Company registration number 02516107 (England and Wales)
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
COMPANY INFORMATION
Directors
D J Williams
G Hollington
Company number
02516107
Registered office
Unit 2
Discovery Way
Nuneaton
Warwickshire
United Kingdom
CV10 7PS
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
Bankers
Barclays
1-3 Haymarket Towers
Leicester
United Kingdom
LE1 1WA
Solicitors
Freeths
1 Colton Street
Leicester
United Kingdom
LE1 1QH
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Balance sheet
9
Notes to the financial statements
10 - 22
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal Activities

The company’s principal activity is unchanged since last year and is that of providing warehousing and logistical solutions for the retail industry in the UK.

Business Review

Turnover for the year reached £36.8 million, reflecting a 7% increase from £34.2 million in 2022. This growth was driven by increased sales from existing customers and new business secured over the year, facilitated by the expansion of our current footprint. The gross profit margin was 41.7% of turnover (2022: 40.7%). Profit before tax fell from £1.1 million in 2022 to a loss of £2.6 million in 2023.

The decline in financial results this year is a direct consequence of our strategic investment in a new 900,000 sq.ft. campus. While the short-term impact on profitability is significant, the long-term benefits in terms of increased capacity, operational efficiencies, and competitive positioning are expected to drive substantial growth and profitability in the future. This strategic investment is essential for sustaining and enhancing our market leadership in the warehousing industry.

The company has a solid future growth strategy and is committed to continued investment in IT infrastructure to streamline business operations and improve the quality and range of services offered to clients. Due to space and capacity restrictions within the existing site portfolio, combined with a robust pipeline of new business and strong market demand for our services, two new UK sites were opened in 2023. These facilities were designed with sustainability at the forefront to help the company meet its environmental goals. The new campus has created environmentally diversified spaces that enhance employee satisfaction, health, and well-being.

Principal risks and uncertainties

A variety of risks and uncertainties may influence the company, some of which are beyond its control. The principal risks facing the company are described below:

Competition and Market

Competitive pressure within the third-party logistics market along with economic uncertainty within the retail supply chain is an ongoing risk for the company. These factors could result in the loss of sales to other service providers and with retail customers strategically closing their store footprint; this could also negatively impact business volumes. The company manages that risk by shifting its new business sales focus towards e-commerce and online services whilst also consistently achieving key performance indicators and maintaining strong relationships with customers.

Credit Risk

The company’s principal financial assets are cash and trade debtors. To manage credit risk, the company has implemented robust credit policies. These policies include conducting thorough credit checks on potential customers and continuously monitoring existing customers to minimise exposure. Additionally, the company performs credit checks on key suppliers to ensure their reliability and financial stability.

Liquidity Risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Financial key performance indicators

Rhenus monitors its operations by analysing each individual service type and customer at the gross margin and profit 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 handling efficiency, to analyse the success of key client accounts. These measures help ensure comprehensive performance evaluation and customer satisfaction.

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, local communities, 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 unique needs and preferences, and endeavouring to provide innovative solutions and exceptional service quality.

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.

Local Communities: Through engagement initiatives, we actively contribute to the welfare and growth of the communities where we operate.

Environment: Environmental responsibility is central to our corporate values. We are committed to reducing our carbon footprint, conserving natural resources, and promoting environmental sustainability throughout our operations.

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.

Streamlined Energy and Carbon Report

The company has taken the exemption from reporting their individual emissions and energy consumption under the SECR regulations on the grounds that the relevant information has been included in the group strategic report of the parent entity, as described in note 20.

On behalf of the board

G Hollington
Director
16 July 2024
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH 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:

K Delaney
(Resigned 24 November 2023)
A Plikat
(Resigned 22 May 2023)
D J Williams
G Hollington
(Appointed 14 November 2023)
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, 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 company's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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:

 

 

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.

On behalf of the board
G Hollington
Director
16 July 2024
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
- 5 -
Opinion

We have audited the financial statements of Rhenus Warehousing Solutions Limited (formerly Rhenus Warehousing Solutions Lutterworth Limited) (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet 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:

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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH 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:

 

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 WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH 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:

 

 

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.

