In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Sussex Transport Limited for the period ended 30 September 2024 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.

This report is made solely to the board of directors of Sussex Transport Limited, as a body, in accordance with the terms of our engagement letter dated 19 June 2024. Our work has been undertaken solely to prepare for your approval the financial statements of Sussex Transport Limited and state those matters that we have agreed to state to the board of directors of Sussex Transport Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Sussex Transport Limited and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Sussex Transport Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Sussex Transport Limited. You consider that Sussex Transport Limited is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or a review of the financial statements of Sussex Transport Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial period ended 30 September 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Sussex Transport Limited is a private company limited by shares incorporated in England and Wales. The registered office is Downsview House, Marlborough Road, Lancing Business Park, Lancing, West Sussex, BN15 8SU.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. 

Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.

These financial statements have been prepared for a period of 18 months, after the directors chose to extend the accounting reference date for commercial reasons. The prior period was 12 months in length, therefore the figures and associated notes will not be entirely comparable.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Rental income is recognised on a receivable basis.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

The exceptional profit on disposal of fixed assets has arisen as the relevant vehicles were undervalued when they were refinanced. See note from 2022 below.

(2022: The exceptional loss on disposal of fixed assets has arisen as a result of refinancing some of the company's vehicle fleet. To facilitate the company's cashflow through the pandemic to protect the trade, employees, supply chain and customers, the directors felt it necessary to refinance a number of the unencumbered motor vehicles used for carrying out the company's trade. The nature of the finance was that of a sale and then hire purchase refinance. Due to the lower than market value applied to the vehicles by the finance company, this triggered a large loss when compared to the vehicles' carrying value in the accounts. It is expected that due to the current market value of the vehicles , they will make a profit when sold in the future.)

With regards to the bad debt and legal fees, the directors have made a prudent decision to provide for the whole amount of a disputed customer debt along with legal fees incurred. The customer debt is with Actavo Events, a Denis O'Brien and Leslie Buckley company. Actavo Group directors and senior financial management team reneged on its written promise of payment, pertaining to a DHSC framework contract.

The average monthly number of persons (including directors) employed by the company during the period was 48 (2023 - 54).

The factoring account balance of £290,422 (2023: £nil) included within bank loans and overdrafts above is secured against trade debtors.

Included in bank loans and overdrafts are bank loans of £118,441 (2023: £51,966) secured over the assets of the company.

Included within other creditors in notes 6 and 7 above are obligations under hire purchase contracts, totalling £1,205,216 (2023: £1,522,871). These hire purchase contracts are secured on the assets to which they relate.

The amounts included in bank loans and overdrafts are secured over the assets of the company.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Advances or credits have been granted by the company to its directors as follows: