Company registration number 07444226 (England and Wales)
CBW RESOURCES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
CBW RESOURCES LIMITED
COMPANY INFORMATION
Directors
Mr P R Andrews
Mr D M Mucci
Mr M A Jones
Mr S M Trainor
Mr C A Brown
(Appointed 19 July 2023)
Mr P Mountford
(Appointed 19 July 2023)
Secretary
Higgs Secretarial Limited
Company number
07444226
Registered office
Allen Ford
Tachbrook Park Drive
Warwick
Warwickshire
CV34 6SY
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Business address
Amco Park
Acanthus Road
North Moons Moat
Redditch
Worcestershire
United Kingdom
B98 9EX
CBW RESOURCES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
CBW RESOURCES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Review of business

During the year CBW Resources Limited increased its business and continued to innovate in terms of IT infrastructure as well as expand and solidify its offering by continuing to build upon the Joint venture in Poland. CBW’s preparation and drive for Brexit has meant that they have become a partner to many blue chip or major manufacturing businesses that has meant we are not just a supplier but a support network to existing or new customers.

We, the directors, are pleased to report that CBW Resources Limited have been able to trade profitably, and the balance sheet shows a strengthened net asset position of £4,925,568 (2023: £4,839,960).

Principal risks and uncertainties

Price risk

The company continually seeks competitive and reliable suppliers and prefer to work towards partnerships that are mutually beneficial supporting longevity and success as seen with the JV in Poland. The company will continue with this approach and will create links where strategically situated. We credit risk all our customers through a verification procedure with insurance in place to protect the company as best possible. Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

 

Liquidity risk

The company manages its cash and borrowing requirements to maximise interest income and minimise interest expense, whilst ensuring that the company has sufficient liquid resources to meet the operating needs of the business and uses a Cash Conversion Cycle KPI metric which we review on a regular basis.

Future developments

The company expects to continue to support their current customers in-line with agreed contracts and expand its portfolio and sector coverage.

We will continue to identify and develop our supply chains and business partners to ensure we are constantly enhancing and expanding our service offerings, whilst maintaining the best value for our customers.

The company continues to deliver to exceptionally high standards and its these high standards that has meant in the coming year new contracts have already been awarded with tender nominations in the latter stages on the horizon. We have heavily invested in our employees both existing and new in training and coaching as well as recruitment at the top level to ensure a continuation of their growth without harming the basic fundamentals of the business.

CBW is committed to its ‘Green Strategy’ with many of the vehicles already being installed with solar panels and our head office and bonded warehouse facility being prepared for solar panel installation, and this was further evident in our recruitment of a Group Environmental Officer during the year.

We have a suite of Operational and Financial Key Performance indicators used within the company which include the monitoring of the management profitability and working capital.

CBW RESOURCES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Key performance indicators

The key performance indicators which the director targets are sales growth, operating profit as a percentage of sales and return on capital employed.

2024
2023
- Sales increase/(reduction)
(21.40%)
11.91%
- Operating profit/(loss) as a percentage of sales
1.54%
4.42%
- Return on capital employed
11.91%
50.38%

On behalf of the board

Mr D M Mucci
Director
3 March 2025
CBW RESOURCES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company in the year under review was an international logistics company comprising warehousing, transport, international freight and value added activities.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £243,016. 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 P R Andrews
Mr D M Mucci
Mr M A Jones
Mr S M Trainor
Mr C A Brown
(Appointed 19 July 2023)
Mr P Mountford
(Appointed 19 July 2023)
Auditor

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

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.

CBW RESOURCES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Statement of disclosure to auditor

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

On behalf of the board
Mr D M Mucci
Mr S M Trainor
Director
Director
3 March 2025
CBW RESOURCES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CBW RESOURCES LIMITED
- 5 -
Opinion

We have audited the financial statements of CBW Resources Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

CBW RESOURCES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CBW RESOURCES LIMITED
- 6 -
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.

 

Based on our understanding of the company, we identified the principal risks of non-compliance with laws and regulations including those that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, and the extent to which non-compliance might have a material effect on the financial statements. Audit procedures performed included discussions with management, review of board meeting minutes, testing of journals, designing and performing audit procedures and challenging assumptions and judgements made by management in relation to accounting estimates.

 

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

A further description of our responsibilities 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.

CBW RESOURCES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CBW RESOURCES LIMITED
- 7 -

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.

