Company registration number 03774666 (England and Wales)
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
COMPANY INFORMATION
Directors
B P Mitchell
M Howe
E Bench
Company number
03774666
Registered office
Burnside
Hertford Road
Hatfield
Herts
AL9 5RB
Auditor
Mercer & Hole LLP
Silbury Court
420 Silbury Boulevard
Central Milton Keynes
MK9 2AF
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Business review
Trading for the year ended 30 June 2024 saw turnover increase slightly from £28.7m to £30.0m and gross profit increasing from £9.8m to £10.6m. Fluctuations are expected in the construction industry as the nature of the business is mostly cyclical, however, as with many businesses the cost of materials increased in the year along with plant running costs, both impacting on margins.
The company continued its policy to replace key plant and vehicles on a 3-4 year cycle, helping to ensure reliability.
Principal risks and uncertainties
The principal risks and uncertainties that face the business are as follows:
Cash flow risk
The company prides itself on its treatment of creditors and manages its cash on a daily basis. The nature of the industry is such that cash receipts from customers are often received after supplier payments are due. The company therefore uses its banking facilities to ensure the smooth relationship with its creditors.
Regulatory risk
The company is required to comply with legislation regarding waste management, hazardous waste and landfill, The company is fully conversant with best practice when complying with industrial and commercial demolition, clearance of multi-storey town centre developments and bulk excavations.
Fleet management
The company is proud to take care of its own vehicles and equipment using its own facilities thereby keeping the business running smoothly. In addition, the company has a policy to regularly replace all vehicles and plant.
Key performance indicators
The key performance indicators monitored by the director are revenue and gross profit margin. The annualised key performance indicators were as follows:
Revenue £30,034,650 (2023: £28,732,817)
Gross profit margin 38.4% (2023: 34.1%)
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Financial Risk Management Objectives and Policies
The company uses hire purchase agreements and various items that arise directly from its operations such as trade debtors and trade creditors. The existence of these financial instruments exposes the company to a number of financial risks, as follows:
Interest risk
The company finances its operations through a mixture of cash and bank borrowings. The company manages its exposure to interest rate fluctuations through the use of fixed rate facilities.
Liquidity risk
The company seeks to ensure sufficient liquidity is available to meet day to day operations and future developments. Hire purchase arrangements are used to provide short term debt finance flexibility.
Credit risk
The company's main financial assets are cash and trade debtors. In order to manage credit risk , credit limits are set for customers based on carrying out independent credit checks, credit agency and third party references, and after history of trading has been built up, payment history is then also monitored. Debt ageing, collection history along with credit limits are reviewed on a regular basis.
B P Mitchell
Director
27 March 2025
B. P. MITCHELL HAULAGE CONTRACTORS 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 that of haulage contractors.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £4,000,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
B P Mitchell
M Howe
E Bench
Post reporting date events
On 19 February 2025, the company declared a dividend of £4,000,000.
Auditor
The auditor, Mercer & Hole LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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
B P Mitchell
Director
27 March 2025
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; 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.
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
- 5 -
Opinion
We have audited the financial statements of B. P. Mitchell Haulage Contractors 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, 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 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF B. P. MITCHELL HAULAGE CONTRACTORS LIMITED (CONTINUED)
- 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Explanation as to what extent the audit was considered capable of detecting irregularities,including fraud
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches under hazardous waste, driver competence and working hours and we considered the extent to which non-compliance may have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act and tax legislation.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principle risks were related to posting inappropriate entries including journals to understate revenue or overstate expenditure, and management bias in accounting estimates.
Audit procedures performed by the engagement team included:
discussions with management, including considerations of known or suspected instances of non-compliance with laws and regulations and fraud;
evaluation of the operating effectiveness of management's controls designed to prevent and detect irregularities;
challenging assumptions and judgements made by management in its significant accounting estimates;
identifying and testing journal entries.
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF B. P. MITCHELL HAULAGE CONTRACTORS LIMITED (CONTINUED)
- 7 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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 member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Paul Maberly FCA (Senior Statutory Auditor)
For and on behalf of Mercer & Hole LLP, Statutory Auditor
Chartered Accountants
Silbury Court
420 Silbury Boulevard
Central Milton Keynes
MK9 2AF
27 March 2025
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
30,034,650
28,732,817
Cost of sales
(18,495,649)
(18,919,906)
Gross profit
11,539,001
9,812,911
Administrative expenses
(6,074,169)
(4,188,486)
Other operating income
38,835
Operating profit
4
5,464,832
5,663,260
Interest receivable and similar income
8
254,333
80,994
Profit before taxation
5,719,165
5,744,254
Tax on profit
9
(1,479,088)
(1,250,527)
Profit for the financial year
4,240,077
4,493,727
The profit and loss account has been prepared on the basis that all operations are continuing operations.
