| REGISTERED NUMBER: 15350404 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements |
| for the Period 14 December 2023 to 31 December 2024 |
| for |
| TruckEast Holdings Limited |
| REGISTERED NUMBER: 15350404 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements |
| for the Period 14 December 2023 to 31 December 2024 |
| for |
| TruckEast Holdings Limited |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Contents of the Consolidated Financial Statements |
| for the Period 14 December 2023 to 31 December 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 5 |
| Report of the Independent Auditors | 8 |
| Consolidated Statement of Comprehensive Income | 12 |
| Consolidated Balance Sheet | 13 |
| Company Balance Sheet | 14 |
| Consolidated Statement of Changes in Equity | 15 |
| Company Statement of Changes in Equity | 16 |
| Consolidated Cash Flow Statement | 17 |
| Notes to the Consolidated Cash Flow Statement | 18 |
| Notes to the Consolidated Financial Statements | 19 |
| TruckEast Holdings Limited |
| Company Information |
| for the Period 14 December 2023 to 31 December 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Eldo House |
| Kempson Way |
| Suffolk Business Park |
| Bury St Edmunds |
| Suffolk |
| IP32 7AR |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Group Strategic Report |
| for the Period 14 December 2023 to 31 December 2024 |
| The Directors present their strategic report for the year ended 31 December 2024. |
| The parent company was incorporated on 14 December 2023 and commenced trading on 3 May 2024 when it undertook a share for share transfer with a company under common control. |
| REVIEW OF BUSINESS |
| Profitability at the gross margin level has been maintained by focusing on margins through efficiency and productivity, improvement of customer satisfaction and control of the Group's overheads. The Group continued its policy of investment in the work environment and training of its employees. |
| Northampton re-development is now completed with new staff offices, facilities, two additional truck workshop bays, service pit and automated wash facilities. |
| The Group operated from 18 locations across the East Midlands and East Anglia, and the Group's financial plans for 2025 anticipate continued growth and profitability. |
| FUTURE DEVELOPMENTS |
| The commercial industry will experience a large change over the coming years with the move to Battery Electric Vehicles (BEV). Development of battery technology and more importantly the infrastructure to charge commercial vehicles,will have a huge effect on where and how these vehicles can be operated by the consumer moving forward. We will monitor this situation closely and have started a programme installing suitable power infrastructure in certain sites, the tooling and training of staff as required to accommodate this. |
| Whilst the Group has concentrated on its core activities as a distributor of Scania trucks and associated aftermarket services for trucks, buses and coaches, it continues to expand its non-franchise activities. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The current uncertainties around the general economic climate have impacted the commercial vehicle and distribution market, with demand expected to fall back from previous levels, present the principal risks to the . |
| Group. |
| The general UK economic climate remains flat and recent budget announcements will add additional costs to the business going forward. World events continue to be a risk going forward. |
| New Vehicle Supply |
| New Vehicle lead times have normalised to 3 months. Competition between manufacturers has increased through new models being released and pricing strategy. |
| Used Vehicle Market |
| The increased volume of available used vehicles for sale is driving down market values and is therefore, likely to impact residual values within the business contingent liability and used vehicle margins. |
| The directors of the Group have taken all actions necessary to mitigate this including continuous monitoring. |
| Changing Vehicle Parc |
| Aftersales revenue continue to be variable mainly due to replacement vehicles requiring less hours and the new sales fleet moving to other manufacturers based on previous lead times. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Group Strategic Report |
| for the Period 14 December 2023 to 31 December 2024 |
| PRINCIPAL RISKS AND UNCERTAINTIES (CONTINUED) |
| KEY PERFORMANCE INDICATORS |
| The Company measures gross margin as a key indicator of ongoing profitability: |
| - New vehicle margin in 2024 was 2.51% (2023: 2.12%). |
| - Other operational margin in 2024 was 47.25% (2023: 46.05%). |
| SECTION 172 (2) STATEMENT |
| The board of directors of TruckEast Limited consider, both individually and collectively, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole, and in doing so have regard amongst other matters to:- |
| a) The likely consequences of any decision in the long term |
| The long term success of the Group is always considered when making strategic decisions. When making strategic decisions, the directors consider a number of factors including the impact of fluidity, the Groups reputation and the impact on the Group's employees. |
| b) The interests of the Group's employees |
| The Grouphas an experienced, diverse and dedicated workforce and they are recognised as a key asset of the business. Therefore it is important that we continue to create the right environment to encourage and create opportunities for individuals and teams to realise their full potential. The Group is committed to staff development through coaching, mentoring and training and is demonstrated by its commitment to training for all staff, irrespective of position and role. The Group continues to encourage applicants through the modern apprenticeship scheme who then progress through the Scania training programme. The Group continues to encourage promotion from within. |
| c) The need to foster the Group's business relationships with suppliers, customers and others |
