Company Registration No. 10745227 (England and Wales)
SPRINT LOGISTICS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
SPRINT LOGISTICS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr I Hussain
Mr S Hussain
Mr A Hussain
Company number
10745227
Registered office
30 Old Market
Wisbech
Cambridgeshire
PE13 1NB
Auditor
Mapus-Smith & Lemmon LLP
48 King Street
King's Lynn
Norfolk
PE30 1HE
Business address
A2 Parkway West
Cranford Lane
Heston
Middlesex
TW5 9QA
SPRINT LOGISTICS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
SPRINT LOGISTICS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Review of the business
Sprint Logistics is a third-party logistics provider based in Heathrow and Peterborough with presence in e-commerce logistics, D2C and other e-fulfilment services, co-packing, managed freight, distribution and warehousing services.
Revenue declined by 11.5% driven by a decline in freight services but ongoing growth of e-commerce and managed one-stop services continued to deliver positive benefits across all areas of the business resulting an increase in total gross profit, the key measure of value-added from business. The group generated EBITDA of £529,139, continuing the solid progress achieved in the prior years. The company's sales and marketing strategy continues to deliver a good number of new customers which in time compensate for these trends and drive the company forward.
Our IT operational management system (WMS) which controls orders, workflows, warehousing, kitting, warehouse billing and other activity continues to gather momentum and as can often be the case has grown in scope and function to accommodate new features and concepts and is beginning to make strides into machine learning and AI-concepts to help drive scale and efficiency. The product is called BOLT, and we are now live across 4 warehouses in the UK and have started in Europe. This cutting edge, cloud-based warehouse and operational management system has won the prestigious UK Innovate ward demonstrating external recognition for our relentless focus on building our own management system. The Company is streamlining its technology and process with BOLT and our carrier management system covering both our Heathrow and Peterborough operations as well all our all last-mile carriers in the UK – from tracked and untracked mail, economy and premium parcels, light and heavy pallets and dedicated trailers.
During the year, there has been significant growth in e-commerce capabilities with further growth being driven by integration into the major online marketplaces and selected shopping hubs. Our growth meant that we expanded our warehousing operations by taking new facilities in Harrier Park, Peterborough and some shorter-term space in Heathrow. We also launched services in Europe from Heerlen, in the southernly tip of The Netherlands integrating into our systems so customers can now receive both a UK and a European fulfilment solution, reducing delivery times and tax inefficiencies. During the year, the Board agreed to invest in a strategic shareholding stake in ECC, our European 3PL partner. Following this investment, the company rebranded to Sprint-ECC and we have begun integration of the systems of the businesses and are able to offer our clients a combined UK-European solution which supports Sprint's ambition of deeper and more value-added ties with our clients and prospects.
Sprint has very limited exposure to the financial and legal services industry and has broadened interests into telecommunications' equipment, cosmetics, clinical testing, drinks, online retail, exhibitions, direct to consumer and speciality fashion.
The Group's key financial and other performance indicators during the year were as follows:
2023
2022
Turnover
11,212,867
12,434,539
EBITDA
529,139
1,036,307
Profit/(loss) for the financial year
12,596
383,424
Shareholders funds
698,763
716,167
Employees
89
87
The Group has adopted a number of quality management and environmentally friendly practices since 2000 and aims to continue to extend and enhance these throughout the business. The Group is accredited with the ISO 9001:2000, ISO 14001:2004 Environmental Management System (EMS) standards, ISO 27001 Information Security standards as well as being a member of the UKWA.
SPRINT LOGISTICS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Principal risks and uncertainties
The principal risk and uncertainties facing the Group are broadly grouped into some key categories: commercial business risk, credit risks and liquidity risks. Credit risk The Group has an outstanding record on collection of cash from debtors, with bad debt levels representing less than 0.5% of turnover. This has been achieved through a careful combination of credit screening, both prior to opening a new sales account and at intervals throughout the life of the account, through rigorous and detailed cash collection processes and through the focus of business development on blue chip and creditworthy clients. Exposure to credit risk is further lessoned by the spread of debtors, with no single debtor account representing in excess of 10% of turnover. The Group will continue to monitor its debtors and to management its debtor book in a similar fashion for the foreseeable future. Commercial business risk The directors believe the Group continues to be well placed in its industry sector and there is no significant threat over which it has little or no control. Typical risks include loss of market share (through increased competition and via some contracts that are subject to periodic competitive tender), erosion of operating profits through rising fuel costs and loss of key personnel and a general weakening in the economy which affects courier consignment levels. The directors believe the business has a very small market share of the courier and logistics marketplace and whilst it has been impacted by the economic slowdown, in the medium term it will be able to overcome the weakness in the economy through continued business expansion. In order to mitigate the other risks, the Group has continued to invest in people and processes to provide outstanding product and customer service, maintained a policy of setting a fuel surcharge for express services which is in line with market benchmarks and continued to provide an exceptional working environment with investment in personal development and strengthening the concept of being an employer of choice. The business is robust and mature having been trading for over 35 years at the balance sheet date and is in a stronger position to mitigate other business risks and uncertainty. Financial Instruments Operations are largely financed by retained profits, cash flow from operations and significant cash resources. The risk that the entity will encounter difficulty making obligations association with financial liabilities is referred to as liquidity risk. The Company aims to mitigate liquidity risk by effective cash generation through its operations, applying strong cash collection principles throughout the business. The directors monitor the liquidity and cash flow of the company carefully. In addition, the Group benefits from a significant invoice discounting facility which, at the balance sheet date, has significant undrawn availability. |
|
Mr A Hussain
Director
18 January 2024
SPRINT LOGISTICS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company and group continued to be that of courier service focused on international express courier services, UK domestic courier services, international mailings and fulfilment services.
Results and dividends
The results for the year are set out on page 8.
Dividends of £30,000 have been paid to minority interests. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr I Hussain
Mr S Hussain
Mr A Hussain
Auditor
Mapus-Smith & Lemmon LLP were appointed as auditor to the company and in accordance with Section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of 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 auditor of the company 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 auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr A Hussain
Director
18 January 2024
SPRINT LOGISTICS HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 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 group and company, and of the profit or loss of the group 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 ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SPRINT LOGISTICS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPRINT LOGISTICS HOLDINGS LIMITED
- 5 -
Opinion
We have audited the financial statements of Sprint Logistics Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2023 and of the group's 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 group and parent 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 group's and parent 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 directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report 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.
SPRINT LOGISTICS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPRINT LOGISTICS HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the logistics sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including the Companies Act 2006, taxation legislation, data protection, anti-bribery, and employment legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
SPRINT LOGISTICS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPRINT LOGISTICS HOLDINGS LIMITED
- 7 -
To address the risk of fraud through management bias and override controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Sharon Edwards (Senior Statutory Auditor)
For and on behalf of Mapus-Smith & Lemmon LLP
19 January 2024
Chartered Accountants
Statutory Auditor
48 King Street
King's Lynn
Norfolk
PE30 1HE
SPRINT LOGISTICS HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
11,212,867
12,434,539
Cost of sales
(4,774,549)
(6,047,203)
Gross profit
6,438,318
6,387,336
Distribution costs
(610,210)
(602,510)
Administrative expenses
(6,004,653)
(5,754,520)
Other operating income
-
292,501
Operating (loss)/profit
4
(176,545)
322,807
Interest receivable and similar income
8
25
Interest payable and similar expenses
9
(12,056)
(21,256)
(Loss)/profit before taxation
(188,601)
301,576
Tax on (loss)/profit
10
201,197
81,848
Profit for the financial year
24
12,596
383,424
SPRINT LOGISTICS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Profit for the year
12,596
383,424
Other comprehensive income
-
-
Total comprehensive income for the year
12,596
383,424
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(69,197)
373,994
- Non-controlling interests
81,793
9,430
12,596
383,424
SPRINT LOGISTICS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
892,370
1,268,608
Other intangible assets
11
1,280
1,280
Total intangible assets
893,650
1,269,888
Tangible assets
12
652,364
749,950
Investments
13
1,483,850
1,000,000
3,029,864
3,019,838
Current assets
Debtors
16
1,950,445
1,769,815
Cash at bank and in hand
111,546
233,968
2,061,991
2,003,783
Creditors: amounts falling due within one year
17
(1,633,976)
(1,451,763)
Net current assets
428,015
552,020
Total assets less current liabilities
3,457,879
3,571,858
Creditors: amounts falling due after more than one year
18
(2,759,116)
(2,819,024)
Provisions for liabilities
Deferred tax liability
20
36,667
-
(36,667)
Net assets
698,763
716,167
Capital and reserves
Called up share capital
22
200
200
Share premium account
23
2,381,355
2,381,355
Profit and loss reserves
24
(1,819,226)
(1,720,029)
Equity attributable to owners of the parent company
562,329
661,526
Non-controlling interests
136,434
54,641
698,763
716,167
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
SPRINT LOGISTICS HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 18 January 2024 and are signed on its behalf by:
18 January 2024
Mr A Hussain
Director
Company registration number 10745227 (England and Wales)
SPRINT LOGISTICS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
151,802
219,271
Other intangible assets
11
1,280
1,280
Total intangible assets
153,082
220,551
Tangible assets
12
132,143
123,964
Investments
13
4,568,766
4,084,916
4,853,991
4,429,431
Current assets
Debtors
16
61,412
61,412
Cash at bank and in hand
10,250
26,361
71,662
87,773
Creditors: amounts falling due within one year
17
(599,016)
(417,244)
Net current liabilities
(527,354)
(329,471)
Total assets less current liabilities
4,326,637
4,099,960
Creditors: amounts falling due after more than one year
18
(2,759,116)
(2,819,024)
Net assets
1,567,521
1,280,936
Capital and reserves
Called up share capital
22
200
200
Share premium account
23
2,381,355
2,381,355
Other reserves
37,208
37,208
Profit and loss reserves
24
(851,242)
(1,137,827)
Total equity
1,567,521
1,280,936
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £286,585 (2022 - £505,876 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 18 January 2024 and are signed on its behalf by:
18 January 2024
Mr A Hussain
Director
Company registration number 10745227 (England and Wales)
SPRINT LOGISTICS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 April 2021
200
2,381,355
(1,919,235)
462,320
90,423
552,743
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
373,994
373,994
9,430
383,424
Dividends
-
-
(20,000)
(20,000)
-
(20,000)
Purchase of shares in subsidiary from non-controlling interest
-
-
(154,788)
(154,788)
(45,212)
(200,000)
Balance at 31 March 2022
200
2,381,355
(1,720,029)
661,526
54,641
716,167
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
(69,197)
(69,197)
81,793
12,596
Dividends
-
-
(30,000)
(30,000)
-
(30,000)
Balance at 31 March 2023
200
2,381,355
(1,819,226)
562,329
136,434
698,763
SPRINT LOGISTICS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2021
200
2,381,355
37,208
(1,643,703)
775,060
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
-
505,876
505,876
Balance at 31 March 2022
200
2,381,355
37,208
(1,137,827)
1,280,936
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
286,585
286,585
Balance at 31 March 2023
200
2,381,355
37,208
(851,242)
1,567,521
SPRINT LOGISTICS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
337,971
1,212,255
Interest paid
(12,056)
(21,256)
Income taxes (paid)/refunded
(31,168)
97,862
Net cash inflow from operating activities
294,747
1,288,861
Investing activities
Purchase of tangible fixed assets
(231,860)
(477,162)
Proceeds from disposal of tangible fixed assets
-
(1)
Purchase of other investments
(483,850)
-
Interest received
25
Net cash used in investing activities
(715,710)
(477,138)
Financing activities
Proceeds from borrowings
135,160
(45,556)
Repayment of directors' loans
(180,792)
(541,382)
Payment of finance leases obligations
-
(824)
Purchase of shares in subsidiary from non-controlling interest
-
(200,000)
Dividends paid to equity shareholders
(30,000)
(20,000)
Net cash used in financing activities
(75,632)
(807,762)
Net (decrease)/increase in cash and cash equivalents
(496,595)
3,961
Cash and cash equivalents at beginning of year
148,847
144,886
Cash and cash equivalents at end of year
(347,748)
148,847
Relating to:
Cash at bank and in hand
111,546
233,968
Bank overdrafts included in creditors payable within one year
(459,294)
(85,121)
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
1
Accounting policies
Company information
Sprint Logistics Holdings Limited (“the company”) is a private company limited by shares and incorporated in England and Wales. The registered office is 30 Old Market, Wisbech, Cambridgeshire, PE13 1NB.
The group consists of Sprint Logistics Holdings Limited and all of its subsidiaries.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Sprint Logistics Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
The company has taken advantage of the exemption allowed under S408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The directors have made strategic decisions which have improved the performance of the group and have confirmed that they will continue to support the group until such a point that they can withdraw their support.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
0%
The directors believe that the carrying value of patents reflects the fair value and so no depreciation is charged.
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold buildings
Written off over the term of the lease
Plant and equipment
20%, 33% straight line
Fixtures and fittings
20%, 25%, 33% straight line
Computers
33% reducing balance basis
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 recognised in the profit and loss account.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments 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. Amounts 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.
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’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 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 if, and only if, there is 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.
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
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 leased asset are consumed.
1.18
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.19
Foreign exchange
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 in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
11,212,867
12,434,539
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 23 -
2023
2022
£
£
Turnover analysed by geographical market
UK
6,980,458
9,942,544
EU
2,492,377
845,034
ROW
1,740,032
1,646,961
11,212,867
12,434,539
2023
2022
£
£
Other revenue
Interest income
-
25
Grants received
-
292,501
4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(11)
2,325
Government grants
-
(292,501)
Depreciation of owned tangible fixed assets
329,446
284,691
(Profit)/loss on disposal of tangible fixed assets
-
52,571
Amortisation of intangible assets
376,238
376,238
Operating lease charges
693,825
794,317
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,118
5,000
Audit of the financial statements of the company's subsidiaries
13,815
12,000
18,933
17,000
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Total admin and management
89
87
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,899,334
2,895,837
Social security costs
286,919
223,908
-
-
Pension costs
66,756
11,961
3,253,009
3,131,706
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
298,205
213,803
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
113,458
120,000
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
-
25
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,885
3,222
Interest on invoice finance arrangements
10,154
18,858
12,039
22,080
Other finance costs:
Interest on finance leases and hire purchase contracts
-
(824)
Other interest
17
-
Total finance costs
12,056
21,256
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(164,530)
Adjustments in respect of prior periods
(53,908)
Total current tax
(164,530)
(53,908)
Deferred tax
Origination and reversal of timing differences
(36,667)
(27,940)
Total tax credit
(201,197)
(81,848)
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 26 -
The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(188,601)
301,576
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(35,834)
57,299
Tax effect of expenses that are not deductible in determining taxable profit
1,678
3,020
Tax effect of utilisation of tax losses not previously recognised
(50,644)
(24,935)
Unutilised tax losses carried forward
30,341
Change in unrecognised deferred tax assets
(36,667)
25
Adjustments in respect of prior years
(53,908)
Amortisation on assets not qualifying for tax allowances
71,485
71,485
Research and development tax credit
(158,391)
(165,175)
Accelerated capital allowances
7,176
Taxation credit
(201,197)
(81,848)
11
Intangible fixed assets
Group
Goodwill
Patents & licences
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
4,673,070
1,280
4,674,350
Amortisation and impairment
At 1 April 2022
3,404,462
3,404,462
Amortisation charged for the year
376,238
376,238
At 31 March 2023
3,780,700
3,780,700
Carrying amount
At 31 March 2023
892,370
1,280
893,650
At 31 March 2022
1,268,608
1,280
1,269,888
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Intangible fixed assets
(Continued)
- 27 -
Company
Goodwill
Patents & licences
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
998,007
1,280
999,287
Amortisation and impairment
At 1 April 2022
778,736
778,736
Amortisation charged for the year
67,469
67,469
At 31 March 2023
846,205
846,205
Carrying amount
At 31 March 2023
151,802
1,280
153,082
At 31 March 2022
219,271
1,280
220,551
12
Tangible fixed assets
Group
Leasehold buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 April 2022
1,081,140
273,749
444,349
1,799,238
Additions
6,236
7,530
202,804
15,290
231,860
At 31 March 2023
1,087,376
281,279
647,153
15,290
2,031,098
Depreciation and impairment
At 1 April 2022
800,485
139,644
109,159
1,049,288
Depreciation charged in the year
172,453
37,711
116,288
2,994
329,446
At 31 March 2023
972,938
177,355
225,447
2,994
1,378,734
Carrying amount
At 31 March 2023
114,438
103,924
421,706
12,296
652,364
At 31 March 2022
280,655
134,105
335,190
749,950
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Tangible fixed assets
(Continued)
- 28 -
Company
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2022
52,000
117,457
169,457
Additions
23,396
15,290
38,686
At 31 March 2023
52,000
140,853
15,290
208,143
Depreciation and impairment
At 1 April 2022
45,493
45,493
Depreciation charged in the year
27,513
2,994
30,507
At 31 March 2023
73,006
2,994
76,000
Carrying amount
At 31 March 2023
52,000
67,847
12,296
132,143
At 31 March 2022
52,000
71,964
123,964
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
4,084,916
4,084,916
Unlisted investments
1,483,850
1,000,000
483,850
1,483,850
1,000,000
4,568,766
4,084,916
The group acquired a 17.98% holding in an overseas company.
