REGISTERED NUMBER: |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
REGISTERED NUMBER: |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 4 |
Report of the Director | 5 |
Report of the Independent Auditors | 6 | to | 9 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 | to | 21 |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
3365 The Pentagon |
Century Way |
Thorpe Park |
Leeds |
West Yorkshire |
LS15 8ZB |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
The director presents her strategic report for the year ended 31st October 2022. |
REVIEW OF BUSINESS |
The directors are satisfied with the results of the company for the financial period. The turnover has increased by 17.2% to £66,108,194 in what has been another challenging year with further changes arising from the UK leaving the European Union, COVID-19 and Russia-Ukraine conflict. The gross profit has decreased by 1.4% impacted by increase of cost of sales by 17.7%. The gross margin percentage has remained healthy and consistent, the operating profit has risen by 6% versus prior year. |
IMPACT FROM THE RISKS RELATED TO THE COVID-19 PANDEMIC, RUSSIA-UKRAINE CONFLICT |
The pandemic situation originally affected the company's activities. However, the demand for transportation recovered quickly as shortages of certain products requiring transport were quickly replaced with new products requiring transportation. As the pandemic situation improved the overall turnover figure quickly recovered. |
The disruption caused by the invasion of Ukraine by Russia accompanied by COVID-19 restrictions; the supply chain uncertainty has continued into 2022. All together has highlighted the importance of transportation services and importance of developing new routes and further growth by all type of freights. |
Freight services continued to recover following the disruption caused by Russia-Ukraine conflict. Throughout the year the Company has continued to attract new customers and maintain the strong relationships with the existing customers. |
The Company's top priority was to safeguard the health and safety of its employees, to ensure the business continuity. The Company's ongoing business strategy of continued investments in team, systems and clients as well as to address the new requirements and manage new challenges and uncertainty by quickly adapting to the changing environment. Despite of difficult geopolitical situation, we plan to increase our volume of services, increase turnover, establish good cooperation with our customers, conclude new contracts with new customers. |
The 2023 financial year will inevitably be impacted by the ongoing Russia-Ukraine conflict, departure of the UK from the EU and other environmental challenges, but the Company believes the continued investment, our operational strategy and strong financial position will yield satisfactory results in future years. The directors are very proud of our dedicated, professional, and talented employees - the main capital of the Company. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risk facing the company is maintaining the turnover and the gross profit margin. The company mitigates this by building strong relationships with haulage carriers and providing excellent customer service enhancing their customer base. The ongoing conflict in Ukraine is also a cause for uncertainty as the company does operate in and around this geographical region, however, to date, the impact has been minimal as alternate routes avoiding this area have been readily available. |
In addition to that the company has exposure to the following main areas of risk - foreign exchange exposure and customer credit exposure. The company has established a risk and financial management framework whose primary objective is to mitigate the company's exposure to risk in order to protect the company from events that may hinder its performance. |
The company provides services in both pounds and euros and endeavours to match receipts and payments as closely as possible to minimize exchange rate risk. |
The company's credit risk is primarily attributable to its trade debtors and is managed by operating strict credit checks with its new customers and monitoring its customers on a regular basis. |
The company manages liquidity risk by monitoring the balance sheet position on a daily basis and actively managing available funds, to ensure that cash reserves are sufficient in the short term to meet the company's financial obligations as they fall due and to ensure that funds are available to support the company's operations and growth ambitions. |
The company continues to look for new opportunities and remain firmly focused on positioning the company to capitalise should such situations arise. The directors are confident though that the company will be able to react accordingly to ensure the continued success of the business. |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
FINANCIAL KEY PERFORMANCE INDICATORS |
The company's management team consider that the most relevant key performance indicators to monitor business performance and their relevant percentage are set out below: |
2022 | 2021 | Change |
£'000 | £'000 | % |
Revenue | 66,108 | 56,402 | 17.2 |
Gross profit | 1,445 | 1,465 | (1.4 | ) |
Gross Profit % | 2.2% | 2.6% | - |
Profit/(Loss) Before Tax | 121 | 141 | (14.5 | ) |
OPEX Margin | 2.1% | 2.5% | - |
The gross profit percentage remained, as expected, at 2%. |
DEVELOPMENT AND PERFORMANCE |
The Company has grown organically over the past year and further organic growth is expected during 2023, not least due to the ability to provide a wide suite of services as a Transport agent. The Company remains at the forefront of obtaining time critical solutions and will continue to invest in training and IT systems to ensure it continues to do so. |
Based on the market analysis and plan in 2023 the Company expects to achieve the following results: |
- Sales volume increase by 6.5% |
- Gross profit - by 51.2% mainly due to optimization routes and work with customers & suppliers. |
- Gross profit margin - 3.1% which is +0.92 pp vs 2022 |
- OPEX - in total +6.1% vs prior year driving by salary increase (new staff) and almost the same level as % of NS (2.1%) |
- Net profit growth by several times. |
Section 172 of the Companies Act requires directors to act in a way that they consider would be most likely to promote the success of the Company. In doing so, directors must take into consideration the interests of various stakeholders of the Company (including employees, customers, suppliers, shareholders, and others), the impact of the Company's operations on the community and the environment and take a long-term view of the likely consequences of decisions they make as well as maintaining a reputation for high standards of business conduct. |
The management of the Company has a constructive dialogue with the various stakeholders of the business either directly or through the management structure. The Company considers the stakeholders to be employees, customers, suppliers (including subcontractors), shareholders and others and the directors consider the long-term consequences of decisions made both on the Company as well as on the community and the environment. |
The Company operates policies that ensure to focus on maintaining a reputation for high standards of business, whilst the regular communication with employees as well as the health and safety focus should provide long-term benefits for all stakeholders. These policies include but are not limited to carrying out monthly and quarterly review meetings, presentations of results of the Company, regular meeting with key customers. |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
FUTURE DEVELOPMENT |
The Company is well established and well respected and whilst the commercial environment is expected to remain challenging. The directors anticipate an improved performance in the year ahead. |
The market, especially in the UK, remains somewhat fragile following the combination of the oil price volatility and impact of the Russia-Ukraine conflict, both on the international freight and oil markets. At the outset of the pandemic, the company sought to reduce costs and improved cash flow where possible. The Company expects to continue to improve its position on the market, though clearly this is dependent on an overall economic recovery and global stability. |
ON BEHALF OF THE BOARD: |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
The director presents her report with the financial statements of the company for the year ended 31st October 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of Transport agents. |
DIVIDENDS |
No dividends will be distributed for the year ended 31st October 2022. |
DIRECTORS |
The directors who have held office during the period from 1st November 2021 to the date of this report are as follows: |
FINANCIAL INSTRUMENTS |
The financial statements comprise of borrowings such as secured loans, advance receipts in respect of the ordinary activities of the group, cash and liquid resources, finance leases and various other items such as trade debtors and trade creditors that also arise directly from its operations. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Thomas Coombs Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED |
Opinion |
We have audited the financial statements of T.E.L.S. Transeuropean Logistic Services Limited (the 'company') for the year ended 31st October 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31st October 2022 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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: |
Based on our understanding of the entity and industries in which it operates, we identified the principal risks of non-compliance with laws and regulations related to ISO certifications and data protection. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, tax legislation and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). |
We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls, and ensuring these controls operated as intended. We determined the principal risks were related to posting journal entries to manipulate profits, and management bias in accounting estimates, especially bad debt provision. |
To address the risk of fraud through management bias and override of controls, we: |
- Performed analytical procedures to identify any unusual or unexpected relationships. |
- Identified and tested journal entries and identified any significant transactions that were unusual or outside the normal course of business. |
- Investigated the rationale behind significant or unusual transactions. |
- Challenged assumptions and judgements made by management in determining significant accounting estimates, in particular in relation to bad debt provision. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to: |
- Agreeing financial statements disclosures to underlying supporting documentation. |
- Discussions with management of known or suspected instances of non-compliance with laws and regulations. |
- Reading the minutes of meetings of those charged with governance. |
- Reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors. |
At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
3365 The Pentagon |
Century Way |
Thorpe Park |
Leeds |
West Yorkshire |
LS15 8ZB |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
BALANCE SHEET |
31ST OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
Investments | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 12 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the director and authorised for issue on |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st November 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 31st October 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31st October 2022 |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year | 2 | 2,426,289 |
Cash and cash equivalents at end of year | 2 | 10,000,492 | 3,602,167 |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance income | (40,890 | ) | (65,247 | ) |
342,422 | 344,940 |
Decrease in trade and other debtors |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st October 2022 |
31/10/22 | 1/11/21 |
£ | £ |
Cash and cash equivalents | 10,000,492 | 3,602,167 |
Year ended 31st October 2021 |
31/10/21 | 1/11/20 |
£ | £ |
Cash and cash equivalents | 3,602,167 | 2,426,289 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/11/21 | Cash flow | At 31/10/22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,602,167 | 6,398,325 | 10,000,492 |
3,602,167 | 10,000,492 |
Total | 3,602,167 | 6,398,325 | 10,000,492 |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
1. | STATUTORY INFORMATION |
T.E.L.S. Transeuropean Logistic Services Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Turnover and revenue recognition |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: |
The company recognises revenue when the outcome of a transaction can be estimated reliably, 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. |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Asset Class | Depreciation rate |
Fixtures, fittings and equipment | 25% Reducing balance basis |
Motor vehicles | 25% Reducing balance basis |
Software/Computer equipment | 20% - 33.3% Straight line basis |
Investments in associates |
Investments in associate undertakings are recognised at cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
Hire purchase and leasing commitments |
Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors. |
Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease. |
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
£ | £ |
United Kingdom |
Europe |
Worldwide | 41,520,301 | 29,294,234 |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
Administration and support |
2022 | 2021 |
£ | £ |
Directors' remuneration |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences | ( |
) | ( |
) |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) | ( |
) |
Tax on profit |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is the same as the standard rate of corporation tax in the UK. |
2022 | 2021 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Depreciation in excess of capital allowances |
Deferred tax | (43,760 | ) | (43,072 | ) |
Total tax charge | 22,933 | 26,813 |
7. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1st November 2021 |
Additions |
At 31st October 2022 |
DEPRECIATION |
At 1st November 2021 |
Charge for year |
At 31st October 2022 |
NET BOOK VALUE |
At 31st October 2022 |
At 31st October 2021 |
8. | FIXED ASSET INVESTMENTS |
Investments |
in |
associates |
£ |
COST |
At 1st November 2021 |
and 31st October 2022 |
NET BOOK VALUE |
At 31st October 2022 |
At 31st October 2021 |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
8. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Associated company |
Registered office: Praha 5 – Jinonice, Pekarská 621/7, PSC 1550, Ceská republika |
Nature of business: |
% |
Class of shares: | holding |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade creditors |
Corporation Tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
11. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
12. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax | 55,864 | 99,624 |
Deferred |
tax |
£ |
Balance at 1st November 2021 |
Credit to Income Statement during year | ( |
) |
Balance at 31st October 2022 |
T.E.L.S. TRANSEUROPEAN LOGISTIC SERVICES |
LIMITED (REGISTERED NUMBER: 04303303) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2022 |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary Shares of £1 each | £1 | 3 | 3 |
14. | RESERVES |
Retained |
earnings |
£ |
At 1st November 2021 |
Profit for the year |
At 31st October 2022 |