Company registration number 02469124 (England and Wales)
RHENUS HIGH TECH LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RHENUS HIGH TECH LIMITED
COMPANY INFORMATION
Directors
G A Barrow
C Braune
G Hollington
Company number
02469124
Registered office
Keiler House
Challenge Road
Ashford
Middlesex
United Kingdom
TW15 1AX
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
RHENUS HIGH TECH 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 HIGH TECH 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 High Tech Limited continued to focus on its core business providing high quality value add logistics services to customers in the Healthcare, IT, Banking and Retail sectors. The business continued its general diversification in high value markets both vertically and horizontally, whilst seeking new opportunities in Sports Technology area, specifically.
2023 was another very good year for the company financially, turnover increased marginally to £19m following an exceptionally strong performance of £18.6m in 2022 and operating profit, whilst decreasing slightly compared to 2022, remained strong at £1.3m. Underlying inflationary pressure continued throughout the year, putting pressure on operational expenses, this was particularly apparent in Real Estate related cost lines.
2023 saw further investment in the business, especially in people and systems to support future growth and to help maintain exceptional service to customers. The company continues to focus on process improvements and training for employees, to constantly drive gains in employee satisfaction, quality and efficiency.
2024 is expected to bring similar challenges to 2023 with regards to ongoing global political/economic uncertainty, but a reduction in the pace of underlying inflationary cost pressure is anticipated. The directors believe the company remains very well positioned and are optimistic about delivering solid financial results in the future.
Principal risks and uncertainties
There are numerous uncertainties for UK Logistics companies when looking to the future including; further changes to the UK customs environment, systems & processes; inflationary pressures within the UK market, and wider global political/economic uncertainty. However, the directors continue to monitor and wherever possible put mitigation actions in place to manage risk in general. 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.
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.
RHENUS HIGH TECH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
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 HIGH TECH 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.
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:
G A Barrow
C Braune
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 HIGH TECH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
G Hollington
Director
12 July 2024
RHENUS HIGH TECH LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RHENUS HIGH TECH LIMITED
- 5 -
Opinion
We have audited the financial statements of Rhenus High Tech 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 profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 HIGH TECH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF RHENUS HIGH TECH 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 HIGH TECH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF RHENUS HIGH TECH 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 shareholder, 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 shareholder 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 shareholder 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 HIGH TECH LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
19,001,078
18,605,481
Cost of sales
(10,550,381)
(10,658,417)
Gross profit
8,450,697
7,947,064
Administrative expenses
(7,169,149)
(6,294,302)
Other operating income
61,668
64,727
Operating profit
4
1,343,216
1,717,489
Interest payable and similar expenses
7
(29,397)
(36,065)
Profit before taxation
1,313,819
1,681,424
Tax on profit
8
(176,405)
(357,974)
Profit for the financial year
1,137,414
1,323,450
Retained earnings brought forward
2,200,299
876,849
Retained earnings carried forward
3,337,713
2,200,299
The profit and loss account has been prepared on the basis that all operations are continuing operations.
RHENUS HIGH TECH LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
9
14,982
Tangible assets
10
1,219,947
1,331,089
1,219,947
1,346,071
Current assets
Debtors
11
6,391,018
5,436,132
Cash at bank and in hand
7,666
256,209
6,398,684
5,692,341
Creditors: amounts falling due within one year
12
(2,672,279)
(2,720,870)
Net current assets
3,726,405
2,971,471
Total assets less current liabilities
4,946,352
4,317,542
Creditors: amounts falling due after more than one year
13
(300,000)
(850,000)
Provisions for liabilities
14
(1,208,636)
(1,167,240)
Net assets
3,437,716
2,300,302
Capital and reserves
Called up share capital
16
100,003
100,003
Profit and loss reserves
3,337,713
2,200,299
Total equity
3,437,716
2,300,302
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. 02469124
RHENUS HIGH TECH 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
21
390,986
698,879
Interest paid
(29,397)
(36,065)
Income taxes paid
(304,097)
(220,830)
Net cash inflow from operating activities
57,492
441,984
Investing activities
Purchase of tangible fixed assets
(316,687)
(540,104)
Proceeds on disposal of tangible fixed assets
10,652
8,255
Net cash used in investing activities
(306,035)
(531,849)
Net decrease in cash and cash equivalents
(248,543)
(89,865)
Cash and cash equivalents at beginning of year
256,209
346,074
Cash and cash equivalents at end of year
7,666
256,209
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Rhenus High Tech Limited is a private company limited by shares incorporated in England and Wales. The registered office is Keiler House, Challenge Road, Ashford, Middlesex, United Kingdom, TW15 1AX.
