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Registration number: 11441896

Vernon Land Transport Limited
Annual Report and Consolidated Financial Statements
for the Year Ended 31 January 2025

Vernon Land Transport Limited

Contents

Strategic Report | 1
Director's Report | 2
Statement of Director's Responsibilities | 3
Independent Auditor's Report | 4 to 7
Consolidated Profit and Loss Account and Statement of Retained Earnings | 8
Consolidated Balance Sheet | 9
Balance Sheet | 10
Consolidated Statement of Cash Flows | 11
Notes to the Financial Statements | 12 to 26

Vernon Land Transport Limited

Strategic Report for the Year Ended 31 January 2025

The director presents his strategic report for the year ended 31 January 2025.

Principal activity

The principal activity of the group is distribution and warehousing primarily in the UK servicing various industries including retail, manufacturing, food, print, construction and automotive.

Fair review of the business

Following a year of consolidation from 2024 into 2025, the Directors report a successful year, resulting in a healthy increase in both revenue and net profitability. New client generation has been ongoing throughout the year alongside continued focus on our existing client portfolio, ensuring customer satisfaction and growth within their accounts.
Coinciding with the above, further growth has been fuelled by continuous reinvestment, a significant outlay being the installation of a Vehicle Maintenance Unit on site, bringing servicing, repair and maintenance of our fleet under our own control. Furthermore, additional funds have been deployed towards software implementations, particularly a new accounting system, as well as upgrades to the Transport and Warehouse Management systems and HR platform.
It remains key to ensure our fleet of HGV’s remain efficient and environmentally compliant, whilst operating a modern fleet.

Quality Certifications

The business is proud to announce that we have successfully been recertified for FORS Bronze and Silver demonstrating our continued commitment to best practices in safety, efficiency, and environmental protection.
We're also proud to announce that we’ve successfully passed our ISO surveillance audit, reaffirming our commitment to quality, compliance, environmental management and continuous improvement.
This achievement reflects the dedication of our team and our ongoing focus on maintaining the highest standards across everything we do.

Carbon green energy

VLT Headquarters is now fully powered by green energy, reducing our environmental impact every day. The business has also updated processes to fully comply with the latest food waste separation regulations. Two simple steps that reflect our ongoing commitment to sustainable logistics.

Principal risks and uncertainties

The business enjoys a healthy credit rating with major credit reference agencies and operates a strict policy of paying all suppliers to agreed credit terms. Credit risk is a potential exposure to the business; we seek to reduce risk through credit approval checks for new and existing customers. We also operate a stringent credit control process.
External factors such as political instability impact market volatility and demand, we will continue to monitor this closely and act accordingly. Additionally, our industry has been subject to a rising cost base therefore it is paramount to implement cost control measures to protect profitability and our growth plans.

Approved and authorised by the director on 23 October 2025

......................................... A D Land Director

Vernon Land Transport Limited

Director's Report for the Year Ended 31 January 2025

The director presents his report and the for the year ended 31 January 2025.

Directors of the group

The directors who held office during the year were as follows:

C L Jack (resigned 8 January 2025)

A D Land

Financial instruments

Objectives and policies

The management objectives are to retain sufficient liquid funds to enable it to meet its day to day requirements, minimise the company's exposure to fluctuating interest rates, and match the repayment schedule of any external borrowings or overdrafts with the future cash flows expected to arise from the company's trading activities.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.
Its exposure to price risk, credit risk, liquidity risk and cash flow risk is minimised by retaining sufficient liquid funds to enable it to meet its day to day requirements.

Future developments

Process automation will be key moving forward and form part of future strategy. This will be across all departments with the intention of streamlining processes and operating more effectively.
Whilst maintaining our quality certifications, we will be working towards achieving BRCGS to comply with the needs of both existing customers and allow us to market our offerings to an expanded potential customer base.
Our people remain our greatest asset. Recognising their commitment is something we don’t lose sight of. People development, through both internal and external training will remain a priority. To add to this, we will look to strengthen the senior leadership team to further support the expanding customer base, the operational needs of the business and further cement our position with the market.

Disclosure of information to the auditor

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.

Appointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the appointment of Watson Buckle Limited as auditors of the company was confirmed at the Annual General Meeting.

