Caseware UK (AP4) 2024.0.164 2024.0.164 2024-09-302024-09-30falsefalse2023-10-01Haulage contractors9293falsefalse 01324183 2023-10-01 2024-09-30 01324183 2022-10-01 2023-09-30 01324183 2024-09-30 01324183 2023-09-30 01324183 2022-10-01 01324183 1 2023-10-01 2024-09-30 01324183 1 2022-10-01 2023-09-30 01324183 4 2023-10-01 2024-09-30 01324183 4 2022-10-01 2023-09-30 01324183 d:CompanySecretary1 2023-10-01 2024-09-30 01324183 d:Director1 2023-10-01 2024-09-30 01324183 d:Director2 2023-10-01 2024-09-30 01324183 d:RegisteredOffice 2023-10-01 2024-09-30 01324183 d:Agent1 2023-10-01 2024-09-30 01324183 e:PlantMachinery 2023-10-01 2024-09-30 01324183 e:PlantMachinery 2024-09-30 01324183 e:PlantMachinery 2023-09-30 01324183 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 01324183 e:MotorVehicles 2023-10-01 2024-09-30 01324183 e:MotorVehicles 2024-09-30 01324183 e:MotorVehicles 2023-09-30 01324183 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 01324183 e:FurnitureFittings 2023-10-01 2024-09-30 01324183 e:FurnitureFittings 2024-09-30 01324183 e:FurnitureFittings 2023-09-30 01324183 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 01324183 e:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 01324183 e:CurrentFinancialInstruments 2024-09-30 01324183 e:CurrentFinancialInstruments 2023-09-30 01324183 e:Non-currentFinancialInstruments 2024-09-30 01324183 e:Non-currentFinancialInstruments 2023-09-30 01324183 e:CurrentFinancialInstruments e:WithinOneYear 2024-09-30 01324183 e:CurrentFinancialInstruments e:WithinOneYear 2023-09-30 01324183 e:Non-currentFinancialInstruments e:AfterOneYear 2024-09-30 01324183 e:Non-currentFinancialInstruments e:AfterOneYear 2023-09-30 01324183 f:UnitedKingdom 2023-10-01 2024-09-30 01324183 f:UnitedKingdom 2022-10-01 2023-09-30 01324183 f:RestEuropeOutsideUK 2023-10-01 2024-09-30 01324183 f:RestEuropeOutsideUK 2022-10-01 2023-09-30 01324183 e:UKTax 2023-10-01 2024-09-30 01324183 e:UKTax 2022-10-01 2023-09-30 01324183 e:ShareCapital 2023-10-01 2024-09-30 01324183 e:ShareCapital 2024-09-30 01324183 e:ShareCapital 2022-10-01 2023-09-30 01324183 e:ShareCapital 2023-09-30 01324183 e:ShareCapital 2022-10-01 01324183 e:RetainedEarningsAccumulatedLosses 2023-10-01 2024-09-30 01324183 e:RetainedEarningsAccumulatedLosses 2024-09-30 01324183 e:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 01324183 e:RetainedEarningsAccumulatedLosses 2023-09-30 01324183 e:RetainedEarningsAccumulatedLosses 2022-10-01 01324183 d:OrdinaryShareClass1 2023-10-01 2024-09-30 01324183 d:OrdinaryShareClass1 2024-09-30 01324183 d:OrdinaryShareClass1 2023-09-30 01324183 d:FRS102 2023-10-01 2024-09-30 01324183 d:Audited 2023-10-01 2024-09-30 01324183 d:FullAccounts 2023-10-01 2024-09-30 01324183 d:PrivateLimitedCompanyLtd 2023-10-01 2024-09-30 01324183 e:AcceleratedTaxDepreciationDeferredTax 2024-09-30 01324183 e:AcceleratedTaxDepreciationDeferredTax 2023-09-30 01324183 e:TaxLossesCarry-forwardsDeferredTax 2024-09-30 01324183 e:TaxLossesCarry-forwardsDeferredTax 2023-09-30 01324183 2 2023-10-01 2024-09-30 01324183 6 2023-10-01 2024-09-30 01324183 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2024-09-30 01324183 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2023-09-30 01324183 e:LeasedAssetsHeldAsLessee 2024-09-30 01324183 e:LeasedAssetsHeldAsLessee 2023-09-30 01324183 2 2024-09-30 01324183 2 2023-09-30 01324183 g:PoundSterling 2023-10-01 2024-09-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 01324183









