Company Registration No. 04401654 (England and Wales)
RHENUS LOGISTICS LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RHENUS LOGISTICS LIMITED
COMPANY INFORMATION
Directors
D J Williams
G Dodsworth
G Hollington
Company number
04401654
Registered office
Liverpool Road
Eccles
Manchester
Lancashire
United Kingdom
M30 7RF
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
Bankers
HSBC Bank Plc
2-4 St Ann's Square
Manchester
United Kingdom
M2 7HD
Solicitors
Brabners LLP
1 Dale Street
Liverpool
United Kingdom
L2 2ET
RHENUS LOGISTICS LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 31
RHENUS LOGISTICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

 

Introduction

 

The group’s principal activity is unchanged since last year and is that of providing international freight forwarding solutions.

In preparing the financial statements and associated strategic and directors’ reports, the board have fully considered the requirements (‘a’ – ‘f’) as set out in s172 of the Companies Act 2006 in the narrative and the disclosures which follow.

Business review

The consolidated sales of the group in 2023 was £85.9m, representing a reduction of 20% (£21.5m) compared to the prior year, the decline in sales occurred as a result of lower underlying shipment volumes and substantially lower global shipping container rates compared to 2022.

Gross profit for the year decreased by 5% compared to prior year (£1.3m) impacted by the reduction in underlying sales but offset in part by an increase in the gross margin ratio from 23.8% (2022) to 28.3% (2023).

Administrative costs increased in 2023 to £27.7m (+£2m), driven by investment in leasehold property, creating a bespoke warehousing solution in the Heathrow area, and investing in new employees to focus on generating future growth opportunities. While the short-term impact on profitability is evident, the medium-term benefits in terms of accessing new markets, and new competitive positioning are expected to drive growth and profitability.

The combination of challenging market conditions, cost inflation and administrative cost investments in the year resulted in an operating loss of £3.4m (4% of sales) being reported. The 2022 profit before taxation included an exceptional gain on the sale of group businesses of £4.3m, no exceptional gains were realised in 2023.

The year saw marginally lower underlying demand for freight forwarding services from existing customers. The ‘World Containerized Freight Index’ fell by circa 75% on average year over year which led to lower revenue generation in this area of the business. During 2022 the group invested heavily in new facilities within the UK, providing access to Life Sciences and Healthcare markets and also to enable provision of ‘regulated agent’ cargo handling services. The full ongoing cost of these investments is recognised in the Administrative Costs for 2023, once fully utilised they will support strong additional revenue growth for the company. The implementation of Rhenus Road Groupage Network 2.0 in early 2024 is also an exciting milestone that is expected to facilitate growth in the future.

The group continued to experience inflationary pressures, in particular related to rents, business rates and utility costs. The ongoing commitment to investment in IT infrastructure to streamline business operations and to improve the quality and range of services offered to customers will continue, as will the focus on improving efficiency through automation of processes and ensuring best practice processes are adopted in all areas of the business.

Despite a challenging 2023 the directors are optimistic that the investments made will deliver revenue growth and expect the company to deliver improved profitability in the future. The group’s solid balance sheet position will allow it to continue provide support for other Rhenus Group Companies based in the UK.

 

 

RHENUS LOGISTICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

There are numerous uncertainties for UK Logistics companies when looking to the future including; further changes to the UK customs environment, systems & processes; general cost inflation, and wider global political/economic uncertainty. The directors continue to monitor and wherever possible put mitigation actions in place to manage these risks and 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, including Life Sciences and Healthcare, and implementation of a new Road Groupage network offering daily departures to Europe.

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 are 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 marketplace.

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.

Financial key performance indicators

Rhenus monitors its operations by analysing each individual service type and customer at gross margin level. Performance is assessed by comparing actual results against budgets and forecasts. Monthly comparisons are made between the current year and the previous year, as well as against the budget. Management focuses on any significant adverse deviations and take corrective action where possible.

In addition to financial metrics, Rhenus uses non-financial performance measures, such as timeliness, accuracy, and internal efficiency, to analyse the success of branches. These measures help ensure comprehensive performance evaluation and customer satisfaction.

