Company registration number 06432814 (England and Wales)
CHAMBERLAIN TRANSPORT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
CHAMBERLAIN TRANSPORT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
CHAMBERLAIN TRANSPORT LIMITED
COMPANY INFORMATION
Directors
G E Chamberlain
M A Chamberlain
S J Chamberlain
M E Chamberlain
Secretary
M A Chamberlain
Company number
06432814
Registered office
Weston Gate North
Crewe
Cheshire
CW1 6NB
Auditor
Afford Bond Holdings Limited
31 Wellington Road
Nantwich
Cheshire
CW5 7ED
Bankers
Handelsbanken
1 Lakeside
Festival Way
Stoke-on-Trent
ST1 5RY
Solicitors
Aaron LLP
Grosvenor Court
Foregate Street
Chester
CH1 1HG
CHAMBERLAIN TRANSPORT LIMITED
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 Group has continued to provide road transport services during the year. Turnover for 2024 has fallen to £6,544,246 (2023: £7,066,739). Profit before tax for the financial year has also seen a downturn at £12,204 (2023: £486,551) and total equity remains strong at £2,020,212 (2023: £2,117,987). Gross profit margin has remained consistent at 22.5% from 23.6% in 2023.
In what has been an extremely challenging year, the directors are pleased to report a reasonable profit and a strong balance sheet position.
The year to 31 March 2024 and beyond has sadly seen many family hauliers and larger corporates fall into administration. As an industry, we have come under immense pressure from our customers to keep our prices as low as possible, encouraging businesses to undertake unprofitable and unsustainable work. In addition to this, we have seen our primary costs, such as fuel, maintenance and vehicle prices continue to increase. The impact of this, on some businesses within our sector, has been terminal.
We are grateful that, despite these industry wide pressures, we live to tell the tale. Our turnover is down on the previous year, due to market conditions dictating the loss of a few contracts, however, we have gained some excellent new work and look forward to building on this in the coming months. Our relationships with our customers have been a focus of the year, with timely and effective communication being key.
We continue to acknowledge that our workforce remains our most valuable asset and we strive to offer a competitive package to retain good people. We have given all our employees pay reviews throughout the year.
New vehicle purchasing continued during the year, with the addition of tractor units and trailers, although, as we predicted last year, prices have remained prohibitively high. Our commitment to a more sustainable, greener business model has taken a leading role this year. We have converted all our local delivery vehicles to HVO fuel (Hydrotreated vegetable oil), reducing carbon emissions by 85%. We have also installed solar panels at our depot, reducing our environmental impact.
Principal risks and uncertainties
With so much uncertainty in the haulage industry at present, we envisage that further businesses will fail in the coming months and price pressures will continue to manifest. Careful management and cost control have become more important than ever, whilst continuing to provide an excellent service to our customers.
Key performance indicators
In addition to monitoring turnover and profitability, the directors review financial ratios such as liquidity ratios, employee productivity and cash flow ratios on a monthly basis. Analytical review of all cost centres is undertaken regularly.
Debtor recoverability remains a key focus and substantial efforts are made to ensure bad debts are kept to a minimum.
Future developments
The Group will continue to work hard to increase our turnover and profitability, whilst keeping our service standard and customer satisfaction high. We will look for further ways to future proof our business, reducing our carbon footprint and environmental impact.
G E Chamberlain
Director
17 October 2024
CHAMBERLAIN TRANSPORT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
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 haulage contractors.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £100,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G E Chamberlain
M A Chamberlain
S J Chamberlain
M E Chamberlain
Auditor
The auditors, Afford Bond Holdings Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
CHAMBERLAIN TRANSPORT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
On behalf of the board
G E Chamberlain
Director
17 October 2024
CHAMBERLAIN TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHAMBERLAIN TRANSPORT LIMITED
- 4 -
Opinion
We have audited the financial statements of Chamberlain Transport Limited (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.
CHAMBERLAIN TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHAMBERLAIN TRANSPORT LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Our procedures are developed based on risks identified from our knowledge of the entity, its environment, the significant laws and regulations governing its activities and of the related parties and service organisations connected with it. We also consider how the systems and controls the entity has put in place over its activities might mitigate risks identified.
Audit response to risks identified
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we undertook procedures which included, but were not limited to:
- Enquiry of management, those charged with governance around actual and potential litigation and claims.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
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.
CHAMBERLAIN TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHAMBERLAIN TRANSPORT LIMITED (CONTINUED)
- 6 -
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.
Paul Edwards FCCA CTA
Senior Statutory Auditor
For and on behalf of Afford Bond Holdings Limited
17 October 2024
Chartered Accountants
Statutory Auditor
31 Wellington Road
Nantwich
Cheshire
CW5 7ED
CHAMBERLAIN TRANSPORT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
6,544,246
7,066,739
Cost of sales
(5,074,834)
(5,399,576)
Gross profit
1,469,412
1,667,163
Administrative expenses
(1,478,713)
(1,155,769)
Operating (loss)/profit
4
(9,301)
511,394
Interest receivable and similar income
7
41,230
7,944
Interest payable and similar expenses
8
(19,725)
(32,787)
Profit before taxation
12,204
486,551
Tax on profit
9
(9,979)
(196,007)
Profit for the financial year
2,225
290,544
CHAMBERLAIN TRANSPORT LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,396,328
2,535,726
Current assets
Stocks
12
35,849
57,351
Debtors
13
1,091,362
980,906
Cash at bank and in hand
1,692,088
1,665,673
2,819,299
2,703,930
Creditors: amounts falling due within one year
14
(887,345)
(657,480)
Net current assets
1,931,954
2,046,450
Total assets less current liabilities
4,328,282
4,582,176
Creditors: amounts falling due after more than one year
15
(1,719,850)
(1,851,504)
Provisions for liabilities
Deferred tax liability
18
588,220
612,685
(588,220)
(612,685)
Net assets
2,020,212
2,117,987
Capital and reserves
Called up share capital
20
1,002
1,002
Profit and loss reserves
2,019,210
2,116,985
Total equity
2,020,212
2,117,987
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 17 October 2024 and are signed on its behalf by:
G E Chamberlain
Director
Company registration number 06432814 (England and Wales)
CHAMBERLAIN TRANSPORT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
1,002
1,926,441
1,927,443
Year ended 31 March 2023:
Profit and total comprehensive income
-
290,544
290,544
Dividends
10
-
(100,000)
(100,000)
Balance at 31 March 2023
1,002
2,116,985
2,117,987
Year ended 31 March 2024:
Profit and total comprehensive income
-
2,225
2,225
Dividends
10
-
(100,000)
(100,000)
Balance at 31 March 2024
1,002
2,019,210
2,020,212
CHAMBERLAIN TRANSPORT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
812,803
1,019,910
Interest paid
(19,725)
(32,787)
Income taxes (paid)/refunded
(14,043)
3,266
Net cash inflow from operating activities
779,035
990,389
Investing activities
Purchase of tangible fixed assets
(413,603)
(742,944)
Proceeds from disposal of tangible fixed assets
32,000
97,550
Loans made
(81,302)
Interest received
41,230
7,944
Net cash used in investing activities
(421,675)
(637,450)
Financing activities
Repayment of borrowings
(167,300)
(154,968)
Payment of finance leases obligations
(63,645)
(100,237)
Dividends paid
(100,000)
(100,000)
Net cash used in financing activities
(330,945)
(355,205)
Net increase/(decrease) in cash and cash equivalents
26,415
(2,266)
Cash and cash equivalents at beginning of year
1,665,673
1,667,939
Cash and cash equivalents at end of year
1,692,088
1,665,673
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information
Chamberlain Transport Limited is a private company limited by shares incorporated in England and Wales. The registered office is Weston Gate North, Crewe, Cheshire, CW1 6NB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, 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.
Turnover consists of revenue from the sale of road transport services.
1.4
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.
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:
Plant and machinery
20% reducing balance
Motor vehicles
20% 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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Cost is calculated using the first in first out method.
1.7
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.
1.8
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.
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.
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
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.
Other financial liabilities
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 though 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.
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.9
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.
