Registration number:
Sparks Warehousing Limited
(formerly
for the Period from 1 February 2024 to 31 July 2025
Sparks Warehousing Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Sparks Warehousing Limited
Company Information
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Directors |
J D Sparks T C Sparks R Mills |
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Registered office |
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Auditors |
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Sparks Warehousing Limited
Strategic Report for the period from 1 February 2024 to 31 July 2025
The Directors present their strategic report for the period from 1 February 2024 to 31 July 2025.
Principal activity
The principal activity of the Group is that of haulage and transport contracting, and warehousing.
Fair review of the business
The financial year end of the Group has been extended to reflect an 18 month period for the current figures, which means they are not entirely comparable to the prior year. This has been done due to the change in ultimate ownership as described in the notes to the accounts.
The Group has experienced a very tough financial period in difficult economic conditions for all businesses within the haulage sector. Sales figures have increased however not as much as might be expected for the longer period and stand at £21.5m for the 18 months. Rising costs seen nationwide in fuel prices, wage costs and associated costs of employment have put intense pressure on gross margins which are now at 10.3%. The directors have however been able to stabilise overheads in order to reduce the impact of this reduction in margin and have made tough decisions in order to reduce overall headcount to streamline business operations.
Post year end the directors sought and obtained investment from the European Vehicle Sales Group who are now the ultimate Parent Company and the directors are excited about the possibilities this creates. The business is now better placed to take advantages of Group arrangements for overhead costs and to utilise the new found strength and resources at its disposal to return to profitability in the short to medium term. Whilst the losses seen in the year will take at least 12 months to turnaround the directors are positive for the future of the business and are reviewing all aspects of the financials to maximise profitability moving forwards.
The Company's key financial and other performance indicators during the period were as follows:
|
Financial KPIs |
Unit |
2025 |
2024 |
|
Turnover |
£ |
21,498,483 |
17,991,204 |
|
Gross profit |
£ |
2,210,736 |
2,872,672 |
|
Gross margin |
% |
10.28 |
15.97 |
|
EBITDA |
£ |
414,789 |
1,141,435 |
Principal risks and uncertainties
The Group continues to derive its turnover from a small number of customers and is therefore exposed to unexpected contract costs.
Fluctuations in fuel price directly impact the Group's financial performance as it is one of the significant direct costs of the haulage industry. To manage this risk, the Group strives to ensure that all journeys made are chargeable and that the fuel price increase is passed onto customers. The Group's financial performance is also affected by the economic environment. The Group is reducing costs to manage this risk to deliver a competitively priced, quality service.
Approved and authorised by the
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Sparks Warehousing Limited
Directors' Report for the Period from 1 February 2024 to 31 July 2025
The Directors present their report and the for the period from 1 February 2024 to 31 July 2025.
Change of Company name
The Company changed its name from
Directors of the Group
The Directors who held office during the period were as follows:
The following director was appointed after the period end:
Financial instruments
Objectives and policies
The Group uses basic financial instruments comprising cash, an invoice discounting facility and hire purchase agreements, together with trade debtors and creditors that arise from its operations, all of which are in sterling. The main purpose of these financial instruments is to raise finance for the Group's operations.
Price risk, credit risk, liquidity risk and cash flow risk
The Group's principal financial instruments comprise of bank balances, cash and trade debtors which represent the maximum exposure to credit risk in relation to financial assets.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to business customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for bad debts. The Group has also implemented policies that require appropriate credit checks on potential customers before sales are made to reduce both credit and cash flow risk. Credit customers are subject to limits which are determined by the directors.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. The Group also maintains an invoice financing facility and an overdraft facility, when required, in order to maintain the sufficient funds needed for ongoing operations and planned future developments.
Fuel prices are the main exposure to price risk, however the company manages this exposure by ensuring the supplier used is the best value supplier at the time, and where possible, charges fuel price increases to the customer.
