquiries to the management and by observing the oversight of management,
the culture of honesty and ethical behaviour and whether strong emphasis is placed on fraud
prevention, which may reduce the opportunities for fraud to take place, and fraud deterrence, which
could persuade individuals not to commit fraud in the first instance . We corroborated our inquiries
through our review of all relevant available audit information.
- We have assessed and understood the susceptibility of the company's financial statements to material
misstatement, including how fraud might occur. Based on this understanding we designed our audit
procedures to identify non-compliance with such laws and regulations. The audit procedures
performed by the engagement team included:
> identifying and assessing the design and effectiveness of controls management has in place to
prevent and detect fraud;
> understanding of how senior management considered and addressed the potential for override of
controls or other inappropriate influence over the financial reporting process;
> challenging assumptions and judgements made by management in its significant accounting
estimates;
> performing audit work over the risk of management override of controls, including testing of journal
entries and other adjustments for appropriateness, evaluating the business rationale of significant
transactions outside the normal course of business and reviewing accounting estimates for bias;
and,
> assessing the extent of compliance with relevant laws and regulations.

Due to 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 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.

Report of the Independent Auditors to the Members of
United Pallet Network (UK) 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 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.




Adam Billingham BA (Hons) BFP FCA (Senior Statutory Auditor)
for and on behalf of Clifford Roberts
Chartered Accountants &
Statutory Auditors
Pacioli House
9 Brookfield
Duncan Close
Northampton
Northamptonshire
NN3 6WL

30 July 2024

United Pallet Network (UK) Limited (Registered number: 04089198)

Statement of Comprehensive
Income
for the year ended 31 March 2024

2024 2023
Notes £    £   

TURNOVER 4 13,491,754 14,109,858

Cost of sales 3,635,859 3,484,438
GROSS PROFIT 9,855,895 10,625,420

Administrative expenses 7,135,117 5,646,599
OPERATING PROFIT 6 2,720,778 4,978,821

Interest receivable and similar income 73,776 20,139
2,794,554 4,998,960

Interest payable and similar expenses 7 - 6,351
PROFIT BEFORE TAXATION 2,794,554 4,992,609

Tax on profit 8 722,725 966,810
PROFIT FOR THE FINANCIAL YEAR 2,071,829 4,025,799

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,071,829

4,025,799

United Pallet Network (UK) Limited (Registered number: 04089198)

Balance Sheet
31 March 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 439,435 643,365

CURRENT ASSETS
Stocks 11 48,092 90,930
Debtors 12 4,405,416 4,484,153
Cash at bank and in hand 2,870,744 2,801,941
7,324,252 7,377,024
CREDITORS
Amounts falling due within one year 13 3,757,990 3,569,243
NET CURRENT ASSETS 3,566,262 3,807,781
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,005,697

4,451,146

PROVISIONS FOR LIABILITIES 16 26,875 34,153
NET ASSETS 3,978,822 4,416,993

CAPITAL AND RESERVES
Called up share capital 17 3,200 3,200
Retained earnings 18 3,975,622 4,413,793
SHAREHOLDERS' FUNDS 3,978,822 4,416,993

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2024 and were signed on its behalf by:





Mr D J Brown - Director


United Pallet Network (UK) Limited (Registered number: 04089198)

Statement of Changes in Equity
for the year ended 31 March 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 April 2022 3,200 4,387,994 4,391,194

Changes in equity
Dividends - (4,000,000 ) (4,000,000 )
Total comprehensive income - 4,025,799 4,025,799
Balance at 31 March 2023 3,200 4,413,793 4,416,993

Changes in equity
Dividends - (2,510,000 ) (2,510,000 )
Total comprehensive income - 2,071,829 2,071,829
Balance at 31 March 2024 3,200 3,975,622 3,978,822

United Pallet Network (UK) Limited (Registered number: 04089198)

Notes to the Financial Statements
for the year ended 31 March 2024

1. COMPANY INFORMATION

The entity is a limited company incorporated within the UK. Its registered office is:

8 High View Close
Vantage Business Park
Leicester
Leicestershire
LE4 9LJ

and principal place of business is:

Common Lane
Fradley Park
Lichfield
Staffordshire
WS13 8NQ

The company carries out the principal activity of a palletised freight network within the UK.