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
1
1
Tangible assets
12
28,550,207
25,121,890
28,550,208
25,121,891
Current assets
Stocks
13
963,117
965,050
Debtors
14
11,224,701
12,912,689
Cash at bank and in hand
11,705,577
7,434,013
23,893,395
21,311,752
Creditors: amounts falling due within one year
15
(8,427,492)
(3,344,035)
Net current assets
15,465,903
17,967,717
Total assets less current liabilities
44,016,111
43,089,608
Creditors: amounts falling due after more than one year
16
(780,000)
(1,040,000)
Provisions for liabilities
Deferred tax liability
17
3,008,401
2,061,975
(3,008,401)
(2,061,975)
Net assets
40,227,710
39,987,633
Capital and reserves
Called up share capital
19
10,000
10,000
Revaluation reserve
20
437,133
437,133
Capital redemption reserve
20
10,000
10,000
Profit and loss reserves
20
39,770,577
39,530,500
Total equity
40,227,710
39,987,633
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 27 March 2025 and are signed on its behalf by:
B P Mitchell
Director
Company registration number 03774666 (England and Wales)
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
10,000
437,133
10,000
36,536,773
36,993,906
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
-
4,493,727
4,493,727
Dividends
10
-
-
-
(1,500,000)
(1,500,000)
Balance at 30 June 2023
10,000
437,133
10,000
39,530,500
39,987,633
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
4,240,077
4,240,077
Dividends
10
-
-
-
(4,000,000)
(4,000,000)
Balance at 30 June 2024
10,000
437,133
10,000
39,770,577
40,227,710
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
13,443,203
5,495,077
Income taxes refunded/(paid)
859,996
(645,000)
Net cash inflow from operating activities
14,303,199
4,850,077
Investing activities
Purchase of business
(2,700,000)
Purchase of tangible fixed assets
(6,545,810)
(4,965,750)
Proceeds from disposal of tangible fixed assets
259,842
1,169,414
Interest received
254,333
80,994
Net cash used in investing activities
(6,031,635)
(6,415,342)
Financing activities
Payment of finance leases obligations
(1,406,889)
Dividends paid
(4,000,000)
Net cash used in financing activities
(4,000,000)
(1,406,889)
Net increase/(decrease) in cash and cash equivalents
4,271,564
(2,972,154)
Cash and cash equivalents at beginning of year
7,434,013
10,406,167
Cash and cash equivalents at end of year
11,705,577
7,434,013
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information
B. P. Mitchell Haulage Contractors Limited is a private company limited by shares incorporated in England and Wales. The registered office is Burnside, Hertford Road, Hatfield, Herts, AL9 5RB.
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, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
1.2
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. In making this assessment, the directors have considered trading levels since the year end. The directors have prepared detailed forecasts which show that the company will remain profitable and be able to meet it's liabilities as they fall due.true
Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for the provision of site clearance and demolition services and for the sale of haulage plant and machinery provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of plant and machinery 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.
Revenue from contracts for the provision of site clearance and demolition services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
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:
Freehold land and buildings
The freehold land is not depreciated. 10% depreciation on freehold building
Plant and machinery
20% straight line
Office furniture and Computer equipment
Over 3 years
Motor vehicles
15% reducing balance
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.
The director has taken advantage of the exemptions in FRS 102 paragraph 35.10, to include previous revaluation of freehold property as deemed cost.
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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
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.
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 and loans from fellow group companies 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
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.
Depreciation and estimating useful economic lives
The company depreciates tangible fixed assets over their estimated economic useful lives, to the estimated residual value. The useful lives are estimated by reference to historic performance as well as expectations about future use. Residual values are estimated based on what the company would expect to receive for the asset, where possible by reference to an external market price.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Haulage, plant hire & general sales
30,034,650
28,732,817
2024
2023
£
£
Other revenue
Interest income
254,333
80,994
All revenue derives from activities in the United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
2,953,050
2,304,422
Profit on disposal of tangible fixed assets
(95,399)
(126,746)
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
24,500
23,000
For other services
Taxation compliance services
11,450
9,575
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
16
10
Drivers and others
43
51
Total
59
61
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,126,934
3,185,682
Social security costs
345,514
368,662
Pension costs
76,012
77,809
3,548,460
3,632,153
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
659,601
663,031
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
520,000
530,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
246,959
65,476
Other interest income
7,374
15,518
Total income
254,333
80,994
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
8
Interest receivable and similar income
(Continued)
- 18 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
246,959
65,476
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
520,964
563,613
Adjustments in respect of prior periods
11,698
59,996
Total current tax
532,662
623,609
Deferred tax
Origination and reversal of timing differences
946,426
626,918
Total tax charge
1,479,088
1,250,527
An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on 10 June 2021.The increase in the rate will apply to companies with profits over £250k.
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
5,719,165
5,744,254
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
1,429,791
1,177,572
Tax effect of expenses that are not deductible in determining taxable profit
4,209
39,843
Adjustments in respect of prior years
11,698
59,996
Effect of change in corporation tax rate
96,764
Permanent capital allowances in excess of depreciation
(160,253)
Depreciation on assets not qualifying for tax allowances
33,390
36,605
Taxation charge for the year
1,479,088
1,250,527
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
10
Dividends
2024
2023
£
£
Interim paid
4,000,000
1,500,000
11
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
1
Amortisation and impairment
At 1 July 2023 and 30 June 2024
Carrying amount
At 30 June 2024
1
At 30 June 2023
1
12
Tangible fixed assets
Freehold land and buildings
Assets under construction
Plant and machinery
Office furniture and Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
14,378,442
2,200,796
11,068,779
127,776
8,756,454
36,532,247
Additions
232,847
351,071
3,496,660
59,573
2,405,659
6,545,810
Disposals
(238,479)
(252,114)
(490,593)
Transfers
(1,527,900)
1,527,900
At 30 June 2024
14,611,289
1,023,967
14,326,960
187,349
12,437,899
42,587,464
Depreciation and impairment
At 1 July 2023
1,108,429
6,603,493
37,835
3,660,600
11,410,357
Depreciation charged in the year
136,911
1,612,698
35,608
1,167,833
2,953,050
Eliminated in respect of disposals
(204,198)
(121,952)
(326,150)
At 30 June 2024
1,245,340
8,011,993
73,443
4,706,481
14,037,257
Carrying amount
At 30 June 2024
13,365,949
1,023,967
6,314,967
113,906
7,731,418
28,550,207
At 30 June 2023
13,270,013
2,200,796
4,465,286
89,941
5,095,854
25,121,890
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Tangible fixed assets
(Continued)
- 20 -
Included in freehold land and buildings is land with a value of £3,125,119 (2023 : £3,125,119) which is not depreciated. Buildings are depreciated down to a point where the residual value is greater than the carrying value.
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
963,117
965,050
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
7,588,040
8,444,925
Corporation tax recoverable
372,851
1,765,509
Other debtors
582,485
1,070,798
Prepayments and accrued income
2,681,325
1,631,457
11,224,701
12,912,689
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
3,102,053
1,236,399
Taxation and social security
85,331
66,616
Other creditors
3,470,771
1,143,388
Accruals and deferred income
1,769,337
897,632
8,427,492
3,344,035
16
Creditors: amounts falling due after more than one year
2024
2023
£
£
Deferred consideration
780,000
1,040,000
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
3,008,401
2,061,975
2024
Movements in the year:
£
Liability at 1 July 2023
2,061,975
Charge to profit or loss
946,426
Liability at 30 June 2024
3,008,401
The deferred tax liability in respect of accelerated capital allowances set out above is expected to reverse over the lifetime of the associated assets and will not fully reverse within the next 12 months. The deferred tax liability in respect of revaluations will only reverse in the event the realisation of the revaluation gain on disposal of the associated assets.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
76,012
77,809
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
20
Reserves
Revaluation reserve
This reserve represents the historic revaluation of land and buildings. On transition to FRS 102 the company opted to treat the revalued cost of land and building as deemed cost. Under company law revaluation gains are not realised profits to be distributed. Therefore, this reserve has been maintained as a non-distributable reserve to facilitate this.
Capital redemption reserve
This reserve records the nominal value of shares repurchased by the company.
Profit and loss reserves
This reserve includes all current and prior period retained profits and losses.
21
Financial commitments, guarantees and contingent liabilities
The company's bankers have a fixed and floating charge over the company's assets.
22
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
1,275,000
956,250
Between two and five years
350,000
1,943,750
1,625,000
2,900,000
23
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
536,400
24
Events after the reporting date
On 19 February 2025, the company declared a dividend of £4,000,000.
25
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
25
Related party transactions
(Continued)
- 23 -
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Key management personnel
3,210,770
883,388
The following amounts were outstanding at the reporting end date:
2024
2024
2024
Balance
Provision
Net
Amounts due from related parties
£
£
£
Other related parties
705,983
510,841
195,142
2023
2023
2023
Balance
Provision
Net
Amounts due in previous period
£
£
£
Other related parties
816,137
598,300
217,837
The following amounts were recognised as an expense in the period in respect of bad and doubtful debts due from related parties:
26
Directors' transactions
Dividends totalling £4,000,000 (2023 - £1,500,000) were paid in the year in respect of shares held by the company's directors.
27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
4,240,077
4,493,727
Adjustments for:
Taxation charged
1,479,088
1,250,527
Investment income
(254,333)
(80,994)
Gain on disposal of tangible fixed assets
(95,399)
(126,746)
Depreciation and impairment of tangible fixed assets
2,953,050
2,304,422
Decrease in provisions
-
(1,300,000)
Movements in working capital:
Decrease/(increase) in stocks
1,933
(231,714)
Decrease/(increase) in debtors
295,330
(1,322,345)
Increase in creditors
4,823,457
508,200
Cash generated from operations
13,443,203
5,495,077
B. P. MITCHELL HAULAGE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
28
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
7,434,013
4,271,564
11,705,577
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