Company registration number 11795399 (England and Wales)
ALS CUSTOMS UK LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ALS CUSTOMS UK LIMITED
COMPANY INFORMATION
Directors
J Dykhuizen
G Hollington
R Revyn
Company number
11795399
Registered office
Liverpool Road
Eccles
Manchester
Lancashire
United Kingdom
M30 7RF
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
ALS CUSTOMS UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
14
Notes to the financial statements
15 - 25
ALS CUSTOMS UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Business review

During 2023 the ALS Group of companies continued to focus on their core business, providing timely, accurate and value add international customs solutions and services to their customers.

2023 was another excellent year for the group financially, turnover increased by 4% to £6.9m in 2023, following on from an exceptionally strong performance of £6.6m in 2022 and operating profit, whilst decreasing compared to 2022, remained strong at £1.05m. Underlying inflationary pressure continued throughout the year, putting pressure on all lines of employee related and operational expenses.

2023 saw further significant investment in the business, especially in people and systems to support future growth and to help maintain exceptional service to customers. The company continues to focus on process improvements and training for employees, to constantly drive gains in employee satisfaction, quality and efficiency.

2024 is expected to bring similar challenges to 2023 with regards to ongoing global political/economic uncertainty, but a reduction in the pace of underlying inflationary cost pressure is anticipated. The directors believe the company remains very well positioned and are optimistic about delivering solid financial results in the future.

Principal risks and uncertainties

There are numerous uncertainties for UK Customs companies when looking to the future including; further changes to the International customs environment, systems & processes; inflationary pressures within the UK market, and wider global political/economic uncertainty. However, the directors continue to monitor and wherever possible put mitigation actions in place to manage risk in general.

Developments and future outlook

The company continues to look for opportunities to develop its business within traditional as well as new sectors.

Financial risk management objectives and policies

As well as short term trade receivables and trade payables that arise directly from operations, the company’s financial instruments comprise of cash and lease payables. The objectives of holding financial instruments is to raise finance for the company’s operations and manage related risks. The company’s activities expose the company to a number of risks including interest rate risk, credit risk, liquidity risk and exchange risk. The company manages these risks by regularly monitoring the business and providing ongoing forecasts of the expected impacts.

Interest rate risk

The company's interest rate risk exposure arises mainly from interest-bearing borrowings, including intra-group loans. Contractual agreements entered into at floating rates expose the entity to cash flow risk, fixed rate borrowings under finance leases exposes the entity to fair value risk. The company regularly reviews its funding arrangements to ensure they are competitive within the market place.

Credit risk

The company monitors credit risk closely and considers that its current policies of credit checks meet its objectives of managing exposure to credit risk.

Liquidity risk

The company closely monitors its bank balance, intra-group trading and external borrowings and other credit facilities in comparison to its outstanding commitments to ensure it has sufficient funds to meet its obligations as they fall due. The company's finance function produces regular forecasts that estimate cash inflows and outflows for the next 12 months, so that management can ensure sufficient funding is in place as it is required. The company's objective is to maintain a balance between the continuity of funding and flexibility.

Currency risk

The company closely monitors its exposure to currency risk, the directors currently consider risk in this area to be low.

ALS CUSTOMS UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

G Hollington
Director
12 July 2024
ALS CUSTOMS UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of international customs services.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J Dykhuizen
G Hollington
R Revyn
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the group's financial risk management objectives and policies.

ALS CUSTOMS UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
G Hollington
Director
12 July 2024
ALS CUSTOMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALS CUSTOMS UK LIMITED
- 5 -
Opinion

We have audited the financial statements of ALS Customs UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ALS CUSTOMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALS CUSTOMS UK LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

ALS CUSTOMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALS CUSTOMS UK LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

 

 

 

ALS CUSTOMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALS CUSTOMS UK LIMITED
- 8 -

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.