Approved and authorised by the director on 23 October 2025

......................................... A D Land Director

Vernon Land Transport Limited

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

• | select suitable accounting policies and apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Vernon Land Transport Limited

Independent Auditor's Report to the Members of Vernon Land Transport Limited

Opinion

We have audited the financial statements of Vernon Land Transport Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2025, which comprise the Consolidated Profit and Loss Account and Statement of Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, 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 group's affairs as at 31 January 2025 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Vernon Land Transport Limited

Independent Auditor's Report to the Members of Vernon Land Transport Limited

Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Director's Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
• | the parent company financial statements are not in agreement with the accounting records and returns; or
• | certain disclosures of directors' remuneration specified by law are not made; or
• | we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 3], the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 auditor’s 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.

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 auditor's report.

Vernon Land Transport Limited

Independent Auditor's Report to the Members of Vernon Land Transport Limited

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.
In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.
Following this assessment we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in evaluating the revenue and assets of the company.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

We then performed audit procedures after consideration of the above risks which included the following:

• | Reviewing the procedures around revenue recognition to ensure revenue is accurately recorded in the correct financial period;
• | Verifying the existence fixed assets and reviewing depreciation policies to ensure the valuation of assets is accurate;
• | enquiring of management concerning actual and potential litigation and claims;
• | reviewing correspondence with HMRC, and the group's legal advisors;
• | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• | reading minutes of meetings of those charged with governance; and;
• | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.
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.

Vernon Land Transport Limited

Independent Auditor's Report to the Members of Vernon Land Transport Limited

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s 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.

......................................
Mark Wilcock FCA (Senior Statutory Auditor)
For and on behalf of Watson Buckle Limited,
Statutory Auditors & Chartered Accountants
Bradford

23 October 2025

Vernon Land Transport Limited

Consolidated Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 January 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 8,493,466 | 7,303,725
Cost of sales |  | (5,199,825) | (4,333,879)
Gross profit |  | 3,293,641 | 2,969,846
Administrative expenses |  | (4,162,487) | (3,795,074)
Other operating income | 4 | 1,309,606 | 1,026,215
Operating profit | 5 | 440,760 | 200,987
Other interest receivable and similar income | 7 | 31,511 | 21,356
Interest payable and similar charges | 8 | (101,259) | (98,410)
Profit before tax |  | 371,012 | 123,933
Taxation | 12 | (63,149) | 7,092
Profit for the financial year |  | 307,863 | 131,025
Profit/(loss) attributable to: |  |  |
Owners of the company |  | 307,863 | 131,025
Retained earnings brought forward |  | 2,429,271 | 2,638,015
Dividends paid |  | (288,938) | (339,769)
Retained earnings carried forward |  | 2,448,196 | 2,429,271

Vernon Land Transport Limited

(Registration number: 11441896)
Consolidated Balance Sheet as at 31 January 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |  |  |
Negative goodwill | 13 |  | - |  | (71,943)
Tangible assets | 14 | 3,615,206 |  | 3,102,893 |
Investment property | 15 | 190,685 |  | 164,276 |
|  |  | 3,805,891 |  | 3,267,169
Current assets |  |  |  |  |
Debtors | 17 | 2,689,874 |  | 2,495,539 |
Cash at bank and in hand |  | 1,038,879 |  | 1,247,024 |
|  | 3,728,753 |  | 3,742,563 |
Creditors: Amounts falling due within one year | 19 | (2,666,850) |  | (2,453,053) |
Net current assets |  |  | 1,061,903 |  | 1,289,510
Total assets less current liabilities |  |  | 4,867,794 |  | 4,484,736
Creditors: Amounts falling due after more than one year | 19 |  | (1,628,198) |  | (1,350,065)
Provisions for liabilities | 21 |  | (791,000) |  | (705,000)
Net assets |  |  | 2,448,596 |  | 2,429,671
Capital and reserves |  |  |  |  |
Called up share capital | 23 | 400 |  | 400 |
Retained earnings |  | 2,448,196 |  | 2,429,271 |
Equity attributable to owners of the company |  | 2,448,596 |  | 2,429,671 |
Shareholders' funds |  |  | 2,448,596 |  | 2,429,671

Approved and authorised by the director on 23 October 2025

......................................... A D Land Director

Vernon Land Transport Limited

(Registration number: 11441896)
Balance Sheet as at 31 January 2025

| Note | 2025 | 2024
|  | £ | £ | £ | £
Fixed assets |  |  |  |  |
Investments | 16 |  | 842,450 |  | 842,450
Current assets |  |  |  |  |
Cash at bank and in hand |  |  | 100 |  | 100
Net assets |  |  | 842,550 |  | 842,550
Capital and reserves |  |  |  |  |
Called up share capital | 23 | 400 |  | 400 |
Profit and loss account |  | 842,150 |  | 842,150 |
Shareholders' funds |  |  | 842,550 |  | 842,550

The exemption under section 408 of the Companies Act has been taken therefore a Company Profit and Loss Account is not included. The company made a profit after tax for the financial year of £288,938 (2024 - profit of £339,769).

