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Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that: The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.280stock management and distribution servicesfalse2024-01-01259falsefalsefalse 11687671 2024-01-01 2024-12-29 11687671 2023-01-01 2023-12-31 11687671 2024-12-29 11687671 2023-12-31 11687671 2023-01-01 11687671 4 2024-01-01 2024-12-29 11687671 4 2023-01-01 2023-12-31 11687671 5 2024-01-01 2024-12-29 11687671 5 2023-01-01 2023-12-31 11687671 d:Director1 2024-01-01 2024-12-29 11687671 d:Director2 2024-01-01 2024-12-29 11687671 d:RegisteredOffice 2024-01-01 2024-12-29 11687671 d:Agent1 2024-01-01 2024-12-29 11687671 e:Buildings 2024-01-01 2024-12-29 11687671 e:Buildings 2024-12-29 11687671 e:Buildings 2023-12-31 11687671 e:Buildings e:OwnedOrFreeholdAssets 2024-01-01 2024-12-29 11687671 e:Buildings e:LeasedAssetsHeldAsLessee 2024-01-01 2024-12-29 11687671 e:PlantMachinery 2024-01-01 2024-12-29 11687671 e:PlantMachinery 2024-12-29 11687671 e:PlantMachinery 2023-12-31 11687671 e:PlantMachinery e:OwnedOrFreeholdAssets 2024-01-01 2024-12-29 11687671 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2024-01-01 2024-12-29 11687671 e:MotorVehicles 2024-01-01 2024-12-29 11687671 e:MotorVehicles 2024-12-29 11687671 e:MotorVehicles 2023-12-31 11687671 e:MotorVehicles e:OwnedOrFreeholdAssets 2024-01-01 2024-12-29 11687671 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2024-01-01 2024-12-29 11687671 e:FurnitureFittings 2024-01-01 2024-12-29 11687671 e:FurnitureFittings 2024-12-29 11687671 e:FurnitureFittings 2023-12-31 11687671 e:FurnitureFittings e:OwnedOrFreeholdAssets 2024-01-01 2024-12-29 11687671 e:FurnitureFittings e:LeasedAssetsHeldAsLessee 2024-01-01 2024-12-29 11687671 e:ComputerEquipment 2024-01-01 2024-12-29 11687671 e:ComputerEquipment 2024-12-29 11687671 e:ComputerEquipment 2023-12-31 11687671 e:ComputerEquipment e:OwnedOrFreeholdAssets 2024-01-01 2024-12-29 11687671 e:ComputerEquipment e:LeasedAssetsHeldAsLessee 2024-01-01 2024-12-29 11687671 e:OwnedOrFreeholdAssets 2024-01-01 2024-12-29 11687671 e:LeasedAssetsHeldAsLessee 2024-01-01 2024-12-29 11687671 e:Goodwill 2024-12-29 11687671 e:Goodwill 2023-12-31 11687671 e:CurrentFinancialInstruments 2024-12-29 11687671 e:CurrentFinancialInstruments 2023-12-31 11687671 e:Non-currentFinancialInstruments 2024-12-29 11687671 e:Non-currentFinancialInstruments 2023-12-31 11687671 e:CurrentFinancialInstruments e:WithinOneYear 2024-12-29 11687671 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 11687671 e:Non-currentFinancialInstruments e:AfterOneYear 2024-12-29 11687671 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 11687671 f:UnitedKingdom 2024-01-01 2024-12-29 11687671 f:UnitedKingdom 2023-01-01 2023-12-31 11687671 e:UKTax 2024-01-01 2024-12-29 11687671 e:UKTax 2023-01-01 2023-12-31 11687671 e:ShareCapital 2024-12-29 11687671 e:ShareCapital 2023-12-31 11687671 e:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-29 11687671 e:RetainedEarningsAccumulatedLosses 2024-12-29 11687671 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 11687671 e:RetainedEarningsAccumulatedLosses 2023-12-31 11687671 e:RetainedEarningsAccumulatedLosses 2023-01-01 11687671 e:AcceleratedTaxDepreciationDeferredTax 2024-12-29 11687671 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 11687671 d:OrdinaryShareClass1 2024-01-01 2024-12-29 11687671 d:OrdinaryShareClass1 2024-12-29 11687671 d:OrdinaryShareClass1 2023-12-31 11687671 d:FRS102 2024-01-01 2024-12-29 11687671 d:Audited 2024-01-01 2024-12-29 11687671 d:FullAccounts 2024-01-01 2024-12-29 11687671 d:PrivateLimitedCompanyLtd 2024-01-01 2024-12-29 11687671 e:WithinOneYear 2024-12-29 11687671 e:WithinOneYear 2023-12-31 11687671 e:BetweenOneFiveYears 2024-12-29 11687671 e:BetweenOneFiveYears 2023-12-31 11687671 e:MoreThanFiveYears 2024-12-29 11687671 e:MoreThanFiveYears 2023-12-31 11687671 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2024-12-29 11687671 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2023-12-31 11687671 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2024-12-29 11687671 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2023-12-31 11687671 e:FurnitureFittings e:LeasedAssetsHeldAsLessee 2024-12-29 11687671 e:FurnitureFittings e:LeasedAssetsHeldAsLessee 2023-12-31 11687671 e:LeasedAssetsHeldAsLessee 2024-12-29 11687671 e:LeasedAssetsHeldAsLessee 2023-12-31 11687671 g:PoundSterling 2024-01-01 2024-12-29 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 11687671










