REGISTERED NUMBER: |
M.B. Freight Forwarding Limited |
Strategic Report, Directors' Report and |
Financial Statements |
for the Year Ended 31 December 2023 |
REGISTERED NUMBER: |
M.B. Freight Forwarding Limited |
Strategic Report, Directors' Report and |
Financial Statements |
for the Year Ended 31 December 2023 |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company information | 1 |
Strategic report | 2 |
Directors' report | 3 | to | 4 |
Report of the independent auditors | 5 | to | 6 |
Statement of income and retained earnings | 7 |
Statement of financial position | 8 |
Statement of cash flows | 9 |
Notes to the financial statements | 10 | to | 20 |
M.B. Freight Forwarding Limited |
Company Information |
for the Year Ended 31 December 2023 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Statutory Auditor |
Chartered Accountants |
Armagh Business Centre |
2 Loughgall Road |
Armagh |
BT61 7NH |
Solicitors: |
16-22 Edward Street |
Portadown |
BT62 3NA |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
Review of business |
The principal activity of the Company during the year was that of parcel and general freight distribution. |
Development and performance |
The Company has continued to perform well and the directors consider the results for the year and the position of the company at the year end to be satisfactory. The company will continue to seek every opportunity to increase profitable turnover. |
Key Performance Indicators |
The Board monitors the progress of the Company by reference to the following KPIs |
Turnover | £9,493,291 (2022: £10,807,833) |
Gross profit % | 58.1% (2022: 55.7%) |
Operating profit/(loss) | £1,382,351 (2022: £2,018,749) |
Principal risks and uncertainties |
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competition from both national and independent hauliers and employee retention. |
Annual forecasts are prepared and variances against these forecasts are measured on a monthly basis to ensure their effects can be accurately estimated and reacted to. |
Future developments |
The company plans to continue its present activities. Significant investment has been made in new vehicles which will position the Company well for the years ahead and with inflationary pressures driving costs upwards the Company is focused on improving operational efficiencies. |
On behalf of the board: |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Directors' Report |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
Principal activity |
The principal activity of the company in the year under review was that of parcel and general freight distribution. |
Dividends |
The profit for the year after providing for depreciation and taxation amounts to £1,083,079 (2022: £1,611,804). The directors have paid interim dividends totalling £942,555 (2022: £392,885) and recommend payment of a final dividend of £51,000 (2022: £nil). |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
Political donations and expenditure |
The company did not make any disclosable political donations in the current year. |
Post events |
There have been no significant events affecting the company since the year-end. |
Financial risk management |
The company is exposed to financial risk in the normal course of business, however, the directors have implemented effective risk management systems within the business with the implementation of credit limits on customers, virtual cash-free environment, effective insurance, signature policy on all financial transactions and bank reconciliation procedures. |
Price risk |
The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. |
Foreign exchange risk |
The company has its principal operations in the United Kingdom and Ireland and therefore fluctuations in currency exchange rates may affect reported operating results and financial position. The company is exposed to some foreign exchange risk in the normal course of business, principally on sales in euros. While the company has not used financial instruments to date to hedge foreign exchange exposure, this position is kept constantly under review. |
Credit risk |
Policies and procedures exist to ensure that customers have an appropriate credit history. All customers are allocated a credit limit which is regularly monitored. Accounts that exceed their credit limit or have debts exceeding agreed terms are put on automatic stop until the directors are satisfied that the account has been brought up to date and payment made. |
Liquidity risk |
The company actively maintains a mixture of long-term and short term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions. |
Interest rate cash flow risk |
The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances, which earn interest at variable rates. The company has a policy of maintaining debt including both fixed and variable rates. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. |
Disclosure in the strategic report |
Likely future developments in the business of the company are discussed in the strategic report. |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Directors' Report |
for the Year Ended 31 December 2023 |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic report, the Directors' 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Auditors |
The auditors, Wylie Ruddell (Statutory Auditors), have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
M.B. Freight Forwarding Limited |
Opinion |
We have audited the financial statements of M.B. Freight Forwarding Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of income and retained earnings, Statement of financial position, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' 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 matter |
The directors are responsible for the other information. The other information comprises the information in the Strategic report and the Directors' report, but does not include the financial statements and our Report of the auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the 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. |
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 where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
M.B. Freight Forwarding Limited |
Responsibilities of directors |
As explained more fully in the Statement of directors' responsibilities set out on page four, 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 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. |
Auditors' 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 a Report of the auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to failure to comply with tax legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting journal entries to manipulate the financial statements, inappropriate revenue recognition and management bias in determining accounting estimates. Audit procedures performed by the engagement team included: |
- | Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation (including data protection legislation) and fraud; |
- | Identification and testing of significant journal entries; and |
- | Evaluation and, where appropriate, challenging assumptions and judgements made by management in determining significant accounting estimates. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the auditors. |
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 a Report of the auditors 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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Armagh Business Centre |
2 Loughgall Road |
Armagh |
BT61 7NH |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Statement of Income and Retained Earnings |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Revenue | 4 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
1,380,451 | 2,016,515 |
Other operating income |
Operating profit | 6 |
Interest receivable and similar income |
1,504,865 | 2,070,788 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 8 | ( |
) | ( |
) |
Profit for the financial year |
Retained earnings at beginning of year | 3,830,101 | 2,611,182 |
Dividends | 9 | ( |
) | ( |
) |
Retained earnings at end of year | 3,919,625 | 3,830,101 |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Fixed assets |
Property, plant and equipment | 10 |
Current assets |
Inventories | 11 |
Receivables: amounts falling |
due within one year | 12 |
Receivables: amounts falling |
due after more than one year | 12 |
Investments | 13 |
Cash at bank and in hand |
Payables |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
Net current assets |
Total assets less current liabilities |
Payables |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
Provisions for liabilities | 18 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 19 | 100,000 | 100,000 |
Share premium | 20 | 9,850 | 9,850 |
Capital redemption reserve | 20 | 46,500 | 46,500 |
Retained earnings | 20 | 3,919,625 | 3,830,101 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Statement of Cash Flows |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 26 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
New investment account | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments on term | ( |
) | ( |
) |
New HP agreements | 1,607,855 | 291,765 |
Capital repayments on HP contracts | ( |
) | ( |
) |
Amount introduced by directors | (49,000 | ) | - |
Movement in directors current account |
Related party loan | ( |
) | ( |
) |
Shareholder loan |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
27 |
2,045,999 |
Cash and cash equivalents at end of year | 27 | 1,015,858 | 1,980,356 |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | Statutory information |
M.B. Freight Forwarding Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Accounting policies |
Basis of preparing the financial statements |
Revenue |
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Motor vehicles | - |
Government grants |
Grants that relate to a specific capital expenditure are treated as deferred income and credited to the Income Statement over the related asset's useful economic life, until all performance conditions are met at which point the grant in total is credited to reserves. Grants that relate to revenue expenditure are credited to the Income Statement over the period that the revenue expenditure relates to. |
Inventories |
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | Accounting policies - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments: |
(i) Financial assets |
Basic financial assets, including trade and other receivables, cash and and bank balances and amounts owed by related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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 when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
(iii) Offsetting |
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 lability simultaneously. |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | Accounting policies - continued |
Investments |
Current asset investments are stated at fair value as determined by Valuation Report at year-end. |
Receivables |
Short term receivables are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Receivables falling due after more than one year |
Amounts owed by related parties have been recognised at the original transaction price as full commercial interest has been charged in the year. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Payables |
Short term payables are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position. |
3. | Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are required when applying accounting policies. These are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future, which can involve a high degree of judgement or complexity. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
Useful economic lives of tangible assets |
The annual depreciation charges for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | Revenue |
The revenue and profit before taxation are attributable to the one principal activity of the company. |
An analysis of revenue by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Europe |
5. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration | 21 | 18 |
Distribution | 77 | 79 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | Operating profit |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Bank interest |
Factoring interest |
Hire purchase |
8. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustment in relation to R&D tax credits | (14,046 | ) | (5,625 | ) |
Increase in tax losses carried forward due to super deduction claim | (4,750 | ) | (17,949 | ) |
Effect of change in tax rate | 34,587 | 54,180 |
Total tax charge | 357,505 | 419,391 |
9. | Dividends |
2023 | 2022 |
£ | £ |
Ordinary A Shares shares of £1 each |
Final |
Interim |
Ordinary B shares shares of £1 each |
Interim |
Ordinary C shares shares of £1 each |
Interim |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | Property, plant and equipment |
Short | Plant and | Motor |
leasehold | machinery | vehicles | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
Depreciation |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
Cost |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Transfer to ownership | - | (43,877 | ) | (43,877 | ) |
At 31 December 2023 |
