Expect Distribution Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02169364 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2018

FOR

EXPECT DISTRIBUTION LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

RW Rushworth

Mrs E Rushworth

NW Rushworth

S P Wood

A D Taylor

SECRETARY:

RW Rushworth

REGISTERED OFFICE:

Premier Point

Premier Gate

Staithgate Lane

Bradford

West Yorkshire

BD6 1DW

REGISTERED NUMBER:

02169364 (England and Wales)

SENIOR STATUTORY AUDITOR:

A Brosnan

AUDITORS:

Brosnans

Chartered Accountants

and Statutory Auditors

Birkby House

Bailiff Bridge

Brighouse

West Yorkshire

HD6 4JJ

The directors present their strategic report for the year ended 30 November 2018.

REVIEW OF BUSINESS

In the financial year under review, the Company once again achieved solid organic growth across all

divisions. Group income increasing by 16.97% and net profit before taxation increasing by 14.12%, for a

return on income of 5.06%.

Our distribution operations increased by 14.12% to £25.261m, assisted by further wins in the contract

division,which now numbers 10 signed contracts accounting for 28.5% of distribution income.The

warehousing division experienced year on year growth of 20.22% and now accounts for 10.87% of group

turnover, from three operating sites.

Once again driver recruitment, and retention, remained challenging but the apprenticeship scheme,and the

opportunities provided to existing staff within the warehousing and small van sector to become LGV drivers

through Expects training scheme, has assisted with recruitment.Investment in staff training across all

divisions, has also benefited and assisted in the growth of Expect in the past year, and the Directors are

appreciative of the dedication, hard work and commitment that all employees have given to the Company

during this period.

The Directors are confident that 2019 will again see further growth and increased profit, across all divisions,

particularly within the contract and warehousing divisions where three new contracts have already been

signed, and become operational, and several existing long term contracts renewed.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial risk management objectives and policies;

The Company operates mainly in the UK and seeks to mitigate exposure to all forms of risk both internal

and external.

Customer and Suppliers;

The Company is not wholly dependant on any one main customer or supplier.

Credit Risk;

The Company seeks to reduce risk by carrying out credit checks on new customers and operating strict

credit control on its debtor ledger.

Laws and Regulations;

The Company complies with all road traffic, health and safety and employment law and takes its

responsibilities very seriously.

Employees;

The average number of employees during the year was 262.

The Company continues to be an equal opportunities employer. In employment related decisions, the

company complies with anti discrimination requirements concerning matters of race, colour, national

origin, marital status, sexual orientation, religious belief, age and physical or mental ability. Disabled people

are given full and equal consideration for employment and their development is assisted and encouraged.

Employees are consulted about changes which may affect them through the Company's appointed officers.

ON BEHALF OF THE BOARD:

RW Rushworth - Director

29 March 2019

The directors present their report with the financial statements of the company for the year ended 30 November 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of haulage and transport

contractor,being particularly involved in pallet delivery and warehousing.

DIVIDENDS

Interim dividends per share were paid as follows:

43.35

- 17 December 2017

40.00

- 31 July 2018

43.35

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 November 2018 will be £ 500,100 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2017 to the

date of this report.

RW Rushworth

Mrs E Rushworth

NW Rushworth

S P Wood

A D Taylor

EMPLOYMENT POLICIES AND EMPLOYEE INVOLVEMENT

Matters pertaining to employees are addressed in the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the

financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law

the directors have elected to prepare the financial statements in accordance with United Kingdom

Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under

company law the directors must not approve the financial statements unless they are satisfied that they

give a true and fair view of the state of affairs of the company and of the profit or loss of the company for

that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and

explain the company's transactions and disclose with reasonable accuracy at any time the financial position

of the company and enable them to ensure that the financial statements comply with the Companies Act

2006. They are also responsible for safeguarding the assets of the company and hence for taking

reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the

steps that he or she ought to have taken as a director in order to make himself or herself aware of any

relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Brosnans, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

RW Rushworth - Director

29 March 2019

Opinion

We have audited the financial statements of Expect Distribution Limited (the 'company') for the year ended

30 November 2018 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet,

Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the

Financial Statements, including a summary of significant accounting policies. The financial reporting

framework that has been applied in their preparation is applicable law and United Kingdom Accounting

Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the

UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 November 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the Auditors'

responsibilities for the audit of the financial statements section of our report. We are independent of the

company in accordance with the ethical requirements that are relevant to our audit of the financial

statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical

responsibilities in accordance with these requirements. We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us

to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information

in the Strategic Report and the Report of the Directors, but does not include the financial statements and

our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent

otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information

and, in doing so, consider whether the other information is materially inconsistent with the financial

statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we

identify such material inconsistencies or apparent material misstatements, we are required to determine

whether there is a material misstatement in the financial statements or a material misstatement of the

other information. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact. We have nothing to report in

this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the

course of the audit, we have not identified material misstatements in the Strategic Report or the Report of

the Directors.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, the

directors are responsible for the preparation of the financial statements and for being satisfied that they

give a true and fair view, and for such internal control as the directors determine necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or

error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the company or to cease

operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that

includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms

part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of

the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's

members those matters we are required to state to them in a Report of the Auditors and for no other

purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other

than the company and the company's members as a body, for our audit work, for this report, or for the

opinions we have formed.

