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Registered number: 10133368









LOGISTIC MANAGEMENT FREIGHT SERVICES LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

COMPANY INFORMATION


Directors
N C A Jolley 
M Halliday 




Registered number
10133368



Registered office
Anglia House
6 Central Avenue

St Andrew's Business Park

Norwich

Norfolk

NR7 0HR




Independent auditors
Price Bailey LLP
Chartered Accountants & Statutory Auditors

Anglia House, 6 Central Avenue

St Andrews Business Park

Thorpe St Andrew

Norwich

Norfolk

NR7 0HR





 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

CONTENTS



Page
Group Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Consolidated Statement of Comprehensive Income
9
Consolidated Balance Sheet
10
Company Balance Sheet
11
Consolidated Statement of Changes in Equity
12
Company Statement of Changes in Equity
13
Consolidated Statement of Cash Flows
14
Consolidated Analysis of Net Debt
15
Notes to the Financial Statements
16 - 35


 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Business review
 
The principal activity of the Group continues to be the provision of transport, distribution, and warehousing services.
The results are summarised as follows:
Turnover for the year ended 31 December 2023 was £13,007,661 compared to £13,140,818 for the year ended 31 December 2022, a decrease of 1%. The Group continues to target domestic trade and endeavours to profitably grow this service provision.
Gross profit for the year was £2,354,412, a decrease of 5% when compared to £2,486,718 for the year ended 31 December 2022. Gross profit margin decreased from 19% to 18%.
Profit before tax decreased by 49% to £463,688 (2022: £913,124) for the year ended 31 December 2023.
During 2023, the Group capitalised further costs of £168,127 in relation to the development of the Great Yarmouth warehousing site, to increase storage capacity for the Group. The Group has also elected to claim structures and buildings allowance tax relief on the eligible costs as part of the construction of the site. As this election was made in a previous period, a prior year adjustment has been included as explained in note 22 to reflect the impact on deferred tax of this additional election. The impact of this on the financial statements are a restatement of the 2022 comparative figures, which has led to an increase in the deferred tax liability in the Balance Sheet and corresponding increase in the tax charge within the Statement of Comprehensive Income. However, as this is a deferred tax adjustment only, this has not led to any additional amounts becoming payable by the Gompany in respect of corporation tax.
The total purchase and build cost as at 31 December 2023 is £2,671,098. On completion of the build, the site was valued by Savills Limited in February 2023 and noted a market value as at this date of £3,275,000, which is a surplus of £603,902 against the costs incurred in the purchase and build. The directors are of the opinion that this valuation and surplus had further increased at the end of 2023.

Principal risks and uncertainties
 
The directors' have assessed the main risks to the Group as being the availability of qualified drivers and resources to meet future growth, and the price-sensitive nature of pallet network business. The volatility of fuel prices, being influenced by external global factors is also a key risk, and a major cost of the business.
The directors believe that these risks are mitigated by the continued efforts to maintain a competitive advantage through high customer service levels, in-house driver training, and policies to attract and retain high calibre staff.
 
Potential fuel cost increase influence is mitigated and hedged by virtue of a fuel surcharge being incorporated in the Group’s customer pricing mechanism.  

Financial key performance indicators
 
The Group's financial KPl's focus on a number of critical areas. 
Gross margin remains the major factor in shaping the future success of the business and this is evidenced by the improving performance year on year.
These are summarised as follows:
-       Working capital analysis
-       Cashflow forecasting
-       Review of turnover: actual v forecast
-       Analysis of overhead expenditure: actual v forecast
Page 1

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Other key performance indicators
 
Non-financial KPl's are numerous but centre on the following:
-       Employee workforce management
-       Health & Safety


This report was approved by the board on 24 September 2024 and signed on its behalf.



N C A Jolley
Director

Page 2

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
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.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group'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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £351,382 (2022 - £578,473).

Dividends of £189,080 were paid in the year (2022 - £149,297).

Directors

The directors who served during the year were:

N C A Jolley 
M Halliday 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Page 3

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditors

The auditorsPrice Bailey LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 24 September 2024 and signed on its behalf.
 





