Company registration number SC337333 (Scotland)
MIGDALE TRANSPORT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
A9 Accountancy Limited
Chartered Accountants
Elm House
Cradlehall Business Park
Inverness
United Kingdom
IV2 5GH
MIGDALE TRANSPORT LIMITED
COMPANY INFORMATION
Directors
Mr A M Mackenzie
Mr H G Murray
Mr G L Murray
Mr N A Milton
(Appointed 11 October 2023)
Secretary
LC Secretaries Limited
Company number
SC337333
Registered office
Bridgend
Lairg Road
Sutherland
IV24 3EA
Auditor
A9 Accountancy Limited
Elm House
Cradlehall Business Park
Inverness
United Kingdom
IV2 5GH
MIGDALE TRANSPORT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
MIGDALE TRANSPORT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Principal activities
The principal activity of the company continued to be that of transport services for the aquaculture industry.
Review of the business
This has been another successful year for the company with a busy year for both wellboats and road transport divisions. The wellboats owned and operated by the company have had a busy year and additionally the company has successfully chartered in third party wellboats for much of the year. The road transport division experienced increased demand during the year and the additional activity served to improve the financial outcome of this division for the year.
The company continues to invest heavily in the maintenance and upgrades to its welboats which in conjunction with its pride in the professionality of its crews ensures that it can provide a much-valued service to its customers. Similarly continual investment in its vehicles and trailers help to ensure a quality service and optimum fish welfare to its customers for that division.
Extended visits to the shipyard for annual maintenance for both vessels at the beginning of the present year ensured a slow start to trade but business again is very busy, and expectations are for a further successful year.
Principal risks and uncertainties
The principal risks and uncertainties facing the group are broadly as follows:
Business risk: The management of the business and our strategy are, like any business, subject to a few risks. These include competition from other fish transport operators, fluctuations with fuel costs and the effects on the fish farming industry from external matters.
Liquidity risks: The group maintains a cautious cash management policy and is confident of being able to continue servicing its bank loans in line with agreed repayment profiles. Liquidity does not pose a risk to the group.
Interest rate risk: Interest rates are not considered to pose a significant risk to the group and the group has in place an interest rate swap regarding part of its borrowing to protect against any unforeseen movements in interest rates.
Credit risk: The groups policy is to minimize exposure to losses of defaulting customers. A robust credit control policy is operated to minimize exposure where there have been incidences of an imperfect collection history,
Key performance indicators
The company monitors the business performance of both of its wellboats and its road transport divisions through monthly reporting of results. We use a variety of KPI's to monitor and drive the performance of the business, in addition to sales profit and free cash. These include sales (up 9.4%), gross profit percentage (down 9.12%), with cash and cash equivalents decreasing from £3.75M to £2.88M as detailed in the balance sheet.
Future developments
As indicated above the directors are pleased with business during the first months of the financial year and of the anticipated outcome for the remainder of the year. In particular the wellboat business, which has performed well, and the group intends to continue to invest in these business should attractive opportunities arise.
Mr H G Murray
Director
8 August 2024
MIGDALE TRANSPORT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £140,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A M Mackenzie
Mr H G Murray
Mr G L Murray
Mr N A Milton
(Appointed 11 October 2023)
Auditor
The auditor, A9 Accountancy Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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). 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.
Future developments
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
MIGDALE TRANSPORT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr H G Murray
Director
8 August 2024
MIGDALE TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MIGDALE TRANSPORT LIMITED
- 4 -
Opinion
We have audited the financial statements of Migdale Transport Limited (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 30 April 2024 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
MIGDALE TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MIGDALE TRANSPORT LIMITED
- 5 -
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 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, 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 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, 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 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.
Auditor's 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 auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:
We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management. We corroborated these enquiries through our review of external inspections, relevant correspondence with regulatory bodies and board meeting minutes.
MIGDALE TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MIGDALE TRANSPORT LIMITED
- 6 -
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where risks were considered to be higher, we performed procedures to address each identified risk.
