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Registration number: 11441896

Vernon Land Transport Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 January 2024

 

Vernon Land Transport Limited

Contents

Strategic Report

1 to 2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Consolidated Profit and Loss Account and Statement of Retained Earnings

10

Consolidated Balance Sheet

11

Balance Sheet

12

Consolidated Statement of Cash Flows

13

Notes to the Financial Statements

14 to 28

 

Vernon Land Transport Limited

Strategic Report for the Year Ended 31 January 2024

The directors present their strategic report for the year ended 31 January 2024.

Principal activity

The principal activity of the group is distribution and warehousing primarily in the UK servicing various industries including retail, manufacturing, food, print, construction and automotive.

Fair review of the business

The Directors report a strong year of consolidation after a relocation and expansion of our head office and warehousing facility, solidifying our foundations and strengthening our service offering. The ongoing strategy of the business is to remain customer focused delivering exceptional service levels consistently. This is reflected in the results on page 10 and the maintenance of a strong balance sheet on page 11.

Market challenges and uncertainty within the global economy saw a reduction in turnover and net profit. The business navigated through these challenges by continually reviewing and implementing process improvements and cost efficiencies.

The expansion and investment into the warehouse and IT systems has increased capacity significantly and allowed us to focus on growing our customer base and securing longer-term contracts with new customers. To compliment the warehouse investment, we regularly reinvest and upgrade our fleet of HGV’s to remain efficient, environmentally aware and complian whilst operating a modern fleet.

Quality Certifications

As part of continual improvement, the business decided to implement a globally recognised standard for quality management. This will help us to improve our performance, meet customer expectations and demonstrate our commitment to quality.

Alongside implementing ISO9001 we have added ISO14001 and ISO45001 which helps the business drive forward our Environmental and Health and Safety policies, whilst ensuring processes are in place to train our employees to deliver improved services, effectively and safely.
 

Carbon green energy
 

With the introduction and adaptation of ISO14001, the business will be introducing Green Energy, therefore reducing our carbon footprint.

In addition, internal discussions are being had regarding alternative fuelled vehicles, which may be added to our growing fleet of vehicles, coupled with investment in greener forklift trucks, creates a ‘sustainability culture’ within the business.
 

Principal risks and uncertainties

The business enjoys a healthy credit rating with major credit reference agencies and operates a strict policy of paying all suppliers to agreed credit terms. Credit risk is a potential exposure to the business, we seek to reduce risk through credit approval checks for new and existing customers. We also operate a stringent credit control process.

Market conditions continue to remain volatile and therefore we review financial performance on a weekly basis to ensure we can react swiftly to any adverse fluctuations.

 

Vernon Land Transport Limited

Strategic Report for the Year Ended 31 January 2024

Approved and authorised by the Board on 17 October 2024 and signed on its behalf by:
 

.........................................
A D Land
Director

 

Vernon Land Transport Limited

Directors' Report for the Year Ended 31 January 2024

The directors present their report and the for the year ended 31 January 2024.

Directors of the group

The directors who held office during the year were as follows:

C L Jack

A D Land

Dividends

The directors recommend a final dividend payment of £339,769 be made in respect of the financial year ended 31 January 2024.

Financial instruments

Objectives and policies

The management objectives are to retain sufficient liquid funds to enable it to meet its day to day requirements, minimise the company's exposure to fluctuating interest rates, and match the repayment schedule of any external borrowings or overdrafts with the future cash flows expected to arise from the company's trading activities.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.

Its exposure to price risk, credit risk, liquidity risk and cash flow risk is minimised by retaining sufficient liquid funds to enable it to meet its day to day requirements.

Future developments

The business will continue to work closely with its existing client base, continually strengthening our relationships whilst streamlining their supply chain and allowing them to focus on running their business. This coupled with partnering with additional long-term clients to facilitate further growth.

We are in the process of designing and installing a Vehicle Maintenance Unit that includes an inspection pit and DVSA-approved brake testing unit. Having the ability to manage failures and repairs in our own facility will provide more control over our fleet and cost base.

