Fred Sherwood & Sons (Transport) Limited - Limited company accounts 22.3

REGISTERED NUMBER: 01170850 (England and Wales)

FRED SHERWOOD & SONS (TRANSPORT) LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

to

6

Income Statement

7

Other Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

to

23

DIRECTORS:

Mr A F Sherwood

Mrs S I Sherwood

Mr A P A Sherwood

Mr J A Sherwood

Mrs B H J Sherwood-Ratcliffe

Mr A J Disney

SECRETARY:

Mr A J Disney

REGISTERED OFFICE:

47 Ashby Road Central

Shepshed

Loughborough

Leicestershire

LE12 9BS

REGISTERED NUMBER:

01170850 (England and Wales)

SENIOR STATUTORY AUDITOR:

Niall Kingsley ACA

AUDITORS:

Duncan & Toplis Limited, Statutory Auditor

3 Princes Court

Royal Way

Loughborough

Leicestershire

LE11 5XR

BANKERS:

HSBC Bank plc

P O Box 13

41 Market Place

Loughborough

Leicestershire

LE11 3EJ

SOLICITORS:

Browne Jacobson LLP

Mowbray House

Castle Meadow Road

Nottingham

NG2 1BJ

The directors present their strategic report for the year ended 31 March 2022.

REVIEW OF BUSINESS

Revenue has increased by £321,244 in the year to 31 March 2022 to £34,122,550. Gross profit margin increased to 6.3% in the year to 31 March 2022 compared to 5.6% in 2021. Profit before taxation has increased by £30,069 to £772,446.

The Company has continued to invest heavily in revitalising the fleet with investment in lorries and trailers of £1.2 million.

During the year, properties valued at £Nil (2021 - £3,073,627) were transferred to the parent company, Fred Sherwood Group Limited, by way of a dividend in specie.

The above results have seen net assets decrease by £161,911 to £10,690,243, after payment of dividends to the holding company.

The Company is focused on investing in driver training and technology to achieve efficiencies, reduce the risk of incidents and reduce its environmental impact. The directors are mindful of these responsibilities and are pleased with the progress made during the year in these areas.

A commitment has been made in the 2022-23 accounting year to purchase some solar panels to reduce the company's environmental impact, which the directors feel is important.

Key Performance Indicators

2022

2021

% inc / (dec)

£'000

£'000

Revenue

34,123

33,801

0.9

Gross Profit

2,149

1,877

14.5

Gross Profit %

6.3%

5.6%

Net Profit Before Taxation

772

742

4.0

Net Profit %

2.3%

2.2%

Earnings Before Interest, Tax, Depreciation and Amortisation

3,378

3,490

(3.2)

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risks and uncertainties affecting the company are considered to relate to uncertainties relating to fuel prices and driver recruitment and retention. The directors deal with this by regularly looking at new options and contracts. This has proved to be a successful approach as the profitability of the company has been maintained year on year and is expected to continue or improve. The company manage their financial risk by ensuring sufficient liquidity is available to meet their needs. Investments in tangible fixed assets are mainly financed through hire purchase contracts, which have fixed interest rates.

The company is part of the Sherwood Group, which has little trading activity with any country within the EU. And as such, the Board expects no material impact on the Group's trading activities following the Brexit transition period ending. The Board cannot meaningfully assess any wider macroeconomic impact of Brexit which may affect business sentiment in trading and financial markets leading to a material change in the economic or financial environment within the UK and Europe for the Group.

ON BEHALF OF THE BOARD:

Mr A F Sherwood - Director

20 December 2022

The directors present their report with the financial statements of the company for the year ended 31 March 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of bulk haulage.

DIVIDENDS

Interim dividends of £586,000 were paid during the year. The directors do not recommend the payment of a final dividend. The total distribution of dividends for the year ended 31 March 2022 will be £586,000.

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 April 2021 to the date of this report.

Mr A F Sherwood

Mrs S I Sherwood

Mr A P A Sherwood

Mr J A Sherwood

Mrs B H J Sherwood-Ratcliffe

Other changes in directors holding office are as follows:

Mr A J Disney was appointed as a director after 31 March 2022 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr A F Sherwood - Director

20 December 2022

Opinion

We have audited the financial statements of Fred Sherwood & Sons (Transport) Limited (the 'company') for the year ended 31 March 2022 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and 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 31 March 2022 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.