1.10
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
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 class of business
Sale of road transport services
6,544,246
7,066,739
2024
2023
£
£
Other revenue
Interest income
41,230
7,944
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
1,500
1,500
Depreciation of owned tangible fixed assets
519,463
476,659
Depreciation of tangible fixed assets held under finance leases
-
48,644
Loss on disposal of tangible fixed assets
1,538
22,986
Operating lease charges
117,624
117,725
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Office and management
13
13
Drivers
42
41
Warehouse
9
8
Total
64
62
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,670,056
2,630,220
Pension costs
271,510
46,998
2,941,566
2,677,218
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
196,100
192,786
Company pension contributions to defined contribution schemes
225,000
-
421,100
192,786
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
39,928
7,904
Other interest income
1,302
40
Total income
41,230
7,944
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
39,928
7,904
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
403
2,295
Other interest
19,322
30,492
19,725
32,787
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
34,444
14,043
Adjustments in respect of prior periods
(5,610)
Total current tax
34,444
8,433
Deferred tax
Origination and reversal of timing differences
(24,465)
187,574
Total tax charge
9,979
196,007
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
12,204
486,551
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
3,051
92,445
Tax effect of expenses that are not deductible in determining taxable profit
6,928
4,477
Adjustments in respect of prior years
(5,610)
Effect of change in corporation tax rate
147,045
Permanent capital allowances in excess of depreciation
(42,350)
Taxation charge for the year
9,979
196,007
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
10
Dividends
2024
2023
£
£
Interim paid
100,000
100,000
11
Tangible fixed assets
Plant and machinery
Motor vehicles
Total
£
£
£
Cost
At 1 April 2023
243,561
3,489,617
3,733,178
Additions
80,766
332,837
413,603
Disposals
(49,000)
(49,000)
At 31 March 2024
324,327
3,773,454
4,097,781
Depreciation and impairment
At 1 April 2023
182,851
1,014,601
1,197,452
Depreciation charged in the year
12,059
507,404
519,463
Eliminated in respect of disposals
(15,462)
(15,462)
At 31 March 2024
194,910
1,506,543
1,701,453
Carrying amount
At 31 March 2024
129,417
2,266,911
2,396,328
At 31 March 2023
60,710
2,475,016
2,535,726
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
£
£
Motor vehicles
194,576
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
35,849
57,351
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
938,353
912,145
Other debtors
81,304
2
Prepayments and accrued income
71,705
68,759
1,091,362
980,906
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
63,645
Other borrowings
16
121,154
156,800
Trade creditors
538,821
313,284
Corporation tax
34,444
14,043
Other taxation and social security
110,413
77,941
Other creditors
20,751
20,659
Accruals and deferred income
61,762
11,108
887,345
657,480
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Other borrowings
16
1,719,850
1,851,504
16
Loans and overdrafts
2024
2023
£
£
Loans from group undertakings
1,607,157
1,617,657
Other loans
233,847
390,647
1,841,004
2,008,304
Payable within one year
121,154
156,800
Payable after one year
1,719,850
1,851,504
Included within other creditors are loans secured by a legal charge dated 25 March 2011 entered into by the Trustees of The CTL Pension Plan and the company relating to the property.
Included within other creditors are finance leases which are secured on the assets to which they relate.
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Loans and overdrafts
(Continued)
- 20 -
The other loans are repayable in quarterly instalments. The average interest charged on the loans is 6.5%.
There are no formal repayment terms for the loan from the parent undertaking.
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
64,083
Less: future finance charges
(438)
63,645
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Finance leases are secured on the assets to which they relate.
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
588,220
612,685
2024
Movements in the year:
£
Liability at 1 April 2023
612,685
Credit to profit or loss
(24,465)
Liability at 31 March 2024
588,220
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
271,510
46,998
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.
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary "A" Shares of £1 each
2
2
2
2
Ordinary "B" Shares of £1 each
1,000
1,000
1,000
1,000
1,002
1,002
1,002
1,002
21
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for the use of property.
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
102,500
102,500
22
Capital commitments
At the year end, the company had a commitment to purchase new vehicles totalling £nil (2023: £87,856).
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
196,100
192,786
Transactions with related parties
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
1,607,157
1,617,657
Key management personnel
4,758
4,758
Other related parties
233,847
390,647
Other information
Amounts owed to other related parties relate to loan amounts from The CTL Pension Plan.
The directors of the company are beneficiaries of The CTL Pension Plan. Pension contributions totaling £225,000 (2023: £nil) have been made to the pension plan.
24
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
Director loan
2.25
-
80,000
1,302
81,302
-
80,000
1,302
81,302
25
Ultimate controlling party
The directors Mr S J Chamberlain and Mr M E Chamberlain each own 1 ordinary "A" share of the issued share capital with the remaining 1,000 ordinary "B" shares being held by Chamberlain Transport (Holdings) Limited. The directors consider Chamberlain Transport (Holdings) Limited, a company registered in England and Wales, to be the company's ultimate parent company and the head of the group into which the entity is consolidated.
CHAMBERLAIN TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,225
290,544
Adjustments for:
Taxation charged
9,979
196,007
Finance costs
19,725
32,787
Investment income
(41,230)
(7,944)
Loss on disposal of tangible fixed assets
1,538
22,986
Depreciation and impairment of tangible fixed assets
519,463
525,303
Movements in working capital:
Decrease/(increase) in stocks
21,502
(27,916)
(Increase)/decrease in debtors
(29,154)
193,380
Increase/(decrease) in creditors
308,755
(205,237)
Cash generated from operations
812,803
1,019,910
27
Analysis of changes in net debt
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,665,673
26,415
1,692,088
Borrowings excluding overdrafts
(2,008,304)
167,300
(1,841,004)
Obligations under finance leases
(63,645)
63,645
-
(406,276)
257,360
(148,916)
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