Disclosure of information to the auditor
Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
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Sparks Warehousing Limited
Statement of Directors' Responsibilities
The Directors acknowledge their responsibilities for preparing the Annual Report 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). 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 Group and the Company and of the profit or loss of the Group for that period. In preparing these financial statements, the Directors are required to:
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• |
select suitable accounting policies and apply them consistently; |
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• |
make judgements and accounting estimates that are reasonable and prudent; |
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• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
Sparks Warehousing Limited
Independent Auditor's Report to the Members of Sparks Warehousing Limited
Opinion
We have audited the financial statements of Sparks Warehousing Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period from 1 February 2024 to 31 July 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, 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 and the parent Company's affairs as at 31 July 2025 and of the Group's loss for the period 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 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 Group or the Parent Company'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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Sparks Warehousing Limited
Independent Auditor's Report to the Members of Sparks Warehousing Limited
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' 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 Directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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 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 Directors are responsible for assessing the Group or the Parent 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 Group or the Parent 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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• |
Discussions with management, including consideration of known or suspected instances of non-compliance held. |
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• |
Challenging assumptions and judgements made within significant accounting estimates such as fixed asset valuation. |
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• |
Enquiries of management and the company's solicitors of potential litigation claims. |
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• |
Identification of key laws and regulations central to the Company's operation and review of compliance with such laws. |
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• |
Testing of journal entries and potential areas for management override of systems. |
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Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission and misrepresentation. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Sparks Warehousing Limited
Independent Auditor's Report to the Members of Sparks Warehousing 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.
......................................
For and on behalf of
Grimsby
North East Lincolnshire
DN31 1LW
Sparks Warehousing Limited
Consolidated Profit and Loss Account for the Period from 1 February 2024 to 31 July 2025
|
Note |
31 July |
31 January |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Operating (loss)/profit |
( |
|
|
|
Other interest receivable and similar income |
- |
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(535,914) |
(325,380) |
||
|
Loss before tax |
( |
( |
|
|
Tax on loss |
( |
( |
|
|
Loss for the financial period |
( |
( |
|
|
Profit/(loss) attributable to: |
|||
|
Owners of the Company |
( |
( |
Sparks Warehousing Limited
Consolidated Statement of Comprehensive Income for the Period from 1 February 2024 to 31 July 2025
|
31 July |
31 January |
|
|
Loss for the period |
( |
( |
|
Surplus on property, plant and equipment revaluation |
|
- |
|
Total comprehensive income for the period |
( |
( |
|
Total comprehensive income attributable to: |
||
|
Owners of the Company |
( |
( |
Sparks Warehousing Limited
(Registration number: 07783481)
Consolidated Balance Sheet as at 31 July 2025
|
Note |
31 July |
31 January |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
91,000 |
91,000 |
|
|
Revaluation reserve |
2,773,179 |
2,744,360 |
|
|
Retained earnings |
(274,751) |
1,783,277 |
|
|
Shareholders' funds |
2,589,428 |
4,618,637 |
Approved and authorised by the
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Sparks Warehousing Limited
(Registration number: 07783481)
Balance Sheet as at 31 July 2025
|
Note |
31 July |
31 January |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Debtors |
|
|
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
|
|
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
91,000 |
91,000 |
|
|
Revaluation reserve |
2,741,847 |
2,713,028 |
|
|
Retained earnings |
1,139,280 |
907,131 |
|
|
Shareholders' funds |
3,972,127 |
3,711,159 |
The company made a loss after tax for the financial period of £74,344 (2024 - loss of £92,661).
