Company registration number 02444973 (England and Wales)
MORRISON FREIGHT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
MORRISON FREIGHT LIMITED
COMPANY INFORMATION
Directors
Mr D Ryan
Mr L Steward
Company number
02444973
Registered office
Morrison House
Addison Way
Great Blakenham
Ipswich
IP6 0RL
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
Business address
Morrison House
Addison Way
Great Blakenham
Ipswich
IP6 0RL
MORRISON FREIGHT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
MORRISON FREIGHT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

The directors present the strategic report for the year ended 31 July 2024.

Principal activities

The principal activity of the company during the period was that of a company engaged in freight forwarding and international haulage.

Review of the business

The company has had another great year despite a fall in turnover of 12.4%, margins have remained consistent and in a strong position.  Trading was robust despite the UK and European markets returning to more normal conditions after inflated rates due to pandemic and despite Geopolitical conditions.  The company benefits from a very diverse customer base and therefore was largely shielded from inflation costs in some of the sectors during this year and was successful in managing to mitigate increases in supplier rates.  New areas of operation within UK domestic market, and fully fledged Customs clearance team has added more services for our existing and new customer base.

Principal risks and uncertainties

The directors believe that there will be an economic downturn with the continued “return to normal” for the freight markets will continue to drive down rates in some areas of the business.  The directors believe that there will be a lot of larger freight companies driving down rates simply to secure work.  Some of the older UK exporters the company has worked with have faced continued competition and pressure from European manufacturers; so, the group will focus more activities on intertrade within Europe.

Key performance indicators

The company's key performance indicators during the period were as follows:

 

 

31-July

31-July

 

2024

2023

 

£

£

Turnover

13,315,109

15,207,609

Gross profit margin

Operating profit margin

20.12%

10.38%

19.67%

10.22%

 

On behalf of the board

Mr D Ryan
Director
8 April 2025
MORRISON FREIGHT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 July 2024.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr D Ryan
Mr L Steward
Financial instruments
Treasury operations and financial instruments

The Company operates a centralised treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the Company’s’ activities. The Company’s principal financial instruments include large positive cash balance with an option for bank overdrafts if needed. In addition, the Company has various other financial assets and liabilities such as trade receivables and trade payables arising directly from its operations.

Foreign currency risk

The company is exposed to some foreign exchange risk, with transactions being kept in local currency where possible to minimise exposure.

Government legislation/regulation

This is continually monitored and reviewed for changes that affect the industry and the operations of the business.

Future developments

The directors consider that the forthcoming financial year will be a year of more difficult trading conditions in the standard European freight market.  The company has already diversified and will continue to do so, and will also heavily invest in staff recruitment and training. Their aim is to continue to implement the management policies and further develop the management team which have now all completed their NVQ’s in management and leadership.  The newly formed Customs department and inhouse clearance software has already born fruits and will be a continued avenue to pursue new business within. 

 

Overall, the directors believe that the company is well placed in terms of strategic and market position to maximise its ability to generate sales and satisfy customer demand, in spite of the difficult economic conditions currently facing the industry.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

MORRISON FREIGHT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 Ryan
Mr L Steward
Director
Director
8 April 2025
MORRISON FREIGHT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MORRISON FREIGHT LIMITED
- 4 -

Qualified opinion on financial statements

We have audited the financial statements of Morrison Freight Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects on the corresponding figures of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

It was not possible to obtain sufficient and appropriate evidence to confirm the accuracy of opening balances as at 1 August 2022 as the balance sheet figure at 31 July 2022 were unaudited. Accordingly, we were unable to determine whether any adjustments to these amounts were necessary. Any adjustment to the opening balances at 1 August 2022 would have a consequential effect on the profit for the year ended 31 July 2023. Our audit opinion for the year ended 31 July 2023 was modified accordingly. The financial statements of Morrison Freight Limited for the year ended 31 July 2024 include comparative figures from the prior year’s profit and loss account. As we were unable to obtain sufficient appropriate audit evidence regarding the accuracy and completeness of the comparative figures due to limitations in the prior year's audit, we were unable to determine whether any adjustments to these comparative figures were necessary. Our audit opinion on the current year’s financial statements is also modified because of the possible effects of this matter on the comparability of the current year's figures and the corresponding figures.

 

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 qualified 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.

MORRISON FREIGHT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MORRISON FREIGHT LIMITED
- 5 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

MORRISON FREIGHT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MORRISON FREIGHT LIMITED
- 6 -

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.

 

Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including transactions with related parties, revenue recognition and management override of systems and control.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

·    obtained an understanding of the nature of the industry and sector, including the legal and regulatory     framework that the company operates in and how the company are complying with the legal and regulatory     framework;

·    inquired of management, and those charged with governance, about their own identification and     assessment of the risks of irregularities, including any known actual, suspected or alleged instances of     fraud;

·    discussed matters about non-compliance with laws and regulations and how fraud might occur including     assessment of how and where the financial statements may be susceptible to fraud;

·    in addressing the risk of fraud through management override of controls, testing the appropriateness of     journal entries and other adjustments, assessing whether the judgements made in making accounting     estimates are indicative of potential bias, and evaluating the business rationale of any significant     transactions that are unusual or outside the normal course of business.

 

We also performed procedures to satisfy ourselves regarding compliance with applicable laws and regulations, including:

 

·    Enquiring of management, those charged with governance and the entity’s solicitors if there were any     actual and potential litigation and claims.

·    Reviewing legal expenses for any indicators of litigation or claims against the company

 

All audit team members were made aware of the applicable laws and regulations, as well as potential fraud risks during the planning stage of the audit and this was discussed at the audit team planning meeting. It was therefore determined that team members all had the relevant awareness and competence to identify any instances of non-compliance with relevant laws and regulations or fraud.

 

There are, however, inherent limitations to our above audit procedures. Auditing standards only require us to enquire of the directors and management regarding non-compliance with laws and regulations, as well as review regulatory and legal correspondence (if there is any). It is therefore possible that instances of non-compliance could be missed, particularly where the law in itself is far removed from any financial transactions.

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.

MORRISON FREIGHT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MORRISON FREIGHT LIMITED
- 7 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Barry Gostling
Senior Statutory Auditor
For and on behalf of Ensors Accountants LLP
16 April 2025
Chartered Accountants
Statutory Auditor
Connexions
159 Princes Street
Ipswich
IP1 1QJ
MORRISON FREIGHT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,315,109
15,207,609
Cost of sales
(10,636,160)
(12,215,904)
Gross profit
2,678,949
2,991,705
Administrative expenses
(1,296,182)
(1,437,314)
Operating profit
4
1,382,767
1,554,391
Interest receivable and similar income
8
25
-
0
Interest payable and similar expenses
9
(4,022)
(1,022)
Profit before taxation
1,378,770
1,553,369
Tax on profit
10
(317,826)
(323,943)
Profit for the financial year
1,060,944
1,229,426

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

MORRISON FREIGHT LIMITED
BALANCE SHEET
AS AT
31 JULY 2024
31 July 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,705
75,869
Current assets
Debtors
13
5,986,433
5,400,574
Cash at bank and in hand
701,494
866,126
6,687,927
6,266,700
Creditors: amounts falling due within one year
14
(4,192,390)
(4,889,152)
Net current assets
2,495,537
1,377,548
Total assets less current liabilities
2,504,242
1,453,417
Creditors: amounts falling due after more than one year
15
(15,661)
(25,780)
Net assets
2,488,581
1,427,637
Capital and reserves
Called up share capital
19
50,000
50,000
Capital redemption reserve
20
17,500
17,500
Profit and loss reserves
21
2,421,081
1,360,137
Total equity
2,488,581
1,427,637

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 8 April 2025 and are signed on its behalf by:
Mr D Ryan
Mr L Steward
Director
Director
Company registration number 02444973 (England and Wales)
MORRISON FREIGHT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2022
50,000
17,500
1,130,711
1,198,211
Year ended 31 July 2023:
Profit and total comprehensive income
-
-
1,229,426
1,229,426
Dividends
11
-
-
(1,000,000)
(1,000,000)
Balance at 31 July 2023
50,000
17,500
1,360,137
1,427,637
Year ended 31 July 2024:
Profit and total comprehensive income
-
-
1,060,944
1,060,944
Balance at 31 July 2024
50,000
17,500
2,421,081
2,488,581
MORRISON FREIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
1
Accounting policies
Company information

Morrison Freight Limited is a private company limited by shares incorporated in England and Wales. The registered office is Morrison House, Addison Way, Great Blakenham, Ipswich, IP6 0RL.

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.

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

 

 

The financial statements of the company are consolidated in the financial statements of Morrison Group Limited. These consolidated financial statements are available from its registered office, Morrison House, Addison Way, Great Blakenham, Ipswich, England, IP6 0RL.

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

Revenue from freight forwarding is recognised at the point goods are collected.

 

Turnover is recognised at the fair value of the consideration received or receivable for 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.

1.4
Tangible fixed assets

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

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

Plant and machinery
4 year straight line
Fixtures, fittings & equipment
20% reducing balance
Motor vehicles
6 year straight line
MORRISON FREIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 12 -

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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.

1.6
Cash and cash equivalents

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

1.7
Financial instruments

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

 

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

 

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

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.

MORRISON FREIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.8
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.

1.9
Taxation

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

MORRISON FREIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -
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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

1.10
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.

 

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.

1.11
Retirement benefits

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

1.12
Leases

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

1.13
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Freight forwarding
13,315,109
15,207,609
MORRISON FREIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
3
Turnover and other revenue
(Continued)
- 15 -
2024
2023
£
£
Turnover analysed by geographical market
UK
10,425,579
12,140,935
Europe
2,889,530
3,066,674
13,315,109
15,207,609
2024
2023
£
£
Other revenue
Interest income
25
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(21,929)
369
Depreciation of owned tangible fixed assets
17,020
23,482
Loss on disposal of tangible fixed assets
9,289
-
Operating lease charges
60,913
33,808
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
10,250
9,750
6
Employees

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

2024
2023
Number
Number
Management
7
7
Operators
16
16
Total
23
23
MORRISON FREIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
6
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
787,100
823,168
Social security costs
74,736
81,114
Pension costs
71,625
117,861
933,461
1,022,143
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
16,800
25,200
Company pension contributions to defined contribution schemes
56,104
103,026
72,904
128,226
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
25
-
0
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
846
1,022
Other interest
3,176
-
0
4,022
1,022
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
313,290
331,406
Adjustments in respect of prior periods
2,992
15,188
Total current tax
316,282
346,594
MORRISON FREIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
10
Taxation
2024
2023
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
1,544
(22,651)
Total tax charge
317,826
323,943

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
1,378,770
1,553,369
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.01%)
344,693
326,363
Tax effect of expenses that are not deductible in determining taxable profit
5,715
5,050
Adjustments in respect of prior years
2,992
15,188
Group relief
(35,573)
(550)
Deferred tax adjustments in respect of prior years
-
0
(21,922)
Remeasurement of deferred tax for changes in tax rates
-
0
(116)
Marginal rate rounding
(1)
(70)
Taxation charge for the year
317,826
323,943

In the Autumn Statement in November 2022, the government confirmed the increase in corporation tax rate to 25% from 1 April 2023 will go ahead. This has resulted in a marginal rate calculated at 21.01% due to the prior year end straddling the 1 April 2023.

11
Dividends
2024
2023
£
£
Final paid
-
0
1,000,000
MORRISON FREIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 18 -
12
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2023
25,938
11,225
114,400
151,563
Additions
1,943
685
-
0
2,628
Disposals
-
0
-
0
(105,450)
(105,450)
At 31 July 2024
27,881
11,910
8,950
48,741
Depreciation and impairment
At 1 August 2023
22,831
4,734
48,129
75,694
Depreciation charged in the year
2,143
1,378
13,499
17,020
Eliminated in respect of disposals
-
0
-
0
(52,678)
(52,678)
At 31 July 2024
24,974
6,112
8,950
40,036
Carrying amount
At 31 July 2024
2,907
5,798
-
0
8,705
At 31 July 2023
3,107
6,491
66,271
75,869
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,919,556
1,929,713
Amounts owed by group undertakings
3,988,730
3,401,713
Other debtors
14,915
26,957
Prepayments and accrued income
58,129
35,544
5,981,330
5,393,927
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset
5,103
6,647
Total debtors
5,986,433
5,400,574
MORRISON FREIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 19 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
10,119
9,870
Trade creditors
1,591,629
1,554,052
Amounts owed to group undertakings
1,707,810
1,710,273
Corporation tax
165,213
184,705
Other taxation and social security
29,269
36,084
Other creditors
1,952
651,903
Accruals and deferred income
686,398
742,265
4,192,390
4,889,152
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
15,661
25,780
16
Loans and overdrafts
2024
2023
£
£
Bank loans
25,780
35,650
Payable within one year
10,119
9,870
Payable after one year
15,661
25,780

Bounce back loan is a government backed funding which is repayable in instalments over one to six years. The interest rate on the loan is 2.50%.

17
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
5,103
6,647
MORRISON FREIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
17
Deferred taxation
(Continued)
- 20 -
2024
Movements in the year:
£
Asset at 1 August 2023
(6,647)
Charge to profit or loss
1,544
Asset at 31 July 2024
(5,103)

The deferred tax asset 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.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,625
117,861

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
20
Capital redemption reserve
2024
2023
£
£
At the beginning and end of the year
17,500
17,500
21
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
1,360,137
1,130,711
Profit for the year
1,060,944
1,229,426
Dividends declared and paid in the year
-
(1,000,000)
At the end of the year
2,421,081
1,360,137
MORRISON FREIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
22
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
57,101
37,587
Between two and five years
77,891
113,897
134,992
151,484
23
Related party transactions

At the year end £1,707,810 (2023: £1,710,273) was owed to Morrison Freight Holdings Limited, it's parent company. No interest is charged and the amount is repayable upon demand.

 

At the year end the company was owed £3,988,730 (2023: £3,401,713) from Morrison Group Limited. No interest is charged and the amount is repayable upon demand.

24
Directors' transactions

At the beginning of the year the company owed the director's £651,103, which was fully repaid during the year.

 

At the year end the directors owed the company £1,266. The maximum amount outstanding in the year was £1,266 (2023: £nil).

25
Ultimate controlling party

The company's immediate parent undertaking at the balance sheet date was Morrison Freight Holdings Limited, a company incorporated in England and Wales.

The company’s ultimate parent undertaking was Morrison Group Limited, a company incorporated in England & Wales.

 

The registered office of Morrison Freight Holdings Limited and Morrison Group Limited is Morrison House, Addison Way, Great Blakenham, Ipswich, IP6 0RL.

 

At the balance sheet date the controlling interest of the group was split evenly between each director.

 

Subsequent to the year end the ultimate parent company has changed to Schneider Logistics Group AG, a company incorporated in Switzerland.

 

The registered office of Schneider Logistics Group AG is Steinengraben, 22, Basel, Switzerland, CH 4051.

 

There is no ultimate controlling party.

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