Company registration number 01410427 (England and Wales)
CSH TRANSPORT AND FORWARDING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
CSH TRANSPORT AND FORWARDING LIMITED
COMPANY INFORMATION
Directors
Mrs C T Haworth
Mr S Haworth
Secretary
Mrs C T Haworth
Company number
01410427
Registered office
CSH House
Sett End Road North
Shadsworth Business Park
Blackburn
Lancashire
BB1 2NW
Auditor
GBAC Limited
Old Linen Court
83-85 Shambles Street
Barnsley
South Yorkshire
S70 2SB
Bankers
National Westminster Bank PLC
PO Box No 2
St James Street
Accrington
Lancashire
BB5 1NB
CSH TRANSPORT AND FORWARDING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
CSH TRANSPORT AND FORWARDING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -
The directors present the strategic report for the year ended 30 September 2023.
Review of the business
The company income statement for the year is set out on page 7.
Turnover has increased during the year by 2.5% to £9,151,317. The directors consider the profit on ordinary activities before taxation of £633,146 to be satisfactory.
The early part of the year included difficulties caused by the post pandemic recovery, HGV driver shortages and supply pressures on vehicles and trailers. These issues resulted in transportation pricing pressures which were largely accepted in the market.
As the year progressed there were difficulties with inflation and increases in fuel costs resulting from the crisis in Ukraine and Russian oil and gas supplies. Although the company has strong strategies in place to counter these price increases this may lead to lower demand in the coming year.
Given the difficulties in the transportation sector the directors were extremely satisfied with the outcome for the year as a whole and their long established relationships with major customers provides confidence for the future outlook in an uncertain market.
Principal risks and uncertainties
The company's financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors, and HP finance. The main purpose of these instruments is to raise funds and finance the group's operations. The company keeps it's exposure to price risk to a minimum by negotiating HP finance facilities on a regular basis. In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of the bank overdraft.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Key performance indicators
The key financial highlights are as follows:-
| | | | | |
| | | | | |
| | | | | |
Turnover growth (percent) | | | | | |
Gross profit margin (percent) | | | | | |
| | | | | |
Mrs C T Haworth
Director
5 February 2024
CSH TRANSPORT AND FORWARDING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 30 September 2023.
Principal activities
The principal activity of the company continued to be that of haulage contractors.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £78,488. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs C T Haworth
Mr S Haworth
Auditor
The auditor, GBAC Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
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
Mrs C T Haworth
Director
5 February 2024
CSH TRANSPORT AND FORWARDING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CSH TRANSPORT AND FORWARDING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CSH TRANSPORT AND FORWARDING LIMITED
- 4 -
Opinion
We have audited the financial statements of CSH Transport and Forwarding Limited (the 'company') for the year ended 30 September 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the 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 company's affairs as at 30 September 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the 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 auditors' 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.
CSH TRANSPORT AND FORWARDING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CSH TRANSPORT AND FORWARDING LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not 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, 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 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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.
We obtained an understanding of the company and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, application of cumulative audit knowledge and experience of the sector.
We determined the principal laws and regulations relevant to the company in this regard to be those arising from the Companies Act 2006, Local tax laws and regulations, Anti Money Laundering Legislation, Bribery Act 2010, Road Vehicles (Authorised Weight) Regulations 1998 and Road Traffic Act 1988.
We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the company with those laws and regulations. These procedures included, but were not limited to; a review of general ledger transactions and discussions with management.
We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, including the potential for management bias identified in relation to the provisions and estimates and and we addressed this by challenging the assumptions and judgements made by management when auditing that significant accounting estimate.
CSH TRANSPORT AND FORWARDING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CSH TRANSPORT AND FORWARDING LIMITED
- 6 -
As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance-ethics/auditors-responsibilities-for-the-audit. This description forms part of our auditors' report.
Emma Dawson
Senior Statutory Auditor
For and on behalf of GBAC Limited
5 February 2024
Statutory Auditor
Old Linen Court
83-85 Shambles Street
Barnsley
South Yorkshire
S70 2SB
CSH TRANSPORT AND FORWARDING LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 7 -
2023
2022
Notes
£
£
Revenue
3
9,151,317
8,924,629
Cost of sales
(6,725,134)
(6,664,912)
Gross profit
2,426,183
2,259,717
Administrative expenses
(1,712,288)
(1,619,068)
Operating profit
4
713,895
640,649
Investment income
6
1,843
Finance costs
7
(82,592)
(49,832)
Profit before taxation
633,146
590,817
Tax on profit
8
(84,766)
(182,233)
Profit for the financial year
548,380
408,584
The income statement has been prepared on the basis that all operations are continuing operations.
CSH TRANSPORT AND FORWARDING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
548,380
408,584
Other comprehensive income
-
-
Total comprehensive income for the year
548,380
408,584
CSH TRANSPORT AND FORWARDING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2023
30 September 2023
- 9 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
2,912,010
3,001,873
Current assets
Inventories
11
9,018
7,350
Trade and other receivables
12
2,207,802
2,164,512
Cash and cash equivalents
330
2,217,150
2,171,862
Current liabilities
13
(2,415,893)
(2,493,924)
Net current liabilities
(198,743)
(322,062)
Total assets less current liabilities
2,713,267
2,679,811
Non-current liabilities
14
(337,352)
(771,686)
Provisions for liabilities
Deferred tax liability
17
610,605
612,707
(610,605)
(612,707)
Net assets
1,765,310
1,295,418
Equity
Called up share capital
19
100
100
Retained earnings
1,765,210
1,295,318
Total equity
1,765,310
1,295,418
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 5 February 2024 and are signed on its behalf by:
Mr S Haworth
Director
Company registration number 01410427 (England and Wales)
CSH TRANSPORT AND FORWARDING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 October 2021
100
1,386,734
1,386,834
Year ended 30 September 2022:
Profit and total comprehensive income
-
408,584
408,584
Dividends
9
-
(500,000)
(500,000)
Balance at 30 September 2022
100
1,295,318
1,295,418
Year ended 30 September 2023:
Profit and total comprehensive income
-
548,380
548,380
Dividends
9
-
(78,488)
(78,488)
Balance at 30 September 2023
100
1,765,210
1,765,310
CSH TRANSPORT AND FORWARDING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,511,658
1,148,235
Interest paid
(82,592)
(49,832)
Income taxes refunded/(paid)
70,853
(65,134)
Net cash inflow from operating activities
1,499,919
1,033,269
Investing activities
Purchase of property, plant and equipment
(184,467)
(195,940)
Proceeds from disposal of property, plant and equipment
97,805
52,500
Interest received
1,843
Net cash used in investing activities
(84,819)
(143,440)
Financing activities
Repayment of borrowings
(554,671)
(291,447)
Payment of finance leases obligations
(842,826)
(910,738)
Net cash used in financing activities
(1,397,497)
(1,202,185)
Net increase/(decrease) in cash and cash equivalents
17,603
(312,356)
Cash and cash equivalents at beginning of year
(427,623)
(115,267)
Cash and cash equivalents at end of year
(410,020)
(427,623)
Relating to:
Cash at bank and in hand
330
Bank overdrafts included in creditors payable within one year
(410,350)
(427,623)
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
1
Accounting policies
Company information
CSH Transport and Forwarding Limited is a private company limited by shares incorporated in England and Wales. The registered office is CSH House, Sett End Road North, Shadsworth Business Park, Blackburn, Lancashire, BB1 2NW.
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. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of CSH Transport Holdings Limited. These consolidated financial statements are available from its registered office, CSH House, Sett End Road North, Shadsworth Business Park, Blackburn, Lancashire, BB1 2NW.
1.2
Going concern
Atruet 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.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for 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.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Property, plant and equipment
Property, plant and equipment 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:
Land and buildings leasehold
10 years straight line
Plant and machinery
5 and 10 years straight line
Fixtures, fittings & equipment
10 years straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Inventories
Inventories comprise spare parts for vehicles and are stated at cost.
1.7
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.
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are 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 company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
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.
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Revenue
An analysis of the company's revenue is as follows:
2023
2022
£
£
Revenue analysed by class of business
Haulage
8,888,148
8,654,942
Storage
263,169
269,687
9,151,317
8,924,629
2023
2022
£
£
Revenue analysed by geographical market
UK
9,151,317
8,924,629
2023
2022
£
£
Other revenue
Interest income
1,843
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,500
11,000
Depreciation of owned property, plant and equipment
744,086
845,096
Depreciation of property, plant and equipment held under finance leases
7,850
-
Profit on disposal of property, plant and equipment
(8,115)
(52,500)
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Office and management
21
20
Drivers and mechanics
43
42
Total
64
62
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,594,013
2,454,266
Social security costs
270,466
264,261
Pension costs
60,821
59,032
2,925,300
2,777,559
6
Investment income
2023
2022
£
£
Interest income
Other interest income
1,843
7
Finance costs
2023
2022
£
£
Interest on bank overdrafts and loans
19,516
1,162
Interest on finance leases and hire purchase contracts
63,040
47,981
Other interest
36
689
82,592
49,832
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
86,868
(70,853)
Adjustments in respect of prior periods
(27,048)
Total current tax
86,868
(97,901)
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
8
Taxation
2023
2022
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
(2,102)
280,134
Total tax charge
84,766
182,233
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
633,146
590,817
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
158,287
112,255
Tax effect of expenses that are not deductible in determining taxable profit
(50)
4,348
Tax effect of utilisation of tax losses not previously recognised
(38,060)
Unutilised tax losses carried forward
28,926
Adjustments in respect of prior years
(27,048)
Effect of change in corporation tax rate
(11,809)
Permanent capital allowances in excess of depreciation
(19,471)
(206,407)
Deferred taxation
(2,102)
280,134
Profit on disposal of fixed assets
(2,029)
(9,975)
Taxation charge for the year
84,766
182,233
9
Dividends
2023
2022
£
£
Interim paid
78,488
500,000
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
10
Property, plant and equipment
Land and buildings leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2022
191,267
406,231
87,576
7,194,821
7,879,895
Additions
22,758
2,549
726,456
751,763
Disposals
(601,724)
(601,724)
Transfers
9,251
(9,251)
At 30 September 2023
214,025
415,482
90,125
7,310,302
8,029,934
Depreciation and impairment
At 1 October 2022
49,340
167,654
46,854
4,614,174
4,878,022
Depreciation charged in the year
17,804
36,407
5,934
691,791
751,936
Eliminated in respect of disposals
(512,034)
(512,034)
Transfers
9,251
(9,251)
At 30 September 2023
67,144
213,312
52,788
4,784,680
5,117,924
Carrying amount
At 30 September 2023
146,881
202,170
37,337
2,525,622
2,912,010
At 30 September 2022
141,927
238,577
40,722
2,580,647
3,001,873
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and machinery
40,678
48,529
Motor vehicles
1,720,449
2,286,750
1,761,127
2,335,279
11
Inventories
2023
2022
£
£
Raw materials and consumables
9,018
7,350
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
12
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
1,822,803
1,657,596
Corporation tax recoverable
70,853
Other receivables
95,730
218,689
Prepayments and accrued income
289,269
217,374
2,207,802
2,164,512
13
Current liabilities
2023
2022
Notes
£
£
Bank loans and overdrafts
15
410,350
427,623
Obligations under finance leases
16
951,092
792,288
Trade payables
743,675
625,933
Amounts owed to group undertakings
23,200
473,889
Corporation tax
86,868
Other taxation and social security
62,311
66,496
Other payables
71,274
93,810
Accruals and deferred income
67,123
13,885
2,415,893
2,493,924
The bank overdraft is secured by a floating charge over the assets of the company.
The hire purchase liabilities, included within other payables, are secured over the assets to which they relate.
14
Non-current liabilities
2023
2022
Notes
£
£
Obligations under finance leases
16
337,352
771,686
The hire purchase liabilities are secured over the assets to which they relate.
15
Borrowings
2023
2022
£
£
Bank overdrafts
410,350
427,623
Payable within one year
410,350
427,623
The bank overdraft is secured by a floating charge over the assets of the company.
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
16
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
951,092
792,288
In two to five years
337,352
771,686
1,288,444
1,563,974
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
610,605
612,707
2023
Movements in the year:
£
Liability at 1 October 2022
612,707
Credit to profit or loss
(2,102)
Liability at 30 September 2023
610,605
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,821
59,032
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 23 -
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
20
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of property, plant and equipment
664,662
378,583
At the year end the company had committed to purchase 6 vehicles and 1 trailer. At the date of signing the financial statements, 2 of the vehicles and the trailer were still to be received.
21
Related party transactions
Transactions with related parties
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Key management personnel
-
25,494
2023
2022
Amounts due from related parties
£
£
Other related parties
-
82,830
22
Directors' transactions
The company trades from a property that was owned by the directors for part of the previous year, this property is now owned by the parent company, CSH Transport Holdings Limited. Rent was paid to the directors, amounting to £0 (2022 £27,000).
23
Ultimate controlling party
The company is a wholly owned subsidiary of CSH Transport Holdings Limited, a company whose registered office address is CSH House, Sett End Road North, Shadsworth Business Park, Blackburn BB1 2NW. The ultimate controlling party is Mr S Haworth, by way of his holding of 60% of the share capital in CSH Transport Holdings Limited.
CSH TRANSPORT AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
24
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
548,380
408,584
Adjustments for:
Taxation charged
84,766
182,233
Finance costs
82,592
49,832
Investment income
(1,843)
Gain on disposal of property, plant and equipment
(8,115)
(52,500)
Depreciation and impairment of property, plant and equipment
751,936
845,096
Movements in working capital:
Increase in inventories
(1,669)
Increase in trade and other receivables
(114,143)
(284,915)
Increase/(decrease) in trade and other payables
169,754
(95)
Cash generated from operations
1,511,658
1,148,235
25
Analysis of changes in net debt
1 October 2022
Cash flows
New finance leases
Other non-cash changes
30 September 2023
£
£
£
£
£
Cash at bank and in hand
-
330
-
-
330
Bank overdrafts
(427,623)
17,273
-
-
(410,350)
(427,623)
17,603
-
(410,020)
Borrowings excluding overdrafts
(499,383)
554,671
-
(78,488)
(23,200)
Obligations under finance leases
(1,563,974)
842,826
(567,296)
-
(1,288,444)
(2,490,980)
1,415,100
(567,296)
(78,488)
(1,721,664)
2023-09-302022-10-01falseCCH SoftwareCCH Accounts Production 2023.300Mr S HaworthMr S HaworthMrs C T Haworthfalse014104272022-10-012023-09-3001410427bus:CompanySecretaryDirector12022-10-012023-09-3001410427bus:Director12022-10-012023-09-3001410427bus:CompanySecretary12022-10-012023-09-3001410427bus:Director22022-10-012023-09-3001410427bus:RegisteredOffice2022-10-012023-09-3001410427bus:Agent12022-10-012023-09-30014104272023-09-30014104272021-10-012022-09-3001410427core:RetainedEarningsAccumulatedLosses2021-10-012022-09-3001410427core:RetainedEarningsAccumulatedLosses2022-10-012023-09-30014104272022-09-3001410427core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-3001410427core:PlantMachinery2023-09-3001410427core:FurnitureFittings2023-09-3001410427core:MotorVehicles2023-09-3001410427core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-09-3001410427core:PlantMachinery2022-09-3001410427core:FurnitureFittings2022-09-3001410427core:MotorVehicles2022-09-3001410427core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-3001410427core:CurrentFinancialInstrumentscore:WithinOneYear2022-09-3001410427core:Non-currentFinancialInstrumentscore:AfterOneYear2023-09-3001410427core:Non-currentFinancialInstrumentscore:AfterOneYear2022-09-3001410427core:CurrentFinancialInstruments2023-09-3001410427core:CurrentFinancialInstruments2022-09-3001410427core:ShareCapital2023-09-3001410427core:ShareCapital2022-09-3001410427core:RetainedEarningsAccumulatedLosses2023-09-3001410427core:RetainedEarningsAccumulatedLosses2022-09-3001410427core:ShareCapital2021-09-3001410427core:RetainedEarningsAccumulatedLosses2021-09-30014104272022-09-30014104272021-09-3001410427core:WithinOneYear2023-09-3001410427core:WithinOneYear2022-09-3001410427core:LandBuildingscore:LongLeaseholdAssets2022-10-012023-09-3001410427core:PlantMachinery2022-10-012023-09-3001410427core:FurnitureFittings2022-10-012023-09-3001410427core:MotorVehicles2022-10-012023-09-3001410427core:ContinuingOperations2022-10-012023-09-3001410427core:ContinuingOperations2021-10-012022-09-300141042712022-10-012023-09-300141042712021-10-012022-09-3001410427core:UKTax2022-10-012023-09-3001410427core:UKTax2021-10-012022-09-300141042722022-10-012023-09-300141042722021-10-012022-09-3001410427core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-09-3001410427core:PlantMachinery2022-09-3001410427core:FurnitureFittings2022-09-3001410427core:MotorVehicles2022-09-3001410427core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-10-012023-09-3001410427core:Non-currentFinancialInstruments2023-09-3001410427core:Non-currentFinancialInstruments2022-09-3001410427core:BetweenTwoFiveYears2023-09-3001410427core:BetweenTwoFiveYears2022-09-3001410427bus:OrdinaryShareClass12021-10-012022-09-3001410427bus:PrivateLimitedCompanyLtd2022-10-012023-09-3001410427bus:FRS1022022-10-012023-09-3001410427bus:Audited2022-10-012023-09-3001410427bus:FullAccounts2022-10-012023-09-30xbrli:purexbrli:sharesiso4217:GBP