N C A Jolley
Director

Page 4

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

Opinion


We have audited the financial statements of Logistic Management Freight Services Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's 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 Group 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.


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 Group's or the parent 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.


Page 5

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LOGISTIC MANAGEMENT FREIGHT SERVICES LTD (CONTINUED)


Other information


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 ReportOur 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.


Opinion 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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LOGISTIC MANAGEMENT FREIGHT SERVICES LTD (CONTINUED)


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 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 Group 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We reviewed a sample of manual postings into the financial statements and obtained an understanding of their 
  rationale;
- We carried out a critical review of accounting estimates to identify any indications of management bias; 
- We made enquiries with those charged with governance to understand how they ensure key laws & regulations 
  are complied with, and if any instances of non-compliance have occurred;
- We undertook testing to confirm the existence of a sample of employees to ensure that no fictitious employees 
  are paid, and that said employees were being paid in accordance with their contracts of employment;
- We reviewed legal expenses to identify any instances of non-compliance with laws and regulations;
- We assessed the Group’s compliance with key laws and regulations, including drivers’ tachographs, HGV 
  health and safety requirements and the AETR driver hours regulations;
- We undertook testing on each income stream, starting from a point outside of the finance system, to ensure
  that income is complete and recognised in the correct period;
- We considered the expenditure on fuel cards during the year to ensure that these are being used only for the 
  intended purpose.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, and identified the greatest potential for fraud is in revenue recognition and more specifically the application of cut-off.
We performed the procedures set out above after gaining an understanding of the legal and regulatory framework applicable to the Group and the industry in which it operates, and after considering the risk of acts by the Group contrary to applicable laws and regulations including fraud. We obtained this understanding from discussions with those charged with governance, who did not make the engagement team aware of any non-compliance with laws and regulations or instances of fraud throughout the period or since the period end.
We also enquired with those charged with governance as to how they ensure the Group complies with the applicable legal & regulatory framework. The entity is subject to an annual audit from the Road Haulage Association (of which the entity is a member firm), which scrutinises the entity’s compliance with a number of key areas, such as:
- Operator's Licence
- Fleet Policies, Procedures & Management Systems
- Employee Induction, Qualifications, Licences & Training
- Maintenance Documentation & Procedures
- Drivers Hours, Tachographs, Speeding & Working Time
 
Page 7

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LOGISTIC MANAGEMENT FREIGHT SERVICES LTD (CONTINUED)


The 2023 audit report was reviewed, with no major non-compliance identified.
In performing the above procedures we focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, HGV health and safety requirements and the AETR driver hours regulations, the Companies Act 2006 and UK tax legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence to identify any indication of legislative breaches. Through these procedures, no instances of actual or suspected non-compliance have been identified.
We considered the opportunities and incentives that may exist within the organisation for fraud and identified management override as the area with the greatest potential for fraud. We did not identify any instances of fraud throughout the period or since the period end.
Following detailed team briefings, the responsible individual has assessed that the audit engagement team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with applicable laws and regulation.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk 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.


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 2006Our 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.





Aaron Widdows ACA FCCA (Senior Statutory Auditor)
  
for and on behalf of
Price Bailey LLP
 
Chartered Accountants
Statutory Auditors
  
Anglia House, 6 Central Avenue
St Andrews Business Park
Thorpe St Andrew
Norwich
Norfolk
NR7 0HR

25 September 2024
Page 8

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
13,007,661
13,140,818

Cost of sales
  
(10,653,249)
(10,654,100)

Gross profit
  
2,354,412
2,486,718

Administrative expenses
  
(1,701,360)
(1,703,117)

Other operating income
 5 
144,113
278,535

Operating profit
 6 
797,165
1,062,136

Interest receivable and similar income
  
3,629
-

Interest payable and similar expenses
 10 
(337,106)
(149,012)

Profit before taxation
  
463,688
913,124

Tax on profit
 11 
(112,306)
(334,651)

Profit for the financial year
  
351,382
578,473

Profit for the year attributable to:
  

Owners of the parent Company
  
351,382
578,473

  
351,382
578,473

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 16 to 35 form part of these financial statements.

Page 9

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
REGISTERED NUMBER: 10133368

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
6,314,320
5,931,674

Investments
 13 
50,000
-

  
6,364,320
5,931,674

Current assets
  

Stocks
 14 
39,047
37,206

Debtors: amounts falling due within one year
 15 
2,688,309
2,300,204

Bank and cash balances
  
64,354
25,830

  
2,791,710
2,363,240

Creditors: amounts falling due within one year
 16 
(3,523,004)
(3,731,343)

Net current liabilities
  
 
 
(731,294)
 
 
(1,368,103)

Total assets less current liabilities
  
5,633,026
4,563,571

Creditors: amounts falling due after more than one year
 17 
(2,823,777)
(2,024,684)

Provisions for liabilities
  

Deferred taxation
 21 
(769,278)
(661,218)

  
 
 
(769,278)
 
 
(661,218)

Net assets
  
2,039,971
1,877,669


Capital and reserves
  

Called up share capital 
 22 
2,380
2,380

Share premium account
 23 
99,620
99,620

Capital redemption reserve
 23 
3,000
3,000

Profit and loss account
 23 
1,934,971
1,772,669

Equity attributable to owners of the parent Company
  
2,039,971
1,877,669


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 September 2024.




N C A Jolley
Director

The notes on pages 16 to 35 form part of these financial statements.

Page 10

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
REGISTERED NUMBER: 10133368

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 13 
1,042,498
1,042,498

  
1,042,498
1,042,498

Current assets
  

Debtors: amounts falling due within one year
 15 
134,690
1,313

Bank and cash balances
  
2,169
803

  
136,859
2,116

Creditors: amounts falling due within one year
 16 
(75,674)
(720,995)

Net current assets/(liabilities)
  
 
 
61,185
 
 
(718,879)

Total assets less current liabilities
  
1,103,683
323,619

  

Creditors: amounts falling due after more than one year
 17 
(802,896)
-

  

Net assets
  
300,787
323,619


Capital and reserves
  

Called up share capital 
 22 
2,380
2,380

Share premium account
 23 
99,620
99,620

Profit and loss account brought forward
  
221,619
222,076

Profit for the year
  
166,248
148,840

Dividends issued in the year

  

(189,080)
(149,297)

Profit and loss account carried forward
  
198,787
221,619

  
300,787
323,619


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 September 2024.


N C A Jolley
Director

The notes on pages 16 to 35 form part of these financial statements.

Page 11

 

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity


£
£
£
£
£



At 1 January 2022
2,380
99,620
3,000
1,343,493
1,448,493



Comprehensive income for the year


Profit for the year
-
-
-
578,473
578,473



Distributions to owners


Dividends: Equity capital
-
-
-
(149,297)
(149,297)





At 1 January 2023 (as previously stated)
2,380
99,620
3,000
2,153,389
2,258,389


Prior year adjustment (note 24)
-
-
-
(380,720)
(380,720)



At 1 January 2023 (as restated)

2,380

99,620

3,000

1,772,669

1,877,669



Comprehensive income for the year


Profit for the year
-
-
-
351,382
351,382



Distributions to owners


Dividends: Equity capital
-
-
-
(189,080)
(189,080)



At 31 December 2023
2,380
99,620
3,000
1,934,971
2,039,971



The notes on pages 16 to 35 form part of these financial statements.

Page 12

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
2,380
99,620
222,076
324,076


Comprehensive income for the year

Profit for the year
-
-
148,840
148,840


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(149,297)
(149,297)



At 1 January 2023
2,380
99,620
221,619
323,619


Comprehensive income for the year

Profit for the year
-
-
166,248
166,248


Distributions to owners

Dividends: Equity capital
-
-
(189,080)
(189,080)


At 31 December 2023
2,380
99,620
198,787
300,787


The notes on pages 16 to 35 form part of these financial statements.

