Caseware UK (AP4) 2016.0.181 2016.0.181 2017-04-302017-04-30falsefalsehaulage contractorsfalse2016-05-01trueDebt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date. 01857891 2016-05-01 2017-04-30 01857891 2015-05-01 2016-04-30 01857891 2017-04-30 01857891 2016-04-30 01857891 2015-05-01 01857891 1 2016-05-01 2017-04-30 01857891 1 2015-05-01 2016-04-30 01857891 5 2016-05-01 2017-04-30 01857891 d:CompanySecretary1 2016-05-01 2017-04-30 01857891 d:Director1 2016-05-01 2017-04-30 01857891 d:Director2 2016-05-01 2017-04-30 01857891 d:Director3 2016-05-01 2017-04-30 01857891 d:Director3 2017-04-30 01857891 d:Director4 2016-05-01 2017-04-30 01857891 d:Director5 2016-05-01 2017-04-30 01857891 d:Director5 2017-04-30 01857891 d:RegisteredOffice 2016-05-01 2017-04-30 01857891 e:Buildings 2016-05-01 2017-04-30 01857891 e:Buildings 2017-04-30 01857891 e:Buildings 2016-04-30 01857891 e:Buildings e:OwnedOrFreeholdAssets 2016-05-01 2017-04-30 01857891 e:LandBuildings 2017-04-30 01857891 e:PlantMachinery 2016-05-01 2017-04-30 01857891 e:PlantMachinery 2017-04-30 01857891 e:PlantMachinery 2016-04-30 01857891 e:PlantMachinery e:OwnedOrFreeholdAssets 2016-05-01 2017-04-30 01857891 e:MotorVehicles 2016-05-01 2017-04-30 01857891 e:MotorVehicles 2017-04-30 01857891 e:MotorVehicles 2016-04-30 01857891 e:MotorVehicles e:OwnedOrFreeholdAssets 2016-05-01 2017-04-30 01857891 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2016-05-01 2017-04-30 01857891 e:FurnitureFittings 2016-05-01 2017-04-30 01857891 e:FurnitureFittings 2017-04-30 01857891 e:FurnitureFittings 2016-04-30 01857891 e:FurnitureFittings e:OwnedOrFreeholdAssets 2016-05-01 2017-04-30 01857891 e:OwnedOrFreeholdAssets 2016-05-01 2017-04-30 01857891 e:LeasedAssetsHeldAsLessee 2016-05-01 2017-04-30 01857891 e:CurrentFinancialInstruments 2017-04-30 01857891 e:CurrentFinancialInstruments 2016-04-30 01857891 e:Non-currentFinancialInstruments 2017-04-30 01857891 e:Non-currentFinancialInstruments 2016-04-30 01857891 e:CurrentFinancialInstruments e:WithinOneYear 2017-04-30 01857891 e:CurrentFinancialInstruments e:WithinOneYear 2016-04-30 01857891 e:Non-currentFinancialInstruments e:AfterOneYear 2017-04-30 01857891 e:Non-currentFinancialInstruments e:AfterOneYear 2016-04-30 01857891 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2017-04-30 01857891 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2016-04-30 01857891 e:UKTax 2016-05-01 2017-04-30 01857891 e:UKTax 2015-05-01 2016-04-30 01857891 e:ShareCapital 2017-04-30 01857891 e:ShareCapital 2016-04-30 01857891 e:RetainedEarningsAccumulatedLosses 2016-05-01 2017-04-30 01857891 e:RetainedEarningsAccumulatedLosses 2017-04-30 01857891 e:RetainedEarningsAccumulatedLosses 2015-05-01 2016-04-30 01857891 e:RetainedEarningsAccumulatedLosses 2016-04-30 01857891 e:RetainedEarningsAccumulatedLosses 2015-05-01 01857891 e:FinancialAssetsAmortisedCost 2017-04-30 01857891 e:FinancialAssetsAmortisedCost 2016-04-30 01857891 e:FinancialLiabilitiesAmortisedCost 2017-04-30 01857891 e:FinancialLiabilitiesAmortisedCost 2016-04-30 01857891 e:AcceleratedTaxDepreciationDeferredTax 2017-04-30 01857891 e:AcceleratedTaxDepreciationDeferredTax 2016-04-30 01857891 e:RetirementBenefitObligationsDeferredTax 2017-04-30 01857891 e:RetirementBenefitObligationsDeferredTax 2016-04-30 01857891 d:OrdinaryShareClass1 2016-05-01 2017-04-30 01857891 d:OrdinaryShareClass1 2017-04-30 01857891 d:FRS102 2016-05-01 2017-04-30 01857891 d:Audited 2016-05-01 2017-04-30 01857891 d:FullAccounts 2016-05-01 2017-04-30 01857891 d:PrivateLimitedCompanyLtd 2016-05-01 2017-04-30 01857891 e:HirePurchaseContracts e:WithinOneYear 2017-04-30 01857891 e:HirePurchaseContracts e:WithinOneYear 2016-04-30 01857891 e:HirePurchaseContracts e:BetweenOneTwoYears 2017-04-30 xbrli:shares iso4217:GBP xbrli:pure
Registered number: 01857891