Graham Rigby (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
12 July 2024
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
ALS CUSTOMS UK LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Turnover
3
6,873,956
6,588,121
Cost of sales
(1,432,955)
(1,658,214)
Gross profit
5,441,001
4,929,907
Administrative expenses
(4,381,881)
(3,615,151)
Other operating expenses
(8,029)
(552)
Operating profit
4
1,051,091
1,314,204
Interest receivable and similar income
80,325
204,801
Interest payable and similar expenses
(197,670)
(393,954)
Profit before taxation
933,746
1,125,051
Tax on profit
6
(381,460)
(340,428)
Profit for the financial year
552,286
784,623
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ALS CUSTOMS UK LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
7
5,377,675
6,029,514
Tangible assets
8
68,918
67,342
5,446,593
6,096,856
Current assets
Debtors
11
6,310,629
5,223,133
Cash at bank and in hand
2,756
462,479
6,313,385
5,685,612
Creditors: amounts falling due within one year
12
(1,757,727)
(2,331,204)
Net current assets
4,555,658
3,354,408
Total assets less current liabilities
10,002,251
9,451,264
Creditors: amounts falling due after more than one year
13
(8,439,044)
(8,439,044)
Provisions for liabilities
Deferred tax liability
14
-
0
1,299
-
(1,299)
Net assets
1,563,207
1,010,921
Capital and reserves
Called up share capital
16
1
1
Profit and loss reserves
1,563,206
1,010,920
Total equity
1,563,207
1,010,921
The financial statements were approved by the board of directors and authorised for issue on 12 July 2024 and are signed on its behalf by:
12 July 2024
G Hollington
Director
Company registration number 11795399 (England and Wales)
ALS CUSTOMS UK LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
10
8,481,244
8,481,244
Current assets
Debtors
11
143,709
143,634
Creditors: amounts falling due within one year
12
(185,908)
(185,833)
Net current liabilities
(42,199)
(42,199)
Total assets less current liabilities
8,439,045
8,439,045
Creditors: amounts falling due after more than one year
13
(8,439,044)
(8,439,044)
Net assets
1
1
Capital and reserves
Called up share capital
16
1
1

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2022 - £0 profit).

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 12 July 2024 and are signed on its behalf by:
12 July 2024
G Hollington
Director
Company Registration No. 11795399
ALS CUSTOMS UK LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1
226,297
226,298
Year ended 31 December 2022:
Profit and total comprehensive income
-
784,623
784,623
Balance at 31 December 2022
1
1,010,920
1,010,921
Year ended 31 December 2023:
Profit and total comprehensive income
-
552,286
552,286
Balance at 31 December 2023
1
1,563,206
1,563,207
ALS CUSTOMS UK LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
445,564
374,666
Interest paid
(197,670)
(393,954)
Income taxes paid
(755,275)
(80,301)
Net cash outflow from operating activities
(507,381)
(99,589)
Investing activities
Purchase of subsidiary
-
(8,481,241)
Cash acquired on purchase of subsidiary
-
74,056
Purchase of tangible fixed assets
(34,795)
(9,016)
Proceeds from disposal of tangible fixed assets
2,128
-
Interest received
80,325
204,801
Net cash generated from/(used in) investing activities
47,658
(8,211,400)
Financing activities
Increase in borrowings
-
8,439,044
Net cash (used in)/generated from financing activities
-
8,439,044
Net (decrease)/increase in cash and cash equivalents
(459,723)
128,055
Cash and cash equivalents at beginning of year
462,479
334,424
Cash and cash equivalents at end of year
2,756
462,479
ALS CUSTOMS UK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
£
Balance at 1 January 2022
1
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
Balance at 31 December 2022
1
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
Balance at 31 December 2023
1
ALS CUSTOMS UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

ALS Customs UK Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Liverpool Road, Eccles, Manchester, Lancashire, United Kingdom, M30 7RF.

 

The group consists of ALS Customs UK Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company ALS Customs UK Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

The directors have assessed the business for the forthcoming 12 months along with the confirmation of continued support from a related party. The directors consider that the group has sufficient funds to continue to settle liabilities as they fall due.

1.4
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

 

ALS CUSTOMS UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
10 years
Plant and equipment
3 - 20 years
Computers
3 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Investments in subsidiary undertakings are initially measured at cost and reviewed annually for impairment. If an impairment loss is identified, this is recognised immediately in the profit and loss account and the value of the investment is reduced accordingly.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest. Financial assets classified as receivable within one year are not amortised.

ALS CUSTOMS UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

ALS CUSTOMS UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
International customs services
6,873,956
6,588,121
2023
2022
£
£
Turnover analysed by geographical market
UK
5,579,390
5,272,515
Europe
1,294,213
1,310,341
Rest of world
353
5,265
6,873,956
6,588,121
ALS CUSTOMS UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
31,091
26,918
Auditor's remuneration
16,880
16,000
Fee paid to auditor for non audit services
3,670
3,500
Amortisation of intangible assets
651,839
488,880
Operating lease charges and related expenses
125,207
100,498
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
68
49
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,117,792
2,241,489
-
0
-
0
Social security costs
209,042
141,957
-
-
Pension costs
60,838
30,511
-
0
-
0
2,387,672
2,413,957
-
0
-
0
6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
380,583
333,523
Adjustments in respect of prior periods
3,858
4,868
Total current tax
384,441
338,391
ALS CUSTOMS UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
-
0
8,664
Adjustment in respect of prior periods
(2,981)
(6,627)
Total deferred tax
(2,981)
2,037
Total tax charge
381,460
340,428

