Company registration number 13767389 (England and Wales)
EXPECT DISTRIBUTION GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
EXPECT DISTRIBUTION GROUP LIMITED
COMPANY INFORMATION
Directors
Mr M J Kilner
Mr A D Taylor
Company number
13767389
Registered office
Premier Point Premier Gate
Staithgate Lane
Bradford
West Yorkshire
BD6 1DW
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
EXPECT DISTRIBUTION GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 35
EXPECT DISTRIBUTION GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 November 2024.

Review of the business

The Directors report another year of stability and growth for the business driven by increased revenue from existing customers and new Warehousing business established within the year. Economic trading conditions were tough throughout 2024 which resulted in significant costs that impacted the results of the business but were managed well considering the circumstances.

 

Our strategy remained focused on a customer first environment that continually strives add value as their 3PL provider and provide a solution that enables growth to be achieved. Opportunities to become a valued logistics partner remain prevalent where prospective customers have the desire to reduce their fixed cost base and seek value added opportunity with a 3PL partner that is heavily focused on Continuous Improvement.

 

Headline revenue for the year grew by £14.9m (29%) whilst our profit before tax increased by £328k (17.8%) when compared to 2023. Operating Profit and EBITDA increased by £803k (21.4%) and £1.2m (20%), both of which are measures used by management to determine underlying trade performance.

 

Capital investment within the year was limited to the development of our own Transport Management System and the infrastructure required to facilitate the use of electric commercial vehicles. This follows significant investment in our warehousing sites over the course of the last few years as our focus shifts towards realising the investment and focus on technological advances.

 

Warehouse occupancy levels reached capacity within the year as we onboarded a number of new customers from a transaction with a local Warehousing business whereby we purchased the customer book and migrated the stock to our facilities. Our sales strategy is now geared towards Contract Logistics which offers a scalable, value added partnership which consists of bespoke solutions built around the customer’s needs.

 

Investment in our people remained one of the highest priorities throughout the year as it is recognised that development and the welfare of our people is the key to our success. We continue to attract the industry's talent by operating a culture of opportunity with career progression for those who wish, which is extremely important in a growing business such as Expect.

 

Benchmarking of pay rates and employee benefits were undertaken in the year across the workforce and increases awarded to maintain our position in the upper quartile of the market. It is as important as ever that our colleagues are appropriately remunerated given current cost of living increases, but also that our benefits package remains industry leading and contributes to their well-being accordingly.

 

Our priorities continue to remain the health, safety and well-being of those employees and on delivering strong service levels for all our customers. The directors would like to recognise the dedication of all Expect colleagues once again and thank all involved in making the year a success despite difficult trading conditions.

 

EXPECT DISTRIBUTION GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -
Principal risks and uncertainties

Financial risk management objectives and policies

The Group operates mainly in the UK and seeks to mitigate exposure to all forms of risk both internal and external.

 

Customer and suppliers

The group is not wholly dependant on any one main customer or supplier and has a low concentration risk across the customer base.

 

Credit risk

The group seeks to reduce risk by carrying out credit checks on new customers and operating strict credit control on its debtor ledger.

 

Laws and regulations

The group complies with all road traffic, health and safety and employment law an takes its responsibilities very seriously.

 

Employees

The group continues to be an equal opportunities employer. In employment related decisions, the group complies with anti-discrimination requirements concerning matters of race, colour, national origin, marital status, sexual orientation, religious belief, age and physical or mental ability. Disabled people are given full and equal consideration for employment and their development is assisted and encouraged.

 

Other performance indicators

The group's key performance indicators during the year were as follows:

 

 

2024

2023

Turnover

66,641,859

51,693,456

Gross Profit

19,860,947

16,300,363

Gross Profit Margin

30%

32%

Operating Profit

4,561,259

3,758,081

 

Promoting the success of the company

The Board of Directors of Expect Distribution Group Ltd have, when making decisions, acted in a way they believe to be in good faith and will duly promote the success of the group for the benefit of its members as a whole, and in doing so have had a regard to stakeholders and the matters set out in subsections 172(1)(a-f) of the Companies Act 2006.

EXPECT DISTRIBUTION GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -

In making this statement the directors have considered the following maters:

1. Consequence and long term impact of decisions made:

The board review the group strategy on a regular basis and ensure that decisions made are supportive of that strategy and are appropriate to the long term success of the group. Project appraisal documents are produced which comprehensively demonstrate the viability of future investments to ensure they are of benefit to the business.

2. Interests of its employees

Our people are at the heart of our success and are critical to the future of the business and its related success. We endeavour to be an employer of choice that recruits, retains and develops to the highest of standards that in turn will be represented in their career at Expect. Our decisions are always made with our colleagues at the forefront of our minds to ensure their interests are well protected.

3. The need to foster business relationships with customers, suppliers and others

Expect has developed and built on the strength of its long term relationships that it holds with its customers and suppliers. Our mission is to be the best in the industry and fostering relationships is one of the key requirements to ensure we are delivering the best possible service to our customers and working effectively with suppliers.

4. Impact on the community and the environment

Sustainability in our operations is a topic that is of high regard to the board of directors in their conduct and decision making. Our strategy includes a high level of consideration to ensuring we are investing in the newest technology that minimises impact on the environment and our carbon footprint. We are a supporter and sponsor of the local authority in Bradford, ensuring that we give back to the community and support its development.

5. Desirability to maintain a reputation of high standards and business conduct

The board are responsible for setting and delivering the culture, values and reputation of the group. Our colleagues are fundamental to achieving our ambition to be the best in the industry and we are continually developing a culture that allows our colleagues to prosper. Regular training is carried out with our colleagues to ensure that the code of ethics and conduct are continually reinforced in the way that we operate.

6. The need to act fairly as between members of the company

The group always seeks to ensure that its communications are transparent and in accordance with the strategy of the business to ensure the long term success is supported. Decisions are made with fairness of all key stakeholders in mind and ensuring that decisions are made in the best interests of its members.

On behalf of the board

Mr M J Kilner
Director
21 May 2025
EXPECT DISTRIBUTION GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 4 -

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

Principal activities

The principal activity of Expect Distribution Group Limited was that of a holding company.

 

The principal activity of the group was that of haulage and transport contractor, being particularly involved in pallet delivery and warehousing.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £435,470. 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 M J Kilner
Mr A D Taylor
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

EXPECT DISTRIBUTION GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 5 -

Our people are the face of the Expect brand and the high standard of services we offer to our customers. The culture amongst our colleagues is of extreme importance to the board of directors and employee engagement is fundamental to upholding the culture and values that we operate to.

 

We are an equal opportunity employer that strives to be an employer of choice, recruiting industry leading talent that will perform to their potential. Our recruitment and retention strategy is continually reviewed to ensure we remain ahead of the market and offer pay and benefits that stand out from the rest.

 

The Directors are committed to promoting a healthy workforce with focus on mental health and wellbeing, whilst demonstrating a culture of openness to keep colleagues informed of key developments within the business.

 

During the year the board of directors have engaged with colleagues through the following methods:

Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

EXPECT DISTRIBUTION GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 6 -
Energy and carbon report

Expect Distribution Group Limited are committed to continually developing its infrastructure and investing in energy efficient operating equipment to reduce the overall effect it has on the environment.

 

Fleet efficiency and reduced empty running are consistently measured and focused on throughout the business, creating partnerships where possible to reduce the overall mileage travelled. Our membership of the Palletline network allows us to reduce the stem mileage associated with our deliveries by selecting the optimal route for the consignment.

 

Forklift equipment is renewed periodically with over 80% of our fleet now operating with rechargeable electric motors rather than the traditional gas engine. Our renewal policy of 5 years on such equipment ensures we are investing in the most recent technology when renewing equipment.

 

Alternative fuel vehicles are a firm part of Expect’s replacement vehicle strategy with pilot schemes currently in place to assess viability across certain parts of the operation.

 

Energy consumption for the annual period of reference are stated in the table below for each respective fuel type used within Expect Distribution Group Ltd:

 

Fuel Type

2024

kWh

2024

CO2e (tonnes)

2023

kWh

2023

CO2e (tonnes)

Diesel – Vehicles

31,141,963

7,637

30,042,200

7,367

Electricity

811,887

172

783,919

167

Gas

376,835

69

528,512

97

Total

32,330,686

7,879

31,354,631

7,631

 

The intensity ratio based on total gross emissions was 11.82 (2023 – 14.76) tonnes CO2 per £100,000 of sales revenue.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr M J Kilner
Director
21 May 2025
EXPECT DISTRIBUTION GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 7 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

EXPECT DISTRIBUTION GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EXPECT DISTRIBUTION GROUP LIMITED
- 8 -
Opinion

We have audited the financial statements of Expect Distribution Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:

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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

EXPECT DISTRIBUTION GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EXPECT DISTRIBUTION GROUP LIMITED
- 9 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

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.

EXPECT DISTRIBUTION GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EXPECT DISTRIBUTION GROUP LIMITED
- 10 -

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Chris Butt (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
21 May 2025
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
EXPECT DISTRIBUTION GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
66,641,859
51,693,456
Cost of sales
(46,780,912)
(35,393,093)
Gross profit
19,860,947
16,300,363
Administrative expenses
(15,354,303)
(12,549,782)
Other operating income
54,615
7,500
Operating profit
4
4,561,259
3,758,081
Interest payable and similar expenses
8
(2,379,096)
(1,904,332)
Profit before taxation
2,182,163
1,853,749
Tax on profit
9
(1,142,060)
(857,908)
Profit for the financial year
1,040,103
995,841
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

EXPECT DISTRIBUTION GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
23,935,652
25,344,156
Other intangible assets
11
969,166
125,000
Total intangible assets
24,904,818
25,469,156
Tangible assets
12
5,674,177
5,944,435
Investments
13
495,200
495,200
31,074,195
31,908,791
Current assets
Stocks
15
161,187
124,221
Debtors
16
10,675,280
12,550,106
Cash at bank and in hand
182,216
78,720
11,018,683
12,753,047
Creditors: amounts falling due within one year
17
(19,735,950)
(16,811,324)
Net current liabilities
(8,717,267)
(4,058,277)
Total assets less current liabilities
22,356,928
27,850,514
Creditors: amounts falling due after more than one year
18
(18,752,920)
(24,769,486)
Provisions for liabilities
Deferred tax liability
21
1,240,292
1,321,967
(1,240,292)
(1,321,967)
Net assets
2,363,716
1,759,061
Capital and reserves
Called up share capital
23
1,479
1,457
Profit and loss reserves
2,362,237
1,757,604
Total equity
2,363,716
1,759,061
The financial statements were approved by the board of directors and authorised for issue on 21 May 2025 and are signed on its behalf by:
21 May 2025
Mr M J Kilner
Director
Company registration number 13767389 (England and Wales)
EXPECT DISTRIBUTION GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2024
30 November 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
34,415,883
34,415,883
Current assets
Debtors
16
150,022
150,000
Creditors: amounts falling due within one year
17
(6,882,850)
(9,507,424)
Net current liabilities
(6,732,828)
(9,357,424)
Total assets less current liabilities
27,683,055
25,058,459
Creditors: amounts falling due after more than one year
18
(17,765,113)
(23,350,448)
Net assets
9,917,942
1,708,011
Capital and reserves
Called up share capital
23
1,479
1,457
Share premium account
1,821,792
1,821,792
Profit and loss reserves
8,094,671
(115,238)
Total equity
9,917,942
1,708,011

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £8,645,379 (2023 - £299,362 profit).

The financial statements were approved by the board of directors and authorised for issue on 21 May 2025 and are signed on its behalf by:
21 May 2025
Mr M J Kilner
Director
Company registration number 13767389 (England and Wales)
EXPECT DISTRIBUTION GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2022
1,457
1,176,363
1,177,820
Year ended 30 November 2023:
Profit and total comprehensive income
-
995,841
995,841
Dividends
10
-
(414,600)
(414,600)
Balance at 30 November 2023
1,457
1,757,604
1,759,061
Year ended 30 November 2024:
Profit and total comprehensive income
-
1,040,103
1,040,103
Issue of share capital
23
22
-
22
Dividends
10
-
(435,470)
(435,470)
Balance at 30 November 2024
1,479
2,362,237
2,363,716
EXPECT DISTRIBUTION GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 December 2022
1,457
1,821,792
-
0
1,823,249
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
-
299,362
299,362
Dividends
10
-
-
(414,600)
(414,600)
Balance at 30 November 2023
1,457
1,821,792
(115,238)
1,708,011
Year ended 30 November 2024:
Profit and total comprehensive income
-
-
8,645,379
8,645,379
Issue of share capital
23
22
-
0
-
22
Dividends
10
-
-
(435,470)
(435,470)
Balance at 30 November 2024
1,479
1,821,792
8,094,671
9,917,942
EXPECT DISTRIBUTION GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
10,386,677
6,738,643
Interest paid
(2,379,096)
(1,904,332)
Income taxes paid
(328,278)
(597,632)
Net cash inflow from operating activities
7,679,303
4,236,679
Investing activities
Purchase of business
-
(7,099,297)
Purchase of intangible assets
(909,681)
Purchase of tangible fixed assets
(347,173)
(478,434)
Proceeds from disposal of tangible fixed assets
6,685
777,478
Net cash used in investing activities
(1,250,169)
(6,800,253)
Financing activities
Proceeds from issue of shares
22
-
Repayment of borrowings
(119,068)
-
Proceeds from new bank loans
-
1,595,548
Repayment of bank loans
(1,125,000)
Payment of finance leases obligations
(1,185,051)
(572,158)
Deferred consideration
-
2,337,669
Dividends paid to equity shareholders
(435,470)
(414,600)
Movement on directors loan
(52,564)
-
0
Net cash (used in)/generated from financing activities
(2,917,131)
2,946,459
Net increase in cash and cash equivalents
3,512,003
382,885
Cash and cash equivalents at beginning of year
(3,329,787)
(3,712,672)
Cash and cash equivalents at end of year
182,216
(3,329,787)
Relating to:
Cash at bank and in hand
182,216
78,720
Bank overdrafts included in creditors payable within one year
-
(3,408,507)
EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 17 -
1
Accounting policies
Company information

Expect Distribution Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Premier Point Premier Gate, Staithgate Lane, Bradford, West Yorkshire, BD6 1DW.

 

The group consists of Expect Distribution Group Limited and all of its subsidiaries.

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 £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being the parent of a group that prepares publicly available consolidated financial statements, 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 for parent company information presented within the consolidated financial statements:

 

 

The company has taken advantage of the disclosure exemptions of Section 33.1A of FRS102 which permit it to not present details of its transactions with members of the group where relevant group companies are all wholly owned.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Expect Distribution Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 November 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The directors have considered all factors, including in the wider economy, as part of their assessment of going

concern. Although the current economic climate creates both cashflow and profitability risks for the group, the

group continues to trade profitably and is cash generative. Budgets and cashflows have been prepared using

assumptions for customer demand and supply chain costs as well as expectations for legal and regulatory

environmental impacts. The Directors have prepared detailed cash flow projections which show that the Group is expected to generate sufficient funds to meet liabilities as they fall due. Consequently the directors believe on balance that they have sufficient resources to enable trading to continuefor a period of at least one year from the date of approval of the financial statements. Accordingly, these financial statements have been prepared on the going concern basis.

1.5
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.

 

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimtated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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, which is 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Patents & licences
10 years straight line
Customer list
10 years straight line
1.8
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:

Freehold buildings
5 - 50 Years Straight Line
Leasehold land and buildings
Over the term of the lease
Plant and equipment
3 - 10 Years Straight Line
Fixtures and fittings
3 - 15 Years Straight Line
Computers
2 - 5 Years Straight Line
Motor vehicles
2 - 4 Years Straight Line

Assets under construction are not depreciated until the completed asset is available for use.

 

Freehold land is 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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
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.

1.12
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.

EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 group 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 group after deducting all of its liabilities.

EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 22 -
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.

Other financial liabilities

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 23 -
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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
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.

1.17
Retirement benefits

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

1.18
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 leased asset are consumed.

EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 24 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation and amortisation

The depreciation and amortisation policies have been set according to management's experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation and amortisation charged during the year was £2,692,628 which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

 

Amortisation on goodwill is being spread over 20 years. The directors have considered the length of historical customer contracts, and considered the approximate amount of time the group expects to receive benefits from the acquisiton of goodwill. Amortisation for the year totalled £1,474,019.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Services
66,641,859
51,693,456
2024
2023
£
£
Turnover analysed by geographical market
UK Sales
65,984,238
51,048,557
European Sales
657,621
644,899
66,641,859
51,693,456
EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 25 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
5,582
-
Depreciation of owned tangible fixed assets
614,331
321,471
Depreciation of tangible fixed assets held under finance leases
604,278
550,538
Loss/(profit) on disposal of tangible fixed assets
897
(133,131)
Amortisation of intangible assets
1,474,019
1,408,504
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
2
2
2
2
Central
32
22
-
-
Contracts and own fleet
298
304
-
-
Storage
113
108
-
-
Total
445
436
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
17,343,358
13,951,687
-
0
-
0
Social security costs
1,553,145
1,218,718
-
-
Pension costs
767,002
275,730
-
0
-
0
19,663,505
15,446,135
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
108,417
120,583
Company pension contributions to defined contribution schemes
-
612
108,417
121,195
EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
6
Directors' remuneration
(Continued)
- 26 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023 - 2)

7
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,600
6,000
Audit of the financial statements of the company's subsidiaries
38,900
34,600
45,500
40,600
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,738,922
1,382,464
Other interest on financial liabilities
447,881
388,238
2,186,803
1,770,702
Other finance costs:
Interest on finance leases and hire purchase contracts
192,293
133,630
Total finance costs
2,379,096
1,904,332
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,130,491
459,237
Adjustments in respect of prior periods
93,244
78,146
Total current tax
1,223,735
537,383
Deferred tax
Origination and reversal of timing differences
(81,675)
320,525
Total tax charge
1,142,060
857,908
EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
9
Taxation
(Continued)
- 27 -

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
2,182,163
1,853,749
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.01%)
545,541
426,548
Tax effect of expenses that are not deductible in determining taxable profit
76,776
335,775
Adjustments in respect of prior years
94,144
147,010
Research and development tax credit
-
0
(40,222)
Other non-reversing timing differences
41,269
25,954
Deferred tax adjustments in respect of prior years
2,139
-
0
Fixed asset differences
382,191
(37,157)
Taxation charge
1,142,060
857,908
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
435,470
414,600
11
Intangible fixed assets
Group
Goodwill
Patents & licences
Customer list
Total
£
£
£
£
Cost
At 1 December 2023
27,776,412
125,000
-
0
27,901,412
Additions
-
0
6,000
903,681
909,681
At 30 November 2024
27,776,412
131,000
903,681
28,811,093
Amortisation and impairment
At 1 December 2023
2,432,256
-
0
-
0
2,432,256
Amortisation charged for the year
1,408,504
12,800
52,715
1,474,019
At 30 November 2024
3,840,760
12,800
52,715
3,906,275
Carrying amount
At 30 November 2024
23,935,652
118,200
850,966
24,904,818
At 30 November 2023
25,344,156
125,000
-
0
25,469,156
EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
11
Intangible fixed assets
(Continued)
- 28 -
The company had no intangible fixed assets at 30 November 2024 or 30 November 2023.
EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 29 -
12
Tangible fixed assets
Group
Freehold buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 December 2023
342,398
6,675
4,311,349
1,412,265
470,859
467,077
7,010,623
Additions
102,971
54,020
548,977
83,072
94,763
72,130
955,933
Disposals
-
0
-
0
(25,500)
-
0
(1,185)
(61,590)
(88,275)
At 30 November 2024
445,369
60,695
4,834,826
1,495,337
564,437
477,617
7,878,281
Depreciation and impairment
At 1 December 2023
79,293
-
0
229,026
522,180
198,949
36,740
1,066,188
Depreciation charged in the year
35,873
5,378
666,592
236,504
152,739
121,523
1,218,609
Eliminated in respect of disposals
-
0
-
0
(19,103)
-
0
-
0
(61,590)
(80,693)
At 30 November 2024
115,166
5,378
876,515
758,684
351,688
96,673
2,204,104
Carrying amount
At 30 November 2024
330,203
55,317
3,958,311
736,653
212,749
380,944
5,674,177
At 30 November 2023
263,105
6,675
4,082,323
890,085
271,910
430,337
5,944,435
The company had no tangible fixed assets at 30 November 2024 or 30 November 2023.
EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
12
Tangible fixed assets
(Continued)
- 30 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Total assets
2,814,308
3,108,928
-
-