2. STATUTORY INFORMATION

United Pallet Network (UK) 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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.

The financial statements are presented in Sterling (£).

Going Concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements after taking into account the potential impact of current global issues on the company.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

There are no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

United Pallet Network (UK) Limited (Registered number: 04089198)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

3. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents the invoiced amount of goods sold, stated net of value added tax. The turnover and pre-tax profit is attributable to the Hub charges which are recognised at the point the service is provided and membership fees which have been deferred over the period of the membership.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 25% on cost
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Software development - 25% on reducing balance

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affect asset is estimated and compared with the carrying amount. If estimated recoverable amount is lower, the carry amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment subsequently reserves, the carrying amount of the asset is increased to revised the estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 balance sheet date.

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

United Pallet Network (UK) Limited (Registered number: 04089198)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

3. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Trade 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.

Trade creditors
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised costs using the effective interest method.

Provisions for liabilities
Provisions are recognised when the group has a present legal or constructive obligation as a result of a past event, it is probable that the group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking in to account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost int he profit or loss in the period it arises.

The company recognises a provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months. The provision is measured at the salary cost payable for the period of absence.

4. TURNOVER

The company classifies its revenue as all generated from within the UK and all funds generated by one class of business.

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 4,973,915 4,123,984
Social security costs 560,528 473,492
Other pension costs 99,005 79,246
5,633,448 4,676,722

United Pallet Network (UK) Limited (Registered number: 04089198)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2024 2023

Director 6 6
Administrative 31 31
Warehousing 70 71
107 108

2024 2023
£    £   
Directors' remuneration 1,051,232 607,505
Directors' pension contributions to money purchase schemes 29,246 23,754

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 453,625 365,724
Pension contributions to money purchase schemes - 18,924

6. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Hire of plant and machinery 339,093 361,179
Depreciation - owned assets 287,746 297,144
Loss on disposal of fixed assets 4,108 2,889
Auditors' remuneration 7,450 6,950

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Other interest payable - 6,351

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 772,593 988,155
Overprovision in prior years (42,589 ) (32,788 )
Total current tax 730,004 955,367

Deferred tax (7,279 ) 11,443
Tax on profit 722,725 966,810

United Pallet Network (UK) Limited (Registered number: 04089198)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

8. TAXATION - continued

Reconciliation of total tax 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:

2024 2023
£    £   
Profit before tax 2,794,554 4,992,609
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19%)

698,639

948,596

Effects of:
Expenses not deductible for tax purposes 17,963 777
Depreciation in excess of capital allowances 54,966 38,234
Adjustments to tax charge in respect of previous periods (42,590 ) (32,788 )
Profit/Loss on sale of fixed assets 1,026 548
Movement on deferred tax (7,279 ) 11,443
Total tax charge 722,725 966,810

9. DIVIDENDS
2024 2023
£    £   
Ordinary A shares of 1p each
Interim 2,110,000 4,000,000
Ordinary B shares of 1p each
Interim 400,000 -
2,510,000 4,000,000

10. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and
leasehold machinery fittings
£    £    £   
COST
At 1 April 2023 1,079,539 239,356 155,380
Additions - 6,374 16,000
Disposals - (333 ) (13,252 )
At 31 March 2024 1,079,539 245,397 158,128
DEPRECIATION
At 1 April 2023 701,466 83,788 67,548
Charge for year 227,243 30,752 22,728
Eliminated on disposal - (248 ) (9,339 )
At 31 March 2024 928,709 114,292 80,937
NET BOOK VALUE
At 31 March 2024 150,830 131,105 77,191
At 31 March 2023 378,073 155,568 87,832

United Pallet Network (UK) Limited (Registered number: 04089198)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

10. TANGIBLE FIXED ASSETS - continued

Motor Software
vehicles development Totals
£    £    £   
COST
At 1 April 2023 49,400 2,394 1,526,069
Additions 65,550 - 87,924
Disposals - (1,769 ) (15,354 )
At 31 March 2024 114,950 625 1,598,639
DEPRECIATION
At 1 April 2023 27,927 1,975 882,704
Charge for year 6,921 102 287,746
Eliminated on disposal - (1,659 ) (11,246 )
At 31 March 2024 34,848 418 1,159,204
NET BOOK VALUE
At 31 March 2024 80,102 207 439,435
At 31 March 2023 21,473 419 643,365