The business aims to ensure that the hard work and dedication of its employees is always recognised and rewarded. Employee well-being and health and safety is always a priority. Our people are fundamental to our success, and we continue to review remuneration and benefits packages.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Appointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the appointment of Watson Buckle Limited as auditors of the company was confirmed at the Annual General Meeting.

Approved and authorised by the Board on 17 October 2024 and signed on its behalf by:
 

 

Vernon Land Transport Limited

Directors' Report for the Year Ended 31 January 2024

.........................................
A D Land
Director

 

Vernon Land Transport Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Vernon Land Transport Limited

Independent Auditor's Report to the Members of Vernon Land Transport Limited

Opinion

We have audited the financial statements of Vernon Land Transport Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024, which comprise the Consolidated Profit and Loss Account and Statement of Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's affairs as at 31 January 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.

The comparative period financial statements were not audited due to the companies qualifying for small companies exemptions. Opening balances have been reviewed as part of the 2024 audit.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.

The comparative period financial statements were not audited due to the company qualifying for small companies exemptions. Opening balances have been reviewed as part of 2024 audit.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

Vernon Land Transport Limited

Independent Auditor's Report to the Members of Vernon Land Transport Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

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

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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 Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Vernon Land Transport Limited

Independent Auditor's Report to the Members of Vernon Land Transport Limited

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.

Following this assessment we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in evaluating the revenue and assets of the company.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.

Following this assessment we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in evaluating the revenue and assets of the company.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

We then performed audit procedures after consideration of the above risks which included the following:

Reviewing the procedures around revenue recognition to ensure revenue is accurately recorded in the correct financial period;

Verifying the existence fixed assets and reviewing depreciation policies to ensure the valuation of assets is accurate;

enquiring of management concerning actual and potential litigation and claims;

reviewing correspondence with HMRC, and the group's legal advisors;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

 

Vernon Land Transport Limited

Independent Auditor's Report to the Members of Vernon Land Transport Limited

reading minutes of meetings of those charged with governance; and;

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.

......................................
Mark Wilcock FCA (Senior Statutory Auditor)
For and on behalf of Watson Buckle Limited,
Statutory Auditors & Chartered Accountants
Bradford

17 October 2024

 

Vernon Land Transport Limited

Consolidated Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 January 2024

Note

2024
£

2023
£

Turnover

3

7,303,725

8,513,265

Cost of sales

 

(4,333,879)

(4,533,630)

Gross profit

 

2,969,846

3,979,635

Administrative expenses

 

(3,795,074)

(3,042,374)

Other operating income

4

1,026,215

1,019,574

Operating profit

5

200,987

1,956,835

Other interest receivable and similar income

7

21,356

-

Interest payable and similar charges

8

(98,410)

(71,498)

 

(77,054)

(71,498)

Profit before tax

 

123,933

1,885,337

Taxation

12

7,092

(429,734)

Profit for the financial year

 

131,025

1,455,603

Profit/(loss) attributable to:

 

Owners of the company

 

131,025

1,455,603

Retained earnings brought forward

 

2,638,015

1,414,433

Dividends paid

 

(339,769)

(232,021)

Retained earnings carried forward

 

2,429,271

2,638,015

 

Vernon Land Transport Limited

(Registration number: 11441896)
Consolidated Balance Sheet as at 31 January 2024

Note

2024
£

2023
£

           

Fixed assets

   

 

Negative goodwill

13

 

(71,943)

 

(195,275)

Tangible assets

14

3,102,893

 

3,254,983

 

Investment property

15

164,276

 

146,532

 

   

3,267,169

 

3,401,515

Current assets

   

 

Debtors

17

2,495,539

 

1,765,840

 

Cash at bank and in hand

 

1,247,024

 

1,894,434

 

 

3,742,563

 

3,660,274

 

Creditors: Amounts falling due within one year

19

(2,453,053)

 

(2,163,634)

