Company Registration No. 01087339 (England and Wales)
LOCKWOOD HAULAGE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
LOCKWOOD HAULAGE LIMITED
COMPANY INFORMATION
Directors
Ms D L King
Mr R Lockwood
Mr W L W Evans
Mr S Gilbert
Company number
01087339
Registered office
Ripley Road
Sawmills
Ambergate
Derbyshire
DE56 2JR
Auditor
DJH Accountants Limited
Porthill Lodge
High Street
Wolstanton
Newcastle under Lyme
Staffordshire
ST5 0EZ
LOCKWOOD HAULAGE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
LOCKWOOD HAULAGE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2018
- 1 -
The directors present the strategic report for the year ended 31 January 2018.
Review of the business
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, net profit margin and return on capital employed.
The directors are pleased to report another strong increase in turnover in the year. The main reason for the growth is the increase in the fleet in the year
,
where £1.7m has been invested. Although margins continue to be squeezed, overall operating profit has increased to £965,123 (2017 -
£727,821). This trend is expected to continue in the next year.
Risks and uncertainties
As for many businesses of our size, the business environment in which we operate continues to be challenging. The market for our services is highly competitive and margins continue to be tight. Despite this the directors anticipate continued growth in the core business activities in the future.
The directors are aware of the current economic climate and of the inherent risks of this. They feel that due to the Company’s strong place in the market, the company will adapt strongly to the market conditions aided by strong company reserves.
With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside of our control.
Mr R Lockwood
Director
9 October 2018
Date
LOCKWOOD HAULAGE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2018
- 2 -
The directors present their annual report and financial statements for the year ended 31 January 2018.
Principal activities
The principal activity of the company continued to be that of haulage and warehouse services.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ms D L King
Mr R Lockwood
Mr W L W Evans
Mr S Gilbert
Mr S Walker
(Resigned 8 June 2017)
Results and dividends
The results for the year are set out on page 6.
No Ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Auditor
DJH Accountants Limited
were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible 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 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.
LOCKWOOD HAULAGE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr R Lockwood
Director
9 October 2018
Date
LOCKWOOD HAULAGE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOCKWOOD HAULAGE LIMITED
- 4 -
Opinion
We have audited the financial statements of Lockwood Haulage Limited (the 'company') for the year ended 31 January 2018 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the 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 FRS 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 2018 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.
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's
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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LOCKWOOD HAULAGE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOCKWOOD HAULAGE LIMITED
- 5 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 directors'
r
esponsibilities
s
tatement, 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 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.
Auditor's 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: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s 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.
Porthill Lodge
High Street
Paul David Hulme FCCA
Wolstanton
(Senior Statutory Auditor)
Newcastle under Lyme
for and on behalf of
Staffordshire
DJH ACCOUNTANTS LIMITED
ST5 0EZ
Chartered Certified Accountants
18 October 2018
Statutory Auditor
LOCKWOOD HAULAGE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2018
- 6 -
2018
2017
Notes
£
£
Turnover
3
17,457,737
14,586,895
Cost of sales
(12,816,211)
(10,369,241)
Gross profit
4,641,526
4,217,654
Administrative expenses
(3,721,383)
(3,534,813)
Other operating income
44,980
44,980
Operating profit
4
965,123
727,821
Interest receivable and similar income
6
-
596
Interest payable and similar expenses
7
(93,569)
(82,362)
Profit before taxation
871,554
646,055
Tax on profit
8
(142,905)
(147,825)
Profit for the financial year
728,649
498,230
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
LOCKWOOD HAULAGE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2018
- 7 -
2018
2017
£
£
Profit for the year
728,649
498,230
Other comprehensive income
-
-
Total comprehensive income for the year
728,649
498,230
LOCKWOOD HAULAGE LIMITED
BALANCE SHEET
AS AT 31 JANUARY 2018
31 January 2018
- 8 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
9
5,640,479
5,302,630
Current assets
Stocks
10
98,779
84,090
Debtors
11
4,596,410
3,405,874
Cash at bank and in hand
1,232,630
1,182,567
5,927,819
4,672,531
Creditors: amounts falling due within one year
12
(3,897,805)
(3,332,584)
Net current assets
2,030,014
1,339,947
Total assets less current liabilities
7,670,493
6,642,577
Creditors: amounts falling due after more than one year
13
(2,369,309)
(2,000,069)
Provisions for liabilities
15
(137,316)
(207,289)
Net assets
5,163,868
4,435,219
Capital and reserves
Called up share capital
18
1,000
1,000
Profit and loss reserves
5,162,868
4,434,219
Total equity
5,163,868
4,435,219
The financial statements were approved by the board of directors and authorised for issue on 9 October 2018 and are signed on its behalf by:
Ms D L King
Mr R Lockwood
Director
Director
Company Registration No. 01087339
LOCKWOOD HAULAGE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2018
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 February 2016
1,000
3,935,989
3,936,989
Year ended 31 January 2017:
Profit and total comprehensive income for the year
-
498,230
498,230
Balance at 31 January 2017
1,000
4,434,219
4,435,219
Year ended 31 January 2018:
Profit and total comprehensive income for the year
-
728,649
728,649
Balance at 31 January 2018
1,000
5,162,868
5,163,868
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
- 10 -
1
Accounting policies
Company information
Lockwood Haulage Limited is a
private
company
limited by shares,
incorporated in England and Wales.
The registered office is
Ripley Road, Sawmills, Ambergate, Derbyshire, DE56 2JR.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group
.
Lockwood Haulage Limited is a wholly owned subsidiary of
The Lockwood Group Limited
and the results of Lockwood Haulage Limited are included in the consolidated financial statements of
The Lockwood Group Limited
which are available from
Companies House
.
1.2
Going concern
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
1
Accounting policies
(Continued)
- 11 -
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% straight line of cost
Plant and equipment
20% straight line of cost
Fixtures and fittings
20% and 33% straight line of cost
Motor vehicles
20% straight line of cost
Lorries and trailers
25% and 20% straight line of cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
1
Accounting policies
(Continued)
- 12 -
1.7
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method 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.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
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 is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
1
Accounting policies
(Continued)
- 13 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from
fellow group companies, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
1
Accounting policies
(Continued)
- 14 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
- 15 -
2
Judgements and key sources of estimation uncertainty
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.
3
Turnover and other revenue
2018
2017
£
£
Turnover analysed by class of business
Haulage
13,163,706
10,626,950
Warehousing
4,294,031
3,959,945
17,457,737
14,586,895
2018
2017
£
£
Other significant revenue
Interest income
-
596
4
Operating profit
2018
2017
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,950
5,000
Depreciation of owned tangible fixed assets
499,198
433,539
Depreciation of tangible fixed assets held under finance leases
988,170
762,816
Loss/(profit) on disposal of tangible fixed assets
6,693
(1,000)
Operating lease charges
1,436,226
1,466,529
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2018
2017
Number
Number
Haulage and warehouse
144
127
Administration and management
20
19
164
146
Their aggregate remuneration comprised:
2018
2017
£
£
Wages and salaries
4,819,723
3,664,262
Employment costs
476,560
345,371
Pension costs
37,943
28,697
5,334,226
4,038,330
6
Interest receivable and similar income
2018
2017
£
£
Interest income
Other interest income
-
596
7
Interest payable and similar expenses
2018
2017
£
£
Interest on finance leases and hire purchase contracts
93,569
82,362
8
Taxation
2018
2017
£
£
Current tax
UK corporation tax on profits for the current period
212,878
130,372
Deferred tax
Origination and reversal of timing differences
(69,973)
17,453
Total tax charge
142,905
147,825
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
8
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2018
2017
£
£
Profit before taxation
871,554
646,055
Expected tax charge based on the standard rate of corporation tax in the UK of 19.16% (2017: 20.00%)
167,004
129,211
Tax effect of expenses that are not deductible in determining taxable profit
2,806
2,739
Group relief
(12,977)
-
Capital allowances
(228,959)
(240,849)
Depreciation
285,004
239,271
Deferred tax movement
(69,973)
17,453
Taxation charge for the year
142,905
147,825
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
- 18 -
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Lorries and trailers
Total
£
£
£
£
£
£
Cost
At 1 February 2017
450,912
2,054,431
230,414
279,972
8,139,801
11,155,530
Additions
25,000
27,853
30,407
78,092
1,702,758
1,864,110
Disposals
-
(64,099)
-
(47,262)
(114,620)
(225,981)
At 31 January 2018
475,912
2,018,185
260,821
310,802
9,727,939
12,793,659
Depreciation and impairment
At 1 February 2017
365,576
1,275,502
168,368
56,194
3,987,260
5,852,900
Depreciation charged in the year
82,787
191,564
29,128
49,880
1,134,009
1,487,368
Eliminated in respect of disposals
-
(64,099)
-
(19,474)
(103,515)
(187,088)
At 31 January 2018
448,363
1,402,967
197,496
86,600
5,017,754
7,153,180
Carrying amount
At 31 January 2018
27,549
615,218
63,325
224,202
4,710,185
5,640,479
At 31 January 2017
85,336
778,929
62,046
223,778
4,152,541
5,302,630
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
9
Tangible fixed assets
(Continued)
- 19 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2018
2017
£
£
Plant and equipment
287,665
389,716
Motor vehicles
198,490
172,118
Lorries and trailers
3,887,452
3,269,477
4,373,607
3,831,311
Depreciation charge for the year in respect of leased assets
988,170
762,816
10
Stocks
2018
2017
£
£
Stocks
98,779
84,090
11
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
3,598,495
2,095,248
Amounts owed by group undertakings
527,700
690,117
Other debtors
-
2,874
Prepayments and accrued income
470,215
617,635
4,596,410
3,405,874
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
- 20 -
12
Creditors: amounts falling due within one year
2018
2017
Notes
£
£
Obligations under finance leases
14
1,202,298
1,070,195
Trade creditors
1,119,602
951,295
Amounts due to group undertakings
163,277
206,868
Corporation tax
182,877
80,372
Other taxation and social security
352,778
334,722
Other creditors
305,598
299,699
Accruals and deferred income
571,375
389,433
3,897,805
3,332,584
Amounts due under finance leases are secured against the assets which they relate to.
13
Creditors: amounts falling due after more than one year
2018
2017
Notes
£
£
Obligations under finance leases
14
2,369,309
2,000,069
Amounts due under finance leases are secured against the assets which they relate to.
14
Finance lease obligations
2018
2017
Future minimum lease payments due under finance leases:
£
£
Within one year
1,202,298
1,070,195
In two to five years
2,369,309
2,000,069
3,571,607
3,070,264
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period. No restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
15
Provisions for liabilities
2018
2017
Notes
£
£
Deferred tax liabilities
16
137,316
207,289
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
- 21 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2018
2017
Balances:
£
£
Accelerated capital allowances
137,316
207,289
2018
Movements in the year:
£
Liability at 1 February 2017
207,289
Credit to profit or loss
(69,973)
Liability at 31 January 2018
137,316
17
Retirement benefit schemes
2018
2017
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
37,943
28,697
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary shares of £1 each
1,000
1,000
1,000
1,000
19
Financial commitments, guarantees and contingent liabilities
An unlimited multilateral guarantee was given to National Westminster Bank
P
lc by the company and it's fellow group companies, dated 21 October 2014 against the company and group's combined bank facilities.
LOCKWOOD HAULAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
- 22 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2018
2017
£
£
Within one year
771,336
528,010
Between two and five years
3,094,715
2,746,723
3,866,051
3,274,733
21
Related party transactions
Transactions with related parties
The company is a wholly owned subsidiary of The Lockwood Group Limited and has taken advantage of the exemption conferred by FRS102 not to disclose transactions with The Lockwood Group Limited or other group companies.
22
Controlling party
The ultimate parent company is The Lockwood Group Limited, incorporated in England and Wales.
The largest and smallest group in which the results of the company are consolidated is that headed by
The Lockwood Group
Limited, incorporated in England and Wales. The consolidated accounts of this company are available to the public and may be obtained from Companies House. No other group accounts include the results of the company.
2018-01-31
2017-02-01
false
CCH Software
CCH Accounts Production 2018.200
Ms D L King
Mr R Lockwood
Mr W L W Evans
Mr S Gilbert
Mr S Walker
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