Depreciation |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Transfer to ownership | - | (23,289 | ) | (23,289 | ) |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
11. | Inventories |
2023 | 2022 |
£ | £ |
Raw materials and consumables |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | Receivables |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade receivables |
Amounts owed by participating interests | 1,752 | - |
Other debtors |
Directors' current accounts | 132 | 56,499 |
Prepayments |
Amounts falling due after more than one year: |
Amounts owed by participating interests | 1,714,632 | 1,611,617 |
Aggregate amounts |
Amounts owed by participating interests of £1,714,632 (2022: £1,611,617) relates to a loan given to Moyraverty Investments Ltd. 5.1% interest has been charged on the loan from the date it was given in line with market value interest rates. |
There is a circular guarantee and indemnity from Moyraverty Investments Ltd and M.B. Freight Forwarding Ltd together with interest and costs accrued thereon unlimited both as to time and amount with Bank of Ireland. This is supported by a debenture over the assets and undertakings of M.B. Freight Forwarding Ltd. |
13. | Current asset investments |
2023 | 2022 |
£ | £ |
Unlisted investments | 1,017,354 | - |
14. | Payables: amounts falling |
due within one year |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade payables |
Tax |
PAYE and NIC | 77,376 | 74,917 |
VAT | 105,310 | 284,626 |
Other payables |
Shareholder loan | 49,528 | - |
Accruals |
The bank facilities are secured with the following: |
(a) A commercial finance agreement executed between the parties dated 18 September 2002 together with a debenture dated 18 September 2002; |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
15. | Payables: amounts falling |
due after more than one year |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
16. | Loans |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
17. | Leasing agreements |
Minimum lease payments under hire purchase fall due as follows: |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
18. | Provisions for liabilities |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred tax |
£ |
Balance at 1 January 2023 |
Charge to Statement of comprehensive income during year |
Balance at 31 December 2023 |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A Shares | £1 | 51,000 | 51,000 |
Ordinary B shares | £1 | 19,000 | 19,000 |
Ordinary C shares | £1 | 30,000 | 30,000 |
100,000 | 100,000 |
20. | Reserves |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 3,830,101 | 3,886,451 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2023 | 3,919,625 | 9,850 | 46,500 | 3,975,975 |
21. | Capital commitments |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements |
There is no capital commitment at year-end in relation to the acquisition of tangible fixed assets (2022: £505,624). |
22. | Leasing agreements |
Total future minimum lease payments under non-cancellable operating leases are as follows: |
Land & buildings | Other |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Due: |
Within one year | 57,500 | 57,500 | 15,634 | 65,810 |
Between one and five years | 134,167 | 191,667 | 830 | 16,464 |
In over five years | - | - | - | - |
191,667 | 249,167 | 16,464 | 82,274 |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
23. | Directors' advances, credits and guarantees |
The following loans from the company to the directors subsisted during the years ended 31 December 2023 and 31 December 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Directors loans are repayable on demand and interest has been charged at the HMRC rate for beneficial loan arrangements of 2% up to 5th April 2023 and at 2.25% thereafter. |
24. | Related party disclosures |
Moyraverty Investments Limited |
Moyraverty Investments Limited is a company owned by two of the same shareholders as MB Freight Forwarding. Moyraverty Investments Ltd borrowed £1,562,158 from MB Freight Forwarding Ltd during the year ended 31 December 2022 and a further £20,000 during the year ended 31 December 2023. 5.1% interest has been charged on the loan totalling £83,014 (2022: £49,460). This loan has been disclosed as due in more than one year as Moyraverty Investments Ltd also hold a further loan with Bank of Ireland which has been subordinated and therefore no loan repayments will be made to MB Freight Forwarding Ltd in the next 12 months. Closing intercompany debtor at the year ended 31 December 2023 is £1,714,632 (2022: £1,611,618). |
Mr E M G Mitchell |
Mr E M G Mitchell resigned as a director on 9 January 2023 but remains the ultimate controlling party by virtue of his shareholding in the company. Opening directors current account balance at 1 January 2023 was overdrawn by £54,650. Amounts advanced in the year totalled £161,106 with amounts repaid of £265,284 leaving a closing shareholder loan balance of (£49,528). |
Shareholder loans are repayable on demand and interest has been charged at the HMRC rate for beneficial loan arrangements of 2% up to 5th April 2023 and at 2.25% thereafter. |
25. | Ultimate controlling party |
Mr E M G Mitchell is the ultimate controlling party by virtue of his shareholding in the company. |
M.B. Freight Forwarding Limited (Registered number: NI027302) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
26. | Reconciliation of profit before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 64,281 | 39,593 |
Finance income | (122,514 | ) | (52,039 | ) |
1,905,028 | 2,429,526 |
Decrease/(increase) in inventories | ( |
) |
Decrease in trade and other debtors |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
27. | Cash and cash equivalents |
The amounts disclosed on the Statement of cash flows in respect of cash and cash equivalents are in respect of these Statement of financial position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 1,015,858 | 1,980,356 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,980,356 | 2,076,551 |
Bank overdrafts | ( |
) |
1,980,356 | 2,045,999 |
28. | Analysis of changes in net funds/(debt) |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,980,356 | (964,498 | ) | 1,015,858 |
1,980,356 | ( |
) | 1,015,858 |
Liquid resources |
Current asset investments | - | 1,017,354 | 1,017,354 |
- | 1,017,354 | 1,017,354 |
Debt |
Finance leases | (953,514 | ) | (1,064,785 | ) | (2,018,299 | ) |
Debts falling due within 1 year | (25,000 | ) | - | (25,000 | ) |
Debts falling due after 1 year | (64,583 | ) | 25,000 | (39,583 | ) |
(1,043,097 | ) | (1,039,785 | ) | (2,082,882 | ) |
Total | 937,259 | (986,929 | ) | (49,670 | ) |