 

Net current assets

   

1,289,510

 

1,496,640

Total assets less current liabilities

   

4,484,736

 

4,702,880

Creditors: Amounts falling due after more than one year

19

 

(1,350,065)

 

(1,329,465)

Provisions for liabilities

20

 

(705,000)

 

(735,000)

Net assets

   

2,429,671

 

2,638,415

Capital and reserves

   

 

Called up share capital

22

400

 

400

 

Retained earnings

2,429,271

 

2,638,015

 

Equity attributable to owners of the company

 

2,429,671

 

2,638,415

 

Shareholders' funds

   

2,429,671

 

2,638,415

Approved and authorised by the Board on 17 October 2024 and signed on its behalf by:
 

.........................................
A D Land
Director

 

Vernon Land Transport Limited

(Registration number: 11441896)
Balance Sheet as at 31 January 2024

Note

2024

2023

   

£

£

£

£

Fixed assets

   

 

Investments

16

 

842,450

 

842,450

Current assets

   

 

Cash at bank and in hand

   

100

 

100

Net assets

   

842,550

 

842,550

Capital and reserves

   

 

Called up share capital

22

400

 

400

 

Profit and loss account

842,150

 

842,150

 

Shareholders' funds

   

842,550

 

842,550

The exemption under section 408 of the Companies Act has been taken therefore a Company Profit and Loss Account is not included. The company made a profit after tax for the financial year of £339,769 (2023 - profit of £232,021).

Approved and authorised by the Board on 17 October 2024 and signed on its behalf by:
 

.........................................
A D Land
Director

 

Vernon Land Transport Limited

Consolidated Statement of Cash Flows for the Year Ended 31 January 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

131,025

1,455,603

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

776,597

606,943

Loss/(profit) on disposal of tangible assets

18,052

(12,596)

Finance income

7

(21,356)

-

Finance costs

8

98,410

71,498

Corporation tax expense

 

(7,092)

429,734

 

995,636

2,551,182

Working capital adjustments

 

Increase in trade debtors

17

(729,699)

(315,006)

Increase in trade creditors

19

527,405

156,867

Increase/(decrease) in deferred income, including government grants

 

4,875

(3,000)

Cash generated from operations

 

798,217

2,390,043

Corporation tax expense

 

(46,881)

(11,993)

Net cash flow from operating activities

 

751,336

2,378,050

Cash flows from investing activities

 

Interest received

21,356

-

Acquisitions of tangible assets

(337,200)

(991,102)

Proceeds from sale of tangible assets

 

38,957

44,500

Acquisition of investment properties

15

(17,744)

-

Net cash flows from investing activities

 

(294,631)

(946,602)

Cash flows from financing activities

 

Interest paid

8

(98,410)

(71,498)

Repayment of bank borrowing

 

(219,910)

(60,266)

Repayment of other borrowing

 

(30,118)

(195)

Payments to finance lease creditors

 

(415,908)

(680,663)

Dividends paid

(339,769)

(232,021)

Net cash flows from financing activities

 

(1,104,115)

(1,044,643)

Net (decrease)/increase in cash and cash equivalents

 

(647,410)

386,805

Cash and cash equivalents at 1 February

 

1,894,434

1,507,629

Cash and cash equivalents at 31 January

 

1,247,024

1,894,434

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 8, Leeds Bradford Airport Estate
Harrogate Road
Yeadon
Leeds
LS19 7WP

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company's functional and presentation currency is pound sterling.

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 January 2024.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Negative goodwill

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Key sources of estimation uncertainty

Useful economic lives of tangible assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount is £3,088,893 (2023 -£3,254,983).

Impairment of debtors
The company makes an estimate of the recoverable value of trade debtors and other debtors. When assessing the impairment of trade debtors and other debtors, management considers factors which include the current credit rating of the debtor, the ageing profile of debtors and historical experience. The carrying amount is £2,080,808 (2023 -£1,375,277).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax.

