The directors present the strategic report for the year ended 31 December 2023.
Introduction
The group’s principal activity is unchanged since last year and is that of providing international freight forwarding solutions.
In preparing the financial statements and associated strategic and directors’ reports, the board have fully considered the requirements (‘a’ – ‘f’) as set out in s172 of the Companies Act 2006 in the narrative and the disclosures which follow.
The consolidated sales of the group in 2023 was £85.9m, representing a reduction of 20% (£21.5m) compared to the prior year, the decline in sales occurred as a result of lower underlying shipment volumes and substantially lower global shipping container rates compared to 2022.
Gross profit for the year decreased by 5% compared to prior year (£1.3m) impacted by the reduction in underlying sales but offset in part by an increase in the gross margin ratio from 23.8% (2022) to 28.3% (2023).
Administrative costs increased in 2023 to £27.7m (+£2m), driven by investment in leasehold property, creating a bespoke warehousing solution in the Heathrow area, and investing in new employees to focus on generating future growth opportunities. While the short-term impact on profitability is evident, the medium-term benefits in terms of accessing new markets, and new competitive positioning are expected to drive growth and profitability.
The combination of challenging market conditions, cost inflation and administrative cost investments in the year resulted in an operating loss of £3.4m (4% of sales) being reported. The 2022 profit before taxation included an exceptional gain on the sale of group businesses of £4.3m, no exceptional gains were realised in 2023.
The year saw marginally lower underlying demand for freight forwarding services from existing customers. The ‘World Containerized Freight Index’ fell by circa 75% on average year over year which led to lower revenue generation in this area of the business. During 2022 the group invested heavily in new facilities within the UK, providing access to Life Sciences and Healthcare markets and also to enable provision of ‘regulated agent’ cargo handling services. The full ongoing cost of these investments is recognised in the Administrative Costs for 2023, once fully utilised they will support strong additional revenue growth for the company. The implementation of Rhenus Road Groupage Network 2.0 in early 2024 is also an exciting milestone that is expected to facilitate growth in the future.
The group continued to experience inflationary pressures, in particular related to rents, business rates and utility costs. The ongoing commitment to investment in IT infrastructure to streamline business operations and to improve the quality and range of services offered to customers will continue, as will the focus on improving efficiency through automation of processes and ensuring best practice processes are adopted in all areas of the business.
Despite a challenging 2023 the directors are optimistic that the investments made will deliver revenue growth and expect the company to deliver improved profitability in the future. The group’s solid balance sheet position will allow it to continue provide support for other Rhenus Group Companies based in the UK.
There are numerous uncertainties for UK Logistics companies when looking to the future including; further changes to the UK customs environment, systems & processes; general cost inflation, and wider global political/economic uncertainty. The directors continue to monitor and wherever possible put mitigation actions in place to manage these risks and risk in general.
Developments and future outlook
The company continues to look for opportunities to develop its business within traditional as well as new sectors, including Life Sciences and Healthcare, and implementation of a new Road Groupage network offering daily departures to Europe.
Financial risk management objectives and policies
As well as short term trade receivables and trade payables that arise directly from operations, the company’s financial instruments comprise of cash and lease payables. The objectives of holding financial instruments are to raise finance for the company’s operations and manage related risks. The company’s activities expose the company to a number of risks including interest rate risk, credit risk, liquidity risk and exchange risk. The company manages these risks by regularly monitoring the business and providing ongoing forecasts of the expected impacts.
Interest rate risk
The company's interest rate risk exposure arises mainly from interest-bearing borrowings, including intra-group loans. Contractual agreements entered into at floating rates expose the entity to cash flow risk, fixed rate borrowings under finance leases exposes the entity to fair value risk. The company regularly reviews its funding arrangements to ensure they are competitive within the marketplace.
Credit risk
The company monitors credit risk closely and considers that its current policies of credit checks meet its objectives of managing exposure to credit risk.