Approved and authorised by the director on 23 October 2025

......................................... A D Land Director

Vernon Land Transport Limited

Consolidated Statement of Cash Flows for the Year Ended 31 January 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
Profit for the year |  | 307,863 | 131,025
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 5 | 844,706 | 776,597
(Profit)/loss on disposal of tangible assets |  | (8,798) | 18,052
Finance income | 7 | (31,511) | (21,356)
Finance costs | 8 | 101,259 | 98,410
Corporation tax expense |  | 63,149 | (7,092)
|  | 1,276,668 | 995,636
Working capital adjustments |  |  |
Increase in trade debtors |  | (171,335) | (729,699)
Increase in trade creditors |  | 79,587 | 527,405
(Decrease)/increase in deferred income, including government grants |  | (3,469) | 4,875
Cash generated from operations |  | 1,181,451 | 798,217
Corporation tax expense |  | (23,149) | (46,881)
Net cash flow from operating activities |  | 1,158,302 | 751,336
Cash flows from investing activities |  |  |
Interest received |  | 31,511 | 21,356
Acquisitions of tangible assets |  | (153,325) | (337,200)
Proceeds from sale of tangible assets |  | 33,791 | 38,957
Acquisition of investment properties | 15 | (26,409) | (17,744)
Net cash flows from investing activities |  | (114,432) | (294,631)
Cash flows from financing activities |  |  |
Interest paid | 8 | (101,259) | (98,410)
Repayment of bank borrowing |  | - | (219,910)
Repayment of other borrowing |  | 4,842 | (30,118)
Payments to finance lease creditors |  | (866,660) | (415,908)
Dividends paid |  | (288,938) | (339,769)
Net cash flows from financing activities |  | (1,252,015) | (1,104,115)
Net decrease in cash and cash equivalents |  | (208,145) | (647,410)
Cash and cash equivalents at 1 February |  | 1,247,024 | 1,894,434
Cash and cash equivalents at 31 January |  | 1,038,879 | 1,247,024

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 8, Leeds Bradford Airport Estate
Harrogate Road
Yeadon
Leeds
LS19 7WP

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were 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.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company's functional and presentation currency is pound sterling.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Negative goodwill

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 January 2025.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Key sources of estimation uncertainty

Useful economic lives of tangible assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount is £3,629,206 (2024 -£3,102,893).

Impairment of debtors
The company makes an estimate of the recoverable value of trade debtors and other debtors. When assessing the impairment of trade debtors and other debtors, management considers factors which include the current credit rating of the debtor, the ageing profile of debtors and historical experience. The carrying amount is £1,670,963 (2024 -£1,437,520).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax.
The company recognises revenue when the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Motor vehicles | 25% reducing balance basis
Plant and machinery | 25% reducing balance basis
Leasehold improvements | 10% straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually. Valuations are based on observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Provisions

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Financial assets
Basic financial assets, including trade and other receivables, 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 for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss and any subsequent reversal is recognised in profit or loss.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

3 | Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Rendering of services | 8,493,466 | 7,303,725

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

4 | Other operating income

The analysis of the group's other operating income for the year is as follows:

| 2025 £ | 2024 £
Government grants | 3,469 | 4,625
Sub lease rental income | 1,304,744 | 939,753
Miscellaneous other operating income | 1,393 | 81,837
| 1,309,606 | 1,026,215

5 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 916,649 | 899,929
Amortisation credit | (71,943) | (123,332)
Operating lease expense - plant and machinery | 5,382 | 12,974
(Profit)/loss on disposal of property, plant and equipment | (8,798) | 18,052

6 | Government grants

During the year the company has received grant income of £3,469 (2024: £4,625) in respect of the Clean Air HGV Fund Grant.

