| REGISTERED NUMBER: |
| Financial Statements |
| for the Year Ended 31 May 2024 |
| for |
| Emmex Freight Services Ltd. |
| REGISTERED NUMBER: |
| Financial Statements |
| for the Year Ended 31 May 2024 |
| for |
| Emmex Freight Services Ltd. |
| Emmex Freight Services Ltd. (Registered number: 03424463) |
| Contents of the Financial Statements |
| for the Year Ended 31 May 2024 |
| Page |
| Company Information | 1 |
| Balance Sheet | 2 |
| Notes to the Financial Statements | 3 |
| Emmex Freight Services Ltd. |
| Company Information |
| for the Year Ended 31 May 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditors |
| Medway House |
| Fudan Way |
| Teesdale Business Park |
| Stockton on Tees |
| TS17 6EN |
| Emmex Freight Services Ltd. (Registered number: 03424463) |
| Balance Sheet |
| 31 May 2024 |
| 2024 | 2023 |
| as restated |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 4 |
| CURRENT ASSETS |
| Stocks |
| Debtors | 5 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 6 |
| NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
7 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital |
| Retained earnings | 122,063 |
| In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Emmex Freight Services Ltd. (Registered number: 03424463) |
| Notes to the Financial Statements |
| for the Year Ended 31 May 2024 |
| 1. | STATUTORY INFORMATION |
| Emmex Freight Services Ltd. is a |
| 2. | ACCOUNTING POLICIES |
| BASIS OF PREPARING THE FINANCIAL STATEMENTS |
| CHANGE IN REPORTING PERIOD |
| In the previous financial period the company extended its reporting period to end on 31 May 2023 to align with the financial year end of related companies. Figures for the year ended 31 May 2024 are therefore not entirely comparable with figures for the period ended 31 May 2023. |
| GOING CONCERN |
| Emmex Freight Services Ltd exhibited a loss after tax of £(98,290) during the year ended 31 May 2024 with net current liabilities at that date being £(62,027) albeit with net assets being £24,773. |
| It is noted that Emmex Freight Services Ltd (the Company) is a member of the M.J. Hickey Plant Hire & Contracts Limited group of companies (the Group) and - in the context of the net current liability position detailed above - the Company receives financial support from other members of the Group when required. The Directors of the Company hence consider that the going concern position of the Company should be assessed in the context of the going concern position of the wider Group. |
| Future Developments |
| The Group is currently in negotiations with a third party regarding the potential sale of part of a property that is held by the ultimate parent company, M.J. Hickey Plant Hire & Contracts Limited. The Group has entered into an exclusivity agreement with the third party and is confident that exchange of conditional contracts should occur by the end of August 2025, at which point a non-refundable deposit of £1m becomes receivable by the Group. Completion of the transaction will occur once the relevant conditions have been satisfied, which it is expected will take at least twelve months following exchange of contracts. |
| The Group has also entered into initial discussions with HM Revenue and Customs [HMRC] regarding arranging a time to pay arrangement in respect of certain liabilities of M.J. Hickey Plant Hire & Contracts Limited, R. Thornton & Co. Ltd and Emmex Freight Services Ltd. The total value of the relevant liabilities is expected to be circa £1.2m of which circa £150k relates to the Company. The Group and Company are confident that an agreement will be reached with HMRC such that repayment of substantially all of the relevant liabilities will be linked to successful completion of the Group property transaction discussed above. |
| The Company and Group have prepared budgets for the year ending 31 May 2026 along with associated cashflow forecasts allowing for expectations regarding the property transaction and HMRC matters discussed above as well as allowing for an uplift in performance levels and operational cash generation (as approximated by EBITDA) compared to recent and contemporary financial performance. |
| Emmex Freight Services Ltd. (Registered number: 03424463) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2024 |
| Following on from the improvement in EBITDA performance noted since the balance sheet date for both the Company and the Group the Company and Group are confident that the budgets and associated cashflow forecasts should be achievable allowing for expected activity levels and operational plans. |
| As regards activity levels the Group has recently converted circa £1m of prospective contract work into confirmed jobs with a further £0.5m of non-forecast work also having been obtained. |