The company recognises revenue when the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity.

Tax

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

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Motor vehicles

25% reducing balance basis

Plant and machinery

25% reducing balance basis

Leasehold improvements

10% straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually. Valuations are based on observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Provisions

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Financial assets

Basic financial assets, including trade and other receivables, are initially recognised at transaction price, 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 for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 and any subsequent reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

 

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Rendering of services

7,303,725

8,507,490

Rental income from investment property

-

5,775

7,303,725

8,513,265

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2024
£

2023
£

Government grants

4,625

3,594

Sub lease rental income

939,753

880,243

Miscellaneous other operating income

81,837

135,737

1,026,215

1,019,574

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

899,929

730,275

Amortisation credit

(123,332)

(123,332)

Operating lease expense - plant and machinery

12,974

101,076

Loss/(profit) on disposal of property, plant and equipment

18,052

(12,596)

6

Government grants

During the year the company has received grant income of £Nil (2023: £594) in respect of the Coronavirus Job Retention Scheme.
During the year the company has received grant income of £4,625 (2023: £3,000) in respect of the Clean Air HGV Fund Grant.

The amount of grants recognised in the financial statements was £4,625 (2023 - £3,594).

7

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

21,356

-

8

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

11,098

17,699

Interest on obligations under finance leases and hire purchase contracts

87,312

53,799

98,410

71,498

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

2,116,808

2,059,291

Social security costs

200,393

207,705

Pension costs, defined contribution scheme

421,192

315,143

2,738,393

2,582,139

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

16

16

Distribution

43

42

59

58

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

27,505

34,983

Contributions paid to money purchase schemes

160,000

120,000

187,505

154,983

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

2

2

11

Auditors' remuneration

2024
£

2023
£

Audit of these financial statements

21,375

-


 

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

12

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

23,000

46,973

UK corporation tax adjustment to prior periods

(92)

(239)

22,908

46,734

Deferred taxation

Arising from origination and reversal of timing differences

(30,000)

383,000

Tax (credit)/expense in the profit and loss account

(7,092)

429,734

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 24.03% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

123,933

1,885,337

Corporation tax at standard rate

29,781

358,214

Tax decrease from effect of capital allowances and depreciation

(31,579)

(113,791)

Tax (decrease)/increase from other short-term timing differences

(9,000)

5,560

Effect of expense not deductible in determining taxable profit (tax loss)

4,921

3,032

Deferred tax (credit)/expense relating to changes in tax rates or laws

(1,215)

176,719

Total tax (credit)/charge

(7,092)

429,734

Deferred tax

Group

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated tax depreciation

-

707,000

Provisions

2,000

-

2,000

707,000

2023

Asset
£

Liability
£

Accelerated tax depreciation

-

730,000

Provisions

-

5,000

-

735,000

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £254,579 (2023 - £258,829).

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

13

Intangible assets

Group

Negative goodwill

2024
£

At 1 February 2023

(195,275)

Amortisation of negative goodwill

123,332

At 31 January 2024

(71,943)

14

Tangible assets

Group

Land and buildings
£

Plant and machinery
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 February 2023

227,212

1,142,468

4,932,103

6,301,783

Additions

11,939

118,707

674,202

804,848

Disposals

-

(125,969)

(415,511)

(541,480)

At 31 January 2024

239,151

1,135,206

5,190,794

6,565,151

Depreciation

At 1 February 2023

8,756

416,811

2,621,233

3,046,800

Charge for the year

24,780

196,185

678,964

899,929

Eliminated on disposal

-

(101,576)

(382,895)

(484,471)

At 31 January 2024

33,536

511,420

2,917,302

3,462,258

Carrying amount

At 31 January 2024

205,615

623,786

2,273,492

3,102,893

At 31 January 2023

218,456

725,657

2,310,870

3,254,983

Included within the net book value of land and buildings above is £205,615 (2023 - £218,456) in respect of short leasehold land and buildings.
 

