Company registration number 03609237 (England and Wales)
RHENUS LOGISTICS (CORBY) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RHENUS LOGISTICS (CORBY) LIMITED
COMPANY INFORMATION
Directors
D J Williams
G Dodsworth
G Hollington
Company number
03609237
Registered office
Liverpool Road
Eccles
Manchester
Lancashire
United Kingdom
M30 7RF
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
RHENUS LOGISTICS (CORBY) 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 - 22
RHENUS LOGISTICS (CORBY) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The company has reported a 24% reduction in turnover when compared to the prior year. The decreased turnover has been primarily driven by a fall in the underlying demand for UK warehousing, storage and transport services during 2023, well below the peak of demand seen in 2022. The availability of warehouse space in the primary area where the company operates has also increased, driving high levels of competition for customers, both new and existing. The gross margin contribution has reduced by 20%, reflecting the competitive nature of the market and the completion of some longer term contracts with customers.
As a result, the company has generated an operating loss in 2023 of £183k, this performance is down substantially from a very strong result in 2022. Administrative expenses have been reduced by 12% year over year but this cost management associated with lower revenue has been offset by underlying inflationary pressures on the remaining cost base, especially in building rent reviews, business rates and utilities. The company continues to monitor its cost base closely, management are focused on identifying further process and cost efficiencies, required in order to improve its financial performance. The company also continues to focus on attracting new customers that require the storage and transport flexibility/expertise it can provide.
The company retains a strong balance sheet and the directors are satisfied that the business is well positioned to carry out its medium to long term strategic and business objectives despite a challenging 2023.
There are numerous uncertainties for UK Logistics and Warehousing companies when looking to the future including:
Continuing changes to the UK customs environment, especially the associated systems
Inflationary pressures within the market and wider political uncertainty
High levels of availability of warehouse space within the UK generally
The directors continue to monitor and wherever possible put mitigation actions in place to manage risk. 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.
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.
RHENUS LOGISTICS (CORBY) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties
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 which fixed rate borrowing 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 needed. 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.
The directors are confident about the business and its performance for the coming year.
G Hollington
Director
12 July 2024
RHENUS LOGISTICS (CORBY) 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 continued to be that of the provision of road haulage and storage.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £250,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D J Williams
G Dodsworth
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 principal risks and uncertainties.
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 LOGISTICS (CORBY) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
G Hollington
Director
12 July 2024
RHENUS LOGISTICS (CORBY) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RHENUS LOGISTICS (CORBY) LIMITED
- 5 -
Opinion
We have audited the financial statements of Rhenus Logistics (Corby) 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.
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.
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.
RHENUS LOGISTICS (CORBY) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS LOGISTICS (CORBY) LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:
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.
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 LOGISTICS (CORBY) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS LOGISTICS (CORBY) 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 LOGISTICS (CORBY) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
11,114,223
14,591,028
Cost of sales
(3,295,101)
(4,876,509)
Gross profit
7,819,122
9,714,519
Administrative expenses
(8,002,580)
(9,122,174)
Operating (loss)/profit
4
(183,458)
592,345
Interest receivable and similar income
66,122
2,885
Interest payable and similar expenses
(25,411)
(Loss)/profit before taxation
(117,336)
569,819
Tax on (loss)/profit
6
62,281
(132,412)
(Loss)/profit for the financial year
(55,055)
437,407
Retained earnings brought forward
1,847,138
1,409,731
Dividends
7
(250,000)
Retained earnings carried forward
1,542,083
1,847,138
The profit and loss account has been prepared on the basis that all operations are continuing operations.
