10 false false false false true false false false false false false true false false false false false false No description of principal activity 2023-01-01 Sage Accounts Production Advanced 2023 - FRS102_2023 4,780,009 6,459,762 6,850,712 1,541,181 667,796 7,724,097 3,475,494 1,178,059 463,631 4,189,922 3,534,175 3,375,218 682,100 201,444 883,544 xbrli:pure xbrli:shares iso4217:GBP 05487485 2023-01-01 2023-12-31 05487485 2023-12-31 05487485 2022-12-31 05487485 2022-01-01 2022-12-31 05487485 2022-12-31 05487485 2021-12-31 05487485 core:PlantMachinery 2023-01-01 2023-12-31 05487485 bus:RegisteredOffice 2023-01-01 2023-12-31 05487485 bus:OrdinaryShareClass1 2023-01-01 2023-12-31 05487485 bus:LeadAgentIfApplicable 2023-01-01 2023-12-31 05487485 bus:Director1 2023-01-01 2023-12-31 05487485 bus:Director2 2023-01-01 2023-12-31 05487485 core:WithinOneYear 2023-12-31 05487485 core:WithinOneYear 2022-12-31 05487485 core:PlantMachinery 2022-12-31 05487485 core:PlantMachinery 2023-12-31 05487485 core:DeferredTaxation 2023-01-01 2023-12-31 05487485 core:AfterOneYear 2023-12-31 05487485 core:AfterOneYear 2022-12-31 05487485 core:UKTax 2023-01-01 2023-12-31 05487485 core:UKTax 2022-01-01 2022-12-31 05487485 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 05487485 core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 05487485 bus:OrdinaryShareClass1 2022-01-01 2022-12-31 05487485 core:RetainedEarningsAccumulatedLosses 2022-12-31 05487485 core:RetainedEarningsAccumulatedLosses 2021-12-31 05487485 core:RetainedEarningsAccumulatedLosses 2023-12-31 05487485 core:RetainedEarningsAccumulatedLosses 2022-12-31 05487485 core:ShareCapital 2023-12-31 05487485 core:ShareCapital 2022-12-31 05487485 core:BetweenOneFiveYears 2023-12-31 05487485 core:BetweenOneFiveYears 2022-12-31 05487485 core:AcceleratedTaxDepreciationDeferredTax 2023-12-31 05487485 core:AcceleratedTaxDepreciationDeferredTax 2022-12-31 05487485 core:PlantMachinery 2022-12-31 05487485 core:LeasedAssetsHeldAsLessee core:PlantMachinery 2023-12-31 05487485 core:LeasedAssetsHeldAsLessee core:PlantMachinery 2022-12-31 05487485 core:DeferredTaxation 2022-12-31 05487485 core:DeferredTaxation 2023-12-31 05487485 bus:LeadAgentIfApplicable 2022-01-01 2022-12-31 05487485 bus:FRS102 2023-01-01 2023-12-31 05487485 bus:Audited 2023-01-01 2023-12-31 05487485 bus:LargeCompaniesRegimeForAccounts 2023-01-01 2023-12-31 05487485 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 05487485 bus:FullAccounts 2023-01-01 2023-12-31 05487485 bus:OrdinaryShareClass1 2023-12-31 05487485 bus:OrdinaryShareClass1 2022-12-31
COMPANY REGISTRATION NUMBER: 05487485
O'Malley Haulage Limited
Financial Statements
31 December 2023
O'Malley Haulage Limited
Financial Statements
Year ended 31 December 2023
Contents
Page
Strategic report
1
Directors' report
4
Independent auditor's report to the members
6
Statement of income and retained earnings
10
Statement of financial position
11
Statement of cash flows
12
Notes to the financial statements
13
O'Malley Haulage Limited
Strategic Report
Year ended 31 December 2023
REVIEW OF THE BUSINESS The principal activity of the company during the year under review was waste management for the construction industry, removing and disposing waste materials to supplying recycled and aggregate materials. Results and performance The results for the year are set out on page 10. Highlights and Key Performance Indicators (KPI's): The company reports a 6% increase in turnover from £40.2m to £42.5m. Increasing costs within the industry has caused the gross profit margin to reduce to 21.3% against 24.8% in 2022. This is considered satisfactory given the continued uncertainties and residual impact of COVID-19 and other global issues that affect commodity supply and price. Pre-tax profit for the year was £6.1m (2022 - £8m) and the Directors project a similar position for the next 12 months despite the uncertainties of price and cost increases in the market. Liquidity ratios remain positive at 2.92 (2022 - 2.63) and the company continues to focus on the net debt position and liquidity. Health and safety remains a key KPI primarily due to a commitment to our customers, workforce and industry standards. The company's safety record is significantly inside the industry average. Business environment The market the company operates in is tightly controlled, both in terms of cost and health and safety. The company is acutely aware of these issues. The directors consider the company's position at 31 December 2023 to be satisfactory and consistent with its expectations and forecasts a similar position for the coming twelve months. Strategy and future developments The company continues to seek to develop new strategies in an attempt to increase market share. The company aims to do this through continued marketing and improved training. The focus of the company is to ensure the necessary resources to provide our customers with high quality service are available to establish and maintain long lasting partnerships with our clients. The company aims to maintain a good project delivery experience, an excellent safety record, a positive attitude to new solutions and cost efficiencies and a tailored strategy for each project. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and the accounts.
Section 172 Statement & Stakeholder Engagement The directors recognise that the success of the business is based on strong relationships with stakeholders; be they employees, clients, suppliers, subcontractors or the wider public. As such all decisions made by the Directors have this ethos in mind. Close relationships with clients are integral to business stability and the directors regularly meet with clients to ensure that the service adapts to their ongoing requirements. The company's focus on innovation, collaboration and teamwork allows us to continually deliver on our client’s requirements in a professional and sustainable manner. The following outlines our key stakeholder groups and the engagement strategies employed across each. Employees The strength of our business and our brand is underpinned by attracting and retaining the best talent in the market. We engage with our employees to ensure they feel valued and motivated, understand what is expected of them and how they are supported to deliver these expectations. Throughout the year we engaged with our employees through: - Regular feedback meetings and annual performance reviews - Targeted training and toolbox talks, covering topics such as mental health awareness We celebrate the successes of our employees and apprentices via social media. Suppliers Engagement with our suppliers helps to ensure that we can deliver a high level of service and value for money to our customers. Agency and subcontracted labour are particularly important in this respect as they represent our business on a day-to-day basis. We also undertake regular service review meetings with our key suppliers and involve them in the tender process for new work. Customers It is imperative that we engage with our customers to maintain our existing relationships and to support new business opportunities. Our business is reliant on our reputation within our key markets and the repeat business this generates. Engagement with customers begins at the contract tender stage, and our management teams meet with our customers on a regular basis. Feedback is given throughout the contract to ensure client's expectations and needs are met. Communities The projects we work on have a lasting impact on local communities. Engagement with them is important in maintaining our reputation and supporting new business opportunities.
PRINCIPAL RISKS AND UNCERTAINTIES The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with regulation, legal and ethical standards is a priority for the company. The principal risks arise from winning new contracts and retaining existing clients.
