Company Registration No. 04445903 (England and Wales)
DR & FA FORD TRANSPORT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
DR & FA FORD TRANSPORT LIMITED
COMPANY INFORMATION
Directors
Mr D R Ford
Mrs F A Ford
Secretary
Mr D R Ford
Company number
04445903
Registered office
Unit E6
Wem Industrial Estate
Soulton Road
Wem
Shropshire
SY4 5SD
Auditor
James Holyoak & Parker Limited
1 Knights Court
Archers Way
Battlefield Enterprise Park
Shrewsbury
SY1 3GA
DR & FA FORD TRANSPORT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
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 - 27
DR & FA FORD TRANSPORT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
Review of the business
The 2023/24 trading year was again very successful, with an increase in turnover of 3.4%. Fuel prices have fallen compared to the previous year, therefore less fuel surcharges have been invoiced to customers. Turnover, excluding fuel surcharges invoiced in both years, has increased by £659k. The two largest customers have seen a further increase in turnover compared to 2022/23 of a combined £1.3m.
Gross profit margin has decreased from 16.11% in 2023 to 15.63% in 2024. Operating profit has increased by 15.1% to £693,729 mainly due to a reduction in legal and professional fees, bad debts, depreciation and profit on sale of assets compared to 2022/23.
The net assets of the company have increased by £25,009 to £4,820,795, and net current assets are £1,078,558, a £32,788 increase on the prior year. This demonstrates that the company remains in a strong and liquid financial position.
Principal risks and uncertainties
The directors continue to monitor the key business risks faced by the company and are satisfied with the current position. Their approach critically includes regular review of KPIs coupled with detailed financial forecasting. The company also seeks to ensure that all of its employees are properly trained and fully equipped to perform their duties as members of the company's workforce.
Part of the company's turnover relies on the agricultural sector. The current unpredictable wet weather and market conditions make this area more risky and hard to predict. The company has diversified its customer base and is increasing work done for the retail food sector to spread risk.
Key performance indicators
Key performance indicators are turnover and gross profit margin.
As mentioned above turnover, excluding fuel surcharges, has increased by £659k compared to 2023. This shows that the increase in turnover is due to an increase in work done, rather than additional invoicing to cover fuel costs.
Gross profit margin has fallen to 15.6% (2023: 16.1%), which is still considered a good margin for the business.
Mr D R Ford
Director
2 April 2025
DR & FA FORD TRANSPORT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the company is the provision of road haulage and logistics services.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £302,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D R Ford
Mrs F A Ford
Future developments
The business continues to operate as usual, no specific developments recognised that impact future trading.
Auditor
James Holyoak & Parker Limited were appointed auditor to the company and are 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
Mr D R Ford
Director
2 April 2025
DR & FA FORD TRANSPORT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
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;
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.
DR & FA FORD TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DR & FA FORD TRANSPORT LIMITED
- 4 -
Opinion
We have audited the financial statements of DR & FA Ford Transport Limited (the 'company') for the year ended 31 October 2024 which comprise the profit and loss account, 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 31 October 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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.
DR & FA FORD TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DR & FA FORD TRANSPORT LIMITED
- 5 -
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.
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.
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, DVLA compliance, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was a susceptibility to fraud. Based on our understanding, our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
DR & FA FORD TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DR & FA FORD TRANSPORT LIMITED
- 6 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Robert Humphreys BEng FCA (Senior Statutory Auditor)
for and on behalf of James Holyoak & Parker Limited
3 April 2025
Chartered Accountants
Statutory Auditor
1 Knights Court
Archers Way
Battlefield Enterprise Park
Shrewsbury
SY1 3GA
DR & FA FORD TRANSPORT LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
14,833,463
14,349,756
Cost of sales
(12,515,080)
(12,037,977)
Gross profit
2,318,383
2,311,779
Administrative expenses
(1,632,454)
(1,717,058)
Other operating income
7,800
7,800
Operating profit
4
693,729
602,521
Interest receivable and similar income
7
4,779
Interest payable and similar expenses
8
(96,375)
(119,440)
Gain on revaluation of investment property
9
40,000
-
Profit before taxation
642,133
483,081
Tax on profit
11
(188,874)
(99,594)
Profit for the financial year
453,259
383,487
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DR & FA FORD TRANSPORT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
£
£
Profit for the year
453,259
383,487
Other comprehensive income
Tax relating to other comprehensive income
(126,250)
Total comprehensive income for the year
327,009
383,487
DR & FA FORD TRANSPORT LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
5,749,642
5,731,159
Investment property
14
240,000
200,000
5,989,642
5,931,159
Current assets
Stocks
15
88,640
88,640
Debtors
16
3,017,575
2,804,158
Cash at bank and in hand
568,544
1,226,532
3,674,759
4,119,330
Creditors: amounts falling due within one year
17
(2,596,201)
(3,073,560)
Net current assets
1,078,558
1,045,770
Total assets less current liabilities
7,068,200
6,976,929
Creditors: amounts falling due after more than one year
18
(1,189,693)
(1,438,555)
Provisions for liabilities
Deferred tax liability
20
1,057,712
742,588
(1,057,712)
(742,588)
Net assets
4,820,795
4,795,786
Capital and reserves
Called up share capital
23
1,000
1,000
Revaluation reserve
415,340
541,590
Profit and loss reserves
4,404,455
4,253,196
Total equity
4,820,795
4,795,786
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 2 April 2025 and are signed on its behalf by:
Mr D R Ford
Mrs F A Ford
Director
Director
Company registration number 04445903 (England and Wales)
DR & FA FORD TRANSPORT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
1,000
541,590
4,146,709
4,689,299
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
383,487
383,487
Dividends
10
-
-
(277,000)
(277,000)
Balance at 31 October 2023
1,000
541,590
4,253,196
4,795,786
Year ended 31 October 2024:
Profit
-
-
453,259
453,259
Other comprehensive income:
Tax relating to other comprehensive income
-
(126,250)
(126,250)
Total comprehensive income
-
(126,250)
453,259
327,009
Dividends
10
-
-
(302,000)
(302,000)
Balance at 31 October 2024
1,000
415,340
4,404,455
4,820,795
DR & FA FORD TRANSPORT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,102,239
1,710,397
Interest paid
(96,375)
(119,440)
Income taxes (paid)/refunded
61,108
Net cash inflow from operating activities
1,005,864
1,652,065
Investing activities
Purchase of tangible fixed assets
(1,409,069)
(605,477)
Proceeds on disposal of tangible fixed assets
164,000
247,100
Interest received
4,779
Net cash used in investing activities
(1,240,290)
(358,377)
Financing activities
Payment of finance leases obligations
(423,562)
(1,022,853)
Net cash used in financing activities
(423,562)
(1,022,853)
Net (decrease)/increase in cash and cash equivalents
(657,988)
270,835
Cash and cash equivalents at beginning of year
1,226,532
955,697
Cash and cash equivalents at end of year
568,544
1,226,532
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information
DR & FA Ford Transport Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit E6, Wem Industrial Estate, Soulton Road, Wem, Shropshire, SY4 5SD.
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 and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life. Goodwill included in the financial statements has been fully amortised.
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. Freehold land and property is held at valuation. Plant and machinery and motor vehicles are held at cost, net of depreciation.
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:
Land and buildings Freehold
Not provided
Plant and machinery
25% per annum on written down value
Motor vehicles
25% per annum on written down value
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
Freehold land and assets in the course of construction are not depreciated.
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.
Freehold buildings are not depreciated, as they are maintained to a high standard. Although this is a departure from UK Accounting Standards, the directors consider that the market value of the freehold buildings in their maintained condition is not less than the cost of acquisition.
1.6
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
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.
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
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.
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
1.13
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.
1.14
Retirement benefits
The company operates a defined contribution scheme for the benefit of its directors. Contributions payable are charged to the profit and loss account in the year they are payable.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Haulage activities
14,044,636
13,642,452
Sales of straw, firewood and other products
788,827
707,304
14,833,463
14,349,756
2024
2023
£
£
Other revenue
Interest income
4,779
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,100
8,300
Depreciation of owned tangible fixed assets
277,252
275,150
Depreciation of tangible fixed assets held under finance leases
981,689
1,068,085
Profit on disposal of tangible fixed assets
(32,355)
(99,829)
Operating lease charges
5,167
13,011
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Haulage
85
79
Management & administration
12
11
Total
97
90
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
5
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,108,472
4,013,402
Social security costs
373,474
362,610
Pension costs
154,852
135,081
4,636,798
4,511,093
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
23,117
22,658
Company pension contributions to defined contribution schemes
80,000
64,000
103,117
86,658
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
4,779
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
96,375
119,440
9
Amounts written off investments
2024
2023
£
£
Changes in the fair value of investment properties
40,000
-
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
10
Dividends
2024
2023
£
£
Final paid
302,000
277,000
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
11
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
188,874
99,594
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
642,133
483,081
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
122,005
91,785
Tax effect of expenses that are not deductible in determining taxable profit
1,172
Gains not taxable
(7,600)
Tax effect of utilisation of tax losses not previously recognised
(122,923)
(176,658)
Permanent capital allowances in excess of depreciation
7,346
84,873
Deferred tax
188,874
99,594
Taxation charge for the year
188,874
99,594
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
126,250
-
12
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
50,000
Amortisation and impairment
At 1 November 2023 and 31 October 2024
50,000
Carrying amount
At 31 October 2024
At 31 October 2023
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
13
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 November 2023
715,000
167,493
11,483,200
12,365,693
Additions
8,416
30,876
1,369,777
1,409,069
Disposals
(328,054)
(328,054)
At 31 October 2024
723,416
198,369
12,524,923
13,446,708
Depreciation and impairment
At 1 November 2023
88,694
6,545,840
6,634,534
Depreciation charged in the year
23,404
1,235,537
1,258,941
Eliminated in respect of disposals
(196,409)
(196,409)
At 31 October 2024
112,098
7,584,968
7,697,066
Carrying amount
At 31 October 2024
723,416
86,271
4,939,955
5,749,642
At 31 October 2023
715,000
78,799
4,937,360
5,731,159
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
£
£
Motor vehicles
3,760,790
3,787,792
Land and buildings with a carrying amount of £715,000 were revalued at 7 April 2022 by Astleys Chartered Surveyors, independent valuers regulated by RICS, not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors believe the value to be materially correct at 31 October 2024.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been £218,416 (2023 - £210,000).
14
Investment property
2024
£
Fair value
At 1 November 2023
200,000
Net gains or losses through fair value adjustments
40,000
At 31 October 2024
240,000
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
14
Investment property
(Continued)
- 22 -
Investment property comprises a residential property acquired in August 2016. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 October 2024 by D R Ford, a director of the company.
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
88,640
88,640
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,760,688
2,430,421
Other debtors
25,599
30,799
Prepayments and accrued income
31,288
342,938
2,817,575
2,804,158
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
200,000
Total debtors
3,017,575
2,804,158
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
1,015,857
1,190,557
Trade creditors
459,339
831,481
Taxation and social security
426,285
376,531
Deferred income
21
47,665
Other creditors
455,183
456,047
Accruals and deferred income
239,537
171,279
2,596,201
3,073,560
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
1,189,693
1,438,555
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
1,015,857
1,190,557
In two to five years
1,189,693
1,438,555
2,205,550
2,629,112
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 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,040,963
1,050,629
Tax losses
(128,648)
(308,041)
Revaluations
145,397
-
1,057,712
742,588
2024
Movements in the year:
£
Liability at 1 November 2023
742,588
Charge to profit or loss
188,874
Charge to other comprehensive income
126,250
Liability at 31 October 2024
1,057,712
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
21
Deferred income
2024
2023
£
£
Other deferred income
-
47,665
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
154,852
135,081
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.
23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
24
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
67,125
89,500
Between two and five years
67,125
67,125
156,625
25
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
116,000
-
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
26
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
405,116
363,658
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 26 -
27
Ultimate controlling party
The company is controlled by D R Ford, a director, by virtue of his majority shareholding.
28
Directors' transactions
Dividends totalling £302,000 (2023 - £277,000) were paid in the year in respect of shares held by the company's directors.
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors loan transactions
-
150
320,200
(320,239)
111
150
320,200
(320,239)
111
29
Analysis of changes in net debt
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
1,226,532
(657,988)
568,544
Obligations under finance leases
(2,629,112)
423,562
(2,205,550)
(1,402,580)
(234,426)
(1,637,006)
DR & FA FORD TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
30
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
453,259
383,487
Adjustments for:
Taxation charged
188,874
99,594
Finance costs
96,375
119,440
Investment income
(4,779)
Gain on disposal of tangible fixed assets
(32,355)
(99,829)
Depreciation and impairment of tangible fixed assets
1,258,941
1,343,235
Amounts written off investments
(40,000)
-
Movements in working capital:
Increase in stocks
(71,018)
(Increase)/decrease in debtors
(213,417)
85,352
Decrease in creditors
(556,994)
(197,529)
(Decrease)/increase in deferred income
(47,665)
47,665
Cash generated from operations
1,102,239
1,710,397
31
Auditor's liability limitation agreement
A resolution was passed dated 11 February 2020 which limits the liability of the auditor to £1m for any loss or damage suffered by DR & FA Ford Transport Limited arising out of or in connection with the provision of the services provided by the auditor.
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