REGISTERED NUMBER: 12016803 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 January 2024 |
for |
K & L Freight Holdings Limited |
REGISTERED NUMBER: 12016803 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 January 2024 |
for |
K & L Freight Holdings Limited |
K & L Freight Holdings Limited (Registered number: 12016803) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 January 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
K & L Freight Holdings Limited |
Company Information |
for the Year Ended 31 January 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
Ebenezer House |
Ryecroft |
Newcastle under Lyme |
Staffordshire |
ST5 2BE |
K & L Freight Holdings Limited (Registered number: 12016803) |
Group Strategic Report |
for the Year Ended 31 January 2024 |
The directors present their strategic report of the company and the group for the year ended 31 January 2024. |
REVIEW OF BUSINESS |
Overall profitability of the group has improved with a resultant operating profit of £2,193,706 compared to £2,395,481 in the previous year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have identified the key risks faced by the group to be market risk, financial risk, credit risk and exchange rate risk. |
The directors are constantly monitoring both the quality and range of services it supplies, to minimise market risk. |
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. |
The group's policy throughout the year has been to try and maintain liquid funds at the bank whilst also funding the repayment of finance and supplier obligations. |
Where the group has had to undertake short term borrowings, the group's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. It is the group''s policy to minimise the amount of borrowings at floating rates of interest. |
The maturity of borrowings are set out in note 16 of the financial statements. The principal credit risk arises from its trade debtors. |
In order to manage credit risk, the directors set limits for its customers based on a combination of payment history and credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history. Credit risk exposure is spread out over a large number of customers. |
Exchange rate risk is minimised by quotations being caveated that the current rate of exchange at the time of shipment / arrival will be used and quoted rates can change accordingly. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The directors assess the financial performance of the group by reviewing key financial benchmarks, namely, gross profit percentage, debtor days and creditor days: |
2024 | 2023 |
Gross profit margin | 26.64% | 18.84% |
Debtors days | 40 | 28 |
Creditors days | 44 | 34 |
FUTURE DEVELOPMENTS |
Looking to the future, the directors wish to maintain appropriate investment levels in the group to maintain and secure the group's position in the market. The trading outlook for 2024 is positive with trading levels and operating margins being maintained. |
ON BEHALF OF THE BOARD: |
K & L Freight Holdings Limited (Registered number: 12016803) |
Report of the Directors |
for the Year Ended 31 January 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 January 2024. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 January 2024 will be £ 1,136,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The group has chosen in accordance with Section 414(c) of Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 to set out in the Group's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Thompson Wright Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
K & L Freight Holdings Limited |
Opinion |
We have audited the financial statements of K & L Freight Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 and of the parent company affairs as at 31 January 2024 and of the group's 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. |
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 Auditors' 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. |
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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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. |
Report of the Independent Auditors to the Members of |
K & L Freight Holdings Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
K & L Freight Holdings Limited |
Auditors' 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 a Report of the Auditors 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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of shipping and forwarding agents and property investment businesses; |
- 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, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental, consumer rights act, other industry specific accreditations and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
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. |
Report of the Independent Auditors to the Members of |
K & L Freight Holdings Limited |
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 Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
Ebenezer House |
Ryecroft |
Newcastle under Lyme |
Staffordshire |
ST5 2BE |
K & L Freight Holdings Limited (Registered number: 12016803) |
Consolidated Income Statement |
for the Year Ended 31 January 2024 |
31.1.24 | 31.1.23 |
Notes | £ | £ |
TURNOVER | 3 | 11,877,061 | 17,694,256 |
Cost of sales | 8,712,555 | 14,360,962 |
GROSS PROFIT | 3,164,506 | 3,333,294 |
Administrative expenses | 1,032,960 | 1,064,183 |
2,131,546 | 2,269,111 |
Other operating income | 62,160 | 126,370 |
OPERATING PROFIT | 5 | 2,193,706 | 2,395,481 |
Interest receivable and similar income | 721 | 15,987 |
2,194,427 | 2,411,468 |
Gain/loss on revaluation of investment property | 25,000 | 258,757 |
2,219,427 | 2,670,225 |
Interest payable and similar expenses | 6 | 60,914 | 37,399 |
PROFIT BEFORE TAXATION | 2,158,513 | 2,632,826 |
Tax on profit | 7 | 535,517 | 500,093 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,622,996 | 2,132,733 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 January 2024 |
31.1.24 | 31.1.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,622,996 | 2,132,733 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,622,996 | 2,132,733 |
Total comprehensive income attributable to: |
Owners of the parent | 1,622,996 | 2,132,733 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Consolidated Balance Sheet |
31 January 2024 |
31.1.24 | 31.1.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 361,072 | 366,573 |
Investments | 11 | 1,708 | 1,708 |
Investment property | 12 | 1,056,000 | 1,031,000 |
1,418,780 | 1,399,281 |
CURRENT ASSETS |
Debtors | 13 | 3,053,976 | 2,618,124 |
Cash at bank and in hand | 2,254,984 | 2,749,876 |
5,308,960 | 5,368,000 |
CREDITORS |
Amounts falling due within one year | 14 | 1,898,065 | 2,266,933 |
NET CURRENT ASSETS | 3,410,895 | 3,101,067 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 4,829,675 | 4,500,348 |
CREDITORS |
Amounts falling due after more than one year | 15 | (702,447 | ) | (880,905 | ) |
PROVISIONS FOR LIABILITIES | 19 | (67,178 | ) | (46,389 | ) |
NET ASSETS | 4,060,050 | 3,573,054 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 2 | 2 |
Non distributable reserve | 21 | 217,206 | 212,928 |
Retained earnings | 21 | 3,842,842 | 3,360,124 |
SHAREHOLDERS' FUNDS | 4,060,050 | 3,573,054 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 October 2024 and were signed on its behalf by: |
C M Buckley - Director |
K & L Freight Holdings Limited (Registered number: 12016803) |
Company Balance Sheet |
31 January 2024 |
31.1.24 | 31.1.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Non distributable reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,539,214 | 2,116,414 |
The financial statements were approved by the Board of Directors and authorised for issue on |
K & L Freight Holdings Limited (Registered number: 12016803) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 January 2024 |
Called up | Non |
share | Retained | distributable | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 | 2 | 2,450,319 | - | 2,450,321 |
Changes in equity |
Dividends | - | (1,010,000 | ) | - | (1,010,000 | ) |
Total comprehensive income | - | 1,919,805 | 212,928 | 2,132,733 |
Balance at 31 January 2023 | 2 | 3,360,124 | 212,928 | 3,573,054 |
Changes in equity |
Dividends | - | (1,136,000 | ) | - | (1,136,000 | ) |
Total comprehensive income | - | 1,618,718 | 4,278 | 1,622,996 |
Balance at 31 January 2024 | 2 | 3,842,842 | 217,206 | 4,060,050 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Company Statement of Changes in Equity |
for the Year Ended 31 January 2024 |
Called up | Non |
share | Retained | distributable | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2024 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Consolidated Cash Flow Statement |
for the Year Ended 31 January 2024 |
31.1.24 | 31.1.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,593,129 | 1,888,305 |
Interest paid | (60,914 | ) | (37,399 | ) |
Tax paid | (478,363 | ) | (625,454 | ) |
Net cash from operating activities | 1,053,852 | 1,225,452 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (9,162 | ) | (8,810 | ) |
Interest received | 721 | 15,987 |
Net cash from investing activities | (8,441 | ) | 7,177 |
Cash flows from financing activities |
Loan repayments in year | (169,082 | ) | (169,593 | ) |
Amount introduced by directors | 39,556 | 501,000 |
Amount withdrawn by directors | (274,777 | ) | (475,634 | ) |
Equity dividends paid | (1,136,000 | ) | (1,010,000 | ) |
Net cash from financing activities | (1,540,303 | ) | (1,154,227 | ) |
(Decrease)/increase in cash and cash equivalents | (494,892 | ) | 78,402 |
Cash and cash equivalents at beginning of year | 2 | 2,749,876 | 2,671,474 |
Cash and cash equivalents at end of year | 2 | 2,254,984 | 2,749,876 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 January 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.1.24 | 31.1.23 |
£ | £ |
Profit before taxation | 2,158,513 | 2,632,826 |
Depreciation charges | 14,663 | 14,088 |
Gain on revaluation of fixed assets | (25,000 | ) | (258,757 | ) |
Finance costs | 60,914 | 37,399 |
Finance income | (721 | ) | (15,987 | ) |
2,208,369 | 2,409,569 |
(Increase)/decrease in trade and other debtors | (362,167 | ) | 776,021 |
Decrease in trade and other creditors | (253,073 | ) | (1,297,285 | ) |
Cash generated from operations | 1,593,129 | 1,888,305 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 January 2024 |
31.1.24 | 1.2.23 |
£ | £ |
Cash and cash equivalents | 2,254,984 | 2,749,876 |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 2,749,876 | 2,671,474 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.2.23 | Cash flow | At 31.1.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,749,876 | (494,892 | ) | 2,254,984 |
2,749,876 | (494,892 | ) | 2,254,984 |
Debt |
Debts falling due within 1 year | (162,785 | ) | (9,376 | ) | (172,161 | ) |
Debts falling due after 1 year | (880,905 | ) | 178,458 | (702,447 | ) |
(1,043,690 | ) | 169,082 | (874,608 | ) |
Total | 1,706,186 | (325,810 | ) | 1,380,376 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 January 2024 |
1. | STATUTORY INFORMATION |
K & L Freight Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of the limited company and its subsidiary and its associate undertakings. |
Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such control ceases. |
Subsidiaries are included in the consolidated financial statements on the merger acquisition basis whilst associates are included using the equity method. |
Group reconstructions are included in the consolidated financial statements using the merger basis. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
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. |
Turnover |
Turnover represents net invoiced sales of services, excluding value added tax. |
Revenue is recognised as the company becomes entitled to consideration for the services supplied. |
Rental income is recognised in the period that it falls due. |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Office equipment | - |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
31.1.24 | 31.1.23 |
£ | £ |
Rendering of services | 11,877,061 | 17,694,256 |
11,877,061 | 17,694,256 |
An analysis of turnover by geographical market is given below: |
31.1.24 | 31.1.23 |
£ | £ |
United Kingdom | 9,863,092 | 15,127,267 |
Rest of the World | 2,013,969 | 2,566,989 |
11,877,061 | 17,694,256 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
4. | EMPLOYEES AND DIRECTORS |
31.1.24 | 31.1.23 |
£ | £ |
Wages and salaries | 510,390 | 481,763 |
Social security costs | 40,064 | 39,211 |
Other pension costs | 67,781 | 62,049 |
618,235 | 583,023 |
The average number of employees during the year was as follows: |
31.1.24 | 31.1.23 |
Management | 2 | 2 |
Administration | 15 | 14 |
31.1.24 | 31.1.23 |
£ | £ |
Directors' remuneration | 30,487 | 26,073 |
Directors' pension contributions to money purchase schemes | 16,667 | - |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.1.24 | 31.1.23 |
£ | £ |
Other operating leases | 31,080 | 64,688 |
Depreciation - owned assets | 14,663 | 14,088 |
Auditors' remuneration | 3,250 | 3,000 |
The auditing of accounts of any associate of the company | 13,813 | 13,000 |
Foreign exchange differences | 1,518 | - |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.1.24 | 31.1.23 |
£ | £ |
Bank loan interest | 58,553 | 35,857 |
Other interest | 2,361 | 1,542 |
60,914 | 37,399 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.1.24 | 31.1.23 |
£ | £ |
Current tax: |
UK corporation tax | 514,728 | 454,363 |
Deferred tax | 20,789 | 45,730 |
Tax on profit | 535,517 | 500,093 |
UK corporation tax has been charged at 24.03 % . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.1.24 | 31.1.23 |
£ | £ |
Profit before tax | 2,158,513 | 2,632,826 |
Profit multiplied by the standard rate of corporation tax in the UK of 24.030 % (2023 - 19 %) |
518,691 |
500,237 |
Effects of: |
Expenses not deductible for tax purposes | 3,019 | 4,681 |
Capital allowances in excess of depreciation | (1,085 | ) | (1,490 | ) |
Revaluations in year | - | (3,335 | ) |
Adjustments due to change in tax rate | 14,472 | - |
Difference between marginal rates of tax | 420 | - |
Total tax charge | 535,517 | 500,093 |
During the year the standard rate of Corporation Tax changed from 19% to 25%. |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
31.1.24 | 31.1.23 |
£ | £ |
A Ordinary shares of 1p each |
Interim | 568,000 | 505,000 |
B Ordinary shares of 1p each |
Interim | 468,000 | 405,000 |
C Ordinary shares of 1p each |
Interim | 100,000 | 100,000 |
1,136,000 | 1,010,000 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and | Office |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 February 2023 | 351,000 | 4,802 | 122,053 | 477,855 |
Additions | - | - | 9,162 | 9,162 |
At 31 January 2024 | 351,000 | 4,802 | 131,215 | 487,017 |
DEPRECIATION |
At 1 February 2023 | 7,020 | 1,853 | 102,409 | 111,282 |
Charge for year | 7,020 | 442 | 7,201 | 14,663 |
At 31 January 2024 | 14,040 | 2,295 | 109,610 | 125,945 |
NET BOOK VALUE |
At 31 January 2024 | 336,960 | 2,507 | 21,605 | 361,072 |
At 31 January 2023 | 343,980 | 2,949 | 19,644 | 366,573 |
Freehold property with a net book value of £336,960 is pledged as security for bank loans. |
Company |
Fixtures |
Freehold | and |
property | fittings | Totals |
£ | £ | £ |
COST |
At 1 February 2023 |
and 31 January 2024 |
DEPRECIATION |
At 1 February 2023 |
Charge for year |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
11. | FIXED ASSET INVESTMENTS |
Group |
Listed | Unlisted |
investments | investments | Totals |
£ | £ | £ |
COST |
At 1 February 2023 | 1,708 | - | 1,708 |
Reclassification/transfer | (1,708 | ) | 1,708 | - |
At 31 January 2024 | - | 1,708 | 1,708 |
NET BOOK VALUE |
At 31 January 2024 | - | 1,708 | 1,708 |
At 31 January 2023 | 1,708 | - | 1,708 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
K & L Freight Limited |
Registered office: 16 Cheshire Avenue, Cheshire Business Park, Lostock Gralam, Northwich, Cheshire CW9 7UA |
Nature of business: Shipping and forwarding agents |
% |
Class of shares: | holding |
Ordinary A, B and C | 100.00 |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 February 2023 | 1,031,000 |
Revaluations | 25,000 |
At 31 January 2024 | 1,056,000 |
NET BOOK VALUE |
At 31 January 2024 | 1,056,000 |
At 31 January 2023 | 1,031,000 |
Investment property of £1,056,000 is pledged as security for bank loans. |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
12. | INVESTMENT PROPERTY - continued |
Group |
Fair value at 31 January 2024 is represented by: |
£ |
Valuation in 2023 | 241,205 |
Valuation in 2024 | 25,000 |
Cost | 789,795 |
1,056,000 |
Company |
Total |
£ |
FAIR VALUE |
At 1 February 2023 |
Revaluations | 25,000 |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
Fair value at 31 January 2024 is represented by: |
£ |
Valuation in 2023 | 241,205 |
Valuation in 2024 | 25,000 |
Cost | 789,795 |
1,056,000 |
If investment property had not been revalued it would have been included at the following historical cost: |
31.1.24 | 31.1.23 |
£ | £ |
Cost | 789,795 | 789,795 |
Aggregate depreciation | (15,796 | ) | (17,552 | ) |
Investment property was valued on an open market basis on 31 January 2024 by the directors . |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.1.24 | 31.1.23 | 31.1.24 | 31.1.23 |
£ | £ | £ | £ |
Trade debtors | 1,298,238 | 1,378,340 |
Amounts owed by group undertakings | - | - |
Other debtors | 1,000 | - |
Related Party Loans | 1,556,110 | 1,112,286 | - | - |
Directors' current accounts | 73,684 | - | - | - |
VAT | 31,453 | 28,748 |
Prepayments and accrued income | 93,491 | 98,750 |
3,053,976 | 2,618,124 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.1.24 | 31.1.23 | 31.1.24 | 31.1.23 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 172,161 | 162,785 |
Trade creditors | 1,057,151 | 1,334,904 |
Tax | 290,728 | 254,363 |
Social security and other taxes | 11,887 | 10,655 |
Other creditors | 11,387 | 25,030 |
Directors' current accounts | 523 | 162,059 | - | 162,059 |
Accruals and deferred income | 354,228 | 317,137 |
1,898,065 | 2,266,933 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.1.24 | 31.1.23 | 31.1.24 | 31.1.23 |
£ | £ | £ | £ |
Bank loans (see note 16) | 702,447 | 880,905 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.1.24 | 31.1.23 | 31.1.24 | 31.1.23 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 172,161 | 162,785 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 176,741 | 163,911 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 246,116 | 314,827 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 279,590 | 402,167 | 279,590 | 402,167 |
The interest rate charge on the bank loans are 1.75% and 2.1% above base rate. There are charges over the assets of the group.. |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
31.1.24 | 31.1.23 |
£ | £ |
Within one year | 20,761 | 49,826 |
Between one and five years | - | 20,761 |
20,761 | 70,587 |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
31.1.24 | 31.1.23 | 31.1.24 | 31.1.23 |
£ | £ | £ | £ |
Bank loans | 874,608 | 1,043,690 |
Bank loans are secured by means of a fixed and floating debenture over all assets of K&L Freight Limited and K&L Freight Holdings Limited. |
There is a legal charge over property at 12 and 16 Cheshire Business Park, Cheshire Avenue, Lostock Gralam, Northwich, Cheshire, CW9 7UA granted by K&L Freight Holdings Limited. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.1.24 | 31.1.23 | 31.1.24 | 31.1.23 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 627 | 560 |
Other timing differences | 66,551 | 45,829 | 66,551 | 45,829 |
67,178 | 46,389 | 67,178 | 46,389 |
Group |
Deferred |
tax |
£ |
Balance at 1 February 2023 | 46,389 |
Provided during year | 20,789 |
Balance at 31 January 2024 | 67,178 |
Company |
Deferred |
tax |
£ |
Balance at 1 February 2023 |
Provided during year |
Balance at 31 January 2024 |
20. | CALLED UP SHARE CAPITAL |
Alloted, issued and fully paid |
Number: | Class: | Nominal | 31.1.23 | 31.1.22 |
Value: | £ | £ |
100 | A ordinary | 1p | 1.00 | 1.00 |
75 | B ordinary | 1p | 0.75 | 0.75 |
25 | C ordinary | 1p | 0.25 | 0.25 |
------------ | ------------- |
2.00 | 2.00 |
======= | ======== |
All shares have equal voting and participation rights. Dividends can be voted independently of each other. |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
21. | RESERVES |
Group |
Non |
Retained | distributable |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2023 | 3,360,124 | 212,928 | 3,573,052 |
Profit for the year | 1,622,996 | 1,622,996 |
Dividends | (1,136,000 | ) | (1,136,000 | ) |
Reserve transfer | (25,000 | ) | 25,000 | - |
Deferred tax on revaluation | 20,722 | (20,722 | ) | - |
At 31 January 2024 | 3,842,842 | 217,206 | 4,060,048 |
Company |
Non |
Retained | distributable |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2023 | 2,541,261 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Reserve transfer | (25,000 | ) | 25,000 | - |
Deferred tax on revaluation | 20,722 | (20,722 | ) | - |
At 31 January 2024 | 2,944,475 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 January 2024 and 31 January 2023: |
31.1.24 | 31.1.23 |
£ | £ |
C M Buckley |
Balance outstanding at start of year | (144,969 | ) | (187,095 | ) |
Amounts advanced | 228,680 | 318,126 |
Amounts repaid | (10,027 | ) | (276,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 73,684 | (144,969 | ) |
M Kidd |
Balance outstanding at start of year | (17,090 | ) | 50,402 |
Amounts advanced | 46,097 | 157,508 |
Amounts repaid | (29,530 | ) | (225,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (523 | ) | (17,090 | ) |
Interest has been charged at 2.0% above Bank of England base rate on any debit balances, which are repayable on demand. |
23. | RELATED PARTY DISCLOSURES |
K & L Freight Holdings Limited (Registered number: 12016803) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2024 |
23. | RELATED PARTY DISCLOSURES - continued |
Other related parties |
31.1.24 | 31.1.23 |
£ | £ |
Amount due from related party | 1,556,110 | 1,112,286 |
The loan was interest free and repayable on demand. |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is C Buckley and M Kidd. |