Graham Rigby
Senior Statutory Auditor
For and on behalf of Azets Audit Services
16 July 2024
2024-07-16
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
36,785,967
34,246,108
Cost of sales
(21,434,241)
(20,280,126)
Gross profit
15,351,726
13,965,982
Administrative expenses
(17,537,369)
(12,861,146)
Other operating income
69,766
66,530
Operating (loss)/profit
4
(2,115,877)
1,171,366
Interest receivable and similar income
5,237
6,177
Interest payable and similar expenses
(463,561)
-
0
(Loss)/profit before taxation
(2,574,201)
1,177,543
Tax on (loss)/profit
7
20,139
233,902
(Loss)/profit for the financial year
(2,554,062)
1,411,445
Retained earnings brought forward
8,658,796
7,247,351
Retained earnings carried forward
6,104,734
8,658,796

The profit and loss account has been prepared on the basis that all operations are continuing operations.

RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
54,361,743
16,043,225
Current assets
Stocks
9
164,726
135,231
Debtors falling due after more than one year
10
863,583
1,729,231
Debtors falling due within one year
10
15,298,415
11,439,978
Cash at bank and in hand
34,314
542,223
16,361,038
13,846,663
Creditors: amounts falling due within one year
11
(12,992,925)
(10,305,745)
Net current assets
3,368,113
3,540,918
Total assets less current liabilities
57,729,856
19,584,143
Creditors: amounts falling due after more than one year
12
(36,500,000)
(5,614,938)
Provisions for liabilities
Provisions
13
14,664,068
4,829,216
Deferred tax liability
14
411,054
431,193
(15,075,122)
(5,260,409)
Net assets
6,154,734
8,708,796
Capital and reserves
Called up share capital
16
50,000
50,000
Profit and loss reserves
6,104,734
8,658,796
Total equity
6,154,734
8,708,796
The financial statements were approved by the board of directors and authorised for issue on 16 July 2024 and are signed on its behalf by:
G Hollington
Director
Company Registration No. 02516107
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

Rhenus Warehousing Solutions Limited (formerly Rhenus Warehousing Solutions Lutterworth Limited) is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, Discovery Way, Nuneaton, Warwickshire, United Kingdom, CV10 7PS.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Rhenus Warehousing Solutions UK Limited. These consolidated financial statements are available from its registered office, Unit 2 Discovery Way, Nuneaton, Warwickshire, England, CV10 7PSy.

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. The company retains the support of the wider Rhenus group to fund the expansion of new warehousing facilities and associated costs, in addition to supporting the company in meeting its trading liabilities as they fall due.

1.3
Turnover

Turnover comprises revenue recognised by the company in respect of storage, handling and freight services supplied by during the year, exclusive of value added tax and trade discounts. Turnover is recognised in line with services provided.

RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
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 land and buildings
Over the period of the lease
Plant and equipment
6.7% - 30% straight line
Fixtures and fittings
20% - 33% straight line
Computer software
20% - 33% straight line
Motor vehicles
25% straight line
Assets under construction
Not depreciated

Estimated future dilapidation costs included within leasehold land and buildings 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 valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and 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.

 

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.

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 costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership of the lease. 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 lease asset are consumed

1.13
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty
Dilapidation provision

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

RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
3
Turnover and other revenue

The whole of the turnover of the company for the year has been derived from its principle activity, wholly undertaken in the United Kingdom.

 

4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging:
£
£
Exchange losses
14,121
-
0
Fees payable to the company's auditor for the audit of the company's financial statements
27,500
26,250
Fees payable to the company's auditor for non-audit services
4,800
4,500
Depreciation of owned tangible fixed assets
2,457,463
1,553,575
Operating lease charges and related expenses
4,948,768
3,342,071

 

5
Employees

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

2023
2022
Number
Number
Office and management
117
99
Warehouse staff
314
268
Total
431
367

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
11,874,259
9,965,049
Social security costs
1,080,549
938,857
Pension costs
310,778
234,528
13,265,586
11,138,434
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
297,579
198,077
Company pension contributions to defined contribution schemes
9,438
2,752
307,017
200,829

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
297,579
198,077
Company pension contributions to defined contribution schemes
9,438
2,752
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(443,865)
Deferred tax
Origination and reversal of timing differences
(20,139)
209,958
Adjustment in respect of prior periods
-
0
5
Total deferred tax
(20,139)
209,963
Total tax credit
(20,139)
(233,902)
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
(Continued)
- 17 -

