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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
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ROGER WARNES TRANSPORT LTD
COMPANY INFORMATION
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A M Wall (resigned 27 February 2017)
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I Barclay (appointed 17 January 2017)
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ROGER WARNES TRANSPORT LTD
CONTENTS
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Independent Auditors' Report
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Statement of Income and Retained Earnings
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Notes to the Financial Statements
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ROGER WARNES TRANSPORT LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2017
The board are pleased to present the company's strategic report for the year ended 30 April 2017.
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
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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
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ROGER WARNES TRANSPORT LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
Financial key performance indicators
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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.
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R G Warnes
Director
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Page 2
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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
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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 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.
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.
The directors who served during the year were:
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A M Wall (resigned 27 February 2017)
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I Barclay (appointed 17 January 2017)
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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
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ROGER WARNES TRANSPORT LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
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
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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
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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
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ROGER WARNES TRANSPORT LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
The auditors, Whiting & Partners, will 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.
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R G Warnes
Director
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Page 5
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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 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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
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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
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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
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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.
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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
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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
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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
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ROGER WARNES TRANSPORT LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 APRIL 2017
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Interest receivable and similar income
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Interest payable and expenses
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Retained earnings at the beginning of the year
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Dividends declared and paid
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Retained earnings at the end of the year
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There were no recognised gains and losses for 2017 or 2016 other than those included in the statement of income and retained earnings.
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The notes on pages 13 to 29 form part of these financial statements.
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Page 8
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ROGER WARNES TRANSPORT LTD
REGISTERED NUMBER: 01857891
BALANCE SHEET
AS AT 30 APRIL 2017
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Debtors: amounts falling due within one year
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Current asset investments
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Page 9
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ROGER WARNES TRANSPORT LTD
REGISTERED NUMBER: 01857891
BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2017
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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R G Warnes
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A M Warnes
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The notes on pages 13 to 29 form part of these financial statements.
Page 10
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ROGER WARNES TRANSPORT LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2017
Cash flows from operating activities
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Profit for the financial year
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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(Increase)/decrease in debtors
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Net cash from investing activities
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Cash flows from financing activities
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Repayment of/new finance leases
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Net cash used in financing activities
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Page 11
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ROGER WARNES TRANSPORT LTD
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
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Net (decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 13 to 29 form part of these financial statements.
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Page 12
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
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
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Basis of preparation of financial statements
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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:
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
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
2.Accounting policies (continued)
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.
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
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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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.
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4% per annum of cost of building
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20% per annum of net book value
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25% per annum of net book value
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15% per annum of net book value
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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.
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.
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.
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Cash and cash equivalents
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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.
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
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
2.Accounting policies (continued)
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Financial instruments (continued)
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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.
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.
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Foreign currency translation
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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
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
2.Accounting policies (continued)
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.
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.
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.
Interest income is recognised in the Statement of Income and Retained Earnings using the effective interest method.
Page 17
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
2.Accounting policies (continued)
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Current and deferred taxation
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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.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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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.
All turnover arose within the United Kingdom.
Page 18
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
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The operating profit is stated after charging:
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Depreciation of tangible fixed assets
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Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
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Defined contribution pension cost
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Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Page 19
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 2 directors (2016 - 2) in respect of defined contribution pension schemes.
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Other interest receivable
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Interest payable and similar charges
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Other loan interest payable
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Finance leases and hire purchase contracts
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Page 20
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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Factors affecting tax charge for the year
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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:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19.92% (2016 - 20%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Capital allowances for year in excess of depreciation
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Adjustments to tax charge in respect of prior periods
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Other timing differences leading to an increase (decrease) in taxation
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Total tax charge for the year
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Page 21
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
11.Taxation (continued)
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Factors that may affect future tax charges
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The corporation tax rate from 1 April 2020 will be 17%.
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Dividends paid on equity capital
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On 12 October 2017 the directors propose a dividend of £200,000.
Page 22
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
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Transfers between classes
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Charge for the year on owned assets
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Charge for the year on financed assets
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Transfers between classes
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The net book value of land and buildings may be further analysed as follows:
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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.
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Page 23
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
13.Tangible fixed assets (continued)
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Raw materials and consumables
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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.
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Prepayments and accrued income
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An impairment loss of £4,769 (2016 - £nil) was recognised against trade debtors.
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Page 24
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
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Current asset investments
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Secured loans
Net obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
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Page 25
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Secured loans
Net obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
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Analysis of the maturity of loans is given below:
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Amounts falling due 1-2 years
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Interest is charged on the loan at 5%, see note 28.
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Page 26
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
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Financial assets measured at amortised cost
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Financial liabilities measured at amortised cost
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Financial assets measured at amortised cost comprise of trade debtors, other debtors and cash at bank and in hand.
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Financial liabilities measured at amortised cost comprise of trade creditors, bank overdrafts, accruals, other creditors and other loans.
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Page 27
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
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Shares classified as equity
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Allotted, called up and fully paid
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100 Ordinary shares of £1 each shares of £1 each
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Profit and loss account
The profit and loss account includes all current and prior period profits and losses of the company.
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At 30 April 2017 the Company had capital commitments as follows:
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Contracted for but not provided in these financial statements
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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
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ROGER WARNES TRANSPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
|
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Related party transactions
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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).
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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
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