Company Registration No. SC124530 (Scotland)
TRANSPAN (SCOTLAND) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
TRANSPAN (SCOTLAND) LIMITED
COMPANY INFORMATION
Directors
G J Baxter
C J Baxter
G G Baxter
R J Baxter
W D McTavish
Secretary
LC Secretaries Limited
Company number
SC124530
Registered office
Markethill Road
TURRIFF
AB53 4PA
Auditor
Johnston Carmichael LLP
Strathlossie House
Elgin Business Park
1 Kirkhill Avenue
Elgin
IV30 8DE
TRANSPAN (SCOTLAND) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 22
TRANSPAN (SCOTLAND) 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

The principal activity of the company is the haulage of raw materials and finished products. The primary customer of the business is intra Group. Third party sales accounts for 25% of the business. There has been no significant change in the principal activities during the year under review nor do the directors expect there to be in the next year.

The year to 30th June 2024 started out with UK inflation running at a high level, however, the CPI rate dropped progressively to a level of 2.0% by the end of the financial year. Fuel costs softened in line with this through the year but overhead and payroll costs increased significantly year on year.

In keeping with recent years, maintaining a strong Balance Sheet with steady cash flows was the main focus with good processes and controls in place to manage supply and costs of raw materials as well as robust cost control across all overheads. Capital investment decisions follow tight return on investment protocols to further ensure that focus on cash flow.

Wage cost inflation continued at high levels with the National Minimum Wage increases having a greater impact across the workforce than in previous years. The post COVID world has seen a churn of people across many businesses and the business has not been immune to this with attrition rising moderately year on year.

We continued to invest in development and training for employees. The health and wellbeing of our employees is important and a more strategic health & safety approach has been taken to ensure they have a safe working environment now and in the future.

The Group continue to invest in improving processes in an effort to allow the business to become leaner, more efficient and allow better control of overhead costs.

Our fleet continue to perform well and are well invested.

As shown in the profit and loss account on page 10, sales have increased by £272k over the previous year to £11.6m. Profits before tax have reduced by £343k to £12k.

As always, the outlook for agriculture is difficult to predict. As a business we continue to see lots of opportunities. The board of directors have defined strategies across all revenue streams with a clear direction to focusing on core activities.

Our employees are central to the success of the Group. The company continues to invest in training and support to all employees to ensure they have the skills required to perform their duties and to provide an excellent service to our customers.

Principal Risks and Mitigation

Our business is subject to a variety of risks and uncertainties. The following risks are regarded as the most significant to Transpan at this time:

i) Inflation & Interest Rates – rising costs

The UK is coming out of a period of high inflation and higher Bank of England base rates.

Given our debt is at historically low levels, Transpan do little in the way of interest rate hedging given the impact of rising interest rates is clearly understood and adequately budgeted for.

 

 

TRANSPAN (SCOTLAND) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

There is close monitoring of costs across raw materials, overheads and people. This is mitigated against by a close focus on efficiencies, work scheduling and investment in technologies and energy efficient plant and machinery.

iii) IT and cyber security

The company relies on the IT infrastructure it has in place to support the business. Any failure or cyber-attack on this infrastructure could impact the effective operation of the business.

The company has a strong IT support team and work very closely with all software suppliers and consultants to ensure appropriate security levels are in place. There is an investment programme in place ensuring the business is following best security practices including awareness training for employees.

iv) People

Recruitment, development and retention of key people is crucial to the success of the company.

The board work closely with senior management and HR to ensure the development of our people is at the forefront of our strategic discussions. The Harbro Group have a people strategy that is worked in conjunction with our business strategies.

Future developments

Strategic Planning has always been seen as crucial within the Harbro Group. As the business continues to grow, the strategy direction of the Group and its various business streams becomes even more important. The Board recognise the importance of ensuring our people understand and support the strategy; and all revenue stream strategies have been cascaded through the business.

Key performance indicators

The business monitors business performance by means of a variety of key performance indicators at a company and divisional level. These KPI’s are reported monthly at board and operational meetings. Profitability is measured by looking at a number of measures versus business plan e.g. EBITDA, gross margin and pre-tax profits. The balance sheet is measured by looking at a variety of KPI’s including Debtor Days, Creditor Days, Stock Turnover and Bank covenants.

