Company registration number 06848537 (England and Wales)
HUXLOE LOGISTICS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
HUXLOE LOGISTICS LTD
COMPANY INFORMATION
Directors
P E Raby-Smith
A C Urquhart
A L Cortes Merino
P A Walker
Secretary
A C Urquhart
Company number
06848537
Registered office
Unit 3, Henson Park
Henson Way
Telford Way Industrial Estate
Kettering
Northamptonshire
NN16 8PX
Auditor
Moore
Oakley House
Headway Business Park
3 Saxon Way West
Corby
Northamptonshire
NN18 9EZ
HUXLOE LOGISTICS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 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 - 25
HUXLOE LOGISTICS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The company is pleased to report a pre-tax profit of £1,900,816 albeit a reduction from 2023. The reduction in profit has been caused by bad debts arising in the year with a major customer failing.
Turnover has reduced but that is accounted for by the cessation in June 2023 of a significant fulfilment account which we had been active with some years. This was a high volume low margin account so our profits are only marginally affected by finishing with this contract.
The Company has paid dividends in the year of £1,538,874, so Net Assets at the Balance Sheet date have reduced by £140,634 to £4,441,627.
Principal risks and uncertainties
Huxloe Logistics principal risks in terms of turnover are associated with the wider economy, as our sales are directly dependent upon customer activity, in turn driven by consumer confidence. The rise in the cost of living in 2023 has seen a drop in this confidence and a reduction in UK online shopping, which has directly impacted our market.
As indicated above there are new economic challenges facing consumers, which will affect our own growth. We are however always seeking to win more market share with new customers.
The ongoing impact of Brexit remains an external risk to us, and we have seen a decline in consumer activity in overseas markets since early 2021 due to the additional administration and costs involved.
We are also reliant on our suppliers to perform their function in a timely and professional manner to ensure satisfaction of service to our own customer base.
Financial Risk Management Policies
The company’s principal activities expose it to a number of financial risks including liquidity risk and credit risk. The use of financial derivatives is necessary to manage the company’s cashflow and liquidity, but the Board’s policy is that such derivatives are limited to traditional and straightforward products, being a Sales Invoice Finance and bank loans.
Credit risk
The company’s credit risk is entirely related to the management and collection of trade debtors. All customers are credit checked initially and on an ongoing basis and close attention paid to our credit control function to minimise any risk.
Liquidity Risk
The company has long term debt which was used to acquire the main trading property, in which there is now significant equity.
Day to day cash management is covered by a sales finance facility which is drawn on as necessary. The board considers this source of finance to be relatively low cost and more than sufficient to finance our working capital needs.
Development and performance
The board is delighted that we have maintained pre-tax profit levels – subject to the bad debt write off - in spite of the anticipated reduction in turnover in the year to 31 March 2024. This has been achieved with margin increases and controlling costs. We expect to build on that and increase turnover and profits in the coming financial year.
The successful year has again been achieved thanks to our ability to quickly adapt to predominantly home-working conditions, and our staff and systems have stood up well to the new demands placed upon them.
During the year we have completed work on our major in-house software systems which will stand us in good stead going forward. The system, Huxloe 360, will nonetheless undergo continuous development and improvement to ensure we are ready for future challenges.
HUXLOE LOGISTICS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key performance indicators
The directors have monitored the progress of overall company strategy and the individual strategic elements by reference to certain key performance indicators:
Turnover for the year amounted to £50,385,363 (2023 £57,940,773)
Operating profit for the year was £2,067,607 (2023 £2,662,209)
Profit for the year was £1,398,240 (2023 £2,024,998)
Future Developments
The Board intends to pursue a policy of continued organic growth over the next 5 years, at the same time ensuring we have appropriate processes and systems in place to manage that growth.
A C Urquhart
Director
10 October 2024
HUXLOE LOGISTICS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of a fourth party logistics provider.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £1,538,874. 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:
P E Raby-Smith
A C Urquhart
A L Cortes Merino
P A Walker
Future developments
The board intends to pursue a policy of continued organic growth over the next 5 years, at the same time ensuring they have appropriate processes and systems in place to manage that growth.