Page 13

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
351,382
578,473

Adjustments for:

Depreciation of tangible assets
828,598
647,248

Loss on disposal of tangible assets
(4,554)
(35,088)

Government grants
(9,407)
(120,341)

Interest paid
337,106
149,012

Interest received
(3,629)
-

Taxation charge
112,306
334,631

(Increase) in stocks
(1,841)
(37,206)

(Increase)/decrease in debtors
(388,105)
149,952

Increase/(decrease) in creditors
166,071
(276,146)

Net cash generated from operating activities

1,387,927
1,390,535


Cash flows from investing activities

Purchase of tangible fixed assets
(1,224,586)
(2,026,442)

Sale of tangible fixed assets
17,896
35,556

Government grants received
9,407
120,341

Purchase of fixed asset investments
(50,000)
-

Interest received
3,629
-

Net cash from investing activities

(1,243,654)
(1,870,545)

Cash flows from financing activities

New secured loans
909,000
700,000

Repayment of loans
(814,188)
(82,285)

Repayment of/new finance leases
182,326
(173,237)

Movements on invoice discounting
143,299
(156,982)

Dividends paid
(189,080)
(149,297)

Interest paid
(337,106)
(149,012)

Net cash used in financing activities
(105,749)
(10,813)

Net increase/(decrease) in cash and cash equivalents
38,524
(490,823)

Cash and cash equivalents at beginning of year
25,830
516,653

Cash and cash equivalents at the end of year
64,354
25,830


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
64,354
25,830


Page 14

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023





At 1 January 2023
Cash flows
New finance leases
At 31 December 2023
£

£

£

£

Cash at bank and in hand

25,830

38,524

-

64,354

Debt due after 1 year

(684,358)

(717,665)

-

(1,402,023)

Debt due within 1 year

(783,758)

622,853

-

(160,905)

Finance leases

(2,158,874)

(1,668,610)

1,486,284

(2,341,200)


(3,601,160)
(1,724,898)
1,486,284
(3,839,774)

The notes on pages 16 to 35 form part of these financial statements.

Page 15

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Logistic Management Freight Services Ltd is a private company, limited by shares, and registered in England and Wales (registered number 10133368). The address of the registered office is Anglia House, 6 Central Avenue, St Andrews Business Park, Thorpe St. Andrew, Norwich, Norfolk, NR7 0HR. The principle place of business is, Unit 1A Guardian Road Industrial Estate, Guardian Road, Norwich, Norfolk, NR5 8PF.
The financial statements are prepared in sterling, which is the functional currency of the Group. Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 16

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

At 31 December 2023 the Group had net current liabilities of £728,048 (2022: £1,368,103). However, in line with many distribution/haulage businesses, the Group finances its fixed assets for hire on finance lease and hire purchase contracts. These assets directly generate regular revenue streams and profit to settle the regular monthly outgoings of the finance leases and hire purchase contracts. Accounting disclosures require the short term element of these liabilities to be included as part of creditors falling due within one year, which form part of the net current liabilities. The amount included in creditors falling due within one year are amounts to £919,446 (2022: £818,548), which will be financed by future revenue streams not included in current assets. 
Consequently whilst there are net current liabilities the directors consider that the Group will have sufficient funds from future trading cash flows to meet these debts as they fall due over the next twelve months and beyond.
Thus the Group continues to adopt the going concern basis of accounting in preparing the financial statements.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Distribution Revenue
Distribution revenue is recognised at the point at which goods are delivered to the end customer. The Group’s performance obligation is the transportation and ultimate delivery of goods.
Storage Revenue
Storage revenue is recognised over the period that goods are stored in the Group’s warehouse, starting at the point goods enter the warehouse and ending at the point the goods leave. The Group’s performance obligation is the storage and handling of goods.
Training Revenue
Training revenue is recognised at the point at which the relevant training stage has been provided to the customer. The Group’s performance obligation is the provision of driver training.

Page 17

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

 
2.7

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the group. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.8

Government grants

Grants are accounted under the performance model as permitted by FRS 102, and are recognised in the  Consolidated Statement of Comprehensive Income in the same period in which the related performance obligations are met. The deferred element of grants relates to unfulfilled performance conditions and is included in creditors as deferred income.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.12

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 18

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

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

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group 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.

Page 19

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Tangible fixed assets (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 & reducing balance methods.