Colm McGrory FCA
Senior Statutory Auditor
For and on behalf of Ormerod Rutter Limited
4 March 2025
Chartered Accountants
Statutory Auditor
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
CBW RESOURCES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
Year
Period
ended
ended
30 June
30 June
2024
2023
Notes
£
£
Turnover
3
49,354,316
62,793,259
Cost of sales
(40,073,361)
(53,678,585)
Gross profit
9,280,955
9,114,674
Administrative expenses
(9,064,786)
(6,819,165)
Other operating income
542,630
478,389
Operating profit
4
758,799
2,773,898
Interest payable and similar expenses
7
(72,947)
(25,244)
Profit before taxation
685,852
2,748,654
Tax on profit
8
(357,228)
(561,268)
Profit for the financial year
328,624
2,187,386

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

CBW RESOURCES LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
3,667
-
0
Tangible assets
11
1,599,110
933,001
Investments
12
1,140
1,140
1,603,917
934,141
Current assets
Debtors
14
15,153,578
16,446,744
Cash at bank and in hand
888,599
2,628,581
16,042,177
19,075,325
Creditors: amounts falling due within one year
15
(11,276,316)
(14,504,024)
Net current assets
4,765,861
4,571,301
Total assets less current liabilities
6,369,778
5,505,442
Creditors: amounts falling due after more than one year
16
(739,113)
(358,225)
Provisions for liabilities
Provisions
18
376,000
304,000
Deferred tax liability
20
329,097
3,257
(705,097)
(307,257)
Net assets
4,925,568
4,839,960
Capital and reserves
Called up share capital
22
300
300
Profit and loss reserves
4,925,268
4,839,660
Total equity
4,925,568
4,839,960

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 3 March 2025 and are signed on its behalf by:
Mr D M Mucci
Mr S M Trainor
Director
Director
Company registration number 07444226 (England and Wales)
CBW RESOURCES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
300
2,652,274
2,652,574
Period ended 30 June 2023:
Profit and total comprehensive income
-
2,187,386
2,187,386
Balance at 30 June 2023
300
4,839,660
4,839,960
Year ended 30 June 2024:
Profit and total comprehensive income
-
328,624
328,624
Dividends
9
-
(243,016)
(243,016)
Balance at 30 June 2024
300
4,925,268
4,925,568
CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information

CBW Resources Limited is a private company limited by shares incorporated in England and Wales. The registered office is Allen Ford, Tachbrook Park Drive, Warwick, Warwickshire, CV34 6SY. The principal place of business is Amco Park, Acanthus Road, North Moons Moat, Redditch, Worcestershire, United Kingdom, B98 9EX.

1.1
Reporting period

The financial statements cover the 12 month period to 30 June 2024. The comparatives cover the 9 month period to 30 June 2023 therefore comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

 

The comparative period year end was shortened to 30 June 2023 to align with new parent undertakings.

1.2
Accounting convention

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

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

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of CBW Group Holdings Limited. These consolidated financial statements are available from its registered office, Allen Ford, Tachbrook Park Drive,Warwick, United Kingdom, CV34 6SY.

1.3
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.true

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
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:

Software
1 year straight line
1.6
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% on cost
Plant and machinery
33% on cost
Fixtures, fittings & equipment
33% on cost
Computer equipment
33% on cost
Motor vehicles
33% on cost, 20% on cost
1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.8
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.

1.9
Cash and cash equivalents

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

1.10
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.

CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.11
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.

1.12
Derivatives

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

 

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

1.13
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.

1.14
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.15
Employee benefits

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

1.16
Retirement benefits

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

1.17
Leases

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

 

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

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

1.18
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Sale of services
49,354,316
62,793,259
CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Other revenue
Management fees
689,240
455,230
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
56,248
81,189
Fees payable to the company's auditor for the audit of the company's financial statements
58,300
15,000
Depreciation of owned tangible fixed assets
500,122
309,872
Profit on disposal of tangible fixed assets
(19,327)
-
Amortisation of intangible assets
333
-
Operating lease charges
1,791,207
1,274,481
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
58,300
15,000
6
Employees

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

2024
2023
Number
Number
212
199

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
6,942,932
4,962,450
Social security costs
545,390
488,621
Pension costs
222,206
166,572
7,710,528
5,617,643
CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
27,674
624
Interest on finance leases and hire purchase contracts
45,273
24,620
72,947
25,244
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
31,388
561,268
Deferred tax
Origination and reversal of timing differences
325,840
-
0
Total tax charge
357,228
561,268

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
685,852
2,748,654
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
171,463
522,244
Tax effect of expenses that are not deductible in determining taxable profit
11,228
26,709
Change in unrecognised deferred tax assets
(5,098)
-
0
Group relief
-
0
(1,401)
Permanent capital allowances in excess of depreciation
-
0
(39,738)
Deferred tax adjustments in respect of prior years
179,635
-
0
Tax at marginal rate
-
0
53,454
Taxation charge for the year
357,228
561,268
9
Dividends
2024
2023
£
£
Final paid
243,016
-
0
CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
10
Intangible fixed assets
Software
£
Cost
At 1 July 2023
30,409
Additions
4,000
At 30 June 2024
34,409
Amortisation and impairment
At 1 July 2023
30,409
Amortisation charged for the year
333
At 30 June 2024
30,742
Carrying amount
At 30 June 2024
3,667
At 30 June 2023
-
0
11
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
318,386
302,076
209,399
87,528
655,982
1,573,371
Additions
47,484
24,944
23,513
9,930
1,052,208
1,158,079
Disposals
-
0
-
0
-
0
-
0
(44,348)
(44,348)
At 30 June 2024
365,870
327,020
232,912
97,458
1,663,842
2,687,102
Depreciation and impairment
At 1 July 2023
49,082
93,069
85,673
54,127
358,419
640,370
Depreciation charged in the year
34,552
102,291
63,765
20,898
278,616
500,122
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(52,500)
(52,500)
At 30 June 2024
83,634
195,360
149,438
75,025
584,535
1,087,992
Carrying amount
At 30 June 2024
282,236
131,660
83,474
22,433
1,079,307
1,599,110
At 30 June 2023
269,304
209,007
123,726
33,401
297,563
933,001
CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Tangible fixed assets
(Continued)
- 20 -

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
99,018
176,375
Motor vehicles
859,464
234,342
958,482
410,717
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
1,140
1,140
13
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
AM-TRANS Logistyka Limited Liability Company
Dzialosza, 34C, 56-500, Poland
Ordinary
60.00
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
8,758,042
10,055,134
Corporation tax recoverable
249,115
-
0
Amounts owed by group undertakings
3,982,652
3,814,546
Other debtors
-
0
397,511
Prepayments and accrued income
2,163,769
2,179,553
15,153,578
16,446,744
CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
2,654,194
3,501,245
Obligations under finance leases
17
329,474
112,659
Trade creditors
3,436,893
3,487,398
Amounts owed to group undertakings
3,656,111
4,628,828
Corporation tax
-
0
384,271
Other taxation and social security
477,460
274,132
Other creditors
178,205
263,875
Accruals and deferred income
543,979
1,851,616
11,276,316
14,504,024

The company has a full title guarantee with Close Brothers. The entity whether in existence now or in the future has a fixed charge on the freehold and leasehold properties, all fixtures in or attached to the property, fixed plant and machinery and any other specified equipment.

16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
8,841
18,583
Obligations under finance leases
17
730,272
339,642
739,113
358,225
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
329,441
112,658
In two to five years
730,305
339,643
1,059,746
452,301

Finance lease payments represent rentals payable by the company for certain items of motor vehicles. 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Provisions for liabilities
2024
2023
£
£
Dilapidations
376,000
304,000
CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
18
Provisions for liabilities
(Continued)
- 22 -
Movements on provisions:
Dilapidations
£
At 1 July 2023
304,000
Additional provisions in the year
72,000
At 30 June 2024
376,000
19
Secured debts
The following secured debts are included within creditors:
2024
2023
£
£
Hire purchase contracts
1,059,746
452,301
Bank overdrafts
2,643,868
3,490,661
Bank loans
19,167
29,167
3,722,781
3,972,129
Hire purchase contracts are secured against the assets to which they relate.
Bank loans are secured by way of a fixed and floating charge over all assets of the company.
20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
329,097
3,257
2024
Movements in the year:
£
Liability at 1 July 2023
3,257
Charge to profit or loss
325,840
Liability at 30 June 2024
329,097
CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
222,206
166,572

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.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
231
231
231
231
Ordinary B of £1 each
69
69
69
69
300
300
300
300

Ordinary A shares hold full rights to receive notice, attend and vote at any general meeting of the company, and to receive dividend payments.

 

Ordinary B shares hold the rights to receive dividend payments but do not have any voting rights.

23
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
2,705,423
2,103,603
Between two and five years
6,103,973
5,919,436
In over five years
1,075,583
2,260,917
9,884,979
10,283,956
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
-
65,000
CBW RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
25
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchases
Purchases
2024
2023
£
£
Entities over which the entity has control, joint control or significant influence
3,726,943
2,604,218
26
Ultimate controlling party

The immediate parent undertaking at the balance sheet date was CBW Group Holdings Limited, a company registered in England and Wales. The registered office is Allen Ford, Tachbrook Park Drive, Warwick, United Kingdom, CV34 6SY.

 

SG International Holdings Limited were the ultimate controlling party by virtue of its controlling share in CBW Group Holdings Limited. The ultimate parent company of SG International Holdings Limited is Super Group Limited, a company incorporated in South Africa. The registered office is 27 Impala Road, Chislehurston, Sandton, 2196, Johannesburg, South Africa.

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