Auditor
The auditor, Moore, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
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
A C Urquhart
Director
10 October 2024
HUXLOE LOGISTICS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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.
HUXLOE LOGISTICS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HUXLOE LOGISTICS LTD
- 5 -
Opinion
We have audited the financial statements of Huxloe Logistics Ltd (the 'company') for the year ended 31 March 2024 which comprise 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 31 March 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.
HUXLOE LOGISTICS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HUXLOE LOGISTICS LTD
- 6 -
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, is detailed below.
HUXLOE LOGISTICS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HUXLOE LOGISTICS LTD
- 7 -
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
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.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.
Amanda Etty
Senior Statutory Auditor
For and on behalf of Moore
11 October 2024
Chartered Accountants
Statutory Auditor
Oakley House
Headway Business Park
3 Saxon Way West
Corby
Northamptonshire
NN18 9EZ
HUXLOE LOGISTICS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
50,385,363
57,940,773
Cost of sales
(45,028,761)
(52,201,433)
Gross profit
5,356,602
5,739,340
Administrative expenses
(3,713,921)
(3,228,956)
Other operating income
424,926
151,825
Operating profit
4
2,067,607
2,662,209
Interest receivable and similar income
7
20
8
Interest payable and similar expenses
8
(166,811)
(133,531)
Profit before taxation
1,900,816
2,528,686
Tax on profit
9
(502,576)
(503,688)
Profit for the financial year
1,398,240
2,024,998
The profit and loss account has been prepared on the basis that all operations are continuing operations.
HUXLOE LOGISTICS LTD
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
1,175,303
Tangible assets
12
2,070,499
2,095,925
Investments
13
10,050
10,050
3,255,852
2,105,975
Current assets
Debtors
15
7,035,610
12,563,154
Cash at bank and in hand
1,084,147
464,391
8,119,757
13,027,545
Creditors: amounts falling due within one year
16
(6,368,643)
(9,945,376)
Net current assets
1,751,114
3,082,169
Total assets less current liabilities
5,006,966
5,188,144
Creditors: amounts falling due after more than one year
17
(218,212)
(217,959)
Provisions for liabilities
Deferred tax liability
19
347,127
37,924
(347,127)
(37,924)
Net assets
4,441,627
4,932,261
Capital and reserves
Called up share capital
21
1,020
1,030
Capital redemption reserve
30
20
Profit and loss reserves
4,440,577
4,931,211
Total equity
4,441,627
4,932,261
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 10 October 2024 and are signed on its behalf by:
A C Urquhart
Director
Company registration number 06848537 (England and Wales)
HUXLOE LOGISTICS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,050
3,965,946
3,966,996
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
2,024,998
2,024,998
Dividends
10
-
-
(938,978)
(938,978)
Own shares acquired
-
-
(120,755)
(120,755)
Redemption of shares
21
20
20
Reduction of shares
21
(20)
-
(20)
Balance at 31 March 2023
1,030
20
4,931,211
4,932,261
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
1,398,240
1,398,240
Dividends
10
-
-
(1,538,874)
(1,538,874)
Own shares acquired
-
-
(350,000)
(350,000)
Redemption of shares
21
10
10
Reduction of shares
21
(10)
-
(10)
Balance at 31 March 2024
1,020
30
4,440,577
4,441,627
HUXLOE LOGISTICS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
6,177,332
(184,976)
Interest paid
(166,811)
(133,531)
Income taxes paid
(600,477)
(426,276)
Net cash inflow/(outflow) from operating activities
5,410,044
(744,783)
Investing activities
Purchase of intangible assets
(1,199,889)
Purchase of tangible fixed assets
(66,456)
(14,601)
Proceeds from disposal of tangible fixed assets
50,000
Advance/(repayment) of loans
181,022
(293,260)
Interest received
20
8
Net cash used in investing activities
(1,035,303)
(307,853)
Financing activities
Purchase of own shares
(350,000)
(120,755)
Repayment of bank loans
(159,236)
(350,277)
Payment of finance leases obligations
(122,744)
(59,238)
Dividends paid
(1,538,874)
(938,978)
Net cash used in financing activities
(2,170,854)
(1,469,248)
Net increase/(decrease) in cash and cash equivalents
2,203,887
(2,521,884)
Cash and cash equivalents at beginning of year
(2,740,418)
(218,534)
Cash and cash equivalents at end of year
(536,531)
(2,740,418)
Relating to:
Cash at bank and in hand
1,084,147
464,391
Sales finance facility
(1,620,678)
(3,204,809)
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information
Huxloe Logistics Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3, Henson Park, Henson Way, Telford Way Industrial Estate, Kettering, Northamptonshire, NN16 8PX.
