DRT_(NI)_LIMITED - Accounts

The director presents the strategic report for the year ended 31 December 2021.

The director aims to present a balanced and comprehensive review of the development and performance of the company during the year and its position at 31 December 2021. This review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties it faces.

Sales volumes over the course of the year were initially adversely impacted by remaining Covid-19 restrictions but recovered quickly and grew over remainder of the trading period. Foodservice volumes, initially impacted most, showed great recovery towards end of period, while new customers and continued growth in existing customer base were key drivers in turnover and margin growth in the trading period. The company directors remain confident of continued strong performance and future growth.

Principal activities

The principal activity of the company continued to be that of refrigerated transport.

The director is mindful of the risks and uncertainties facing the business such as rising costs, wage inflation, interest rate increases and foreign currency risk. Competition risk is managed through close attention to customer service and the provision of quality services. The director focuses strongly on managing these risks and continues to seek ways to increase sales, decrease overheads and maximise profitability wherever possible. The company works closely with its bankers and operates to ensure that sufficient resources are available from cash balances, cash flows and near liquid investments to ensure all obligations can be met when they fall due. The company continually monitors costs and tests against margin expectations and implements robust procedures to ensure an acceptable level of cost control.

Competition risk is managed through close attention to customer service and the provision of quality services. The director focuses strongly on managing these risks and continues to seek ways to increase sales, decrease overheads and maximise profitability wherever possible.

Coronavirus risk: Following an initial adverse impact on business the director and management implemented appropriate steps to ensure business continuity, the health & safety of staff, and positive cashflow. The director continues to implement procedures and controls to minimise the impact on the company and is confident in the senior management of the business and the execution of the company's strategy to trade positively as post pandemic restrictions ease.

Currency risk: The company’s main activities are conducted in UK & Ireland, which are conducted in Sterling & Euro. Currency transaction risk is managed primarily by natural hedging (where possible) and balancing our supplier invoice currency.

The director considers the company's key financial performance indicators to be those that communicate the financial performance and strength of the company as a whole; these being turnover, gross profit, profit before taxation and net assets.

The director is pleased with the results generated by the principal activity of the company during the year. Turnover has increased to £15.97 million (2020 - £13.52 million). The company's gross profit has increased to £4.36 million (2020 - £3.84 million), generating a gross profit margin of 27.33% (2020 - 28.38%). The results show a profit before tax of £1.10m (2020 - £658k).

At the year end the company had net assets of £3.56 million (2020 - £2.43 million).

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 December 2021.

The results for the year are set out on page 10.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

The director who held office during the year and up to the date of signature of the financial statements was as follows:

The auditor, GMcG BELFAST, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of DRT (NI) Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 31 December 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 Auditor's 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

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 and the director's report.

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 remuneration specified by law are not made; or

•     we have not received all the information and explanations we require for our audit.

As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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 an auditor's report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

• The nature of the industry and sector, control environment and business performance, including the company’s remuneration policies for directors, bonus levels and performance targets, if any;

• 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 company’s documentation of their policies and procedures relating to:

  • Identifying, evaluating and complying with laws and regulations and whether they were aware of any instance of non-compliance;

  • Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

  • The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

• The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in revenue recognition. 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 also obtained an understanding of the legal and regulatory frameworks that the company 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. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

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 the 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;

• Reading minutes of meetings of those charged with governance and reviewing correspondence with tax authorities; 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.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to him in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The director regularly reviews these assets lives and change them as necessary to reflect current thinking on remaining lives in light of economic utilisation and physical condition of assets concerned. Changes in assets lives can have significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Short term debtors are measured at transaction price less any impairment. Impairment of such debtors involves some estimation uncertainty.

Judgements are made in relation to the calculation of certain aspects of the year end tax provisions and the respective tax charge. The management used external professional advice to support the year end provisions.

DRT (NI) Limited is a private company limited by shares incorporated in Northern Ireland. The registered office is 90 Charlestown Road, Portadown, Craigavon, BT63 5PP.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Leasehold land and buildings with a carrying amount of £6,903,230 (2020 - £6,730,788) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Security details are as disclosed in the previous note.

Invoice discounting is secured by a fixed charge over book debts, restricted director's indemnity and a mortgage debenture incorporating a fixed and floating charge over all company assets present and future.

Bank loans and overdrafts are secured by a fixed and floating charge over all company assets present and future including a specific charge over leasehold and development at Carn Industrial Estate, a legal charge over shareholding of DRT (NI) Limited and Carn Coldstore Limited, assignment over lease, assignment of life cover, unlimited cross company guarantee executed by DRT (NI) Limited, Carn Coldstore Limited, DRT (Drivers) Limited, DRT (Office) Limited & Tivanagh Holdings Limited supported by mortgage debentures incorporating a fixed and floating charge over all company assets present and future in the name of Carn Coldstore Limited, DRT (Drivers) Limited, DRT (Office) Limited & Tivanagh Holdings Limited and collateral warranties in respect of development at Carn Industrial Estate.

Obligations under finance leases are secured upon the assets acquired.

Bank loans includes two loans, each repayable by monthly instalments of £39,036 and £24,840 until 2023 at an interest rate of 3.6% and 4.35%.

Other borrowings relate to invoice discounting liabilities.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The profit and loss reserves reflects the retained earnings of the company that are available for distribution.

