Company registration number 10468377 (England and Wales)
RHENUS HOME DELIVERY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RHENUS HOME DELIVERY LIMITED
COMPANY INFORMATION
Directors
V K Riley
L J Ball
G Hollington
Company number
10468377
Registered office
Liverpool Road
Eccles
Manchester
United Kingdom
M30 7RF
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
RHENUS HOME DELIVERY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
RHENUS HOME DELIVERY 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 Rhenus Home Delivery Limited continued to focus on its core business, providing value add logistics services to customers in Final Mile, end consumer deliveries.
2023 saw significant revenue growth in line with the strategy to gain market share in the UK. Revenue grew by 19% from £16.5m in 2022 to £19.6m in 2023. Gross Profit also increased significantly from £7.2m in 2022 to £10.8m in 2023. However, 2023 saw significant investments in the future of the business in terms of new employees, a commitment to a significant Real Estate facility and systems to help support anticipated substantial growth in the coming years, this resulted in an operating loss in 2023 of £4.1m, after all of these costs were recognised. Underlying inflationary pressure continued throughout the year, putting pressure on operational expenses generally, this was particularly apparent in Real Estate related cost lines.
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 further growth, facilitated by the Real Estate capacity the company now enjoys however, ongoing global political/economic uncertainty remains which can impact consumer behaviour. A welcome reduction in the pace of underlying inflationary cost pressure is expected. The directors will strictly control operating expenses in the coming year and believe the company remains very well positioned to continue to execute its growth strategy and expect a significantly improved bottom line performance in 2024.
The company is supported by the strength of the Rhenus Group, headquartered in Germany, who provide financial support to enable the business to execute its long-term strategy.
Principal risks and uncertainties
There are numerous uncertainties for UK Logistics companies when looking to the future including; pressure on consumers’ disposable incomes; 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. In addition, being part of the Rhenus Group of companies in the UK helps to mitigate many of the perceived risks and uncertainties that the company faced historically as an independent entity.
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.
RHENUS HOME DELIVERY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
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.
G Hollington
Director
12 July 2024
RHENUS HOME DELIVERY 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 was that of the provision of road haulage and storage.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
V K Riley
L J Ball
G Hollington
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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 company's 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 company’s auditor 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 company’s auditor is aware of that information.
RHENUS HOME DELIVERY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
G Hollington
Director
12 July 2024
RHENUS HOME DELIVERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RHENUS HOME DELIVERY LIMITED
- 5 -
Opinion
We have audited the financial statements of Rhenus Home Delivery Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, the 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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.
The results portrayed on page 7 of the financial statements show reported losses after tax of £3,507,545. This, together with accumulated losses incurred in previous years of £6,239,707, highlights the importance and necessity of continued financial support from the wider group and is taken into account in the directors' assessment of the company as a going concern.
Notwithstanding the above, based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
RHENUS HOME DELIVERY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS HOME DELIVERY LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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 HOME DELIVERY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS HOME DELIVERY 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:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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.
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 HOME DELIVERY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
19,551,128
16,492,725
Cost of sales
(8,758,391)
(9,322,244)
Gross profit
10,792,737
7,170,481
Administrative expenses
(14,886,257)
(9,125,204)
Operating loss
4
(4,093,520)
(1,954,723)
Interest payable and similar expenses
(658,908)
(208,446)
Loss before taxation
(4,752,428)
(2,163,169)
Tax on loss
7
1,244,883
330,693
Loss for the financial year
(3,507,545)
(1,832,476)
Retained earnings brought forward
(6,239,707)
(4,407,231)
Retained earnings carried forward
(9,747,252)
(6,239,707)
RHENUS HOME DELIVERY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
8
30,590
2,914
Tangible assets
9
3,981,161
2,175,372
4,011,751
2,178,286
Current assets
Stocks
10
141,738
47,847
Debtors
11
9,373,131
7,774,085
Cash at bank and in hand
239
101,756
9,515,108
7,923,688
Creditors: amounts falling due within one year
12
(15,467,150)
(15,552,085)
Net current liabilities
(5,952,042)
(7,628,397)
Total assets less current liabilities
(1,940,291)
(5,450,111)
Creditors: amounts falling due after more than one year
13
(6,000,000)
Provisions for liabilities
Provisions
14
1,756,961
417,912
Deferred tax liability
15
321,684
(1,756,961)
(739,596)
Net liabilities
(9,697,252)
(6,189,707)
Capital and reserves
Called up share capital
17
50,000
50,000
Profit and loss reserves
(9,747,252)
(6,239,707)
Total equity
(9,697,252)
(6,189,707)
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:
G Hollington
Director
Company Registration No. 10468377
RHENUS HOME DELIVERY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
21
(4,765,094)
(8,033,673)
Interest paid
(658,908)
(208,446)
Income taxes refunded
331,464
554,996
Net cash outflow from operating activities
(5,092,538)
(7,687,123)
Investing activities
Purchase of intangible assets
(31,470)
(2,000)
Purchase of tangible fixed assets
(977,509)
(1,603,652)
Proceeds from disposal of tangible fixed assets
70,865
Net cash used in investing activities
(1,008,979)
(1,534,787)
Financing activities
Loans advanced from related entities
6,000,000
9,218,334
Net cash generated from financing activities
6,000,000
9,218,334
Net decrease in cash and cash equivalents
(101,517)
(3,576)
Cash and cash equivalents at beginning of year
101,756
105,332
Cash and cash equivalents at end of year
239
101,756
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Rhenus Home Delivery Limited is a private company limited by shares incorporated in England and Wales. The registered office is Liverpool Road, Eccles, Manchester, United Kingdom, M30 7RF.