 

2024

2023

Change

Profitability KPI’s

 

 

 

EBITDA (£’000)

493

732

(239)

Gross Margin

8.4%

10.8%

(2.4%)

Pre-Tax Profit (£’000)

12

355

(343)

 

 

 

 

Balance Sheet KPI’s

 

 

 

Debtor days

24

20

(4)

Creditor days

34

34

0

 

 

 

TRANSPAN (SCOTLAND) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

On behalf of the board

R J Baxter
Director
27 March 2025
TRANSPAN (SCOTLAND) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

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

Principal activities

The company's principal activities during the year was of haulage contractors.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. 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:

G J Baxter
C J Baxter
G G Baxter
R J Baxter
W D McTavish
Auditor

In accordance with the company's articles, a resolution proposing that Johnston Carmichael LLP be reappointed as auditor of the company will be put at a General Meeting.

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
R J Baxter
Director
27 March 2025
TRANSPAN (SCOTLAND) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

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.

TRANSPAN (SCOTLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRANSPAN (SCOTLAND) LIMITED
- 6 -
Opinion

We have audited the financial statements of Transpan (Scotland) Limited (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, balance sheet, 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 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:

 

TRANSPAN (SCOTLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRANSPAN (SCOTLAND) LIMITED
- 7 -
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 and the Directors' Report.

 

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

 

Responsibilities of directors

As explained more fully in the Directors’ responsibilities statement set out on page 5, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

 

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

TRANSPAN (SCOTLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRANSPAN (SCOTLAND) LIMITED
- 8 -

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management. We corroborated these enquiries through our review of board meeting minutes.

 

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

    

 

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

 

TRANSPAN (SCOTLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRANSPAN (SCOTLAND) LIMITED
- 9 -

Use of 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.

Fiona Munro (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
27 March 2025
Statutory Auditor
Strathlossie House
Elgin Business Park
1 Kirkhill Avenue
Elgin
IV30 8DE
TRANSPAN (SCOTLAND) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£000
£000
Turnover
2
11,580
11,308
Cost of sales
(10,606)
(10,085)
Gross profit
974
1,223
Administrative expenses
(956)
(871)
Other operating income
40
33
Operating profit
3
58
385
Interest payable and similar expenses
6
(46)
(30)
Profit before taxation
12
355
Tax on profit
7
(23)
(79)
(Loss)/profit for the financial year
(11)
276

The income statement has been prepared on the basis that all operations are continuing operations.

TRANSPAN (SCOTLAND) LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
8
2,087
1,616
Current assets
Stocks
9
25
25
Debtors
10
7,278
5,001
Cash at bank and in hand
108
125
7,411
5,151
Creditors: amounts falling due within one year
11
(7,845)
(5,435)
Net current liabilities
(434)
(284)
Total assets less current liabilities
1,653
1,332
Creditors: amounts falling due after more than one year
12
(534)
(399)
Provisions for liabilities
Deferred tax liability
14
380
183
(380)
(183)
Net assets
739
750
Capital and reserves
Called up share capital
16
150
150
Profit and loss reserves
589
600
Total equity
739
750
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:
R J Baxter
Director
Company Registration No. SC124530
TRANSPAN (SCOTLAND) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Profit and loss reserves
Total
£000
£000
£000
Balance at 1 July 2022
150
324
474
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
276
276
Balance at 30 June 2023
150
600
750
Year ended 30 June 2024:
Loss and total comprehensive income for the year
-
(11)
(11)
Balance at 30 June 2024
150
589
739
TRANSPAN (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information

Transpan (Scotland) Limited is a private company limited by shares incorporated in Scotland. The registered office is Markethill, TURRIFF, AB53 4PA.

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 £000.

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 The Harbro Group Limited. These consolidated financial statements are available from its registered office, Markethill, Turriff, AB53 4PA. .

1.2
Going concern

Atruet 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.

The company made a profit before tax during the year of £12k (2023 - £276K) and had a net current liability position at the year end of £434k (2023 - £284k) which includes an intercompany creditor of £6.3 million. The directors of The Harbro Group Ltd., the parent company, have confirmed that the group will continue to provide any required support to the company and accordingly the directors have prepared the accounts on the going concern basis.

1.3
Turnover

Turnover represents amounts receivable for haulage services net of VAT and trade discounts. Turnover is recognised at the point of completion of delivery.

1.4
Tangible fixed assets

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

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

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

Tenants' improvements
- over 20 years
Plant and machinery
- over 5 to 20 years
Fixtures, fittings & equipment
- over 2 to 10 years
Motor vehicles
- 15% to 25% 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 the profit and loss account.

1.5
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible 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).

1.6
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.

1.7
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with the banks.

1.8
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

Impairment of financial assets

Financial assets 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.

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.

TRANSPAN (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
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 and loans from fellow group companies 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 receipts discounted at a market rate of interest.

 

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

TRANSPAN (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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

1.12
Retirement benefits

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

1.13
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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

2
Turnover and other revenue

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

2024
2023
£000
£000
Turnover analysed by class of business
Haulage
11,580
11,308
2024
2023
£000
£000
Turnover analysed by geographical market
United Kingdom
11,580
11,308
TRANSPAN (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£000
£000
Depreciation of owned tangible fixed assets
187
161
Depreciation of tangible fixed assets held under finance leases
248
186
Profit on disposal of tangible fixed assets
(21)
(1)
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the company
11
8
5
Employees

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

2024
2023
Number
Number
Total
66
64

Their aggregate remuneration comprised:

2024
2023
£000
£000
Wages and salaries
2,764
2,660
Social security costs
300
298
Pension costs
46
42
3,110
3,000
6
Interest payable and similar expenses
2024
2023
£000
£000
Interest on bank overdrafts and loans
-
6
Interest on finance leases and hire purchase contracts
46
24
46
30
7
Taxation
2024
2023
£000
£000
Current tax
Group tax relief
(174)
-
0
TRANSPAN (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Taxation
2024
2023
£000
£000
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
178
79
Adjustment in respect of prior periods
19
-
0
Total deferred tax
197
79
Total tax charge
23
79

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
£000
£000
Profit before taxation
12
355
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
3
73
Adjustments in respect of prior years
19
-
0
Group Relief Surrendered
174
9
Fixed asset differences
1
(18)
Remeasurement of deferred tax for changes in tax rates
-
0
15
Receipt for Group Relief
(174)
-
0
Taxation charge for the year
23
79

A change in the UK Corporation tax rate to 25% took effect from 1 April 2023. This change has had a consequential effect on the group and company's tax charge with the standard rate of tax in the current year reflective of 25% and the prior year a marginal rate arising from the group and company's period straddling the 19% and 25% tax rates.

TRANSPAN (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
8
Tangible fixed assets
Tenants' improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£000
£000
£000
£000
£000
Cost
At 1 July 2023
58
69
27
3,996
4,150
Additions
-
0
52
51
906
1,009
Disposals
-
0
(29)
-
0
(760)
(789)
At 30 June 2024
58
92
78
4,142
4,370
Depreciation and impairment
At 1 July 2023
28
57
27
2,422
2,534
Depreciation charged in the year
5
4
2
424
435
Eliminated in respect of disposals
-
0
(29)
-
0
(657)
(686)
At 30 June 2024
33
32
29
2,189
2,283
Carrying amount
At 30 June 2024
25
60
49
1,953
2,087
At 30 June 2023
30
12
-
0
1,574
1,616

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
£000
£000
Motor vehicles
1,519
975
9
Stocks
2024
2023
£000
£000
Raw materials and consumables
25
25
10
Debtors
2024
2023
Amounts falling due within one year:
£000
£000
Trade debtors
767
604
Amounts owed by group undertakings
6,390
4,133
Other debtors
1
59
Prepayments and accrued income
120
205
7,278
5,001
TRANSPAN (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
11
Creditors: amounts falling due within one year
2024
2023
Notes
£000
£000
Obligations under finance leases
13
382
246
Trade creditors
974
943
Amounts owed to group undertakings
6,308
4,028
Taxation and social security
70
73
Other creditors
13
10
Accruals and deferred income
98
135
7,845
5,435

Net obligations under hire purchase contracts amounting to £382k (2023 - £246k) are secured over the assets which the agreements relate to.

12
Creditors: amounts falling due after more than one year
2024
2023
Notes
£000
£000
Obligations under finance leases
13
534
399

Net obligations under hire purchase contracts amounting to £534k (2023 - £399k) are secured over the assets which the agreements relate to.

13
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£000
£000
Within one year
382
246
In two to five years
534
399
916
645

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

14
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:
£000
£000
Accelerated capital allowances
380
183
TRANSPAN (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
14
Deferred taxation
(Continued)
- 21 -
2024
Movements in the year:
£000
Liability at 1 July 2023
183
Charge to profit or loss
197
Liability at 30 June 2024
380
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
46
42

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.

16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of £1 each
150,000
150,000
150
150
17
Financial commitments, guarantees and contingent liabilities

The company has provided its bankers with a cross guarantee in respect of borrowings due by other group companies.

18
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
£000
£000
Within one year
934
485
Between two and five years
1,736
506
2,670
991
TRANSPAN (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
19
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£000
£000
Acquisition of tangible fixed assets
570
588
20
Ultimate controlling party

The ultimate holding company is The Harbro Group Ltd., a company registered in Scotland, which owns 100% of the issued ordinary share capital of Transpan (Scotland) Limited. A copy of the group financial statements can be obtained from the company's registered office.

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