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Registration number: 04225038

KRG Transport Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2024

 

KRG Transport Ltd

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 11

 

KRG Transport Ltd

(Registration number: 04225038)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

29,260

1,881

Tangible assets

5

3,830,990

3,184,289

Investment property

6

238,848

-

Investments

7

1

-

 

4,099,099

3,186,170

Current assets

 

Stocks

8

127,500

340,503

Debtors

9

863,030

1,147,759

Cash at bank and in hand

 

652,160

471,555

 

1,642,690

1,959,817

Creditors: Amounts falling due within one year

10

(1,233,158)

(935,406)

Net current assets

 

409,532

1,024,411

Total assets less current liabilities

 

4,508,631

4,210,581

Creditors: Amounts falling due after more than one year

10

(758,470)

(624,694)

Provisions for liabilities

(695,141)

(650,677)

Net assets

 

3,055,020

2,935,210

Capital and reserves

 

Called up share capital

1

1

Capital redemption reserve

1

1

Retained earnings

3,055,018

2,935,208

Shareholders' funds

 

3,055,020

2,935,210

 

KRG Transport Ltd

(Registration number: 04225038)
Balance Sheet as at 31 May 2024

For the financial year ending 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 18 September 2024
 

K R Gooding
Director

   
     
 

KRG Transport Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Hillside Farm
Woolavington Road
Puriton
Bridgwater
Somerset
TA7 8AA

These financial statements were authorised for issue by the director on 18 September 2024.

2

Accounting policies

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Changes in accounting estimate

Depreciation of motor vehicles

During the year the director reassessed the estimated useful lives of the motor vehicles and concluded that a depreciation rate of 20% reducing balance was more appropriate for this class of asset.

The effect of the change on assets, liabilities, income and expense in the current year is as follows:

£

Increase in the net book value of Motor Vehicles

179,291

 

 

KRG Transport Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Revenue recognition

Turnover comprises the fair value of the consideration received for the provision of transport services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Intangible assets

Intangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% straight line

Computer software

25% straight line

 

KRG Transport Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Tangible assets

Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

Nil

Plant and machinery

25% reducing balance

Office equipment

25% reducing balance

Motor vehicles

20-25% reducing balance

Freehold property is not subject to periodic changes for depreciation. The Companies Act 2006 would normally require such assets to be depreciated over their useful economic life. However, in the opinion of the directors this would not show a true and fair view of the value of the assets at the balance sheet date.

If this departure from the Act had not been made, the proft for the financial year would have been reduced by the depreciation on the property. However, the directors believe that the residual value of the property is greater than historical cost and therefore the depreciation charge for the year would have been nil.

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the director. The director uses observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

KRG Transport Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

KRG Transport Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year was 47 (2023 - 42).

4

Intangible assets

Goodwill
 £

Computer software
 £

Total
£

Cost or valuation

At 1 June 2023

-

2,152

2,152

Additions acquired separately

30,000

-

30,000

At 31 May 2024

30,000

2,152

32,152

Amortisation

At 1 June 2023

-

271

271

Amortisation charge

2,083

538

2,621

At 31 May 2024

2,083

809

2,892

Carrying amount

At 31 May 2024

27,917

1,343

29,260

At 31 May 2023

-

1,881

1,881

 

KRG Transport Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

5

Tangible assets

Freehold land and buildings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 June 2023

249,606

54,900

62,047

7,099,565

7,466,118

Additions

-

37,011

7,220

1,354,004

1,398,235

Disposals

-

-

-

(307,243)

(307,243)

At 31 May 2024

249,606

91,911

69,267

8,146,326

8,557,110

Depreciation

At 1 June 2023

-

29,779

47,340

4,204,710

4,281,829

Charge for the year

-

12,834

5,365

720,262

738,461

Eliminated on disposal

-

-

-

(294,170)

(294,170)

At 31 May 2024

-

42,613

52,705

4,630,802

4,726,120

Carrying amount

At 31 May 2024

249,606

49,298

16,562

3,515,524

3,830,990

At 31 May 2023

249,606

25,121

14,707

2,894,855

3,184,289

6

Investment properties

2024
£

Additions

238,848

At 31 May

238,848

There has been no valuation of investment property by an independent valuer.

7

Investments

2024
£

2023
£

Investments in associates

1

-

Associates

£

Cost

Additions

1

Carrying amount

At 31 May 2024

1

 

KRG Transport Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

8

Stocks

2024
£

2023
£

Work in progress

-

204,503

Other inventories

127,500

136,000

127,500

340,503

9

Debtors

Note

2024
£

2023
£

Trade debtors

 

821,402

794,542

Amounts owed by related parties

14

5,359

-

Other debtors

 

12,010

324,225

Prepayments

 

24,259

28,992

 

863,030

1,147,759

10

Creditors

Due within one year

Note

2024
£

2023
£

 

Loans and borrowings

11

817,045

657,045

Trade creditors

 

169,895

121,075

Social security and other taxes

 

165,568

77,842

Other creditors

 

67,689

69,883

Accruals

 

12,961

9,561

 

1,233,158

935,406

Due after one year

 

Loans and borrowings

11

758,470

624,694

 

KRG Transport Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

11

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

16,176

38,950

Hire purchase contracts

742,294

585,744

758,470

624,694

Current loans and borrowings

2024
£

2023
£

Bank borrowings

21,364

20,682

Hire purchase contracts

795,681

636,363

817,045

657,045

HP and finance lease liabilities are secured against the relevant asset.

12

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

889

-

The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,024 (2023 - £Nil).

13

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £Nil (2023 - £152,771). This includes HP and finance lease liabilities that were signed prior to but did not commence until after the year end.

 

KRG Transport Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

14

Related party transactions

Summary of transactions with key management

Transactions with the director

2024

At 1 June 2023
£

Advances to director
£

Repayments by director
£

At 31 May 2024
£

Director's loan account

54,621

427,817

(482,438)

-

 

2023

At 1 June 2022
£

Advances to director
£

Repayments by director
£

At 31 May 2023
£

Director's loan account

407,535

172,036

(524,950)

54,621

 

Summary of transactions with other related parties

During the year the company provided a loan to the director. The loan was interest free and repayable on demand.
 

Loans to related parties

2024

Associates
£

Total
£

Advanced

5,360

5,360

Repaid

(1)

(1)

At end of period

5,359

5,359

Terms of loans to related parties

During the year the company provided loans to companies under common control. These loans are interest free and repayable on demand.
 

15

Non adjusting events after the financial period

After the balance sheet date, some of the company's trade and assets were transferred to companies under common control.

The trade and assets transferred generated revenues of £266,727 and profits before tax of £39,090 during the year to 31 May 2024.