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
933,746
1,125,051
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
219,617
213,760
Tax effect of expenses that are not deductible in determining taxable profit
160,966
128,427
Adjustments in respect of prior years
3,858
4,868
Deferred tax adjustments in respect of prior years
(2,981)
(6,627)
Taxation charge
381,460
340,428
ALS CUSTOMS UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
7
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
6,518,394
Amortisation and impairment
At 1 January 2023
488,880
Amortisation charged for the year
651,839
At 31 December 2023
1,140,719
Carrying amount
At 31 December 2023
5,377,675
At 31 December 2022
6,029,514
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
8
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Computers
Total
£
£
£
£
Cost
At 1 January 2023
8,439
68,658
40,656
117,753
Additions
5,432
22,789
6,574
34,795
Disposals
-
0
(5,729)
(9,638)
(15,367)
At 31 December 2023
13,871
85,718
37,591
137,180
Depreciation and impairment
At 1 January 2023
1,434
26,091
22,886
50,411
Depreciation charged in the year
1,841
15,160
14,090
31,091
Eliminated in respect of disposals
-
0
(3,956)
(9,283)
(13,239)
At 31 December 2023
3,275
37,295
27,692
68,262
Carrying amount
At 31 December 2023
10,596
48,423
9,899
68,918
At 31 December 2022
7,005
42,567
17,770
67,342
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
9
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

ALS CUSTOMS UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Subsidiaries
(Continued)
- 22 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
ALS Customs Services and Solutions Limited
Liverpool Road, Eccles, Manchester, UK, M30 7RF
Ordinary
100.00
ALS Customs Services Limited
Liverpool Road, Eccles, Manchester, UK, M30 7RF
Ordinary
100.00
ALS Customs Consulting Limited
Liverpool Road, Eccles, Manchester, UK, M30 7RF
Ordinary
100.00
10
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
9
-
0
-
0
8,481,244
8,481,244
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
8,481,244
Carrying amount
At 31 December 2023
8,481,244
At 31 December 2022
8,481,244
11
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
685,099
695,218
-
0
-
0
Unpaid share capital
-
0
1
-
0
1
Corporation tax recoverable
141,516
-
0
-
0
-
0
Amounts owed by group undertakings
5,369,964
4,315,730
143,709
143,633
Other debtors
53,932
187,294
-
0
-
0
Prepayments and accrued income
58,617
24,890
-
0
-
0
6,309,128
5,223,133
143,709
143,634
Deferred tax asset (note 14)
1,501
-
0
-
0
-
0
6,310,629
5,223,133
143,709
143,634
ALS CUSTOMS UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
12
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
56,300
20,395
-
0
-
0
Amounts owed to group undertakings
399,421
243,355
185,908
42,200
Corporation tax payable
70,768
300,267
-
0
-
0
Other taxation and social security
235,601
338,587
-
-
Other creditors
200,408
2
-
0
-
0
Accruals and deferred income
795,229
1,428,598
-
0
143,633
1,757,727
2,331,204
185,908
185,833
13
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Amounts owed to group undertakings
8,439,044
8,439,044
8,439,044
8,439,044
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
-
15,010
(14,021)
-
Other timing differences
-
(13,711)
15,522
-
-
1,299
1,501
-
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
1,299
-
Credit to profit or loss
(2,800)
-
Asset at 31 December 2023
(1,501)
-

 

ALS CUSTOMS UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,838
30,511

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

16
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
17
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
103,222
21,642
-
-
Between two and five years
300,417
21,964
-
-
In over five years
358,257
104,603
-
-
761,896
148,209
-
-
ALS CUSTOMS UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
18
Related party transactions

The company has taken advantage of the exemption in Financial Reporting Standard 102 from the requirement to disclose transactions with wholly owned group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.

 

Year end balances with group undertakings have been aggregated and disclosed in Note 11 and 12.

 

Included in the above, the group owes Rhenus SE & Co. KG. £8,439,044 (2022: £8,439,044).

 

The group is owed £4,474,828 (2022: £3,595,478) from the ultimate parent company, Rhenus SE & Co.KG. No interest has been received on this balance and is repayable on demand.

 

 

19
Controlling party

The immediate parent company is ALS Consultancy Services GmbH, a company registered in Germany.

 

The ultimate parent company is Rhenus Se & Co. KG, a company registered in Germany.

20
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
552,286
784,623
Adjustments for:
Taxation charged
381,460
340,428
Finance costs
197,670
393,954
Investment income
(80,325)
(204,801)
Amortisation and impairment of intangible assets
651,839
488,880
Depreciation and impairment of tangible fixed assets
31,091
26,920
Movements in working capital:
Increase in debtors
(944,479)
(377,298)
Decrease in creditors
(343,978)
(1,078,040)
Cash generated from operations
445,564
374,666
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