ROGER WARNES TRANSPORT LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
































Whiting & Partners
Chartered Accountants & Business Advisers
Norfolk House
Hamlin Way
Kings Lynn
Norfolk
PE30 4NG

 
ROGER WARNES TRANSPORT LTD
 
 
COMPANY INFORMATION


Directors
R G Warnes 
A M Warnes 
A M Wall (resigned 27 February 2017)
N R Alderton 
I Barclay (appointed 17 January 2017)




Company secretary
Mrs A M Warnes



Registered number
01857891



Registered office
Great Dunham Hall
Great Dunham

Norfolk

PE32 2LQ




Independent auditors
Whiting & Partners

Norfolk House

Hamlin Way

Kings Lynn

Norfolk

PE30 4NG





 
ROGER WARNES TRANSPORT LTD
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 5
Independent Auditors' Report
6 - 7
Statement of Income and Retained Earnings
8
Balance Sheet
9 - 10
Statement of Cash Flows
11 - 12
Notes to the Financial Statements
13 - 29


 
ROGER WARNES TRANSPORT LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2017

Introduction
 
The board are pleased to present the company's strategic report for the year ended 30 April 2017.

Business review
 
The directors continue to develop new markets for the business and are pleased with the company's consistent reputation for quality and a reliable service. Turnover remained constant, the company enjoying a slight increase of 0.5% on the prior year. The efficiency of the company reduced in the year however, as indicated by the decrease in gross profit margin from 27% to 24%, the primary factors for this being an increase in fuel and staff costs that could not be passed on to customers.
The directors continue to confirm their commitment to the future of the business by again investing a considerable sum in new asset purchases during the year.
The directors believe that thier continued commitment to providing a modern and efficient fleet means that the company is in strong position going forward.    

Principal risks and uncertainties
 
In the course of normal business, the directors continually assess the significant risks faced and take action to mitigate their potential impact.
The following risks, whilst not intended to be a comprehensive analysis, constitute (in the opinion of the directors) the principal risks and uncertainties currently facing the company.
Economic conditions - the company operates in an industry which can be susceptible to adverse economic conditions through decreased business activity. Although the directors acknowledge this risk, the core business of the company has faired well over recent years despite the recent economic and political events.
Competitive pressures - the company operates in a highly competitive industry and faces competition from a number of sources. This competition may lead to pricing pressure which could result in squeezed profit margins and loss of business. Although the directors acknowledge this risk and monitor industry prices, the company enjoys a significant level of demand which reduces pricing pressures to a certain extent.
Fuel costs - a significant cost to the company, fuel prices and supply levels can be significantly influenced by international, political and economic circumstances resulting in higher prices, increased volatility of prices, supply restrictions, shortages or interruptions which could adversely affect the company's operations. Furthermore, the company may be unable to pass these costs on to customers. The directors continually monitor risk and implement fuel escalators in some contracts to mitigate this risk.
Regulation - the company operates in an industry which is subject to numerous laws and regulations covering a wide range of matters including health & safety, employment (including working time, wages and legislation covering mandatory breaks) and other operating issues, in particular the Goods Vehicles (Licensing of Operators) Act 1995. The directors have implemented operational policies and procedures to ensure compliance with existing laws and regulations, as well as implementing procedures to monitor changes.
EU Referendum - all of the company's turnover is derived from activity within the United Kingdom. The directors are of the view that the recent vote to leave the EU and subsequent invocation of Article 50 will not have a direct impact on the company's activities. However, the outcome of the referendum creates a number of uncertainties that could impact the wider economy, and some sectors, such as construction, could experience a downturn. This in turn could affect the company and the haulage industry generally. Also, the fall in the value of Sterling against the US Dollar could lead to further increases in fuel prices.

Page 1

 
ROGER WARNES TRANSPORT LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017

Financial key performance indicators
 
Given the straight forward nature of the business, the directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business.


This report was approved by the board and signed on its behalf.





................................................
R G Warnes
Director

Date: 10 November 2017

Page 2

 
ROGER WARNES TRANSPORT LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2017

The directors present their report and the financial statements for the year ended 30 April 2017.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £399,314 (2016 - £1,024,936).

Dividends paid in the year amounted to £200,000 (2016: £200,000).
The directors propose the payment of a final dividend of £2,000 per share.

Directors

The directors who served during the year were:

R G Warnes 
A M Warnes 
A M Wall (resigned 27 February 2017)
N R Alderton 
I Barclay (appointed 17 January 2017)

Future developments

There is increased competition in the haulage industry in addition to increasing costs in key areas of the
business. In addition, the full impact of the ongoing negotiations of the country's exit from the European Union
is unknown. Despite this, the directors believe that the company is well placed to meet these challenges,
developing the activities of the company along existing lines while taking into account general economic
conditions.

Page 3

 
ROGER WARNES TRANSPORT LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017

Financial instruments

The company uses financial instruments comprising borrowings, cash and other liquid resources and various
items such as trade debtors, creditors and financial lease arrangements that arise directly from its operations.
The main purpose of these financial instruments is to raise finance for the company's operations.
The main issues arising from these financial instruments are liquidity risk, interest rate risk, credit risk and
currency risk. The directors review and agree policies for management each of these risks and they are
summarised below. The policies have remained unchanged from previous periods.
Liquidity Risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future
developments, the company uses a mixture of long-term and short-term debt finance. Primarily, this is
achieved through bank overdrafts, related party borrowings and hire purchase agreements for capital
expenditure.
Interest Rate Risk
The company finances its operations through a mixture of retained profits, bank and other borrowings. The
company's exposure to interest rate fluctuations is managed by the use of both fixed and variable rate
agreements.
Credit Risk
The company's principal financial assets are cash and trade debtors. In order to manage credit risk, limits are
set on a customer by customer basis.
Currency Risk
The company is exposed to transaction and translation foreign exchange risk. Transaction exposures are
monitored by the directors.

Matters covered in the strategic report

Information previously included in the directors' report in respect of the business review, key performance
indicators and principal risks and uncertainties can now be found in the strategic report as required by section
414c(11) of the Companies Act 2006. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 4

 
ROGER WARNES TRANSPORT LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017


Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsWhiting & Partnerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 
 



................................................
R G Warnes
Director

Date: 10 November 2017

Page 5

 
ROGER WARNES TRANSPORT LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF ROGER WARNES TRANSPORT LTD
 

We have audited the financial statements of Roger Warnes Transport Ltd for the year ended 30 April 2017, set out on pages 8 to 29. The relevant financial reporting framework that has been applied in their preparation is applicable law and the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'.


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 2006Our 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 Auditors' 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.


Respective responsibilities of Directors and Auditors
 

As explained more fully in the Directors' Responsibilities Statement on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Financial Reporting Council's Ethical Standards for Auditors.