A Brosnan (Senior Statutory Auditor)

for and on behalf of Brosnans

Chartered Accountants

and Statutory Auditors

Birkby House

Bailiff Bridge

Brighouse

West Yorkshire

HD6 4JJ

29 March 2019

TURNOVER

3

28,352,830

24,238,759

Cost of sales

22,101,309

18,761,107

GROSS PROFIT

6,251,521

5,477,652

Administrative expenses

4,631,656

4,152,000

1,619,865

1,325,652

Other operating income

-

130,000

OPERATING PROFIT

5

1,619,865

1,455,652

Income from fixed asset investments

6,000

8,600

1,625,865

1,464,252

Interest payable and similar expenses

6

190,939

213,966

PROFIT BEFORE TAXATION

1,434,926

1,250,286

Tax on profit

7

323,739

279,162

PROFIT FOR THE FINANCIAL YEAR

1,111,187

971,124

PROFIT FOR THE YEAR

1,111,187

971,124

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,111,187

971,124

FIXED ASSETS

Tangible assets

9

8,945,036

9,131,888

Investments

10

56,250

56,250

9,001,286

9,188,138

CURRENT ASSETS

Stocks

11

22,345

11,560

Debtors

12

5,676,412

5,536,234

Cash at bank and in hand

456,588

161,367

6,155,345

5,709,161

CREDITORS

Amounts falling due within one year

13

5,908,459

5,703,585

NET CURRENT ASSETS

246,886

5,576

TOTAL ASSETS LESS CURRENT LIABILITIES

9,248,172

9,193,714

CREDITORS

Amounts falling due after more than one year

14

(5,103,059

)

(5,665,200

)

PROVISIONS FOR LIABILITIES

18

(143,744

)

(138,232

)

NET ASSETS

4,001,369

3,390,282

CAPITAL AND RESERVES

Called up share capital

19

6,000

6,000

Retained earnings

20

3,995,369

3,384,282

SHAREHOLDERS' FUNDS

4,001,369

3,390,282

The financial statements were approved by the Board of Directors on 29 March 2019 and were signed on its behalf by:

RW Rushworth - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2016

6,000

2,653,158

2,659,158

Changes in equity

Dividends

-

(240,000

)

(240,000

)

Total comprehensive income

-

971,124

971,124

Balance at 30 November 2017

6,000

3,384,282

3,390,282

Changes in equity

Dividends

-

(500,100

)

(500,100

)

Total comprehensive income

-

1,111,187

1,111,187

Balance at 30 November 2018

6,000

3,995,369

4,001,369

Cash flows from operating activities

Cash generated from operations

1

1,799,203

2,221,545

Interest paid

(186,954

)

(213,966

)

Interest element of hire purchase payments paid

(3,985

)

-

Tax paid

(247,185

)

(178,516

)

Net cash from operating activities

1,361,079

1,829,063

Cash flows from investing activities

Purchase of tangible fixed assets

(156,573

)

(469,046

)

Dividends received

6,000

8,600

Net cash from investing activities

(150,573

)

(460,446

)

Cash flows from financing activities

Hire Purchase Finance

127,100

-

Loan repayments in year

(643,010

)

(621,527

)

HP repayments in year

(13,675

)

-

Amount introduced by directors

500,100

240,000

Amount withdrawn by directors

(385,700

)

(369,500

)

Equity dividends paid

(500,100

)

(240,000

)

Net cash from financing activities

(915,285

)

(991,027

)

Increase in cash and cash equivalents

295,221

377,590

Cash and cash equivalents at beginning of year

2

161,367

(216,223

)

Cash and cash equivalents at end of year

2

456,588

161,367

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

Profit before taxation

1,434,926

1,250,286

Depreciation charges

343,425

295,211

Finance costs

190,939

213,966

Finance income

(6,000

)

(8,600

)

1,963,290

1,750,863

Increase in stocks

(10,785

)

(789

)

Increase in trade and other debtors

(141,683

)

(1,196,023

)

(Decrease)/increase in trade and other creditors

(11,619

)

1,667,494

Cash generated from operations

1,799,203

2,221,545

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in

respect of these Balance Sheet amounts:

Year ended 30 November 2018

30.11.18

1.12.17

£

£

Cash and cash equivalents

456,588

161,367

Year ended 30 November 2017

30.11.17

1.12.16

£

£

Cash and cash equivalents

161,367

3,177

Bank overdrafts

-

(219,400

)

161,367

(216,223

)

1.	STATUTORY INFORMATION

Expect Distribution Limited is a private company, limited by shares , registered in England and Wales.

The company's registered number and registered office address can be found on the Company

Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The significant accounting policies applied in the preparation of these financial statements are set

out below. These policies have been consistently applied to all years presented unless otherwise

stated.

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

TURNOVER

Turnover is measured at the fair value of the consideration received or receivable, excluding

discounts, rebates, value added tax and other sales taxes.

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold land & building

-

in accordance with the property

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation

and accumulated impairment losses. Cost includes costs directly attributable to making the asset

capable of operating as intended.

STOCKS

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income

Statement, except to the extent that it relates to items recognised in other comprehensive income

or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed

at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that

are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is

probable that they will be recovered against the reversal of deferred tax liabilities or other future

taxable profits.

FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling

at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate

of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving

at the operating result.

HIRE PURCHASE AND LEASING COMMITMENTS

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those

held under finance leases are depreciated over their estimated useful lives or the lease term,

whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the

period of the lease.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2018

2017

£

£

UK Sales

27,877,902

23,900,915

European Sales

474,928

337,844

28,352,830

24,238,759

4.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

6,900.115

5,811,012

Social security costs

633,686

527,487

Pension cost

263,541

190,822

7,797,342

6,529,321

The average number of employees in the year were as follows;

2018

2017

Directors

4

4

Warehouse and storage

75

68

Drivers

125

122

Office and admin

58

55

262

249

2018

2017

£

£

Directors' remuneration

379,073

373,156

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2