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 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. 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 delivered and all the conditions in the contract have been met.
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
3 years 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 HIGH TECH 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 years straight line
Plant and equipment
3 - 10 years straight line
Computers
3 years straight line
Motor vehicles
3 - 10 years 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 the carrying value of the asset, and is credited or charged to profit or loss.
1.6
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.
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.
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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 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.
1.7
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.
1.8
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.
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.
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.9
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.
1.10
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.
1.11
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.
Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of leases.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.12
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.
1.13
Finance costs are charged to the statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
RHENUS HIGH TECH 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.
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
Freight services
19,001,078
18,605,481
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
16,067,266
15,785,757
Rest of Europe
2,482,216
2,418,952
Rest of World
451,596
400,772
19,001,078
18,605,481
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
1,528
3,260
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
14,250
Fees payable to the company's auditor in respect of non-audit services
3,350
3,150
Depreciation of owned tangible fixed assets
469,225
564,551
Profit on disposal of tangible fixed assets
(10,652)
(2,854)
Amortisation of intangible assets
14,982
28,047
Operating lease charges and other related expenses
1,567,244
1,337,437
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Distribution
73
71
Administrative
61
55
Directors
3
3
Total
137
129
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
5,343,844
4,936,607
Social security costs
554,618
585,034
Pension costs
293,845
291,457
6,192,307
5,813,098
6
Remuneration of key management personnel
2023
2022
£
£
Remuneration for qualifying services
197,462
152,780
Company pension contributions to defined contribution schemes
38,970
50,108
236,432
202,888
7
Interest payable and similar expenses
2023
2022
£
£
Interest payable to group undertakings
29,397
36,065
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
304,097
248,782
Adjustments in respect of prior periods
(37,011)
Total current tax
304,097
211,771
Deferred tax
Origination and reversal of timing differences
(127,692)
146,203
Total tax charge
176,405
357,974
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,313,819
1,681,424
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
309,010
319,471
Tax effect of expenses that are not deductible in determining taxable profit
391
231
Adjustments in respect of prior years
(37,011)
Effect of change in corporation tax rate
393
35,089
Depreciation on assets not qualifying for tax allowances
2,265
65,502
Deferred tax adjustments in respect of prior years
(134,329)
Super deductions allowed
(1,325)
(25,308)
Taxation charge for the year
176,405
357,974
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
9
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
290,296
84,603
374,899
Amortisation and impairment
At 1 January 2023
290,296
69,621
359,917
Amortisation charged for the year
14,982
14,982
At 31 December 2023
290,296
84,603
374,899
Carrying amount
At 31 December 2023
At 31 December 2022
14,982
14,982
10
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,954,315
275,803
3,202,044
390,028
5,822,190
Additions
75,077
7,500
233,317
42,189
358,083
Disposals
(68,267)
(43,821)
(1,729,993)
(15,750)
(1,857,831)
At 31 December 2023
1,961,125
239,482
1,705,368
416,467
4,322,442
Depreciation and impairment
At 1 January 2023
1,108,128
261,741
2,894,684
226,548
4,491,101
Depreciation charged in the year
241,634
8,647
176,469
42,475
469,225
Eliminated in respect of disposals
(68,267)
(43,821)
(1,729,993)
(15,750)
(1,857,831)
At 31 December 2023
1,281,495
226,567
1,341,160
253,273
3,102,495
Carrying amount
At 31 December 2023
679,630
12,915
364,208
163,194
1,219,947
At 31 December 2022
846,187
14,062
307,360
163,480
1,331,089
Estimated future dilapidation costs have been capitalised and included in leasehold improvements. The net book value of which is £480,525 (2022: £625,016).
