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Registered number: 07018954
Drac Logistics Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 March 2024
Deans
Contents
Page
Strategic Report 1
Directors' Report 2—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
Notes to the Financial Statements 11—18
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 March 2024.
Principal Activity
The company's principal activity continues to be that of haulage and freight management. 
Review of the Business
Drac Logistics Ltd, operating within the freight forwarding and logistics sector, experienced a challenging yet strategically adaptive financial year. Turnover for the period from April 2023 to March 2024 stood at £16,683,284 2022/2023 - £29,498,122. Despite this, the company improved its gross margin, reflecting successful efforts in cost management and operational efficiency.
This report outlines the financial performance, market challenges, and strategic initiatives undertaken by the company, along with recommendations for continued growth and resilience.
Financial Performance Overview
Financial Year    Turnover (£)     Gross Margin (%)
2022–2023        29,498,122              13.8
2023–2024        16,683,284              19.2
Key Observations:
- The reduction in revenue is primarily attributed to a market-wide correction as freight rates normalized after a period of elevated pricing.
- Gross margin improvement demonstrates the company’s success in reducing operational costs and increasing pricing discipline.
Market and Operational Context
Market Trends
- The global freight market saw a stabilization post-pandemic, with pricing returning to pre-boom levels.
- Competition remains fierce, with downward pricing pressure and capacity oversupply in some routes.
Operational Highlights
- Drac Logistics continues to expand its customer base across diversified sectors, helping reduce dependency on any one industry.
- The company has actively supported other Group entities, placing short-term pressure on liquidity and financial resources.
- Aggressive cost-reduction strategies have been implemented across multiple departments to return the company to profitability under lower revenue conditions. The overall reduction in a year is £1.10 million.
Strategic Review
Current Strategy
- Sales Focus: Continued emphasis on revenue generation across all operational locations.
- Cost Rationalization: Strategic downsizing and operational efficiency measures to maintain margin health.
Competitive Positioning
- Drac Logistics remains competitive through tailored client solutions, operational flexibility, and multi-sector engagement.
- The focus on customer acquisition has yielded positive traction, although further retention strategies may enhance long-term stability.
Challenges and Risks
- Market Volatility: Freight rates are expected to remain unpredictable in the near term.
- Intercompany Financial Strain: Supporting other Group companies, while strategic, presents liquidity risk and may divert capital from core operations.
- Competitive Pressures: Margins remain under pressure due to industry-wide overcapacity and price competition.
On behalf of the board
Mr A Hopkin
Director
14 May 2025
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 31 March 2024.
Dividends
The value of dividends paid amounted to £NIL .
The directors recommended a final dividend of £NIL .
Directors
The directors who held office during the year were as follows:
Mrs S M Jones
Mr A Hopkin
Mr J Gannon
Mrs C C Bowfield-Gray
Mr C Scrimgeour
Mr R Sutherland Appointed 14/03/2024
Mr T A Hayes Resigned 30/09/2024
Statement of Directors' Responsibilities
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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved: 
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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Independent Auditors
The auditors, Deans, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr A Hopkin
Director
14 May 2025
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Independent Auditor's Report
Opinion
We have audited the financial statements of Drac Logistics Limited for the year ended 31 March 2024 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit/(loss) 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 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.
Material Uncertainty related to Going Concern
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
We draw attention to note 25 in the financial statements, which indicates that the company has experienced trading difficulties in the period after these financial statements.  As stated in note 25, these events or conditions, along with other matters as set forth in note 25, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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. In connection with our audit of the financial statements, 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 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 the audit:
  • the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and 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 or 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.
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Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 2—3, 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: 
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including
fraud and non-compliance with laws and regulations, was as follows:
-the engagement partner ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our commercial knowledge and experience of the company's operating sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial
statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection,
anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of
management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to
instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an
understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of
actual, suspected and alleged fraud;
- considering the internal controls in place to mitigate risk of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual balances, variances or unexpected relationships;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of
potential bias;
- investigated the rationale behind significant or unusual transactions; and
- specifically tested the controls around banking payments.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which
included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation claims;
- reviewing correspondence with HMRC and other relevant regulators.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing
standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of
the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may
involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 2006. Our audit work has been undertaken so that we might state to the company's members those matters that 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.
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Jeremy G Hodgkiss (Senior Statutory Auditor)
for and on behalf of Deans , Statutory Auditor
14 May 2025
Deans
Gibson House
Hurricane Court, Hurricane Close
Stafford
ST16 1GZ
Page 6
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Profit and Loss Account
2024 2023
Notes £ £
TURNOVER 3 16,683,284 29,498,122
Cost of sales (13,472,863 ) (25,439,682 )
GROSS PROFIT 3,210,421 4,058,440
Administrative expenses (2,072,149 ) (2,091,008 )
Other operating income - 258,113
OPERATING PROFIT 1,138,272 2,225,545
Exceptional items (1,734,877) -
Other interest receivable and similar income 9 9,253 791
Interest payable and similar charges 10 (170,283 ) (173,364 )
(LOSS)/PROFIT BEFORE TAXATION (757,635 ) 2,052,972
Tax on (Loss)/profit 11 (30,784 ) (321,457 )
(LOSS)/PROFIT AFTER TAXATION BEING (LOSS)/PROFIT FOR THE FINANCIAL YEAR (788,419 ) 1,731,515
The notes on pages 11 to 18 form part of these financial statements.
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Statement of Comprehensive Income
2024 2023
£ £
LOSS FOR THE FINANCIAL YEAR (788,419 ) 1,731,515
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (788,419 ) 1,731,515
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Balance Sheet
Registered number: 07018954
2024 2023
Notes £ £ £ £
FIXED ASSETS
Intangible Assets 12 6,330 12,660
Tangible Assets 13 103,990 127,481
110,320 140,141
CURRENT ASSETS
Debtors 14 5,190,010 6,272,976
Cash at bank and in hand 73,986 1,048,960
5,263,996 7,321,936
Creditors: Amounts Falling Due Within One Year 15 (4,358,789 ) (5,593,010 )
NET CURRENT ASSETS (LIABILITIES) 905,207 1,728,926
TOTAL ASSETS LESS CURRENT LIABILITIES 1,015,527 1,869,067
Creditors: Amounts Falling Due After More Than One Year 16 (70,000 ) (130,000 )
PROVISIONS FOR LIABILITIES
Deferred Taxation (21,445 ) (26,566 )
NET ASSETS 924,082 1,712,501
CAPITAL AND RESERVES
Called up share capital 19 1,500 1,500
Profit and Loss Account 922,582 1,711,001
SHAREHOLDERS' FUNDS 924,082 1,712,501
On behalf of the board
Mr A Hopkin
Director
14 May 2025
The notes on pages 11 to 18 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Profit and Loss Account Total
£ £ £
As at 1 April 2022 1,500 1,372,633 1,374,133
Profit for the year and total comprehensive income - 1,731,515 1,731,515
Dividends paid - (1,393,147) (1,393,147)
As at 31 March 2023 and 1 April 2023 1,500 1,711,001 1,712,501
Loss for the year and total comprehensive income - (788,419 ) (788,419)
Dividends paid - - -
As at 31 March 2024 1,500 922,582 924,082
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Notes to the Financial Statements
1. General Information
Drac Logistics Limited is a private company, limited by shares, incorporated in England & Wales, registered number 07018954 . The registered office is Unit 3, Tungsten, Opal Way, Stone Business Park, Stone, Staffordshire, ST15 0SS.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"  and the Companies Act 2006.  The financial statements have been prepared under the historical cost convention.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below.  These policies have been consistently applied to all years presented unless otherwise stated.
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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
  • the requirements of Section 7 Statement of Cash Flows and Section 3 Financial Statement Presentation paragraph 3.17 (d);
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of VAT and trade discounts.  The policies adopted for the recognition of turnover are as follows:
Rendering of services
When the outcome of a transaction can be estimated reliably, turnover from haulage and freight management is recognised by reference to the stage of completion at the balance sheet date.  Stage of completion is measured by reference to the date services were provided. 
Interest receivable
Interest income is recognised using the effective interest method. 
2.4. Intangible Fixed Assets and Amortisation - Goodwill
Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is ten years. Provision is made for any impairment. 
2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at cost less accumulated depreciation.  Cost includes costs directly attributable to making the asset capable of operating as intended.  Depreciation is provided at the following rates in order to write off each asset over its estimated useful life.
Improvements to property - Straight line over 10 years
Plant and machinery - Straight line over 3 years
Fixtures and fittings - Straight line over 5 years
2.6. Leasing and Hire Purchase Contracts
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. 
2.7. Foreign Currencies
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.
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2.8. Taxation
Taxation for the year comprises current and deferred tax.  Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.  
Current or deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.  Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
2.9. Employee Benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. 
2.10. Government Grant
Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.
Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.
Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.
All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.
2.11. Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price.  Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
3. Turnover
All turnover during the year related to the rendering of services.  Analysis of turnover by geographical market is as follows:
2024 2023
£ £
United Kingdom 13,010,303 18,508,793
Europe 2,775,748 10,096,772
North America 817,149 775,782
Asia 53,974 116,775
Rest of the world 26,110 -
16,683,284 29,498,122
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4. Other Operating Income
2024 2023
£ £
Commission income - 242,001
Grant income - 2,112
Other operating income - 14,000
- 258,113
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 21,000 12,500
6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 1,247,164 1,290,147
Social security costs 126,873 137,767
Other pension costs 25,157 23,801
1,399,194 1,451,715
7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2024 2023
Office and administration 24 25
Management 3 5
Directors 6 6
33 36
8. Directors' remuneration
2024 2023
£ £
Emoluments 369,928 387,418
Company contributions to money purchase pension schemes 6,531 6,473
376,459 393,891
Information regarding the highest paid director was as follows:
2024 2023
£ £
Emoluments 79,888 84,157
Company contributions to money purchase pension schemes 1,321 1,321
81,209 85,478
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9. Interest Receivable and Similar Income
2024 2023
£ £
Bank interest receivable 445 215
Beneficial loan interest 1,198 576
Corporation tax interest receivable 7,610 -
9,253 791
10. Interest Payable and Similar Charges
2024 2023
£ £
Bank loans and overdrafts 11,927 9,852
Corporation tax interest payable 9,446 -
Factoring charges 148,910 163,512
170,283 173,364
11. Tax on Profit
The tax charge on the (loss)/profit for the year was as follows:
2024 2023
£ £
Current tax
UK Corporation Tax 103,585 311,994
Prior period adjustment (67,680 ) -
35,905 311,994
Deferred Tax
Deferred taxation (5,121 ) 9,463
Total tax charge for the period 30,784 321,457
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the (loss)/profit and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax (757,635) 2,052,972
Tax on profit at 25% (UK standard rate) 37,794 390,065
Goodwill/depreciation not allowed for tax 9,573 7,459
Expenses not deductible for tax purposes 211,836 11,608
Capital allowances (2,118 ) (10,372 )
Prior period adjustment (67,680 ) -
Group relief (153,500 ) (86,766 )
Deferred tax from unrecognised timing difference from a prior period (5,121 ) 9,463
Total tax charge for the period 30,784 321,457
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12. Intangible Assets
Goodwill
£
Cost
As at 1 April 2023 63,299
As at 31 March 2024 63,299
Amortisation
As at 1 April 2023 50,639
Provided during the period 6,330
As at 31 March 2024 56,969
Net Book Value
As at 31 March 2024 6,330
As at 1 April 2023 12,660
13. Tangible Assets
Land & Property
Leasehold Plant & Machinery Fixtures & Fittings Total
£ £ £ £
Cost
As at 1 April 2023 103,529 51,284 44,067 198,880
Additions - 796 7,675 8,471
As at 31 March 2024 103,529 52,080 51,742 207,351
Depreciation
As at 1 April 2023 18,840 38,334 14,225 71,399
Provided during the period 10,353 11,714 9,895 31,962
As at 31 March 2024 29,193 50,048 24,120 103,361
Net Book Value
As at 31 March 2024 74,336 2,032 27,622 103,990
As at 1 April 2023 84,689 12,950 29,842 127,481
14. Debtors
2024 2023
£ £
Due within one year
Trade debtors 2,662,361 4,730,255
Prepayments and accrued income 260,715 268,730
Other debtors 104,592 215,224
Corporation tax recoverable assets 24,258 16,408
VAT 47,282 178,051
Directors' loan accounts 53,746 30,487
...CONTINUED
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Drac Global Limited 1,628,176 473,289
Drac Distribution Limited 408,880 183,005
Caledonian Logistics Limited - 177,527
5,190,010 6,272,976
15. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Trade creditors 1,472,838 1,656,752
Bank loans and overdrafts 60,000 60,000
Corporation tax 284,816 287,368
Other taxes and social security 31,017 31,641
Other creditors 13,793 75,533
Invoice financing 2,022,179 3,113,259
Accruals and deferred income 474,146 368,457
4,358,789 5,593,010
16. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Bank loans 70,000 130,000
Of the creditors the following amounts are secured.
2024
2023
£
£
Invoice Financing
2,022,179
3,113,259
image
image
2,022,179
image
3,113,259
image
Invoice financing facilities are secured by fixed and floating charges covering all the property or undertaking of the company.
17. Loans
An analysis of the maturity of loans is given below:
2024 2023
£ £
Amounts falling due within one year or on demand:
Bank loans 60,000 60,000
2024 2023
£ £
Amounts falling due between one and five years:
Bank loans 70,000 130,000
The loan is being repaid in monthly instalments of £5,000, no interest is being charged.
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18. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 April 2023 26,566 26,566
Reversals (5,121 ) (5,121)
Balance at 31 March 2024 21,445 21,445
19. Share Capital
2024 2023
Allotted, called up and fully paid £ £
1,500 Ordinary Shares of £ 1.00 each 1,500 1,500
Each Ordinary Share has full voting rights, full dividend rights and the right to participate in distributions on winding up.
20. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
2024 2023
£ £
Not later than one year 523,731 364,387
Later than one year and not later than five years 1,582,316 1,787,358
Later than five years 1,274,751 1,593,440
3,380,798 3,745,185
21. Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:
As at 1 April 2023 Amounts advanced Amounts repaid Amounts written off As at 31 March 2024
£ £ £ £ £
Mr Thomas Hayes 30,487 26,198 2,939 - 53,746
The above loan is provided at an interest rate of 2.25% (2023: 2%). 
22. Related Party Disclosures
During the year a further loan was made to Campbell Port Services Limited of £118,538, a company which shares a director with Drac Logistics Limited. As at the year end the outstanding balance of £229,810 (2023: £111,272) has been fully provided for as being non recoverable.
All other transactions with Campbell Port Services Limited have been conducted at an arm's length basis. 
23. Controlling Parties
Drac Global Limited is recognised by the directors as being the company's ultimate parent company. Drac Global Limited is incorporated in England and the registered office is Unit 3 Opal Way, Stone Business Park, Stone, Staffordshire, United Kingdom, ST15 0SS.
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24. Exceptional Items
During the year exceptional items totalling £1,734,877 (2023:£Nil) have been charged to the profit and loss account.  These comprise:
- A provision against the amount owing from Campell Port Services Ltd as set out in note 22 of £229,810.
- The write off of a balance of £826,067 with a fellow group company which is in administration.
- A provision against amounts owing from Drac Distribution Limited, a fellow group company of £179,000.
- A provision against amounts owing from its parent company, Drac Global Limited of £500,000.
25. Going Concern
The financial statements have been prepared on a going concern basis which assumes the company will continue in operation existence for the foreseeable future and will be able to meet its liabilities. 
In assessing the company’s ability to continue as a going concern the directors have considered the company’s financial position, cash flow forecasts and risks facing the business. 
During the year ended 31 March 2024 exceptional costs were incurred relating to the writing off of loans made to group/connected companies totalling £1,734,877 which has put a significant strain on the company’s cashflow and profitability.  
As a result, the company has experienced trading losses before tax in the year to 31 March 2025.  Forecasts and new business contracts secured are suggesting a return to profitability in the year to 31 March 2026 due to action taken as follows :
- The gross profitability of the company has increased from the previous year and is expected to continue;
- The company is currently actively implementing cost-saving measures and exploring opportunities to improve operational cash flows and profits and has been successful in removing £1.1m of recurring costs for the foreseeable future;
- A company-wide focus on increasing sales which the company is starting to see coming through.
If there is a requirement for the Directors to look at investing money into the business, they will do so as and when required.
Cashflow statements have been prepared by the Directors which indicated the company can continue to operate for a period of at least 12 months from the date of approval of these financial statements with support from their key stakeholders. However, these forecasts rely on assumptions and judgements.
As a result, the directors are confident in the company’s ability to continue as a going concern and have therefore prepared the financial statements on that basis.
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