Depreciation is provided on the following basis:

Freehold property
-
4% straight line
Long-term leasehold property
-
10% straight line
Plant and machinery
-
20% straight line
Motor vehicles
-
10 - 20% reducing balance
Fixtures and fittings
-
10% straight line
Office equipment
-
20 - 50% straight line

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.

  
2.15

Assets under construction

Assets under construction relate to ongoing building works, and are held at cost. Depreciation is not charged on these assets until they are considered ready for use.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted company shares are measured at cost less accumulated impairment. The
investment is reviewed for indicators of impairment at each reporting end date.

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.18

Debtors

Short-term debtors 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.

Page 20

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.19

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.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.20

Creditors

Short-term creditors 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.

 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.22

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

 
2.23

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.

Page 21

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates, and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. No judgments (apart from those involving estimates) have been made when preparing the financial statements. 
The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
Depreciation
Management have estimated the useful economic life (UEL) of fixed assets and depreciation has in turn been calculated based on the UEL. Depreciation charged in the year amounted to £828,598 (2022: £647,249).


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Distribution
12,686,567
12,772,435

Storage
272,859
294,788

Training
48,235
73,595

13,007,661
13,140,818


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Other operating income
8,603
15,957

Net rents receivable
110,183
107,915

Government grants receivable
9,407
120,341

Insurance claims receivable
15,920
34,322

144,113
278,535


Page 22

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Profit/(loss) on disposal of tangible fixed assets
4,554
(35,088)

Depreciation of tangible fixed assets
828,598
647,249

Cost of defined contribution pension scheme
75,987
76,509

Operating lease rentals
144,756
144,756


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
5,750
4,750

Fees payable to the Group's auditor and its associates in respect of all other services

The auditing of accounts of associates of the Company
14,460
12,500

Taxation compliance services
3,000
2,750

Page 23

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2023
2022
£
£


Wages and salaries
3,463,232
3,408,065

Social security costs
344,205
349,475

Cost of defined contribution scheme
75,987
76,509

3,883,424
3,834,049


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Drivers
73
75



Sales & Transport
15
15



Admin & Finance
7
7

95
97


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
22,019
24,483



10.


Interest payable and similar expenses

2023
2022
£
£


Interest on invoice factoring
108,415
61,344

Bank loan interest payable
109,589
3,475

Finance leases and hire purchase contracts
119,102
84,193

337,106
149,012

Page 24

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Taxation


As restated
2023
2022
£
£

Corporation tax


Current tax on profits for the year
3,246
12,343

Adjustments in respect of previous periods
1,000
-


4,246
12,343


Total current tax
4,246
12,343

Deferred tax


Origination and reversal of timing differences
108,060
322,308

Total deferred tax
108,060
322,308


Tax on profit
112,306
334,651

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

As restated
2023
2022
£
£


Profit on ordinary activities before tax
463,688
913,124


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
115,922
173,494

Effects of:


Depreciation on non-qualifying assets
9,830
7,471

Expenses not deductible for tax purposes
598
2,176

Utilisation of tax losses
-
(1,821)

Change in corporation tax rate in future periods
(1,025)
19,338

Adjustments to tax charge in respect of prior periods
1,000
-

Changes in provisions leading to an increase (decrease) in the tax charge
(528)
173,988

Enhanced relief for qualifying additions
(13,491)
(39,995)

Total tax charge for the year
112,306
334,651

Page 25

 


 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


12.


Tangible fixed assets (group)


Group







Freehold property
Leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Assets under construction
Total

£
£
£
£
£
£
£
£



Cost or valuation


At 1 January 2023
983,019
113,741
548,126
4,848,602
-
191,738
1,734,177
8,419,403


Additions
-
111,194
18,832
792,782
132,676
975
168,127
1,224,586


Disposals
-
-
(4,715)
(95,623)
-
(9,390)
-
(109,728)


Transfers between classes
1,688,079
-
-
-
214,225
-
(1,902,304)
-



At 31 December 2023

2,671,098
224,935
562,243
5,545,761
346,901
183,323
-
9,534,261



Depreciation


At 1 January 2023
75,322
113,741
198,731
1,955,951
-
143,984
-
2,487,729


Charge for the year
39,321
-
103,586
635,453
24,887
25,351
-
828,598


Disposals
-
-
(4,715)
(82,281)
-
(9,390)
-
(96,386)



At 31 December 2023

114,643
113,741
297,602
2,509,123
24,887
159,945
-
3,219,941



Net book value



At 31 December 2023
2,556,455
111,194
264,641
3,036,638
322,014
23,378
-
6,314,320



At 31 December 2022
907,697
-
349,395
2,892,651
-
47,754
1,734,177
5,931,674

Page 26

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           12.Tangible fixed assets (group) (continued)




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
2,556,455
907,697

Long leasehold
111,194
-

2,667,649
907,697


The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
155,686
188,983

Motor vehicles
2,568,156
3,087,588

Furniture, fittings and equipment
306,934
-

3,030,776
3,276,571


13.


Fixed asset investments

Group





Unlisted investments

£



Cost or valuation


Additions
50,000



At 31 December 2023
50,000




Page 27

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
1,042,498



At 31 December 2023
1,042,498





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Freightforce Distribution Ltd
Anglia House, 6 Central Avenue, Norwich, NR7 0HR
Ordinary
100%
Freightforce Ltd
Anglia House, 6 Central Avenue, Norwich, NR7 0HR
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Freightforce Distribution Ltd
3,308,088
519,900

Freightforce Ltd
-
-


14.


Stocks

Group
Group
2023
2022
£
£

Vehicle fuel
8,547
7,206

Vehicle tyres and spare parts
30,500
30,000

39,047
37,206


The difference between purchase price or production cost of stocks and their replacement cost is not material.


15.


Debtors

Page 28

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
2,177,615
1,972,827
-
-

Amounts owed by group undertakings
-
-
133,377
-

Other debtors
168,933
264,759
1,313
1,313

Prepayments and accrued income
341,761
62,618
-
-

2,688,309
2,300,204
134,690
1,313


Included within trade debtors, are amounts totalling £1,287,880 (2022: £1,119,293) that are subject to the invoice discounting agreement. These assets have not been derecognised from the balance sheet because the Group remains ultimately responsible for any unpaid balances.
Amounts owed by group undertakings are unsecured, interest free, with no fixed date of repayment.


16.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
160,905
783,758
75,674
-

Trade creditors
816,034
827,374
-
-

Amounts owed to group undertakings
-
-
-
720,995

Corporation tax
3,246
11,256
-
-

Other taxation and social security
369,987
232,730
-
-

Obligations under finance lease and hire purchase contracts
919,446
818,548
-
-

Invoice discounting creditor
1,094,698
951,399
-
-

Other creditors
82,112
49,993
-
-

Accruals and deferred income
76,576
56,285
-
-

3,523,004
3,731,343
75,674
720,995


The invoice discounting creditor of £1,094,698 (2022: £951,399) is secured against the trading debts for which the Group has received monies in advance of trading debt settlement.
The hire purchase contracts of £919,446 (2022: £818,548) are secured on the relevant assets. Repayments are made on a monthly basis.
Amounts owed to group undertakings are unsecured, interest free, with no fixed date of repayment.

Page 29

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
1,402,023
684,358
802,896
-

Obligations under finance leases and hire purchase contracts
1,421,754
1,340,326
-
-

2,823,777
2,024,684
802,896
-


The hire purchase contracts of £1,421,754 (2022: £1,340,326) are secured on the relevant assets. Repayments are made on a monthly basis. Interest is charged over the life of the loan, using the amortisation method.
Bank loans are secured against, an unlimited debenture incorporating a fixed and floating charge, a first legal charge over the freehold property, and a letter of set-off. Repayments are made on a monthly basis. Interest is charged monthly at rates between 2.02% and 8.15%, using the amortisation method.