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,127,451
4,202,212
Amounts owed by group undertakings
1,276,514
551,117
Other debtors
103,411
88,592
Prepayments and accrued income
685,995
524,256
6,193,371
5,366,177
Deferred tax asset (note 15)
197,647
69,955
6,391,018
5,436,132
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
496,209
550,361
Amounts owed to group undertakings
353,409
395,970
Taxation and social security
592,328
647,856
Other creditors
28,817
27,560
Accruals and deferred income
1,201,516
1,099,123
2,672,279
2,720,870
Net obligations under finance leases and hire purchase contracts are secured by way of a charge on the assets financed.
13
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
300,000
850,000
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
14
Provisions for liabilities
2023
2022
£
£
Dilapidation provision
1,208,636
1,167,240
Movements on provisions:
Dilapidation provision
£
At 1 January 2023
1,167,240
Additional provisions in the year
41,396
At 31 December 2023
1,208,636
15
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
734
50,855
Short term timing differences
196,913
19,100
197,647
69,955
2023
Movements in the year:
£
Asset at 1 January 2023
(69,955)
Credit to profit or loss
(127,692)
Asset at 31 December 2023
(197,647)
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,003
100,000
"A" non-voting ordinary share of £1 each
1
1
-
1
"B" non-voting ordinary share of £1 each
1
1
-
1
"C" non-voting ordinary share of £1 each
1
1
-
1
100,003
100,003
100,003
100,003
17
Pension commitments
Included within other creditors is £36,611 (2022: £33,875) in respect of contributions to the company's defined contribution pension scheme, paid monthly in arrears.
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
1,164,450
1,360,326
Between two and five years
2,730,022
3,700,167
In over five years
3,165,804
5,174,838
7,060,276
10,235,331
19
Related party transactions
Balances with related parties
Amounts owed by
Amounts owed to
related parties
related parties
2023
2022
2023
2022
£
£
£
£
ALS Customs Consulting
-
-
-
-
Other related parties
7,413
7,839
5,749
20,788
Rhenus High Tech N.V.
667
10,998
285
2,662
Rhenus High Tech Service GmbH & Co.K
44,796
9,430
-
9,954
Rhenus Home Delivery Ltd
1,777
2,062
304,097
314,771
Rhenus Logistics Ltd
333
8,936
6,042
1,970
Rhenus SE & Co. KG
1,180,850
475,255
304,299
859,397
Rhenus South Europe, S.L.
-
-
-
10,012
Rhenus Special Delivery GmbH & Co.
-
-
32,936
26,416
Rhenus Warehousing Solutions Tilburg B.V.
40,296
36,351
-
-
RHENUS HIGH TECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
20
Ultimate controlling party
At the current and preceding year ends the company's ultimate parent undertaking was Rethmann SE & Co. KG, a private company incorporated in Germany, controlled by its directors, and the immediate parent undertaking of the company was Rhenus Beteiligungen GmBH, a company incorporated in Germany.
21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,137,414
1,323,450
Adjustments for:
Taxation charged
176,405
357,974
Finance costs
29,397
36,065
Gain on disposal of tangible fixed assets
(10,652)
(2,854)
Amortisation and impairment of intangible assets
14,982
28,047
Depreciation and impairment of tangible fixed assets
469,225
564,551
Movements in working capital:
Increase in debtors
(827,194)
(922,843)
Decrease in creditors
(598,591)
(685,511)
Cash generated from operations
390,986
698,879
22
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
256,209
(248,543)
7,666
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