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Registration number: 04419456

Frenni Transport Limited

Annual Report and Financial Statements

for the Year Ended 31 May 2024

 

Frenni Transport Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 23

 

Frenni Transport Limited

Company Information

Directors

Mrs SE Passant

Mr MR Parry

Mr SF Parry

Company secretary

Mrs SE Passant

Registered office

Distribution Yard
Parc Gwynfryn
Crymych
SA41 3RQ

Auditors

LHP Auditors Ltd
Statutory Auditors
Llys Deri
Parc Pensarn
Carmarthen
SA31 2NF

 

Frenni Transport Limited

Strategic Report for the Year Ended 31 May 2024

The directors present their strategic report for the year ended 31 May 2024.

Principal activity

The principal activity of the company continued to be that of road transport and haulage services.

Fair review of the business

The results for the Company show a profit before tax of £148,062 (2023: £1,067,790) for the year and turnover of £8,046,898 (2023: £9,270,768). At year end the Company had net assets of £4,833,830 (2023: £4,797,741).

The company's strategy is to maintain a customer-focused approach. They have a team of experienced and qualified drivers, backed up by a team of personable customer services professionals and a common set of rules and performance goals to ensure a quality service from start to finish. The directors believe that this approach will help them achieve their long-term objectives and ensure the continued success of the business.

As highlighted in more detail in the risks and uncertainties section of the Strategic Report, the challenging market conditions continue to impact the business, however the directors are satisfied that the company continues to provide its customers with a market leading service. The company is well funded and financially robust, so the directors are confident the business is well placed to meet the challenges of the on-going economic climate and market conditions.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Gross profit

%

23

31

Other KPIs include transport KPIs such as transport cost per pallet and miles per gallon. However, the directors choose not to include the outcomes of these KPIs in the financial statements due to the commercial sensitivity of such KPIs.

Principal risks and uncertainties

The board have a detailed strategy for the identification, mitigation, management and removal of risk. Risk management is discussed at senior management meetings, and all necessary actions are taken to ensure the company actively manages each and every risk to the business.

Financial Risk
The company uses various financial instruments which include cash and other items such as trade debtors and trade creditors that arise directly from its operations. The main risk arising from the company's financial instruments are credit risk and liquidity risk. The directors review and agree policies for managing each of these risks.

Credit Risk
The company's principal financial assets are cash and trade debtors. The principal credit risk arises from its trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

Trading Risks
Fuel prices: From a trading perspective fuel continues to be a major cost to the business and as such, fluctuations in price can have a significant effect on trading performance. In order to mitigate this risk the company has implemented a set of wide ranging fuel price escalators within customer contracts.
 

 

Frenni Transport Limited

Strategic Report for the Year Ended 31 May 2024

Driver availability: The availability of sufficient skilled drivers continues to be a risk to the sector as a whole and it would seem likely that this will continue to be an issue for the foreseeable future. The company is confident however, that the measures they have put in place in terms of training and driver retention will be sufficient to mitigate this risk, enabling them to place less reliance on recruiting externally.

Information Technology
The company continues to rely heavily on its IT infrastructure to enable it to function efficiently. A continuing policy of appraisal and development ensures they keep pace with this ever changing environment. As a means to safeguard the integrity of their data they have systems in place to regularly update and back up all relevant information, and this is supported by external service providers.

The directors are very aware of the risks posed to the company from cyber-attacks, viruses and ransomware. In order to address this potentially damaging issue internal security protocols have been enhanced and all users of PCs, servers and laptops have been alerted to be ultra vigilant.

Government Legislation
The company operates under a variety of controls and regulations implemented by government bodies. These regulations set stringent operational standards and enhance the safety and environmental characteristics of the industry. Management ensures it has sufficient and robust procedures and controls in place to remain compliant with existing legislation, and to enable it to react quickly to implement any potential changes.

Approved and authorised by the Board on 21 February 2025 and signed on its behalf by:
 

.........................................
Mrs SE Passant
Company secretary and director

 

Frenni Transport Limited

Directors' Report for the Year Ended 31 May 2024

The directors present their report and the financial statements for the year ended 31 May 2024.

Directors of the company

The directors who held office during the year were as follows:

Mrs SE Passant - Company secretary and director

Mr MR Parry

Mr SF Parry

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of LHP Auditors Ltd as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved and authorised by the Board on 21 February 2025 and signed on its behalf by:

.........................................
Mrs SE Passant
Company secretary and director

 

Frenni Transport Limited

Independent Auditor's Report to the Members of Frenni Transport Limited

Opinion

We have audited the financial statements of Frenni Transport Limited (the 'company') for the year ended 31 May 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 May 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.

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 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 original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

Frenni Transport Limited

Independent Auditor's Report to the Members of Frenni Transport Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

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

adequate accounting records have not been kept, 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 directors' 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 [set out on page ], 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 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:

 

Frenni Transport Limited

Independent Auditor's Report to the Members of Frenni Transport Limited

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

Reviewing minutes of meetings of those charged with governance;

Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operation of the entity through enquiry and inspection;

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Frenni Transport Limited

Independent Auditor's Report to the Members of Frenni Transport Limited

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 M J Williams (Senior Statutory Auditor)
For and on behalf of LHP Auditors Ltd, Statutory Auditors
Llys Deri
Parc Pensarn
Carmarthen
SA31 2NF

27 February 2025

 

Frenni Transport Limited

Profit and Loss Account for the Year Ended 31 May 2024

Note

2024
£

2023
£

Turnover

3

8,046,898

9,270,768

Cost of sales

 

(6,170,573)

(6,397,764)

Gross profit

 

1,876,325

2,873,004

Administrative expenses

 

(1,764,709)

(1,801,347)

Other operating income

974

951

Operating profit

4

112,590

1,072,608

Other interest receivable and similar income

5

35,472

8,902

Interest payable and similar expenses

6

-

(13,720)

   

35,472

(4,818)

Profit before tax

 

148,062

1,067,790

Tax on profit

10

(21,973)

(300,601)

Profit for the financial year

 

126,089

767,189

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Frenni Transport Limited

Statement of Comprehensive Income for the Year Ended 31 May 2024

2024
£

2023
£

Profit for the year

126,089

767,189

Total comprehensive income for the year

126,089

767,189

 

Frenni Transport Limited

(Registration number: 04419456)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

11

2,109,429

2,082,887

Current assets

 

Stocks

12

18,320

24,000

Debtors

13

1,507,767

1,602,207

Cash at bank and in hand

 

2,307,183

2,444,251

 

3,833,270

4,070,458

Creditors: Amounts falling due within one year

14

(743,239)

(962,680)

Net current assets

 

3,090,031

3,107,778

Total assets less current liabilities

 

5,199,460

5,190,665

Provisions for liabilities

15

(365,630)

(392,924)

Net assets

 

4,833,830

4,797,741

Capital and reserves

 

Called up share capital

3

3

Retained earnings

4,833,827

4,797,738

Shareholders' funds

 

4,833,830

4,797,741

Approved and authorised by the Board on 21 February 2025 and signed on its behalf by:
 

.........................................
Mrs SE Passant
Company secretary and director

 

Frenni Transport Limited

Statement of Changes in Equity for the Year Ended 31 May 2024

Share capital
£

Retained earnings
£

Total
£

At 1 June 2023

3

4,797,738

4,797,741

Profit for the year

-

126,089

126,089

Dividends

-

(90,000)

(90,000)

At 31 May 2024

3

4,833,827

4,833,830

Share capital
£

Retained earnings
£

Total
£

At 1 June 2022

3

4,120,549

4,120,552

Profit for the year

-

767,189

767,189

Dividends

-

(90,000)

(90,000)

At 31 May 2023

3

4,797,738

4,797,741

 

Frenni Transport Limited

Statement of Cash Flows for the Year Ended 31 May 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

126,089

767,189

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

274,868

282,474

Loss on disposal of tangible assets

54,898

13,538

Finance income

5

(35,472)

(8,902)

Finance costs

6

-

13,720

Income tax expense

10

21,973

300,601

 

442,356

1,368,620

Working capital adjustments

 

Decrease in stocks

12

5,680

1,250

Decrease in trade debtors

13

94,440

30,749

(Decrease)/increase in trade creditors

14

(127,086)

124,212

Cash generated from operations

 

415,390

1,524,831

Income taxes paid

10

(141,622)

(264,128)

Net cash flow from operating activities

 

273,768

1,260,703

Cash flows from investing activities

 

Interest received

5

35,472

8,902

Acquisitions of tangible assets

(377,108)

(725,910)

Proceeds from sale of tangible assets

 

20,800

18,583

Net cash flows from investing activities

 

(320,836)

(698,425)

Cash flows from financing activities

 

Interest paid

6

-

(13,720)

Proceeds from bank borrowing draw downs

 

-

(81,623)

Payments to finance lease creditors

 

-

(161,646)

Dividends paid

18

(90,000)

(90,000)

Net cash flows from financing activities

 

(90,000)

(346,989)

Net (decrease)/increase in cash and cash equivalents

 

(137,068)

215,289

Cash and cash equivalents at 1 June

 

2,444,251

2,228,962

Cash and cash equivalents at 31 May

 

2,307,183

2,444,251

 

Frenni Transport Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Distribution Yard
Parc Gwynfryn
Crymych
SA41 3RQ

These financial statements were authorised for issue by the Board on 21 February 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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 £.

Going concern

At 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.

 

Frenni Transport Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

2

Accounting policies (continued)

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..

Revenue recognition

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business which is the provision of transport services, 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.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Frenni Transport Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

2

Accounting policies (continued)

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

2% straight line

Leasehold land and buildings

2% straight line

Plant and equipment

15% on a reducing balance basis

Fixtures and fittings

15% on a reducing balance basis

Computers

25% on a reducing balance basis

Motor vehicles

15% on a reducing balance basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods comprises fuel and vehicle parts. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Frenni Transport Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

2

Accounting policies (continued)

Leases

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

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

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's Turnover for the year by class of business is as follows:

2024
£

2023
£

Transport services (all generated in the UK)

8,046,898

9,270,768

 

Frenni Transport Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Other operating income

(974)

(951)

Depreciation expense

274,868

282,474

Operating lease expense - plant and machinery

46,860

31,999

Operating lease expense - other

110,009

133,213

Loss on disposal of property, plant and equipment

54,898

13,538

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

35,472

8,902

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

-

1,332

Interest on obligations under finance leases and hire purchase contracts

-

12,388

-

13,720

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

2,707,157

2,865,636

Social security costs

253,257

-

Pension costs, defined contribution scheme

406,115

293,606

3,366,529

3,159,242

 

Frenni Transport Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

7

Staff costs (continued)

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Management

6

6

Admin

15

15

Support - fitters

8

8

Drivers

54

49

83

78

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

38,160

30,832

Contributions paid to money purchase schemes

339,240

240,000

377,400

270,832

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

3

3

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

7,500

6,500


 

 

Frenni Transport Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

49,267

128,356

UK corporation tax adjustment to prior periods

-

(342)

49,267

128,014

Deferred taxation

Arising from origination and reversal of timing differences

(27,294)

69,580

Arising from changes in tax rates and laws

-

103,007

Total deferred taxation

(27,294)

172,587

Tax expense in the income statement

21,973

300,601

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 20%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

148,062

1,067,790

Corporation tax at standard rate

37,016

213,558

Tax increase/(decrease) from effect of capital allowances and depreciation

12,101

(88,818)

Effect of expense not deductible in determining taxable profit (tax loss)

150

3,274

Deferred tax (credit)/expense from unrecognised tax loss or credit

(27,294)

69,580

Deferred tax expense relating to changes in tax rates or laws

-

103,007

Total tax charge

21,973

300,601

Deferred tax

2024
Liability
£

2023
Liability
£

Accelerated tax depreciation

365,630

392,924

365,630

392,924

 

Frenni Transport Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

11

Tangible assets

Land and buildings
£

Long leasehold land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 June 2023

416,572

266,691

1,007

632,182

7,755

1,983,991

3,308,198

Additions

-

103,000

-

107,823

2,835

163,450

377,108

Disposals

-

-

-

-

-

(178,150)

(178,150)

At 31 May 2024

416,572

369,691

1,007

740,005

10,590

1,969,291

3,507,156

Depreciation

At 1 June 2023

99,976

41,474

150

253,160

1,940

828,611

1,225,311

Charge for the year

8,331

6,507

129

73,031

2,068

184,802

274,868

Eliminated on disposal

-

-

-

-

-

(102,452)

(102,452)

At 31 May 2024

108,307

47,981

279

326,191

4,008

910,961

1,397,727

Carrying amount

At 31 May 2024

308,265

321,710

728

413,814

6,582

1,058,330

2,109,429

At 31 May 2023

316,596

225,217

857

379,022

5,815

1,155,380

2,082,887

 

Frenni Transport Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

12

Stocks

2024
£

2023
£

Raw materials and consumables

18,320

24,000

13

Debtors

Current

2024
£

2023
£

Trade debtors

1,441,578

1,563,269

Accrued income

66,189

38,938

 

1,507,767

1,602,207

14

Creditors

Note

2024
£

2023
£

Due within one year

 

Trade creditors

 

393,023

480,674

Amounts due to related parties

19

77

10,717

Social security and other taxes

 

268,501

225,856

Outstanding defined contribution pension costs

 

3,598

-

Other payables

 

31,790

6,150

Accruals

 

10,250

110,928

Corporation tax liability

10

36,000

128,355

 

743,239

962,680

15

Provisions for liabilities

Deferred tax
£

Total
£

At 1 June 2023

392,924

392,924

Increase (decrease) in existing provisions

(27,294)

(27,294)

At 31 May 2024

365,630

365,630

 

Frenni Transport Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £406,115 (2023 - £293,606).

Contributions totalling £3,598 (2023 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

17

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

3

3

3

3

       

18

Dividends

2024

2023

£

£

Interim dividend of £30,000 (2023 - £30,000) per ordinary share

90,000

90,000

 

 

19

Related party transactions

Key management personnel

The Company rents the trading premises known as Frenni Transport Yard from the directors/shareholders. During the year the charge to the profit and loss account was £14,625 (2023 - £18,000).

As at the balance sheet date, the company owed the directors £77 (2023: £10,717). The loan is interest free and repayable on demand.