18.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
160,905
783,758
75,674
-

Amounts falling due 1-2 years

Bank loans
166,105
85,231
79,403
-

Amounts falling due 2-5 years

Bank loans
412,102
192,556
260,581
-

Amounts falling due after more than 5 years

Bank loans
823,816
406,571
462,912
-

1,562,928
1,468,116
878,570
-


Page 30

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within 1 year
919,446
818,548

Between 1-5 years
1,421,754
1,340,326

2,341,200
2,158,874


20.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at amortised cost
2,646,962
2,257,173
136,859
2,116


Financial liabilities

Financial liabilities measured at amortised cost
5,961,500
5,455,756
878,570
720,995


Financial assets measured at amortised cost comprise cash at bank and in hand, trade and other debtors, and accrued income.


Financial liabilities measured at amortised cost comprise bank loans, trade and other creditors, obligations under finance leases, and invoice discounting creditors.


21.


Deferred taxation


Group



2023
As restated 2022


£

£






At beginning of year
661,218
338,910


Charged to profit or loss
108,060
322,308



At end of year
769,278
661,218

Page 31

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
21.Deferred taxation (continued)







The provision for deferred taxation is made up as follows:

Group

Group
As restated
2023
2022
£
£

Accelerated capital allowances
768,634
660,309

Other timing differences
644
909

769,278
661,218

Page 32

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,881 (2022 - 1,881) Ordinary A shares of £1.00 each
1,881
1,881
380 (2022 - 380) Ordinary B shares of £1.00 each
380
380
119 (2022 - 119) Ordinary C shares of £1.00 each
119
119

2,380

2,380



23.


Reserves

Share premium account

Share premium represents the amount raised by the Parent company on the issue of its shares in excess of the par value of the shares.

Capital redemption reserve

Capital redemption reserve is a statutory, non-distributable reserve into which amounts were transferred following the purchase of the Company's own shares.

Profit and loss account

Profit and loss account represents cumulative profits or losses, net of dividends paid.


24.


Prior year adjustment

The accounts have been restated to incorporate the impact of an understatement of the deferred tax liability. The change has resulted in profits after tax in 2022 decreasing by £380,720.


£

Summary of the prior year accounting impact


Decrease in tax on profit (P&L)
(380,720)

Increase in deferred tax liability (balance sheet)
380,720


25.


Contingent liabilities

Freightforce Distribution Limited received Government Grants during 2020 which may be repayable if the assets acquired are sold within certain timeframes. The maximum amount repayable as at 31 December 2023 is £248,809, if the assets are sold within 36 months of the final grant payment from 2020. This amount repayable reduces in months 37 to 84 following the final grant payment. The Group has no intention to dispose of the assets.

Page 33

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group, in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £75,987 (2022: £76,509). Contributions totalling £9,478 (2022: £5,368) were payable to the fund at the balance sheet date and are included in creditors.


27.


Commitments under operating leases

At 31 December 2023 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
144,756
144,756

Later than 1 year and not later than 5 years
518,375
573,756

Later than 5 years
-
89,375

663,131
807,887

28.

Rent receivable under operating leases

At 31 December 2023 the Group had future minimum rental income due under non-cancellable operating leases for each of the following periods:

Group 2023
Group 2022
        £
        £
Not later than 1 year

84,767

81,550
 
Later than 1 year and not later than 5 years

78,517

169,400
 
Later than 5 years

-

-
 

163,284

250,950
 


29.


Transactions with directors

At 1 January 2023 the directors' current accounts totalled £171,631. During the year, personal expenses were paid on behalf of the directors' totalling £12,848 (2022: £81,781). They also made repayments totalling £107,189 (2022: £45,417), leaving a total balance of £77,290 due to the Group at 31 December 2023.
No interest is charged on the directors' current accounts. 

Page 34

 
LOGISTIC MANAGEMENT FREIGHT SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

30.


Related party transactions

During the year, the Group was charged £143,000 (2022: £143,000) for the rental of land and premises by LMS Pension, an entity of which NCA Jolley is a Trustee.
Expenses totalling £10,238 (2022: £2,629) were paid by the Group on behalf of  LMS Pension. The total balance due from the LMS Pension to the Group at 31 December 2023 is £16,394 (2022: £16,885).


31.


Controlling party

The ultimate controlling party is NCA Jolley by virtue of his majority shareholding in the parent company.


Page 35