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.
The company has not prepared consolidated accounts, on the basis that the subsidiary is not material to the group.
1.2
Going concern
Atruet the time of approving the financial statements, 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 fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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:
Software
12.5% per annum straight line
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.
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
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:
Land and buildings freehold
2% per annum straight line
Plant and machinery
20% per annum reducing balance
Fixtures, fittings & equipment
various rates used
Motor vehicles
25% per annum reducing balance
The gain or loss arising on the 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 profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 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 and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
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, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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.
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
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
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
39,979,470
49,561,266
European Union
10,404,359
7,146,537
Rest of the World
1,534
1,232,970
50,385,363
57,940,773
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Other revenue
Interest income
20
8
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
32,814
(65,366)
Fees payable to the company's auditor for the audit of the company's financial statements
19,500
14,665
Depreciation of owned tangible fixed assets
84,620
85,461
Depreciation of tangible fixed assets held under finance leases
81,974
68,217
Loss on disposal of tangible fixed assets
3,183
-
Amortisation of intangible assets
24,586
-
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
4
4
Office staff
21
20
Warehouse staff
19
17
Total
44
41
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,021,503
2,015,197
Social security costs
202,534
222,539
Pension costs
34,110
32,729
2,258,147
2,270,465
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
436,563
439,657
Company pension contributions to defined contribution schemes
5,400
5,400
441,963
445,057
Of the remuneration for qualifying services, £7,519 (2023 £11,424) was settled by way of pension contributions in place of salary.
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
166,699
164,514
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
20
8
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
20
8
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
144,581
121,041
Other finance costs:
Interest on finance leases and hire purchase contracts
22,230
12,490
166,811
133,531
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
193,373
500,477
Adjustments in respect of prior periods
4,815
Total current tax
193,373
505,292
Deferred tax
Origination and reversal of timing differences
309,203
(1,604)
Total tax charge
502,576
503,688
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
1,900,816
2,528,686
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
475,204
480,450
Tax effect of expenses that are not deductible in determining taxable profit
8,376
11,060
Adjustments in respect of prior years
4,815
Effect of change in corporation tax rate
8,130
Depreciation on assets not qualifying for tax allowances
10,866
7,363
Taxation charge for the year
502,576
503,688
10
Dividends
2024
2023
£
£
Final paid
1,538,874
938,978
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
11
Intangible fixed assets
Software
£
Cost
At 1 April 2023
Additions
1,199,889
At 31 March 2024
1,199,889
Amortisation and impairment
At 1 April 2023
Amortisation charged for the year
24,586
At 31 March 2024
24,586
Carrying amount
At 31 March 2024
1,175,303
At 31 March 2023
12
Tangible fixed assets
Land and buildings freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
1,937,565
238,938
293,255
318,307
2,788,065
Additions
44,407
22,049
127,895
194,351
Disposals
(75,637)
(75,637)
At 31 March 2024
1,937,565
283,345
315,304
370,565
2,906,779
Depreciation and impairment
At 1 April 2023
228,063
153,293
217,951
92,833
692,140
Depreciation charged in the year
38,752
26,260
29,227
72,355
166,594
Eliminated in respect of disposals
(22,454)
(22,454)
At 31 March 2024
266,815
179,553
247,178
142,734
836,280
Carrying amount
At 31 March 2024
1,670,750
103,792
68,126
227,831
2,070,499
At 31 March 2023
1,709,502
85,645
75,304
225,474
2,095,925
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets
(Continued)
- 21 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery
41,144
51,430
Motor vehicles
225,830
222,806
266,974
274,236
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
100
100
Unlisted investments
9,950
9,950
10,050
10,050
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Magma Trading Limited
UK
Ordinary B Shares
100.00
Consolidated accounts have not been prepared on the grounds that the subsidiary is not material.