K TRANSPORT SERVICES (MIDLANDS) LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
COMPANY INFORMATION


Directors
Andrew Neil Kay 
David Wayne Kay 




Company secretary
David Wayne Kay



Registered number
01324183



Registered office
Parkside Garage
Old Stafford Road

Slade Heath

Wolverhampton

West Midlands

WV10 7PH




Independent auditors
Lancaster  Clements Limited
Chartered Certified Accountants

Stanley House

27 Wellington Road

Bilston

West Midlands

WV14 6AH




Bankers
Barclays Bank Plc
Queen Square

Wolverhampton

West Midlands

WV1 1DS





 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 7
Statement of comprehensive income
 
8
Statement of financial position
 
9
Statement of changes in equity
 
10
Notes to the financial statements
 
11 - 24


 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Introduction
 
The principal activity of the company continues to be that of haulage contractors.

Business review
 
The business and the directors' continue to strive to be one of the market leaders in the haulage market and is consistently developing its business to actively broaden its client offering.
This year the business has seen an increase in turnover due to changes in the mix of customers. There has also been the continued global issues with rising costs, however due to effective management the company has managed to achieve and increased gross profit margin in the year.
The company continues to invest in its fleet to ensure they can offer a reliable and effective transport service to the customers.

Principal risks and uncertainties
 
The principal business risk is the volatile gross profit margin with unrealistic increase in wages and other costs impacting adversely on the competiveness of  the company and its principal customers. The directors manage these risks by strict control of costs, recruitment and retention of its employees.

Financial key performance indicators
 
The directors consider that both turnover and gross profit margins are key performance indicators of the buisness. There has been an increase in the turnover this year and also the gross profit margin has seen an increase this year. On a year to year basis turnover increased by 3.7% and gross profit margins have increased from 14.0% to 16.9%.

Other key performance indicators
 
There are no other key performance indicators.


This report was approved by the board on 27 March 2025 and signed on its behalf.



................................................
David Wayne Kay
Director

Page 1

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £193,713 (2023 - £190,346).

During the year no dividends have been declared..

Directors

The directors who served during the year were:

Andrew Neil Kay 
David Wayne Kay 

Future developments

There are no future developments requiring disclosure within the financial statements.

Financial instruments

The company only enters into transactions involving basic financial instruments that do not require disclosure within the financial statements.

Page 2

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There were no significant events affecting the Company at the date of signing of these accounts.

Auditors

The auditorsLancaster  Clements Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 27 March 2025 and signed on its behalf.
 





................................................
David Wayne Kay
Director

Page 3

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF K TRANSPORT SERVICES (MIDLANDS) LIMITED
 

Opinion


We have audited the financial statements of K Transport Services (Midlands) Limited (the 'Company') for the year ended 30 September 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 4

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF K TRANSPORT SERVICES (MIDLANDS) LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and 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.


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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.


Page 5

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF K TRANSPORT SERVICES (MIDLANDS) LIMITED (CONTINUED)


Auditors' 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 Auditors' 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulation.  We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
I
dentifying and assessing potential risks related to irregularities
We obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.  The key laws and regulations we considered in this context included the UK Companies Act, tax legislation and regulations relating to the employed workforce.
In assessing risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
- The clients evaluation of compliance with laws and regulations and whether they were aware of any instances of none compliance, along with the measures in place to mitigate any such instances.
- Methods in place to detect and respond to the risk of fraud and whether there was any actual, suspected or alleged fraud, along with internal controls established to mitigate such risks.
- Where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of those procedures we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential being in relation to:
- Stock pilferage or misappropriation
-  management override of controls
- Transactions outside the normal course of business, particularly with related parties.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:~
- Testing of material journal entries, paying particular attention to the period immediately prior to and following the reporting date.  
- Evaluation of the business rationale behind transactions made between related parties that are unusual or outside the normal course of business  
- An assessment of whether the judgements made in making accounting estimates are indicative of a potential bias
- Making enquiries of management concerning actual or potential litigation and claims
We have designed our procedures to best identify the likelihood or occurrence of irregularities, whether or not arising due to fraud.  However, it is accepted that there is an inherent difficulty in detecting irregularities and our
Page 6

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF K TRANSPORT SERVICES (MIDLANDS) LIMITED (CONTINUED)


findings are subject to the timing and extent of the audit procedures performed.
 


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


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 2006Our 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 Auditors' 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.





Mark Anthony Cupitt (Senior statutory auditor)
  
for and on behalf of
Lancaster  Clements Limited
 
Chartered Certified Accountants
  
Stanley House
27 Wellington Road
Bilston
West Midlands
WV14 6AH

27 March 2025
Page 7

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
8,381,292
8,080,780

Cost of sales
  
(6,961,444)
(6,947,162)

Gross profit
  
1,419,848
1,133,618

Administrative expenses
  
(990,315)
(929,138)

Other operating income
 5 
66,403
42,592

Operating profit
  
495,936
247,072

Interest receivable and similar income
 9 
10,006
710

Interest payable and similar expenses
 10 
(56,126)
(14,629)

Profit before tax
  
449,816
233,153

Tax on profit
 11 
(256,103)
(42,807)

Profit for the year
  
193,713
190,346

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 11 to 24 form part of these financial statements.

Page 8

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
REGISTERED NUMBER: 01324183

STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
3,823,690
3,104,912

Investments
 13 
82,500
82,500

  
3,906,190
3,187,412

Current assets
  

Stocks
 14 
56,400
58,015

Debtors: amounts falling due within one year
 15 
3,439,287
3,697,153

Cash at bank and in hand
 16 
3,745
3,910

  
3,499,432
3,759,078

Creditors: amounts falling due within one year
 17 
(2,214,840)
(2,381,257)

Net current assets
  
 
 
1,284,592
 
 
1,377,821

Total assets less current liabilities
  
5,190,782
4,565,233

Creditors: amounts falling due after more than one year
 18 
(616,420)
(440,688)

Provisions for liabilities
  

Deferred tax
 19 
(637,254)
(381,150)

  
 
 
(637,254)
 
 
(381,150)

Net assets
  
3,937,108
3,743,395


Capital and reserves
  

Called up share capital 
 20 
2
2

Profit and loss account
  
3,937,106
3,743,393

  
3,937,108
3,743,395


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 March 2025.



................................................
Andrew Neil Kay
Director

The notes on pages 11 to 24 form part of these financial statements.

Page 9

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 October 2022
2
3,553,047
3,553,049


Comprehensive income for the year

Profit for the year

-
190,346
190,346


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
190,346
190,346


Total transactions with owners
-
-
-



At 1 October 2023
2
3,743,393
3,743,395


Comprehensive income for the year

Profit for the year

-
193,713
193,713


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
193,713
193,713


Total transactions with owners
-
-
-


At 30 September 2024
2
3,937,106
3,937,108


The notes on pages 11 to 24 form part of these financial statements.

Page 10

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

The company is registered in England and Wales. Its registered office is Parkside Garage, Old Stafford Road, Slade Heath, Wolverhampton, West Midlands, WV10 7PH. The company's principal activity continues to be that of road freight transporters. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Financial reporting standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

The requirements of Section 7 Statement of Cash Flows.

This information is included in the consolidated financial statements of Kay Group Holdings Limited as at 30 September 2024 and these financial statements may be obtained from its registered office or directly from Companies House.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 11

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.4

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 12

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis.

Depreciation is provided on the following basis:

Plant and machinery
-
15% reducing balance
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
15% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 13

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.12

Valuation of investments

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

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.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections
Page 14

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of financial position 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 debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

To be able to prepare financial statements in accordance with FRS102, the Company must make certain estimates and judgments that have an impact on the policies and the amounts reported in the annual accounts. The estimates and judgments are based on historical experiences and other factors including expectations of future events that are believed to be reasonable at the time such estimates and judgments are made. Actual experience may vary from these estimates. The estimates and assumptions which have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are discussed below:
Depreciation and amortisation
The company accounts for depreciation and amortisation in accordance with FRS102. The depreciation and amortisation expense is the recognition of the decline in the value of the assets and allocation of the cost of the asset over the periods in which the asset will be used. Judgments are made on the estimated useful life of the assets which are regularly reviewed to reflect the changing environment.
Impairment of debtors
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Page 15

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

4.


Turnover

The whole of the turnover is attributable to the company's principal business activity.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
8,250,935
8,011,080

Rest of Europe
130,357
69,700

8,381,292
8,080,780



5.


Other operating income

2024
2023
£
£

Net rents receivable
19,926
19,840

Management charge
21,000
6,000

Sundry income
25,477
16,752

66,403
42,592



6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
9,000
7,500

Page 16

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
2,931,020
2,785,259

Social insurance costs
265,538
266,933

Cost of defined contribution scheme
64,302
67,388

3,260,860
3,119,580


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Drivers and workshop
75
74



Management
2
2



Administration
15
17

92
93


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
35,700
37,420

35,700
37,420



9.


Interest receivable

2024
2023
£
£


Other interest receivable
10,006
710

10,006
710

Page 17

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
11,072
6,521

Other loan interest payable
3,056
-

Finance leases and hire purchase contracts
41,998
8,108

56,126
14,629


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
-
(25,233)

Adjustments in respect of previous periods
(1)
(1)


(1)
(25,234)


Total current tax
(1)
(25,234)

Deferred tax


Origination and reversal of timing differences
256,104
68,041

Total deferred tax
256,104
68,041


256,103
42,807
Page 18

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
449,816
233,153


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
112,454
44,299

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
21,291
695

Utilisation of tax losses
119,503
-

Other differences leading to an increase (decrease) in the tax charge
2,855
(2,187)

Total tax charge for the year
256,103
42,807


Factors that may affect future tax charges

There were no factors that may affect future tax charges.



Page 19

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

12.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 October 2023
187,694
8,176,078
134,376
8,498,148


Additions
24,400
1,543,115
8,854
1,576,369


Disposals
-
(1,347,806)
-
(1,347,806)



At 30 September 2024

212,094
8,371,387
143,230
8,726,711



Depreciation


At 1 October 2023
148,126
5,117,453
127,657
5,393,236


Charge for the year on owned assets
8,433
674,857
-
683,290


Disposals
-
(1,173,505)
-
(1,173,505)



At 30 September 2024

156,559
4,618,805
127,657
4,903,021



Net book value



At 30 September 2024
55,535
3,752,582
15,573
3,823,690



At 30 September 2023
39,568
3,058,625
6,719
3,104,912

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
1,121,377
1,187,226

1,121,377
1,187,226

Page 20

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

13.


Fixed asset investments





Unlisted investments

£



Cost or valuation


At 1 October 2023
82,500



At 30 September 2024
82,500






Net book value



At 30 September 2024
82,500



At 30 September 2023
82,500


14.


Stocks

2024
2023
£
£

Raw materials and consumables
6,139
5,326

Finished goods and goods for resale
50,261
52,689

56,400
58,015



15.


Debtors

2024
2023
£
£


Trade debtors
1,698,597
1,612,907

Amounts owed by group undertakings
291,838
290,308

Other debtors
1,022,047
1,462,422

Prepayments and accrued income
426,805
331,516

3,439,287
3,697,153


Page 21

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
3,745
3,910

Less: bank overdrafts
(525,768)
(256,117)

(522,023)
(252,207)



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
525,768
256,117

Trade creditors
704,656
694,724

Other taxation and social security
265,552
132,193

Obligations under finance lease and hire purchase contracts
495,168
313,354

Other creditors
41,116
964,959

Accruals and deferred income
182,580
19,910

2,214,840
2,381,257


The following liabilities were secured:

2024
2023
£
£



Bank overdrafts
525,768
256,117

Obligations under finance lease and hire purchase contracts
495,168
313,354

1,020,936
569,471

Details of security provided:

The bank overdraft is secured by an unlimited guarantee given by A.S.K Developments Limited. The hire purchase liabilities are secured on the assets they relate to as per note 12 to the financial statements.

Page 22

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
616,420
440,688

616,420
440,688


The following liabilities were secured:

2024
2023
£
£



Net obligations under finance leases and hire purchase contracts
616,420
440,688

616,420
440,688

Details of security provided:

The hire purchase liabilities are secured on the assets they relate to as per note 12 to the financial statements


19.


Deferred taxation




2024
2023


£

£






At beginning of year
381,150
313,110


Charged to profit or loss
256,104
68,040



At end of year
637,254
381,150

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
920,941
381,150

Tax losses carried forward
(283,687)
-

637,254
381,150

Page 23

 
K TRANSPORT SERVICES (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2 (2023 - 2) ordinary shares of £1.00 each
2
2



21.


Related party transactions

At the Reporting date tthe following amounts were due (to) / from connected parties, in which the directors held a material interest.
Amounts due from connected parties:
Kay Properties (Midlands) Limited £1,006,130 (2023: £1,421,272)
Amounts due to connected parties:
K Investments Limited £NIL (2023: £10,596)
ASK Developments (Midlands) Limited £NIL (2023: £555,092)
Loans to connected parties are interest free and repayable on demand.


22.


Controlling party

The ultimate parent undertaking is Kay Group Holdings Limited, a company registered in England and Wales. Copies of the financial statements can be obtained from Parkside Garage, Old Stafford Road, Slade Heath, Wolverhampton, WV10 7PH.


23.


Limitation of Auditor's Liability

The company has entered into a liability limitation agreement, the principal terms being as follows:
Any liability is limited, pursuant to Section 537 of the Companies Act 2006, to no less than such amount as is considered fair and reasonable in each individual circumstance and to a maximum of ten times the level of the fee for the audit service being carried out.
The resolution approving this agreement is dated 3 February 2025.

 
Page 24