The amount of grants recognised in the financial statements was £3,469 (2024 - £4,625).

7 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | 31,511 | 21,356

8 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | - | 11,098
Interest on obligations under finance leases and hire purchase contracts | 101,259 | 87,312
| 101,259 | 98,410

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

9 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 2,422,856 | 2,116,808
Social security costs | 241,478 | 200,393
Pension costs, defined contribution scheme | 395,474 | 421,192
| 3,059,808 | 2,738,393

The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Administration and support | 20 | 16
Distribution | 44 | 43
| 64 | 59

10 | Director's remuneration

The director's remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 26,579 | 27,505
Contributions paid to money purchase schemes | 120,000 | 160,000
| 146,579 | 187,505

During the year the number of directors who were receiving benefits and share incentives was as follows:

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 2 | 2

11 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of these financial statements | 21,400 | 21,375

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

12 | Taxation

Tax charged/(credited) in the consolidated profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | (23,000) | 23,000
UK corporation tax adjustment to prior periods | 149 | (92)
| (22,851) | 22,908
Deferred taxation |  |
Arising from origination and reversal of timing differences | 86,000 | (30,000)
Tax expense/(credit) in the profit and loss account | 63,149 | (7,092)

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of 25% (2024 - 24.03%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit before tax | 371,012 | 123,933
Corporation tax at standard rate | 92,753 | 29,781
Tax decrease from effect of capital allowances and depreciation | (17,986) | (31,579)
Tax increase/(decrease) from other short-term timing differences | 4,413 | (9,000)
Effect of expense not deductible in determining taxable profit (tax loss) | 6,969 | 4,921
Effect of tax losses | (23,000) | -
Deferred tax credit relating to changes in tax rates or laws | - | (1,215)
Total tax charge/(credit) | 63,149 | (7,092)

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

Deferred tax

Group

2025 | Asset £ | Liability £
Accelerated tax depreciation | - | 856,000
Provisions | 17,000 | -
Losses carried forward | 48,000 | -
| 65,000 | 856,000

2024 | Asset £ | Liability £
Accelerated tax depreciation | - | 707,000
Provisions | 2,000 | -
| 2,000 | 707,000

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £337,986 (2024 - £254,579).

13 | Intangible assets

Group

Negative goodwill | 2025 £
At 1 February 2024 | (71,943)
Amortisation of negative goodwill | 71,943
At 31 January 2025 | -

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

14 | Tangible assets

Group

| Land and buildings £ | Plant and machinery £ | Motor vehicles £ | Total £
Cost or valuation
At 1 February 2024 | 239,151 | 1,135,206 | 5,190,794 | 6,565,151
Additions | 185,099 | 33,693 | 1,235,163 | 1,453,955
Disposals | - | (2,990) | (158,703) | (161,693)
At 31 January 2025 | 424,250 | 1,165,909 | 6,267,254 | 7,857,413
Depreciation
At 1 February 2024 | 33,536 | 511,420 | 2,917,302 | 3,462,258
Charge for the year | 31,404 | 157,533 | 727,712 | 916,649
Eliminated on disposal | - | - | (136,700) | (136,700)
At 31 January 2025 | 64,940 | 668,953 | 3,508,314 | 4,242,207
Carrying amount
At 31 January 2025 | 359,310 | 496,956 | 2,758,940 | 3,615,206
At 31 January 2024 | 205,615 | 623,786 | 2,273,492 | 3,102,893

Included within the net book value of land and buildings above is £359,310 (2024 - £205,615) in respect of short leasehold land and buildings.

15 | Investment properties

Group

| 2025 £
At 1 February | 164,276
Additions | 26,409
At 31 January | 190,685

There has been no valuation of investment property by an independent valuer.

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

16 | Investments

Company

| 2025 £ | 2024 £
Investments in subsidiaries | 842,450 | 842,450

Subsidiaries | £
Cost or valuation
At 1 February 2024 | 842,450
Carrying amount
At 31 January 2025 | 842,450
At 31 January 2024 | 842,450

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking | Registered office | Holding | Proportion of voting rights and shares held
|  |  | 2025 | 2024
Subsidiary undertakings
VLT Holdings Ltd | As per Note 1 | Ordinary shares | 100% | 100%
VLT Logistics Ltd | As per Note 1 | Ordinary shares | 100% | 100%

Subsidiary undertakings
VLT Holdings Ltd The principal activity of VLT Holdings Ltd is intermediate holding company.
VLT Logistics Ltd The principal activity of VLT Logistics Ltd is haulage & storage. VLT Logistics Ltd is a sub-subsidiary undertaking .