PROLOG FULFILMENT LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 29 DECEMBER 2024

 
PROLOG FULFILMENT LIMITED
 
 
COMPANY INFORMATION


Directors
N R Daniells 
N J Hoare 




Registered number
11687671



Registered office
Little Oak Drive
Sherwood Business Park

Annesley

Nottinghamshire

NG15 0DJ




Independent auditors
Shorts
Chartered Accountants & Statutory Auditors

63 Napier Street

Sheffield

S11 8HA




Bankers
HSBC UK Bank plc





 
PROLOG FULFILMENT LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Statement of Income and Retained Earnings
 
10
Balance Sheet
 
11
Statement of Cash Flows
 
12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 26

 
PROLOG FULFILMENT LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 29 DECEMBER 2024

Introduction
 
Prolog specialises in comprehensive global logistics solutions for both B2C and B2B operations, ensuring that everything from individual customer orders to large scale wholesale shipments is handled with speed, accuracy and efficiency.
For B2C orders, Prolog provides end to end fulfilment including inventory management, same day pick/pack processes together with final mile delivery, meeting the promises our clients make to their customers. Whether our client transacts through an online store, a marketplace or subscription models, Prolog enables fast, flexible and cost-effective fulfilment enhancing customer satisfaction and brand loyalty.
For B2B businesses, Prolog provide bulk distribution, retailer compliance management and scalable warehousing handling complex order requirements, palletised shipments and just in time delivery. Prolog’s technology integrates seamlessly with ERP platforms, marketplaces and retail distribution networks ensuring smooth inventory flow and removing supply chain bottlenecks.
Prolog’s service offer extends to value added services such as personalisation, extensive kitting processes and a multi-lingual Contact Centre, ensuring that whatever requirements Prolog clients have, we can support them in the most cost-effective manner that’s protects our client’s margin, enabling their growth.

Business review
 

2023
2024

£000's
£000's





Revenue
18,850
18,603
GP
6,139
6,043
GP%
33%
32%
EBITDA
800
704

2024 saw a slightly decreased EBITDA of £704k compared to £800k in 2023. Overall, the company is pleased with this result, as sales were down £247k due to a new contract being delayed for 6 months.

Despite the UK economic challenges that persisted throughout 2024, our strong market position, strategic investments and commitment to excellence have enabled us to navigate these uncertainties effectively. The company is therefore delighted with its continued success in securing new business. As we move into 2025, we remain confident in our ability to drive sustained growth, expand our client base and capitalise on new opportunities in an evolving business landscape.

Cash generation remains strong, and we enter 2025 in a good position.

We continue to invest in the business’s operational capability with a further £261k invested in 2024, which brings our total over 5 years to £1.23m. These investments enable us to handle increased volumes through our operation. 2025 will see us invest in our infrastructure and hardware.

