REGISTERED NUMBER: 06457320 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

MERCHANTS TRANSPORT LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

C P Fox

J E Fox

SECRETARY:

C P Fox

REGISTERED OFFICE:

Station Road

Stoney Stanton

Leicestershire

LE9 4LX

REGISTERED NUMBER:

06457320 (England and Wales)

AUDITORS:

Magma Audit LLP

16 Davy Court

Castle Mound Way

Rugby, CV23 0UZ

Magma Audit LLP is part

Of the Dains Group

SOLICITORS:

Knights PLC

34 Pocklingtons Walk

Leicester

LE1 6BU

FIXED ASSETS

Tangible assets

4

33,319

56,055

CURRENT ASSETS

Debtors

5

288,396

136,411

Cash at bank

60,566

92,898

348,962

229,309

CREDITORS

Amounts falling due within one year

6

(295,911

)

(263,997

)

NET CURRENT ASSETS/(LIABILITIES)

53,051

(34,688

)

TOTAL ASSETS LESS CURRENT LIABILITIES

86,370

21,367

PROVISIONS FOR LIABILITIES

(13,889

)

(13,889

)

NET ASSETS

72,481

7,478

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

72,480

7,477

SHAREHOLDERS' FUNDS

72,481

7,478

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

C P Fox - Director

1.	STATUTORY INFORMATION

Merchants Transport Limited is a private company, limited by shares, and is incorporated in England and Wales, registration number 06457320. The address of the registered office is Station Road, Stoney Stanton, Leicester, LE9 4LX.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention and in accordance with Section 1A Small Entities of Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the UK and the Republic of Ireland" and the Companies Act 2006.

The financial statements are presented in Sterling (£), rounded to the nearest £1.

Preparation of consolidated financial statements

The group for which consolidated financial statements are prepared, which include the results of this company, is that headed by CPF Commercial Limited, whose registered office is Station Road, Stoney Stanton, Leicester, LE9 4LX.

Going concern

The director has assessed the financial position of the company in light of ongoing economic uncertainty. At 31 December 2024 the company has net current assets of £53,051 (2023: Net current liabilities of £34,688) and net assets of £72,481 (2023: net assets of £7,478). The director has assessed future cashflow forecasts and the potential impact of the economic conditions and considers the company to have sufficient resources to meet its liabilities as they fall due for at least twelve months from the signing of these financial statements and has therefore prepared the financial statements on a going concern basis.

Turnover

Turnover 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.

Tangible fixed assets

Tangible fixed assets 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, using either a straight line or reducing balance method, as indicated below:

Fixtures and fittings

- 33% straight line per annum

Motor vehicles

- 14% straight line per annum

The depreciation charge is pro-rated in the years of acquisition and disposal of assets.

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 profit or loss.

Financial instruments

The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, 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.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors and 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 payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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.

Hire purchase commitments

Assets obtained under hire purchase contracts are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. 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 profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Operating leased assets

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 profit and loss account on a straight-line basis over the period of the lease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2023 - 12 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 January 2024

872

149,771

150,643

Additions

433

-

433

Disposals

-

(6,400

)

(6,400

)

At 31 December 2024

1,305

143,371

144,676

DEPRECIATION

At 1 January 2024

751

93,837

94,588

Charge for year

223

20,736

20,959

Eliminated on disposal

-

(4,190

)

(4,190

)

At 31 December 2024

974

110,383

111,357

NET BOOK VALUE

At 31 December 2024

331

32,988

33,319

At 31 December 2023

121

55,934

56,055

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

106,344

37,132

Amounts owed by group undertakings

138,475

62,118

Prepayments and accrued income

43,577

37,161

288,396

136,411

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Hire purchase contracts (see note 7)

-

14,851

Trade creditors

65,914

23,506

Amounts owed to group undertakings

190,000

190,000

Tax

-

188

Social security and other taxes

11,878

9,297

VAT

19,619

10,091

Other creditors

946

5,448

Accruals and deferred income

7,554

10,616

295,911

263,997

7.	LEASING AGREEMENTS

The future minimum hire purchase lease payments are as follows:

2024

2023

£

£

Not later than one year

-

15,117

Later than one year and not later than five years

-

-

Total gross payments

-

15,117

Less: finance charges

-

(316

)

Carrying amount of liability

-

14,851

Non-cancellable

operating leases

2024

2023

£

£

Within one year

91,582

91,582

Between one and five years

59,927

151,509

151,509

243,091

8.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Hire purchase contracts

-

14,851

These are secured over the assets to which they relate.

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Victoria Craig (Senior Statutory Auditor)

for and on behalf of Magma Audit LLP

10.	CONTINGENT LIABILITIES

The company is part of a group VAT registration with its parent company and fellow subsidiaries. The company is jointly and severally liable for the liabilities of the VAT group to which it belongs. At 31 December 2024, the group VAT liability amounted to £176,164 (2023: £168,707) of which £19,619 (2023: £10,091) is recognised in Merchants Transport Limited.

The company is party to a cross guarantee arrangement in relation to the bank borrowings of CPF Commercial Limited, a company within the same group. Security has been given in the form of a fixed and floating debenture over all assets of the company. At the balance sheet date the potential liability amounted to £1,752,522 (2023: £1,805,968).

11.	RELATED PARTY DISCLOSURES

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.