17 | Debtors

| Group | Company
Current | 2025 £ | 2024 £ | 2025 £ | 2024 £
Trade debtors | 1,670,963 | 1,437,520 | - | -
Other debtors | 494,272 | 643,288 | - | -
Prepayments | 501,639 | 414,731 | - | -
Corporation tax asset | 23,000 | - | - | -
| 2,689,874 | 2,495,539 | - | -

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

18 | Cash and cash equivalents

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Cash on hand | 300 | 300 | 100 | 100
Cash at bank | 1,038,579 | 1,246,724 | - | -
| 1,038,879 | 1,247,024 | 100 | 100

19 | Creditors

|  | Group | Company
| Note | 2025 £ | 2024 £ | 2025 £ | 2024 £
Due within one year |  |  |  |  |
Loans and borrowings | 20 | 781,127 | 623,050 | - | -
Trade creditors |  | 518,571 | 754,153 | - | -
Social security and other taxes |  | 294,814 | 184,879 | - | -
Outstanding defined contribution pension costs |  | 16,507 | 9,888 | - | -
Other creditors |  | 38,393 | 1,674 | - | -
Accruals |  | 1,014,836 | 852,940 | - | -
Corporation tax liability |  | - | 23,000 | - | -
Deferred income |  | 2,602 | 3,469 | - | -
|  | 2,666,850 | 2,453,053 | - | -
Due after one year |  |  |  |  |
Loans and borrowings | 20 | 1,620,394 | 1,339,659 | - | -
Deferred income |  | 7,804 | 10,406 | - | -
|  | 1,628,198 | 1,350,065 | - | -

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

20 | Loans and borrowings

Current loans and borrowings

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Hire purchase contracts | 775,397 | 622,162 | - | -
Other borrowings | 5,730 | 888 | - | -
| 781,127 | 623,050 | - | -

Non-current loans and borrowings

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Hire purchase contracts | 1,620,394 | 1,339,659 | - | -

21 | Provisions for liabilities

Group

| Deferred tax £ | Total £
At 1 February 2024 | 705,000 | 705,000
Increase (decrease) in existing provisions | 86,000 | 86,000
At 31 January 2025 | 791,000 | 791,000

22 | Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £395,474 (2024 - £421,192).
Contributions totalling £16,507 (2024 - £9,888) were payable to the scheme at the end of the year and are included in creditors.

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

23 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary A shares of £1 each | 22 | 22 | 22 | 22
Ordinary B shares of £1 each | 22 | 22 | 22 | 22
Ordinary C shares of £1 each | 48 | 48 | 48 | 48
Ordinary D shares of £1 each | 48 | 48 | 48 | 48
Ordinary F shares of £1 each | 130 | 130 | 130 | 130
Ordinary G shares of £1 each | 130 | 130 | 130 | 130
| 400 | 400 | 400 | 400

24 | Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 775,397 | 622,162
Later than one year and not later than five years | 1,620,394 | 1,339,659
| 2,395,791 | 1,961,821

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 1,183,000 | 1,183,000
Later than one year and not later than five years | 3,832,000 | 3,832,000
Later than five years | 1,892,250 | 2,675,250
| 6,907,250 | 7,690,250

The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,434,707 (2024 - £1,460,568).

Operating leases - lessor

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 628,739 | 229,102

Total contingent rents recognised as income in the period are £1,306,137 (2024 - £939,753).

Vernon Land Transport Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

25 | Related party transactions

Group

Transactions with the director

2025 | At 1 February 2024 £ | Advances to director £ | Repayments by director £ | At 31 January 2025 £
A D Land
Interest free loan | 343,019 | 223,949 | (275,146) | 291,822

2024 | At 1 February 2023 £ | Advances to director £ | Repayments by director £ | At 31 January 2024 £
A D Land
Interest free loan | (29,867) | 804,963 | (432,077) | 343,019

Income and receivables from related parties

2025

2024 | Other related parties £
Amounts receivable from related party | 120,932

Expenditure with and payables to related parties

2025 | Key management £ | Other related parties £
Amounts payable to related party | 5,730 | 6,800

2024 | Key management £
Amounts payable to related party | 888