Company registration number 13347745 (England and Wales)
MOVUS LOGISTICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MOVUS LOGISTICS LIMITED
COMPANY INFORMATION
Director
M. Dincer
Company number
13347745
Registered office
Unit A-B-C
Monro Industrial Estate
Waltham Cross
London
EN8 7LX
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
MOVUS LOGISTICS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
MOVUS LOGISTICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The director presents the strategic report for the year ended 31 December 2023.
Principal activities
The principal activity of the company was that of providing warehouse logistics and storage facilities.
Review of the business
For the UK logistics sector, 2023 was a year that brought new challenges, with the industry facing a number of headwinds over the past 12 months including a recession, global geopolitical volatility, new trade processes and changing climate conditions.
The company's turnover slightly decreased from £14.7m in 2022 to £14.3m in 2023. Gross profit increased from £1.9m in 2022 to £2.6m in 2023.
Principal Risks and Uncertainties
From December 2022 to December 2023, there were notable decreases in principal fuel prices across modes. After increasing between 2021 and 2022, crude oil prices fell by 5.9% from $81.47 per barrel (bbl) to $76.66bbl in 2023. In 2023, global crude oil markets adapted to shifts in trade dynamics as Russian oil found new destinations beyond the EU. Despite OPEC+ supply curbs, global oil demand fell short of projections. However, crude oil prices fluctuated due to factors including an EU ban on Russian imports, central bank interest rate hikes and inflation concerns. Geopolitical tensions, particularly the Israel/Hamas conflict, prompted further price swings. Saudi Arabia extended production cuts through 2024, boosting prices temporarily. Attacks on Red Sea shipping vessels elevated prices further in December.
The current economic landscape is likely to influence demand for haulage, distribution and just-in-time deliveries. . We continue to manage and address the principal risks facing the company effectively:
Health & Safety Risk:
Routine internal and external audits are conducted and reported to the Senior Management team to ensure the safety of our employees and operations.
Food Safety Risk:
We maintain a vigilant approach to food safety by conducting regular internal and external audits to mitigate potential risks.
Credit Risk:
Credit risk is primarily managed by assessing the creditworthiness of new customers and adjusting credit exposure for existing customers based on payment performance. The lockdown has impacted the creditworthiness of some customers.
Liquidity Risk:
The company regularly reviews its cash flow position and ensures sufficient facilities are available for future use. We have also introduced alternative funding sources to support our continuous growth.
MOVUS LOGISTICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Development and Performance
For international transportation, the reliability of bulk or semi-bulk transportation, as well as links to ports and intermodal, remained unchanged from 2022 to 2023. However, there has been a decrease in the reliability of the road network in recent years. In the fiscal year 2022/23, a total of £5,937.8 million was spent on road maintenance across the UK.
Despite the challenges posed by the ongoing cost-of-living crisis , Movus remained profitable. However, these factors have significantly impacted our business activities. The post-Brexit environment has complicated logistics and trade, increasing transportation times and costs due to new regulations. Labour costs have surged as a result of wage increases, which has added to operational expenses. Competitive pressures have intensified, as rivals engage in price-cutting strategies to capture market share. The UK's economic recession has further compounded these challenges, leading to decreased consumer spending, particularly on non-essential goods. Global geopolitical instability, especially the war in Ukraine and unrest in the Middle East, has disrupted supply chains, increasing shipping costs and extending delivery times by over a month. Rising interest rates have also increased financing costs, placing further strain on businesses.
In year 2024, Movus UK lost the commercial agreement with Getir and needs to cover all the financial risks itself. The company has been working on establishing connections with other companies to ensure the warehouse returns to increased capacity.
Key performance Indicators
The director considers that the Company's key financial performance indicators are those that communicate its financial performance and strength as a whole and these are:
Other Key Performance Indicators
Movus holds fixed assets worth £2,506,445 and cash of £885,486 as end of the year 2023. This reflects a satisfactory position at the year-end, particularly considering the increased gross profits achieved this year.
M. Dincer
Director
31 January 2025
MOVUS LOGISTICS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The director presents his annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
M. Dincer
Statement of director's responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
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
M. Dincer
Director
31 January 2025
MOVUS LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOVUS LOGISTICS LIMITED
- 4 -
Opinion
We have audited the financial statements of Movus Logistics Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 director 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 director is 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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
MOVUS LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOVUS LOGISTICS LIMITED (CONTINUED)
- 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 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:
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 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.
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.
Extent to which the audit was considered captable 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 directors and other management, and from our commercial knowledge and experience of the distribution sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental 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.
MOVUS LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOVUS LOGISTICS LIMITED (CONTINUED)
- 6 -
Audit response to risks identified
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
reviewed a sample of transactions listed;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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 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.
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.
Nicholas Nicolaou FCCA (Senior Statutory Auditor)
For and on behalf of Alliotts LLP, Statutory Auditor
Chartered Accountants
Manfield House
1 Southampton Street
London
WC2R 0LR
31 January 2025
MOVUS LOGISTICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
14,272,805
14,741,568
Cost of sales
(11,627,216)
(12,818,655)
Gross profit
2,645,589
1,922,913
Administrative expenses
(2,171,614)
(1,605,060)
Operating profit
4
473,975
317,853
Interest receivable and similar income
6
84,953
Interest payable and similar expenses
7
(81,100)
(52,052)
Profit before taxation
477,828
265,801
Tax on profit
8
(181,417)
(72,607)
Profit for the financial year
296,411
193,194
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MOVUS LOGISTICS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
9
209,319
236,328
Tangible assets
10
2,506,445
2,755,704
2,715,764
2,992,032
Current assets
Debtors
11
4,901,078
4,616,340
Cash at bank and in hand
885,486
150,946
5,786,564
4,767,286
Creditors: amounts falling due within one year
12
(5,851,706)
(5,365,586)
Net current liabilities
(65,142)
(598,300)
Total assets less current liabilities
2,650,622
2,393,732
Provisions for liabilities
Deferred tax liability
13
263,194
302,715
(263,194)
(302,715)
Net assets
2,387,428
2,091,017
Capital and reserves
Called up share capital
15
1,750,000
1,750,000
Profit and loss reserves
637,428
341,017
Total equity
2,387,428
2,091,017
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 31 January 2025
M. Dincer
Director
Company registration number 13347745 (England and Wales)
MOVUS LOGISTICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1,750,000
147,823
1,897,823
Year ended 31 December 2022:
Profit and total comprehensive income
-
193,194
193,194
Balance at 31 December 2022
1,750,000
341,017
2,091,017
Year ended 31 December 2023:
Profit and total comprehensive income
-
296,411
296,411
Balance at 31 December 2023
1,750,000
637,428
2,387,428
MOVUS LOGISTICS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
1,086,993
1,240,672
Interest paid
(81,100)
(52,052)
Net cash inflow from operating activities
1,005,893
1,188,620
Investing activities
Purchase of tangible fixed assets
(356,306)
(1,547,650)
Interest received
84,953
Net cash used in investing activities
(271,353)
(1,547,650)
Net increase/(decrease) in cash and cash equivalents
734,540
(359,030)
Cash and cash equivalents at beginning of year
150,946
509,976
Cash and cash equivalents at end of year
885,486
150,946
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Movus Logistics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit A-B-C, Monro Industrial Estate, Waltham Cross, London, EN8 7LX.
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 been mainly providing services to a primary customer on a cost plus model. In the year 2024, the primary customer exited the UK market, posing a significant risk to the Company's going concern. To mitigate this, the Company has been expanding its customer base and receiving support from the group.
The ultimate parent company has confirmed they will provide continued financial support for at least 12 months from the date of signing the financial statements. The Company meets its day-to-day working capital requirements through trading facilities provided by its ultimate parent company.
The director believes that the Company can successfully manage its business risks and, after making relevant enquiries, the director has a reasonable expectation that the Company will have access to adequate resources to continue to trade for the foreseeable future and he believes it is appropriate to continue to adopt the going concern basis in preparing the annual report and accounts.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for the warehouse and logistics 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
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:
Capitalised Lease Costs
Over the life of the lease
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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
10% straight line
Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
Computers
25% 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
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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
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.
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.8
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, 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.
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors, and loans from 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
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
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.
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Receivables recovery
Judgement is required to determine whether there are indicators of impairment of the company’s receivable balances. Factors taken into consideration in reaching such a decision include the economic viability, indicators of financial stress and non compliance with payment terms.
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
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.
Fixed assets
Fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Warehouse and storage logistics
14,272,805
14,741,568
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
14,272,805
14,741,568
2023
2022
£
£
Other revenue
Interest income
84,953
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
4,754
11,048
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
18,000
Depreciation of owned tangible fixed assets
605,565
412,440
Amortisation of intangible assets
27,009
27,009
Operating lease charges
2,550,103
2,505,944
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
118
126
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
6,566,600
7,109,091
Social security costs
412,831
426,518
Pension costs
56,695
63,167
7,036,126
7,598,776
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
84,953
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
84,953
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
81,100
52,052
8
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
181,417
72,607
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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:
2023
2022
£
£
Profit before taxation
477,828
265,801
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
112,385
50,502
Tax effect of expenses that are not deductible in determining taxable profit
119,674
6,718
Tax effect of income not taxable in determining taxable profit
(4,212)
(2,039)
Deferred tax adjustments in respect of prior years
(46,430)
17,426
Taxation charge for the year
181,417
72,607
9
Intangible fixed assets
Capitalised Lease Costs
£
Cost
At 1 January 2023 and 31 December 2023
270,089
Amortisation and impairment
At 1 January 2023
33,761
Amortisation charged for the year
27,009
At 31 December 2023
60,770
Carrying amount
At 31 December 2023
209,319
At 31 December 2022
236,328
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
10
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2023
1,650,755
1,277,026
9,866
266,859
3,204,506
Additions
193,331
134,054
28,921
356,306
At 31 December 2023
1,844,086
1,411,080
9,866
295,780
3,560,812
Depreciation and impairment
At 1 January 2023
126,268
267,460
206
54,868
448,802
Depreciation charged in the year
181,626
348,955
2,466
72,518
605,565
At 31 December 2023
307,894
616,415
2,672
127,386
1,054,367
Carrying amount
At 31 December 2023
1,536,192
794,665
7,194
168,394
2,506,445
At 31 December 2022
1,524,487
1,009,566
9,660
211,991
2,755,704
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
142,353
218
Amounts owed by group undertakings
3,578,093
3,497,168
Other debtors
58,250
62,000
Prepayments and accrued income
555,962
269,596
4,334,658
3,828,982
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors - deposits
508,367
508,367
Deferred tax asset (note 13)
58,053
278,991
566,420
787,358
Total debtors
4,901,078
4,616,340
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,768,671
909,962
Amounts owed to group undertakings
2,225,252
2,643,026
Amounts owed to undertakings in which the company has a participating interest
81,944
Taxation and social security
428,778
516,575
Other creditors
12,931
15,891
Accruals and deferred income
1,416,074
1,198,188
5,851,706
5,365,586
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
263,194
302,715
-
-
Tax losses
-
-
58,053
278,991
263,194
302,715
58,053
278,991
2023
Movements in the year:
£
Liability at 1 January 2023
23,724
Charge to profit or loss
181,417
Liability at 31 December 2023
205,141
The deferred tax liability set out above is expected to reverse within 5 years and relates to accelerated capital allowances that are expected to mature within the same period.
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
56,695
63,167
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.
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
1,225,000
1,225,000
1,225,000
1,225,000
Ordinary B Shares of £1 each
525,000
525,000
525,000
525,000
1,750,000
1,750,000
1,750,000
1,750,000
Each class of shares ranks equally in respect of voting, dividends, and capital distribution rights but have different rights attached to the appointments of directors.
16
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:
2023
2022
£
£
Within one year
1,678,486
1,678,486
Between two and five years
6,483,660
6,483,660
In over five years
4,094,587
5,773,073
12,256,733
13,935,219
17
Events after the reporting date
The company was jointly controlled through a venture between Getir B.V., holding 70% of the shares, and Dincer Logistics A.S., holding 30%. However, on 7th October 2024, Getir B.V. sold its shares to Dincer Logistics A.S., making Dincer Logistics A.S. the sole owner of the company with 100% ownership.
Furthermore, intercompany loans which were payable to the Getir group have been formally waived as part of the ownership restructuring agreements.
18
Related party transactions
2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
2,225,252
2,372,880
Other related parties
-
352,090
The above is a loan of £2,225,252 owing to the immediate parent with interest charged at a rate of 3.5% due within 1 year.
MOVUS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Related party transactions
(Continued)
- 22 -
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Other related parties
3,578,093
3,497,168
19
Ultimate controlling party
Dincer Logistics A.S is the immediate parent and ultimate controlling company registered in the Turkey, with registered address Aydınevler, İnönü Cd. No:20, 34854 Maltepe/İstanbul, Türkiye.
20
Cash generated from operations
2023
2022
£
£
Profit after taxation
296,411
193,194
Adjustments for:
Taxation charged
181,417
72,607
Finance costs
81,100
52,052
Investment income
(84,953)
Amortisation and impairment of intangible assets
27,009
27,009
Depreciation and impairment of tangible fixed assets
605,565
412,440
Movements in working capital:
Increase in debtors
(505,676)
(2,461,770)
Increase in creditors
486,120
4,164,431
Decrease in deferred income
-
(1,219,291)
Cash generated from operations
1,086,993
1,240,672
21
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
150,946
734,540
885,486
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