REGISTERED NUMBER: 02570523 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 January 2025

for

K & L Freight Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

Mr C M Buckley

Mr M Kidd

SECRETARY:

Mr M Kidd

REGISTERED OFFICE:

16 Cheshire Avenue

Cheshire Business Park

Lostock Gralam

Northwich

Cheshire

CW9 7UA

REGISTERED NUMBER:

02570523 (England and Wales)

AUDITORS:

Thompson Wright (Audit) Limited

Chartered Accountants

and Statutory Auditors

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

The directors present their strategic report for the year ended 31 January 2025.

REVIEW OF BUSINESS

Overall profitability of the company has decreased with a resultant profit before tax of £1,853,044 compared to £2,148,511 in the previous year.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have identified the key risks faced by the company to be market risk, financial risk, credit risk and exchange rate risk.

The directors are constantly monitoring both the quality and range of services it supplies, to minimise market risk.

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.

The company's policy throughout the year has been to try and maintain liquid funds at the bank whilst also funding the repayment of finance and supplier obligations.

Where the company has had to undertake short term borrowings, the company's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. It is the company's policy to minimise the amount of borrowings at floating rates of interest.

The maturity of borrowings are set out in note 15 of the financial statements. The principal credit risk arises from its trade debtors.

In order to manage credit risk, the directors set limits for its customers based on a combination of payment history and credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history. Credit risk exposure is spread out over a large number of customers.

Exchange rate risk is minimised by quotations being caveated that the current rate of exchange at the time of shipment / arrival will be used and quoted rates can change accordingly.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors assess the financial performance of the company by reviewing key financial benchmarks, namely, gross profit percentage, debtor days and creditor days:

2025

2024

Gross profit margin

21.37%

26.64%

Debtors days

28

40

Creditors days

32

44

FUTURE DEVELOPMENTS

Looking to the future, the directors wish to maintain appropriate investment levels in the company to maintain and secure the company's position in the market. The trading outlook for 2025 is positive with trading levels and operating margins being maintained.

ON BEHALF OF THE BOARD:

Mr C M Buckley - Director

21 October 2025

The directors present their report with the financial statements of the company for the year ended 31 January 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of shipping and forwarding agents.

DIVIDENDS

The total distribution of dividends for the year ended 31 January 2025 will be £ 1,390,000 .

DIRECTORS

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

Mr C M Buckley

Mr M Kidd

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Section 414(c) of Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 to set out in the Company's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

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 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 auditors are aware of that information.

AUDITORS

The auditors, Thompson Wright (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr C M Buckley - Director

21 October 2025

Opinion

We have audited the financial statements of K & L Freight Limited (the 'company') for the year ended 31 January 2025 which comprise the Income Statement, Other 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 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 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 page three, 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of shipping and forwarding agents;

- 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, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental, consumer rights act, other industry specific accreditations and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

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.

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.

Richard Thompson BA FCA (Senior Statutory Auditor)

for and on behalf of Thompson Wright (Audit) Limited

Chartered Accountants

and Statutory Auditors

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

21 October 2025

TURNOVER

3

14,201,492

11,877,061

Cost of sales

11,167,037

8,712,555

GROSS PROFIT

3,034,455

3,164,506

Administrative expenses

1,211,378

1,028,898

1,823,077

2,135,608

Other operating income

4

34,170

31,080

OPERATING PROFIT

6

1,857,247

2,166,688

Interest receivable and similar income

3,611

721

1,860,858

2,167,409

Interest payable and similar expenses

7

7,814

18,898

PROFIT BEFORE TAXATION

1,853,044

2,148,511

Tax on profit

8

461,948

514,728

PROFIT FOR THE FINANCIAL YEAR

1,391,096

1,633,783

PROFIT FOR THE YEAR

1,391,096

1,633,783

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,391,096

1,633,783

FIXED ASSETS

Tangible assets

10

32,246

21,605

Investments

11

1,708

1,708

33,954

23,313

CURRENT ASSETS

Debtors

12

3,111,748

3,048,173

Cash at bank and in hand

2,403,794

1,665,943

5,515,542

4,714,116

CREDITORS

Amounts falling due within one year

13

4,400,305

3,471,854

NET CURRENT ASSETS

1,115,237

1,242,262

TOTAL ASSETS LESS CURRENT LIABILITIES

1,149,191

1,265,575

CREDITORS

Amounts falling due after more than one year

14

(30,000

)

(150,000

)

PROVISIONS FOR LIABILITIES

18

(2,520

)

-

NET ASSETS

1,116,671

1,115,575

CAPITAL AND RESERVES

Called up share capital

19

2

2

Retained earnings

20

1,116,669

1,115,573

SHAREHOLDERS' FUNDS

1,116,671

1,115,575

The financial statements were approved by the Board of Directors and authorised for issue on 21 October 2025 and were signed on its behalf by:

Mr C M Buckley - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2023

2

1,031,790

1,031,792

Changes in equity

Dividends

-

(1,550,000

)

(1,550,000

)

Total comprehensive income

-

1,633,783

1,633,783

Balance at 31 January 2024

2

1,115,573

1,115,575

Changes in equity

Dividends

-

(1,390,000

)

(1,390,000

)

Total comprehensive income

-

1,391,096

1,391,096

Balance at 31 January 2025

2

1,116,669

1,116,671

1.	STATUTORY INFORMATION

K & L Freight 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

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 requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

The company has taken advantage of the exemption under paragraph 1.12(b) from preparing a statement of cash flows, on the basis that it is a qualifying entity and its ultimate parent company, K&L Freight Holdings Limited, includes the company's cash flows in its consolidated financial statements.

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.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Turnover

Turnover represents net invoiced sales of services, excluding value added tax.

Revenue is recognised as the company becomes entitled to consideration for the services supplied.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Office equipment

-

25% on reducing balance

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid 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.

Investments

Investments in company shares are stated at cost. Provisions for impairment are recognised in profit or loss for the period.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.1.25

31.1.24

£

£

United Kingdom

11,446,285

9,863,092

Rest of the World

2,755,207

2,013,969

14,201,492

11,877,061

4.	OTHER OPERATING INCOME

31.1.25

31.1.24

£

£

Rents received

33,670

31,080

Sundry receipts

500

-

34,170

31,080

5.	EMPLOYEES AND DIRECTORS

31.1.25

31.1.24

£

£

Wages and salaries

649,446

510,390

Social security costs

52,736

40,064

Other pension costs

45,174

67,781

747,356

618,235

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

31.1.25

31.1.24

Management

2

2

Administration

16

15

18

17

31.1.25

31.1.24

£

£

Directors' remuneration

71,066

30,487

Directors' pension contributions to money purchase schemes

20,000

16,667

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:

31.1.25

31.1.24

£

£

Other operating leases

89,781

69,580

Depreciation - owned assets

10,748

7,201

Auditors' remuneration

14,625

13,813

Foreign exchange differences

802

1,518

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.1.25

31.1.24

£

£

Bank loan interest

3,978

16,537

Other interest

3,836

2,361

7,814

18,898

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.1.25

31.1.24

£

£

Current tax:

UK corporation tax

459,428

514,728

Deferred tax

2,520

-

Tax on profit

461,948

514,728

Reconciliation of total tax 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:

31.1.25

31.1.24

£

£

Profit before tax

1,853,044

2,148,511

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 24.030%)

463,261

516,287

Effects of:

Expenses not deductible for tax purposes

1,632

1,334

Capital allowances in excess of depreciation

(3,219

)

(1,083

)

Group loss relief

(2,246

)

(1,810

)

Deferred tax movement

2,520

-

Total tax charge

461,948

514,728

9.

DIVIDENDS

31.1.25

31.1.24

£

£

C ordinary shares of 1p each

Interim

1,390,000

1,550,000

10.	TANGIBLE FIXED ASSETS

Office

equipment

£

COST

At 1 February 2024

131,215

Additions

21,389

At 31 January 2025

152,604

DEPRECIATION

At 1 February 2024

109,610

Charge for year

10,748

At 31 January 2025

120,358

NET BOOK VALUE

At 31 January 2025

32,246

At 31 January 2024

21,605

11.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1 February 2024

and 31 January 2025

1,708

NET BOOK VALUE

At 31 January 2025

1,708

At 31 January 2024

1,708

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.25

31.1.24

£

£

Trade debtors

1,096,587

1,298,238

Other debtors

8,335

1,000

Related Party Loans

1,676,110

1,556,110

Directors' current accounts

279,788

73,684

VAT

25,728

31,450

Prepayments and accrued income

25,200

87,691

3,111,748

3,048,173

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.25

31.1.24

£

£

Bank loans and overdrafts (see note 15)

120,000

120,000

Trade creditors

992,366

1,057,151

Amounts owed to group undertakings

2,412,140

1,630,200

Tax

334,928

290,728

Social security and other taxes

11,083

11,887

Other creditors

8,343

11,387

Directors' current accounts

151,505

522

Accruals and deferred income

369,940

349,979

4,400,305

3,471,854

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.1.25

31.1.24

£

£

Bank loans (see note 15)

30,000

150,000

15.

LOANS

An analysis of the maturity of loans is given below:

31.1.25

31.1.24

£

£

Amounts falling due within one year or on demand:

Bank loans

120,000

120,000

Amounts falling due between one and two years:

Bank loans - 1-2 years

30,000

120,000

Amounts falling due between two and five years:

Bank loans - 2-5 years

-

30,000

The interest rate charge on the bank loan is 1.75% above base rate. There is a charge over the assets of the company.

16.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.1.25

31.1.24

£

£

Within one year

14,485

22,789

Between one and five years

4,563

6,591

19,048

29,380