Liquidity risk
The company closely monitors its bank balance, intra-group trading and external borrowings and other credit facilities in comparison to its outstanding commitments to ensure it has sufficient funds to meet its obligations as they fall due. The company's finance function produces regular forecasts that estimate cash inflows and outflows for the next 12 months, so that management can ensure sufficient funding is in place as it is required. The company's objective is to maintain a balance between the continuity of funding and flexibility.
Currency risk
The company closely monitors its exposure to currency risk, the directors currently consider risk in this area to be low.
Financial key performance indicators
Rhenus monitors its operations by analysing each individual service type and customer at gross margin level. Performance is assessed by comparing actual results against budgets and forecasts. Monthly comparisons are made between the current year and the previous year, as well as against the budget. Management focuses on any significant adverse deviations and take corrective action where possible.
In addition to financial metrics, Rhenus uses non-financial performance measures, such as timeliness, accuracy, and internal efficiency, to analyse the success of branches. These measures help ensure comprehensive performance evaluation and customer satisfaction.
Additional Information and Explanations
Current reporting year (Jan 23 – Dec 23), prior reporting years (Jan 22 – Dec 22)
| 2023 | 2022 |
|
Total energy consumption from gas and electricity | 1,281,650 | 1,251,798 | kWh |
Scope 1 – All Direct Emissions from the activities of an organisation or under their control. Including fuel combustion on site such as gas boilers, fleet vehicles and air-conditioning leaks. | 47 | 63 | tCo2e |
Scope 2 – Indirect Emissions from electricity purchased and used by the organisation. Emissions are created during the production of the energy and eventually used by the organisation. | 82 | 30 | tCo2e |
Total emissions (Scope 1 & 2) | 130 | 93 | tCo2e |
Turnover | 85,945,714 | 106,148,922 | £ |
Intensity Ratio (Scope 1 & 2) | 1.51 | 0.88 | kgC02e per mil£ T/O |
We have not reported Scope 3 emissions as this is optional for unquoted companies (as per SECR guidance issued in March 2019). Our choice to omit these emissions is due to the lack of verifiable data and the high number of assumptions involved in emissions calculations, which could be misleading.
Energy Efficient Actions
We are committed to responsible energy management and support energy efficiency actions throughout our organisation, where it is cost effective to do so. We will maintain the ISO 14001 certification and are on schedule to comply with the ESOS Phase 3 deadline of August 2024
In 2023 we have taken the following actions to reduce our emissions:
Continued with our strategy to move all depots to certified green tariffs, with energy consumed being backed by Renewable Energy Guarantee of Origin (REGO) certificates.
Continued with our project of increasing our fleet of Electric Fork Lift Trucks at selected depots with 2 main depots now fully electric.
Increased availability of Hybrid and Full Electric Vehicles as part of the grey fleet.
Launched an Electric Car Salary Sacrifice scheme available to all employees.
Continued to upgrade PCs and laptops to more energy efficient models.
Participation in the Rhenus Co-Zero programme aiming for zero emissions by 2050.
Monthly meetings of the UK Green Logistics working group.
Local site initiatives including reducing plastic usage, waste separation and car sharing implemented.
Increased sustainability reporting.
Continual reduction of paper usage via increased digitalisation of processes.
Prohibited the purchase of paper which is not 100% recycled.
Future plans include:
Continued Sustainability initiatives throughout the UK.
Installation of solar panels at selected depots.
Continue upgrade of lighting to LED.
Further expanding electric Fork Lift Truck use.
Directors’ statement of compliance with duty to promote the success of the Company.
Section 172 of the Companies Act 2006 requires Directors to consider the interests of stakeholders in their decision-making. This statement outlines how the Directors adhere to the matters set out in Section 172 while fulfilling their roles.
Our responsibilities extend to our shareholders, customers, suppliers, and the environment. We engage with our stakeholders in various ways, including:
Shareholders: We prioritise transparency and effective communication to ensure shareholders are informed about the company's strategies, performance, and decisions. We seek to uphold their trust and confidence by delivering long-term value and sustainable growth.