 

RHENUS LOGISTICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

Additional Information and Explanations

 

Current reporting year (Jan 23 – Dec 23), prior reporting years (Jan 22 – Dec 22)

 

 

2023

2022

 

Total energy consumption from gas and electricity

1,281,650

1,251,798

kWh

Scope 1 – All Direct Emissions from the activities of an organisation or under their control. Including fuel combustion on site such as gas boilers, fleet vehicles and air-conditioning leaks.

47

63

tCo2e

Scope 2 – Indirect Emissions from electricity purchased and used by the organisation. Emissions are created during the production of the energy and eventually used by the organisation.

82

30

tCo2e

Total emissions (Scope 1 & 2)

130

93

tCo2e

Turnover

85,945,714

106,148,922

£

Intensity Ratio (Scope 1 & 2)

1.51

0.88

kgC02e per mil£ T/O

 

We have not reported Scope 3 emissions as this is optional for unquoted companies (as per SECR guidance issued in March 2019). Our choice to omit these emissions is due to the lack of verifiable data and the high number of assumptions involved in emissions calculations, which could be misleading.

 

Energy Efficient Actions

 

We are committed to responsible energy management and support energy efficiency actions throughout our organisation, where it is cost effective to do so. We will maintain the ISO 14001 certification and are on schedule to comply with the ESOS Phase 3 deadline of August 2024

 

In 2023 we have taken the following actions to reduce our emissions:

 

Future plans include:

 

 

RHENUS LOGISTICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

Directors’ statement of compliance with duty to promote the success of the Company.

Section 172 of the Companies Act 2006 requires Directors to consider the interests of stakeholders in their decision-making. This statement outlines how the Directors adhere to the matters set out in Section 172 while fulfilling their roles.

Our responsibilities extend to our shareholders, customers, suppliers, and the environment. We engage with our stakeholders in various ways, including:

Shareholders: We prioritise transparency and effective communication to ensure shareholders are informed about the company's strategies, performance, and decisions. We seek to uphold their trust and confidence by delivering long-term value and sustainable growth.

Customers: Our commitment to customer satisfaction is paramount. We collaborate closely with our customers, understanding their needs and preferences, and endeavour to provide innovative solutions. The group employs a full time Quality and Compliance Manager who oversees all quality assurance accreditations and systems to ensure the group continues to offer the highest levels of service and quality to its customers.

Suppliers: We uphold ethical sourcing practices and foster collaborative partnerships with our suppliers. By promoting fairness, sustainability, and adherence to high standards in our supply chain, we aim to create shared value and mutual success.

Environment: Environmental responsibility is central to our corporate values. As a logistics provider, we are acutely aware of our impact on the environment and seek to mitigate this wherever possible.

Some examples of how this is achieved are listed below:

 

By prioritizing the interests of our stakeholders and engaging with them proactively, we aim to foster trust, create shared value, and drive sustainable growth for the benefit of all.

On behalf of the board

G Hollington
Director
12 July 2024
RHENUS LOGISTICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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

Directors

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

D J Williams
G Dodsworth
G Hollington
S Davern
(Resigned 2 February 2024)
2024-02-02
Results and dividends

The results for the year are set out on page 11.

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

Disabled persons

The group recognises its responsibilities towards disabled persons and gives full and fair consideration to applicants in positions suited to their own particular needs where appropriate openings exists. Where employees become disables in the course of their employment, every effort is made to provide them continuing employment.

Employee involvement

The group's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.

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.

RHENUS LOGISTICS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
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 its streamlined energy and carbon report and financial risk management objectives and policies.

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
RHENUS LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RHENUS LOGISTICS LIMITED
- 7 -
Opinion

We have audited the financial statements of Rhenus Logistics Limited ('the parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statements 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 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 FRS 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:

RHENUS LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS LOGISTICS LIMITED
- 8 -
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.

RHENUS LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS LOGISTICS LIMITED
- 9 -

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.