| The Group is committed to conducting business with integrity and in a socially responsible and sustainable manner and expects its suppliers and customers to share in this commitment. The Group's engagement with customers includes close relationships with key account managers, through social media and the website. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Group Strategic Report |
| for the Period 14 December 2023 to 31 December 2024 |
| SECTION 172(1) STATEMENT (CONTINUED) |
| d) The impact of the Group's operations on the community and the environment |
| The Group has adopted the Scania Sustainability Commitment which involves the worldwide Scania community coming together towards a common objective. This is an ongoing objective that not only focuses on sustainable transport, but also includes other factors such as staff wellbeing, the environment, and the impact on local communities. Staff are invited to contribute ideas through regular sustainability roadshows and through their local sustainability champion - many of these have been adopted on a local level. |
| With continuous efforts to drive down our carbon footprint the Group has improved visibility through additional monitoring tools and increased our own energy generation through the installation of solar panels at a further three locations. Improved recycling practices have been rolled out across the business including a state-of-the-art compactor that offers zero waste to landfill and the installation of three automated vehicle washes that recycle 90% of their water. |
| The Group has invested in a local farm through the form of carbon credits to enable farming in a more environmentally friendly manner. Furthermore, they have contributed to replenishing the local woodland canopy with 3,000 trees planted within protected land through its One Truck, One Tree initiative. A further 600 trees have been planted in February 2025. |
| Fully committed to its impact on the environment, the Group implemented a new environmental management system and achieved ISO14001:2011 certification. |
| e) The desirability of the Group maintaining a reputation for high standard's of business conduct |
| The Group is a franchisee of Scania, a premium marque in the HGV network and must adhere to Scania's Dealer Development Agreement. All business is conducted in an ethical manner and in accordance with the law. The is Group is registered with the Financial Conduct Authority and acts within the boundaries of the Competition Markets Authority. |
| f) The need to act fairly between members of the Group |
| The Board and management team pay close attention to the bi-annual staff survey, taking note of trends and developments and creating action plans to address any issues arising. A culture of openness and accountability is encouraged. |
| ON BEHALF OF THE BOARD: |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Report of the Directors |
| for the Period 14 December 2023 to 31 December 2024 |
| The directors present their report with the financial statements of the Group for the year ended 31 December 2024. |
| INCORPORATION |
| The group was incorporated on 14 December 2023 and commenced trading on 3 May 2024. |
| PRINCIPAL ACTIVITIES |
| The principal activities of the Group continued to be the retailing of new and used Scania vehicles, the repair and servicing of heavy vehicles and the sale of Scania parts. There have not been any significant changes to the group's activities in the year under review. The directors are not aware, as at the date of this report, of any likely major changes in the group's principal activities in the next year. |
| DIVIDENDS |
| No dividends will be distributed for the period ended 31 December 2024. |
| The profit for the year, after taxation, amounted to £3,324,514. Particulars of dividends paid are detailed in the financial statements. |
| DIRECTORS |
| The directors shown below have held office during the period from 14 December 2023 to the date of this report, |
| J A W Biggin |
| A W Vickery |
| Both the directors, being eligible, offer themselves for election at the forthcoming first Annual General Meeting. |
| RISK MANAGEMENT OBJECTIVES AND POLICIES |
| The Group aims to minimise its financial risk by a number of measures. The directors prepare profit and cash flow forecasts to monitor performance against these and ensure that adequate financing arrangements are in place to meet the requirements shown in the forecasts. Credit risk in respect of trade debtors is minimised by the implementation of credit control policies. |
| DONATIONS |
| During the year the Group made the following contributions: |
| 2024 | 2023 |
| £ | £ |
| Charitable | 20,175 | 3,718 |
| DIRECTORS INDEMNITY |
| The Group's Articles of Association provide, subject to the provisions of UK legislation, an indemnity for directors and officers of the Group in respect of liabilities they may incur in the discharge of their duties, or in the exercise of their powers, including any liabilities relating to the defence of any proceedings brought against them which relate to anything done or omitted, or alleged to have been done or omitted bu them as officers or employees of the Group. |
| Appropriate Director's and Officer's liability insurance cover is in place in respect of all the Group's directors. |
| Appropriate Director's and Officers' liability insurance cover is in place in respect of all the Group's directors. |
| DISABLED EMPLOYEES |
| The Group has procedures relating to the engagement and continuing employment of disabled persons. Where such individuals have the appropriate experience, ability and qualifications, they are offered equal opportunities for training, career development and promotion as are offered to those who are not disabled. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Report of the Directors |
| for the Period 14 December 2023 to 31 December 2024 |
| ENGAGEMENT WITH EMPLOYEES |