RHENUS LOGISTICS (CORBY) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
1,191,823
1,321,166
Current assets
Stocks
9
43,952
122,787
Debtors
10
3,336,140
4,494,203
Cash at bank and in hand
660
239,519
3,380,752
4,856,509
Creditors: amounts falling due within one year
11
(1,126,231)
(2,426,276)
Net current assets
2,254,521
2,430,233
Total assets less current liabilities
3,446,344
3,751,399
Provisions for liabilities
Provisions
12
1,739,675
1,739,675
(1,739,675)
(1,739,675)
Net assets
1,706,669
2,011,724
Capital and reserves
Called up share capital
15
160,490
160,490
Share premium account
16
4,096
4,096
Profit and loss reserves
1,542,083
1,847,138
Total equity
1,706,669
2,011,724
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. 03609237
RHENUS LOGISTICS (CORBY) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
84,663
370,904
Interest paid
(25,411)
Income taxes refunded/(paid)
18,080
(140,404)
Net cash inflow from operating activities
102,743
205,089
Investing activities
Purchase of tangible fixed assets
(172,062)
(218,455)
Proceeds from disposal of tangible fixed assets
14,338
Interest received
66,122
2,885
Net cash used in investing activities
(91,602)
(215,570)
Financing activities
Dividends paid
(250,000)
Net cash used in financing activities
(250,000)
-
Net decrease in cash and cash equivalents
(238,859)
(10,481)
Cash and cash equivalents at beginning of year
239,519
250,000
Cash and cash equivalents at end of year
660
239,519
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Rhenus Logistics (Corby) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Liverpool Road, Eccles, Manchester, Lancashire, 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
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the life of the lease
Plant and machinery
10% - 50% straight line
Fixtures and fittings
10% - 50% straight line
Motor vehicles
25% - 33% straight line
Other fixed assets
10% - 20% straight line
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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 the carrying value of the asset, and is credited or charged to profit or loss.
1.5
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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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.
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.
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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 companies, 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.
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.
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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 from the company in independently administered funds.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating 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.
1.14
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.
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
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
5,112,607
6,257,121
Warehousing and storage sales
6,001,616
8,333,907
11,114,223
14,591,028
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(55)
330
Fees payable to the company's auditor for the audit of the company's financial statements
17,325
16,500
Fees payable to the company's auditor for non-audit services
4,800
4,500
Depreciation of owned tangible fixed assets
292,771
222,514
(Profit)/loss on disposal of tangible fixed assets
(5,704)
266
Operating lease charges and other related expenses
1,995,902
1,642,115
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration
118
133
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,677,021
4,744,758
Social security costs
315,464
365,326
Pension costs
71,804
74,174
4,064,289
5,184,258
6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
125,054
Adjustments in respect of prior periods
(9,406)
16,032
Total current tax
(9,406)
141,086
Deferred tax
Origination and reversal of timing differences
(44,201)
(8,674)
Adjustment in respect of prior periods
(8,674)
Total deferred tax
(52,875)
(8,674)
Total tax (credit)/charge
(62,281)
132,412
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
(117,336)
569,819
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(27,597)
108,266
Tax effect of expenses that are not deductible in determining taxable profit
180
11,384
Adjustments in respect of prior years
(9,406)
16,032
Effect of change in corporation tax rate
(16,895)
(1,990)
Depreciation on assets not qualifying for tax allowances
111
2,567
Deferred tax adjustments in respect of prior years
(8,674)
301
Super deductions allowance
(4,148)
Taxation (credit)/charge for the year
(62,281)
132,412
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
7
Dividends
2023
2022
£
£
Final declared
250,000
8
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures and fittings
Motor vehicles
Other fixed assets
Total
£
£
£
£
£
£
Cost
At 1 January 2023
1,739,675
585,383
323,956
612,349
90,351
3,351,714
Additions
20,066
119,885
32,111
172,062
Disposals
(140,230)
(140,230)
At 31 December 2023
1,739,675
605,449
443,841
472,119
122,462
3,383,546
Depreciation and impairment
At 1 January 2023
629,927
507,570
232,704
603,715
56,632
2,030,548
Depreciation charged in the year
207,238
28,641
40,576
16,316
292,771
Eliminated in respect of disposals
(131,596)
(131,596)
At 31 December 2023
837,165
536,211
273,280
472,119
72,948
2,191,723
Carrying amount
At 31 December 2023
902,510
69,238
170,561
49,514
1,191,823
At 31 December 2022
1,109,748
77,813
91,252
8,634
33,719
1,321,166
Estimated future dilapidation costs have been capitalised and included in leasehold improvements. The net book value of which is £902,510 (2022: £1,109,748).