FINANCIAL RISK MANAGEMENT The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are only conducted in sterling. The company's principal methods of financing comprise bank balances, trade creditors, trade debtors and loans to the company. The main purpose of these is to maintain sufficient cash flows needed for the company's operations. The company's approach to managing risks applicable to the financing methods concerned is shown below. In respect of bank balances the liquidity risk is managed by maintaining a positive cash balance. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due
This report was approved by the board of directors on 30 September 2024 and signed on behalf of the board by:
Mr. A. O'Malley
Director
Registered office:
Hilfield Lane
Aldenham
Watford
Hertfordshire
England
WD25 8DT
O'Malley Haulage Limited
Directors' Report
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
Mr. A. O'Malley
Mr. T. O'Malley
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Greenhouse gas emissions and energy consumption
Information not included:
The information in respect of greenhouse gas emissions and energy consumption has been provided in the directors' report of the group financial statements of New Ach Limited of which O'Malley Haulage Limited is a 100% owned subsidiary. Disclosure of information in the strategic report Details of the business review, future developments and financial risk management of O'Malley Haulage Limited are discussed in the Strategic Report.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 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 judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 30 September 2024 and signed on behalf of the board by:
Mr. A. O'Malley
Director
Registered office:
Hilfield Lane
Aldenham
Watford
Hertfordshire
England
WD25 8DT
O'Malley Haulage Limited
Independent Auditor's Report to the Members of O'Malley Haulage Limited
Year ended 31 December 2023
Opinion
We have audited the financial statements of O'Malley Haulage Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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.
Other information
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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters 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 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, 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. 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: Based on our understanding of the company and industry, we identified the principal risks of non compliance with laws and regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, FRS102, health and safety laws, employment law, contract law, General Data Protection Regulations and UK tax legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to fraudulent transactions that may lead to an overstatement of profits such as manipulation of revenue and understatement of expenses, in order to increase the value of the company. Audit procedures performed by the audit team included: - To perform audit testing in different sections in order to check the compliance with applicable regulations and discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, significant one-off amounts or posted by senior management. - Challenging and validating the reasonableness and judgement of any key management assumptions with particular focus on work in progress, depreciation and accruals as these are the key accounting estimates. 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 auditor's report. There are inherent limitations on the audit procedure described above. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our reportThis report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Rosa Maria Garcia Nunez
(Senior Statutory Auditor)
For and on behalf of
Abbots
Chartered Certified Accountants & Statutory Auditor
Printing House
66 Lower Road
Harrow
HA2 0DH
30 September 2024
O'Malley Haulage Limited
Statement of Income and Retained Earnings
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
42,543,710
40,230,511
Cost of sales
33,308,690
30,272,386
--------------
--------------
Gross profit
9,235,020
9,958,125
Administrative expenses
3,281,673
1,989,655
------------
------------
Operating profit
5
5,953,347
7,968,470
Other interest receivable and similar income
9
251,147
97,411
Interest payable and similar expenses
10
91,068
46,922
------------
------------
Profit before taxation
6,113,426
8,018,959
Tax on profit
11
1,333,417
1,559,197
------------
------------
Profit for the financial year and total comprehensive income
4,780,009
6,459,762
------------
------------
Dividends paid and payable
12
( 825,000)
( 1,100,000)
Retained earnings at the start of the year
22,497,417
17,137,655
--------------
--------------
Retained earnings at the end of the year
26,452,426
22,497,417
--------------
--------------
All the activities of the company are from continuing operations.
