REGISTERED NUMBER: 00967165 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

RICHARD PRESTON & SON LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

Mrs A Preston MBE

Mr J R Godwin

Mr J D Preston

REGISTERED OFFICE:

Potto

Northallerton

North Yorkshire

DL6 3HX

REGISTERED NUMBER:

00967165 (England and Wales)

SENIOR STATUTORY AUDITOR:

Jemma Hoggard FCA

INDEPENDENT AUDITORS:

Baines Jewitt Limited

Statutory Auditors

Spitfire House

19 Falcon Court

Preston Farm Industrial Estate

Stockton-on-Tees

TS18 3TU

BANKERS:

HSBC

PO Box 117

60 Albert Road

Middlesbrough

TS1 1RS

The directors present their strategic report for the year ended 31 December 2024.

The business was established in 1936 at our head office at Potto in North Yorkshire. It now operates from a further three depots at Teesside, West Yorkshire and the South East.

In addition to the principal activity of road haulage, the company also offers warehousing services in the North and South East.

The company is long established, has a strong balance sheet and the directors are confident in retaining its high position in the market.

REVIEW OF THE BUSINESS

For the year ended 31 December 2024, the directors are pleased to report total comprehensive income of £489,641 (2023: £618,132) for the year.

The year ended with a healthy cash position of £1,101,110 (2023: £1,058,958)

Turnover is closely linked to fuel escalator agreements, which align sales values with prevailing fuel prices. As fuel costs have eased, our pricing has adjusted accordingly, importantly the underlying volume of activity remains strong.

The directors continue to closely monitor asset and employee productivity and are implementing strategic measures to drive improvements in the company's overall performance during the current financial year. In addition, the company has made significant capital investments in its fleet to enhance operational capacity, service delivery, and long-term growth.

The Company tightly manages its cash flow and working capital and uses several KPI's to further monitor its performance. These include a range of financial ratios as follows:

- Gross profit %

- Operating profit %

- Debtor days

- Cash balance

- Staff utilisation

PRINCIPAL RISKS AND UNCERTAINTIES

The company closely monitors any potential risks and uncertainties within the haulage industry. The principal risks are detailed below.

Economy

The company is always at risk of the economy and customers reactions to the state of the economy, we strive to offer the highest level of customer service in order to mitigate this risk as much as possible.

Competition

The company closely monitors the performance levels of drivers and vehicles with the aim of ensuring an efficient operation for its customers.

Fuel

The company faces fluctuating fuel costs, however the business uses variable fuel surcharges to mitigate this risk.

Credit

The company trades with many businesses, both local and further afield. All customers are initially subject to credit vetting procedures and receivable balances and monitored on an ongoing basis.

Cashflow/liquidity risk

Cashflow and liquidity are monitored regularly against forecasts and available finance facilities to ensure the company has sufficient headroom. The company actively maintains a mixture of long-term and short-term committed facilities which are designed to ensure the company has sufficient available funds for operations and planned investment.The company continues to be well supported by their bankers.

Skills availability (people)

The company continues to offer training to all employees.

FUTURE DEVELOPMENTS

The company has made progress in the last twelve months and the prospects for the current financial year are good.

The company is continuing to invest in its fleet to maintain its high fleet standards.

ON BEHALF OF THE BOARD:

Mrs A Preston MBE - Director

29 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a haulage contractor.

DIVIDENDS

During the year, the company declared a distribution in specie to transfer land and property to the parent company, Potto Group Limited. The total value of the distribution was £1,494,164.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mrs A Preston MBE

Mr J R Godwin

Mr J D Preston

EMPLOYEES

The group has continued its practice of keeping employees informed on matters affecting them as employees and the financial and economic factors affecting the performance of the group.

DISABLED EMPLOYEES

Applications for employment by disabled persons are given full and fair consideration for all vacancies in accordance with their particular aptitudes and abilities.

In the event of an employee becoming disabled, every effort is given to retrain them in order that their employment with the group may continue.

It is the policy of the group that training, career development and promotion opportunities should be available to all employees.

DISCLOSURE IN THE STRATEGIC REPORT

The principal risks and uncertainties facing the company and the likely future developments have been outlined within the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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), 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 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Baines Jewitt Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs A Preston MBE - Director

29 September 2025

Opinion

We have audited the financial statements of Richard Preston & Son Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 31 December 2024 and of its loss 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors 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 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, 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 Statement of Directors' Responsibilities set out on pages four and five, 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 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to Licensing, Health & Safety and Employment law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

We evaluated management's opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:

-

discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

-

evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities;

-

challenging assumptions and judgements made by management in their significant accounting estimates; and

-

identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.

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.

Jemma Hoggard FCA (Senior Statutory Auditor)

for and on behalf of Baines Jewitt Limited

Statutory Auditors

Spitfire House

19 Falcon Court

Preston Farm Industrial Estate

Stockton-on-Tees

TS18 3TU

29 September 2025

TURNOVER

3

15,596,489

16,583,690

Cost of sales

14,286,443

14,337,161

GROSS PROFIT

1,310,046

2,246,529

Administrative expenses

1,663,556

1,676,589

(353,510

)

569,940

Other operating income

4

399,249

360,855

OPERATING PROFIT

6

45,739

930,795

Interest receivable and similar income

8

29,132

30,814

74,871

961,609

Interest payable and similar expenses

9

223,230

152,477

(LOSS)/PROFIT BEFORE TAXATION

(148,359

)

809,132

Tax on (loss)/profit

10

(38,000

)

191,000

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(110,359

)

618,132

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

600,000

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

600,000

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

489,641

618,132

FIXED ASSETS

Tangible assets

12

10,564,567

11,908,863

Investments

13

104

104

10,564,671

11,908,967

CURRENT ASSETS

Stocks

14

114,692

159,676

Debtors

15

2,910,238

2,700,616

Cash at bank and in hand

1,101,110

1,058,958

4,126,040

3,919,250

CREDITORS

Amounts falling due within one year

16

4,115,830

3,611,026

NET CURRENT ASSETS

10,210

308,224

TOTAL ASSETS LESS CURRENT LIABILITIES

10,574,881

12,217,191

CREDITORS

Amounts falling due after more than one year

17

(2,323,254

)

(2,923,041

)

PROVISIONS FOR LIABILITIES

21

(871,000

)

(909,000

)

NET ASSETS

7,380,627

8,385,150

CAPITAL AND RESERVES

Called up share capital

22

5,000

5,000

Revaluation reserve

2,758,633

3,414,737

Retained earnings

4,616,994

4,965,413

SHAREHOLDERS' FUNDS

7,380,627

8,385,150

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Mrs A Preston MBE - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

5,000

4,347,281

3,414,737

7,767,018

Changes in equity

Total comprehensive income

-

618,132

-

618,132

Balance at 31 December 2023

5,000

4,965,413

3,414,737

8,385,150

Changes in equity

Dividends

-

(1,494,164

)

-

(1,494,164

)

Total comprehensive income

-

1,145,745

(656,104

)

489,641

Balance at 31 December 2024

5,000

4,616,994

2,758,633

7,380,627

1.	STATUTORY INFORMATION

Richard Preston & Son Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company 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 Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about Richard Preston & Son Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Potto Group Limited, Goulton Lane, Potto, Northallerton, DL6 3HX.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is the amount derived from ordinary activities, and stated after trade discounts, other sales taxes and net of VAT. Revenue is recognised on the date that the service is provided.

Tangible fixed assets

Freehold land and buildings are included at valuation.

Depreciation is provided to write down the cost of all other tangible fixed assets over their expected useful lives. The rates applicable are as follows:

Plant & machinery

15% on reducing balance

Motor vehicles

Lorries

17.5% of cost for the first four years,

the remaining balance at the end of the

fourth year at 20% on reducing balance

Trailers

12.5% of cost for the first five years,

the remaining balance at the end of the

fifth year at 20% on reducing balance.

Other motor vehicles

25% on reducing balance.

The company carries out annual impairment reviews and the directors' consider that there has been no impairment to these assets.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. These assets are depreciated over their estimated useful lives.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024

2023

£

£

Provision of haulage services

15,596,489

16,583,690

15,596,489

16,583,690

4.	OTHER OPERATING INCOME

2024

2023

£

£

Rents received

399,249

360,855

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

5,229,179

5,217,377

Social security costs

530,484

531,389

Other pension costs

133,808

145,852

5,893,471

5,894,618

The average number of employees during the year was as follows:

2024

2023

Drivers and maintenance staff

120

127

Office and management

22

22

142

149

2024

2023

£

£

Directors' remuneration

149,080

152,080

Directors' pension contributions to money purchase schemes

8,626

6,327

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

343,303

605,517

Depreciation - owned assets

361,964

274,868

Depreciation - assets on hire purchase contracts

1,086,080

719,974

Loss/(profit) on disposal of fixed assets

19,981

(4,909

)

7.	AUDITORS' REMUNERATION

2024

2023

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

25,500

20,000

Auditors' remuneration for non audit work

960

10,041

8.

INTEREST RECEIVABLE AND SIMILAR INCOME

2024

2023

£

£

Bank interest

29,085

30,785

Other interest

47

29

29,132

30,814

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

-

18

Hire purchase

223,230

152,459

223,230

152,477

10.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

2024

2023

£

£

Deferred tax:

Accelerated capital allowances

(38,000

)

191,000

Tax on (loss)/profit

(38,000

)

191,000

UK corporation tax has been charged at 25% .

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

(Loss)/profit before tax

(148,359

)

809,132

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

(37,090

)

202,283

Effects of:

Expenses not deductible for tax purposes

(469

)

4,021

qualifying for capital

Superdeduction for capital allowances

-

(13,581

)

Deferred tax rounding

(441

)

(1,723

)

Total tax (credit)/charge

(38,000

)

191,000

Tax effects relating to effects of other comprehensive income

2024

Gross

Tax

Net

£

£

£

Revaluation of freehold property

600,000

-

600,000

2023

Gross

Tax

Net

£

£

£

Revaluation of freehold property

The expected net reversal of deferred tax assets and liabilities in 2025 is £352,000 this is due to the reversal of accelerated capital allowances and short term timing differences.

11.

DIVIDENDS

2024

2023

£

£

Ordinary shares of £1 each

Interim

1,494,164

-

12.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

property

machinery

vehicles

Totals

£

£

£

£

COST OR VALUATION

At 1 January 2024

5,050,093

435,458

12,722,519

18,208,070

Additions

21,190

24,149

1,112,260

1,157,599

Disposals

(1,494,164

)

-

(1,174,008

)

(2,668,172

)

Revaluations

600,000

-

-

600,000

At 31 December 2024

4,177,119

459,607

12,660,771

17,297,497

DEPRECIATION

At 1 January 2024

-

369,984

5,929,223

6,299,207

Charge for year

-

10,095

1,437,949

1,448,044

Eliminated on disposal

-

-

(1,014,321

)

(1,014,321

)

At 31 December 2024

-

380,079

6,352,851

6,732,930

NET BOOK VALUE

At 31 December 2024

4,177,119

79,528

6,307,920

10,564,567

At 31 December 2023

5,050,093

65,474

6,793,296

11,908,863

Cost or valuation at 31 December 2024 is represented by:

Freehold

Plant and

Motor

property

machinery

vehicles

Totals

£

£

£

£

Valuation in 2024

4,177,119

-

-

4,177,119

Cost

-

459,607

12,660,771

13,120,378

4,177,119

459,607

12,660,771

17,297,497