A. Hingley Transport (Brierley Hill) Ltd - Limited company accounts 18.2

REGISTERED NUMBER: 01073358 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2018

FOR

A. HINGLEY TRANSPORT (BRIERLEY HILL) LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Income and Retained Earnings

8

Balance Sheet

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

A Hingley

R Hingley

SECRETARY:

A J Parkes

REGISTERED OFFICE:

60 Lyde Green

Halesowen

West Midlands

B63 2PQ

REGISTERED NUMBER:

01073358 (England and Wales)

AUDITORS:

Saxon & Co.

Statutory Auditors

Chartered Accountants

Kings Chambers

Queens Cross

High Street

Dudley

West Midlands

DY1 1QT

PRINCIPAL ACTIVITIES

The principal activities of the company for the year under review were those of haulage contractors and trailer

manufacturers.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of the business during the

year and its position at the year end.

The company's strategy continues to be the delivery of customers products in a timely and safe manner along with

producing high quality engineered trailers and repairs.

The directors consider that both turnover and gross margins are key performance indicators of the business. This year

turnover has reduced by 2.8% to £10,939,581, with the gross profit margin decreasing from 24.4% to 23.4%. The

reduction in turnover mainly comes from our transport operation where vehicle demand from our main contract business

has fallen due to lower demand from their customers. Driver shortages remains a continuing challenge for us, and the

industry in general in regard to recruitment, and we have again supplemented this resource with direct agency drivers

and subcontractors albeit at an additional cost which has impacted our margin. There has also been a steady increase in

the cost of fuel during the year which we do seek to recover through our contractual customer base but this is not always

possible. In the later part of the year we embarked on a fleet renewal programme to change some 40% of our fleet which

has allowed us to reduce our leasing costs. This should again support our margin during 2019. Management are

constantly looking at efficiencies in all areas of the business.

The profit before tax has increased by £69,506. This was helped by additional rental income of £31,942 and new

transport business gained in the latter part of the year.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a competitive market place and faces ongoing commercial pressures on prices which affect

turnover and gross margins. The UK steel market continues to be a competitive market albeit with an element of

uncertainty. However, volumes have remained good and we continue to explore new markets and customers to

consolidate and grow the business.

Fuel prices and labour availability remain a significant risk to the business. Any spikes or prolonged increase in the fuel

prices will affect our performance very quickly. We offset this risk by having fuel price escalators in place with many of

our customers. To mitigate the labour risk, we have a flexible workforce along with contracts with agencies to supply

drivers when demand outstrips supply.

The transport and trailer manufacturing businesses are subject to many legislative controls imposed by governments.

We have rigorous procedures and policies in place for fleet maintenance, health and safety adherence and continual

development for our staff.

CREDIT RISK

Credit risk refers to the risk that a debtor will default on its contractual obligation to settle its debt. Management have a

credit policy in place that constantly reviews debtors and their limits based on historic trends and credit checks along

with an insurance policy on key customers should they default on their debt.

CASH FLOW AND LIQUIDITY RISK

Liquidity risk is the risk that the company may not be able to meet its financial obligations as they fall due. The

company ensures that there are sufficient levels of committed facilities, cash and cash equivalents to ensure that the

company is, at all times, able to meet its financial commitments. Short term lending facilities are in place from the

company bankers in the form of a discounting facility. Longer term capital acquisitions are financed by long term hire

purchase and bank loan agreements. Liquidity risk is managed by continuous monitoring of forecast and actual cash

flows.

The directors are pleased with these results. Having had some success with new accounts in the later months of the year,

these should at least provide us with a platform to retain turnover levels and potential growth in 2019.

We also feel that 2019 will be a challenging year once again with cost pressures being a major influence to our

profitability. However we have had some success with new business opportunities at improved pricing, which we are

hopeful should provide both customer diversification and stabilize revenues and profitability for the future.

ON BEHALF OF THE BOARD:

A Hingley - Director

28 August 2019

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

DIVIDENDS

An interim dividend of £1,460 per share was paid on 30 November 2018. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 November 2018 will be £ 113,880 .

DIRECTORS

The directors during the year under review were:

A Hingley

R Hingley

The beneficial interests of the directors holding office on 30 November 2018 in the issued share capital of the company

were as follows:

30.11.18

1.12.17

Ordinary £1 shares

A Hingley

34

34

R Hingley

33

33

DONATIONS

During the year the company made charitable donations amounting to £476 (2017 - £1,457).

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 ought to have taken

as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

A Hingley - Director

28 August 2019

Opinion

We have audited the financial statements of A. Hingley Transport (Brierley Hill) Ltd (the 'company') for the year ended

30 November 2018 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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.

Opinions 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 page four, 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.

Anthony Saxon (Senior Statutory Auditor)

for and on behalf of Saxon & Co.

Statutory Auditors

Chartered Accountants

Kings Chambers

Queens Cross

High Street

Dudley

West Midlands

DY1 1QT

28 August 2019

TURNOVER

3

10,939,581

11,256,844

Cost of sales

8,381,849

8,513,320

GROSS PROFIT

2,557,732

2,743,524

Administrative expenses

2,484,094

2,705,312

73,638

38,212

Other operating income

4

177,864

145,922

OPERATING PROFIT

7

251,502

184,134

Interest payable and similar expenses

8

41,922

44,060

PROFIT BEFORE TAXATION

209,580

140,074

Tax on profit

9

42,932

20,431

PROFIT FOR THE FINANCIAL YEAR

166,648

119,643

Retained earnings at beginning of year

1,706,899

1,637,956

Dividends

10

(113,880

)

(50,700

)

RETAINED EARNINGS AT END OF YEAR

1,759,667

1,706,899

FIXED ASSETS

Tangible assets

11

2,093,870

2,138,171

Investment property

12

234,265

234,265

2,328,135

2,372,436

CURRENT ASSETS

Stocks

13

115,172

122,078

Debtors

14

2,560,497

2,574,334

Cash at bank and in hand

174,219

245,843

2,849,888

2,942,255

CREDITORS

Amounts falling due within one year

15

2,695,413

2,797,323

NET CURRENT ASSETS

154,475

144,932

TOTAL ASSETS LESS CURRENT LIABILITIES

2,482,610

2,517,368

CREDITORS

Amounts falling due after more than one year

16

(536,265

)

(615,448

)

PROVISIONS FOR LIABILITIES

20

(186,578

)

(194,921

)

NET ASSETS

1,759,767

1,706,999

CAPITAL AND RESERVES

Called up share capital

21

78

78

Capital redemption reserve

22

22

22

Retained earnings

22

1,759,667

1,706,899

SHAREHOLDERS' FUNDS

1,759,767

1,706,999

The financial statements were approved by the Board of Directors on 28 August 2019 and were signed on its behalf by:

A Hingley - Director

Cash flows from operating activities

Cash generated from operations

1

495,968

472,256

Interest paid

(14,649

)

(11,491

)

Interest element of hire purchase payments paid

(27,273

)

(32,569

)

Tax paid

(36,814

)

(34,843

)

Net cash from operating activities

417,232

393,353

Cash flows from investing activities

Purchase of tangible fixed assets

(507,513

)

(758,331

)

Sale of tangible fixed assets

105,234

89,500

Net cash from investing activities

(402,279

)

(668,831

)

Cash flows from financing activities

New hire purchase contracts in year

429,151

572,001

Hire purchase repayments

(570,014

)

(546,877

)

Bank loan repayments

(23,242

)

(22,385

)

Amount introduced by directors

248,098

43,550

Amount withdrawn by directors

(176,211

)

(50,115

)

Invoice discounting facility movement

119,521

382,173

Equity dividends paid

(113,880

)

(50,700

)

Net cash from financing activities

(86,577

)

327,647

(Decrease)/increase in cash and cash equivalents

(71,624

)

52,169

Cash and cash equivalents at beginning of year

2

245,843

193,674

Cash and cash equivalents at end of year

2

174,219

245,843

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

2018

2017

£

£

Profit before taxation

209,580

140,074

Depreciation charges

458,334

423,821

(Profit)/loss on disposal of fixed assets

(11,754

)

8,091

Finance costs

41,922

44,060

698,082

616,046

Decrease/(increase) in stocks

6,906

(2,747

)

Decrease in trade and other debtors

13,837

91,722

Decrease in trade and other creditors

(222,857

)

(232,765

)

Cash generated from operations

495,968

472,256

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

174,219

245,843

Year ended 30 November 2017

30.11.17

1.12.16

£

£

Cash and cash equivalents

245,843

193,674

1.	STATUTORY INFORMATION

A. Hingley Transport (Brierley Hill) Ltd 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 (£).

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.

Significant judgements and estimates

Preparation of the financial statements requires management to make judgements and estimates based on

historical experience and other factors, including expectation of future events that are believed to be reasonable

under the circumstances. The items in the financial statements where these estimates and judgements have been

made are:

a). Useful economic life of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives

and residual values of the assets. The useful economic lives are re-assessed annually. They are amended where

necessary to reflect current estimates based on technological advancement, future investments, economic

utilisation and the physical condition of the asset.

b). Stock and work in progress provisions

It is necessary to consider the recoverability of the cost of stocks and work in progress. When calculating any

provision required, management consider the nature and condition of the items as well as assessing the saleability

of finished goods and the future usage of raw materials.

c). Impairment of debtors

The company makes a judgement of the recoverability of trade and other debtors. When assessing any potential

impairment, factors such as the ageing profile and historical experience are considered.

Turnover

Turnover is comprised of the invoiced value of goods and services supplied by the company, net of value added

tax and other sales taxes. Transport sales are recognised on delivery of goods. Trailer sales are recognised when

the completed or repaired trailer is delivered to the customer. Rental income arising from leases on investment

and leasehold property is accounted for on a straight line basis over the lease term. Interest received is

recognised on receipt.

Tangible fixed assets

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

Tractor units and trailers

-

25% on reducing balance, 15% on reducing balance and 10% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on reducing balance

Office equipment

-

25% on cost

Tangible fixed assets are stated under the cost model 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.

The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if

appropriate, or there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are

recognised within 'operating profit' in the income statement.

Depreciation has been provided on freehold buildings. Freehold land is not depreciated.

Tractor units and trailers acquired are depreciated on a monthly basis pro rata from the month of acquisition.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in

fair value is recognised in profit or loss.

Stocks

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

for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

Work in progress includes the cost of direct materials and labour plus attributable overheads based on normal

levels of activity.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial

assets and liabilities like trade and other accounts receivable and payable and loans to related parties.

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently,

they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement

constitutes a finance transaction it is measured at present value.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, 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.

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 and loss over the relevant period. The capital

element of future payments is treated as a liability.

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

lease.

Pension costs and other post-retirement benefits

The company operates a defined pension 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 income statement when they fall due. Amounts not paid

are shown in accruals as a liability in the balance sheet. The assets of the plans are held separately from the

company in independently administered funds.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid

investments with original maturities of three months or less and bank overdrafts.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are

measured initially at transaction cost. Subsequently, they are measured at amortised cost using the effective

interest rate method, less impairment.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past

event and it is probable that an outflow of economic benefits will be required in settlement and the amount can

be reliably estimated. The provision is charged to the income statement in the year that the company becomes

aware of the obligation taking into account relevant risks and uncertainties. When payments are eventually

made, they are charged to the provision carried in the balance sheet.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

2018

2017

£

£

Haulage and transport

9,536,931

9,904,851

Trailer manufacturing

1,402,650

1,351,993

10,939,581

11,256,844

4.	OTHER OPERATING INCOME

2018

2017

£

£

Rents received

177,864

145,922

5.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

3,446,972

3,837,022

Social security costs

363,775

410,104

Other pension costs

83,409

66,994

3,894,156

4,314,120

The average number of employees during the year was as follows:

2018

2017

Drivers and mechanics

82

89

Management and administration

18

18

100

107

6.	DIRECTORS' EMOLUMENTS

2018

2017

£

£

Directors' remuneration

409,493

575,131

Directors' pension contributions to money purchase schemes

20,000

20,000

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2018

2017

£

£

Emoluments etc

223,142

313,865

Pension contributions to money purchase schemes

10,000

10,000