11. STOCKS
2024 2023
£    £   
Stocks 48,092 90,930

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,112,954 3,379,278
Other debtors 140,657 232,081
Tax 169,806 -
Prepayments and accrued income 981,999 872,794
4,405,416 4,484,153

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,397,291 1,141,565
Amounts owed to group undertakings 1,352 3,573
Tax - 638,155
Social security and other taxes 572,706 121,762
Net wages 11,133 10,341
VAT 523,389 579,794
Other creditors 302,085 68,329
Accruals and deferred income 950,034 1,005,724
3,757,990 3,569,243

There is a fixed charge over all assets present assets and a first floating charge over all assets or undertakings of United Pallet Network (UK) Limited, present and future, in favour of HSBC UK Bank PLC.

United Pallet Network (UK) Limited (Registered number: 04089198)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 2,439,738 2,386,747
Between one and five years 4,936,393 6,317,170
In more than five years 5,884,952 6,616,506
13,261,083 15,320,423

15. FINANCIAL RISK MANAGEMENT

The company has some exposure to credit, network, liquidity and cash flow interest rate risks, These risks are limited by the company's financial management policies and practices described below.

Foreign currency risk
The company has no exposure to foreign currency risks as all of the company's sales and purchases are denominated in sterling.

Credit risk
The company offer credit terms to its customers which allows payment of the debt at a future specified time. The company mitigates this risk by maintaining strong customer relationships and regular analysis its sales ledger for troubled customers, but as an ultimate failsafe the group and its members are able to take advantage of the safeguard fund.

Liquidity risk
The directors have ultimate responsibility for liquidity risk management in maintaining adequate reserves and banking facilities. Currently based on the cash reserves this is not deemed a significant risk.

Market risk
There is a market risk associated with the fluctuation in demand for the products and services provided. Most of this is mitigated by monitoring the markets and implementing strategies to deal with the identified risks.

Network coverage risk
The company is exposed to the risk of member either leaving the network or going into liquidation which impacts on network coverage. This is mitigated by continually reviewing the members area coverage and if required consolidation of that area, a continual drive to recruit new members, particularly in specific regions and the network support charge which helps fund areas in need of coverage.

The company holds no derivative financial instruments at the year end.

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 26,875 34,153

Deferred
tax
£   
Balance at 1 April 2023 34,153
Provided during year (7,278 )
Balance at 31 March 2024 26,875

United Pallet Network (UK) Limited (Registered number: 04089198)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

16. PROVISIONS FOR LIABILITIES - continued

The deferred tax balance has arisen as a result of timing differences on the addition of fixed assets and the tax relief thereon.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
182,400 Ordinary A 1p 1,824 1,824
80,000 Ordinary B 1p 800 800
57,600 Ordinary C 1p 576 576
3,200 3,200

Called Up Share Capital - represents the nominal value of shares that have been issued.

18. RESERVES
Retained
earnings
£   

At 1 April 2023 4,413,793
Profit for the year 2,071,829
Dividends (2,510,000 )
At 31 March 2024 3,975,622

Retained Earnings - includes all current and prior period retained profits and losses.

19. RELATED PARTY DISCLOSURES

During the year the company traded with related parties, all balance outstanding at the year end were trading balances and the payment of these outstanding items to fall within the normal terms of business.


Sales/Rechar
ges

Purchases
Sales
Ledger
Purchase
Ledger

Dividends
£ £ £ £ £

Control or significant influence - 1,062,424 - 1,352 2,500,000
The entity has significant
influence

14,951,483

609,268

3,093,333

87,741

-
Key management personnel - - - - -
Other related parties - - - - 10,000
14,951,483 1,671,692 3,093,333 89,093 2,510,000

20. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is March (Holdings) Limited, whose registered office is 8 High View Close, Vantage Business Park, Leicester, Leicestershire, LE4 9LJ.