Prolog achieved several significant business wins in the second half of 2024, reinforcing our strong market position and growth trajectory. As we look ahead to 2025, we have set a realistic revenue target of £22m, with a forecast EBITDA of £980k. This EBITDA target reflects our strategic decision to undertake further operational expenditure investments throughout the year, positioning the company for long-term scalability, efficiency, and enhanced service capabilities.  These investments will drive future profitability and ensure we remain at the forefront of the industry.
Page 1

 
PROLOG FULFILMENT LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 DECEMBER 2024

Our commitment to excellence continues to be reflected in our consistently high service levels, which remain a key driver of client satisfaction and loyalty. This is further reinforced by the successful renewal of key contracts and the acquisition of new business, demonstrating the trust our clients place in us and our ability to deliver exceptional service. Our strong service performance underscores our reputation in the industry and positions us well for continued success. 

Company Engagement with Employees

Training remains a fundamental pillar of our business, ensuring both operational excellence and meaningful employee engagement. We are committed to fostering a culture of continuous learning and development, encouraging our staff to take full advantage of our comprehensive training programs. These initiatives empower employees to enhance their skills, drive real improvements in their roles and progress in their careers.

Our people are our greatest asset, and their expertise, commitment and retention are critical to delivering market leading services to our clients. We prioritise strong internal communication, employee well-being and structured career development opportunities to support and nurture our team. By the continuous investing in our workforce, we create an environment where talent thrives, innovation flourishes and our company grows.

Environment, Social and Governance

We are proud to reaffirm our commitment to sustainability by maintaining our status as a Carbon Neutral Fulfilment company, certified under BSI PAS 2060. This certification underscores our dedication to reducing our environmental impact and ensuring that all our operations continue to meet the highest standards of carbon neutrality. We remain steadfast in our pledge to operate responsibly and will actively pursue initiatives that further enhance our sustainability efforts.

As part of our ongoing environmental strategy, Prolog has set ambitious targets to reduce our carbon footprint in 2025. We are committed to achieving a minimum 5% reduction in Scope 2 greenhouse gas (GHG) emissions, equating to a savings of at least 9 tonnes of CO2e. To accomplish this, we are transitioning to a supplier of 100% Renewable Source Electricity, ensuring our energy consumption is derived from clean, sustainable sources.

Additionally, we are taking proactive steps to address our indirect emissions. In 2025, Prolog is targeting a 5% reduction in Scope 3 GHG emissions, amounting to at least 1 tonne of CO2e. One of the key initiatives to achieve this is the introduction of electric vehicles into our business fleet, reducing our reliance on traditional fuel sources and cutting down on emissions from transportation.

Sustainability is at the heart of our business, and we are fully committed to making meaningful and measurable progress toward a greener future.

Page 2

 
PROLOG FULFILMENT LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 DECEMBER 2024

Principal risks and uncertainties
 
The UK economic landscape remains uncertain with additional business taxation adding further cost challenges for UK businesses. Despite this, we remain confident in our ability to navigate the evolving market conditions.
With a robust, healthy sales pipeline and a significant strategic investment in marketing, we are well positioned for sustained growth. 
As the economy strengthens, we believe these proactive measures will allow us to capitalise on new opportunities, expand our market presence and drive long-term success. 

2025 Outlook

The e-commerce and logistics markets continue to demonstrate resilience and sustained growth, providing a strong foundation for our business. We are pleased to report that we have a solid and growing pipeline of opportunities, reflecting the demand for our services.
2025 has started on a positive note, with several new business wins secured in Q1, reinforcing our market position and confidence in our strategic direction.
Considering these developments, the Directors are extremely pleased with the company’s performance in 2024, particularly given the challenging economic backdrop.
Looking ahead, we remain optimistic about the prospects for 2025, as we continue to build momentum, strengthen client relationships, and capitalise on emerging opportunities to drive continued growth and success.


This report was approved by the board on 30 May 2025 and signed on its behalf.



N R Daniells
Director
Page 3

 
PROLOG FULFILMENT LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 DECEMBER 2024

The directors present their report and the financial statements for the year ended 29 December 2024.

Directors

The directors who served during the year were:

N R Daniells 
N J Hoare 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £151,083 (2023 - £218,382).

The dividend declared and paid was £192,683 (2023: 210,201).

Qualifying third party indemnity provisions

The directors have been granted a qualifiying third party indemnity provision under Section 234 of the Companies Act 2006. This indemnity does not provide cover in the event of a director acting fraudulently or dishonestly.