O'Malley Haulage Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
£
£
Fixed assets
Tangible assets
13
3,534,175
3,375,218
Current assets
Debtors
14
25,279,150
21,786,610
Cash at bank and in hand
12,093,894
11,480,698
--------------
--------------
37,373,044
33,267,308
Creditors: amounts falling due within one year
15
12,818,614
12,626,951
--------------
--------------
Net current assets
24,554,430
20,640,357
--------------
--------------
Total assets less current liabilities
28,088,605
24,015,575
Creditors: amounts falling due after more than one year
16
752,535
835,958
Provisions
Taxation including deferred tax
18
883,544
682,100
--------------
--------------
Net assets
26,452,526
22,497,517
--------------
--------------
Capital and reserves
Called up share capital
21
100
100
Profit and loss account
22
26,452,426
22,497,417
--------------
--------------
Shareholders funds
26,452,526
22,497,517
--------------
--------------
These financial statements were approved by the board of directors and authorised for issue on 30 September 2024 , and are signed on behalf of the board by:
Mr. A. O'Malley
Director
Company registration number: 05487485
O'Malley Haulage Limited
Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
4,780,009
6,459,762
Adjustments for:
Depreciation of tangible assets
1,178,059
965,683
Other interest receivable and similar income
( 251,147)
( 97,411)
Interest payable and similar expenses
91,068
46,922
Gains on disposal of tangible assets
( 98,335)
( 59,950)
Tax on profit
1,333,417
1,559,197
Accrued expenses
1,027,758
105,896
Changes in:
Trade and other debtors
( 3,492,434)
( 5,663,496)
Trade and other creditors
( 1,697,807)
1,240,133
------------
------------
Cash generated from operations
2,870,588
4,556,736
Interest paid
( 91,068)
( 46,922)
Interest received
251,041
74,731
Tax paid
( 1,233,523)
( 1,058,870)
------------
------------
Net cash from operating activities
1,797,038
3,525,675
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 1,541,181)
( 146,350)
Proceeds from sale of tangible assets
302,500
172,001
------------
------------
Net cash (used in)/from investing activities
( 1,238,681)
25,651
------------
------------
Cash flows from financing activities
Proceeds from borrowings
3,751
( 6,499)
Proceeds from loans from group undertakings
957,120
686,710
Payments of finance lease liabilities
( 81,032)
( 1,172,002)
Dividends paid
( 825,000)
( 1,100,000)
------------
------------
Net cash from/(used in) financing activities
54,839
( 1,591,791)
------------
------------
Net increase in cash and cash equivalents
613,196
1,959,535
Cash and cash equivalents at beginning of year
11,480,698
9,521,163
--------------
--------------
Cash and cash equivalents at end of year
12,093,894
11,480,698
--------------
--------------
O'Malley Haulage Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Hilfield Lane, Aldenham, Watford, Hertfordshire, WD25 8DT, England.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period. When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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 measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
25% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
42,543,710
40,230,511
--------------
--------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
1,178,059
965,683
Gains on disposal of tangible assets
( 98,335)
( 59,950)
Impairment of trade debtors
1,080,618
127,364
------------
----------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
16,375
15,000
--------
--------
Fees payable to the company's auditor and its associates for other services:
Audit-related assurance services
6,500
6,500
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Administrative staff
8
8
Management staff
2
2
----
----
10
10
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
282,687
278,141
Social security costs
21,470
27,536
Other pension costs
27,954
30,016
----------
----------
332,111
335,693
----------
----------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
9,096
9,029
Company contributions to defined contribution pension plans
22,000
24,000
--------
--------
31,096
33,029
--------
--------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
1
1
----
----
9. Other interest receivable and similar income
2023
2022
£
£
Interest on loans and receivables
53,002
73,080
Interest on cash and cash equivalents
198,145
24,331
----------
--------
251,147
97,411
----------
--------
10. Interest payable and similar expenses
2023
2022
£
£
Interest on obligations under finance leases and hire purchase contracts
63,683
46,922
Other interest payable and similar charges
27,385
--------
--------
91,068
46,922
--------
--------
11. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
1,374,158
1,454,330
Adjustments in respect of prior periods
( 242,185)
------------
------------
Total current tax
1,131,973
1,454,330
------------
------------
Deferred tax:
Origination and reversal of timing differences
201,444
104,867
------------
------------
Tax on profit
1,333,417
1,559,197
------------
------------
The main rate of UK Corporation Tax increased from 19% to 25% on 1 April 2023. As the company's financial year straddles this date, a blended corporation tax rate of 23.52% has been applied which is calculated by apportioning the two tax rates on a weighted basis for the proportion of the financial year for which each main rate tax was applicable.
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
6,113,426
8,018,959
------------
------------
Profit on ordinary activities by rate of tax
1,437,911
1,523,602
Adjustment to tax charge in respect of prior periods
( 242,185)
Effect of expenses not deductible for tax purposes
18,718
13,778
Effect of capital allowances and depreciation
( 82,471)
( 83,050)
Deferred tax
201,444
104,867
------------
------------
Tax on profit
1,333,417
1,559,197
------------
------------
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2023
2022
£
£
Equity dividends on ordinary shares
825,000
1,100,000
----------
------------
13. Tangible assets
Plant and machinery
£
Cost
At 1 January 2023
6,850,712
Additions
1,541,181
Disposals
( 667,796)
------------
At 31 December 2023
7,724,097
------------
Depreciation
At 1 January 2023
3,475,494
Charge for the year
1,178,059
Disposals
( 463,631)
------------
At 31 December 2023
4,189,922
------------
Carrying amount
At 31 December 2023
3,534,175
------------
At 31 December 2022
3,375,218
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
£
At 31 December 2023
2,411,893
------------
At 31 December 2022
2,250,471
------------
14. Debtors
2023
2022
£
£
Trade debtors
7,469,236
9,783,821
Amounts owed by group undertakings
4,032,193
4,032,193
Prepayments and accrued income
428,933
22,680
Other debtors
13,348,788
7,947,916
--------------
--------------
25,279,150
21,786,610
--------------
--------------
15. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
4,433,162
6,046,243
Amounts owed to group undertakings
3,632,806
2,675,686
Accruals and deferred income
2,768,847
1,741,089
Corporation tax
1,039,148
1,140,698
Social security and other taxes
14,073
98,799
Obligations under finance leases and hire purchase contracts
901,848
899,457
Director loan accounts
28,730
24,979
--------------
--------------
12,818,614
12,626,951
--------------
--------------
Obligations under finance leases and hire purchase contracts are secured by the assets purchased under these contracts.
16. Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases and hire purchase contracts
752,535
835,958
----------
----------
Obligations under finance leases and hire purchase contracts are secured by the assets purchased under these contracts.
17. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
963,019
943,839
Later than 1 year and not later than 5 years
784,565
860,783
------------
------------
1,747,584
1,804,622
Less: future finance charges
( 93,201)
( 69,207)
------------
------------
Present value of minimum lease payments
1,654,383
1,735,415
------------
------------
18. Provisions
Deferred tax (note 19)
£
At 1 January 2023
682,100
Additions
201,444
----------
At 31 December 2023
883,544
----------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 18)
883,544
682,100
----------
----------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
883,544
682,100
----------
----------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 5,954 (2022: £ 6,016 ).
21. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
22. Reserves
Called up share capital - This reserve represents the nominal value of shares that have been issued. Profit and loss account - This reserve records retained earnings and accumulated losses.
23. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
11,480,698
613,196
12,093,894
Debt due within one year
(3,600,122)
(963,262)
(4,563,384)
Debt due after one year
(835,958)
83,423
(752,535)
--------------
----------
--------------
7,044,618
( 266,643)
6,777,975
--------------
----------
--------------
24. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
100,000
100,000
Later than 1 year and not later than 5 years
200,000
300,000
----------
----------
300,000
400,000
----------
----------
25. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value
Balance owed by/(owed to)
2023
2022
2023
2022
£
£
£
£
Other related parties
321,633
235,082
7,708,341
3,814,165
----------
----------
------------
------------
O'Malley Haulage Limited
Notes to the Financial Statements (continued)
Year ended 31 December 2023
25. Related party transactions (continued)
Transactions entered into during the year, under normal commercial terms, with non-group related companies are as disclosed above. O'Malley Haulage Limited is a 100% owned subsidiary of New Ach Limited. New Ach Limited intends to prepare consolidated accounts therefore O'Malley Haulage Limited has taken advantage of the exemption contained within FRS 102 which eliminates the requirement to report group related party balances and transactions.
26. Controlling party
100% of the share capital is owned by New Ach Limited, a company registered in England and Wales. The directors consider this to be the ultimate parent company. The group consolidated accounts can be obtained from the company's registered office; the address is stated on page 3 of these accounts.