Customers: Our commitment to customer satisfaction is paramount. We collaborate closely with our customers, understanding their needs and preferences, and endeavour to provide innovative solutions. The group employs a full time Quality and Compliance Manager who oversees all quality assurance accreditations and systems to ensure the group continues to offer the highest levels of service and quality to its customers.
Suppliers: We uphold ethical sourcing practices and foster collaborative partnerships with our suppliers. By promoting fairness, sustainability, and adherence to high standards in our supply chain, we aim to create shared value and mutual success.
Environment: Environmental responsibility is central to our corporate values. As a logistics provider, we are acutely aware of our impact on the environment and seek to mitigate this wherever possible.
Some examples of how this is achieved are listed below:
Combining collections and deliveries wherever possible, thereby reducing emissions within the process chain
Maximising utilisation of trailers for groupage shipments
Reducing electricity usage throughout the UK via LED lighting installation
Supporting a Company Car policy aimed at lower CO2 emissions vehicles, including Hybrid and Full Electric cars where possible.
Providing employees with the option to lease electric vehicles through a salary sacrifice programme
Working with our real estate consultants to ensure that any properties designed for us meet the best environmental standards possible.
By prioritizing the interests of our stakeholders and engaging with them proactively, we aim to foster trust, create shared value, and drive sustainable growth for the benefit of all.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2023.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The group's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.
We have audited the financial statements of Rhenus Logistics Limited ('the parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statements of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
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.
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 entity 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.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £3,124,030 (2022 - £519,293 loss).
Rhenus Logistics Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Liverpool Road, Eccles, Manchester, Lancashire, United Kingdom, M30 7RF.
The group consists of Rhenus Logistics Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Rhenus Logistics Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Going concern
At the time of approving the financial statements the directors have a reasonable expectation, and confirmed with the continued support from the wider Rhenus group, that the company has adequate resources to continue in operational existence for the foreseeable future.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Group will receive the 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.
Estimated future dilapidation costs included within short term leasehold property are depreciated over the remaining term of the related lease.
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Investments in subsidiaries are measured at cost less accumulated impairment.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, 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.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss for the period.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The group recognises dilapidation provisions on the leasehold properties it occupies. The directors assess the level of provision required on a property by property basis based on past experience within the property portfolio along with professional advice from qualified surveyors where appropriate. These provisions are reviewed annually to ensure that they reflect the current best estimate of the provision required.
The company has been advanced additional funds from the wider group during the year with total group creditors amounting to £24.8m as shown in notes 15 and 16 to the financial statements. The judgement applied by the directors in determining that the going concern basis remains appropriate to the company has been supported by confirmation that such funds will continue to be made available and not be recalled to the detriment of third party creditors.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution scheduel amounted to 4 (2022: 4).
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:
Estimated future dilapidation costs have been capitalised and included in short term leasehold property. The net book value of which is £1,583,781 (2022: £1,365,694).
Details of the company's subsidiaries at 31 December 2023 are as follows:
Amounts due to group undertakings (in the solus company balance sheet) includes a figure of £8.7m due to a subsidiary undertaking that is expected to be offset by an intercompany dividend receivable during 2024. Accordingly, of the company's current liabilities, a sum of £8.7m is unlikely to be required to be settled in cash.
A defined contribution pension scheme is operated by the group for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Included within accruals and deferred income are unpaid amounts with respect to the defined contribution scheme totalling £133,510 (2022: £108,853).
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The company has taken advantage of the exemption in Financial Reporting Standard 102 Section 33 "Related party disclosures" and has not disclosed transactions with group and other related parties in the year which have been conducted on standard commercial terms.
Year end balances with group undertakings have been aggregated and disclosed in notes 13 and 15.
The following material amounts were outstanding at the reporting end date: