Company registration number 01119401 (England and Wales)
B. & T. HICKS (TRANSPORT) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
B. & T. HICKS (TRANSPORT) LIMITED
COMPANY INFORMATION
Directors
Mr B G Hicks
Mr T F Hicks
Mr R J Hicks
(Appointed 11 July 2023)
Mr S Hicks
(Appointed 11 July 2023)
Secretary
Mr B G Hicks
Company number
01119401
Registered office
Langland Road
Reevesland Industrial Estate
Newport
United Kingdom
NP19 4PT
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
Bankers
Lloyds TSB Bank Plc
42 Commercial Street
Newport
Gwent
South Wales
NP20 1WX
B. & T. HICKS (TRANSPORT) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
B. & T. HICKS (TRANSPORT) 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

The Directors are pleased with the results to 31 January 2024. Turnover appears consistent although higher fuel prices were experienced in the prior year so 2023 sales included a larger proportion of fuel escalator costs passed onto client. The margin increased as the diesel cost per litre dropped and the strategy to improve the ageing of the fleet meant that repair costs have reduced.

 

The company achieved a profit before tax of £696,918 (2023: £221,674) and a profit after tax of £521,056 (2023: £210,638).

Principal risks and uncertainties

The haulage sector remains very competitive, and the directors believe that the market will remain this way for the foreseeable future. The company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial instruments is monitored by the board of directors. The company's principal financial instruments comprise bank balances, bank overdrafts, stocking loan, trade creditors, trade debtors and loans to the company. The company does not use derivative financial instruments for speculative purposes.

 

Cash flow risk

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

 

Credit risk

The company's principal financial assets are bank balances and cash, trade and other receivables. The company's credit risk is primarily attributable to its trade and other receivables. The company manages credit risk in respect of trade debtors by regularly monitoring credit limits and balances outstanding. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

 

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term finance. The company manages the liquidity risk by monitoring working capital and ensuring there are sufficient funds to meet payments. The company manages the balance outstanding as part of its overall working capital management. The company obtains the majority of fixed assets through hire purchase contracts or finance lease agreements. Additionally, an invoice discounting facility is used which is secured on trade debtors.The board is cognisant of the company's working capital requirements and has concluded the facilities currently in place are appropriate to the size and complexity of operations.

 

Price risk

The company is exposed to commodity price risk, particularly oil prices. The company does not manage its exposure to commodity price risk due to lost benefit considerations.

On behalf of the board

Mr T F Hicks
Director
31 October 2024
B. & T. HICKS (TRANSPORT) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

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 hauliers.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £168,587. The directors do not recommend payment of a further 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 B G Hicks
Mr T F Hicks
Mr R J Hicks
(Appointed 11 July 2023)
Mr S Hicks
(Appointed 11 July 2023)
Future developments

The directors are confident that the financial and organisational structure of B. & T. Hicks (Transport) Limited is geared for sustainable business that gives excellent service to its customers.

Auditor

UHY Hacker Young have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.

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:

 

 

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

Statement of disclosure to auditor

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

B. & T. HICKS (TRANSPORT) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
Going concern

The company has net current liabilities of £680,599 (2023: £876,643). The company made a profit for the year of £521,056 (2022 £210,638).

 

The directors have concluded that the company will be able to meet its debts as they fall due for the foreseeable future and accordingly have concluded that it remains appropriate to adopt the going concern basis in the preparation of these financial statements. In arriving at the conclusion, the directors have prepared forecasts covering a period in excess of 12 months from the date of approval of these financial statements and confirmed that, as members, they would continue to support the business if necessary.

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 T F Hicks
Director
31 October 2024
B. & T. HICKS (TRANSPORT) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF B. & T. HICKS (TRANSPORT) LIMITED
- 4 -
Opinion

We have audited the financial statements of B. & T. Hicks (Transport) Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

B. & T. HICKS (TRANSPORT) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF B. & T. HICKS (TRANSPORT) LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

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.

 

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:

 

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:

B. & T. HICKS (TRANSPORT) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF B. & T. HICKS (TRANSPORT) LIMITED
- 6 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, 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 for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

Mr John Griffiths (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
31 October 2024
Chartered Accountants
Statutory Auditor
Newport
Gwent
United Kingdom
B. & T. HICKS (TRANSPORT) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
13,376,416
13,625,935
Cost of sales
(11,331,628)
(12,044,267)
Gross profit
2,044,788
1,581,668
Administrative expenses
(1,389,154)
(1,445,639)
Other operating income
4
271,058
260,959
Operating profit
5
926,692
396,988
Interest receivable and similar income
8
4,573
-
0
Interest payable and similar expenses
9
(234,347)
(175,314)
Profit before taxation
696,918
221,674
Tax on profit
10
(175,862)
(11,036)
Profit for the financial year
521,056
210,638
Retained earnings brought forward
2,040,217
2,009,579
Dividends
11
(168,587)
(180,000)
Retained earnings carried forward
2,392,686
2,040,217

The profit and loss account has been prepared on the basis that all operations are continuing operations.

B. & T. HICKS (TRANSPORT) LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
5,787,793
5,431,938
Current assets
Stocks
13
29,900
18,080
Debtors
14
2,205,668
2,326,531
Cash at bank and in hand
1,312
8,203
2,236,880
2,352,814
Creditors: amounts falling due within one year
15
(2,917,479)
(3,227,457)
Net current liabilities
(680,599)
(874,643)
Total assets less current liabilities
5,107,194
4,557,295
Creditors: amounts falling due after more than one year
16
(1,754,772)
(1,733,204)
Provisions for liabilities
Deferred tax liability
19
956,736
780,874
(956,736)
(780,874)
Net assets
2,395,686
2,043,217
Capital and reserves
Called up share capital
21
3,000
3,000
Profit and loss reserves
2,392,686
2,040,217
Total equity
2,395,686
2,043,217
The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
Mr T F Hicks
Director
Company Registration No. 01119401
B. & T. HICKS (TRANSPORT) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,751,883
1,456,802
Interest paid
(234,347)
(175,314)
Net cash inflow from operating activities
1,517,536
1,281,488
Investing activities
Purchase of tangible fixed assets
(602,495)
(49,038)
Proceeds from disposal of tangible fixed assets
40,000
104,500
Movement on director loans
(535)
28,556
Interest received
4,573
-
0
Net cash (used in)/generated from investing activities
(558,457)
84,018
Financing activities
Net advance/(repayment) of Invoice finance
(149,265)
42,176
Repayment of borrowings
(40,000)
(40,000)
Payment of finance leases obligations
(605,170)
(1,090,783)
Dividends paid
(168,587)
(180,000)
Net cash used in financing activities
(963,022)
(1,268,607)
Net (decrease)/increase in cash and cash equivalents
(3,943)
96,899
Cash and cash equivalents at beginning of year
(1,836)
(98,735)
Cash and cash equivalents at end of year
(5,779)
(1,836)
Relating to:
Cash at bank and in hand
1,312
8,203
Bank overdrafts included in creditors payable within one year
(7,091)
(10,039)
B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
1
Accounting policies
Company information

B. & T. Hicks (Transport) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Langland Road, Reevesland Industrial Estate, Newport, United Kingdom, NP19 4PT.

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

The company has net current liabilities of £680,599 (202true3: £874,643). The company made a profit for the year of £521,056 (2022 £210,638).

 

The directors have concluded that the company will be able to meet its debts as they fall due for the foreseeable future and accordingly have concluded that it remains appropriate to adopt the going concern basis in the preparation of these financial statements. In arriving at the conclusion, the directors have prepared forecasts covering a period in excess of 12 months from the date of approval of these financial statements and confirmed that, as members, they would continue to support the business if necessary.

1.3
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for services provided.

1.4
Tangible fixed assets

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

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

Land and buildings Freehold
2% on cost
Plant and machinery
15% on reducing balance
Fixtures, fittings & equipment
15% on reducing balance
Motor vehicles
10% on 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
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 11 -
1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

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.

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.

B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 12 -
Derecognition of financial liabilities

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

1.7
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.

1.8
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.

1.9
Retirement benefits

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

1.10
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.

