Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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NTG ROAD UK LIMITED
COMPANY INFORMATION
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NTG ROAD UK LIMITED
CONTENTS
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NTG ROAD UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their strategic report for the year ended 31st December 2023.
Beginning of 2023 was a continuation of the market challenges we faced during the 4th quarter of 2022. Despite our optimism the market would turn going into 2023, it never materialised. We therefore quickly adjusted operational and organisational strategy in the middle of Q1. We downsized the operation to align our operation around our base clients. This allowed us to minimise engaging on the dead open spot market.
Although knowing the new strategy would decrease our turnover (going from £10,847,303 for 2022 to £8,528,703 in 2023), it generated a much higher GP yield on the remaining business and allowed us to take significant costs out of the business. Furthermore, we readjusted our sales team putting more effort into re-growth through our Group Tender platform. Q2, Q3, & Q4 followed the anticipated plan with steady and consistent GP margins (up to 18.7% in 2023 from 16.8% in 2022) with continuous monthly increases in our Ebit margin, as we took more and more costs out. We managed to gain new business through the Group Tender Platform for start in 2024. We are therefore currently very positive we can achieve the significantly increased budget set for 2024, despite the market's continuous drop-in activity. We maintained a solid +S6 NPS Score on our client portfolio. Which meant our changes had no negative impact on our customer service capability.
Navigating and predicting a hostile geo-political landscape which we currently find ourselves in is never easy. However, our asset-light model means we can adjust very quickly to the various impacts. The general opinion of the financial institutes is predicting the interest rate will start to decrease and stabilise at around 4.2% in the last 2 quarters of 2024. This should encourage spending on the market. The transport market is currently at its lowest point and the overcapacity should bottom out within the 1’° quarter of 2024. During this period many companies are looking to reduce the transport costs, which means NTG Road UK Ltd, will have more opportunities to gain market share.
Credit Risk The company's credit risk is primarily attributable to its trade debtors. The amounts presented in the Statement of Financial Position are net of provision for doubtful debts. The company manages its concentration of credit risk through use of credit safe software with exposure spread over several customers. Liquidity Risk To maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses group overdraft facilities. The company's activities do expose it to the financial risks of changes in foreign currency exchange which is monitored closely.
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NTG ROAD UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Foreign Exchange Risk
The company operates worldwide and is exposed to foreign exchange risk arising from currency exposure to the Euro. The company manages this risk by holding reserves in Sterling and Euros. In the current year the company has suffered a loss on exchange amounting to £30,594 compared to a gain of £52,930 in 2022, a swing of £83,524. Other Key Risks Environmental taxation initiatives are ramping up on the transport sector. This was evident in the introduction of increased road taxation in Germany and the ET5 surcharge on the ferry crossings towards the end of 2023. It is expected all EU countries will follow suit with this taxation. It is therefore vital we continue to seek alternative greener fuel sources. The first electrical distribution vehicles within the NTG Group have been ordered ready to start in Q1, 2024. The carbon footprint is much more prevalent for companies when choosing transport solutions. which is therefore various initiatives is undertaken to be on the forefront of the technological developments within this sector.
The directors consider the key performance indicators to be those submitted for the annual budget with monthly results reflecting the financial strength and performance of the business as a whole. These are discussed and agreed upon internally with monthly reviews to monitor performance. The directors are satisfied that performance is in line with these expectations and is continuing in a positive direction.
This report was approved by the board and signed on its behalf.
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NTG ROAD UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The loss for the year, after taxation, amounted to £168,970 (2022 - loss £15,796).
No dividends were paid during the year (2022 - £Nil).
The directors who served during the year were:
The company is well respected and whilst the commercial environment is expected to remain challenging, the directors anticipate an improved performance in the year ahead.
Information on exposure to risks is covered in the strategic report.
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NTG ROAD UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments 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 to 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.
The auditors, Larking Gowen LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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NTG ROAD UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
This report was approved by the board and signed on its behalf.
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NTG ROAD UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NTG ROAD UK LIMITED
We have audited the financial statements of NTG Road UK Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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.
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NTG ROAD UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NTG ROAD UK LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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.
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.
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NTG ROAD UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NTG ROAD UK LIMITED (CONTINUED)
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 Auditors' 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Due to the field in which the company operates, we identified the areas most likely to have a direct material impact on the financial statements as compliance with UK tax legislation, UK accounting standards and the Companies Act 2006. In addition, we considered the provisions of other laws and regulations which whilst not having a direct impact on the financial statements, are fundamental to the company's ability to operate including health and safety, employment law and compliance with various other regulations relevant to the operation of the company.
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:
∙Enquiries with management about any known or suspected instances of non-compliance with laws and regulations, accidents in the workplace, potential litigation or claims and fraud;
∙Reviewing legal and professional fees to confirm matters where the company engaged lawyers during the year;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Reviewing board minutes and any relevant correspondence with external authorities;
∙Challenging assumptions and judgements made by management in their significant accounting estimates, specifically surrounding anticipated freight costs; and
∙Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of any significant transactions outside the normal course of business.
Due to 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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' Report.
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NTG ROAD UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NTG ROAD UK LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
1st Floor Prospect House
Rouen Road
Norfolk
NR1 1RE
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NTG ROAD UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NTG ROAD UK LIMITED
REGISTERED NUMBER: 10533915
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 27 form part of these financial statements.
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NTG ROAD UK LIMITED
REGISTERED NUMBER: 10533915
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
NTG Road UK Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of NTG Nordic Transport Group A/S as at 31 December 2023 and these financial statements may be obtained from the Danish Central Business Register.
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Based on this, the directors have concluded that they have a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of signing these financial statements, and they therefore continue to adopt the going concern basis of accounting in preparing these financial statements. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided and the company has discharged its responsibilities, being the departure date for export services and arrival date for import services and when all of the following conditions are satisfied:
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Income and Retained Earnings over its useful economic life, estimated to be ten years.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The company only enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from and to related parties.
The estimates and assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of revision and future periods, if the revision affects both current and future periods. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are: Anticipated freight costs The directors make an estimate of the anticipated freight income and associated costs for all contracts.
The whole of the turnover is attributable to the principal activity of the company.
Analysis of turnover by country of destination:
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
12.Taxation (continued)
From 1 April 2023 the corporation tax rate increased to 25% from 19% so for the financial year ended 31 December 2023 the current weighted averaged tax rate was 23.5% and in future will be 25%.
Deferred taxes at the balance sheet date have been measured using the 25% tax rate.
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
18.Deferred taxation (continued)
Share premium account
Profit and loss account
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £34,478 (2022 - £32,272).
Contributions totalling £6,641 were receivable (2022 - £9,970 were payable) from / to the fund at the reporting date and are included in creditors.
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NTG ROAD UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The parent company and ultimate controlling party is
The smallest and largest group to consolidate these financial statements is
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