The actual credit 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
(2,574,201)
1,177,543
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(605,452)
223,733
Tax effect of expenses that are not deductible in determining taxable profit
-
0
1,453
Tax effect of income not taxable in determining taxable profit
-
0
(5,689)
Depreciation on assets not qualifying for tax allowances
8,381
63,739
Deferred tax adjustments in respect of prior years
614,490
5
Capitalised interest
-
0
(20,320)
Difference in tax rates
(37,558)
50,390
Effect of capital allowances including super deductions
-
0
(547,213)
Taxation credit for the year
(20,139)
(233,902)
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
8
Tangible fixed assets
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computer software
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
11,327,641
12,013,226
1,351,665
594,851
-
0
169,578
25,456,961
Additions
37,997,403
720,333
1,140,402
561,935
350,907
60,001
40,830,981
Disposals
-
0
-
0
-
0
-
0
-
0
(109,900)
(109,900)
Transfers
12,013,226
(12,013,226)
-
0
-
0
-
0
-
0
-
0
At 31 December 2023
61,338,270
720,333
2,492,067
1,156,786
350,907
119,679
66,178,042
Depreciation and impairment
At 1 January 2023
7,456,630
-
0
1,231,709
565,418
-
0
159,979
9,413,736
Depreciation charged in the year
2,229,895
-
0
142,103
70,865
-
0
14,600
2,457,463
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
-
0
(54,900)
(54,900)
At 31 December 2023
9,686,525
-
0
1,373,812
636,283
-
0
119,679
11,816,299
Carrying amount
At 31 December 2023
51,651,745
720,333
1,118,255
520,503
350,907
-
0
54,361,743
At 31 December 2022
3,871,011
12,013,226
119,956
29,433
-
0
9,599
16,043,225
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Tangible fixed assets
(Continued)
- 19 -

Estimated future dilapidation costs have been capitalised and included in leasehold land and buildings. The net book value of which is £10,613,555 (2022: £1,668,300).

9
Stocks
2023
2022
£
£
Raw materials and consumables
164,726
135,231
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
8,073,351
8,176,859
Corporation tax recoverable
771,373
771,373
Amounts owed by group undertakings
3,484,427
1,203,067
Other debtors
1,209,705
332,530
Prepayments and accrued income
1,759,559
956,149
15,298,415
11,439,978
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
863,583
1,729,231
Total debtors
16,161,998
13,169,209
11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
4,456,749
8,027,107
Amounts owed to group undertakings
5,531,218
114,784
Taxation and social security
537,335
597,757
Other creditors
233,878
209,841
Accruals and deferred income
2,233,745
1,356,256
12,992,925
10,305,745

 

RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
36,500,000
5,600,000
Other creditors
-
0
14,938
36,500,000
5,614,938

 

13
Provisions for liabilities
2023
2022
£
£
Dilapidation provision
14,664,068
4,829,216
Movements on provisions:
Dilapidation provision
£
At 1 January 2023
4,829,217
Additional provisions in the year
9,834,851
At 31 December 2023
14,664,068
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
6,099,807
2,531,596
Tax losses
(5,212,440)
(2,071,423)
Short term timing differences
(476,313)
(28,980)
411,054
431,193
RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Deferred taxation
(Continued)
- 21 -
2023
Movements in the year:
£
Liability at 1 January 2023
431,193
Credit to profit or loss
(20,139)
Liability at 31 December 2023
411,054
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
310,778
234,528

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. At the balance sheet date an amount of £62,157 (2022: £38,384) was outstanding and is included within other creditors.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of 10p each
500,000
500,000
50,000
50,000
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
7,349,809
4,135,547
Between two and five years
26,687,473
7,208,089
In over five years
109,894,216
465,665
143,931,498
11,809,301
18
Capital commitments

At year end the company has capital commitments totalling £nil (2022: £28,178,322), in respect to the continued construction of the new warehouses.

 

RHENUS WAREHOUSING SOLUTIONS LIMITED (FORMERLY RHENUS WAREHOUSING SOLUTIONS LUTTERWORTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
19
Related party transactions
Balances with related parties

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 10 & 11.


The following material 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
-
-
-
114,784
Rhenus Logistics Limited
2,281,430
-
5,000,000
-
Rhenus SE & Co. KG
1,202,997
-
36,500,000
5,600,000
Rhenus Warehousing Solutions UK Limited
-
1,203,067
-
-
20
Ultimate controlling party

The company's immediate parent undertaking is Rhenus Warehousing Solutions Holdings Limited, a company registered in England and Wales.

 

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.

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