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REGISTERED NUMBER: NI027302 (Northern Ireland)













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: Ms E C Brown
Mr T M P Mitchell



Secretary: Ms E C Brown



Registered office: 21 Moyraverty Road West
Moyraverty
Craigavon
Co Armagh
BT65 5HU



Registered number: NI027302 (Northern Ireland)



Auditors: Wylie Ruddell
Statutory Auditor
Chartered Accountants
Armagh Business Centre
2 Loughgall Road
Armagh
BT61 7NH



Solicitors: RM Cullen & Son
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:





Ms E C Brown - Secretary


23 May 2024

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.

Ms E C Brown
Mr T M P Mitchell

Other changes in directors holding office are as follows:

Mr E M G Mitchell - resigned 9 January 2023

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:



Ms E C Brown - Secretary


23 May 2024

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.




David Ruddell (Senior Statutory Auditor)
for and on behalf of Wylie Ruddell
Statutory Auditor
Chartered Accountants
Armagh Business Centre
2 Loughgall Road
Armagh
BT61 7NH

23 May 2024

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 9,493,291 10,807,833

Cost of sales (3,977,748 ) (4,791,824 )
Gross profit 5,515,543 6,016,009

Distribution costs (2,319,086 ) (2,420,276 )
Administrative expenses (1,816,006 ) (1,579,218 )
1,380,451 2,016,515

Other operating income 1,900 2,234
Operating profit 6 1,382,351 2,018,749

Interest receivable and similar income 122,514 52,039
1,504,865 2,070,788

Interest payable and similar expenses 7 (64,281 ) (39,593 )
Profit before taxation 1,440,584 2,031,195

Tax on profit 8 (357,505 ) (419,391 )
Profit for the financial year 1,083,079 1,611,804

Retained earnings at beginning of year 3,830,101 2,611,182

Dividends 9 (993,555 ) (392,885 )

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 2,415,329 1,314,462

Current assets
Inventories 11 27,999 83,036
Receivables: amounts falling
due within one year 12 1,420,293 1,852,746
Receivables: amounts falling
due after more than one year 12 1,714,632 1,611,617
Investments 13 1,017,354 -
Cash at bank and in hand 1,015,858 1,980,356
5,196,136 5,527,755
Payables
Amounts falling due within one year 14 (1,569,361 ) (1,952,439 )
Net current assets 3,626,775 3,575,316
Total assets less current liabilities 6,042,104 4,889,778

Payables
Amounts falling due after more than one
year

15

(1,385,762

)

(620,386

)

Provisions for liabilities 18 (580,367 ) (282,941 )
Net assets 4,075,975 3,986,451

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 4,075,975 3,986,451

The financial statements were approved by the Board of Directors and authorised for issue on 23 May 2024 and were signed on its behalf by:





Mr T M P Mitchell - Director


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 1,949,531 2,501,457
Interest paid (13,371 ) (11,812 )
Interest element of hire purchase payments
paid

(50,910

)

(27,781

)
Tax paid (379,872 ) (238,329 )
Net cash from operating activities 1,505,378 2,223,535

Cash flows from investing activities
Purchase of tangible fixed assets (1,672,265 ) (339,668 )
Sale of tangible fixed assets 48,721 15,990
New investment account (1,000,000 ) -
Interest received 21,543 2,580
Net cash from investing activities (2,602,001 ) (321,098 )

Cash flows from financing activities
Capital repayments on term (25,000 ) (32,561 )
New HP agreements 1,607,855 291,765
Capital repayments on HP contracts (543,070 ) (390,793 )
Amount introduced by directors (49,000 ) -
Movement in directors current account 105,367 118,552
Related party loan (20,000 ) (1,562,158 )
Shareholder loan 49,528 -
Equity dividends paid (993,555 ) (392,885 )
Net cash from financing activities 132,125 (1,968,080 )

Decrease in cash and cash equivalents (964,498 ) (65,643 )
Cash and cash equivalents at beginning
of year

27

1,980,356

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 private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - 10% Straight line
Plant and machinery - 10-25% Straight line
Motor vehicles - 10-25% Straight line

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 6,321,921 7,567,663
Europe 3,171,370 3,240,170
9,493,291 10,807,833

5. Employees and directors
2023 2022
£ £
Wages and salaries 2,643,583 2,702,637
Social security costs 233,082 245,576
Other pension costs 137,562 140,683
3,014,227 3,088,896

The average number of employees during the year was as follows:
2023 2022

Administration 21 18
Distribution 77 79
98 97

2023 2022
£ £
Directors' remuneration 73,485 66,316
Directors' pension contributions to money purchase schemes 76,113 77,288

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

6. Operating profit

The operating profit is stated after charging/(crediting):

2023 2022
£ £
Hire of plant and machinery 6,878 24,830
Depreciation - owned assets 63,169 63,027
Depreciation - assets on hire purchase contracts 474,827 359,110
Profit on disposal of fixed assets (15,319 ) (11,360 )
Auditors' remuneration 12,000 11,500

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 6,471 4,912
Factoring interest 6,900 6,900
Hire purchase 50,910 27,781
64,281 39,593

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 60,079 434,129

Deferred tax 297,426 (14,738 )
Tax on profit 357,505 419,391

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 1,440,584 2,031,195
Profit multiplied by the standard rate of corporation tax in the UK of
23.521% (2022 - 19%)

338,840

385,927

Effects of:
Expenses not deductible for tax purposes 2,874 2,858
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 51,000 -
Interim 809,606 257,500
Ordinary B shares shares of £1 each
Interim 131,608 107,885
Ordinary C shares shares of £1 each
Interim 1,341 27,500
993,555 392,885

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 252,993 1,019,180 1,672,810 2,944,983
Additions - 6,788 1,665,477 1,672,265
Disposals - - (319,634 ) (319,634 )
At 31 December 2023 252,993 1,025,968 3,018,653 4,297,614
Depreciation
At 1 January 2023 158,753 785,340 686,428 1,630,521
Charge for year 18,324 72,239 447,433 537,996
Eliminated on disposal - - (286,232 ) (286,232 )
At 31 December 2023 177,077 857,579 847,629 1,882,285
Net book value
At 31 December 2023 75,916 168,389 2,171,024 2,415,329
At 31 December 2022 94,240 233,840 986,382 1,314,462

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 232,454 1,596,798 1,829,252
Additions - 1,646,072 1,646,072
Disposals - (297,244 ) (297,244 )
Transfer to ownership - (43,877 ) (43,877 )
At 31 December 2023 232,454 2,901,749 3,134,203
Depreciation
At 1 January 2023 77,111 622,665 699,776
Charge for year 45,754 429,073 474,827
Eliminated on disposal - (263,842 ) (263,842 )
Transfer to ownership - (23,289 ) (23,289 )
At 31 December 2023 122,865 764,607 887,472
Net book value
At 31 December 2023 109,589 2,137,142 2,246,731
At 31 December 2022 155,343 974,133 1,129,476

11. Inventories
2023 2022
£ £
Raw materials and consumables 27,999 83,036

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 1,293,592 1,617,065
Amounts owed by participating interests 1,752 -
Other debtors 3,836 1,641
Directors' current accounts 132 56,499
Prepayments 120,981 177,541
1,420,293 1,852,746

Amounts falling due after more than one year:
Amounts owed by participating interests 1,714,632 1,611,617

Aggregate amounts 3,134,925 3,464,363

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) 25,000 25,000
Hire purchase contracts (see note 17) 672,120 397,711
Trade payables 470,422 483,402
Tax 59,555 379,949
PAYE and NIC 77,376 74,917
VAT 105,310 284,626
Other payables 60,858 59,569
Shareholder loan 49,528 -
Accruals 49,192 247,265
1,569,361 1,952,439

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) 39,583 64,583
Hire purchase contracts (see note 17) 1,346,179 555,803
1,385,762 620,386

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 25,000 25,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 25,000 25,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 14,583 39,583

17. Leasing agreements

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£ £
Net obligations repayable:
Within one year 672,120 397,711
Between one and five years 1,346,179 555,803
2,018,299 953,514

18. Provisions for liabilities
2023 2022
£ £
Deferred tax
Accelerated capital allowances 580,367 282,941

Deferred tax
£
Balance at 1 January 2023 282,941
Charge to Statement of comprehensive income during year 297,426
Balance at 31 December 2023 580,367

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: £ £
51,000 Ordinary A Shares £1 51,000 51,000
19,000 Ordinary B shares £1 19,000 19,000
30,000 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 9,850 46,500 3,886,451
Profit for the year 1,083,079 1,083,079
Dividends (993,555 ) (993,555 )
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 - 505,624

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 & buildingsOther
2023202220232022
£   £   £   £   
Due:
Within one year57,50057,50015,63465,810
Between one and five years134,167191,667 83016,464
In over five years- - - -
191,667249,16716,46482,274

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
£ £
Mr E M G Mitchell
Balance outstanding at start of year 54,650 176,211
Amounts advanced - 176,576
Amounts repaid (54,650 ) (298,137 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - 54,650

Mr T M P Mitchell
Balance outstanding at start of year 508 (1,161 )
Amounts advanced 76,132 62,054
Amounts repaid (76,508 ) (60,385 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 132 508

Ms E C Brown
Balance outstanding at start of year 1,341 -
Amounts advanced - 1,341
Amounts repaid (1,341 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - 1,341

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 1,440,584 2,031,195
Depreciation charges 537,996 422,137
Profit on disposal of fixed assets (15,319 ) (11,360 )
Finance costs 64,281 39,593
Finance income (122,514 ) (52,039 )
1,905,028 2,429,526
Decrease/(increase) in inventories 55,037 (59,593 )
Decrease in trade and other debtors 376,086 18,602
(Decrease)/increase in trade and other creditors (386,620 ) 112,922
Cash generated from operations 1,949,531 2,501,457

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 - (30,552 )
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 (964,498 ) 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 )