Company Registration No. 01612058 (England and Wales)
ACUMEN DISTRIBUTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
ACUMEN DISTRIBUTION LIMITED
COMPANY INFORMATION
Directors
J Hodges
C Doughty
S Brown
N Ashraf
J Doughty
(Appointed 22 August 2019)
R Waring
(Appointed 11 August 2020)
Secretary
The Oxford Secretariat Limited
Company number
01612058
Registered office
Winter Hill House
Marlow Reach
Station Approach
Marlow
Buckinghamshire
SL7 1NT
Auditor
Mercer & Hole
Batchworth House
Batchworth Place
Church Street
Rickmansworth
Hertfordshire
WD3 1JE
Business address
Acumen House
Park Circle
Tithe Barn Way
Swan Valley
Northampton
NN4 9BH
ACUMEN DISTRIBUTION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
ACUMEN DISTRIBUTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the
ir
strategic report and financial statements for the year ended 31 December 2019.
Fair review of the business
The profit and loss on page 7 shows turnover of £12,200,942 (2018 - £13,655,468), which resulted in a profit before taxation of £251,628 (2018 -
£
210,413).
The balance sheet shows that the company's net assets at the year end have
increased
from
£4,371,088 to
£
4,471,683.
The various Brexit deadlines which came and went during the year, for which 11th hour extensions were agreed, had a fundamental effect on the company's result in 2019. In each case where this happened, multiple of the company's automotive customers planned extra shutdown weeks immediately following each deadline, in the case of disruption to their supply chains. As each deadline was extended late in the day, all of these shutdowns proceeded anyway. Without these extra shutdowns the directors are satisfied the company's profits would have been considerably higher.
Principal risks and uncertainties
Management continually monitor the key risks facing the company, together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually.
COVID-19 - The company continues to operate in an environment of uncertainty associated with the current situation which has dominated the world social and economic climate. The directors have assessed the impact of COVID-19 on their ability to continue trading for the foreseeable future. They have concluded the company has sufficient on-going trading activities and resources available to continue trading for the foreseeable future.
Other principal risks and uncertainties facing the company are as follows:
Legislative
The company has systems and procedures in place to ensure compliance with, and to manage, the impact of changes in Government legislation such as the Working Time Directive, TUPE, fuel duty, vehicle operating procedures, environmental and vehicle emission requirements.
Financial and Liquidity
The company's forecasts and projections show that the company should be able to operate within its current facilities for a period of at least the next 12 months. Management continues to monitor and control working capital and capital expenditure requirements very closely.
Competitor pressure
The market in which the company operates is considered to be extremely competitive, and therefore competitor pressure could result in losing sales to key competitors. The company manages this risk by providing quality services and maintaining strong relationships with its key customers.
Key performance indicators
The directors review internal management accounts on a monthly basis and consider their detailed review of operating margins and compliance as the best indicator of performance and position of the business.
ACUMEN DISTRIBUTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Future Developments
The directors plan to win new business and secure current contracts within its existing transportation market. There are also plans to continue the company’s capital investment programme into the core fleet.
Brexit – Brexit continues to be of concern to the wider UK Automotive Sector to which the company belongs. The directors feel it is likely there will be some disruption to supply chains in the early weeks of 2021, immediately after the UK’s exit from the EU, which could cause short term stoppages of UK car plants. Should this come to pass, there would be a knock-on short-term financial impact on the company, but it is felt this would be unlikely to persist beyond January 2021. The longer-term impact of Brexit, if tariff free trade agreements are not put in place, could be some UK car assembly plants being re-located overseas. This would have a more significant impact on the company’s activities. However, it is expected by the directors this would occur over a 3 to 7-year timescale due to product cycles and in this event, the directors would seek to diversify into other sectors, as a matter of high priority. The directors believe they and the company’s workforce have the transferable skills which would allow this to be realistically achievable.
J Hodges
Director
26 November 2020
ACUMEN DISTRIBUTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J Hodges
C Doughty
S Brown
N Ashraf
J Doughty
(Appointed 22 August 2019)
R Waring
(Appointed 11 August 2020)
Results and dividends
The results for the year are set out on page 7.
The director
s do
not recommend the payment of a final dividend. An interim dividend of £
99,996 (2018 - £99,996)
being £
999.96
per share was paid during the year.
Financial instruments
Financing facility and other instruments
The company's principal financial instrument comprises of the financing facility held by the Group which at the year end amounted to £
5
,
4
00,000 and is the main source of funds for financing the group and company's operations.
The company also use
s
hire purchase agreements as a way of financing the purchase of fixed assets which play a key role in the operation of the business.
Auditor
The auditor, Mercer & Hole, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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
J Hodges
Director
26 November 2020
ACUMEN DISTRIBUTION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
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;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
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.
ACUMEN DISTRIBUTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ACUMEN DISTRIBUTION LIMITED
- 5 -
Opinion
We have audited the financial statements of Acumen Distribution Limited (the 'company') for the year ended 31 December 2019 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 December 2019 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.
ACUMEN DISTRIBUTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ACUMEN DISTRIBUTION LIMITED
- 6 -
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 member 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 member 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 member for our audit work, for this report, or for the opinions we have formed.
Alexander Bell FCA (Senior Statutory Auditor)
for and on behalf of Mercer & Hole
26 November 2020
Chartered Accountants
Statutory Auditor
Batchworth House
Batchworth Place
Church Street
Rickmansworth
Hertfordshire
WD3 1JE
ACUMEN DISTRIBUTION LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
2019
2018
Notes
£
£
Turnover
3
12,200,942
13,655,468
Cost of sales
(10,416,143)
(11,818,455)
Gross profit
1,784,799
1,837,013
Administrative expenses
(1,395,726)
(1,417,478)
Other operating income
332
-
Operating profit
4
389,405
419,535
Interest receivable and similar income
6
261
154
Interest payable and similar expenses
7
(137,995)
(209,356)
Amounts written off investments
8
(43)
80
Profit before taxation
251,628
210,413
Tax on profit
9
(51,037)
23,837
Profit for the financial year
200,591
234,250
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ACUMEN DISTRIBUTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
2019
2018
£
£
Profit for the year
200,591
234,250
Other comprehensive income
-
-
Total comprehensive income for the year
200,591
234,250
ACUMEN DISTRIBUTION LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 2019
- 9 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,467,157
3,452,716
Investments
12
20,029
20,072
2,487,186
3,472,788
Current assets
Debtors
14
5,920,065
6,389,814
Cash at bank and in hand
212,767
325,995
6,132,832
6,715,809
Creditors: amounts falling due within one year
15
(3,427,505)
(5,056,848)
Net current assets
2,705,327
1,658,961
Total assets less current liabilities
5,192,513
5,131,749
Creditors: amounts falling due after more than one year
16
(656,328)
(760,661)
Provisions for liabilities
18
(64,502)
-
Net assets
4,471,683
4,371,088
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
4,471,583
4,370,988
Total equity
4,471,683
4,371,088
The financial statements were approved by the board of directors and authorised for issue on 26 November 2020 and are signed on its behalf by:
J Hodges
Director
Company Registration No. 01612058
ACUMEN DISTRIBUTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2018
100
4,236,734
4,236,834
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
234,250
234,250
Dividends
10
-
(99,996)
(99,996)
Balance at 31 December 2018
100
4,370,988
4,371,088
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
200,591
200,591
Dividends
10
-
(99,996)
(99,996)
Balance at 31 December 2019
100
4,471,583
4,471,683
ACUMEN DISTRIBUTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 11 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
925,754
2,079,689
Interest paid
(137,995)
(209,356)
Income taxes paid
(43,784)
(272,532)
Net cash inflow from operating activities
743,975
1,597,801
Investing activities
Purchase of tangible fixed assets
(12,706)
(218,527)
Proceeds on disposal of tangible fixed assets
962,809
217,242
Interest received
261
154
Net cash generated from/(used in) investing activities
950,364
(1,131)
Financing activities
Payment of finance leases obligations
(1,707,571)
(1,335,854)
Dividends paid
(99,996)
(99,996)
Net cash used in financing activities
(1,807,567)
(1,435,850)
Net (decrease)/increase in cash and cash equivalents
(113,228)
160,820
Cash and cash equivalents at beginning of year
325,995
165,175
Cash and cash equivalents at end of year
212,767
325,995
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 12 -
1
Accounting policies
Company information
Acumen Distribution Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Winter Hill House, Marlow Reach, Station Approach, Marlow, Buckinghamshire, SL7 1NT.
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.
1.2
Going concern
These financial statements are prepared on the going concern basis. In recent months, COVID-19 has been dominating the world social and economic climate. The company continues to operate in an environment of uncertainty associated with the current situation. The directors have concluded that with ongoing prudent management, together with the governmental and banking support offered to companies, it is highly unlikely it would not be able to continue as a going concern in the foreseeable future. The directors are continuously monitoring the situation and recognise that uncertainties exist that may impact significantly on future performance and could challenge the applicability of the going concern basis in extreme circumstances.
true
1.3
Turnover
Turnover represents invoiced sales of logistical services, excluding value added tax.
Sales are recognised in the accounting period in which the service is rendered, by reference to completion of the specific transaction.
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.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the period of the lease
Plant and machinery
2 - 10 years on cost
Equipment, fixtures & fittings
2 - 5 years on 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
.
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 13 -
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.
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.
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.
1.6
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.
1.7
Financial instruments
The company a
p
pl
ies
the provisions of Section 11 ‘Basic Financial Instruments’
.
Financial instruments are recognised in the company's statement of financial position 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.
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 14 -
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.
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,
finance leases 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 receipts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 15 -
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.
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
able
profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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 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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 profit or loss 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
profit or loss
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
s
asset are consumed.
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 16 -
1.13
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
1.14
The COVID-19 pandemic has been identified as a relevant event, but it is deemed to be non-adjusting as the condition did not exist at the balance sheet date. The directors have considered the effect of the COVID-19 pandemic on the company's activities. This event has caused severe disruption to the company's operational activities, but at the date of the approval of these financial statements, the directors consider the ‘first wave’ has been successfully navigated. Managing the combined effects of COVID-19 and Brexit through the winter of 2020/21 is the directors’ top priority.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the directors have
considered both external and internal sources of information such as market conditions,
counterparty credit
ratings and experience of recoverability. There have been no material indicators of impairments identified
during the current financial year other than in respect of bad and doubtful trade debtor balances recognised
in the financial statements.
Deferred taxation
Deferred tax assets are recognised for all timing differences to the extent that it is probable they will be recoverable against the reversal of a deferred tax asset at the rate of taxation expected at that date. At the reporting end date there were no indications the deferred tax asset were not recoverable.
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Estimating value in use
Where an indication of impairment exists the directors will carry our an impairment review to determine the recoverable amount, which is the higher of fair value less cost to sell and value in use. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the asset or the cash generating unit and a suitable discount rate in order to calculate present value.
Recoverability of receivables
The company establishes a provision for receivables that are estimated not to be recoverable. When
assessing recoverability the directors consider factors such as the ageing of receivables, past experience
of recoverability, and the credit profile of individual or groups of customers.
Determining residual values and useful economic life of tangible fixed assets (property, plant and equipment)
The company depreciates tangible assets over their estimated useful lives. The estimation of the useful
lives of assets is based on historic performance as well as expectations about future use and therefore
requires estimates and assumptions to be applied by management. The actual lives of these assets can
vary depending on a variety of factors, including technological innovation, product life cycles and
maintenance programs.
Judgment is applied by management when determining the residual values for tangible fixed assets. When
determining the residual value management aim to assess the amount that the company would currently
obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful
economic life. Where possible this is done with reference to external market prices.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Transportation services
11,729,809
13,329,078
Warehousing services
471,133
326,390
12,200,942
13,655,468
2019
2018
£
£
Other significant revenue
Interest income
261
154
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
3
Turnover and other revenue
(Continued)
- 18 -
2019
2018
£
£
Turnover analysed by geographical market
UK
7,829,050
12,696,267
Europe
4,371,892
959,201
12,200,942
13,655,468
4
Operating profit
2019
2018
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
35,000
34,800
Depreciation of owned tangible fixed assets
422,987
235,798
Depreciation of tangible fixed assets held under finance leases
510,328
1,192,634
Profit on disposal of tangible fixed assets
(48,153)
(11,926)
Operating lease charges
682,940
663,830
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Office and management
27
22
Operational
72
66
99
88
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
3,236,920
2,915,950
Social security costs
322,618
306,200
Pension costs
99,715
72,314
3,659,253
3,294,464
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 19 -
6
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
122
154
Other interest income
139
-
Total income
261
154
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
122
154
7
Interest payable and similar expenses
2019
2018
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
36,634
32,052
Other finance costs:
Interest on finance leases and hire purchase contracts
101,361
176,557
Other interest
-
747
137,995
209,356
8
Amounts written off investments
fixed asset investments
2019
2018
£
£
Other gains and losses
(43)
80
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
(37,390)
66,372
Adjustments in respect of prior periods
(3,327)
-
Total current tax
(40,717)
66,372
Deferred tax
Origination and reversal of timing differences
91,754
(90,209)
Total tax charge/(credit)
51,037
(23,837)
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
9
Taxation
(Continued)
- 20 -
The actual charge/(credit) 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:
2019
2018
£
£
Profit before taxation
251,628
210,413
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
47,809
39,978
Tax effect of expenses that are not deductible in determining taxable profit
3,568
4,701
Effect of change in corporation tax rate
-
7,408
Group relief
-
(80,362)
Depreciation on assets not qualifying for tax allowances
-
4,438
Under/(over) provided in prior years
(3,327)
-
Deferred tax adjustments in respect of prior years
2,987
-
Taxation charge/(credit) for the year
51,037
(23,837)
10
Dividends
2019
2018
£
£
Interim paid
99,996
99,996
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 21 -
11
Tangible fixed assets
Leasehold land and buildings
Plant and machinery
Equipment, fixtures & fittings
Total
£
£
£
£
Cost
At 1 January 2019
235,865
9,574,956
336,979
10,147,800
Additions
-
850,320
12,092
862,412
Disposals
(3,837)
(5,236,947)
(476)
(5,241,260)
At 31 December 2019
232,028
5,188,329
348,595
5,768,952
Depreciation and impairment
At 1 January 2019
227,767
6,185,814
281,503
6,695,084
Depreciation charged in the year
5,115
901,934
26,266
933,315
Eliminated in respect of disposals
(3,837)
(4,322,291)
(476)
(4,326,604)
At 31 December 2019
229,045
2,765,457
307,293
3,301,795
Carrying amount
At 31 December 2019
2,983
2,422,872
41,302
2,467,157
At 31 December 2018
8,098
3,389,142
55,476
3,452,716
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2019
2018
£
£
Plant and machinery
2,009,965
3,162,485
12
Fixed asset investments
2019
2018
£
£
Listed investments
20,029
20,072
Listed
investments
included above:
Listed investments carrying amount
20,029
20,072
The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.
Fixed asset investments revalued
The fair values of financial assets with standard terms and conditions are traded on active liquid markets are determined with reference to quoted market prices.
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
12
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 January 2019
20,072
Valuation changes
(43)
At 31 December 2019
20,029
Carrying amount
At 31 December 2019
20,029
At 31 December 2018
20,072
13
Financial instruments
2019
2018
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
20,029
20,072
14
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
1,995,139
3,049,026
Corporation tax recoverable
287,390
250,000
Amounts owed by group undertakings
230,786
138,304
Other debtors
1,000,000
1,000,300
Prepayments and accrued income
324,181
445,575
3,837,496
4,883,205
2019
2018
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
2,082,569
1,479,357
Deferred tax asset (note 19)
-
27,252
2,082,569
1,506,609
Total debtors
5,920,065
6,389,814
Trade debtors disclosed above are receivable within one year and so are recorded at transaction price.
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 23 -
15
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Obligations under finance leases
17
720,637
1,474,169
Trade creditors
827,685
1,063,881
Amounts owed to group undertakings
212,323
10,546
Corporation tax
-
47,111
Other taxation and social security
130,343
127,594
Other creditors
1,450,542
2,230,927
Accruals and deferred income
85,975
102,620
3,427,505
5,056,848
16
Creditors: amounts falling due after more than one year
2019
2018
Notes
£
£
Obligations under finance leases
17
656,328
760,661
The company has access to group financing facilities with Barclays Bank Plc of up to £5,400,000. At the reporting date the company had drawn down £1,301,101 (2018 - £1,948,707) under the facility. This liability is included in other creditors.
Bank facilities are secured by way of a debenture and an unlimited guarantee from Acumen Automotive Logistics Limited and Acumen Logistics Group Limited.
17
Finance lease obligations
2019
2018
Future minimum lease payments due under finance leases:
£
£
Within one year
908,292
1,474,169
In two to five years
468,673
760,661
1,376,965
2,234,830
It is the company's policy to lease certain equipment under finance leases. The average lease term is 5 years. The average effective borrowing rate for the year was 5.61%. Interest rates are fixed at the contract date. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Provisions for liabilities
2019
2018
Notes
£
£
Deferred tax liabilities
19
64,502
-
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 24 -
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2019
2018
2019
2018
Balances:
£
£
£
£
Accelerated capital allowances
84,900
-
-
(10,995)
Provisions
(20,398)
-
-
38,247
64,502
-
-
27,252
2019
Movements in the year:
£
Liability/(Asset) at 1 January 2019
(27,252)
Charge to profit or loss
91,754
Liability at 31 December 2019
64,502
The deferred tax liability set out above is expected to reverse over time and relates to accelerated capital allowances that are expected to mature within the same period.
20
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
99,715
72,314
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.
21
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 25 -
22
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:
2019
2018
£
£
Within one year
76,234
460,410
Between two and five years
52,102
191,325
128,336
651,735
23
Related party transactions
The company paid rent of £22,950 (2018 - £22,950) to Acumen Partners LLP and the Trustees of C Doughty Private Pension in respect of a property owned by those two entities. J Hodges is a partner in Acumen Partners LLP. C Doughty is a director of the company and a trustee of the pension fund.
The company is a wholly-owned member of Acumen Logistics Group Limited and as such has taken advantage of the exemption permitted by Section 33 Related Party Disclosures, not to provide disclosures of transactions entered into with other wholly-owned members of the group.
24
Directors' transactions
The company paid a licence fee of £6,960 (2018 - £6,960) to J Hodges, a director, in respect of office accommodation.
Interest free loans have been granted by the company to it
'
s directors as follows:
Description
% Rate
Opening balance
Closing balance
£
£
Director's loan
-
1,000,000
1,000,000
1,000,000
1,000,000
The loan disclosed above is payable on demand.
ACUMEN DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 26 -
25
Ultimate controlling party
During the current and previous years, the ultimate and immediate parent company of Acumen Distribution Limited was Acumen Logistics Group Limited, a company registered in England and Wales.
Acumen Logistics Group Limited is the parent of the smallest and largest group for which consolidated accounts are prepared and of which the company is a member. Accounts for Acumen Logistics Group Limited are available to view on the public record at the Registrar of Companies website.
The registered office for Acumen Logistics Group Limited is Winter Hill House, Marlow Reach, Station Approach, Marlow, Buckinghamshire, SL7 1NT.
The ultimate controlling party is J Hodges by virtue of the fact that he holds 100% of the issued share capital of Acumen Logistics Group Limited.
26
Cash generated from operations
2019
2018
£
£
Profit for the year after tax
200,591
234,250
Adjustments for:
Taxation charged/(credited)
51,037
(23,837)
Finance costs
137,995
209,356
Investment income
(261)
(154)
Gain on disposal of tangible fixed assets
(48,153)
(11,926)
Depreciation and impairment of tangible fixed assets
933,315
1,428,433
Amounts written off investments
43
(80)
Movements in working capital:
Decrease/(increase) in debtors
479,887
(448,013)
(Decrease)/increase in creditors
(828,700)
691,660
Cash generated from operations
925,754
2,079,689
27
Analysis of changes in net debt
1 January 2019
Cash flows
New finance leases
31 December 2019
£
£
£
£
Cash at bank and in hand
325,995
(113,228)
-
212,767
Obligations under finance leases
(2,234,830)
1,707,571
(849,706)
(1,376,965)
(1,908,835)
1,594,343
(849,706)
(1,164,198)
2019-12-31
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false
CCH Software
CCH Accounts Production 2020.200
No description of principal activity
J Hodges
C Doughty
S Brown
N Ashraf
J Doughty
R Waring
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