Page 4

 
PROLOG FULFILMENT LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsShortswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 30 May 2025 and signed on its behalf.
 





N R Daniells
Director
Page 5

 
PROLOG FULFILMENT LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROLOG FULFILMENT LIMITED
 

Opinion


We have audited the financial statements of Prolog Fulfilment Limited (the 'Company') for the year ended 29 December 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 29 December 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 6

 
PROLOG FULFILMENT LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROLOG FULFILMENT LIMITED (CONTINUED)

Other information


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


We have nothing to report in this regard.


Opinion 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records 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 4, 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.


Page 7

 
PROLOG FULFILMENT LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROLOG FULFILMENT LIMITED (CONTINUED)

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 an Auditors' 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:

the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
through discussions with the directors and other management and from our commercial knowledge and experience of the sectors that the Company operates in, we identified the laws and regulations applicable to the Company; and
focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

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;
and 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;
considered journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
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;
enquiring of management as to actual and potential litigation and claims;
considering relationships with HMRC, relevant regulators and the Company’s legal advisors;
revewing minutes of meeting of management and directors;
reviewing incident log to identify any breaches and problems; and
reviewing the company's risk register to identify key risk areas.

Page 8

 
PROLOG FULFILMENT LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROLOG FULFILMENT LIMITED (CONTINUED)

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 Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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.





Howard Freeman BSc FCA (Senior Statutory Auditor)
  
for and on behalf of
Shorts
 
Chartered Accountants
Statutory Auditors
  
63 Napier Street
Sheffield
S11 8HA

30 May 2025
Page 9

 
PROLOG FULFILMENT LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 29 DECEMBER 2024

29 December
31 December
2024
2023
Note
£
£

  

Turnover
 4 
18,602,618
18,849,852

Cost of sales
  
(12,559,043)
(12,710,409)

Gross profit
  
6,043,575
6,139,443

Distribution costs
  
(2,749,643)
(2,641,296)

Administrative expenses
  
(2,886,129)
(3,015,587)

Operating profit
 5 
407,803
482,560

Interest receivable and similar income
  
2,147
2,010

Interest payable and similar expenses
 9 
(200,055)
(190,735)

Profit before tax
  
209,895
293,835

Tax on profit
 10 
(58,812)
(75,453)

Profit after tax
  
151,083
218,382

  

  

Retained earnings at the beginning of the year
  
583,208
575,027

Profit for the year
  
151,083
218,382

Dividends declared and paid
  
(192,683)
(210,201)

Retained earnings at the end of the year
  
541,608
583,208
The notes on pages 14 to 26 form part of these financial statements.
Page 10

 
PROLOG FULFILMENT LIMITED
REGISTERED NUMBER:11687671

BALANCE SHEET
AS AT 29 DECEMBER 2024

29 December
31 December
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
7
7

Tangible assets
 12 
768,177
804,048

  
768,184
804,055

Current assets
  

Stocks
  
317,376
197,232

Debtors: amounts falling due within one year
 13 
6,777,585
5,266,171

Cash at bank and in hand
  
84,598
276,535

  
7,179,559
5,739,938

Creditors: amounts falling due within one year
 14 
(7,177,470)
(5,545,000)

Net current assets
  
 
 
2,089
 
 
194,938

Total assets less current liabilities
  
770,273
998,993

Creditors: amounts falling due after more than one year
 15 
(105,612)
(280,569)

Provisions for liabilities
  

Deferred tax
 16 
(123,043)
(135,206)

  
 
 
(123,043)
 
 
(135,206)

Net assets
  
541,618
583,218


Capital and reserves
  

Called up share capital 
 17 
10
10

Profit and loss account
 18 
541,608
583,208

  
541,618
583,218


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 May 2025.




N R Daniells
Director

The notes on pages 14 to 26 form part of these financial statements.
Page 11

 
PROLOG FULFILMENT LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 DECEMBER 2024

29 December
31 December
2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
151,083
218,382

Adjustments for:

Depreciation of tangible assets
296,719
317,757

Interest paid
200,055
190,735

Interest received
(2,147)
(2,010)

Taxation charge
58,812
75,453

(Increase) in stocks
(120,144)
(59,497)

(Increase)/decrease in debtors
(1,511,416)
5,368

Increase in creditors
1,682,471
179,473

Corporation tax (paid)
(93,295)
(44,894)

Net cash generated from operating activities

662,138
880,767


Cash flows from investing activities

Purchase of tangible fixed assets
(260,848)
(290,777)

Interest received
2,147
2,010

HP interest paid
(43,271)
(35,722)

Net cash from investing activities

(301,972)
(324,489)

Cash flows from financing activities

Repayment of other loans
(49,888)
(49,888)

Repayment of/new finance leases
(152,750)
70,016

Dividends paid
(192,683)
(210,201)

Interest paid
(156,782)
(155,013)

Net cash used in financing activities
(552,103)
(345,086)

Net (decrease)/increase in cash and cash equivalents
(191,937)
211,192

Cash and cash equivalents at beginning of year
276,535
65,343

Cash and cash equivalents at the end of year
84,598
276,535


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
84,598
276,535



Page 12

 
PROLOG FULFILMENT LIMITED
 

ANALYSIS OF NET DEBT (CONTINUED)
FOR THE YEAR ENDED 29 DECEMBER 2024

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 29 DECEMBER 2024





At 1 January 2024
Cash flows
Other non-cash changes
At 29 December 2024
£

£

£

£

Cash at bank and in hand

276,535

(191,937)

-

84,598

Debt due after 1 year

(37,417)

-

37,417

-

Debt due within 1 year

(49,888)

49,888

(37,417)

(37,417)

Finance leases

(396,563)

152,750

-

(243,813)


(207,333)
10,701
-
(196,632)

The notes on pages 14 to 26 form part of these financial statements.
Page 13

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

1.


General information

Prolog Fulfilment Limited is a private limited Company limited by shares, incorporated in England and Wales (registered number: 11687671). Its registered office is Little Oak Drive, Sherwood Business Park, Annesley, Nottinghamshire, NG15 0DJ. The principal activity of the Company throughout the year continued to be that of stock management and distribution services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The Company's functional and presentational currency is pounds sterling.

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight-line basis over the lease term.

Page 14

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Income and Retained Earnings so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of Income and Retained Earnings at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Income and Retained Earnings over its useful economic life.
Page 15

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

2.Accounting policies (continued)

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.

The depreciation rates used are:

Freehold property
-
10 years straight line
Plant and machinery
-
2 - 10 years straight line
Fleet
-
5 years straight line
Fixtures and fittings
-
3 - 10 years straight line
Computer equipment
-
3 - 5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each Balance Sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Income and Retained Earnings.
Page 16

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties. 

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.


 
2.11

Current and deferred taxation

Tax is recognised in the Statement of Income and Retained Earnings.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date in the countries where the Company operates and generates income. 

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that: 

The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Page 17

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

No significant judgements have had to be made by management in preparing these financial statements.

The Company 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 had the greatest level of uncertainty are addressed below:

(i) Impairment of debtors

The Company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. During the year, there were no provisions made for bad debts (2023: £nil).

(ii) Prepayment and accruals

The Company assesses the income and expenses arising during the accounting period and makes adjustments for these where the invoicing period does not align with the accounting period. When assessing these items, management consider factors including post year end invoices and payments and also contracts which are in place. Prepayments and accrued income are shown in note 13 of the accounts and accruals and deferred income are shown in note 14 of the accounts.

(iii) Depreciation

The carrying value of fixed assets is calculated on the basis of estimates of depreciation periods derived from the expected useful life of the asset concerned and residual values. The expected useful life of the asset concerned and its estimated residual value may change under the influence of technological developments, market circumstances and changes in the use of the asset. These factors may also give rise to the need to recognise an impairment on assets. 


4.


Turnover

2024
2023
£
£

United Kingdom
18,602,618
18,849,852


All turnover arose within the United Kingdom.

Page 18

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation
296,719
317,757

Operating lease rentals
1,543,002
1,341,965

1,839,721
1,659,722


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
22,500
20,000

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
6,470,683
6,306,236

Social security costs
524,799
509,769

Cost of defined contribution scheme
139,530
135,812

7,135,012
6,951,817


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Employees
259
280

Page 19

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
79,332
51,574

Company contributions to defined contribution pension schemes
5,947
5,973

85,279
57,547


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.


