ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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FOR THE YEAR ENDED 31 MARCH 2022
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3T LOGISTICS HOLDINGS LIMITED
COMPANY INFORMATION
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3T LOGISTICS HOLDINGS LIMITED
CONTENTS
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3T LOGISTICS HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
3Ts strategic objective is to help its customers to optimise their road freight transport costs, increase vehicle utilisation, reduce transport costs, lower their carbon emissions and enable more flexible transport options; alongside service excellence and an automated, digital platform for sustainable continuous improvement. Our aim is to be one of the most technically advanced logistics platform in the World and to be the first choice technology partner for any logistics organisation.
The principal activity of the group during the year was the provision of service activities incidental to land transportation. The principal activity of the company is that of a holding company.
2021/2 and 2022/3 are transition years for 3T as it implements its new cloud-delivered, modular Event TMS platform alongside its second-generation platform that is not cloud-based as its transitions major customers to Event.
3T offers its clients a combination of software-enabled transport management solutions. This includes a number of SAAS transport management software applications as well as a full end to end transport management system (TMS) and a carrier optimisation platform for managing multi-carrier solutions, designed to provide clients with lower costs, greater visibility and improved customer service compared to using a single 3PL managed solution. In addition to our software-led offerings, we provide transport expertise through a combination of professional consulting services and operational support for carrier procurement, planning and operations and continuous improvement frameworks. During the year to March 2022, we have continued to invest in the development of Event, our third-generation SAAS, cloud-based TMS and will be investing in further system development during 2022/23 to complete deployment to existing customers. Event TMS and its applications are accessible to a broader range of customers across multiple new sectors and provide significant growth opportunities for the business. Our Event TMS software was developed in-house by 3T and has been recognised by inclusion in the Gartner magic quadrant for TMS in 2022 and for all years since 2018.
The summary performance metrics below present robust and improving financial performance in the year ending 31 March 2022.
Management consider Software and Logistics revenue to be the key performance indicator for revenue as it excludes pass through carrier revenue provided as an ancillary service to some logistics customers. Software and Logistics revenue includes recurring SaaS subscription and management fees, implementation fees and advisory fees.
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3T LOGISTICS HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Total turnover increased during the year and management fees increased 13%. Software and logistics gross margin reduced from 73% to 66% and operating profit, inclusive of carrier revenue reduced from £1.4m to £0.3m. Software & Logistics gross margin reduced mainly as a result of the lorry driver shortage in summer 2021 which led to higher administrative costs of freight procurement. During the year, 3T deployed the Event system to two major enterprise customers; broadening its sector reach to include retail alongside agricultural products, packaging, after market vehicle parts and industrial products. Investment in development of the Event TMS has continued with an investment in research and development of £1.0m in the year to 31 March 2022 (2021: £1.3m). The financial impact of developing Event, alongside parallel running the second-generation TMS and migration of existing customers has had a material impact on business performance. The directors review the underlying performance of the business with reference to normalised EBITDA which is presented below and adjusts operational costs to include all development costs capitalised but to exclude system transition costs, that will only be incurred whilst Event migration continues. Management presents normalised EBITDA after expensing development capital expenditure in order to present costs and EBITDA related to underlying performance from normal, ongoing trading and development activity.
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3T LOGISTICS HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
For many years 3T has been included in the Gartner magic quadrant and receives considerable interest in its TMS software product from large multi-national organisations. Alongside this, as Event has a number of flexible applications that can be packaged and operated in the Cloud -3T is also beginning to increase a key part of its sales strategy on mid-market companies where the shorter sales cycle enables faster deployment, quicker benefit delivery to customers and future upsell opportunities. As a modular cloud-enabled system, 3Ts TMS software should create strong growth opportunities in the Mid-Market where businesses with transport requirements may not need all modules of the full TMS system.
The Group offers a breadth of logistics market sector expertise across a broad range of market sectors and amongst other things, its TMS is used to manage outbound multi-drop optimisation, consignment optimisation and inbound optimisation as well as parcel, road, air and ocean freight. Event software is advanced and offers significant advantages over alternative systems. It is either provided on a self-service, user operated subscription basis or combined with 3T’s freight management services. 3T’s Event software together with its decades of logistics experience and consultancy services enable it to offer outsourced software- enabled 4PL or system-only solutions to clients and it competes with the largest providers in the market. Its software led approach combined with 4PL expertise sets it apart and makes it a highly valued partner amongst its growing customer base. Clients are supported with implementation and training in line with their requirements on a flexible basis and continuous improvement programmes add ongoing value. Alongside growth from new customers, 3T continues to grow revenues with existing clients as clients benefit from the cost saving opportunities the software enables.
Due to the nature of its service offering, and upselling success, the company currently has a significant reliance on a relatively small number of customers. This is being addressed through a sales strategy to broaden the customer base and widen the addressable market through targeted development of the modular Event system and successful introduction to the Mid- Market.
The business is currently operating and supporting two TMS’s until Event is fully adopted by all customers during the 2021-22 financial year when the full benefits of the new software platform can be realised and dual running and development costs removed.
The key plans for the next twelve months are:
∙Completion of migration to Event TMS across the remainder of our current customer base.
∙Winning and onboarding new customers and realising logistics savings for them as well as working with them on continuous improvement programmes.
∙Ongoing development of the Event system to appeal to a broader addressable market, and
∙Improvements in cashflows, profitability and growth as Event is deployed.
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3T LOGISTICS HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
This report was approved by the board on 21 December 2022 and signed on its behalf.
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3T LOGISTICS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The directors present their report and the financial statements for the year ended 31 March 2022.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £67,754 (2021: £1,418,510).
During the year the directors paid dividends of £288,030 (2021: £391,856). The directors do not recommend any further dividends to be paid.
The directors who served during the year were:
The directors regard investment in research and development as integral to the continuing success of the business, expanding its technical capabilities and seeking out new and emerging technologies to extend its competitive advantage. During the year ended 31 March 2022 our total investment in activities that qualify for research and development tax credits in the year was £1.0m (2021: £1.3m).
The review of the business, key performance indicators, future developments, principal risks and uncertainties and financial risks are not shown in the Directors' Report as they are shown in the Strategic Report in accordance with S414C(11) of the Companies Act.
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3T LOGISTICS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
There have been no significant events affecting the Group since the year end.
The auditors, Bishop Fleming LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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3T LOGISTICS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 3T LOGISTICS HOLDINGS LIMITED
We have audited the financial statements of 3T Logistics Holdings Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 March 2022, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statements of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Analysis of Net Debt, the Consolidated and Company Statement of Changes in Equity and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 Group's or the parent 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are 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.
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3T LOGISTICS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 3T LOGISTICS HOLDINGS LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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3T LOGISTICS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 3T LOGISTICS HOLDINGS LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
Identifying and assessing potential risks related to irregularities The procedures undertaken in order to identify and assess risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, are as follows:
∙We have considered the nature of the industry and sector, control environment and business performance;
∙We have considered the results of our enquiries of management about their own identification and assessment of the risk of irregularities;
∙For any matters identified we have obtained and reviewed the group's documentation of their policies and procedures relating to:
°Identifying, evaluating and complying with laws and regulations whether they were aware of any instances of non-compliance;
°Detecting and responding to the risk of fraud and whether they have knowledge of actual, suspected or alleged fraud;
°The internal controls established to mitigate the risks of fraud or non-compliance with laws and regulations; and
∙We have considered the matters discussed among the audit engagement team, including internal tax specialists regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the main area of high risk to be in relation to 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 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. The key laws and regulations we considered in this context included the Companies Act 2006 and tax legislation. In addition, we have 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 group's ability to operate or to avoid a material penalty. These include data protection regulations, health and safety regulations and employment legislation.
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3T LOGISTICS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 3T LOGISTICS HOLDINGS LIMITED (CONTINUED)
AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
Audit response to risks identified As a result of performing the above procedures, we have identified revenue recognition and accounting estimates as key audit matters related to the potential risk of fraud. Our procedures to respond to risks identified included the following:
∙Documenting and validating the control environment for income and debtors and carrying out walkthrough testing;
∙Undertaking substantive sample-based testing or proof in total calculations on all material revenue streams to ensure revenue has been recognised appropriately and accurately;
∙Considering manual income journals as part of our work on fraud risks documented above;
∙Reviewing the financial statement disclosures and testing to supporting documentation;
∙Enquiring of management concerning actual and potential litigation claims;
∙Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement;
∙Reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;
∙In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; and
∙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 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. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
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 Auditors' Report.