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,753,263
11,398,630
Corporation tax recoverable
106,627
Other debtors
155,844
1,081,383
Prepayments and accrued income
19,876
83,141
7,035,610
12,563,154
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
656,978
816,214
Obligations under finance leases
18
65,059
60,161
Trade creditors
3,572,321
4,500,107
Amounts owed to group undertakings
100
100
Corporation tax
300,477
Other taxation and social security
164,333
145,183
Other creditors
1,719,509
3,318,331
Accruals and deferred income
190,343
804,803
6,368,643
9,945,376
Included in bank loans is a balance of £656,978 (2023 £753,715) relating to mortgage balances which are secured by way of fixed and floating charges against the property to which it relates.
Included in obligations under finance leases are balances of £65,059 (2023 £60,161) which relate to hire purchase balances and are secured on the assets to which they relates.
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
218,212
217,959
Included in obligations under finance leases are balances of £218,212 (2023 £217,959) which relate to hire purchase balances and are secured on the assets to which they relates.
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
65,059
60,161
In two to five years
218,212
217,959
283,271
278,120
Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
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
347,127
37,924
2024
Movements in the year:
£
Liability at 1 April 2023
37,924
Charge to profit or loss
309,203
Liability at 31 March 2024
347,127
The deferred tax liability set out above, which is calculated at 25%, is expected to reverse over the life of the qualifying assets and relates to accelerated capital allowances that are expected to mature within the same period.
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,110
32,729
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
A ordinary shares of £1 each
485
485
485
485
B ordinary shares of £1 each
40
50
40
50
C ordinary shares of £1 each
315
315
315
315
D ordinary shares of £1 each
170
170
170
170
E ordinary shares of £1 each
5
5
5
5
F ordinary shares of £1 each
5
5
5
5
1,020
1,030
1,020
1,030
During the year, the company bought back 10 B ordinary £1 shares for £350,000. These shares were then cancelled. These shares rank pari passu including for distribution rights on a winding up of the Company.
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
22
Operating lease commitments
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
4,048
1,540
Between two and five years
5,060
9,108
1,540
23
Directors' transactions
Dividends totalling £1,367,305 (2023 - £867,133) were paid in the year in respect of shares held by the company's directors.