The following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:
Reviewing minutes of meetings of those charged with governance;
Reviewing the level of and reasoning behind the company's procurement of legal and professional services;
Performing audit work procedures over the risk of management override of controls, including testing of journal entries, evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by management in their calculation of accounting estimates for potential management bias.
Procedures to confirm the existence and completeness of revenue ensuring recognised in line with the company's accounting policies.
Enquiries with management regarding the compliance with laws and regulations, including health and safety requirements.
Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's 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 member, for our audit work, for this report, or for the opinions we have formed.
Paul Capewell FCA CA
Senior Statutory Auditor
For and on behalf of A9 Accountancy Limited
27 August 2024
Chartered Accountants
Statutory Auditor
Elm House
Cradlehall Business Park
Inverness
United Kingdom
IV2 5GH
MIGDALE TRANSPORT LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
13,122,485
11,994,369
Cost of sales
(9,749,082)
(7,817,133)
Gross profit
3,373,403
4,177,236
Administrative expenses
(730,380)
(582,983)
Other operating (expenses)/income
(38,208)
19,451
Exceptional item
4
(184,000)
Operating profit
5
2,604,815
3,429,704
Interest receivable and similar income
9
414,386
199,342
Interest payable and similar expenses
10
(571,925)
(482,398)
Profit before taxation
2,447,276
3,146,648
Tax on profit
11
(622,060)
(612,977)
Profit for the financial year
1,825,216
2,533,671
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MIGDALE TRANSPORT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
£
£
Profit for the year
1,825,216
2,533,671
Other comprehensive income
-
-
Total comprehensive income for the year
1,825,216
2,533,671
MIGDALE TRANSPORT LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
5,012
5,687
Tangible assets
13
19,527,240
19,022,940
19,532,252
19,028,627
Current assets
Stocks
14
4,429
4,429
Debtors
15
2,516,743
1,668,857
Cash at bank and in hand
2,878,744
3,751,433
5,399,916
5,424,719
Creditors: amounts falling due within one year
16
(2,581,660)
(2,691,422)
Net current assets
2,818,256
2,733,297
Total assets less current liabilities
22,350,508
21,761,924
Creditors: amounts falling due after more than one year
17
(7,755,518)
(9,256,888)
Provisions for liabilities
Deferred tax liability
19
2,045,924
1,641,186
(2,045,924)
(1,641,186)
Net assets
12,549,066
10,863,850
Capital and reserves
Called up share capital
21
1,000
1,000
Profit and loss reserves
22
12,548,066
10,862,850
Total equity
12,549,066
10,863,850
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 8 August 2024 and are signed on its behalf by:
Mr H G Murray
Director
Company registration number SC337333 (Scotland)
MIGDALE TRANSPORT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
1,000
8,439,179
8,440,179
Year ended 30 April 2023:
Profit and total comprehensive income
-
2,533,671
2,533,671
Dividends
-
(110,000)
(110,000)
Balance at 30 April 2023
1,000
10,862,850
10,863,850
Year ended 30 April 2024:
Profit and total comprehensive income
-
1,825,216
1,825,216
Dividends
-
(140,000)
(140,000)
Balance at 30 April 2024
1,000
12,548,066
12,549,066
MIGDALE TRANSPORT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,761,617
5,070,492
Interest paid
(571,925)
(482,398)
Income taxes paid
(367,387)
(565,452)
Net cash inflow from operating activities
1,822,305
4,022,642
Investing activities
Purchase of intangible assets
(3,750)
Purchase of tangible fixed assets
(1,956,883)
(879,984)
Proceeds from disposal of tangible fixed assets
25,501
8,694
Interest received
414,386
199,342
Net cash used in investing activities
(1,516,996)
(675,698)
Financing activities
Repayment of bank loans
(1,037,998)
(900,257)
Dividends paid
(140,000)
(110,000)
Net cash used in financing activities
(1,177,998)
(1,010,257)
Net (decrease)/increase in cash and cash equivalents
(872,689)
2,336,687
Cash and cash equivalents at beginning of year
3,751,433
1,414,746
Cash and cash equivalents at end of year
2,878,744
3,751,433
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
1
Accounting policies
Company information
Migdale Transport Limited is a private company limited by shares incorporated in Scotland. The registered office is Bridgend, Lairg Road, Sutherland, IV24 3EA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, due to the strength of the balance sheet and the company's ability to generate sufficient cash from its operations, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Revenue is recognised on the charter of boats and hire of vehicles based on the company's rights to consideration aligned to the period of hire. Turnover is recognised on the accruals basis.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website costs
10% straight line
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
The gain or loss arising on disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.