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

15

Investment properties

Group

2024
£

At 1 February

146,532

Additions

17,744

At 31 January

164,276

There has been no valuation of investment property by an independent valuer.

16

Investments

Company

2024
£

2023
£

Investments in subsidiaries

842,450

842,450

Subsidiaries

£

Cost or valuation

At 1 February 2023

842,450

Provision

Carrying amount

At 31 January 2024

842,450

At 31 January 2023

842,450

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

VLT Holdings Ltd

As per Note 1

Ordinary shares

100%

100%

VLT Logistics Ltd

As per Note 1

Ordinary shares

100%

100%

Subsidiary undertakings

VLT Holdings Ltd

The principal activity of VLT Holdings Ltd is intermediate holding company.

VLT Logistics Ltd

The principal activity of VLT Logistics Ltd is haulage & storage. VLT Logistics Ltd is a sub-subsidiary undertaking .

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

17

Debtors

 

Group

Company

Current

2024
£

2023
£

2024
£

2023
£

Trade debtors

1,437,520

1,375,277

-

-

Other debtors

643,288

-

-

-

Prepayments

414,731

390,563

-

-

 

2,495,539

1,765,840

-

-

18

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash on hand

300

300

100

100

Cash at bank

1,246,724

1,894,134

-

-

1,247,024

1,894,434

100

100

19

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

23

623,050

838,282

-

-

Trade creditors

 

754,153

489,945

-

-

Social security and other taxes

 

184,879

242,785

-

-

Outstanding defined contribution pension costs

 

9,888

15,709

-

-

Other creditors

 

1,674

121

-

-

Accruals

 

852,940

527,569

-

-

Corporation tax liability

12

23,000

46,973

-

-

Deferred income

 

3,469

2,250

-

-

 

2,453,053

2,163,634

-

-

Due after one year

 

Loans and borrowings

23

1,339,659

1,322,715

-

-

Deferred income

 

10,406

6,750

-

-

 

1,350,065

1,329,465

-

-

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

20

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 February 2023

735,000

735,000

Increase (decrease) in existing provisions

(30,000)

(30,000)

At 31 January 2024

705,000

705,000

21

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £421,192 (2023 - £315,143).

Contributions totalling £9,888 (2023 - £15,709) were payable to the scheme at the end of the year and are included in creditors.

22

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

400

400

400

400

       
 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

23

Loans and borrowings

Non-current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Hire purchase contracts

1,339,659

1,322,715

-

-

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

-

219,910

-

-

Hire purchase contracts

622,162

587,366

-

-

Other borrowings

888

31,006

-

-

623,050

838,282

-

-

24

Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

622,162

587,366

Later than one year and not later than five years

1,339,659

1,322,715

1,961,821

1,910,081

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

1,183,000

1,193,539

Later than one year and not later than five years

3,832,000

4,632,000

Later than five years

2,675,250

3,458,250

7,690,250

9,283,789

The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,460,568 (2023 - £1,164,958).

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

Operating leases - lessor

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

229,102

622,742

Later than one year and not later than five years

-

226,917

229,102

849,659

Total contingent rents recognised as income in the period are £939,753 (2023 - £880,243).

25

Related party transactions

Group

Transactions with directors

2024

At 1 February 2023
£

Advances to directors
£

Repayments by director
£

Other payments made to company by director
£

At 31 January 2024
£

Interest free loan

(29,867)

804,963

(432,077)

-

343,019

           
         

 

2023

At 1 February 2022
£

Advances to directors
£

Repayments by director
£

Other payments made to company by director
£

At 31 January 2023
£

Interest free loan

(25,794)

157,594

(161,667)

-

(29,867)

           
         

 

Income and receivables from related parties

2024

Other related parties
£

Amounts receivable from related party

120,932

2023

Other related parties
£

Amounts receivable from related party

129,474

 

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2024

Expenditure with and payables to related parties

2024

Key management
£

Amounts payable to related party

888

2023

Key management
£

Amounts payable to related party

613