| The Group has in place procedures for communicating and consulting with employees, including involving them in matters which affect their interest as employees. |
| The policy of the Group is to achieve high standards for health, safety and welfare at work for all employees. |
| STREAMLINED ENERGY AND CARBON REPORTING |
| This report summarises our energy usage, associated emissions, energy efficiency actions and energy performance under the government policy Streamlined Energy and Carbon Reporting (SECR), as implemented by the Companies ('Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. |
| TruckEast Limited are a large UK incorporated business. Under SECR legislation we are mandated to include energy consumption, emissions, intensity metrics and all energy efficiency improvements implemented in our most recent financial year. An organisational boundary has been applied for the purposes of the reporting. |
| 0.99% of consumption data used for SECR has been required to be estimated to achieve 100% data coverage. |
| Greenhouse Gas Emissions |
| tonnes CO2e |
| 2024 | 2023 |
| Scope 1 emissions from gas, transport, buildings and processes |
1,318 |
1,207 |
| Scope 2 emissions from electricity use | 380 | 401 |
| Total greenhouse gas emissions | 1,698 | 1,608 |
| The company's total energy use for 2024 was 7,940,983 kWh (2023: 7,435,014 kWh). |
| TruckEast Limited's Scope 1 and 3 direct emissions (combustion of natural gas and transportation fuels) for this year of reporting are 1,317.55, tCO2e, resulting from the direct combustion of 5,925,027 kWh of fuel. This represents a carbon increase of 8% from last year. |
| Scope 2 indirect emissions (purchased electricity) for this year of reporting are 380 tCO2e, resulting from the consumption of 2,105,956 kWh of electricity purchased and consumed in day-to-day business operations. This represents a carbon increase of 2% from last year. |
| Our operations have an intensity metric of 4.01 tCO2e per FTE for this reporting year. |
| This represents a decrease in operational carbon intensity of 13% from our previous reporting year. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Report of the Directors |
| for the Period 14 December 2023 to 31 December 2024 |
| DIRECTORS' RESPONSIBILITIES STATEMENT |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| AUDITORS |
| The auditors, Knights Lowe Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| TruckEast Holdings Limited |
| Opinion |
| We have audited the financial statements of TruckEast Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 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: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the period 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| TruckEast Holdings Limited |
| 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and 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 set out on page seven, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Report of the Independent Auditors to the Members of |
| TruckEast Holdings Limited |
| Auditors' 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 a Report of the Auditors 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. |
| Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
| - we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the companies operating sector; |
| - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; |
| - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
| - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
| - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; |
| To address the risk of fraud through management bias and override of controls, we: |
| - performed analytical procedures to identify any unusual or unexpected relationships; |
| - tested journal entries to identify unusual transactions; |
| - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; |
| - investigated the rationale behind significant or unusual transactions; |
| In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| - agreeing financial statement disclosures to underlying supporting documentation; |
| - reading the minutes of meetings of those charged with governance; |
| - enquiring of management as to actual and potential litigation and claims; |
| - reviewing correspondence with HMRC, relevant regulators including the Environment Agency and the company's legal advisors; |
| There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
| Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| TruckEast Holdings Limited |
| 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 a Report of the Auditors 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. |
| for and on behalf of |
| Eldo House |
| Kempson Way |
| Suffolk Business Park |
| Bury St Edmunds |
| Suffolk |
| IP32 7AR |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Consolidated |
| Statement of Comprehensive |
| Income |
| for the Period 14 December 2023 to 31 December 2024 |
| Notes | £ |
| TURNOVER | 4 | 109,622,987 |
| Cost of sales | 82,581,524 |
| GROSS PROFIT | 27,041,463 |
| Administrative expenses | 22,642,966 |
| 4,398,497 |
| Other operating income | 5 | 31,250 |
| OPERATING PROFIT | 8 | 4,429,747 |
| Interest receivable and similar income | 9 | 73,718 |
| 4,503,465 |
| Interest payable and similar expenses | 10 | 52,067 |
| PROFIT BEFORE TAXATION | 4,451,398 |
| Tax on profit | 11 | 1,126,884 |
| PROFIT FOR THE FINANCIAL PERIOD |
| OTHER COMPREHENSIVE INCOME | - |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
3,324,514 |
| Profit attributable to: |
| Owners of the parent | 3,324,514 |
| Total comprehensive income attributable to: |
| Owners of the parent | 3,324,514 |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Consolidated Balance Sheet |
| 31 December 2024 |
| Notes | £ | £ |
| FIXED ASSETS |
| Intangible assets | 13 | (4,529,795 | ) |
| Tangible assets | 14 | 8,239,749 |
| Investments | 15 | - |
| 3,709,954 |
| CURRENT ASSETS |
| Stocks | 16 | 33,970,066 |
| Debtors | 17 | 12,968,740 |
| Cash at bank and in hand | 3,345,108 |
| 50,283,914 |
| CREDITORS |
| Amounts falling due within one year | 18 | 48,767,533 |
| NET CURRENT ASSETS | 1,516,381 |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 5,226,335 |
| CREDITORS |
| Amounts falling due after more than one year |
19 |
(448,863 |
) |
| PROVISIONS FOR LIABILITIES | 21 | (1,135,958 | ) |
| NET ASSETS | 3,641,514 |
| CAPITAL AND RESERVES |
| Called up share capital | 22 | 165,600 |
| Other reserves | 23 | 151,400 |
| Retained earnings | 23 | 3,324,514 |
| SHAREHOLDERS' FUNDS | 3,641,514 |
| The financial statements were approved by the Board of Directors and authorised for issue on 19 June 2025 and were signed on its behalf by: |
| J A W Biggin - Director |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Company Balance Sheet |
| 31 December 2024 |
| Notes | £ | £ |
| FIXED ASSETS |
| Intangible assets | 13 |
| Tangible assets | 14 |
| Investments | 15 |
| CURRENT ASSETS |
| Debtors | 17 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 22 |
| Retained earnings | 23 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 32 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Consolidated Statement of Changes in Equity |
| for the Period 14 December 2023 to 31 December 2024 |
| Called up |
| share | Retained | Other | Total |
| capital | earnings | reserves | equity |
| £ | £ | £ | £ |
| Changes in equity |
| Reduction in share capital | - | - | 151,400 | 151,400 |
| Total comprehensive income | - | 3,324,514 | - | 3,324,514 |
| Balance at 31 December 2024 | - | 3,324,514 | 151,400 | 3,475,914 |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Company Statement of Changes in Equity |
| for the Period 14 December 2023 to 31 December 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Changes in equity |
| Issue of share capital | - |
| Total comprehensive income | - |
| Balance at 31 December 2024 |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Consolidated Cash Flow Statement |
| for the Period 14 December 2023 to 31 December 2024 |
| Notes | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 3,662,983 |
| Interest element of hire purchase payments paid |
(52,067 |
) |
| Movement in Provisions | 146,020 |
| Tax paid | (859,059 | ) |
| Net cash from operating activities | 2,897,877 |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | (165,602 | ) |
| Purchase of tangible fixed assets | (4,976,962 | ) |
| Sale of tangible fixed assets | 237,201 |
| Interest received | 73,718 |
| Net cash from investing activities | (4,831,645 | ) |
| Cash flows from financing activities |
| New hire purchase/finance | 1,392,203 |
| Capital repayments in year | (893,793 | ) |
| Amount withdrawn by directors | (2,250,000 | ) |
| Share issue | 165,600 |
| Purchase of Cash on Acquisition | 6,916,933 |
| Interest paid | (52,067 | ) |
| Net cash from financing activities | 5,278,876 |
| Increase in cash and cash equivalents | 3,345,108 |
| Cash and cash equivalents at beginning of period |
2 |
- |
| Cash and cash equivalents at end of period | 2 | 3,345,108 |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Cash Flow Statement |
| for the Period 14 December 2023 to 31 December 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| £ |
| Profit before taxation | 4,451,398 |
| Depreciation charges | 915,047 |
| Profit on disposal of fixed assets | (137,544 | ) |
| Finance costs | 52,067 |
| Finance income | (73,718 | ) |
| 5,207,250 |
| Increase in stocks | (10,869,447 | ) |
| Increase in trade and other debtors | (3,158,512 | ) |
| Increase in trade and other creditors | 12,483,692 |
| Cash generated from operations | 3,662,983 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Period ended 31 December 2024 |
| 31.12.24 | 14.12.23 |
| £ | £ |
| Cash and cash equivalents | 3,345,108 | - |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 14.12.23 | Cash flow | At 31.12.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | - | 3,345,108 | 3,345,108 |
| - | 3,345,108 | 3,345,108 |
| Debt |
| Finance leases | - | (979,367 | ) | (979,367 | ) |
| - | (979,367 | ) | (979,367 | ) |
| Total | - | 2,365,741 | 2,365,741 |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements |
| for the Period 14 December 2023 to 31 December 2024 |
| 1. | STATUTORY INFORMATION |
| TruckEast Holdings Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | STATEMENT OF COMPLIANCE |
| The financial statements of TruckEast Holdings Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, the "Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" ("FRS 102") and the Companies Act 2006. |
| The principal accounting policies have been applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The Company has continued to adopt FRS 102 in these financial statements, including the adoption of the amendments to FRs 102 "Triennial review 2017". |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| These financial statements are prepared on a going concern basis, under the historical cost convention, with the exception of certain financial assets and liabilities being measured at fair value through profit or loss. |
| The preparation of the financial statements in conformity with FRS 102 requires the used of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the s Group's accounting policies. The areas involving a higher degree of judgement or complexity, ore areas where assumptions are significant to the financial statements are disclosed below. |
| The Group's functional and presentation currency is pound sterling (£GBP). |
| Financial Reporting Standard 102 - reduced disclosure exemptions |
| The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
| • | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
| • | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
| • | the requirement of paragraph 33.7. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Basis of consolidation |
| (i) Subsidiaries |
| Subsidiaries are entities over which the group has control over the financial and operating policies so as to obtain benefit from their activities. Subsidiaries are fully consolidated from the date on which control is transferred until the date that control ceases. The Company is an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control. Non-controlling interests are recognised on subsidiaries where the Group does not have 100% ownership. |
| (ii) Goodwill |
| Goodwill is carried at cost less accumulated impairment losses. Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group's interest in the fair value of the identifiable assets and liabilities of the subsidiary or joint venture at the date of acquisition. Goodwill is recognised as an asset and reviewed for impairment at least annually. Goodwill is allocated to cash-generating units that are expected to benefit from the business combination in which the goodwill arose. Any impairment is recognised immediately in the consolidated statement of profit or loss and is not subsequently reversed. |
| Contingent consideration is included in cost at its acquisition date fair value and, in the case of contingent consideration classified as a financial liability, remeasured subsequently through profit or loss. All direct costs of acquisition are recognised immediately as an expense. |
| On disposal of a subsidiary or joint venture the attributable amount of goodwill is included in the determination of the profit or loss on disposal. |
| For goodwill, the recoverable amount is assessed annually and whenever there is an indication of impairment. An asset's recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset's value in use cannot be estimated to be close to its fair value. In such cases, the asset is tested for impairment as part of the cash generating unit to which it belongs. |
| For the purpose of impairment testing goodwill is allocated to each of the Group's cash generating units expected to benefit from the synergies of the combination. 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. |
| (iii) Business Combinations |
| Business combinations are accounted for using the acquisition method. The consideration for acquisition is measured at the fair values of assets given, liabilities incurred or assumed, and equity instruments issued by the company in order to obtain control of the acquiree (at the date of exchange). Costs incurred in connection with the acquisition are recognised in the Consolidated Statement of Profit or Loss as incurred. |
| Where a business combination is achieved in stages, previously held interest in the acquiree are remeasured to fair value at the acquisition date (the date the group obtains control) an the resulting gain or loss is recognised in the Consolidated Statement of Profit or Loss. |
| Adjustments are made to fair values to bring the accounting policies of acquired businesses into alignment with those of the Group. The costs of integrating and reorganising acquired businesses are charged to the post acquisition profit or loss. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| If the initial accounting is incomplete at the reporting date, provisional amounts are recorded. These amounts are subsequently adjusted during the measurement period, or additional assets or liabilities are recognised when new information about its existence is obtained during the year. Adjustments can only be made up to 12 months after the acquisition date. |
| Acquisitions or disposals of non-controlling interests which do not affect the parent company's control of the subsidiary are accounted for as transactions with equity holders. Any difference between the amount paid or received and the change in non-controlling interests is recognised directly in equity. |
| (iv) Transactions eliminated on consolidation |
| Intragroup balances and any gains and losses or income and expenses arising from intragroup transactions are eliminated in preparing the consolidated financial information. Losses are eliminated in the same way as gains but only to the extent that there is no evidence of impairment. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Significant judgements and estimates |
| The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: |
| i. Useful Economic Lives of Tangible Assets |
| The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of tangible fixed assets, and the depreciation accounting policy note above for the useful economic lives for each class of assets. |
| ii. Buy-back Provision |
| The Group has agreed to buy-back a number of vehicles from customers at an agreed residual value. Where the Group expects to buy-back the vehicles at more than the market value, a provision is made for the loss at the year end (note 19). |
| The buy-back provision has been stated at £100,000 (2023: £38,150). The increase is due to the heightened demand of new trucks compared to used trucks as a consequence to the easing of the semi conductor shortage which has affected new truck sales over prior years. Therefore, an increased provision has been stated to account for the risk of lower demand for used trucks. |
| iii. Stock |
| Stock is stated at the lower of cost and net realisable value, being the estimated selling price less cost to complete and sell. |
| At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less cost to complete and sell. The impairment loss is recognised immediately in the Statement of comprehensive income. |
| iv. Deferred income |
| Income received on maintenance contracts are deferred over the term of the contract less costs associated with these contracts incurred during the year. |
| Management assess where losses arise on these contracts and recognise these losses immediately. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Revenue recognition |
| Revenue is measured at the fair value of consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the and Group value added taxes. |
| Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transaction, the fair value of the consideration is measured as the present value of all future receipts using the imputed rate of interest. |
