Lockwood Haulage Limited
Annual report and financial statements
For the year ended 31 January 2024
Lockwood Haulage Limited
Company information
Directors
Mr R I Lockwood
Mr M P Graham
Mrs S E Rhodes
Mr M D Ash
Mr J R Lockwood
(Appointed 28 May 2024)
Company number
01087339
Registered office
Ripley Road
Sawmills
Ambergate
Derby
Derbyshire
DE56 2JR
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Lockwood Haulage Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Statement of financial position
10
Notes to the financial statements
11 - 23
Lockwood Haulage Limited
Strategic report
For the year ended 31 January 2024
- 1 -
The directors present the strategic report for the year ended 31 January 2024.
Review of the business
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
The directors are pleased to report that whilst there has been a decrease in turnover for the year of circa £1.6m the gross margin has improved by 2.13%.
This has been achieved due to fuel prices stabilising throughout the year along with a reduction in the use of subcontractors by increasing our employee numbers in the year, this has increased our cost savings, directly impacting the gross margin.
Last year the company reported a operating profit of £1.25m, however this year the operating profit has decreased to £971k. This is mainly due to continued investment in advertising to drive growth for the future.
Risks and uncertainties
As for many businesses of our size, the business environment in which we operate continues to be challenging. The market for our services is highly competitive and margins continue to be tight. Despite this the directors anticipate continued growth in the core business activities in the future.
The directors are aware of the current economic climate and of the inherent risks of this. They feel that due to the company’s strong place in the market, the company will adapt strongly to the market conditions aided by strong company reserves.
Although the war in Ukraine and subsequent increases in energy and fuel have affected costs, the company has continued to trade strongly.
With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside of our control.
Development and performance
We will be looking over the financial year to increase our gross and net profit margins.
We will do this by continuing to invest in our fleet and warehousing capacity alongside further reduction in the use of subcontractors.
In the coming year, we do not know how the government guidelines will affect our trading performance. The upcoming budget and potential increases in fuel duty costs may impact, however we will mitigate such risks by ensuring efficient route planning and high level of maintenance of the fleet to ensure we are optimising the fleet to its maximum.
Key performance indicators
We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross profit margin and profit before tax.
2024 (£) 2023 (£)
Turnover 24,073,746 25,677,555
Gross Profit 7,391,519 7,336,127
% 30.7% 28.57%
Profit before tax 768,968 1,066,899
% 3.19% 4.15%
Lockwood Haulage Limited
Strategic report (continued)
For the year ended 31 January 2024
- 2 -
Other information and explanations
Employees
The company's employment policy is to provide equal opportunity to all current and prospective employees without any discrimination. We provide a work environment in which all individuals are treated fairly with respect.
Corporate social responsibility
The company recognises its responsibilities in terms of equality and human rights towards its employees and individuals involved with the company. We ensure to give ethical considerations in supplier and employee selection and partnership. As a business, we continually monitor our codes in respect of employee welfare and respect for the community. The company is aware of its environmental responsibilities, and operates best practices to fulfil these.
Mr R I Lockwood
Director
30 October 2024
Lockwood Haulage Limited
Directors' report
For the year ended 31 January 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company continued to be that of haulage and warehouse services.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £500,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr R I Lockwood
Mr K R Allsop
(Resigned 29 February 2024)
Mr M P Graham
Mrs S E Rhodes
Mr M D Ash
Mr J R Lockwood
(Appointed 28 May 2024)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Lockwood Haulage Limited
Directors' report (continued)
For the year ended 31 January 2024
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr R I Lockwood
Director
30 October 2024
LOCKWOOD HAULAGE LIMITED
Lockwood Haulage Limited
Independent auditor's report
TO THE MEMBER OF LOCKWOOD HAULAGE LIMITED
- 5 -
Opinion
We have audited the financial statements of Lockwood Haulage Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of income and retained earnings, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
LOCKWOOD HAULAGE LIMITED
Lockwood Haulage Limited
Independent auditor's report (continued)
TO THE MEMBER OF LOCKWOOD HAULAGE LIMITED
- 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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
LOCKWOOD HAULAGE LIMITED
Lockwood Haulage Limited
Independent auditor's report (continued)
TO THE MEMBER OF LOCKWOOD HAULAGE LIMITED
- 7 -
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The extent to which the audit was considered capable of detecting irregularities including fraud are 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 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 directors and other management, and from our commercial knowledge and experience of the company;
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; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
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, 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.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
LOCKWOOD HAULAGE LIMITED
Lockwood Haulage Limited
Independent auditor's report (continued)
TO THE MEMBER OF LOCKWOOD HAULAGE LIMITED
- 8 -
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Stacey Parr FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
31 October 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Lockwood Haulage Limited
Statement of income and retained earnings
For the year ended 31 January 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
24,073,746
25,677,555
Cost of sales
(16,682,227)
(18,341,428)
Gross profit
7,391,519
7,336,127
Administrative expenses
(6,420,000)
(6,082,882)
Operating profit
4
971,519
1,253,245
Interest payable and similar expenses
7
(202,551)
(186,346)
Profit before taxation
768,968
1,066,899
Tax on profit
8
(197,506)
(182,958)
Profit for the financial year
571,462
883,941
Retained earnings brought forward
6,779,120
7,895,179
Dividends
9
(500,000)
(2,000,000)
Retained earnings carried forward
6,850,582
6,779,120
Lockwood Haulage Limited
Statement of financial position
As at 31 January 2024
31 January 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
5,072,535
5,249,277
Investments
11
49,520
5,122,055
5,249,277
Current assets
Stocks
12
172,182
150,434
Debtors
13
5,522,210
6,034,508
Cash at bank and in hand
3,669,182
3,623,601
9,363,574
9,808,543
Creditors: amounts falling due within one year
14
(5,479,155)
(5,759,217)
Net current assets
3,884,419
4,049,326
Total assets less current liabilities
9,006,474
9,298,603
Creditors: amounts falling due after more than one year
15
(1,622,492)
(2,108,294)
Provisions for liabilities
Deferred tax liability
17
532,400
410,189
(532,400)
(410,189)
Net assets
6,851,582
6,780,120
Capital and reserves
Called up share capital
19
1,000
1,000
Profit and loss reserves
20
6,850,582
6,779,120
Total equity
6,851,582
6,780,120
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 30 October 2024 and are signed on its behalf by:
Mr R I Lockwood
Director
Company registration number 01087339 (England and Wales)
Lockwood Haulage Limited
Notes to the financial statements
For the year ended 31 January 2024
- 11 -
1
Accounting policies
Company information
Lockwood Haulage Limited is a private company limited by shares, incorporated in England and Wales. The registered office is Ripley Road, Sawmills, Ambergate, Derby, Derbyshire, DE56 2JR.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Lockwood Haulage Limited is a wholly owned subsidiary of Lockwood Holdings Limited and the results of Lockwood Haulage Limited are included in the consolidated financial statements of Lockwood Holdings Limited which are available from Companies House.
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 companies within the group.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% straight line of cost
Plant and equipment
10% - 20% straight line of cost
Fixtures and fittings
20% and 33% straight line of cost
Motor vehicles
20% straight line of cost
Lorries and trailers
25% and 20% straight line of cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in unlisted investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.7
Stocks
Stocks 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 stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
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.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial assets
Basic financial assets, which includes debtors, bank balances and loans due from fellow group companies, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors and loans due to fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 15 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position 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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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:
Depreciation rates and useful economic lives of tangible assets
Management review the useful economic lives of the depreciable assets at each reporting date as to allocate the cost of the assets, less their residual values, over their estimated useful lives. Uncertainties in these estimates relate to the actual life of the tangible fixed assets.
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 16 -
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Haulage
15,895,604
17,561,317
Warehousing
8,178,142
8,116,238
24,073,746
25,677,555
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
18,500
16,250
Depreciation of owned tangible fixed assets
280,404
978,917
Depreciation of tangible fixed assets held under finance leases
1,478,634
944,819
Profit on disposal of tangible fixed assets
(70,937)
(212,596)
Operating lease charges
2,438,139
2,079,382
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
18,500
16,250
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Haulage and warehouse
237
232
Administration and management
28
26
Total
265
258
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
6
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
8,298,409
8,684,458
Social security costs
801,498
863,673
Pension costs
196,976
195,182
9,296,883
9,743,313
7
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
199,545
186,346
Other interest
3,006
202,551
186,346
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
64,026
Deferred tax
Origination and reversal of timing differences
133,480
182,958
Total tax charge
197,506
182,958
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
8
Taxation
(Continued)
- 18 -
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
768,968
1,066,899
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
192,242
202,711
Tax effect of expenses that are not deductible in determining taxable profit
12,277
6,457
Tax effect of income not taxable in determining taxable profit
(735)
Effect of change in corporation tax rate
(4,100)
Group relief
(24,791)
25,252
Depreciation on assets not qualifying for tax allowances
12,827
13,574
Deferred tax adjustments in respect of prior years
11,782
Enhanced capital allowances
(3,240)
(89,723)
Deferred tax not provided for
28,787
Revenue items capitalised
(2,856)
Taxation charge for the year
197,506
182,958
9
Dividends
2024
2023
£
£
Interim paid
500,000
2,000,000
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 19 -
10
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Lorries and trailers
Total
£
£
£
£
£
£
Cost
At 1 February 2023
783,158
3,848,149
439,589
644,767
11,506,750
17,222,413
Additions
31,823
70,388
8,146
65,849
1,464,354
1,640,560
Disposals
(189,096)
(119,391)
(308,487)
At 31 January 2024
814,981
3,918,537
447,735
521,520
12,851,713
18,554,486
Depreciation and impairment
At 1 February 2023
652,064
2,734,000
306,552
260,491
8,020,029
11,973,136
Depreciation charged in the year
55,217
343,949
57,201
108,576
1,194,095
1,759,038
Eliminated in respect of disposals
(135,683)
(114,540)
(250,223)
At 31 January 2024
707,281
3,077,949
363,753
233,384
9,099,584
13,481,951
Carrying amount
At 31 January 2024
107,700
840,588
83,982
288,136
3,752,129
5,072,535
At 31 January 2023
131,094
1,114,149
133,037
384,276
3,486,721
5,249,277
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
550,783
652,758
Motor vehicles
181,876
67,813
Lorries and trailers
2,774,598
1,441,837
3,507,257
2,162,408
11
Fixed asset investments
2024
2023
£
£
Unlisted investments
49,520
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
11
Fixed asset investments
(Continued)
- 20 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 February 2023
-
Additions
49,520
At 31 January 2024
49,520
Carrying amount
At 31 January 2024
49,520
At 31 January 2023
-
12
Stocks
2024
2023
£
£
Raw materials and consumables
172,182
150,434
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,777,123
4,885,534
Amounts owed by group undertakings
808,100
Other debtors
49,520
Prepayments and accrued income
936,987
1,088,185
5,522,210
6,023,239
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
11,269
Total debtors
5,522,210
6,034,508
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 21 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
1,703,290
1,689,191
Trade creditors
1,243,386
1,674,101
Amounts owed to group undertakings
612,857
52,044
Corporation tax
64,026
(3,006)
Other taxation and social security
317,369
786,504
Other creditors
170,310
198,985
Accruals and deferred income
1,367,917
1,361,398
5,479,155
5,759,217
Amounts due under finance leases are secured against the assets which they relate to.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
1,622,492
2,108,294
Amounts due under finance leases are secured against the assets which they relate to.
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
768,720
1,689,191
In two to five years
2,557,062
2,108,294
3,325,782
3,797,485
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period. No restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 22 -
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
532,400
410,189
-
11,269
2024
Movements in the year:
£
Liability at 1 February 2023
398,920
Charge to profit or loss
133,480
Liability at 31 January 2024
532,400
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
196,976
195,182
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.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
The ordinary shares carry full voting, dividend and capital distribution rights.
20
Profit and loss reserves
The retained earnings reserve holds the retained earnings of the company, after the deduction of any dividends paid in the period.
21
Financial commitments, guarantees and contingent liabilities
An unlimited multilateral guarantee was given to National Westminster Bank Plc by the company and it's fellow group companies, dated 21 October 2014 against the company and group's combined bank facilities.
Lockwood Haulage Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 23 -
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
604,271
831,574
Between two and five years
2,437,882
2,389,882
In over five years
3,140,509
3,783,980
6,182,662
7,005,436
23
Parent company
The ultimate parent company is Lockwood Holdings Limited, incorporated in England and Wales.
Their registered office address is Lockwood Group, Ripley Road, Sawmills, Ambergate, Derbyshire, DE56 2JR.
The largest and smallest group in which the results of the company are consolidated is that headed by Lockwood Holdings Limited, incorporated in England and Wales. The consolidated accounts of this company are available to the public and may be obtained from Companies House. No other group accounts include the results of the company.
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