B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Going concern

The company has net current liabilities of £680,599 (2023: £874,643). The company made a profit for the year of £521,056 (2022 £210,638).

 

The directors have concluded that the company will be able to meet its debts as they fall due for the foreseeable future and accordingly have concluded that it remains appropriate to adopt the going concern basis in the preparation of these financial statements. In arriving at the conclusion, the directors have prepared forecasts covering a period in excess of 12 months from the date of approval of these financial statements and confirmed that, as members, they would continue to support the business if necessary.

 

This assessment and conclusion is clearly a critical judgement.

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

The key uncertainties which require estimation and judgement by management are depreciation rates and asset impairment. Depreciation is a significant charge in the financial statements with the depreciation charge for the year being £760,297 (2023: £653,550) on assets with a net book value at year end of £5,787,793 (2023: £5,431,938). The judgement required in estimating the useful life of the company's assets poses some risk, however the current depreciation policies appropriately reflect the consumption of the assets concerned.

3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
4,573
-

The whole of the turnover is attributable to the principal activity of the company being the provision of haulage services and derived from the United Kingdom.

4
Other operating income

There was £271,058 (2023: £260,959) in other operating income earned during the year.

B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
5
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,400
7,000
Depreciation of owned tangible fixed assets
155,045
191,640
Depreciation of tangible fixed assets held under finance leases
605,252
461,910
Loss on disposal of tangible fixed assets
37,909
159,771
6
Employees

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

2024
2023
Number
Number
Haulage staff
93
93
Administrative staff
19
19
Management staff
5
6
Total
117
118

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,082,877
4,105,544
Social security costs
424,717
431,966
Pension costs
101,191
98,191
4,608,785
4,635,701
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
97,539
9,776
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
4,573
-
0
B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
94,147
70,909
Other finance costs:
Interest on finance leases and hire purchase contracts
140,200
104,405
234,347
175,314
10
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
175,862
11,036

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
696,918
221,674
Expected tax charge based on the standard rate of corporation tax in the UK of 24.00% (2023: 19.00%)
167,260
42,118
Tax effect of income not taxable in determining taxable profit
1,645
3,969
Permanent capital allowances in excess of depreciation
(81)
(46,354)
Depreciation on assets not qualifying for tax allowances
1,261
-
0
Losses carried forward
-
0
(9,361)
Effect of tax rate change on current year deferred tax
5,777
20,664
Taxation charge for the year
175,862
11,036
11
Dividends
2024
2023
£
£
Final paid
168,587
180,000
B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
12
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
271,886
260,227
143,617
10,887,148
11,562,878
Additions
25,613
6,479
5,190
1,156,779
1,194,061
Disposals
-
0
-
0
-
0
(201,998)
(201,998)
At 31 January 2024
297,499
266,706
148,807
11,841,929
12,554,941
Depreciation and impairment
At 1 February 2023
57,307
149,493
107,678
5,816,462
6,130,940
Depreciation charged in the year
5,538
17,754
6,613
730,392
760,297
Eliminated in respect of disposals
-
0
-
0
-
0
(124,089)
(124,089)
At 31 January 2024
62,845
167,247
114,291
6,422,765
6,767,148
Carrying amount
At 31 January 2024
234,654
99,459
34,516
5,419,164
5,787,793
At 31 January 2023
214,579
110,734
35,939
5,070,686
5,431,938

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 machinery
52,465
61,724
Motor vehicles
4,554,140
4,166,499
4,606,605
4,228,223
13
Stocks
2024
2023
£
£
Raw materials and consumables
29,900
18,080
B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,987,813
2,103,756
Other debtors
102,350
98,444
Prepayments and accrued income
115,505
124,331
2,205,668
2,326,531

Included within other debtors is amounts relating to directors loan account of £48,281 (2023: £47,746).

15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
7,091
10,039
Obligations under finance leases
17
811,963
887,134
Other borrowings
18
1,005,994
1,155,260
Trade creditors
437,588
477,548
Taxation and social security
412,312
318,064
Other creditors
191,141
209,487
Accruals and deferred income
51,390
169,925
2,917,479
3,227,457
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
1,698,938
1,637,371
Other borrowings
18
55,834
95,833
1,754,772
1,733,204
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
811,963
887,134
In two to five years
1,698,938
1,637,371
2,510,901
2,524,505
B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
17
Finance lease obligations
(Continued)
- 18 -

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years 8 months. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

The hire purchase and finance lease obligations are secured over the assets to which they relate.