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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of property, plant and equipment, investment property valuations as well as the risk of inappropriate journal entries to manipulate reported profitability. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods and data used by management to make those estimates such as residual values and expected asset replacement cycles, reperforming the calculation, reviewing external property valuation reports and reviewing the outcomes of prior year and current year estimates since the financial reporting date.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included an assessment of the company's employment and health and safety controls for any evidence of non-compliance. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

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. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of 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 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.

Niall Kingsley ACA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Limited, Statutory Auditor

3 Princes Court

Royal Way

Loughborough

Leicestershire

LE11 5XR

22 December 2022

REVENUE

34,122,550

33,801,306

Cost of sales

31,973,719

31,924,572

GROSS PROFIT

2,148,831

1,876,734

Administrative expenses

1,540,143

1,541,452

608,688

335,282

Other operating income

384,364

495,857

OPERATING PROFIT

4

993,052

831,139

Group loans written off

5

100,000

-

893,052

831,139

Interest receivable and similar income

17,555

14,718

910,607

845,857

Interest payable and similar expenses

6

138,161

103,480

PROFIT BEFORE TAXATION

772,446

742,377

Tax on profit

7

348,357

90,949

PROFIT FOR THE FINANCIAL YEAR

424,089

651,428

PROFIT FOR THE YEAR

424,089

651,428

OTHER COMPREHENSIVE INCOME

Movement on deferred tax relating to

-

150,233

unrealised revaluation gains - freehold

property

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

150,233

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

424,089

801,661

FIXED ASSETS

Intangible assets

9

-

-

Property, plant and equipment

10

9,685,004

11,771,604

Investments

11

1,500

1,500

Investment property

12

1,661,000

1,661,000

11,347,504

13,434,104

CURRENT ASSETS

Inventories

13

145,366

79,742

Debtors

14

15,993,963

15,237,255

Cash at bank and in hand

43,162

366,905

16,182,491

15,683,902

CREDITORS

Amounts falling due within one year

15

12,704,387

12,943,688

NET CURRENT ASSETS

3,478,104

2,740,214

TOTAL ASSETS LESS CURRENT LIABILITIES

14,825,608

16,174,318

CREDITORS

Amounts falling due after more than one year

16

(3,526,319

)

(4,909,721

)

PROVISIONS FOR LIABILITIES

21

(609,046

)

(412,443

)

NET ASSETS

10,690,243

10,852,154

CAPITAL AND RESERVES

Called up share capital

22

79

79

Revaluation reserve

23

362,631

362,631

Capital redemption reserve

23

21

21

Retained earnings

23

10,327,512

10,489,423

SHAREHOLDERS' FUNDS

31

10,690,243

10,852,154

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2022 and were signed on its behalf by:

Mr A F Sherwood - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 April 2020

79

12,469,324

1,290,696

21

13,760,120

Changes in equity

Dividends

-

(3,709,627

)

-

-

(3,709,627

)

Total comprehensive income

-

1,729,726

(928,065

)

-

801,661

Balance at 31 March 2021

79

10,489,423

362,631

21

10,852,154

Changes in equity

Dividends

-

(586,000

)

-

-

(586,000

)

Total comprehensive income

-

424,089

-

-

424,089

Balance at 31 March 2022

79

10,327,512

362,631

21

10,690,243

1.	GENERAL INFORMATION

Fred Sherwood & Sons (Transport) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

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.

The financial statements cover the individual entity.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

The company is a subsidiary of Fred Sherwood Group Limited. Consolidated financial statements of Fred Sherwood Group Limited can be obtained from 47 Ashby Road Central, Shepshed, Loughborough, Leicestershire, LE12 9BS.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. Consolidated financial statements are prepared by the parent company, and are publicly available from 47 Ashby Road Central, Shepshed, Loughborough, Leicestershire, LE12 9BS.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

(i) Useful economic lives of property, plant and equipment

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) Investment property valuation

The company owns investment properties, the values of which are subject to the changing market conditions. The directors use previously obtained professional valuations together with knowledge of the markets to determine if a revaluation is needed. The valuers used observable market prices adjusted as necessary for any differences in the location or condition of the specific asset. The directors are of the opinion that, based on available market evidence, there were no material changes to the property valuations. The valuation of the properties is included in the financial statements at £1,661,000 (2021 - £1,661,000).