| As regards operational plans these include continuing to review Group operations, at all levels, to further raise business efficiency going forward. This process will include: identifying and implementing additional cost savings where possible; the continued improvement of internal business processes; and a strengthened focus on job costing, margin management and customer service levels. |
| It is noted that the budgets and cashflow forecasts show that the Company and Group may (if outcomes differ from those in the budgets and cashflow forecasts) require some additional funding during the year ending 31 May 2026 over and above the headroom anticipated on existing finance facilities (which it is expected will continue for the foreseeable future on unchanged terms). |
| Should additional funding be required the Company and Group are considering a number of options including working capital management along with the possible cash realisation of equity on plant and machinery assets via refinancing transactions where appropriate and are confident that additional funding will be accessible as required. |
| Overall, noting the fact that the Company receives financial support from other members of the Group when required and noting the position and uncertainties that exist at present in connection with: |
| - the Group property transaction; |
| - the discussions with HMRC; and |
| - the Company and Group budgets and cashflow forecasts through to 31 May 2026 (and associated possible |
| additional funding requirements); |
| then the Directors have concluded that these circumstances in aggregate represent a material uncertainty that may cast significant doubt upon the Company's ability to continue as a going concern and that, therefore, the Company may be unable to realise its assets and discharge its liabilities in the normal course of business. |
| As noted above the Group is confident that exchange of conditional contracts should occur by the end of August 2025 regarding the Group property transaction and furthermore the Group and Company are confident that that an agreement will be reached with HMRC that links repayment of substantially all of the relevant liabilities to successful completion of the Group property transaction. |
| As also noted above the Company and Group are moreover confident that the budgets should be achievable allowing for expected activity levels and operational plans and they are also considering a number of options (including working capital management and possible refinancing of plant and machinery assets) to raise additional funding should this be required. |
| Subject to the uncertainties noted above the Directors hence have a reasonable expectation that the Company has adequate resources - to include financial support from other members of the Group when required - to continue in operational existence for the foreseeable future (this being a period of at least twelve months from the date of approval of these financial statements). As such the Company therefore continues to adopt the going concern basis in preparing these financial statements. |
| TURNOVER |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| TANGIBLE FIXED ASSETS |
| Plant and machinery - 15% reducing balance. |
| Computer equipment - 25% reducing balance. |
| Emmex Freight Services Ltd. (Registered number: 03424463) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| STOCKS |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| 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. |
| HIRE PURCHASE AND LEASING COMMITMENTS |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| INVOICE FINANCING |
| The company has an invoice financing facility in place for certain trade debtors. The gross amount of financed debts is included in trade debtors, with the proceeds received from the finance company being included in creditors: amounts falling due within one year. |
| SHARE CAPITAL |
| Called up share capital is allotted, issued and fully paid. |
| 3. | EMPLOYEES AND DIRECTORS |
| The average number of employees during the year was |
| Emmex Freight Services Ltd. (Registered number: 03424463) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2024 |
| 4. | TANGIBLE FIXED ASSETS |
| Plant and | Computer |
| machinery | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 June 2023 |
| Additions |
| At 31 May 2024 |
| DEPRECIATION |
| At 1 June 2023 |
| Charge for year |
| At 31 May 2024 |
| NET BOOK VALUE |
| At 31 May 2024 |
| At 31 May 2023 |
| 5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| 6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Bank loans and overdrafts |
| Hire purchase contracts |
| Trade creditors |
| Amounts owed to group undertakings |
| Taxation and social security |
| Other creditors |
| 7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Hire purchase contracts |
| Other creditors |
| Emmex Freight Services Ltd. (Registered number: 03424463) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2024 |
| 8. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Bank overdraft |
| Hire purchase contracts | 977,170 | 1,160,890 |
| Other creditors | 193,931 | 121,382 |
| In addition, obligations under hire purchase agreements are secured on the relevant assets. |
| The bank overdraft and other creditor amounts are secured by charge dated 28 August 2007 that contains fixed and floating charges over the undertaking and all property and assets present and future. |
| Emmex Freight Services Ltd. (Registered number: 03424463) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2024 |
| 9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
| The Report of the Auditors was unqualified. |
| Michael Moran (Senior Statutory Auditor) |
| for and on behalf of Robson Laidler Accountants Limited t/a Tindle's |
| Chartered Accountants and Statutory Auditors |
| Material uncertainty related to going concern |
| We draw attention to note 2 in the financial statements, which - in the Going Concern section - indicates that the company exhibited a loss of £(98,290) during the year ended 31 May 2024 with net current liabilities at that date being £(62,027) albeit with net assets being £24,773. |
| It is also noted in note 2 that Emmex Freight Services Ltd (the Company) is a member of the M.J. Hickey Plant Hire & Contracts Limited group of companies (the Group) and that the Company receives financial support from other members of the Group when required. The directors of the Company hence consider that the going concern position of the Company should be assessed in the context of the going concern position of the wider Group. |
| It is noted that the Future Developments subsection of the Going Concern narrative refers to a number of matters that the directors consider are relevant regarding the future of the Company including: |
| - | a potential Group property disposal transaction which has now entered exclusivity; |
| - | initial discussions having been entered into between the Group and HM Revenue and Customs regarding a time to pay arrangement for certain liabilities; |
| - | post year end performance, activity levels and operational plans; |
| - | the positions showing in the Company and Group budgets and cashflow forecasts and - if outcomes differ from those in the budgets and cashflow forecasts - the fact that the Company and Group may require some additional funding during the year ending 31 May 2026 over and above the headroom on existing finance facilities (which the directors expect will continue for the foreseeable future on unchanged terms); and |
| - | the fact that the directors are confident that additional funding will be accessible as required from a number of options that are under consideration. |
| As stated in note 2, these events or conditions, along with the other matters as set forth in note 2, 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. |
| 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. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| 10. | CONTINGENT LIABILITIES |
| Emmex Freight Services is a guarantor of a hire purchase obligation of its immediate parent company R Thornton & Co Limited. The relevant obligation outstanding from R Thornton & Co to the lender at the balance sheet date was circa £900,000. |
| Emmex Freight Services Ltd. (Registered number: 03424463) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2024 |
| 11. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following loans to directors subsisted during the periods ended 31 May 2024 and 31 May 2023. No interest was charged and the balances were unsecured with no fixed repayment terms: |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Balance outstanding at the start of the period | - | 16,083 |
| Advances in the year | - | - |
| Repayments in the year | - | (16,083 | ) |
| Balance outstanding at the end of the period | - | - |
| 12. | RELATED PARTY DISCLOSURES |
| At the balance sheet date the immediate parent company was R. Thornton & Co. Ltd and the ultimate parent company was M.J. Hickey Plant Hire & Contracts Limited. The parent of the smallest group of which Emmex Freight Services Ltd is a member and for which consolidated financial statements are drawn up is M.J. Hickey Plant Hire & Contracts Limited, a company incorporated in England and Wales with a registered office at Linton Industrial Estate, Linton, Morpeth, Northumberland, NE61 5SD. |
| The company has taken advantage of the exemption contained within FRS 102 paragraph 1AC .35 not to disclose transactions with other 100% group companies. |
| 13. | POST BALANCE SHEET EVENTS |
| Since the balance sheet date the company has purchased and disposed of various tangible fixed assets in the normal course of trading. |
| In addition, the company has successfully completed the process of transferring to a new invoice finance provider since the balance sheet date. |