9
Stocks
2023
2022
£
£
Raw materials and consumables
43,952
122,787
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,637,996
2,659,870
Amounts owed by group undertakings
907,512
1,147,963
Prepayments and accrued income
737,757
677,696
3,283,265
4,485,529
Deferred tax asset (note 13)
52,875
8,674
3,336,140
4,494,203
11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
202,443
567,857
Amounts due to related parties
-
401,076
Other taxation and social security
256,290
511,451
Other creditors
15,770
15,254
Accruals and deferred income
651,728
930,638
1,126,231
2,426,276
On 4 September 2020 a fixed and floating charge over all assets of the company was registered in favour of HSBC UK Bank Plc.
12
Provisions for liabilities
2023
2022
£
£
Dilapidation provision
1,739,675
1,739,675
Movements on provisions:
Dilapidation provision
£
At 1 January 2023 and 31 December 2023
1,739,675
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
-
(16,420)
Tax losses
198
-
Short term timing differences
52,677
25,094
52,875
8,674
2023
Movements in the year:
£
Asset at 1 January 2023
(8,674)
Credit to profit or loss
(44,201)
Asset at 31 December 2023
(52,875)
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,804
74,174
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.
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
15
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
140,000 Ordinary shares of £1 each
140,000
140,000
1 Ordinary A share of £1 each
1
1
1 Ordinary B share of £1 each
1
1
20,488 Ordinary C shares of £1 each
20,488
20,488
160,490
160,490
Ordinary shares hold full and equal rights to participate in voting in all circumstances and in dividends and capital distributions, whether on a winding up or otherwise. The shares are not redeemable.
The A ordinary shares shall carry no right to receive notice of, attend or vote at any general meeting of the company save of a meeting of the holders of the A ordinary shares as a class.
The B ordinary shares shall carry no right to receive notice of, attend or vote at any general meeting of the company save of a meeting of the holders of the B ordinary shares as a class.
The C ordinary shares hold full and equal rights to participate in voting in all circumstances and in dividends and capital distributions, whether on a winding up or otherwise. The shares are not redeemable.
16
Share premium account
The reserve represents the excess amount received that was above the cost amount of the shares issued.
17
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
1,307,839
1,347,678
Between two and five years
3,238,850
4,511,463
4,546,689
5,859,141
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
18
Related party transactions
Balances with related parties
The following amounts were due from/(to) the following related parties at the reporting end date:
Amounts owed by
Amounts owed to
related parties
related parties
2023
2022
2023
2022
£
£
£
£
ALS Customs Services Dover Limited
-
28,893
-
-
Other related parties
-
3,711
-
32,683
Rhenus Home Delivery Limited
-
-
-
329,230
Rhenus Logistics Limited
17,767
98,285
-
37,214
Rhenus SE & Co. KG
889,745
1,017,074
-
1,949
19
Ultimate 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.
20
Cash generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(55,055)
437,407
Adjustments for:
Taxation (credited)/charged
(62,281)
132,412
Finance costs
25,411
Investment income
(66,122)
(2,885)
(Gain)/loss on disposal of tangible fixed assets
(5,704)
266
Depreciation and impairment of tangible fixed assets
292,771
222,514
Increase in provisions
136,288
Movements in working capital:
Decrease in stocks
78,835
13,676
Decrease/(increase) in debtors
1,202,264
(1,041,861)
(Decrease)/increase in creditors
(1,300,045)
447,676
Cash generated from operations
84,663
370,904
RHENUS LOGISTICS (CORBY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
21
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
239,519
(238,859)
660
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