Registration number:
Acumen Distribution Limited
for the Period from 1 January 2020 to 31 March 2021
Acumen Distribution Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Independent Auditor's Report |
|
Statement of Income and Retained Earnings |
|
Balance Sheet |
|
Notes to the Financial Statements |
Acumen Distribution Limited
Company Information
Directors |
C C C Doughty N Ashraf J M Doughty R Waring S Brown |
Company secretary |
J M Doughty |
Registered office |
|
Auditors |
|
Acumen Distribution Limited
Strategic Report for the Period from 1 January 2020 to 31 March 2021
The directors present their strategic report for the period from 1 January 2020 to 31 March 2021.
Principal activity
The principal activity of the company is that of transportation services.
Fair review of the business
The profit and loss on page 10 shows turnover of £10,999,342 (2019 £12,200,942), which produced a profit before taxation of £36,567 (2019 £251,628).
The balance sheet shows that the company's net assets at the year end have decreased to £2,801,164 from £4,471,683, which is due to an intra group dividend being voted up to the parent company during the period.
The global COVID 19 issue severely affected the company’s results in the 15 month period. The business was forced to close completely for around 6 weeks at the start of the pandemic before recovering gradually through June 2020. The remainder of the year was affected to a lesser extent, as restrictions on the economy ebbed and flowed in line with the incidence of the virus on the country’s population. Additionally, the eventual implementation of Brexit at the end of 2020 disrupted the company’s operations somewhat in January 2021.
However, despite this, with the hard work of its directors and employees, the support of its external funders and by making use of the UK government’s ‘furlough’ scheme, the company managed to navigate this very difficult period successfully. The directors are satisfied that without the combined effects of the pandemic and Brexit, the company would have enjoyed a strongly profitable 15 months.
Principal risks and uncertainties
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 / Microchip shortage
Whilst the direct effect of Covid on the company’s activities has lessened with the roll out of vaccine programmes across the developed world (barring higher than normal levels of absenteeism due to sickness), the company is now being affected by a related issue.
Since the spring of 2021 all UK automotive manufacturers have been affected, to varying degrees, by a global shortage of microchips which is a knock-on effect from the Covid 19 pandemic. As an automotive logistics business all the company’s activities are impacted by this reduced production to some extent. The directors are taking all possible steps to lessen the financial impact of this issue during the remainder of 2021 and expect a gradual return to normal trading over the course of 2022. Whilst the issue is expected to limit the company’s profitability in 2021/2022, at the time of writing the directors do not expect it to push the company into a loss position or cause any liquidity issues.
Acumen Distribution Limited
Strategic Report for the Period from 1 January 2020 to 31 March 2021
Driver Shortages
As has been well publicised, there is an acute shortage of HGV drivers in the UK, which has put significant upward pressure on wages. As a logistics company the business cannot operate and service its customers without experienced drivers, so the directors have resolved to continue to pay competitive market rates and when contractually possible, pass these increased costs on to customers.
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 will 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.
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.
Future Developments
The directors aim to continue in the company’s traditional markets of inbound and outbound automotive logistics. They believe there will be good opportunities in both areas, post the chip crisis, to further develop profitably, with a modern reliable fleet and a stable retained workforce.
Approved by the
Director
Acumen Distribution Limited
Directors' Report for the Period from 1 January 2020 to 31 March 2021
The directors present their report and the financial statements for the period from 1 January 2020 to 31 March 2021.
Statement of directors responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The 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.
Directors of the company
The directors who held office during the period were as follows:
Acumen Distribution Limited
Directors' Report for the Period from 1 January 2020 to 31 March 2021
Financial instruments
Objectives and policies
The company is exposed to the following risks from its financial instruments:
- Liquidity risk
- Credit risk
The directors have overall responsibility for the establishment and oversight of the Company's risk management framework.
The exposure to the above risks are monitored by the Board of Directors as part of its daily management of the Company's activities.
Price risk, credit risk, liquidity risk and cash flow risk
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term debt finance.
Credit risk
The company's principal financial assets are bank balances and cash, trade and other receivables.
The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified evidence of a reduction in the recoverability of the cash flows.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
Director
Acumen Distribution Limited
Independent Auditor's Report to the Members of Acumen Distribution Limited
Opinion
We have audited the financial statements of Acumen Distribution Limited (the 'company') for the period from 1 January 2020 to 31 March 2021, which comprise the Statement of Income and Retained Earnings, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• |
give a true and fair view of the state of the company's affairs as at 31 March 2021 and of its profit for the period then ended; |
• |
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• |
have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Acumen Distribution Limited
Independent Auditor's Report to the Members of Acumen Distribution Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• |
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the financial statements are not in agreement with the accounting records and returns; or |
• |
certain disclosures of directors’ remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Our assessment focused on key laws and regulations the entity has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant tax legislation.
Acumen Distribution Limited
Independent Auditor's Report to the Members of Acumen Distribution Limited
We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:
• obtaining an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework;
• obtaining an understanding of the entity's policies and procedures and how the entity has complied with these, through discussions and walkthrough testing;
• obtaining an understanding of the entity's risk assessment process, including the risk of fraud;
• enquiring of management as to actual and potential fraud, litigation and claims;
• designing our audit procedures to respond to our risk assessment;
• performing audit testing over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business;
• assessing whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
• performing analytical procedures to identify any large, unusual or unexpected relationships.
Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Acumen Distribution Limited
Independent Auditor's Report to the Members of Acumen Distribution Limited
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
5 Prospect Place
Millennium Way
Pride Park
DE24 8HG
Acumen Distribution Limited
Statement of Income and Retained Earnings for the Period from 1 January 2020 to 31 March 2021
Note |
Period ended |
Year ended |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Revaluation loss on investments |
( |
( |
|
Other interest receivable and similar income |
- |
|
|
Interest payable and similar charges |
( |
( |
|
(100,185) |
(137,777) |
||
Profit before tax |
|
|
|
Taxation |
|
( |
|
Profit for the financial period |
|
|
|
Retained earnings brought forward |
4,471,583 |
4,370,988 |
|
Dividends paid |
( |
( |
|
Retained earnings carried forward |
2,801,064 |
4,471,583 |
Acumen Distribution Limited
(Registration number: 01612058)
Balance Sheet as at 31 March 2021
Note |
31 March |
31 December |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Other financial assets |
- |
20,029 |
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
Director
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of the registered office is given in the company information on page 1 of the financial statements.
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in Sterling (£) and rounded to the nearest £1.
Summary of disclosure exemptions
The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements. Exemptions have been taken in relation to presentation of a cash flow statement and remuneration of key management personel.
Disclosure of long or short period
Going concern
These financial statements are prepared on the going concern basis. During the period and after the balance sheet date, 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 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.
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Judgements
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. |
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
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.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Government grants
Government grants are recognised in the profit and loss account as income when such grant does not impose specified future performance-related conditions, in accordance with the performance model.
Foreign currency transactions and balances
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Land and buildings |
Over the period of the lease |
Plant and machinery |
2 - 10 years on cost |
Furniture, fittings and equipment |
2 - 5 years on cost |
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Revenue |
The analysis of the company's revenue for the period from continuing operations is as follows:
31 March |
31 December |
|
Transportation services |
|
|
Warehousing services |
|
|
|
|
The analysis of the company's turnover for the period by market is as follows:
31 March |
31 December |
|
UK |
|
|
Europe |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the period is as follows:
31 March |
31 December |
|
Government grants |
|
- |
Miscellaneous other operating income |
|
|
Management charges receivable |
250,000 |
- |
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the period is as follows:
31 March |
31 December |
|
Gain (loss) on disposal of property, plant and equipment |
|
|
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Operating profit |
Arrived at after charging/(crediting)
31 March |
31 December |
|
Depreciation expense |
|
|
Lease expense - property |
|
|
Lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Government grants |
The amount of grants recognised in the financial statements was £
Other interest receivable and similar income |
31 March |
31 December |
|
Interest income on bank deposits |
- |
|
Other finance income |
- |
|
- |
|
Interest payable and similar expenses |
31 March |
31 December |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
31 March |
31 December |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:
31 March |
31 December |
|
Production |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
31 March |
31 December |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
405,844 |
130,496 |
Auditors' remuneration |
31 March |
31 December |
|
Audit of the financial statements |
|
|
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Taxation |
Tax charged/(credited) in the income statement
31 March |
31 December |
|
Current taxation |
||
UK corporation tax |
- |
( |
UK corporation tax adjustment to prior periods |
( |
( |
(886) |
(40,717) |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax (receipt)/expense in the income statement |
( |
|
The tax on profit before tax for the period is the same as the standard rate of corporation tax in the UK (2019 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
31 March |
31 December |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Decrease in tax from unrecognised temporary difference from a prior period |
( |
( |
Tax increase from effect of capital allowances and depreciation |
|
|
Tax decrease from other short-term timing differences |
( |
- |
Tax decrease arising from group relief |
( |
- |
Deferred tax arising from origination and reversal of timing differences |
( |
- |
Total tax (credit)/charge |
( |
|
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Deferred tax
Deferred tax assets and liabilities
31 March |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Provisions |
|
- |
|
|
31 December |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Provisions |
|
- |
|
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £83,542 (2019 - £86,785).
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Plant and machinery |
Total |
|
Cost or valuation |
||||
At 1 January 2020 |
|
|
|
|
Additions |
- |
|
|
|
Disposals |
( |
( |
( |
( |
At 31 March 2021 |
|
|
|
|
Depreciation |
||||
At 1 January 2020 |
|
|
|
|
Charge for the period |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
( |
At 31 March 2021 |
|
|
|
|
Carrying amount |
||||
At 31 March 2021 |
- |
|
|
|
At 31 December 2019 |
|
|
|
|
Included within the net book value of land and buildings above is £Nil (2019 - £2,983) in respect of short leasehold land and buildings.
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
Plant and machinery |
31 March
|
31 December
|
Other financial assets (current and non-current) |
31 March |
31 December |
|
Non-current financial assets |
||
Financial assets at fair value through profit and loss |
- |
|
Financial assets at fair value through profit and loss |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 January 2020 |
20,029 |
20,029 |
Fair value adjustments |
(8,161) |
(8,161) |
Disposals |
(11,868) |
(11,868) |
At 31 March 2021 |
- |
- |
Impairment |
||
At 31 March 2021 |
- |
- |
Carrying amount |
||
At 31 March 2021 |
- |
- |
At 31 December 2019 |
|
20,029 |
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Debtors |
Note |
31 March |
31 December |
|
Trade debtors |
|
|
|
Amounts owed by group undertakings |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Corporation tax asset |
|
|
|
|
|
Details of non-current trade and other debtors
£1,483,454 (2019 - £2,082,569) of amounts due to related parties is classified as non current.
Creditors |
Note |
31 March |
31 December |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts owed to group undertakings |
|
|
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
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 £1,109,379 (2019 - £1,301,101) under the facility. This liability is included in other creditors.
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 January 2020 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 31 March 2021 |
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
31 March |
31 December |
|||
No. |
£ |
No. |
£ |
|
|
|
100 |
|
100 |
Reserves |
Profit and loss reserve
The profit and loss account respresents cumulative profits and losses net of dividends and other adjustments.
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Loans and borrowings |
31 March |
31 December |
|
Non-current loans and borrowings |
||
Bank borrowings |
|
- |
Amounts owed under hire purchase and finance lease contracts |
|
|
|
|
31 March |
31 December |
|
Current loans and borrowings |
||
Bank borrowings |
|
- |
Amounts owed under hire purchase and finance lease contracts |
|
|
|
|
Bank borrowings
Included within the above in bank borrowings is an amount of £400,000 which has been received during the year under the Coronavirus Business Interruption Loan Scheme (CBILS) (31 March 2020 - £nil). Under the terms of this loan, the repayment period is 60 months after the loan was drawn. As such with all CBILS loans, the government guarantees 80% of the loan however the company has also provided security over the remainder of the loan by way of a debenture over all assets of the company.
Bank facilities are secured by way of a debenture and an unlimited guarantee from Acumen Automotive Logistics Limited and Acumen Logistics Group Limited.
Other borrowings
Amounts owed under Hire Purchase and Finance Lease contracts with a carrying amount of £1,092,897 (2019 - £1,376,965) is denominated in sterling.
The amounts owed under Hire Purchase and Finance Lease contracts are secured against the related asset.
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Obligations under leases and hire purchase contracts |
Finance leases and hire purchase contracts
The total of future minimum lease payments is as follows:
31 March |
(As restated) |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
31 March |
(As restated) |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Related party transactions |
Transactions with directors |
2021 |
At 1 January 2020 |
Repayments by director |
At 31 March 2021 |
Interest free loan repayable on demand |
|
( |
- |
2019 |
At 1 January 2019 |
Repayments by director |
At 31 December 2019 |
Interest free loan repayable on demand |
|
- |
|
Acumen Distribution Limited
Notes to the Financial Statements for the Period from 1 January 2020 to 31 March 2021
Summary of transactions with fellow group member which is not wholly-owned
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.
Summary of transactions with other related parties
During the year, the company paid total rent of £28,688 (2019 - £22,950) to an LLP and Pension scheme in which former and current directors of the company are are either partners or trustees of.
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
Relationship between entity and parents
The parent of the smallest and largest group in which these financial statements are consolidated is
Acumen Logistics Group Limited, incorporated in England.
The address of Acumen Logistics Group Limited is:
Acumen House Park Circle, Tithe Barn Way, Swan Valley, Northampton, United Kingdom, NN4 9BH.
These financial statements are available upon request from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.