Freehold land and buildings with a carrying amount of £3,024,489 (2023 - £2,858,665) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
34,415,883
34,415,883
Unlisted investments
495,200
495,200
-
0
-
0
495,200
495,200
34,415,883
34,415,883
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 December 2023 and 30 November 2024
495,200
Carrying amount
At 30 November 2024
495,200
At 30 November 2023
495,200
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2023 and 30 November 2024
34,415,883
Carrying amount
At 30 November 2024
34,415,883
At 30 November 2023
34,415,883
EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 31 -
14
Subsidiaries

Details of the company's subsidiaries at 30 November 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Expect Distribution Limited
Premier Point, Premier Gate, Staithgate Lane, Bradford, BD6 1DW
Ordinary
80.00
20.00
Expect Group Limited
Premier Point, Premier Gate, Staithgate Lane, Bradford, BD6 1DW
Ordinary
100.00
-
Pallet Plus Limited
Premier Point, Premier Gate, Staithgate Lane, Bradford, BD6 1DW
Ordinary
100.00
-
Crossways Commercials Limited
Premier Point, Premier Gate, Staithgate Lane, Bradford, BD6 1DW
Ordinary
0
100.00

Expect Group Limited and Crossways Commercials Limited were entitled to exemption from audit under section 479A of the companies act 2006 relating to subsidiary companies. Expect Distribution Group Limited has provided a guarantee under section 479C.

 

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
161,187
124,221
-
0
-
0
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
8,696,909
11,027,671
-
0
-
0
Unpaid share capital
1,457
1,457
-
0
-
0
Amounts owed by group undertakings
-
-
150,000
150,000
Other debtors
262,980
73,884
22
-
0
Prepayments and accrued income
1,713,934
1,447,094
-
0
-
0
10,675,280
12,550,106
150,022
150,000

Amounts owed by group undertakings are repayable on demand.

EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 32 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
1,125,000
4,533,507
1,125,000
1,125,000
Obligations under finance leases
20
826,317
971,377
-
0
-
0
Other borrowings
19
59,175
178,243
-
0
-
0
Trade creditors
7,745,105
6,387,168
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
2,347,683
8,382,424
Corporation tax payable
1,401,296
505,839
95,042
-
0
Other taxation and social security
1,933,094
1,831,843
-
-
Other creditors
3,803,753
687,738
3,315,125
-
0
Accruals and deferred income
2,842,210
1,715,609
-
0
-
0
19,735,950
16,811,324
6,882,850
9,507,424

Amounts owed to group undertakings are repayable on demand.

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
10,532,787
11,657,787
10,532,787
11,657,787
Obligations under finance leases
20
987,807
1,419,038
-
0
-
0
Other creditors
7,232,326
11,692,661
7,232,326
11,692,661
18,752,920
24,769,486
17,765,113
23,350,448
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
11,657,787
12,782,787
11,657,787
12,782,787
Bank overdrafts
-
0
3,408,507
-
0
-
0
Other loans
59,175
178,243
-
0
-
0
11,716,962
16,369,537
11,657,787
12,782,787
Payable within one year
1,184,175
4,711,750
1,125,000
1,125,000
Payable after one year
10,532,787
11,657,787
10,532,787
11,657,787

The long-term loans are secured by fixed and floating charges over the freehold and leasehold property, including fixtures and fittings that Expect Distribution Group hold and may hold in the future.

EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
19
Loans and overdrafts
(Continued)
- 33 -

The group will repay loans at £104,166,67 per month. Interest is charged on the loans as follows:-

Facility A - 6.25% above LIBOR per annum

Facility B - 6.75% above LIBOR per annum

Other loans are in relation to an invoice discounting facility. Amounts are all due within one year.

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
934,340
1,135,816
-
0
-
0
In two to five years
1,081,211
1,583,739
-
0
-
0
2,015,551
2,719,555
-
-
Less: future finance charges
(201,427)
(329,140)
-
0
-
0
1,814,124
2,390,415
-
0
-
0

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

21
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,240,292
1,321,967
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 December 2023
1,321,967
-
Credit to profit or loss
(81,675)
-
Liability at 30 November 2024
1,240,292
-
EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
21
Deferred taxation
(Continued)
- 34 -

The deferred tax liability set out above is expected to reverse within 5 years and relates to accelerated capital allowances that are expected to mature within the same period.

 

The UK corporation tax rate was 25% throuhgout the year. Deferred tax balances at the reporting date are therefore measured at 25% (2023 - 25%).

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
767,002
275,730

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
511
656
511
656
Ordinary B of £1 each
511
656
511
656
Ordinary C of £1 each
145
145
145
145
Ordinary D of £1 each
22
-
22
-
Ordinary E of £1 each
145
-
145
-
Ordinary F of £1 each
145
-
145
-
1,479
1,457
1,479
1,457

Each share is entitled to one vote in any circumstances. Each share is entitled pari passu to dividend payments or any other distribution, whereas payment of dividend to one class of shares does not automatically entitle holders of all other classes of shares to payment of a divdend.

24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,093,377
1,705,431
-
-
Between two and five years
8,185,651
6,758,314
-
-
In over five years
3,402,317
4,132,450
-
-
12,681,345
12,596,195
-
-
EXPECT DISTRIBUTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 35 -
25
Directors' transactions

Dividends totalling £435,470 (2023 - £414,600) were paid in the year in respect of shares held by the company's directors.

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Directors Loans
-
(39,050)
52,564
13,514
(39,050)
52,564
13,514
26
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,040,103
995,841
Adjustments for:
Taxation charged
1,142,060
857,908
Finance costs
2,379,096
1,904,332
Loss/(gain) on disposal of tangible fixed assets
897
(133,131)
Amortisation and impairment of intangible assets
1,474,019
1,408,504
Depreciation and impairment of tangible fixed assets
1,218,609
872,009
Decrease in provisions
-
(1,856,341)
Movements in working capital:
(Increase)/decrease in stocks
(36,966)
10,724
Decrease/(increase) in debtors
1,888,340
(147,459)
Increase in creditors
1,280,519
3,307,584
Cash generated from operations
10,386,677
7,219,971
27
Analysis of changes in net debt - group
1 December 2023
Cash flows
30 November 2024
£
£
£
Cash at bank and in hand
78,720
103,496
182,216
Bank overdrafts
(3,408,507)
3,408,507
-
0
(3,329,787)
3,512,003
182,216
Borrowings excluding overdrafts
(12,961,030)
1,244,068
(11,716,962)
Obligations under finance leases
(2,390,415)
576,291
(1,814,124)
(18,681,232)
5,332,362
(13,348,870)
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