The directors have classified the land and buildings as leasehold rather than freehold in accordance with the nature of the asset.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
5% to 10% straight line
Plant and equipment
10% straight line
Wellboats
Migdale: over 10 years to residual value for main structure and 10% straight line for all other equipment and fittings; Marsali: 5% reducing balance
Also included within tangible fixed assets are the following depreciation policies:
Fixtures, fittings & equipment: 25% straight line
Motor vehicles: 20% reducing balance
Wellboat survey costs: Capitalised and amortised periods of up to 5 years
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and conditions valued at the lower of cost and net realisable value.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Other financial liabilities
Derivatives, foreign exchange forward contracts, are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument in which event the timing of the recognition in profit or loss depends on the mature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Retirement benefits
The company makes contributions into the personal pension funds of certain directors and employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.16
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred.
1.17
Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Transport services
13,122,485
11,994,369
2024
2023
£
£
Other revenue
Interest income
414,386
199,342
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional item
-
184,000
During the prior year an uninsured loss occurred resulting in a compensation payment to a customer of £184,000.
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
42,460
(19,451)
Depreciation of owned tangible fixed assets
1,375,821
1,300,218
Loss/(profit) on disposal of tangible fixed assets
51,261
(7,000)
Amortisation of intangible assets
675
488
Operating lease charges
16,307
17,025
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,650
10,395
Audit of the financial statements of the company - prior period
4,233
-
19,883
10,395
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Direct
33
27
Admin
5
7
Management
5
3
Total
43
37
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,377,130
2,164,115
Social security costs
277,229
261,358
Pension costs
59,622
43,313
2,713,981
2,468,786
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
388,449
257,835
Company pension contributions to defined contribution schemes
11,572
8,276
400,021
266,111
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
8
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
180,064
177,447
Company pension contributions to defined contribution schemes
4,722
8,276
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
407,596
199,342
Other interest income
6,790
Total income
414,386
199,342
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
407,596
199,342
10
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
571,925
476,411
Other finance costs:
Other interest
5,987
571,925
482,398
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
217,322
421,539
Deferred tax
Origination and reversal of timing differences
404,738
191,438
Total tax charge
622,060
612,977
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,447,276
3,146,648
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
611,819
597,863
Tax effect of expenses that are not deductible in determining taxable profit
19,205
1,543
Gains not taxable
(1,330)
Adjustments in respect of prior years
(3,019)
Effect of change in corporation tax rate
10,745
Accelerated capital allowances
(363,780)
(146,175)
Relief available on other allowable expenses
(49,955)
(37,966)
Group relief
33
(122)
Deferred tax
404,738
191,438
Taxation charge for the year
622,060
612,977
12
Intangible fixed assets
Website costs
£
Cost
At 1 May 2023 and 30 April 2024
6,750
Amortisation and impairment
At 1 May 2023
1,063
Amortisation charged for the year
675
At 30 April 2024
1,738
Carrying amount
At 30 April 2024
5,012
At 30 April 2023
5,687
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
13
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Wellboats
Total
£
£
£
£
Cost
At 1 May 2023
123,246
2,991,494
22,089,568
25,204,308
Additions
570,638
1,386,245
1,956,883
Disposals
(310,077)
(310,077)
At 30 April 2024
123,246
3,252,055
23,475,813
26,851,114
Depreciation and impairment
At 1 May 2023
72,806
1,447,342
4,661,220
6,181,368
Depreciation charged in the year
6,742
288,746
1,080,333
1,375,821
Eliminated in respect of disposals
(233,315)