 

 

 

 

RHENUS LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS LOGISTICS LIMITED
- 10 -

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
RHENUS LOGISTICS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
85,945,714
107,469,052
Cost of sales
(61,646,751)
(81,875,863)
Gross profit
24,298,963
25,593,189
Administrative expenses
(27,749,328)
(25,769,583)
Other operating income
38,650
239,070
Operating (loss)/profit
4
(3,411,715)
62,676
Interest receivable and similar income
8
144,158
4,413,946
Interest payable and similar expenses
(193,296)
(256,380)
(Loss)/profit before taxation
(3,460,853)
4,220,242
Tax on (loss)/profit
9
532,440
(411,422)
(Loss)/profit for the financial year
(2,928,413)
3,808,820
(Loss)/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.
RHENUS LOGISTICS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
7,036,836
8,620,736
Tangible assets
12
7,755,962
7,994,162
14,792,798
16,614,898
Current assets
Debtors
14
22,981,091
23,896,976
Cash at bank and in hand
93,782
323,593
23,074,873
24,220,569
Creditors: amounts falling due within one year
15
(16,706,524)
(16,837,528)
Net current assets
6,368,349
7,383,041
Total assets less current liabilities
21,161,147
23,997,939
Creditors: amounts falling due after more than one year
16
(9,962,000)
(9,962,000)
Provisions for liabilities
Provisions
17
2,666,458
2,200,825
Deferred tax liability
20
-
0
374,012
(2,666,458)
(2,574,837)
Net assets
8,532,689
11,461,102
Capital and reserves
Called up share capital
19
172,001
172,001
Profit and loss reserves
8,360,688
11,289,101
Total equity
8,532,689
11,461,102
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
RHENUS LOGISTICS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
8,395,323
10,189,722
Tangible assets
12
7,755,962
7,994,162
Investments
11
4,177,704
4,177,704
20,328,989
22,361,588
Current assets
Debtors
14
22,922,245
23,846,977
Cash at bank and in hand
90,908
323,593
23,013,153
24,170,570
Creditors: amounts falling due within one year
15
(25,820,537)
(25,978,144)
Net current liabilities
(2,807,384)
(1,807,574)
Total assets less current liabilities
17,521,605
20,554,014
Creditors: amounts falling due after more than one year
16
(9,962,000)
(9,962,000)
Provisions for liabilities
Provisions
17
2,666,458
2,200,825
Deferred tax liability
20
-
0
374,012
(2,666,458)
(2,574,837)
Net assets
4,893,147
8,017,177
Capital and reserves
Called up share capital
19
172,001
172,001
Profit and loss reserves
4,721,146
7,845,176
Total equity
4,893,147
8,017,177

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £3,124,030 (2022 - £519,293 loss).

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. 04401654
RHENUS LOGISTICS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
172,001
7,480,281
7,652,282
Year ended 31 December 2022:
Profit and total comprehensive income
-
3,808,820
3,808,820
Balance at 31 December 2022
172,001
11,289,101
11,461,102
Year ended 31 December 2023:
Loss and total comprehensive income
-
(2,928,413)
(2,928,413)
Balance at 31 December 2023
172,001
8,360,688
8,532,689
RHENUS LOGISTICS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
172,001
8,364,469
8,536,470
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(519,293)
(519,293)
Balance at 31 December 2022
172,001
7,845,176
8,017,177
Year ended 31 December 2023:
Profit and total comprehensive income
-
(3,124,030)
(3,124,030)
Balance at 31 December 2023
172,001
4,721,146
4,893,147
RHENUS LOGISTICS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
661,745
5,449,542
Interest paid
(193,296)
(256,380)
Income taxes paid
(27,695)
(180,425)
Net cash inflow from operating activities
440,754
5,012,737
Investing activities
Purchase of tangible fixed assets
(814,723)
(1,582,835)
Proceeds from disposal of tangible fixed assets
-
8,646
Interest received
144,158
507,286
Reduction in cash on sale of subsidiary
-
0
(74,056)
Net cash used in investing activities
(670,565)
(1,140,959)
Financing activities
Repayment of intercompany loan
-
(4,000,000)
Net cash used in financing activities
-
(4,000,000)
Net decrease in cash and cash equivalents
(229,811)
(128,222)
Cash and cash equivalents at beginning of year
323,593
451,815
Cash and cash equivalents at end of year
93,782
323,593
RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

Rhenus Logistics 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 Rhenus Logistics 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.