Approved and authorised by the
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Sparks Warehousing Limited
Consolidated Statement of Changes in Equity for the Period from 1 February 2024 to 31 July 2025
Equity attributable to the parent company
|
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
|
At 1 February 2024 |
|
|
|
|
|
Loss for the period |
- |
- |
( |
( |
|
Other comprehensive income |
- |
|
- |
|
|
Total comprehensive income |
- |
|
( |
( |
|
Dividends |
- |
- |
( |
( |
|
Transfers |
- |
(367,369) |
367,369 |
- |
|
At 31 July 2025 |
|
|
( |
|
|
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
|
At 1 February 2023 |
|
|
|
|
|
Loss for the period |
- |
- |
( |
( |
|
Dividends |
- |
- |
( |
( |
|
At 31 January 2024 |
91,000 |
2,744,360 |
1,783,277 |
4,618,637 |
Sparks Warehousing Limited
Statement of Changes in Equity for the Period from 1 February 2024 to 31 July 2025
|
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
|
At 1 February 2024 |
|
|
|
|
|
Loss for the period |
- |
- |
( |
( |
|
Other comprehensive income |
- |
|
- |
|
|
Total comprehensive income |
- |
|
( |
|
|
Dividends |
- |
- |
( |
( |
|
Transfers |
- |
(367,369) |
367,369 |
- |
|
At 31 July 2025 |
|
|
|
|
|
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
|
At 1 February 2023 |
|
|
|
|
|
Loss for the period |
- |
- |
( |
( |
|
Dividends |
- |
- |
( |
( |
|
At 31 January 2024 |
91,000 |
2,713,028 |
907,131 |
3,711,159 |
Sparks Warehousing Limited
Consolidated Statement of Cash Flows for the Period from 1 February 2024 to 31 July 2025
|
Note |
31 July |
31 January |
|
|
Cash flows from operating activities |
|||
|
Loss for the period |
( |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Loss on disposal of tangible assets |
|
|
|
|
Finance income |
- |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease in stocks |
|
|
|
|
Decrease in trade debtors |
|
|
|
|
Increase/(decrease) in trade creditors |
|
( |
|
|
Decrease in provisions |
- |
( |
|
|
Decrease in deferred income, including government grants |
( |
- |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
- |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
( |
|
|
Net cash flows from investing activities |
|
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Repayment of other borrowing |
( |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 February |
( |
( |
|
|
Cash and cash equivalents at 31 July |
(730,132) |
(1,259,679) |
|
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
|
General information |
The company is a private company limited by share capital incorporated in England and the company registration number is 07783481.
The Company was formerly known as C Sparks & Sons Holdings Limited.
The address of its registered office is:
England
These financial statements were authorised for issue by the
|
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 United Kingdom 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 financial statements have been prepared in sterling and are rounded to the nearest pound.
Summary of disclosure exemptions
The Parent Company has taken advantage of the reduced disclosure exemption from preparing a cash flow statement as described in section 1.12 of FRS 102.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 July 2025.
No Profit and Loss Account is presented for the Company as permitted by section 408 of the Companies Act 2006.
The company made a loss after tax for the financial year of £181,625 (2024 - loss of £92,661).
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.
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
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.
Disclosure of long or short period
Going concern
Notwithstanding the negative profit and loss reserves of the Group as at 31 July 2025 the financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons;
The directors have prepared forecasts for a period of 12 months from the date of approval of the financial statements which indicate that the Group will have sufficient funds to meet its liabilities as they fall due. Results for the new year continue to be poor however following the investment of the European Vehicle Sales Group and the expected synergies and improvements working closely with the new ultimate controlling party, medium to long term profitability is expected to return. See the Strategic Report for more details of the subsequent events post the balance sheet date.
The Group also has the financial support of its bankers and wider Group Companies as necessary with the Group having sufficient financial headroom to provide any financial assistance required to support the day to day operations of the Group. This support is critical to the continued operations of the businesses and the directors decision to prepare the financial statements on a going concern basis.
Judgements
The Directors have made a number of judgements in applying the Group's accounting policies and estimates and judgements made are continually evaluated and assessed. Key judgements are made based on historical experience and other factors, including expectations of future events that are believed to be reasonable based upon the information available at the time of the approval of the financial statements. |
Key sources of estimation uncertainty
As with all estimates which require significant judgements the estimates will, by definition, seldom equal the actual results. The main sources of estimation uncertainty are in depreciation rates applied to fixed assets and an estimate for the costs that the Group expect to incur in relation to the restoration of leased premises and trucks and trailers as at the determination of applicable leases. Estimates are continually evaluated and are based on historical experience and other factors, including external economic events or conditions and are believed to be reasonable.
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the Group.
The Group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Group's activities.
Foreign currency transactions and balances
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date.
All translation differences are either charged or credited to the profit and loss account.
Tax
The tax expense for the period comprises 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.
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusions of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probably that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using rates and allowances that apply to the sale of the asset.
Tangible assets
Tangible assets are stated in the statement of financial position 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.
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 |
|
Freehold land and buildings |
Straight line over 50 years |
|
Plant and equipment |
15% reducing balance |
|
Fixtures and fittings |
25% straight line & 20% reducing balance |
|
Motor vehicles |
20-25% reducing balance or over the life of the associated lease |
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
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.
Investments
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.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the Group has an obligation at the reporting date as a result of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
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.
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.
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
|
Turnover |
The analysis of the Group's Turnover for the period from continuing operations is as follows:
|
31 July |
31 January |
|
|
Rendering of services |
|
|
The analysis of the Group's Turnover for the period by class of business is as follows:
|
31 July |
31 January |
|
|
Haulage |
|
|
|
Warehousing |
|
|
|
|
|
The analysis of the Group's Turnover for the period by market is as follows:
|
31 July |
31 January |
|
|
UK |
|
|
|
Europe |
|
|
|
|
|
|
Operating (loss)/profit |
Arrived at after charging/(crediting)
|
31 July |
31 January |
|
|
Depreciation expense |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Loss on disposal of property, plant and equipment |
|
|
|
Other interest receivable and similar income |
|
31 July |
31 January |
|
|
Interest income on bank deposits |
- |
|
|
Interest payable and similar expenses |
|
31 July |
31 January |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
|
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
|
Staff costs |
The aggregate payroll costs (including Directors' remuneration) were as follows:
|
31 July |
31 January |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the Group (including Directors) during the period, analysed by category was as follows:
|
31 July |
31 January |
|
|
Administration and support |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The Directors' remuneration for the period was as follows:
|
31 July |
31 January |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
203,915 |
137,907 |
During the period the number of Directors who were receiving benefits and share incentives was as follows:
|
31 July |
31 January |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
31 July |
31 January |
|
|
Audit of these financial statements |
18,000 |
19,068 |
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
31 July |
31 January |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
31 July |
31 January |
|
|
Loss before tax |
( |
( |
|
Corporation tax at standard rate |
( |
( |
|
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
|
Tax increase from effect of capital allowances and depreciation |
|
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax expense from unrecognised tax loss or credit |
|
|
|
Deferred tax credit from unrecognised temporary difference from a prior period |
- |
( |
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2025 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Revaluation of land and buildings |
- |
|
|
- |
|
|
2024 |
Asset |
Liability |
|
Accelerated capital allowances |
( |
- |
|
Other timing difference |
|
- |
|
Revaluation of land and buildings |
( |
- |
|
Tax losses carried forwards |
|
- |
|
|
- |
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
Company
Deferred tax assets and liabilities
|
2025 |
Asset |
Liability |
|
Revaluation of land and buildings |
- |
|
|
- |
|
|
2024 |
Asset |
Liability |
|
Revaluation of land and buildings |
- |
|
|
- |
|
There are £4,398,476 of unused tax losses (2024 - £Nil) for which no deferred tax asset is recognised in the balance sheet.