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3T LOGISTICS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 3T LOGISTICS HOLDINGS LIMITED (CONTINUED)
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
1-3 College Yard
WR1 2LB
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3T LOGISTICS HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
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3T LOGISTICS HOLDINGS LIMITED
REGISTERED NUMBER:08612020
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 42 form part of these financial statements.
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3T LOGISTICS HOLDINGS LIMITED
REGISTERED NUMBER:08612020
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 42 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
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3T LOGISTICS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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3T LOGISTICS HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
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3T LOGISTICS HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
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3T LOGISTICS HOLDINGS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2022
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
3T Logistics Holdings Limited is a private company limited by shares, incorporated in England and Wales and domiciled in England.
The registered office is 4 Thorpe Way, Grove Park, Leicester, LE19 1SU and its registered number is 08612020. The principal activity of the company during the year was that of a holding company. The principal activity of the group was the provision of service activities incidental to land transportation.
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The functional and presentation currency of the company and the group is GBP and the accounts are rounded to the nearest £1.
Certain prior year amounts have been reclassified for consistency with the current year presentation and to ensure a more accurate representation of the company's activities. These reclassifications had no effect on the reported results of the company. Parent company disclosure exemptions In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available to qualifying entities:
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.ACCOUNTING POLICIES (continued)
The directors have reviewed budgets and forecasts for a period of 12 months from approval of the financial statement. Considering this and profits generated by the group, they consider that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Functional and presentation currency
Transactions and balances
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.ACCOUNTING POLICIES (continued)
Research and development tax credits are treated as grant income and are recognised within other operating income in the Statement of Comprehensive Income.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
Page 23
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.ACCOUNTING POLICIES (continued)
Page 24
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.ACCOUNTING POLICIES (continued)
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Development costs Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project. Research and development expenditure is written off as incurred, except that development expenditure incurred on an individual project is capitalised as an intangible asset when the group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development. If it is not possible to distinguish between the research phase and the development phase of an internal project. The expenditure is treated as if it were all incurred in the research phase only. Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised evenly over the period of expected future benefit. During the period of development the asset is tested for impairment annually. Amortisation is charged to administrative expenses within profit or loss. Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Repairs and maintenance are charged to the Consolidated Statement of Comprehensive Income during the period in which they are incurred. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives.
Page 25
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.ACCOUNTING POLICIES (continued)
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in administrative expenses within the Consolidated Statement of Comprehensive Income. At each Balance Sheet date, the group reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.
Page 26
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.ACCOUNTING POLICIES (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
Page 27
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: Impairment of fixed assets The group assessed the impairment of tangible fixed assets subject to depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important that could trigger an impairment review include the following: The group reviews the carrying value of fixed asset investments for indications of impairment at each period end. If indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its recoverable amount. This process will usually involve the estimation of future cash flows which are likely to be generated by the asset. Development expenditure Development is capitalised in accordance with the accounting policy. Initial capitalisation of costs is based on managements judgement that technical and economic feasibility is confirmed, usually when a product development project has reached a defined milestone according to an established project management model. In determining the amounts to be capitalised management makes assumptions regarding the expected future cash generation of the assets, discount rates to be applied and the expected period of benefits.
The whole of the turnover is attributable to the one principal activity of the group.
Analysis of turnover by country of destination:
Page 28
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 29
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 30
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 31
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
11.TAXATION (CONTINUED)
The group has losses available to offset against future trading profits of £61,477 (2021: £61,477).
Page 32
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 33
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 34
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 35
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
See further details on security of bank loans in note 21.
Page 36
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 37
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 38
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
24.SHARE CAPITAL (CONTINUED)
Share premium account
Capital redemption reserve
Foreign exchange reserve
Profit and loss account
Page 39
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £88,460 (2021: £123,502)
Contributions totalling £7,338 (2021: £15,964) were payable to the fund at the Balance Sheet date and included within creditors.
Page 40
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 41
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3T LOGISTICS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
In the opinion of the directors, 3T Logistics Holdings Limited is ultimately controlled by S D Twydell by virtue of his majority shareholding.
Page 42
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