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
Going concern
The parent and other related entities in the group headed by Rhenus SE & Co KG have provided finance facilities to Rhenus Home Delivery Limited to enable the company to meet future liabilities and commitments as they fall due. The directors have obtained confirmation from relevant related parties that financial support will continue to be provided and will not be withdrawn in the foreseeable future. Accordingly, the financial statements have been prepared on the going concern basis.true
1.3
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:
the amount of turnover can be measured reliably;
it is probable that the company will receive consideration due under the contract,
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
20% straight line
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.
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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% straight line
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Computers
20% straight line
Motor vehicles
20% straight line
Estimated future dilapidation costs included within leasehold improvements are depreciated over the remaining term of the related lease.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and carrying value of the asset, and is credited or charged to profit or loss.
1.6
Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimates selling price less costs to sell. Cost is based on the cost of purchase on a first in first out basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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 HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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 company 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group, 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 company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company 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 company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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 company’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 when the company has 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.
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.
1.11
Employee benefits
The company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Amounts not yet paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately form the company in independently administered funds.
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.12
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 leases asset are consumed.
1.13
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Key sources of estimation uncertainty
Dilapidation provision
The company recognises dilapidations 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.
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Transport sales
17,890,697
15,042,405
Storage sales
1,660,431
1,450,320
19,551,128
16,492,725
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
14,420,395
10,606,908
Europe
5,130,733
5,885,817
19,551,128
16,492,725
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Exchange losses
2,547
2,870
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
10,750
Fees payable to the company's auditor in respect of non-audit services
3,500
2,250
Depreciation of owned tangible fixed assets
510,726
259,219
Amortisation of intangible assets
3,794
1,060
Operating lease charges and other related expenses
3,632,275
797,724
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
126
100
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
5,571,432
4,299,996
Social security costs
361,368
278,106
Pension costs
64,118
46,653
5,996,918
4,624,755
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
176,600
157,318
Company pension contributions to defined contribution schemes
1,838
2,513
178,438
159,831
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(304,097)
(557,750)
Adjustments in respect of prior periods
(27,367)
2,889
Total current tax
(331,464)
(554,861)
Deferred tax
Origination and reversal of timing differences
(913,419)
224,168
Total tax credit
(1,244,883)
(330,693)
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(4,752,428)
(2,163,169)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(1,117,771)
(411,002)
Tax effect of expenses that are not deductible in determining taxable profit
205
421
Tax effect of income not taxable in determining taxable profit
(1,005)
Tax effect of utilisation of tax losses not previously recognised
42,988
96,428
Adjustments in respect of prior years
(27,367)
Effect of change in corporation tax rate
(47,641)
30,657
Permanent capital allowances in excess of depreciation
14,141
13,754
Deferred tax adjustments in respect of prior years
(108,370)
Super deduction allowance
(1,068)
(59,946)
Taxation credit for the year
(1,244,883)
(330,693)
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
8
Intangible fixed assets
Software
£
Cost
At 1 January 2023
4,520
Additions
31,470
At 31 December 2023
35,990
Amortisation and impairment
At 1 January 2023
1,606
Amortisation charged for the year
3,794
At 31 December 2023
5,400
Carrying amount
At 31 December 2023
30,590
At 31 December 2022
2,914
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
2,216,758
35,148
165,935
298,633
49,301
2,765,775
Additions
2,203,658
3,396
49,699
29,887
29,918
2,316,558
Disposals
(800)
(800)
At 31 December 2023
4,420,416
38,544
215,634
328,520
78,419
5,081,533
Depreciation and impairment
At 1 January 2023
410,032
9,189
39,051
103,658
28,473
590,403
Depreciation charged in the year
385,428
5,277
31,138
81,538
7,345
510,726
Eliminated in respect of disposals
(757)
(757)
At 31 December 2023
795,460
14,466
70,189
185,196
35,061
1,100,372
Carrying amount
At 31 December 2023
3,624,956
24,078
145,445
143,324
43,358
3,981,161
At 31 December 2022
1,806,726
25,959
126,884
194,975
20,828
2,175,372
Estimated future dilapidation costs have been capitalised and included in leasehold improvements. The net book value of which is £1,407,627 (2022: £226,130).
