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Company registration number: NI626237
McConaghy Refrigerated Distribution Limited
Financial statements
30 September 2024
McConaghy Refrigerated Distribution Limited
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
McConaghy Refrigerated Distribution Limited
Directors and other information
Directors Mr Richard McConaghy
Mrs Jacqueline McConaghy
Company number NI626237
Registered office 218 Castlecat Road
Derrykeighan
Ballymoney
BT53 8AT
Business address 218 Castlecat Road
Derrykeighan
BT57 8AT
Auditor Paul A. Taylor& Company
Unit 4
12 Spittall Hill
Coleraine
BT52 2BY
Bankers Bank Of Ireland
2 The Diamond
Coleraine
BT52 1DE
Danske
22 The Diamond
Coleraine
BT52 1DE
Solicitors Hastings & Company
6A Charlotte St
Ballymoney
BT53 6AY
McConaghy Refrigerated Distribution Limited
Strategic report
Year ended 30 September 2024
Fair Review of the business
The company operates as a haulier of frozen, chilled and ambient products within the UK and Ireland. Turnover has increased 13.4% to £12,213,689 (2023 £10,768,856). The directors consider the profit on ordinary activities before taxation to be satisfactory and in line with expectations for the years trading. The directors are committed to the continued long term growth of the company and enhancement of shareholder value both through increasing market share and acquisitions when appropriate. Performance in the sector is affected by general economic conditions and more specific factors such as fuel prices. The directors carriy out regular strategic reviews including assessments of market conditions and trends; and activities and performance of competitors.
Financial risk management objectives and policies
The company uses various financial instruments including hire purchase and bank facilites, cash and trade debtors and creditors. Their main purpose is to raise finance for the company's operations, and their existence exposes the company to a number of financial risks. The main risks arising from the company's financial instruments are interest rate risk, credit risk and liquidity risk. The directors review and develop policies for managing each of these risks.
Key performance indicators
Given the business is not complex the directors are of the opinion that analysis using KPIs in the statutory accounts is not necessary for an understanding of the development, performance or position of the business
This report was approved by the board of directors on 10 June 2025 and signed on behalf of the board by:
Mr Richard McConaghy
Director
McConaghy Refrigerated Distribution Limited
Directors report
Year ended 30 September 2024
The directors present their report and the financial statements of the company for the year ended 30 September 2024.
Directors
The directors who served the company during the year were as follows:
Mr Richard McConaghy
Mrs Jacqueline McConaghy
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
The directors are not aware of any significant likely future developments.
Financial instruments
An indication of financial risk exposure is given in the strategic report.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, 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 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 the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 10 June 2025 and signed on behalf of the board by:
Mr Richard McConaghy
Director
McConaghy Refrigerated Distribution Limited
Independent auditor's report to the members of
McConaghy Refrigerated Distribution Limited
Year ended 30 September 2024
Opinion
We have audited the financial statements of McConaghy Refrigerated Distribution Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and notes to the financial statements, 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Emphasis of matter
The company haing exceeded the thresholds for audit in the current year required it's financial statements to be audited for the first time. As a consequence the figures for the comparative year have not been audited.
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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the 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.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 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 (1) the engagement partner ensured audit staff assigned had appropriate skill and competence to identify or recognise non-compliance with laws and regulations (2) we identified laws and regulations applicable to the company through discussions with directors (3) we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and health and safety legislation (4) we assessed the extent of compliance with the laws and regulations identified above through making enquiries of managers and directors and inspection of legal or other correspondence. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - 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. 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. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 auditors 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.
Paul Taylor (Senior Statutory Auditor)
For and on behalf of
Paul A. Taylor& Company
Chartered Accountant and Statutory Auditor
Unit 4
12 Spittall Hill
Coleraine
BT52 2BY
10 June 2025
McConaghy Refrigerated Distribution Limited
Statement of comprehensive income
Year ended 30 September 2024
2024 2023
Note £ £
Turnover 4 12,210,688 10,754,183
Cost of sales ( 1,912,233) ( 1,462,741)
_______ _______
Gross profit 10,298,455 9,291,442
Distribution costs ( 8,553,986) ( 7,866,872)
Administrative expenses ( 506,445) ( 282,583)
Other operating income 5 3,000 14,673
_______ _______
Operating profit 6 1,241,024 1,156,660
Other interest receivable and similar income 9 17,761 -
Interest payable and similar expenses 10 ( 109,911) ( 70,459)
_______ _______
Profit before taxation 1,148,874 1,086,201
Tax on profit 11 ( 325,958) ( 249,942)
_______ _______
Profit for the financial year and total comprehensive income 822,916 836,259
_______ _______
All the activities of the company are from continuing operations.
McConaghy Refrigerated Distribution Limited
Statement of financial position
30 September 2024
2024 2023
Note £ £ £ £
Fixed assets
Intangible assets 13 - -
Tangible assets 14 5,138,440 3,972,404
Investments 15 711,961 603,485
_______ _______
5,850,401 4,575,889
Current assets
Stocks 16 500 21,000
Debtors 17 2,879,157 2,536,878
Cash at bank and in hand 1,276,600 1,488,096
_______ _______
4,156,257 4,045,974
Creditors: amounts falling due
within one year 19 ( 3,380,868) ( 3,124,171)
_______ _______
Net current assets 775,389 921,803
_______ _______
Total assets less current liabilities 6,625,790 5,497,692
Creditors: amounts falling due
after more than one year 20 ( 1,539,230) ( 1,400,012)
Provisions for liabilities 22 ( 1,198,848) ( 910,884)
_______ _______
Net assets 3,887,712 3,186,796
_______ _______
Capital and reserves
Called up share capital 27 100 100
Profit and loss account 28 3,887,612 3,186,696
_______ _______
Shareholders funds 3,887,712 3,186,796
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 10 June 2025 , and are signed on behalf of the board by:
Mr Richard McConaghy
Director
Company registration number: NI626237
McConaghy Refrigerated Distribution Limited
Statement of changes in equity
Year ended 30 September 2024
Called up share capital Profit and loss account Total
£ £ £
At 1 October 2022 100 2,490,437 2,490,537
Profit for the year 836,259 836,259
_______ _______ _______
Total comprehensive income for the year - 836,259 836,259
Dividends paid and payable ( 140,000) ( 140,000)
_______ _______ _______
Total investments by and distributions to owners - ( 140,000) ( 140,000)
_______ _______ _______
At 30 September 2023 and 1 October 2023 100 3,186,696 3,186,796
Profit for the year 822,916 822,916
_______ _______ _______
Total comprehensive income for the year - 822,916 822,916
Dividends paid and payable ( 122,000) ( 122,000)
_______ _______ _______
Total investments by and distributions to owners - ( 122,000) ( 122,000)
_______ _______ _______
At 30 September 2024 100 3,887,612 3,887,712
_______ _______ _______
McConaghy Refrigerated Distribution Limited
Statement of cash flows
Year ended 30 September 2024
2024 2023
Note £ £
Cash flows from operating activities
Profit for the financial year 822,916 836,259
Adjustments for:
Depreciation of tangible assets 883,847 715,010
Fair value adjustment of investment property ( 11,672) 4,887
Government grant income ( 3,000) ( 14,673)
Other interest receivable and similar income ( 17,761) -
Interest payable and similar expenses 109,911 70,459
Gain/(loss) on disposal of tangible assets 1,316 ( 67,212)
Tax on profit 325,958 249,942
Accrued expenses/(income) ( 130,953) 66,352
Changes in:
Stocks 20,500 ( 21,000)
Trade and other debtors ( 342,279) ( 114,423)
Trade and other creditors 771,037 20,300
_______ _______
Cash generated from operations 2,429,820 1,745,901
Interest paid ( 109,911) ( 70,459)
Interest received 17,761 -
Tax paid ( 42,674) ( 64,292)
_______ _______
Net cash from operating activities 2,294,996 1,611,150
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 2,069,027) ( 1,717,304)
Proceeds from sale of tangible assets 29,500 207,233
Cash advances and loans granted ( 108,476) ( 299,962)
_______ _______
Net cash used in investing activities ( 2,148,003) ( 1,810,033)
_______ _______
Cash flows from financing activities
Proceeds from borrowings 958,716 ( 9,810)
Government grant income 3,000 14,673
Payment of finance lease liabilities ( 770,861) 748,827
Equity dividends paid ( 122,000) ( 140,000)
_______ _______
Net cash from financing activities 68,855 613,690
_______ _______
Net increase/(decrease) in cash and cash equivalents 215,848 414,807
Cash and cash equivalents at beginning of year 18 1,053,998 639,191
_______ _______
Cash and cash equivalents at end of year 18 1,269,846 1,053,998
_______ _______
McConaghy Refrigerated Distribution Limited
Notes to the financial statements
Year ended 30 September 2024
1. General information
The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is 218 Castlecat Road, Derrykeighan, Ballymoney, BT53 8AT.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue for provision of services is recognised when it is probable that an economic benefit will flow to the entity; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Exceptional items
Exceptional items are disclosed separately in the financial statements in order to provide further understanding of the financial performance of the entity. They are material items of income or expense that have been shown separately because of their nature or amount.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill - 20 % straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fittings fixtures and equipment - 15 % reducing balance
Motor vehicles - 20 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Investment property
Investment property is measured initially at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Hire purchase and finance leases
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
Turnover is entirely derived from the companys principal activity of providing reridgerated transportation of chilled goods.
The turnover is attributable to the principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024 2023
£ £
United Kingdom 11,384,207 9,566,776
Europe 829,242 1,202,080
_______ _______
12,213,449 10,768,856
_______ _______
5. Other operating income
2024 2023
£ £
Government grant income 3,000 14,673
_______ _______
6. Operating profit
Operating profit is stated after charging/(crediting):
2024 2023
£ £
Depreciation of tangible assets 883,847 715,010
(Gain)/loss on disposal of tangible assets 1,316 ( 67,212)
Fair value adjustments to investment property ( 11,672) 4,887
Fees payable for the audit of the financial statements 6,000 -
_______ _______
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024 2023
Administrative and logistics 14 11
Transport 43 39
Maintenance 4 4
_______ _______
61 54
_______ _______
The aggregate payroll costs incurred during the year were:
2024 2023
£ £
Wages and salaries 2,277,506 2,078,446
Social security costs 211,461 186,771
Other pension costs 148,248 141,287
_______ _______
2,637,215 2,406,504
_______ _______
8. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2024 2023
£ £
Remuneration 48,625 43,614
Company contributions to pension schemes in respect of qualifying services 100,000 100,000
_______ _______
148,625 143,614
_______ _______
The number of directors who accrued benefits under company pension plans was as follows:
2024 2023
Number Number
Defined contribution plans 2 2
_______ _______
9. Other interest receivable and similar income
2024 2023
£ £
Bank deposits 17,761 -
_______ _______
10. Interest payable and similar expenses
2024 2023
£ £
Other loans made to the company:
Finance leases and hire purchase contracts 109,911 70,459
_______ _______
109,911 70,459
_______ _______
11. Tax on profit
Major components of tax expense
2024 2023
£ £
Current tax:
UK current tax expense 37,994 43,017
_______ _______
Deferred tax:
Origination and reversal of timing differences 287,964 206,925
_______ _______
Tax on profit 325,958 249,942
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25.00 % (2023: 25.00%).
2024 2023
£ £
Profit before taxation 1,148,874 1,086,201
_______ _______
Profit multiplied by rate of tax 287,219 271,550
Effect of expenses not deductible for tax purposes 8,330 5,779
Effect of capital allowances and depreciation ( 256,168) ( 233,921)
Deferred Tax Movemeent 287,964 206,925
Marginal rate relief ( 1,359) ( 391)
_______ _______
Tax on profit 325,986 249,942
_______ _______
12. Dividends
Equity dividends
2024 2023
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 122,000 140,000
_______ _______
13. Intangible assets
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024 165,000
_______
Amortisation
At 1 October 2023 and 30 September 2024 165,000
_______
Carrying amount
At 30 September 2024 -
_______
At 30 September 2023 -
_______
14. Tangible assets
Freehold properties Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £
Cost or valuation
At 1 October 2023 238,328 100,345 5,762,469 6,101,142
Additions - 4,583 2,064,444 2,069,027
Disposals - - ( 168,350) ( 168,350)
Fair value adjustment 11,672 - - 11,672
_______ _______ _______ _______
At 30 September 2024 250,000 104,928 7,658,563 8,013,491
_______ _______ _______ _______
Depreciation
At 1 October 2023 - 47,642 2,081,096 2,128,738
Charge for the year - 7,008 876,839 883,847
Disposals - - ( 137,534) ( 137,534)
_______ _______ _______ _______
At 30 September 2024 - 54,650 2,820,401 2,875,051
_______ _______ _______ _______
Carrying amount
At 30 September 2024 250,000 50,278 4,838,162 5,138,440
_______ _______ _______ _______
At 30 September 2023 238,328 52,703 3,681,373 3,972,404
_______ _______ _______ _______
Investment property
Included within freehold property above is investment property measured at fair value as follows:
£
At 1 October 2023 238,328
Fair value adjustments 11,672
_______
At 30 September 2024 250,000
_______
The investment property is valued by the directors by reference to advertised market value of similar properties in the locality.
Obligations under finance leases
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Motor vehicles
£
At 30 September 2024 3,435,959
_______
At 30 September 2023 2,444,325
_______
15. Investments
Other loans Total
£ £
Cost
At 1 October 2023 603,485 603,485
Additions 108,476 108,476
_______ _______
At 30 September 2024 711,961 711,961
_______ _______
Impairment
At 1 October 2023 - -
_______ _______
30 September 2024 - -
_______ _______
Carrying amount
At 30 September 2024 711,961 711,961
_______ _______
At 30 September 2023 603,485 603,485
_______ _______
16. Stocks
2024 2023
£ £
Finished goods and goods for resale 500 21,000
_______ _______
17. Debtors
2024 2023
£ £
Trade debtors 2,496,834 2,237,264
Prepayments and accrued income 340,048 299,614
Other debtors 42,275 -
_______ _______
2,879,157 2,536,878
_______ _______
Trade Debtors include amounts owing by directors of £7200 and owing by Fridge Freight Ireland Ltd, a company under common control, of £74,318. Transactions are on normal commercial terms.
18. Cash and cash equivalents
2024 2023
£ £
Cash at bank and in hand 1,276,600 1,488,096
Bank overdrafts ( 6,754) ( 434,098)
_______ _______
1,269,846 1,053,998
_______ _______
19. Creditors: amounts falling due within one year
2024 2023
£ £
Bank loans and overdrafts 16,754 444,098
Trade creditors 2,286,111 1,470,323
Accruals and deferred income 97,195 228,148
Corporation tax 37,904 42,584
Social security and other taxes 229,129 251,920
Obligations under finance leases 689,798 640,394
Director loan accounts - 767
Other creditors 23,977 45,937
_______ _______
3,380,868 3,124,171
_______ _______
Bank overdrafts and borrowings are secured by a floating charge over the assets of the company.
Trade creditors includes an amount owing of £ 92,679 to Fridge Freight Ireland Ltd, a company under common control. Transactions are on normal commercial terms.
20. Creditors: amounts falling due after more than one year
2024 2023
£ £
Bank loans and overdrafts 8,333 18,333
Obligations under finance leases 1,530,897 1,381,679
_______ _______
1,539,230 1,400,012
_______ _______
The company has Bacs facilities of £150,000 extended by Bank of Ireland, terms to be reviewed in December 2026. Assets held as security include floating debenture and a commercial financcial guarantee provided by a director.
21. Obligations under finance leases
Company lessee
The total future minimum lease payments under finance lease agreements are as follows:
2024 2023
£ £
Not later than 1 year 689,798 640,394
Later than 1 year and not later than 5 years 1,530,897 1,381,679
_______ _______
2,220,695 2,022,073
_______ _______
Present value of minimum lease payments 2,220,695 2,022,073
_______ _______
Finance lease payments represent rentals payable for haulage fleet vehicles. Leases include purchase options at the end of the lease and the average term is 5 years. No restriction is placed on the use of the vehicles during the lease and all leases are on a fixed repayment basis with no arrangements for contingent rental payments.
22. Provisions
Deferred tax (note 23) Total
£ £
At 1 October 2023 910,884 910,884
Additions 287,964 287,964
_______ _______
At 30 September 2024 1,198,848 1,198,848
_______ _______
23. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024 2023
£ £
Included in provisions (note 22) 1,198,848 910,884
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2024 2023
£ £
Accelerated capital allowances 1,198,848 910,884
_______ _______
24. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 148,248 (2023: £ 141,287 ).
25. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2024 2023
£ £
Recognised in other operating income:
Government grants recognised directly in income 3,000 14,673
_______ _______
26. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2024 2023
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 2,496,834 2,237,264
Other debtors 39,400 -
Cash at bank and in hand 1,276,600 1,488,096
_______ _______
3,812,834 3,725,360
_______ _______
Financial liabilities measured at amortised cost
Bank and other loans 2,247,066 2,485,271
Trade creditors 2,286,111 1,470,323
_______ _______
4,533,177 3,955,594
_______ _______
Financial assets measured at fair value through profit or loss consist of fixed asset investments in property.
27. Called up share capital
Issued, called up and fully paid
2024 2023
No £ No £
Ordinary shares shares of £ 1.00 each 100 100 100 100
_______ _______ _______ _______
28. Reserves
Profit and loss account:This reserve records retained earnings and accumulated losses .
29. Analysis of changes in net debt
At 1 October 2023 Cash flows At 30 September 2024
£ £ £
Cash and cash equivalents 1,488,096 (211,496) 1,276,600
Bank overdrafts (434,098) 427,344 (6,754)
Debt due within one year (651,161) (48,637) (699,798)
Debt due after one year (1,400,012) (139,218) (1,539,230)
_______ _______ _______
( 997,175) 27,993 ( 969,182)
_______ _______ _______
30. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value Balance owed by/(owed to)
2024 2023 2024 2023
£ £ £ £
Castlecatt Properties Ltd 108,476 299,962 711,961 603,485
_______ _______ _______ _______
Sales of ££97504 and purchases of £474,147 were transacted with Fridge Freight Ireland Ltd, a company under common control. Rent of £30,000 per annum is paid to the directors for use of the commercial premises occupied by the company.
31. Prior Year Adjustments
In the current year the company adopted the policy of accounting for deferred taxation. As a consequence the 2023 profit and loss taxation charge and the balance sheet retained profits brought forward figure were re-stated as set out below:
As previously As re-stated
reported
01-10-2022 01-10-2022
Capital and reserves
Profit and loss account 3,194,396 2,490,437
Provisions for liabilities
Deferred tax Nil 703,959
_______ _______
3,194,396 3,194,396
_______ _______