B. S. Trailer Services Limited
Annual Report and Financial Statements
For the year ended 31 January 2024
Company Registration No. 03400340 (England and Wales)
B. S. Trailer Services Limited
Company Information
Director
O Moore
Secretary
R Franks
Company number
03400340
Registered office
Kings Farm Estate
Stanbridge Road
Billington
Leighton Buzzard
LU7 9JH
Auditors
THP Limited Chartered Accountants and Statutory Auditors
34 - 40 High Street
Wanstead
London
E11 2RJ
B. S. Trailer Services Limited
Contents
Page
Strategic report
1
Director's report
2 - 3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 28
B. S. Trailer Services Limited
Strategic Report
For the year ended 31 January 2024
Page 1

The director presents the strategic report for the year ended 31 January 2024.

Fair review of the business

Annual turnover decreased to £9,850,822 (2023 - £10,633,188) due to a reduction of trailer rental activity towards the middle of the year while cost of sales increased to £6,008,532 (2023 - £5,774,307). This led to a reduction in gross profit, with gross profit margin decreasing to 39.0% (2023 - 45.7%). This, along with the increase in hire purchase interest payable to £714,343 (2023 - £482,370), due to high capital expenditure on trailers, led to a reduction in profit before tax to £1,021,662 (2023- £2,496,546). A large proportion of this year's profit is due to the profit on disposal of fixed assets, being £726,364 (2023 - £497,645) which arose as a result of disposing of old trailers when new trailers were purchased. The performance over the last year has led to an increase of net assets to £7,207,223 (2023 - £6,658,504).

 

The company continued to grow it’s trailer fleet in the year, purchasing £6,767,190 (2023 - £3,444,381) of trailers, with the net book value of fixed assets increasing to £19,486,226 (2023 - £15,130,778). As a result, the long-term creditor associated with leasing these trailers increased to £8,200,943 (2023 - £4,775,844).

Principal risks and uncertainties

The company has considered the principal risks and uncertainties it is facing and continue to be actively monitored, to ensure these risks can be managed and handled appropriately.

 

Credit risks

The majority of the company’s customers have credit terms available to them. The company reduces the risk of irrecoverable debt by implementing credit limits that are reviewed on a regular basis. The company also reviews its trade debtor listing frequently.

 

Liquidity risk

To mitigate liquidity risk, the company will continue to maintain a mixture of short-term and long-term debt facilities to ensure that the business has sufficient cash for operations and expansion plans.

 

Interest rate risk

The majority of the company's borrowings are agreed with fixed interest rates to minimise the risk of changes to the Bank of England base rate.

Future Development

The director is optimistic of continued business growth. The company is continually looking to grow and has agreed various contracts post year-end, leading to the increase of trailer utilisation rates.

Key performance indicators

The company's key performance indicators are turnover, gross margin, profit before tax and trailer utilisation rates. These indicators and performance are monitored both against budget / forecast and past performance to identify and analyse trends.

On behalf of the board

O Moore
Director
26 October 2024
B. S. Trailer Services Limited
Director's Report
For the year ended 31 January 2024
Page 2

The director presents his annual report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activities of the company throughout the year were the leasing and sale of trailers, the running of a workshop for repairs and servicing of trucks and trailers and the operating of an MOT lane.

 

Going Concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

 

At the year end the company had net current liabilities of £1,579,790 (2023: £1,754,068). The company continues to be profitable and has invested heavily in new trailers over the last year. The working capital structure of the company is such that it is sustainable to be running in a net current liability position.

 

The Director operates a 5 year cashflow model reflecting the seasonality of aspects of the business. The model allows for utilisation of the trailer fleet, and fleet maintenance trading as well as the financing of the trailer fleet. Adjusted for no growth in the trailer fleet, the model demonstrates the business remains highly profitable and cash generative. Growth in the fleet and business will be subject to appropriate finance as well as customer demand for new trailers. The model demonstrates that with existing financing commitments the business can operate within the existing bank facilities. The director therefore has a reasonable expectation that working capital can be effectively managed during this time in order to meet liabilities as they fall due.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £165,270. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

O Moore
Auditor

THP Limited Chartered Accountants and Statutory Auditors were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

B. S. Trailer Services Limited
Director's Report (Continued)
For the year ended 31 January 2024
Page 3
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
O Moore
Director
26 October 2024
B. S. Trailer Services Limited
Director's Responsibilities Statement
For the year ended 31 January 2024
Page 4

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

B. S. Trailer Services Limited
Independent Auditor's Report
To the Members of B. S. Trailer Services Limited
Page 5
Opinion

We have audited the financial statements of B.S. Trailer Services Limited for the year ended 31 January 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement 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:

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The 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. A separate point to note is that the prior year financial statements were not audited.

B. S. Trailer Services Limited
Independent Auditor's Report (Continued)
To the Members of B. S. Trailer Services Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report.

 

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

 

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

B. S. Trailer Services Limited
Independent Auditor's Report (Continued)
To the Members of B. S. Trailer Services Limited
Page 7
Auditor's responsibilities for the audit of the financial statements

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

 

The extent to which the audit was considered capable of detecting irregularities including fraud

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 engagement 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 the director and other management, and from our commercial knowledge and experience of the sector in which the company operates;

- 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 and data protection, anti-bribery, employment, environmental, trading standards 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 set out in note 2 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;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and any other relevant regulators as required.

B. S. Trailer Services Limited
Independent Auditor's Report (Continued)
To the Members of B. S. Trailer Services Limited
Page 8

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

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 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.

Andrew Green LLB FCA (Senior Statutory Auditor)
27 October 2024
for and on behalf of THP Limited Chartered Accountants and
Statutory Auditors
34 - 40 High Street
Wanstead
London
E11 2RJ
B. S. Trailer Services Limited
Statement of Comprehensive Income
For the year ended 31 January 2024
Page 9
2024
2023
Notes
£
£
Turnover
3
9,850,822
10,633,188
Cost of sales
(6,008,532)
(5,774,307)
Gross profit
3,842,290
4,858,881
Administrative expenses
(2,090,064)
(1,857,652)
Other operating income
520
520
Operating profit
4
1,752,746
3,001,749
Interest receivable and similar income
7
14,039
1,129
Interest payable and similar expenses
8
(745,123)
(506,332)
Profit before taxation
1,021,662
2,496,546
Tax on profit
9
(307,673)
(566,765)
Profit for the financial year
713,989
1,929,781

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

B. S. Trailer Services Limited
Balance Sheet
As at 31 January 2024
Page 10
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
19,486,226
15,130,778
Current assets
Stock
12
14,000
14,000
Debtors
13
3,498,622
1,540,378
Cash at bank and in hand
362,669
1,973,334
3,875,291
3,527,712
Creditors: amounts falling due within one year
14
(5,455,081)
(5,281,780)
Net current liabilities
(1,579,790)
(1,754,068)
Total assets less current liabilities
17,906,436
13,376,710
Creditors: amounts falling due after more than one year
17
(8,427,256)
(4,847,395)
Provisions for liabilities
Deferred tax liability
18
(2,271,957)
(1,870,811)
(2,271,957)
(1,870,811)
Net assets
7,207,223
6,658,504
Capital and reserves
Called up share capital
20
250,000
250,000
Profit and loss reserves
6,957,223
6,408,504
Total equity
7,207,223
6,658,504
The financial statements were approved and signed by the director and authorised for issue on 26 October 2024
O Moore
Director
Company Registration No. 03400340
B. S. Trailer Services Limited
Statement of Changes in Equity
For the year ended 31 January 2024
Page 11
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 January 2023:
Balance at 1 February 2022
250,000
4,643,145
4,893,145
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
1,929,781
1,929,781
Dividends
-
(164,422)
(164,422)
Balance at 31 January 2023
250,000
6,408,504
6,658,504
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
713,989
713,989
Dividends
-
(165,270)
(165,270)
Balance at 31 January 2024
250,000
6,957,223
7,207,223
B. S. Trailer Services Limited
Statement of Cash Flows
For the year ended 31 January 2024
Page 12
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
2,696,774
4,229,005
Interest paid
(745,123)
(506,332)
Income taxes refunded/(paid)
8,495
(81,458)
Net cash inflow from operating activities
1,960,146
3,641,215
Investing activities
Purchase of tangible fixed assets
(208,395)
(552,518)
Proceeds from disposal of tangible fixed assets
1,104,712
645,543
Loans made to other entities
(1,300,025)
-
0
Interest received
14,039
1,129
Net cash (used in)/generated from investing activities
(389,669)
94,154
Financing activities
Proceeds from borrowings
266,250
-
0
Repayment of borrowings
(82,545)
(107,859)
Payment of finance leases obligations
(3,185,209)
(3,233,133)
Dividends paid
(165,270)
(164,422)
Net cash used in financing activities
(3,166,774)
(3,505,414)
Net (decrease)/increase in cash and cash equivalents
(1,596,297)
229,955
Cash and cash equivalents at beginning of year
1,958,966
1,729,011
Cash and cash equivalents at end of year
362,669
1,958,966
Relating to:
Cash at bank and in hand
362,669
1,973,334
Bank overdrafts included in creditors payable within one year
-
0
(14,368)
B. S. Trailer Services Limited
Notes to the Financial Statements
For the year ended 31 January 2024
Page 13
1
Accounting policies
Company information

B. S. Trailer Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kings Farm Estate, Stanbridge Road, Billington, Leighton Buzzard, LU7 9JH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

 

At the year end the company had net current liabilities of £1,579,790 (2023: £1,754,068). The company continues to be profitable and has invested heavily in new trailers over the last year. The working capital structure of the company is such that it is sustainable to be running in a net current liability position.

 

The Director operates a 5 year cashflow model reflecting the seasonality of aspects of the business. The model allows for utilisation of the trailer fleet, and fleet maintenance trading as well as the financing of the trailer fleet. Adjusted for no growth in the trailer fleet, the model demonstrates the business remains highly profitable and cash generative. Growth in the fleet and business will be subject to appropriate finance as well as customer demand for new trailers. The model demonstrates that with existing financing commitments the business can operate within the existing bank facilities. The director therefore has a reasonable expectation that working capital can be effectively managed during this time in order to meet liabilities as they fall due.

1.3
Turnover

Turnover represents the invoiced value of trailer operating lease rentals receivable, trailer maintenance and repair services and MOT services provided, net of value added tax.

 

The revenue from hire contracts is recognised over the period of the rental agreement.

 

The revenue for trailer maintenance, repairs services and MOT services provided is recognised upon completion of the work.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
Page 14

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
25% straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
25% reducing balance
Plant & Machinery
10/25% straight line
Motor vehicles
25% reducing balance
Trailers
15 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stock

Stock are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
Page 15
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
Page 16
1.11
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
Page 17
1.15
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful lives of fixed assets

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property, plant and equipment and the useful economic lives for each class of asset.

B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 18
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Commercial trailer rental
7,482,520
8,488,705
Maintenance revenue
2,001,979
1,889,714
Other trading revenue
366,323
254,769
9,850,822
10,633,188
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
9,850,822
10,633,188
2024
2023
£
£
Other significant revenue
Interest income
14,039
1,129
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
-
0
Depreciation of owned tangible fixed assets
153,983
130,692
Depreciation of tangible fixed assets held under finance leases
2,087,806
1,745,925
Profit on disposal of tangible fixed assets
(726,364)
(497,645)
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Maintenance and drivers
37
37
Sales and administration
15
15
Total
52
52
B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
5
Employees
(Continued)
Page 19

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,013,362
2,031,644
Social security costs
215,091
217,474
Pension costs
53,497
56,046
2,281,950
2,305,164
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
16,320
16,320

The Director is deemed to be the key management for the purposes of disclosure under FRS102.

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,535
1,129
Other interest income
10,504
-
0
Total income
14,039
1,129

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
3,535
1,129
B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 20
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
9
398
Other interest on financial liabilities
22,276
23,564
22,285
23,962
Other finance costs:
Interest on finance leases and hire purchase contracts
714,343
482,370
Other interest
8,495
-
0
745,123
506,332
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
253,378
Adjustments in respect of prior periods
(93,473)
-
0
Total current tax
(93,473)
253,378
Deferred tax
Origination and reversal of timing differences
401,146
313,387
Total tax charge
307,673
566,765
B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
9
Taxation
(Continued)
Page 21

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,021,662
2,496,546
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
245,505
474,344
Tax effect of expenses that are not deductible in determining taxable profit
8,906
17,448
Tax effect of utilisation of tax losses not previously recognised
118,219
-
0
Adjustments in respect of prior years
(93,471)
-
0
Effect of change in corporation tax rate
15,562
62,021
Depreciation on assets not qualifying for tax allowances
12,952
12,952
Taxation charge for the year
307,673
566,765
10
Intangible fixed assets
Software
£
Cost
At 1 February 2023 and 31 January 2024
43,085
Amortisation and impairment
At 1 February 2023 and 31 January 2024
43,085
Carrying amount
At 31 January 2024
-
0
At 31 January 2023
-
0
B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 22
11
Tangible fixed assets
Leasehold improvements
Plant & Machinery
Motor vehicles
Trailers
Total
£
£
£
£
£
Cost
At 1 February 2023
1,301,187
470,180
986,468
21,517,100
24,274,935
Additions
78,897
9,405
120,093
6,767,190
6,975,585
Disposals
-
0
-
0
(4,250)
(2,273,161)
(2,277,411)
At 31 January 2024
1,380,084
479,585
1,102,311
26,011,129
28,973,109
Depreciation and impairment
At 1 February 2023
962,141
328,178
429,406
7,424,432
9,144,157
Depreciation charged in the year
87,469
59,431
152,406
1,942,483
2,241,789
Eliminated in respect of disposals
-
0
-
0
(3,915)
(1,895,148)
(1,899,063)
At 31 January 2024
1,049,610
387,609
577,897
7,471,767
9,486,883
Carrying amount
At 31 January 2024
330,474
91,976
524,414
18,539,362
19,486,226
At 31 January 2023
339,046
142,002
557,062
14,092,668
15,130,778

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant & Machinery
2,475
9,174
Other assets
18,539,362
14,092,668
Motor vehicles
490,709
513,239
19,032,546
14,615,081
12
Stock
2024
2023
£
£
Raw materials and consumables
14,000
14,000
B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 23
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,802,390
1,503,639
Corporation tax recoverable
94,363
-
0
Other debtors
1,601,869
36,739
3,498,622
1,540,378

Trade debtors disclosed above are measured at amortised cost.

14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Loans and overdrafts
15
-
0
14,368
Obligations under finance leases
16
4,048,362
3,891,480
Trade creditors
572,176
571,907
Corporation tax payable
262,763
253,378
Other taxation and social security
205,836
341,474
Other creditors
276,097
138,017
Accruals and deferred income
89,847
71,156
5,455,081
5,281,780
15
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
-
0
14,368
Payable within one year
-
0
14,368

 

 

B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 24
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
4,048,362
3,891,480
In two to five years
7,676,209
4,548,230
In over five years
524,734
227,614
12,249,305
8,667,324
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
8,200,943
4,775,844
Other creditors
226,313
71,551
8,427,256
4,847,395

Other creditors (amounts falling due within one year and more than one year) includes an amount of £89,967 (2023: £169,697) for Coronavirus Business Interruption Loans (CBIL). Under the CBIL scheme, the Secretary of State has agreed to provide the loan providers with a partial guarantee. The loans incur interest of 10% per annum and are repayable by December 2024.

 

Bank facilities with Natwest are secured by way of a mortgage debenture and a fixed and floating charge over the assets of the company. At the year-end, the net overdraft position was £nil (2023 - £nil).

 

A fixed charge with a negative pledge is held over the assets of the company by United Trust Bank Limited in respect of a finance agreement.

 

Obligations under finance leases (amounts falling due within one year and more than one year) includes an amount of £999,658 (2023: £Nil) owed for trailers that were entered into a hire purchase agreement for. This is secured by way of a fixed charge with the chargor acting as a bare trustee over the assets of the company. All other amounts owed under finance leases are secured on the assets to which they relate.

 

Included within other creditors due within one year and more than one year is an amount of £263,436 in relation to a loan from a third party. The amount is unsecured, repayable over 5 years and interest is charged at 17.40%.

 

B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 25
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

2024
2023
Balances:
£
£
Accelerated Capital Allowances
2,273,817
1,870,811
Retirement benefit obligations
(1,860)
-
2,271,957
1,870,811
2024
Movements in the year:
£
Liability at 1 February 2023
1,870,811
Charge to profit or loss
401,146
Liability at 31 January 2024
2,271,957
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
53,497
56,046

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 26
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
250,000
250,000
250,000
250,000
21
Related party transactions

The director charged rent of £240,000 (2023 - £240,000) to the company during the year.

 

Dividends paid to the director for the year amounted to £165,270 (2023 - £164,422).

 

Included within Other Debtors is a balance of £279,594 (2023 - £161,340) owed to the company by the director. Interest of £10,504 (2023 - £nil) was charged on this balance. During the year, there was an overdrawn amount of £282,000 (2023 - £nil) taken out by the director which was subsequently repaid in the year.

 

During the year the company provided trailer repair and related services to the Director of £100,000 (2023 - £134,695). During the year the company purchased trailers from the director for £13,000 (2023 - £404,800).

 

During the year the company made sales of £272,412 (2023 - £226,117) and purchases of £22,510 (2023 - £31,674) to/from a company with common management. At the year end there was a net balance owed from this company of £38,267 (2023 - £42,758).

 

Included within Other Debtors is a balance of £1,312,275 (2023 - £nil) owed to the company by an entity under common control.

22
Control

The ultimate controlling party is the director, by virtue of his 100% shareholding in the company.

B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 27
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
713,989
1,929,781
Adjustments for:
Taxation charged
307,673
566,765
Finance costs
745,123
506,332
Investment income
(14,039)
(1,129)
Gain on disposal of tangible fixed assets
(726,364)
(497,645)
Depreciation and impairment of tangible fixed assets
2,241,789
1,876,618
Movements in working capital:
Increase in debtors
(284,262)
(304,731)
(Decrease)/increase in creditors
(287,135)
153,014
Cash generated from operations
2,696,774
4,229,005
24
Analysis of changes in net debt
1 February 2023
Cash flows
New finance leases
31 January 2024
£
£
£
£
Cash at bank and in hand
1,973,334
(1,610,665)
-
362,669
Bank overdrafts
(14,368)
14,368
-
-
0
1,958,966
(1,596,297)
-
362,669
Obligations under finance leases
(8,667,324)
3,305,303
(6,887,284)
(12,249,305)
(6,708,358)
1,709,006
(6,887,284)
(11,886,636)
B. S. Trailer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 28
25
Prior period adjustment

The prior year financial statements have been restated to account for transactions that were incorrectly presented as cash at the year end.

Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Jan 2023
£
£
£
Current assets
Debtors due within one year
1,370,677
169,701
1,540,378
Bank and cash
2,022,002
(48,668)
1,973,334
Creditors due within one year
Finance leases
(3,770,447)
(121,033)
(3,891,480)
Net assets
6,658,504
-
6,658,504
Capital and reserves
Total equity
6,658,504
-
6,658,504
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