 

18
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
7,091
10,039
Other borrowings
1,061,828
1,251,093
1,068,919
1,261,132
Payable within one year
1,013,085
1,165,299
Payable after one year
55,834
95,833

Bank loans and overdrafts are secured by way of a debenture dated 13 March 1997.

 

Other borrowings consists of £965,994 (2023: £1,115,260) relating to an invoice financing facility, with the liability being secured against the related trade debtor balance, as well as £95,834 (2023: £135,833) of other loans, being a bounce back loan and a Development Bank of Wales loan.

19
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
956,736
780,874
2024
Movements in the year:
£
Liability at 1 February 2023
780,874
Charge to profit or loss
175,862
Liability at 31 January 2024
956,736
B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
19
Deferred taxation
(Continued)
- 19 -

The deferred tax liability set out above is expected to reverse within the next few accounting periods and relates predominantly to accelerated capital allowances and carried forward tax losses that are expected to mature within the same period.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
101,191
98,191

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.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
1,200
1,200
1,200
1,200
Ordinary B of £1 each
1,200
1,200
1,200
1,200
Ordinary C of £1 each
600
600
600
600
3,000
3,000
3,000
3,000
22
Operating lease commitments

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
85,164
82,919
Between two and five years
389,172
144,717
474,336
227,636
23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
159,689
9,776
Other information
B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
23
Related party transactions
(Continued)
- 20 -

At the year end, a balance of £1,628 (2023 Owed To: £10,188) was owed by B.G. Hicks Limited and is included in other debtors. B.G. Hicks Limited is related as Mr B G Hicks and Mr T F Hicks have control over the entity.

 

At the year end, a balance of £12,941 (2023: £12,371) was owed from Parc Property Developments Limited and is included in debtors amounts falling due within one year. Parc Property Developments Limited is related as Mr T F Hicks has control over the entity.

 

At the year end, a balance of £14,362 (2023: £12,802) was owed from Parc Driving Range Limited and is included in debtors amounts falling due within one year. Parc Driving Range Limited is related as Mr C A Hicks, son of Mr T F Hicks, has control over the entity.

 

At the year end, a balance of £12,900 (2023: £12,900) was owed from Premier Golf (Newport) Limited and is included in debtors amounts falling due within one year. Premier Golf (Newport) Limited is related as Mr C A Hicks, son of Mr T F Hicks, has control over the entity.

24
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Description
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr B G Hicks -
23,873
75,267
(75,000)
24,140
Mr T F Hicks -
23,873
75,268
(75,000)
24,141
47,746
150,535
(150,000)
48,281
25
Analysis of changes in net debt
1 February 2023
Cash flows
New finance leases
31 January 2024
£
£
£
£
Cash at bank and in hand
8,203
(6,891)
-
1,312
Bank overdrafts
(10,039)
2,948
-
(7,091)
(1,836)
(3,943)
-
(5,779)
Borrowings excluding overdrafts
(1,251,093)
189,265
-
(1,061,828)
Obligations under finance leases
(2,524,505)
605,170
(591,566)
(2,510,901)
(3,777,434)
790,492
(591,566)
(3,578,508)
B. & T. HICKS (TRANSPORT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
521,056
210,638
Adjustments for:
Taxation charged
175,862
11,036
Finance costs
234,347
175,314
Investment income
(4,573)
-
0
Loss on disposal of tangible fixed assets
37,909
159,771
Depreciation and impairment of tangible fixed assets
760,297
653,550
Movements in working capital:
(Increase)/decrease in stocks
(11,820)
7,995
Decrease/(increase) in debtors
121,398
(322,250)
(Decrease)/increase in creditors
(82,593)
560,748
Cash generated from operations
1,751,883
1,456,802
27
Ultimate controlling party

The ultimate controlling parties are considered to be Mr B G Hicks and Mr T F Hicks by virtue of their joint 80% shareholding.

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