9.


Interest payable and similar expenses

2024
2023
£
£


Other loan interest payable
23,916
27,256

Finance leases and hire purchase contracts
43,271
35,722

Other interest payable
132,868
127,757

200,055
190,735
Page 20

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
70,975
93,800


Deferred tax


Origination and reversal of timing differences
(12,163)
(18,347)


Tax on profit
58,812
75,453

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the calculated rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
209,895
293,835


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
52,474
69,148

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,485
5,021

Capital allowances for year in excess of depreciation
5,105
2,361

Adjustments to tax charge in respect of prior periods
(252)
-

Group relief
-
(1,077)

Total tax charge for the year
58,812
75,453


Factors that may affect future tax charges

There are no factors that will affect future tax changes.

Page 21

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

11.


Intangible assets






Goodwill

£



Cost


At 1 January 2024
7



At 29 December 2024

7






Net book value



At 29 December 2024
7



At 31 December 2023
7



Page 22

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

12.


Tangible fixed assets







Freehold property
Plant and machinery
Fleet
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£
£



Cost


At 1 January 2024
168,822
597,830
153,021
327,320
683,150
1,930,143


Additions
44,523
30,656
-
126,089
59,580
260,848



At 29 December 2024

213,345
628,486
153,021
453,409
742,730
2,190,991



Depreciation


At 1 January 2024
45,743
415,147
129,563
171,222
364,420
1,126,095


Charge for the year on owned assets
24,530
23,308
404
47,566
80,228
176,036


Charge for the year on financed assets
-
40,738
22,650
23,956
33,339
120,683



At 29 December 2024

70,273
479,193
152,617
242,744
477,987
1,422,814



Net book value



At 29 December 2024
143,072
149,293
404
210,665
264,743
768,177



At 31 December 2023
123,079
182,683
23,458
156,098
318,730
804,048

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


29 December
31 December
2024
2023
£
£



Plant and machinery
63,127
103,865

Fleet
-
22,650

Furniture, fittings and equipment
114,413
171,707

177,540
298,222

Page 23

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

13.


Debtors

2024
2023
£
£


Trade debtors
5,611,781
4,001,600

Other debtors
321,729
321,729

Prepayments and accrued income
844,075
942,842

6,777,585
5,266,171



14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Other loans
37,417
49,888

Trade creditors
2,542,142
1,581,103

Corporation tax
95,464
117,784

Other taxation and social security
775,774
636,536

Obligations under finance lease and hire purchase contracts
138,201
153,411

Other creditors
2,658,112
2,587,597

Accruals and deferred income
930,360
418,681

7,177,470
5,545,000


The following liabilities were secured:

2024
2023
£
£



Other creditors
2,180,178
2,543,991


The other creditors includes an invoice financing facility secured by a fixed charge and a floating charge over the property or undertaking of the Company.

Page 24

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

15.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Other loans
-
37,417

Net obligations under finance leases and hire purchase contracts
105,612
243,152

105,612
280,569



16.


Deferred taxation






2024
2023


£

£






At beginning of year
135,206
153,553


Credit to profit or loss
(12,163)
(18,347)



At end of year
123,043
135,206

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
123,043
135,206


17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



10 (2023 - 10) Ordinary shares of £1.00 each
10
10



18.


Reserves

Profit and loss account

Profit and loss account represents all cumulative retained profits and losses and is all considered to be distributable.

Page 25

 
PROLOG FULFILMENT LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 DECEMBER 2024

19.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £139,530 (2023: £135,812). Contributions totalling £37,587 (2023: £34,860) were payable to the fund at the Balance Sheet date and are included in creditors.


20.


Commitments under operating leases

At 29 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
1,651,830
1,148,514

Later than 1 year and not later than 5 years
5,764,457
3,151,009

Later than 5 years
-
754,830

7,416,287
5,054,353


21.


Related party transactions

Prolog Fulfilment Ltd employs 3 (2023: 3) family members of the directors. Their aggregate gross remuneration is £92,817 (2023: £63,080). Pension contributions made for these employees was £9,957 (2023: £9,427).


22.


Controlling party

In the opinion of the directors, there is no ultimate controlling party of Prolog Fulfilment Ltd.
 
Page 26