| Turnover on contract maintenance is recognised over the course of the contracts as work is performed and costs are booked as incurred. Immediate provision is made for contracts in deficit. The Group recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the Group retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) when the specific criteria relating to each of the Group's sales channels have been met, as described below. |
| i. Sale of goods |
| Turnover on the sale of new and used vehicles is recognised at the earliest of receipt of payment or where delivery is delayed at the buyer's request when the buyer takes title and accepts billing. |
| ii. Sale of services |
| Revenue is recognised in the accounting period in which the services are rendered when the outcome of the contract can be estimated reliably. |
| Cash and cash equivalents |
| Cash and cash equivalents includes cash in hand, deposits held at call with the bank, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
| Intangible assets and amortisation |
| Intangible assets are initially recorded at cost and subsequently measured at cost less amortisation and any provision for impairment. Goodwill represents the difference between amounts paid on acquisition of a business and the acquirer's interest. Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of 10 years. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| All tangible fixed assets are initially recorded at cost and subsequently measured at cost less depreciation and any provision for impairment. |
| Gains and losses on disposals are determined by comparing the proceeds with the carrying value and are recognised in the Statement of comprehensive income. |
| Depreciation |
| Depreciation starts when the asset is available for operational use and is calculated so as to write-off the cost of an asset, less its estimated residual value, over the economic life of that asset as follows: |
| Freehold Property | No depreciation provided on land |
| Leasehold Property | 4% or over the period of the lease, whichever is shorter |
| Plant & Machinery | 8.3% - 33.3% |
| Motor Vehicles | 25% - 50% |
| Office Equipment | 10% - 33.3% |
| Impairment of fixed assets |
| A review of 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. |
| For the purposes of impairment testing, where 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. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| i. Financial assets |
| Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
| At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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 goes 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. |
| Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
| ii. Financial Liabilities |
| Basic financial liabilities, including trade and other payables, loans from fellow group companies, 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 receipts discounted at a market rate of interest. |
| Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers, Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
| iii. Offsetting |
| 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. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
| Stocks and work in progress are stated at the lower of cost or net realisable value. In the case of work in progress and finished goods, cost comprises direct materials and direct labour calculated on a first in first out basis. Net realisable value is based on estimated selling price allowing for all further costs of completion and disposal. |
| Consignment Stocks |
| Consignment stock represents trading stock to which the Group does not have legal title but has rights approximating to the risks and rewards of ownership. |
| Such stocks are stated at cost as the date of consignment with an equivalent liability being reflected in creditors. |
| Taxation |
| Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 period 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. |
| Operating leases |
| Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the Statement of comprehensive income on a straight-line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| Distributions to equity holders |
| Dividend and other distributions to the Group's shareholders are recognised as a liability in the financial statements in the year in which the dividends and other distributions are approved by the Group's shareholders are paid. These amounts are recognised in the Statement of changes in equity. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Going concern |
| The financial statements have been prepared on a going concern basis. The Group's business activities, together with the factors likely to affect its future developments, performance and position are set out in the Strategic Report and Report of the Directors. The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to manage its business risk successfully. After making enquiries, the directors have a reasonable expectation that the has Group adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months from the date of signing these financial statements. The directors believe that the has Group has sufficient facilities in place to meet its current obligations and has sufficient headroom in these agreements with the board having reasonable expectation that there are adequate resources to continue with the Group's operations for the foreseeable future, therefore the Group continues to adopt the going concern basis in preparing its financial statements. |
| 4. | TURNOVER |
| The turnover and profit before taxation are attributable to the principal activities of the group. |
| An analysis of turnover by class of business is given below: |
| £ |
| New and used trucks | 68,207,200 |
| Parts, servicing and workshop | 41,415,787 |
| 109,622,987 |
| 5. | OTHER OPERATING INCOME |
| £ |
| Rents received | 31,250 |
| 6. | EMPLOYEES AND DIRECTORS |
| £ |
| Wages and salaries | 18,946,995 |
| Social security costs | 2,088,725 |
| Other pension costs | 724,857 |
| 21,760,577 |
| The average number of employees during the period was as follows: |
| Workshop and warehouse | 266 |
| Sales | 17 |
| Administration & management | 143 |
| The average number of employees by undertakings that were proportionately consolidated during the period was 426 . |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 7. | DIRECTORS' EMOLUMENTS |
| Remuneration in respect of the directors was as follows: |
| 2024 | 2023 |
| £ | £ |
| Emoluments receivable | 923,261 | 743,038 |
| Value of company pension contributions to defined contribution schemes | 69,080 | 60,260 |
| 992,341 | 803,297 |
| Emoluments of highest paid director: |
| 2024 | 2023 |
| £ | £ |
| Total emoluments (excluding pension contributions) | 230,778 | 220,968 |
| Value of company pension contributions to defined contribution schemes | 19,431 | 18,000 |
| 250,209 | 238,968 |
| The number of directors who accrued benefits under company pension schemes was as follows: |
| 2024 | 2023 |
| Defined contribution schemes | 5 | 5 |
| 8. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| £ |
| Depreciation - owned assets | 1,091,717 |
| Depreciation - assets on hire purchase contracts | 369,081 |
| Profit on disposal of fixed assets | (137,544 | ) |
| Goodwill amortisation | (503,311 | ) |
| Auditors' remuneration | 47,284 |
| Auditors' remuneration for non audit work | 9,650 |
| 9. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| £ |
| Deposit account interest | 2,033 |
| Bank account interest | 71,685 |
| 73,718 |
| 10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| £ |
| Hire purchase interest | 52,067 |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 11. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the period was as follows: |
| £ |
| Current tax: |
| UK corporation tax | 1,273,361 |
| Deferred tax | (146,477 | ) |
| Tax on profit | 1,126,884 |
| UK corporation tax has been charged at 25 % . |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| £ |
| Profit before tax | 4,451,398 |
| Profit multiplied by the standard rate of corporation tax in the UK of 25 % | 1,112,850 |
| Effects of: |
| Expenses not deductible for tax purposes | 418,460 |
| Income not taxable for tax purposes | 283,056 |
| Capital allowances in excess of depreciation | (433,469 | ) |
| Deferred tax charge | (146,477 | ) |
| Other timing differences | 18,292 |
| Goodwill amortisation | (125,828 | ) |
| Total tax charge | 1,126,884 |
| 12. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 13. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| Additions | (5,033,106 | ) |
| At 31 December 2024 | (5,033,106 | ) |
| AMORTISATION |
| Amortisation for period | (503,311 | ) |
| At 31 December 2024 | (503,311 | ) |
| NET BOOK VALUE |
| At 31 December 2024 | (4,529,795 | ) |
| 14. | TANGIBLE FIXED ASSETS |
| Group |
| Freehold | Long | Plant and |
| property | leasehold | machinery |
| £ | £ | £ |
| COST |
| Additions | 1,059,984 | 1,637,871 | 609,942 |
| Disposals | - | (1,065,388 | ) | (762,127 | ) |
| Transfer to ownership | - | 537,730 | 1,427,679 |
| At 31 December 2024 | 1,059,984 | 1,110,213 | 1,275,494 |
| DEPRECIATION |
| At 14 December 2023 | (2,830,137 | ) | 2,830,137 | - |
| Charge for period | - | 176,501 | 495,316 |
| Eliminated on disposal | - | (1,065,388 | ) | (741,966 | ) |
| At 31 December 2024 | (2,830,137 | ) | 1,941,250 | (246,650 | ) |
| NET BOOK VALUE |
| At 31 December 2024 | 3,890,121 | (831,037 | ) | 1,522,144 |
| At 13 December 2023 | 2,830,137 | (2,830,137 | ) | - |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 14. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST |
| Additions | 2,687,975 | 462,873 | 6,458,645 |
| Disposals | (585,693 | ) | (726,049 | ) | (3,139,257 | ) |
| Transfer to ownership | 254,699 | 1,121,451 | 3,341,559 |
| At 31 December 2024 | 2,356,981 | 858,275 | 6,660,947 |
| DEPRECIATION |
| At 14 December 2023 | - | - | - |
| Charge for period | 369,081 | 419,900 | 1,460,798 |
| Eliminated on disposal | (506,896 | ) | (725,350 | ) | (3,039,600 | ) |
| At 31 December 2024 | (137,815 | ) | (305,450 | ) | (1,578,802 | ) |
| NET BOOK VALUE |
| At 31 December 2024 | 2,494,796 | 1,163,725 | 8,239,749 |
| At 13 December 2023 | - | - | - |
| The net book value of land and buildings includes: |
| 2024 |
| £ |
| Long leasehold property | 1,999,100 |
| Freehold property | 1,059,984 |
| Depreciation charged in the year in relation to this long leasehold property totalled £176,501. |
| No depreciation is provided on Freehold property where 100% of the total is made up of land. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 14. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Motor |
| vehicles |
| £ |
| COST |
| Additions | 1,017,475 |
| Disposals | (45,668 | ) |
| At 31 December 2024 | 971,807 |
| DEPRECIATION |
| Charge for period | 369,081 |
| Eliminated on disposal | (12,584 | ) |
| At 31 December 2024 | 356,497 |
| NET BOOK VALUE |
| At 31 December 2024 | 615,310 |
| 15. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertaking |
| £ |
| COST |
| Additions |
| Disposals | ( |
) |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 16. | STOCKS |
| Group |
| £ |
| Work-in-progress | 1,296,361 |
| Finished goods | 5,219,600 |
| Consignment vehicles | 27,454,105 |
| 33,970,066 |
| During the year, stock recognised in cost of sales amounted to £123,900,564. A charge of £582,337 was recognised in cost of sales as an impairment against stock during the year. |
| Consignment vehicles |
| Stocks held on consignment consists of vehicles that have been consigned by Scania (Great Britain) Limited who retain title until paid and to whom the vehicles can be returned. |
| 17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| £ | £ |
| Trade debtors | 8,606,733 |
| Amounts owed by group undertakings | - |
| Amounts owed by participating interests | 89,763 | - |
| Other debtors | 48,856 |
| Directors' current accounts | 2,250,000 | - |
| VAT | 850,984 |
| Prepayments | 1,122,404 |
| 12,968,740 |
| 18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group |
| £ |
| Hire purchase contracts (see note 20) | 530,504 |
| Trade creditors | 36,646,489 |
| Corporation tax | 718,183 |
| Social security and other taxes | 656,577 |
| Other creditors | 371,887 |
| Accruals and deferred income | 9,843,893 |
| 48,767,533 |
| Included in trade creditors is £26,797,653 (2023: £27,808,869) which is due in respect of stocks held on consignment from Scania (Great Britain) Limited who retain title until paid. |
| HP contracts are secured against the asset to which they relate. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| £ |
| Hire purchase contracts (see note 20) | 448,863 |
| 20. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire |
| purchase |
| contracts |
| £ |
| Net obligations repayable: |
| Within one year | 530,504 |
| Between one and five years | 448,863 |
| 979,367 |
| Group |
| Non- | cancellable | operating | leases |
| £ |
| Within one year | 1,877,043 |
| Between one and five years | 5,996,696 |
| In more than five years | 5,506,700 |
| 13,380,439 |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 21. | PROVISIONS FOR LIABILITIES |
| Deferred tax |
Buy-back provision |
Dilapidations |
Inventive scheme |
| Acquisition of subsidiary | 489,593 | 38,150 | 305,027 | 303,645 |
| Charge for the year | -146.477 | 61,850 | 59,435 | 24,735 |
| Balance at 31 December 2024 | 343,116 | 100,000 | 364,462 | 328,380 |
| The deferred tax provision consists of the following: |
| Accelerated capital allowances | 516,235 |
| Other timing differences | -173,119 |
| The buy-back provision relates to where the Group has entered into agreements with customers to buy-back vehicles at set points in time for a set amount. Any subsequent expected losses on the resale of the vehicles are provided for. Due to high resale values in the year this provision has been written back, as at the year-end no provision is considered necessary. |
| Dilapidation provisions relate to lease hold properties rented by the Group. |
| The Group operates an incentive scheme for apprentices which accrues a bonus throughout their time as an apprentice of the Group. |
| 22. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal |
| value: | £ |
| Class B Ordinary | 0.28 | - |
| Class C Ordinary | 0.687 | 5 | 165,600 |
| 165,600 |
| TruckEast Holdings Limited was incorporated on 14 December 2023 issuing one class B ordinary share valued at £0.28. |
| On 3 May 2024 239,999 additional class B Ordinary shares were then issued at £0.28 each (aggregate nominal value £67,200), as well as 240,000 class C ordinary shares at 69p each (aggregate nominal value £165,600). These were issued as consideration for the entire share capital of East County Investments Limited which were transferred to TruckEast Holdings Limited as part of a share for share exchange. As a result on 3 May 2024 480,000 shares were in issue with an aggregate nominal value of £232,800. |
| It was resolved on 21 June 2024 that the share capital of the company be reduced from £232,800 to £165,600 through the cancelling and extinguishing of the 240,000 issued class B ordinary shares valued at 28p each. This left 240,000 class C ordinary shares valued at 69p each, with an aggregate nominal value of £165,600. |
| 23. | RESERVES |
| The other reserves arose as a result of the de-merger of Truckeast Limited from East County Investments Limited. |
| TruckEast Holdings Limited (Registered number: 15350404) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 14 December 2023 to 31 December 2024 |
| 24. | PENSION COMMITMENTS |
| The Group operates a defined contribution pension scheme for the benefit of its employees of which the assets are held independently from those of the group. |
| During the year the group made contributions of £793,937 into the scheme. |
| Contributions totalling £124,961 were payable to the fund at the balance sheet date and are included in social security and other taxes. |
| 25. | CONTINGENT LIABILITIES |
| A number of the Group's customers have repair and maintenance contracts which are held by Scania (Great Britain) Limited. At 31 December 2024 the amount of deferred income held by Scania (Great Britain) Limited was £6,123,808. At the end of the contract, the Group is entitled to receive any surpluses or has to make good any deficits. In the directors' opinion it is not possible to make a reliable estimate of the eventual surplus or deficit. |
| The Group has agreed to buy-back a number of vehicles from customers at an agreed residual value. Where the Group expects to buy-back the vehicles at more than the market value, a provision is made for the loss. |
| 26. | GUARANTEES |
| There is a cross party guarantee over all the Group undertakings in relation to HSBC bank, the Group's bank provider. |
| This is in the form of a fixed and floating charge over all the assets and trade of the Group undertakings. |
| Certain stocks are secured against debts of the Group as set out in the creditors note. |
| 27. | RELATED PARTY DISCLOSURES |
| The Group has taken advantage of the exemption under FRS 102 Section 33, and not disclosed transactions with other wholly-owned group companies, as it is a wholly-owned subsidiary. |
| Property rental charges of £83,538 (2023: £53,250) were paid to the Pension Fund of a Director, Mr J A W Biggin, during the year in respect of premises at Bedford and Corby. |
| At the year end there is a balance of £2,250,000 in respect of an overdrawn directors loan account which is represented in the debtors figure. This loan is unsecured and repayable on demand. |
| At the year end there is a debtor due from East County Investments limited of £89,763 which is unsecured, interest free and repayable on demand. During the year rent of £1,040,615 (2023: £865,500) was paid to ECI in respect of the premises at Bury St Edmunds, Crick, King's Lynn, Northampton, Peterborough and Wellingborough. |
| 28. | ULTIMATE CONTROLLING PARTY |
| The ultimately controlling party is Mr J A W Biggin. |