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
10
Stocks
2023
2022
£
£
Raw materials and consumables
141,738
47,847
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,083,604
2,569,038
Amounts owed by group undertakings
359,569
1,360,747
Other debtors
960,409
710,301
Prepayments and accrued income
3,057,562
3,133,999
7,461,144
7,774,085
Deferred tax asset (note 15)
591,735
8,052,879
7,774,085
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
1,320,252
Total debtors
9,373,131
7,774,085
Other debtors represent deposits paid in respect of long term property leases.
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
863,712
736,326
Amounts owed to group undertakings
11,160,255
13,989,001
Taxation and social security
116,740
84,817
Other creditors
3,326,443
741,941
15,467,150
15,552,085
Borrowings are secured by way of fixed and floating charges over the assets of the company.
13
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
6,000,000
14
Provisions for liabilities
2023
2022
£
£
Dilapidation provision
1,756,961
417,912
Movements on provisions:
Dilapidation provision
£
At 1 January 2023
417,912
Additional provisions in the year
1,339,049
At 31 December 2023
1,756,961
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
-
330,696
(379,988)
-
Tax losses
-
-
842,811
-
Short term timing differences
-
(9,012)
128,912
-
-
321,684
591,735
-
2023
Movements in the year:
£
Liability at 1 January 2023
321,684
Credit to profit or loss
(913,419)
Asset at 31 December 2023
(591,735)
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,118
46,653
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
2,714,694
2,687,557
Between two and five years
8,950,352
9,440,251
In over five years
19,118,163
21,196,244
30,783,209
33,324,052
19
Related party transactions
Balances with related parties
The following amounts were outstanding at the reporting end date:
Amounts owed by
Amounts owed to
related parties
related parties
2023
2022
2023
2022
£
£
£
£
ALS Customs Services Dover Limited
-
170,625
-
-
Other related parties
-
-
888
27,800
Rhenus High Tech Limited
-
295,821
445
1,816
Rhenus Logistics (Corby) Limited
-
321,872
-
-
Rhenus Logistics Limited
359,569
372,954
2,379,987
2,429,939
Rhenus SE & Co. KG.
-
-
14,777,255
11,529,446
Rhenus Warehousing Solutions Lutterworth Limited
-
199,474
1,680
-
20
Controlling party
At the current year end the company's parent company was Rhenus Beteiligungen International GmbH and its ultimate parent undertaking was Rethmann SE & Co, KG, a private company controlled by its directors. The results of the company are consolidated into Rethmann SE & Co. KG, a company incorporated in Germany.
RHENUS HOME DELIVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
21
Cash absorbed by operations
2023
2022
£
£
Loss for the year after tax
(3,507,545)
(1,832,476)
Adjustments for:
Taxation credited
(1,244,883)
(330,827)
Finance costs
658,908
208,446
Loss on disposal of tangible fixed assets
43
-
Amortisation and impairment of intangible assets
3,794
1,060
Depreciation and impairment of tangible fixed assets
510,726
259,219
Movements in working capital:
Increase in stocks
(93,891)
(47,847)
Increase in debtors
(1,007,311)
(4,884,668)
Decrease in creditors
(84,935)
(1,406,580)
Cash absorbed by operations
(4,765,094)
(8,033,673)
22
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
101,756
(101,517)
239
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