Revenue

Revenue is measured at fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue is recognised upon despatch of goods or on provision of services.

Property, plant and equipment

Property, plant and equipment assets are stated at cost (or deemed cost) less accumulated depreciation. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

2% Straight line (buildings only)

Plant and machinery

15% Reducing balance

Fixtures & fittings

15% Reducing balance

Computer equipment

33.3% Straight line

Motor vehicles

25% Reducing balance

Lorries and trailers

10% - 33% Straight line

Investments

Investment properties are shown at their most recent valuations. Any aggregate surplus or deficit arising from changes in fair value is recognised in the income statement.

Investment properties occupied by group companies are now shown within Property, plant and equipment following the triennial amendments to FRS102 and shown at deemed cost, and depreciated from the date of transition, 1 April 2018.

Other fixed asset investments are stated at cost plus/(less) revaluation to market value. These are valued on an open market basis by the directors.

Inventories

Inventories are valued at the lower of cost and fair value, after making due allowance for obsolete and slow moving items.

Inventories are accounted for on a first in, first out basis.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

The total net investment in finance leases included in the statement of financial position represents total lease payments receivable less earnings relating to future accounting periods. Interest is recognised in the income statement over the period of the lease on a straight line basis.

Assets acquired under finance leases or hire purchase contracts are capitalised as tangible assets and depreciation is provided accordingly. The capital element of future payments is treated as a liability; finance charges and interest are taken to the income statement on a straight line basis over the period of the agreement.

Rentals payable and receivable under operating leases are charged to the income statement on a straight line basis over the lease term.

Pension costs and other post-retirement benefits

The company operates defined contribution pension schemes. Contributions payable to the company pension schemes are charged to the income statement in the period to which they relate.

Financial instruments

The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the income statement.

Basic financial liabilities, including trade and other 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 receipts discounted at a market rate of interest.

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. Accounts 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.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the income statement.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment is recognised immediately in the income statement.

3.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

960,634

1,000,960

Social security costs

119,343

117,184

Other pension costs

51,549

68,222

1,131,526

1,186,366

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

2022

2021

Office and management

23

25

Services

14

14

37

39

2022

2021

£

£

Directors' remuneration

60,997

61,351

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

Money purchase schemes

3

3

An amount of £8,000 (2021 - £7,000) was received from group companies and included within other operating income in respect of directors' remuneration.

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2022

2021

£

£

Depreciation - owned assets

1,754,910

1,727,733

Depreciation - assets on hire purchase contracts

730,379

930,673

(Profit)/loss on disposal of fixed assets

(313,599

)

144

Auditors' remuneration

33,619

34,953

Rents receivable

(26,864

)

(144,441

)

Finance lease income receivable

(16,689

)

(15,069

)

Operating leases - Land and buildings

-

70,000

5.	EXCEPTIONAL ITEMS

2022

2021

£

£

Group loans written off

(100,000

)

-

During the year, the company waived repayment of group loans from one of the fellow group companies.

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Bank interest

49,375

26,122

Other loan interest

15,750

9,188

Interest payable

1,852

-

Hire purchase interest

71,184

68,170

138,161

103,480

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2022

2021

£

£

Current tax:

UK corporation tax

-

150,618

Adjustment re previous years

22,322

24

Group relief

129,432

4,244

Total current tax

151,754

154,886

Deferred tax

196,603

(63,937

)

Tax on profit

348,357

90,949

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

£

£

Profit before tax

772,446

742,377

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

146,765

141,052

Effects of:

Expenses not deductible for tax purposes

93,470

4,447

Income not taxable for tax purposes

(59,583

)

(349

)

Capital allowances in excess of depreciation

(51,220

)

-

Depreciation in excess of capital allowances

-

9,712

Adjustments to tax charge in respect of previous periods

22,322

24

Deferred tax

196,603

(63,937

)

Total tax charge

348,357

90,949

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 March 2022.

2021

Gross

Tax

Net

£

£

£

Movement on deferred tax relating to

150,233

-

150,233

unrealised revaluation gains - freehold

property

150,233

-

150,233

8.

DIVIDENDS

2022

2021

£

£

Ordinary shares of £1 each

Interim

586,000

3,709,627

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2021

and 31 March 2022

189,999

AMORTISATION

At 1 April 2021

and 31 March 2022

189,999

NET BOOK VALUE

At 31 March 2022

-

At 31 March 2021

-