Scope of the audit of the financial statements
 

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of whether the accounting policies are appropriate to the Company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Strategic Report and the Directors' Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.


Opinion on financial statements
 

In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 April 2017 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.



Page 6

 
ROGER WARNES TRANSPORT LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF ROGER WARNES TRANSPORT LTD (CONTINUED)


Opinion on other matter prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with those financial statements and such reports have been prepared in accordance with applicable legal requirements.


In the light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.


Matters on which we are required to report by exception
 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
 

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the  financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or
 
we have not received all the information and explanations we require for our audit.
 





Richard Meadows (Senior Statutory Auditor)
  
for and on behalf of
Whiting & Partners
 
Norfolk House
Hamlin Way
Kings Lynn
Norfolk
PE30 4NG

13 November 2017
Page 7

 
ROGER WARNES TRANSPORT LTD
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 APRIL 2017

2017
2016
Note
£
£

  

Turnover
 4 
11,774,930
11,710,432

Cost of sales
  
(8,975,771)
(8,545,095)

Gross profit
  
2,799,159
3,165,337

Administrative expenses
  
(2,270,250)
(1,892,350)

Other operating income
  
-
39,000

Operating profit
 5 
528,909
1,311,987

Interest receivable and similar income
 9 
-
94

Interest payable and expenses
 10 
(25,180)
(15,759)

Profit before tax
  
503,729
1,296,322

Tax on profit
 11 
(104,415)
(271,386)

Profit after tax
  
399,314
1,024,936

  

  

Retained earnings at the beginning of the year
  
6,821,446
5,996,510

  
6,821,446
5,996,510

Profit for the year
  
399,314
1,024,936

Dividends declared and paid
  
(200,000)
(200,000)

Retained earnings at the end of the year
  
7,020,760
6,821,446
There were no recognised gains and losses for 2017 or 2016 other than those included in the statement of income and retained earnings.

The notes on pages 13 to 29 form part of these financial statements.

Page 8

 
ROGER WARNES TRANSPORT LTD
REGISTERED NUMBER: 01857891

BALANCE SHEET
AS AT 30 APRIL 2017

2017
2016
Note
£
£

Fixed assets
  

Tangible assets
 13 
7,173,056
6,946,023

  
7,173,056
6,946,023

Current assets
  

Stocks
 14 
43,987
118,872

Debtors: amounts falling due within one year
 15 
2,205,607
2,084,094

Current asset investments
 16 
20
20

Cash at bank and in hand
 17 
5,411
19,418

  
2,255,025
2,222,404

Creditors: amounts falling due within one year
 18 
(1,992,045)
(1,889,801)

Net current assets
  
 
 
262,980
 
 
332,603

Total assets less current liabilities
  
7,436,036
7,278,626

Creditors: amounts falling due after more than one year
 19 
(269,114)
(224,000)

Provisions for liabilities
  

Deferred tax
 23 
(146,062)
(233,080)

  
 
 
(146,062)
 
 
(233,080)

Net assets
  
7,020,860
6,821,546

Page 9

 
ROGER WARNES TRANSPORT LTD
REGISTERED NUMBER: 01857891
    
BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2017

2017
2016
Note
£
£

Capital and reserves
  

Called up share capital 
 24 
100
100

Profit and loss account
 25 
7,020,760
6,821,446

  
7,020,860
6,821,546


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



................................................
R G Warnes
................................................
A M Warnes
Director
Director


Date: 10 November 2017
The notes on pages 13 to 29 form part of these financial statements.

Page 10

 
ROGER WARNES TRANSPORT LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2017

2017
2016
£
£

Cash flows from operating activities

Profit for the financial year
399,314
1,024,936

Adjustments for:

Depreciation of tangible assets
1,468,729
1,050,809

Loss on disposal of tangible assets
221,061
(28,145)

Interest paid
25,180
15,759

Interest received
-
(94)

Taxation charge
104,415
271,387

Decrease in stocks
74,884
18,615

(Increase)/decrease in debtors
(121,514)
458,663

(Decrease) in creditors
(332,119)
(266,909)

Corporation tax (paid)
(206,641)
(169,850)

Net cash generated from operating activities

1,633,309
2,375,171

Cash flows from investing activities

Purchase of tangible fixed assets
(2,067,442)
(2,508,561)

Sale of tangible fixed assets
150,740
103,803

Interest received
-
94

HP interest paid
(6,232)
-

Net cash from investing activities

(1,922,934)
(2,404,664)

Cash flows from financing activities

Repayment of/new finance leases
472,432
2,855

Dividends paid
(200,000)
(200,000)

Interest paid
(18,948)
(15,759)

Net cash used in financing activities
253,484
(212,904)
Page 11

 
ROGER WARNES TRANSPORT LTD
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017


2017
2016

£
£



Net (decrease) in cash and cash equivalents
(36,141)
(242,397)

Cash and cash equivalents at beginning of year
(430,097)
(187,700)

Cash and cash equivalents at the end of year
(466,238)
(430,097)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,411
19,418

Bank overdrafts
(471,649)
(449,515)

(466,238)
(430,097)


The notes on pages 13 to 29 form part of these financial statements.

Page 12

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

1.


General information

The principal activity of the company is that of haulage contractors.
Roger Warnes Transport Limited is a company incorporated in England and Wales, registration number 01857891. The registered office is Great Dunham Hall, Great Dunham, Norfolk, PE32 2LQ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements are presented in Sterling (£).

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The company meets its day to day working capital requirements through an overdraft facility. The directors expect the company will continue to operate within the agreed facility. After making enquiries the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the financial statements.

Page 13

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 14

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

2.Accounting policies (continued)


2.4
Tangible fixed assets (continued)

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases.


Freehold property
-
4% per annum of cost of building
Plant and machinery
-
20% per annum of net book value
Motor vehicles
-
25% per annum of net book value
Fixtures and fittings
-
15% per annum of net book value

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.

 
2.5

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.6

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.8

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash
Page 15

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

2.Accounting policies (continued)


2.8
Financial instruments (continued)

flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

 
2.9

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.10

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Income and Retained Earnings except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Income and Retained Earnings within 'other operating income'.

Page 16

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

2.Accounting policies (continued)

 
2.11

Finance costs

Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

 
2.13

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.14

Interest income

Interest income is recognised in the Statement of Income and Retained Earnings using the effective interest method.

Page 17

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

2.Accounting policies (continued)

 
2.15

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgments and estimates. The items in the financial statements where these judgments and estimates have been made include:
The company assess the need for provisions for impairment of trade debtors in the financial statements which requires management to use historical experience and other reasonable factors to make these judgments.
The annual depreciation charge for tangible assets is estimated based on their useful economic lives.


4.


Turnover

All turnover arose within the United Kingdom.

Page 18

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

5.


Operating profit

The operating profit is stated after charging:

2017
2016
£
£

Depreciation of tangible fixed assets
1,468,606
1,050,809

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
10,475
12,000

Exchange differences
(2,769)
(13,383)

Defined contribution pension cost
13,459
5,501


6.


Auditors' remuneration

2017
2016
£
£


Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
10,475
12,000




7.


Employees

Staff costs, including directors' remuneration, were as follows:


2017
2016
£
£

Wages and salaries
334,238
460,322

Social security costs
28,987
47,954

Cost of defined contribution scheme
13,459
5,501

376,684
513,777


The average monthly number of employees, including the directors, during the year was as follows:


        2017
        2016
            No.
            No.







Operatives
8
10



Administrative
3
3

11
13

Page 19

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

8.


Directors' remuneration

2017
2016
£
£

Directors' emoluments
94,078
197,376

Company contributions to defined contribution pension schemes
4,198
4,066

98,276
201,442


During the year retirement benefits were accruing to 2 directors (2016 - 2) in respect of defined contribution pension schemes.


9.


Interest receivable

2017
2016
£
£


Other interest receivable
-
94

-
94


10.


Interest payable and similar charges

2017
2016
£
£


Bank interest payable
7,748
4,559

Other loan interest payable
11,200
11,200

Finance leases and hire purchase contracts
6,232
-

25,180
15,759

Page 20

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

11.


Taxation


2017
2016
£
£

Corporation tax


Current tax on profits for the year
191,433
206,519

Adjustments in respect of previous periods
-
1,232


191,433
207,751


Total current tax
191,433
207,751

Deferred tax


Origination and reversal of timing differences
(87,018)
63,635

Total deferred tax
(87,018)
63,635


Taxation on profit on ordinary activities
104,415
271,386

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2016 - higher than) the standard rate of corporation tax in the UK of 19.92% (2016 - 20%). The differences are explained below:

2017
2016
£
£


Profit on ordinary activities before tax
503,728
1,296,322


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19.92% (2016 - 20%)
100,343
259,264

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
163
274

Capital allowances for year in excess of depreciation
90,886
-

Adjustments to tax charge in respect of prior periods
-
1,232

Other timing differences leading to an increase (decrease) in taxation
41
10,616

Deferred tax
(87,018)
-

Total tax charge for the year
104,415
271,386

Page 21

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
 
11.Taxation (continued)


Factors that may affect future tax charges

The corporation tax rate from 1 April 2020 will be 17%.


12.


Dividends

2017
2016
£
£


Dividends paid on equity capital
200,000
200,000

200,000
200,000

On 12 October 2017 the directors propose a dividend of £200,000.

Page 22

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

13.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 May 2016
2,304,514
2,194,625
9,461,577
90,680
14,051,396


Additions
5,800
104,480
1,957,162
-
2,067,442


Disposals
(50,000)
(112,751)
(1,433,877)
(9,555)
(1,606,183)


Transfers between classes
187,618
(187,618)
-
-
-



At 30 April 2017

2,447,932
1,998,736
9,984,862
81,125
14,512,655



Depreciation


At 1 May 2016
447,574
1,408,246
5,182,664
66,888
7,105,372


Charge for the year on owned assets
85,179
135,082
1,105,007
2,853
1,328,121


Charge for the year on financed assets
-
-
140,485
-
140,485


Disposals
(4,000)
(38,758)
(1,186,843)
(4,782)
(1,234,383)


Transfers between classes
105,652
(105,652)
-
-
-



At 30 April 2017

634,405
1,398,918
5,241,313
64,959
7,339,595



Net book value



At 30 April 2017
1,813,527
599,818
4,743,549
16,166
7,173,060




The net book value of land and buildings may be further analysed as follows:


2017
£

Freehold
1,813,528

1,813,528


Freehold land at a cost of £486,539 (2016: £436,539) is not depreciated.
Leasehold property improvements relate to properties occupied by the company rent-free on land owned by R G Warnes - there is no formal lease.

Page 23

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

           13.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2017
2016
£
£



Motor vehicles
1,211,679
456,736

1,211,679
456,736


14.


Stocks

2017
2016
£
£

Raw materials and consumables
43,987
118,872

43,987
118,872


Stock recognised in cost of sales during the year as an expense was  £3,415,744 (2016 - £3,290,315).

An impairment loss of £nil (2016 - £nil) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.



 


15.


Debtors

2017
2016
£
£


Trade debtors
1,979,507
1,741,232

Other debtors
129,763
88,803

Prepayments and accrued income
96,337
254,059

2,205,607
2,084,094


An impairment loss of £4,769 (2016 - £nil) was recognised against trade debtors.

Page 24

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

16.


Current asset investments

2017
2016
£
£

Unlisted investments
20
20

20
20



17.


Cash and cash equivalents

2017
2016
£
£

Cash at bank and in hand
5,411
19,418

Less: bank overdrafts
(471,649)
(449,515)

(466,238)
(430,097)



18.


Creditors: Amounts falling due within one year

2017
2016
£
£

Bank overdrafts
471,649
449,515

Trade creditors
571,204
753,515

Corporation tax
191,433
206,519

Other taxation and social security
24,768
85,576

Obligations under finance lease and hire purchase contracts
491,008
63,690

Other creditors
149,049
143,005

Accruals and deferred income
92,934
187,981

1,992,045
1,889,801


Secured loans
Net obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.

Page 25

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

19.


Creditors: Amounts falling due after more than one year

2017
2016
£
£

Other loans
224,000
224,000

Net obligations under finance leases and hire purchase contracts
45,114
-

269,114
224,000



Secured loans

Net obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.


20.


Loans


Analysis of the maturity of loans is given below:


2017
2016
£
£


Amounts falling due 1-2 years

Other loans
224,000
224,000


224,000
224,000



224,000
224,000


Interest is charged on the loan at 5%, see note 28.


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2017
2016
£
£


Within one year
491,008
63,690

Between 1-2 years
45,114
-

536,122
63,690

Page 26

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

22.


Financial instruments

2017
2016
£
£

Financial assets


Financial assets measured at amortised cost
2,114,681
1,849,453

2,114,681
1,849,453


Financial liabilities


Financial liabilities measured at amortised cost
(1,508,836)
(1,758,016)

(1,508,836)
(1,758,016)


Financial assets measured at amortised cost comprise of trade debtors, other debtors and cash at bank and in hand.


Financial liabilities measured at amortised cost comprise of trade creditors, bank overdrafts, accruals, other creditors and other loans.


23.


Deferred taxation




2017
2016


£

£






At beginning of year
(233,080)
(169,445)


Charged to profit or loss
87,018
(63,635)



At end of year
(146,062)
(233,080)

The provision for deferred taxation is made up as follows:

2017
2016
£
£


Accelerated capital allowances
(145,855)
(233,118)

Pension surplus
(207)
38

(146,062)
(233,080)

Page 27

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

24.


Share capital

2017
2016
£
£
Shares classified as equity

Allotted, called up and fully paid



100 Ordinary shares of £1 each shares of £1 each
100
100


25.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period profits and losses of the company.


26.


Capital commitments


At 30 April 2017 the Company had capital commitments as follows:

2017
2016
£
£


Contracted for but not provided in these financial statements
145,604
736,000

145,604
736,000


27.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £13,459 (2016: £5,501). Contributions totaling £400 (2016: £296) were payable to the fund at the balance sheet date

Page 28

 
ROGER WARNES TRANSPORT LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017

28.


Related party transactions

During the year two directors received dividends of £136,000 combined (2016: £136,000 combined) and their children received dividends of £64,000 combined (2016: £64,000 combined). 
During the year the company invoiced a partnership, controlled by a director and his son, £15,141 (2016: £25,368) for goods and services and at 30 April 2017 the amount owed to the company was £6,822 (2016: £4,106). During the year the partnership invoiced the company £1,362 (2016: £1,362) for goods and services and at 30 April 2017 the amount owed to the partnership was £nil (2016: £1,362).
During the year the company made sales to a company, controlled by a director and his son, of £25,904 (2016: £23,180) and at 30 April 2017 the amount owed by the related company was £7,344 (2016: £2,399). During the year purchases from the related company totaled £1,594 (2016: £34,931) and at 30 April 2017 the amount owed to the related company was £nil (2016: £3,408).
At 30 April 2017 the directors loan accounts were in credit by £87,870 (2016: £85,091).
Throughout the year a director continued to provide a loan to the company. The balance at 30 April 2017 of £224,000 (2016: £224,000). Interest was charged at 5.00% and amounted to £11,200 (2016: £11,200).
At 30 April 2017 the company owed the sons of a director £60,780 (2016: £50,820).
The total key management personnel compensation in the year was £98,276 (2016: £201,442).


29.


Controlling party

The company is controlled by Mr R G and Mrs A M Warnes who with their sons, hold all of the issued share capital.

 
Page 29