The consolidated group financial statements consist of the financial statements of the parent company Rhenus Logistics 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.

1.2

Going concern

At the time of approving the financial statements the directors have a reasonable expectation, and confirmed with the continued support from the wider Rhenus group, that the company has adequate resources to continue in operational existence for the foreseeable future.

 

1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group 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. The following criteria must also be met before turnover is recognised:

 

Rendering of services

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:

RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.4
Intangible fixed assets

 

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the profit and loss account over its useful economic life.

1.5
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:

Freehold property
4% straight line
Short term leasehold property
over the remaining life of the leases
Plant & machinery
10% straight line
Computer equipment
20% straight line

Estimated future dilapidation costs included within short term leasehold property are depreciated over the remaining term of the related lease.

 

Freehold land is not depreciated.

 

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.

1.6
Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

1.7
Cash at bank and in hand

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.

1.8
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 method. Financial assets classified as receivable within one year are not amortised.

RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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.

1.9
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.

1.10
Taxation

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

RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

1.11
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that 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 reporting end date, taking into 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. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss for the period.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Dilapidation provision

The group recognises dilapidation provisions on the leasehold properties it occupies. The directors assess the level of provision required on a property by property basis based on past experience within the property portfolio along with professional advice from qualified surveyors where appropriate. These provisions are reviewed annually to ensure that they reflect the current best estimate of the provision required.

Going concern

The company has been advanced additional funds from the wider group during the year with total group creditors amounting to £24.8m as shown in notes 15 and 16 to the financial statements. The judgement applied by the directors in determining that the going concern basis remains appropriate to the company has been supported by confirmation that such funds will continue to be made available and not be recalled to the detriment of third party creditors.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Freight services
85,945,715
107,469,052
RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(16,761)
38,896
Depreciation of owned tangible fixed assets
1,052,531
886,408
(Profit)/loss on disposal of tangible fixed assets
-
38,834
Amortisation of intangible assets
1,583,902
1,622,967
Operating lease charges and related expenses
3,478,022
2,429,105
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
43,200
40,250
Audit of the financial statements of the company's subsidiaries
3,300
3,300
46,500
43,550
6
Employees

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

Group
2023
2022
Number
Number
Administrative
64
47
Operational
302
310
Total
366
357

Their aggregate remuneration comprised:

Group
2023
2022
£
£
Wages and salaries
13,482,437
12,943,342
Social security costs
1,448,167
1,355,121
Pension costs
597,625
494,202
15,528,229
14,792,665
RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
744,536
721,822
Company pension contributions to defined contribution schemes
46,266
41,617
790,802
763,439
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
293,642
297,533
Company pension contributions to defined contribution schemes
18,000
18,000

The number of directors for whom retirement benefits are accruing under defined contribution scheduel amounted to 4 (2022: 4).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
144,158
128,855
Income from fixed asset investments
Profit on sale of subsidiary
-
0
4,285,091
Total income
144,158
4,413,946
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
150,822
Adjustments in respect of prior periods
27,695
26,147
Total current tax
27,695
176,969
Deferred tax
Origination and reversal of timing differences
(560,135)
234,453
Total tax (credit)/charge
(532,440)
411,422
RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 24 -

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

2023
2022
£
£
(Loss)/profit before taxation
(3,460,853)
4,220,242
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(813,993)
801,846
Tax effect of expenses that are not deductible in determining taxable profit
433,828
314,655
Tax effect of income not taxable in determining taxable profit
(57,769)
(903,141)
Adjustments in respect of prior years
27,675
26,147
Depreciation on assets not qualifying for tax allowances
89,103
168,418
Deferred tax adjustments in respect of prior years
(190,827)
-
0
Difference in tax rates
(21,855)
55,396
Effect of capital allowances including super deductions
1,398
(51,899)
Taxation (credit)/charge
(532,440)
411,422
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
16,863,886
Amortisation and impairment
At 1 January 2023
8,243,150
Amortisation charged for the year
1,583,900
At 31 December 2023
9,827,050
Carrying amount
At 31 December 2023
7,036,836
At 31 December 2022
8,620,736
RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Intangible fixed assets
(Continued)
- 25 -
Company
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
17,943,973
Amortisation and impairment
At 1 January 2023
7,754,251
Amortisation charged for the year
1,794,399
At 31 December 2023
9,548,650
Carrying amount
At 31 December 2023
8,395,323
At 31 December 2022
10,189,722
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
4,177,704
4,177,704

 

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
4,177,704
Carrying amount
At 31 December 2023
4,177,704
At 31 December 2022
4,177,704
RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
12
Tangible fixed assets (as restated)
Group
Freehold property
Short term leasehold property
Plant & machinery
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
6,514,072
4,268,027
1,535,292
2,098,133
14,415,524
Additions
-
0
508,014
166,954
139,755
814,723
At 31 December 2023
6,514,072
4,776,041
1,702,246
2,237,888
15,230,247
Depreciation and impairment
At 1 January 2023
2,423,109
2,148,316
584,099
1,265,838
6,421,362
Depreciation charged in the year
277,803
307,367
167,532
300,221
1,052,923
At 31 December 2023
2,700,912
2,455,683
751,631
1,566,059
7,474,285
Carrying amount
At 31 December 2023
3,813,160
2,320,358
950,615
671,829
7,755,962
At 31 December 2022
4,090,963
2,147,971
853,046
902,182
7,994,162
Company
Freehold property
Short term leasehold property
Plant & machinery
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
6,514,072
4,268,027
1,535,292
2,098,133
14,415,524
Additions
-
0
508,014
166,954
139,755
814,723
At 31 December 2023
6,514,072
4,776,041
1,702,246
2,237,888
15,230,247
Depreciation and impairment
At 1 January 2023
2,423,109
2,148,316
584,099
1,265,838
6,421,362
Depreciation charged in the year
277,803
307,367
167,532
300,221
1,052,923
At 31 December 2023
2,700,912
2,455,683
751,631
1,566,059
7,474,285
Carrying amount
At 31 December 2023
3,813,160
2,320,358
950,615
671,829
7,755,962
At 31 December 2022
4,090,963
2,119,711
951,193
832,295
7,994,162

Estimated future dilapidation costs have been capitalised and included in short term leasehold property. The net book value of which is £1,583,781 (2022: £1,365,694).

RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
13
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
ABC Freight Forwarding Limited
United Kingdom
Dormant
Ordinary
100.00
-
Gen Logistics Limited
United Kingdom
Dormant
Ordinary
100.00
-
Rhenus Hauser Forwarding Limited
United Kingdom
Dormant
Ordinary
-
100.00
Rhenus Hauser Limited
United Kingdom
Dormant
Ordinary
100.00
-
Rhenus Hauser London Limited
United Kingdom
Dormant
Ordinary
-
100.00
Rhenus Hauser Midlands Limited
United Kingdom
Dormant
Ordinary
-
100.00
Rhenus Hauser Yorkshire Limited
United Kingdom
Dormant
Ordinary
-
100.00
Staples International Shipping Limited
United Kingdom
Dormant
Ordinary
100.00
-
The PSL Group Limited
United Kingdom
Freight and Logistics
Ordinary
100.00
-
ABC 4Trade B.V
Netherlands
Freight and Logistics
Ordinary
-
100.00
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
10,585,291
15,124,837
10,585,293
15,124,837
Amounts owed by group undertakings
8,710,309
5,445,720
8,710,310
5,445,721
Other debtors
1,615,489
1,010,845
1,556,640
960,845
Prepayments and accrued income
1,299,512
1,439,023
1,299,512
1,439,023
22,210,601
23,020,425
22,151,755
22,970,426
Deferred tax asset (note 20)
186,123
-
0
186,123
-
0
22,396,724
23,020,425
22,337,878
22,970,426
Amounts falling due after more than one year:
Other debtors
584,367
876,551
584,367
876,551
Total debtors
22,981,091
23,896,976
22,922,245
23,846,977
RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
7,885,468
10,962,340
7,885,468
10,962,340
Amounts due to group undertakings
5,752,325
1,795,736
14,872,445
10,936,358
Other taxation and social security
483,542
536,055
483,542
536,055
Other creditors
192,237
609
192,231
609
Accruals and deferred income
2,392,952
3,542,788
2,386,851
3,542,782
16,706,524
16,837,528
25,820,537
25,978,144

 

 

Amounts due to group undertakings (in the solus company balance sheet) includes a figure of £8.7m due to a subsidiary undertaking that is expected to be offset by an intercompany dividend receivable during 2024. Accordingly, of the company's current liabilities, a sum of £8.7m is unlikely to be required to be settled in cash.

16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Amounts owed to group undertakings
9,962,000
9,962,000
9,962,000
9,962,000
17
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Provision for dilapidation costs
2,666,458
2,200,825
2,666,458
2,200,825
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
597,625
494,202

A defined contribution pension scheme is operated by the group for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Included within accruals and deferred income are unpaid amounts with respect to the defined contribution scheme totalling £133,510 (2022: £108,853).

RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
19
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
"A" Ordinary shares of £1 each
172,001
172,001
172,001
172,001
20
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
-
565,902
(560,051)
-
Tax losses
-
-
302,522
-
Short term timing differences
-
(191,890)
443,652
-
-
374,012
186,123
-
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
-
565,902
(560,051)
-
Tax losses
-
-
302,522
-
Short term timing differences
-
(191,890)
443,652
-
-
374,012
186,123
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
374,012
374,012
Credit to profit or loss
(560,135)
(560,135)
Asset at 31 December 2023
(186,123)
(186,123)
RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
21
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
2,288,913
2,549,079
2,288,913
2,549,079
Between two and five years
6,628,497
7,906,404
6,628,497
7,906,404
In over five years
7,121,840
8,298,353
7,121,840
8,298,353
16,039,250
18,753,836
16,039,250
18,753,836
22
Related party transactions

The company has taken advantage of the exemption in Financial Reporting Standard 102 Section 33 "Related party disclosures" and has not disclosed transactions with group and other related parties in the year which have been conducted on standard commercial terms.

Year end balances with group undertakings have been aggregated and disclosed in notes 13 and 15.

Balances with related parties

The following material amounts were outstanding at the reporting end date:

Amounts owed by
Amounts owed to
related parties
related parties
2023
2022
2023
2022
£
£
£
£
Rhenus Home Delivery Limited
2,063,434
-
27,368
-
Rhenus Warehousing Solutions Lutterworth Limited
5,019,799
-
2,281,430
-
Rhenus SE & Co. KG
-
-
12,394,181
9,962,000
23
Controlling party

At the current and preceding year end the company's parent company was Rhenus Beteiligungen International GmbH and its ultimate parent undertakings was Rethmann SE & Co. KG, a private company controlled by its directors. The smallest and largest groups in which the results of the company are consolidated are those headed by Rhenus SE & Co. KG and Rethmann SE & Co. KG, respectively. Both of these entities are registered in Germany.

RHENUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
24
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(2,928,413)
3,808,820
Adjustments for:
Taxation (credited)/charged
(532,440)
411,422
Finance costs
193,296
256,380
Investment income
(144,158)
(507,286)
(Gain)/loss on disposal of tangible fixed assets
-
38,834
Amortisation and impairment of intangible assets
1,583,900
1,650,367
Depreciation and impairment of tangible fixed assets
1,052,923
886,412
Increase in provisions
465,633
-
Profit on sale of subsidiary
-
(4,211,035)
Movements in working capital:
Decrease in debtors
1,102,008
5,551,289
Decrease in creditors
(131,004)
(2,435,661)
Cash generated from operations
661,745
5,449,542
25
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
323,593
(229,811)
93,782
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100No description of principal activityD J WilliamsG DodsworthG 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