Interest free loans have been granted to the directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director's loans
-
306,865
647,832
(828,853)
125,844
306,865
647,832
(828,853)
125,844
25
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
1,398,240
2,024,998
Adjustments for:
Taxation charged
502,576
503,688
Finance costs
166,811
133,531
Investment income
(20)
(8)
Loss on disposal of tangible fixed assets
3,183
-
Amortisation and impairment of intangible assets
24,586
Depreciation and impairment of tangible fixed assets
166,594
153,678
Movements in working capital:
Decrease/(increase) in debtors
5,453,149
(2,764,635)
Decrease in creditors
(1,537,787)
(236,228)
Cash generated from/(absorbed by) operations
6,177,332
(184,976)
HUXLOE LOGISTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
26
Analysis of changes in net funds/(debt)
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
464,391
619,756
-
1,084,147
Borrowings excluding overdrafts
(816,214)
159,236
-
(656,978)
Obligations under finance leases
(278,120)
122,744
(127,895)
(283,271)
(629,943)
901,736
(127,895)
143,898
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.200P E Raby-SmithA L Cortes MerinoP A WalkerP A WalkerA C Urquhartfalsefalse068485372023-04-012024-03-3106848537bus:Director12023-04-012024-03-3106848537bus:CompanySecretaryDirector12023-04-012024-03-3106848537bus:Director22023-04-012024-03-3106848537bus:Director32023-04-012024-03-3106848537bus:CompanySecretary12023-04-012024-03-3106848537bus:Director42023-04-012024-03-3106848537bus:RegisteredOffice2023-04-012024-03-31068485372024-03-31068485372022-04-012023-03-3106848537core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3106848537core:RetainedEarningsAccumulatedLosses2023-04-012024-03-3106848537core:OtherResidualIntangibleAssets2024-03-3106848537core:OtherResidualIntangibleAssets2023-03-3106848537core:ComputerSoftware2024-03-3106848537core:ComputerSoftware2023-03-31068485372023-03-3106848537core:LandBuildingscore:OwnedOrFreeholdAssets2024-03-3106848537core:PlantMachinery2024-03-3106848537core:FurnitureFittings2024-03-3106848537core:MotorVehicles2024-03-3106848537core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3106848537core:PlantMachinery2023-03-3106848537core:FurnitureFittings2023-03-3106848537core:MotorVehicles2023-03-3106848537core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3106848537core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3106848537core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-3106848537core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3106848537core:CurrentFinancialInstruments2024-03-3106848537core:CurrentFinancialInstruments2023-03-3106848537core:ShareCapital2024-03-3106848537core:ShareCapital2023-03-3106848537core:CapitalRedemptionReserve2024-03-3106848537core:CapitalRedemptionReserve2023-03-3106848537core:RetainedEarningsAccumulatedLosses2024-03-3106848537core:RetainedEarningsAccumulatedLosses2023-03-3106848537core:ShareCapital2022-03-3106848537core:CapitalRedemptionReserve2022-03-3106848537core:RetainedEarningsAccumulatedLosses2022-03-3106848537core:ShareCapitalOrdinaryShares2024-03-3106848537core:ShareCapitalOrdinaryShares2023-03-3106848537core:ShareCapital2022-04-012023-03-3106848537core:ShareCapital2023-04-012024-03-310684853712023-04-012024-03-310684853712022-04-012023-03-3106848537core:IntangibleAssetsOtherThanGoodwill2023-04-012024-03-3106848537core:ComputerSoftware2023-04-012024-03-3106848537core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-012024-03-3106848537core:PlantMachinery2023-04-012024-03-3106848537core:FurnitureFittings2023-04-012024-03-3106848537core:MotorVehicles2023-04-012024-03-3106848537dpl:Item12023-04-012024-03-3106848537dpl:Item12022-04-012023-03-3106848537dpl:Item22023-04-012024-03-3106848537dpl:Item22022-04-012023-03-3106848537core:UKTax2023-04-012024-03-3106848537core:UKTax2022-04-012023-03-3106848537core:ComputerSoftware2023-03-3106848537core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2023-04-012024-03-3106848537core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3106848537core:PlantMachinery2023-03-3106848537core:FurnitureFittings2023-03-3106848537core:MotorVehicles2023-03-31068485372023-03-3106848537core:Non-currentFinancialInstruments2024-03-3106848537core:Non-currentFinancialInstruments2023-03-3106848537core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2024-03-3106848537core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-03-3106848537core:Subsidiary12023-04-012024-03-310684853712023-04-012024-03-3106848537core:WithinOneYear2024-03-3106848537core:WithinOneYear2023-03-3106848537core:BetweenTwoFiveYears2024-03-3106848537core:BetweenTwoFiveYears2023-03-3106848537bus:PrivateLimitedCompanyLtd2023-04-012024-03-3106848537bus:FRS1022023-04-012024-03-3106848537bus:Audited2023-04-012024-03-3106848537bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP