Expect Distribution Limited - Limited company accounts 20.1
Expect Distribution Limited - Limited company accounts 20.1
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| FOR |
| EXPECT DISTRIBUTION LIMITED |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 7 |
| Report of the Independent Auditors | 9 |
| Income Statement | 13 |
| Other Comprehensive Income | 14 |
| Balance Sheet | 15 |
| Statement of Changes in Equity | 16 |
| Cash Flow Statement | 17 |
| Notes to the Cash Flow Statement | 18 |
| Notes to the Financial Statements | 21 |
| EXPECT DISTRIBUTION LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: |
| AUDITORS: |
| Chartered Accountants |
| and Statutory Auditors |
| Birkby House |
| Bailiff Bridge |
| Brighouse |
| West Yorkshire |
| HD6 4JJ |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| The directors present their strategic report for the year ended 30 November 2021. |
| REVIEW OF BUSINESS |
| The Directors are pleased to report another progressive year of growth arising primarily from long term, contracted business within the Contract Logistics and Warehousing divisions. Last year was one of the toughest years the logistics industry has ever faced with severe driver shortages impacting upon operations throughout the business. The dedication and commitment of our team was once again the key to making the year a successful one overall. |
| Our strategy remained unchanged throughout the year despite the issues we were faced with; it was as important as ever to remain focused on the formula for success which is a customer focused environment that continually strives add value as their 3PL provider. |
| Headline revenue growth for the year was £7.8m (24%) when compared to 2020 and profit before tax grew by 654k (18%). In a year of difficult trading conditions, to maintain a net profit margin of 9% year on year is deemed a success by the Board. |
| Focus continued on the Contract Logistics and Warehousing divisions with significant new contract wins contributing to the year on year revenue growth. Contracted business continues to be our significant growth area which offers security for both parties and a partnership which consists of continuous improvement. |
| Investment in our people and infrastructure remained one of the highest priorities throughout the year as it is recognised that development and the welfare of our people is the key to our success. We continue to attract the industry's talent by operating a culture of progression for all involved which is extremely important in a growing business such as Expect. |
| Benchmarking of pay rates and employee benefits were undertaken in the year across the workforce and increases awarded to maintain our position in the upper quartile of the market. It is as important as ever that our colleagues are appropriately remunerated given current cost of living increases, but also that our benefits package remains industry leading and contributes to their well-being accordingly. |
| Our 2022 strategy remains consistent with the success of recent years and that is to focus on long term partnerships with new and existing customers, whilst investing heavily in the workforce that enable our day to day success. The economic uncertainty is likely to bring its challenges as with any business, but the Directors are confident that we have the strength to navigate through and continue with the path of positive growth within the business. |
| Our priorities continue to remain the health, safety and well-being of those employees and on delivering strong service levels for all our customers. The Directors would like to recognise the dedication of all Expect colleagues once again and thank all involved in making the year a success. |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 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 321. |
| 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. |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| SECTION 172(1) STATEMENT |
| The Board of Directors of Expect Distribution Ltd have, when making decisions, acted in a way they believe to be in good faith and will duly promote the success of the company for the benefit of its members as a whole, and in doing so have had a regard to stakeholders and the matters set out in subsections 172(1)(a-f) of the Companies Act 2006. |
| In making this statement the directors have considered the following matters: |
| 1. Consequence and long term impact of decisions made: |
| The board review the company strategy on a regular basis and ensure that decisions made are supportive of that strategy and are appropriate to the long term success of the company. Project appraisal documents are produced which comprehensively demonstrate the viability of future investments to ensure they are of benefit to the business. |
| 2. Interests of its employees |
| Our people are at the heart of our success and are critical to the future of the business and its related success. We endeavour to be an employer of choice that recruits, retains and develops to the highest of standards that in turn will be represented in their career at Expect. Our decisions are always made with our colleagues at the forefront of our minds to ensure their interests are well protected. |
| 3. The need to foster business relationships with customers, suppliers and others |
| Expect has developed and built on the strength of its long term relationships that it holds with its customers and suppliers. Our mission is to be the best in the industry and fostering relationships is one of the key requirements to ensure we are delivering the best possible service to our customers and working effectively with suppliers. |
| 4. Impact on the community and the environment |
| Sustainability in our operations is a topic that is of high regard to the board of directors in their conduct and decision making. Our strategy includes a high level of consideration to ensuring we are investing in the newest technology that minimises impact on the environment and our carbon footprint. We are a supporter and sponsor of the local authority in Bradford, ensuring that we give back to the community and support its development. |
| 5. Desirability to maintain a reputation of high standards and business conduct |
| The board are responsible for setting and delivering the culture, values and reputation of the company. Our colleagues are fundamental to achieving our ambition to be the best in the industry and we are continually developing a culture that allows our colleagues to prosper. Regular training is carried out with our colleagues to ensure that the code of ethics and conduct are continually reinforced in the way that we operate. |
| 6. The need to act fairly as between members of the company |
| The company always seeks to ensure that its communications are transparent and in accordance with the strategy of the business to ensure the long term success is supported. Decisions are made with fairness of all key stakeholders in mind and ensuring that decisions are made in the best interests of its members. |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| DIRECTORS REPORT - STATEMENT ON EMPLOYEE ENGAGEMENT |
| Our people are the face of the Expect brand and the high standard of services we offer to our customers. The culture amongst our colleagues is of extreme importance to the board of directors and employee engagement is fundamental to upholding the culture and values that we operate to. |
| We are an equal opportunity employer that strives to be an employer of choice, recruiting industry leading talent that will perform to their potential. Our recruitment and retention strategy is continually reviewed to ensure we remain ahead of the market and offer pay and benefits that stand out from the rest. |
| The Directors are committed to promoting a healthy workforce with focus on mental health and wellbeing, whilst demonstrating a culture of openness to keep colleagues informed of key developments within the business. |
| During the year the board of directors have engaged with colleagues through the following methods: |
| - Regular employee forums that create a platform for cross directional information exchange and |
| engagement |
| - Line managers hold regular one to one meetings with their reports which play a key part in personal |
| development and information exchange |
| - Annual employee survey with associated action plans to address key themes that arise and require |
| considered change |
| - Benchmarking and review of pay rates resulting in an industry leading increase that remains in the upper |
| quartile of the market |
| - Voluntary benefits package overhaul with substantial new employee benefits introduced that support |
| work life balance and personal care |
| - Quarterly newsletters that include key business updates alongside publications from colleagues and their |
| respective efforts within the business |
| - Induction programmes for all new employees joining the Expect family to ensure they understand how |
| the business operates and allowed the opportunity to meet their colleagues |
| - Warehouse to Wheels upskill programme introduced, investing in existing employee development and |
| allowing a funded career progression route to becoming a driver |
| - In house and external training packages offered out to all employees within the business with a healthy |
| budget assigned to development. |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| DIRECTORS REPORT – ENERGY AND CARBON REPORTING |
| Expect Distribution are committed to continually developing its infrastructure and investing in energy efficient operating equipment to reduce the overall effect it has on the environment. |
| Fleet efficiency and reduced empty running are consistently measured and focused on throughout the business, creating partnerships where possible to reduce the overall mileage travelled. Our membership of the Palletline network allows us to reduce the stem mileage associated with our deliveries by selecting the optimal route for the consignment. |
| Forklift equipment is renewed periodically with over 80% of our fleet now operating with rechargeable electric motors rather than the traditional gas engine. Our renewal policy of 5 years on such equipment ensures we are investing in the most recent technology when renewing equipment. |
| Alternative fuel vehicles are a firm part of Expect's replacement vehicle strategy with pilot schemes currently in place to assess viability across certain parts of the operation. |
| Energy consumption for the annual period of reference are stated in the table below for each respective fuel type used within Expect Distribution Ltd: |
| FUEL TYPE | 2021 kWh | 2021 CO2e (tonnes) |
| Diesel - Vehicles | 27,219,818 | 6,656 |
| Electricity | 922,861 | 196 |
| Gas | 887,354 | 163 |
| TOTAL | 29,030,033 | 7,014 |
| The intensity ratio based on total gross emissions was 17.27 tonnes CO2 per £100,000 of sales revenue. |
| ON BEHALF OF THE BOARD: |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| The directors present their report with the financial statements of the company for the year ended 30 November 2021. |
| 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 |
| Dividends were paid during the year as follows; |
| £ |
| 25 January 2021 | 72,000 |
| 30 November 2021 | 12,270,000 |
| 12,342,000 |
| EVENTS SINCE THE END OF THE YEAR |
| Information relating to events since the end of the year is given in the notes to the financial statements. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 December 2020 to the date of this report. |
| Other changes in directors holding office are as follows: |
| EMPLOYMENT POLICIES AND EMPLOYEE INVOLVEMENT |
| Matters pertaining to employees are addressed in the strategic report. |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 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; |
| - | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
| - | 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, Brosnans, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| EXPECT DISTRIBUTION LIMITED |
| Opinion |
| We have audited the financial statements of Expect Distribution Limited (the 'company') for the year ended 30 November 2021 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 2021 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 |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| EXPECT DISTRIBUTION LIMITED |
| 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 eight, 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| EXPECT DISTRIBUTION LIMITED |
| 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Audit response to risks identified |
| In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
| - the nature of the industry and sector, control environment and business performance; |
| - results of our enquiries of management about their own identification and assessment of the risks of |
| irregularities; |
| - any matters we identified having obtained and reviewed the group's documentation of their policies |
| and procedures relating to: |
| - identifying, evaluating and complying with laws and regulations and whether they were aware of any |
| instances of non-compliance |
| - detecting and responding to the risks of fraud and whether they have knowledge of any actual, |
| suspected or alleged fraud; |
| - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
| As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
| We obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. |
| In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
| Our procedures to respond to risks identified included the following: |
| - reviewing the financial statement disclosures and testing to supporting documentation to assess |
| compliance with provisions of relevant laws and regulations described as having a direct effect on the |
| financial statements; |
| - enquiring of management concerning actual and potential litigation and claims; |
| - performing analytical procedures to identify any unusual or unexpected relationships that may indicate |
| risks of material misstatement due to fraud; |
| - obtaining an understanding of provisions and held discussions with management to understand the basis |
| of recognition or non-recognition of provisions and |
| - in addressing the risk of fraud through management override of controls, testing the appropriateness of |
| journal entries and other adjustments; assessing whether the judgements made in making accounting |
| estimates are indicative of a potential bias; and evaluating the business rationale of any significant |
| transactions that are unusual or outside the normal course of business. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| EXPECT DISTRIBUTION LIMITED |
| We also communicated relevant identified laws and regulations to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
| 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. |
| for and on behalf of |
| Chartered Accountants |
| and Statutory Auditors |
| Birkby House |
| Bailiff Bridge |
| Brighouse |
| West Yorkshire |
| HD6 4JJ |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| TURNOVER | 3 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| 3,632,798 | 2,749,152 |
| Other operating income |
| OPERATING PROFIT | 5 |
| Profit/loss on sale of properties | 6 |
| 7,580,640 | 3,184,507 |
| Income from fixed asset investments |
| Interest receivable and similar income | 7 |
| 7,590,201 | 3,186,107 |
| Interest payable and similar expenses | 8 | ( |
) | ( |
) |
| PROFIT BEFORE TAXATION |
| Tax on profit | 9 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| BALANCE SHEET |
| 30 NOVEMBER 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 11 |
| Investments | 12 |
| CURRENT ASSETS |
| Stocks | 13 |
| Debtors | 14 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 15 | ( |
) | ( |
) |
| NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
| PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 21 |
| Retained earnings | 22 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 December 2019 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 30 November 2020 |
| Changes in equity |
| Issue of share capital | - |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 30 November 2021 |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Interest element of hire purchase payments paid |
( |
) |
( |
) |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| Dividends received |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| Loan repayments in year | ( |
) | ( |
) |
| HP repayments in year | ( |
) | ( |
) |
| Amount introduced by directors | 72,000 | 420,000 |
| Amount withdrawn by directors | (231,000 | ) | (451,000 | ) |
| Share issue |
| Government Grants Covid 19 |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| (Decrease)/increase in cash and cash equivalents | (3,345,793 | ) | 2,265,204 |
| Cash and cash equivalents at beginning of year |
2 |
954,315 |
| Cash and cash equivalents at end of year | 2 | ( |
) | 3,219,519 |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2021 | 2020 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Profit on disposal of fixed assets | ( |
) |
| Reclassification of assets | - | 5,458 |
| Government grants | ( |
) | ( |
) |
| Finance costs | 66,804 | 180,502 |
| Finance income | (9,561 | ) | (1,600 | ) |
| 8,016,117 | 3,411,602 |
| Increase in stocks | ( |
) | ( |
) |
| Increase in trade and other debtors | ( |
) | ( |
) |
| Increase in trade and other creditors |
| Cash generated from operations |
| 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 2021 |
| 30.11.21 | 1.12.20 |
| £ | £ |
| Cash and cash equivalents | 1,640 | 3,219,519 |
| Bank overdrafts | ( |
) |
| (216,274 | ) | 3,219,519 |
| Year ended 30 November 2020 |
| 30.11.20 | 1.12.19 |
| £ | £ |
| Cash and cash equivalents | 3,219,519 | 954,315 |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.12.20 | Cash flow | At 30.11.21 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 3,219,519 | (3,217,879 | ) | 1,640 |
| Bank overdrafts | - | (217,914 | ) | (217,914 | ) |
| 3,219,519 | (3,435,793 | ) | (216,274 | ) |
| Debt |
| Finance leases | (712,635 | ) | 191,996 | (520,639 | ) |
| Debts falling due within 1 year | (576,000 | ) | 576,000 | - |
| Debts falling due after 1 year | (3,015,400 | ) | 3,015,400 | - |
| (4,304,035 | ) | 3,783,396 | (520,639 | ) |
| Total | (1,084,516 | ) | 347,603 | (736,913 | ) |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| ERROR MESSAGES FROM THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| ** | CURRENT YEAR - MOVEMENT IN CASH AND CASH EQUIVALENTS |
| AS CALCULATED IN CASH FLOW STATEMENT |
| DOES NOT AGREE TO MOVEMENT PER BALANCE SHEET |
| COMPARE MOVEMENT ON CASH FLOW STATEMENT | = | (3,345,793 | ) |
| TO | MOVEMENT PER BALANCE SHEET |
| CASH AND CASH EQUIVALENTS LESS BANK OVERDRAFTS |
| (3,217,879 | ) | - | 217,914 | = | (3,435,793 | ) |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 1. | STATUTORY INFORMATION |
| Expect Distribution Limited is a |
| 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 |
| 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 |
| 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. |
| Depreciation is provided on a monthly basis in order to write off the cost less the estimated residual value of each individual asset over its useful life. |
| 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. |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| 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. |
| GRANTS RECEIVED |
| Grants received in the year relating to Covid 19 are disclosed as other income on the financial statements and the accrual model has been adopted in its calculation. |
| 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: |
| 2021 | 2020 |
| £ | £ |
| UK Sales | 40,325,645 | 32,542,587 |
| European Sales | 280,135 | 295,494 |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2021 | 2020 |
| £ | £ |
| Wages and salaries | 10,464,368 | 9,103,756 |
| Social security costs | 895,855 | 753,052 |
| Pensions | 201,872 | 186,747 |
| 11,562,095 | 10,043,555 |
| The average number of employees during the year was as follows; |
| 2021 | 2020 |
| Directors | 6 | 5 |
| Central | 22 | 18 |
| Contracts and own fleet | 210 | 212 |
| Storage | 83 | 57 |
| 321 | 292 |
| 2021 | 2020 |
| £ | £ |
| Directors' remuneration |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| Information regarding the highest paid director is as follows: |
| 2021 | 2020 |
| £ | £ |
| Emoluments etc |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2021 | 2020 |
| £ | £ |
| Other operating leases |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Profit on disposal of fixed assets | ( |
) |
| Auditors' remuneration |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 6. | EXCEPTIONAL ITEMS |
| 2021 | 2020 |
| £ | £ |
| Profit/loss on sale of properties |
| 7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| 2021 | 2020 |
| £ | £ |
| Other interest received |
| 8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2021 | 2020 |
| £ | £ |
| Bank loan interest |
| Hire purchase |
| 9. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2021 | 2020 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax | ( |
) |
| Tax on profit |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 9. | TAXATION - continued |
| RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2021 | 2020 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2020 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Income not taxable for tax purposes | ( |
) | ( |
) |
| Capital allowances in excess of depreciation | ( |
) | - |
| Depreciation in excess of capital allowances | - |
| Deferred taxation charge/(credit) | 132,438 | (83,073 | ) |
| Total tax charge | 561,333 | 553,342 |
| 10. | DIVIDENDS |
| 2021 | 2020 |
| £ | £ |
| A Ordinary shares of £1 each |
| Interim |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 11. | TANGIBLE FIXED ASSETS |
| Freehold | Fixtures |
| land & | Plant and | and |
| building | machinery | fittings |
| £ | £ | £ |
| COST |
| At 1 December 2020 |
| Additions |
| Disposals | ( |
) |
| At 30 November 2021 |
| DEPRECIATION |
| At 1 December 2020 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| At 30 November 2021 |
| NET BOOK VALUE |
| At 30 November 2021 |
| At 30 November 2020 |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 December 2020 |
| Additions |
| Disposals | ( |
) |
| At 30 November 2021 |
| DEPRECIATION |
| At 1 December 2020 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| At 30 November 2021 |
| NET BOOK VALUE |
| At 30 November 2021 |
| At 30 November 2020 |
| Tangible fixed assets with a carrying value of £2,858,655 are pledged as security for the Company's bank overdraft. |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 11. | TANGIBLE FIXED ASSETS - continued |
| The net book value of tangible fixed assets includes £661,920 (2020 £850,281) in respect of assets held under hire purchase contracts. |
| 12. | FIXED ASSET INVESTMENTS |
| Unlisted |
| investments |
| £ |
| COST |
| At 1 December 2020 |
| and 30 November 2021 |
| NET BOOK VALUE |
| At 30 November 2021 |
| At 30 November 2020 |
| The Directors elected to show the fixed asset investment at cost. |
| 13. | STOCKS |
| 2021 | 2020 |
| £ | £ |
| Stocks |
| 14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2021 | 2020 |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Prepayments |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2021 | 2020 |
| £ | £ |
| Bank loans and overdrafts (see note 17) |
| Hire purchase contracts (see note 18) |
| Trade creditors |
| Tax |
| Social security and other taxes |
| VAT | 1,080,648 | 1,394,886 |
| Other creditors |
| Directors' current accounts | - | 159,000 |
| Accrued expenses |
| 16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2021 | 2020 |
| £ | £ |
| Bank loans (see note 17) |
| Hire purchase contracts (see note 18) |
| 17. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2021 | 2020 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank overdrafts |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| The Company's bank loans were repaid in full in the year. |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 18. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 2021 | 2020 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable operating | leases |
| 2021 | 2020 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| 19. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2021 | 2020 |
| £ | £ |
| Bank overdraft |
| The Company's overdraft is covered by a debenture over the fixed and floating assets of the Company and a counter indemnity is also held by the bankers. |
| 20. | PROVISIONS FOR LIABILITIES |
| 2021 | 2020 |
| £ | £ |
| Deferred tax | 351,589 | 219,151 |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 20. | PROVISIONS FOR LIABILITIES - continued |
| Deferred |
| tax |
| £ |
| Balance at 1 December 2020 |
| Provided during year |
| Balance at 30 November 2021 |
| 21. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2021 | 2020 |
| value: | £ | £ |
| A Ordinary | £1 | 6,000 | 6,000 |
| B Ordinary | 1 | 1,312 | - |
| C Ordinary | 1 | 188 | - |
| 7,500 | 6,000 |
| The following shares were allotted and fully paid for cash at par during the year: |
| 0 A Ordinary shares of £1 each |
| 1,312 B Ordinary shares of 1 each |
| 188 C Ordinary shares of 1 each |
| The B & C ordinary shares have the right to participate in dividends and on a return of capital if certain levels of return are achieved, but no voting rights. |
| 22. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 December 2020 |
| Profit for the year |
| Dividends | ( |
) |
| At 30 November 2021 |
| EXPECT DISTRIBUTION LIMITED (REGISTERED NUMBER: 02169364) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2021 |
| 23. | PENSION COMMITMENTS |
| The company operates a defined contribution scheme for its employees. |
| The employer cost in the year was £201,984 (2020 £186,747). |
| There were no outstanding or prepaid contributions at the balance sheet date. |
| 24. | CAPITAL COMMITMENTS |
| 2021 | 2020 |
| £ | £ |
| Contracted but not provided for in the |
| financial statements |
| 25. | POST BALANCE SHEET EVENTS |
| After the balance sheet date the company was subject to a management buyout and the company became a subsidiary of Expect Group Limited which is a subsidiary of Expect Distribution Group Limited and is a company controlled by M Kilner and A Taylor. |
| 26. | ULTIMATE CONTROLLING PARTY |
| At the balance sheet date the directors consider that the company was a subsidiary of Expect Distribution Holdings Limited by virtue of its 80% ownership |
| The ultimate controlling parties were RW Rushworth and NW Rushworth as a result of their ownership of Expect Distribution Holdings Limited. |