The Group has tax losses carried forward of £4,398,476 (2024: £3,517,426) to utilise against future profits
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
|
Tangible assets |
Group
|
Land and buildings |
Short leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||||
|
At 1 February 2024 |
|
|
|
|
|
|
|
Revaluations |
|
- |
- |
- |
- |
|
|
Additions |
- |
- |
|
- |
|
|
|
Disposals |
- |
- |
- |
- |
( |
( |
|
At 31 July 2025 |
|
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 February 2024 |
|
|
|
|
|
|
|
Charge for the period |
|
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
- |
( |
( |
|
At 31 July 2025 |
|
|
|
|
|
|
|
Carrying amount |
||||||
|
At 31 July 2025 |
|
|
|
|
|
|
|
At 31 January 2024 |
|
|
|
|
|
|
Included within the net book value of land and buildings above is £4,230,000 (2024 - £3,800,875) in respect of freehold land and buildings and £75,509 (2024 - £86,710) in respect of short leasehold land and buildings.
Revaluation
The fair value of the Group's freehold land and buildings was revalued on
Restriction on title and pledged as security
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
Company
|
Land and buildings |
Total |
|
|
Cost or valuation |
||
|
At 1 February 2024 |
|
|
|
Revaluations |
|
|
|
At 31 July 2025 |
|
|
|
Depreciation |
||
|
At 1 February 2024 |
|
|
|
Charge for the period |
|
|
|
At 31 July 2025 |
|
|
|
Carrying amount |
||
|
At 31 July 2025 |
|
|
|
At 31 January 2024 |
|
|
Included within the net book value of land and buildings above is £4,230,000 (2024 - £3,800,875) in respect of freehold land and buildings.
Revaluation
The fair value of the Company's freehold land and buildings was revalued on
Restriction on title and pledged as security
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
|
Investments |
Company
|
31 July |
31 January |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 February 2024 |
|
|
Provision |
|
|
At 1 February 2024 & 31 July 2025 |
- |
|
Carrying amount |
|
|
At 31 July 2025 |
|
|
At 31 January 2024 |
|
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 |
||||
|
|
United Kingdom |
|
|
|
|
|
United Kingdom |
|
|
|
|
Stocks |
|
Group |
Company |
|||
|
31 July |
31 January |
31 July |
31 January |
|
|
Other inventories |
|
|
- |
- |
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
|
Debtors |
|
Group |
Company |
||||
|
Note |
31 July |
31 January |
31 July |
31 January |
|
|
Trade debtors |
|
|
- |
- |
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
- |
- |
|
|
Accrued income |
|
|
- |
- |
|
|
Deferred tax assets |
- |
|
- |
- |
|
|
|
|
|
|
||
Trade debtors of £1,394,010 (2024: £2,527,800) are included within an invoice financing facility.
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
31 July |
31 January |
31 July |
31 January |
|
|
Cash on hand |
|
|
- |
- |
|
Cash at bank |
|
|
- |
- |
|
|
|
- |
- |
|
|
Bank overdrafts |
( |
( |
- |
- |
|
Cash and cash equivalents in statement of cash flows |
(730,132) |
(1,259,679) |
- |
- |
|
Creditors |
|
Group |
Company |
||||
|
Note |
31 July |
31 January |
31 July |
31 January |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to related parties |
- |
- |
|
|
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Other payables |
|
|
- |
- |
|
|
Accruals |
|
|
- |
- |
|
|
Deferred income |
|
|
- |
- |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
|
Loans and borrowings |
Non-current loans and borrowings
|
Group |
Company |
|||
|
31 July |
31 January |
31 July |
31 January |
|
|
Bank borrowings |
|
|
- |
- |
|
Finance lease liabilities |
|
|
- |
- |
|
|
|
- |
- |
|
Current loans and borrowings
|
Group |
Company |
|||
|
31 July |
31 January |
31 July |
31 January |
|
|
Bank borrowings |
|
|
- |
- |
|
Bank overdrafts |
|
|
- |
- |
|
Finance lease liabilities |
|
|
- |
- |
|
Other borrowings |
|
|
- |
- |
|
|
|
- |
- |
|
Group
Secured creditors
|
Finance lease liabilities are secured on the assets to which they relate.
|
|
Provisions for liabilities |
Group
|
Deferred tax |
Other provisions |
Total |
|
|
At 1 February 2024 |
- |
|
|
|
Increase (decrease) in existing provisions |
|
- |
|
|
At 31 July 2025 |
|
|
|
|
|
|||
Other provisions includes amounts provided for the cost of returning both leased vehicle and property assets to their original state at the end of their lease term. These amounts are contractual however the exact amounts due and the timing of such payments are uncertain and depends on a number of external factors and future trading decisions to be made by the directors.
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
Company
|
Deferred tax |
Total |
|
|
At 1 February 2024 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 31 July 2025 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The Group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the Group to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
31 July |
31 January |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
68,400 |
|
68,400 |
|
|
|
21,600 |
|
21,600 |
|
|
|
1,000 |
|
1,000 |
|
|
|
|
|
|
Rights, preferences and restrictions
|
Ordinary A & B shares have the following rights, preferences and restrictions: |
|
Ordinary C shares have the following rights, preferences and restrictions: |
|
Reserves |
Group
Called up share capital
Share capital comprises the value of issues share capital at par.
Revaluation reserve
The revaluation reserve comprises previous revaluation of land and buildings net of deferred tax provisions on such revaluations.
Retained earnings
The profit and loss account consists of profits made by the company attributable to the shareholders.
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
The changes to each component of equity resulting from items of other comprehensive income for the current period were as follows:
|
Revaluation reserve |
Total |
|
|
Surplus/deficit on property, plant and equipment revaluation |
|
|
|
|
||
Company
Called up share capital
Share capital comprises the value of issues share capital at par.
Revaluation reserve
The revaluation reserve comprises previous revaluation of land and buildings net of deferred tax provisions on such revaluations.
Retained earnings
The profit and loss account consists of profits made by the company attributable to the shareholders.
The changes to each component of equity resulting from items of other comprehensive income for the current period were as follows:
|
Revaluation reserve |
Total |
|
|
Surplus/deficit on property, plant and equipment revaluation |
|
|
|
|
||
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
31 July |
31 January |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
|
Analysis of changes in net debt |
Group
|
At 1 February 2024 |
Financing cash flows |
New finance leases |
At 31 July 2025 |
|
|
Cash and cash equivalents |
||||
|
Cash |
182,982 |
5,831 |
- |
188,813 |
|
Overdrafts |
(1,442,661) |
523,716 |
- |
(918,945) |
|
(1,259,679) |
529,547 |
- |
(730,132) |
|
|
Borrowings |
||||
|
Long term borrowings |
(479,167) |
318,750 |
- |
(160,417) |
|
Short term borrowings |
(145,833) |
(129,167) |
- |
(275,000) |
|
Lease liabilities |
(2,269,883) |
413,315 |
207,936 |
(1,648,632) |
|
(2,894,883) |
602,898 |
207,936 |
(2,084,049) |
|
|
|
||||
|
( |
|
|
( |
|
|
Related party transactions |
Group
Key management compensation
|
31 July |
31 January |
|
|
Salaries and other short term employee benefits |
|
|
|
Post-employment benefits |
|
|
|
|
|
|
Other transactions with Directors |
A director has provided a personal guarantee for the invoice financing facility and the Coronavirus Business Support loan included within loans and borrowings.
Income and receivables from related parties
|
2025 |
Key management |
|
Amounts receivable from related party |
|
|
|
|
|
2024 |
Key management |
|
Amounts receivable from related party |
|
|
|
|
Expenditure with and payables to related parties
|
2025 |
Key management |
|
Amounts payable to related party |
|
|
|
|
Sparks Warehousing Limited
Notes to the Financial Statements for the Period from 1 February 2024 to 31 July 2025
|
2024 |
Key management |
|
Amounts payable to related party |
|
|
|
|
|
Non adjusting events after the financial period |
|
|