(233,315)
At 30 April 2024
79,548
1,502,773
5,741,553
7,323,874
Carrying amount
At 30 April 2024
43,698
1,749,282
17,734,260
19,527,240
At 30 April 2023
50,440
1,544,152
17,428,348
19,022,940
14
Stocks
2024
2023
£
£
Other inventories
4,429
4,429
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,974,782
1,431,927
Amounts owed by group undertakings
8,052
Other debtors
18,125
62,662
Prepayments and accrued income
523,836
166,216
2,516,743
1,668,857
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
1,590,039
1,126,667
Trade creditors
556,603
604,957
Amounts owed to group undertakings
246,795
Corporation tax
182,322
332,387
Other taxation and social security
96,885
84,407
Other creditors
40,289
223,218
Accruals and deferred income
115,522
72,991
2,581,660
2,691,422
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
7,755,518
9,256,888
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,395,360
4,750,216
18
Loans and overdrafts
2024
2023
£
£
Bank loans
9,345,557
10,383,555
Payable within one year
1,590,039
1,126,667
Payable after one year
7,755,518
9,256,888
The long-term loans are secured by fixed charges over the group's wellboats and a floating charge over the whole assets of the company.
The bank loan is repayable in monthly instalments over 10 years with interest being charged at a variable rate of base rate plus 1.9%.
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
2,106,203
1,751,421
Unrelieved capitalised revenue
(60,279)
(110,235)
2,045,924
1,641,186
2024
Movements in the year:
£
Liability at 1 May 2023
1,641,186
Charge to profit or loss
404,738
Liability at 30 April 2024
2,045,924
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
59,622
43,313
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
100,000
100,000
1,000
1,000
Rights, preferences and restrictions
Ordinary £0.01 shares have the following rights, preferences and restrictions:
Ordinary shares carry full voting rights but no right to fixed income or repayment of capital. Distributions are at the discretion of the company.
22
Profit and loss reserves
Retained earnings represent accumulated profits less losses and distributions.
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
3,334,062
2,288,080
Between two and five years
11,482,783
14,872,520
14,816,845
17,160,600
Lessor
The operating leases represent leases of a Wellboat to third parties. The leases are negotiated over terms of five years and rentals are fixed for five years subject only to increases in line with the Norwegian Consumer Price Index. The lease will be extended by a further two years unless the Charterer notifies the Contractor in writing no later than 31st August 2027.
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Within one year
4,672,000
Between two and five years
15,590,400
20,262,400
During the year the company recognised £2,437,208 of total payments as an expense in the profit and loss account in relation to the above lease agreements.
24
Related party transactions
The company has taken advantage of the exemption with FRS 102 Section 33 paragraph 33.1A, not to disclose transactions entered into between two or more members of the group, as the company is a wholly owned subsidiary of the group to which it is party to the transactions.
25
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
179,079
256,214
MIGDALE TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
26
Ultimate controlling party
The immediate and ultimate parent company is Migdale Group Limited (previously Badbea Crofters Limited - changed at Companies House on the 5th August 2024), a company registered in Scotland with a registered office address of Dornoch Road, Bonar Bridge, IV24 3EB. The company is included within the consolidated financial statements of Migdale Group Limited. Copies of group consolidated accounts can be obtained from Companies House, 4th Floor, Edinburgh Quay 2, 139 Fountainbridge, Edinburgh, EH3 9FF.
27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,825,216
2,533,671
Adjustments for:
Taxation charged
622,060
612,977
Finance costs
571,925
482,398
Investment income
(414,386)
(199,342)
Loss/(gain) on disposal of tangible fixed assets
51,261
(7,000)
Amortisation and impairment of intangible assets
675
488
Depreciation and impairment of tangible fixed assets
1,375,821
1,300,218
Movements in working capital:
Decrease in stocks
659
(Increase)/decrease in debtors
(847,886)
16,197
(Decrease)/increase in creditors
(423,069)
330,226
Cash generated from operations
2,761,617
5,070,492
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