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 April 2022
1,000,000
Additions
483,850
At 31 March 2023
1,483,850
Carrying amount
At 31 March 2023
1,483,850
At 31 March 2022
1,000,000
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 April 2022
4,084,916
-
4,084,916
Additions
-
483,850
483,850
At 31 March 2023
4,084,916
483,850
4,568,766
Carrying amount
At 31 March 2023
4,084,916
483,850
4,568,766
At 31 March 2022
4,084,916
-
4,084,916
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Sprint E-Logistics Limited
England
E-Commerce fulfillment and logistics
Ordinary shares
87.50
Sprint Logistics Limited
England
Fulfilment and logistics
Ordinary shares
100.00
BADR Development Company Limited
England
Dormant company
Ordinary shares
100.00
Registered office addresses (all UK unless otherwise indicated):
1
30 Old Market, Wisbech, Cambridgeshire, PE13 1NB
2
30 Old Market, Wisbech, Cambridgeshire, PE13 1NB
3
30 Old Market, Wisbech, Cambridgeshire, PE13 1NB
15
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,582,965
1,485,121
1,300
1,300
Equity instruments measured at cost less impairment
1,483,850
1,000,000
483,850
-
Carrying amount of financial liabilities
Measured at amortised cost
4,261,920
4,130,624
3,358,132
3,236,268
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,566,320
1,484,821
Corporation tax recoverable
164,642
112
112
112
Amounts owed by group undertakings
-
-
1,300
1,300
Other debtors
16,645
300
Prepayments and accrued income
202,838
284,582
60,000
60,000
1,950,445
1,769,815
61,412
61,412
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
518,274
129,825
58,980
44,704
Trade creditors
535,871
804,549
2,224
9,843
Amounts owed to group undertakings
444,815
357,697
Corporation tax payable
31,168
Other taxation and social security
131,172
108,995
-
-
Other creditors
150,657
22,445
87,997
Accruals and deferred income
298,002
354,781
5,000
5,000
1,633,976
1,451,763
599,016
417,244
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
156,300
35,416
156,300
35,416
Other creditors
2,602,816
2,783,608
2,602,816
2,783,608
2,759,116
2,819,024
2,759,116
2,819,024
Included within other creditors is an amount of £1,392,816 (2022: £1,573,608) owed to directors and £1,210,000 (2021: £1,210,000) owed to All Seasons Homes Limited.
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
215,280
80,120
215,280
80,120
Bank overdrafts
459,294
85,121
674,574
165,241
215,280
80,120
Payable within one year
518,274
129,825
58,980
44,704
Payable after one year
156,300
35,416
156,300
35,416
The bank loans are secured by a debenture over all the assets of the company as well as a cross guarantee between Sprint Logistics Limited and Sprint Logistics Holdings Limited. Interest at 4.5% is charged on bank loans.
Included within bank loans and overdrafts is an amount of £370,029 (2022: £85,121) related to an invoice discounting line with HSBC which the company utilises and operates within the approved credit lines.
Details of Guarantees and indemnities:
Guarantee dated 16 May 2017 in favour of HM Revenue and Customs central for £13,000
Guarantee dated 14 September 2017 in favour of International Air Transport for £1,000
Details of security held:
Composite Company Limited multilateral guarantee dated 3 May 2017 given by Sprint Logistics Limited, Sprint E Logistics Limited and Sprint Logistics Holdings Limited.
Debenture including fixed charge over all present freehold and leasehold property; First fixed charge over book debts and other debts, chattels, goodwill and uncalled capital, both present and future; and First floating charge over all assets and undertaking both present and future dated 3 May 2017.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
-
94,697
Tax losses
-
(58,030)
-
36,667
The company has no deferred tax assets or liabilities.
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
20
Deferred taxation
(Continued)
- 32 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
36,667
-
Credit to profit or loss
(36,667)
-
Asset at 31 March 2023
-
-
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
66,756
11,961
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
23
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
2,381,355
2,381,355
2,381,355
2,381,355
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 33 -
24
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
(1,720,029)
(1,919,235)
(1,137,827)
(1,643,703)
Profit/(loss) for the year
(69,197)
373,994
286,585
505,876
Dividends
(30,000)
(20,000)
-
-
Other
-
(154,788)
-
-
At the end of the year
(1,819,226)
(1,720,029)
(851,242)
(1,137,827)
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
275,493
630,422
-
-
Between two and five years
373,352
607,431
-
-
648,845
1,237,853
-
-
26
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
298,205
213,803
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2023
2022
£
£
Group
All Seasons Homes Limited
1,210,000
1,210,000
Other information
Transactions with group companies have not been disclosed in accordance with the exemption available in FRS102.
SPRINT LOGISTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 34 -
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
12,596
383,424
Adjustments for:
Taxation credited
(201,197)
(81,848)
Finance costs
12,056
21,256
Investment income
(25)
(Gain)/loss on disposal of tangible fixed assets
-
52,571
Amortisation and impairment of intangible assets
376,238
376,238
Depreciation and impairment of tangible fixed assets
329,446
284,691
Decrease in provisions
-
(20,000)
Movements in working capital:
(Increase)/decrease in debtors
(16,100)
283,147
Decrease in creditors
(175,069)
(87,200)
Cash generated from operations
337,970
1,212,255
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