The company has provided a guarantee in relation to several hire purchase agreements of Derry Refrigerated Transport Limited, a related company. The liability in respect of this guarantee at the balance sheet date was £14,435.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Amounts contracted for but not provided in the financial statements:

Capital commitments existed at the end of the year in relation to ongoing building development works.

The company is a 100% subsidiary of Tivanagh Holdings Limited, a company registered in Northern Ireland. Tivanagh Holdings Limited is a medium group for which consolidated financial statements have been prepared, copies of which are available from its registered office at 90 Charlestown Road, Portadown, BT63 5PP.

The company's ultimate controlling party is Mr P Derry.

The director is considered to be the key management personnel of the company. There was no remuneration paid to the director in the year.

During the year the company entered into the following transactions with related parties:

Derry Refrigeration Transport Limited

Derry Refrigerated Transport Limited is regarded as a related party due to common control.

Total charges from Derry Refrigerated Transport Limited, in respect of rent and hire costs, amounted to £52,495 (2020 - £254,458) in the year. At 31 December 2021 the company owed Derry Refrigerated Transport Limited £12,073 (2020 - £103,009), with £9,693 (2020 - £100,629) included in trade creditors and £2,380 (2020 - £2,380) included in accruals at the year end.

During the year there were sales to Derry Refrigerated Transport Limited of £1,040 (2020 - £nil). At 31 December 2021 a balance of £1,248 (2020 - £nil) was included in trade debtors.

At 31 December 2021 Derry Refrigerated Transport Limited also owed the company £20,142 (2020 - £79,198). This balance is repayable on demand and no interest is charged on outstanding amounts.

The company has also provided a guarantee in relation to several hire purchase agreements of Derry Refrigerated Transport Limited as disclosed per note 20 of these financial statements.

DRT (Drivers) Limited

DRT (Drivers) Limited is regarded as a related party due to common control.

During the year management charges of £3,449,838 (2020 - £3,026,818) were charged to the company from DRT (Drivers) Limited. At 31 December 2021 the company owed DRT (Drivers) Limited £294,256 (2020 - £389,603), with £231,341 (2020 - £324,023) included in trade creditors and £62,915 (2020 - £65,580) included in accruals at the year end.

At 31 December 2021 DRT (Drivers) Limited owed the company £nil (2020 - £53,502).

DRT (Office) Limited

DRT (Office) Limited is regarded as a related party due to common control.

During the year management charges of £758,797 (2020 - £740,361) were charged to the company from DRT (Office) Limited. At 31 December 2021 the company owed DRT (Office) Limited £32,695 (2020 - £55,293), with £20,646 (2020 - £44,269) included in trade creditors and £12,049 (2020 - £11,024) included in accruals at the year end.

At 31 December 2021 DRT (Office) Limited owed the company £nil (2020 - £70,681).

Kilmore Freight Limited

Kilmore Freight Limited is regarded as a related party due to common control.

At 31 December 2021 the balance owed from Kilmore Freight Limited was £6,404 (2020 - £2,520).

Kilmore Storage & Distribution Limited

Kilmore Storage & Distribution Limited is regarded as a related party due to the common shareholding of Mr P Derry.

During the year management charges of £19,119 (2020 - £18,244) were charged to the company from Kilmore Storage & Distribution Limited. Other purchases from Kilmore Storage & Distribution Limited for the year ended 31 December 2021 amounted to £12,805 (2020 - £27,096). At 31 December 2021 a balance of £1,080 (2020 - £7,942) was included in trade creditors.

During the year there were sales to Kilmore Storage and Distribution Limited of £4,684 (2020 - £4,780). At 31 December 2021 a balance of £1,257 (2020 - £3,468) was included in trade debtors.

At 31 December 2021 Kilmore Storage & Distribution Limited also owed the company £49,359 (2020 - £37,798). This balance is repayable on demand and no interest is charged on outstanding amounts.

Brennan Refrigerated Transport Limited

Brennan Refrigerated Transport Limited an Irish company is regarded as a related party due to common control.

Sales to Brennan Refrigerated Transport Limited for the year amounted to £205,328 (2020 - £232,967). At 31 December 2021 a balance of £8,817 (2020 - £33,948) was included in trade debtors.

Total purchases from Brennan Refrigerated Transport Limited for the year amounted to £102,302 (2020 - £107,737). At 31 December 2021 a balance of £nil (2020 - £8,014) was included in trade creditors.

At 31 December 2021 Brennan Refrigerated Transport Limited owed the company £47,880.

Coldspeed Logistics Limited

Coldspeed Logistics Limited is regarded as a related party due to common control.

Total purchases from Coldspeed Logistics Limited for the year ended 31 December 2021 amounted to 495,507 (2020 - £55,914). At 31 December 2021 a balance of £101,254 (2020 - £10,074) was included in trade creditors.

During the year there were sales to Coldspeed Logistics Limited of £281,953 (2020 - £186,878). At 31 December 2021 a balance of £nil (2020 - £58,756) was included in trade debtors.

At 31 December 2021 Coldspeed Logistics Limited owed the company £nil (2020 - £116,041).

Exemption

As the company is a wholly owned subsidiary, the director has taken advantage of the exemption from disclosing related party transactions with other wholly owned group companies, in accordance with FRS 102.

At 31 December 2021, the director owed a balance of £38,690 (2020 - £20,656) following advances of £49,274 and repayments of £31,240 during the year. This is disclosed in other debtors.

The director has provided a guarantee of £1,000,000 on assignment of life cover in relation to bank borrowings of the company and a restricted directors indemnity in relation to factored debts of the company.