ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

KBC LOGISTICS LIMITED - Company Information

Caseware UK (AP4) 2020.0.247 2020.0.247 2021-01-312021-01-31No description of principal activity2020-02-01178208falsefalsefalse 06468707 2020-02-01 2021-01-31 06468707 2019-02-01 2020-01-31 06468707 2021-01-31 06468707 2020-01-31 06468707 2019-02-01 06468707 5 2020-02-01 2021-01-31 06468707 5 2019-02-01 2020-01-31 06468707 d:Director1 2020-02-01 2021-01-31 06468707 d:Director2 2020-02-01 2021-01-31 06468707 d:RegisteredOffice 2020-02-01 2021-01-31 06468707 e:MotorVehicles 2020-02-01 2021-01-31 06468707 e:MotorVehicles 2021-01-31 06468707 e:MotorVehicles 2020-01-31 06468707 e:MotorVehicles e:OwnedOrFreeholdAssets 2020-02-01 2021-01-31 06468707 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2020-02-01 2021-01-31 06468707 e:FurnitureFittings 2020-02-01 2021-01-31 06468707 e:FurnitureFittings 2021-01-31 06468707 e:FurnitureFittings 2020-01-31 06468707 e:FurnitureFittings e:OwnedOrFreeholdAssets 2020-02-01 2021-01-31 06468707 e:FurnitureFittings e:LeasedAssetsHeldAsLessee 2020-02-01 2021-01-31 06468707 e:OwnedOrFreeholdAssets 2020-02-01 2021-01-31 06468707 e:LeasedAssetsHeldAsLessee 2020-02-01 2021-01-31 06468707 e:CurrentFinancialInstruments 2021-01-31 06468707 e:CurrentFinancialInstruments 2020-01-31 06468707 e:Non-currentFinancialInstruments 2021-01-31 06468707 e:Non-currentFinancialInstruments 2020-01-31 06468707 e:CurrentFinancialInstruments e:WithinOneYear 2021-01-31 06468707 e:CurrentFinancialInstruments e:WithinOneYear 2020-01-31 06468707 e:Non-currentFinancialInstruments e:AfterOneYear 2021-01-31 06468707 e:Non-currentFinancialInstruments e:AfterOneYear 2020-01-31 06468707 e:ReportableOperatingSegment1 2020-02-01 2021-01-31 06468707 e:ReportableOperatingSegment1 2019-02-01 2020-01-31 06468707 e:UKTax 2020-02-01 2021-01-31 06468707 e:UKTax 2019-02-01 2020-01-31 06468707 e:ShareCapital 2020-02-01 2021-01-31 06468707 e:ShareCapital 2021-01-31 06468707 e:ShareCapital 2019-02-01 2020-01-31 06468707 e:ShareCapital 2020-01-31 06468707 e:ShareCapital 2019-02-01 06468707 e:RetainedEarningsAccumulatedLosses 2020-02-01 2021-01-31 06468707 e:RetainedEarningsAccumulatedLosses 2021-01-31 06468707 e:RetainedEarningsAccumulatedLosses 2019-02-01 2020-01-31 06468707 e:RetainedEarningsAccumulatedLosses 2020-01-31 06468707 e:RetainedEarningsAccumulatedLosses 2019-02-01 06468707 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2021-01-31 06468707 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2020-01-31 06468707 d:OrdinaryShareClass1 2020-02-01 2021-01-31 06468707 d:OrdinaryShareClass1 2021-01-31 06468707 d:OrdinaryShareClass1 2020-01-31 06468707 d:FRS102 2020-02-01 2021-01-31 06468707 d:Audited 2020-02-01 2021-01-31 06468707 d:FullAccounts 2020-02-01 2021-01-31 06468707 d:PrivateLimitedCompanyLtd 2020-02-01 2021-01-31 06468707 e:WithinOneYear 2021-01-31 06468707 e:WithinOneYear 2020-01-31 06468707 e:BetweenOneFiveYears 2021-01-31 06468707 e:BetweenOneFiveYears 2020-01-31 06468707 e:HirePurchaseContracts e:WithinOneYear 2021-01-31 06468707 e:HirePurchaseContracts e:WithinOneYear 2020-01-31 06468707 e:HirePurchaseContracts e:BetweenOneFiveYears 2021-01-31 06468707 e:HirePurchaseContracts e:BetweenOneFiveYears 2020-01-31 06468707 e:AcceleratedTaxDepreciationDeferredTax 2021-01-31 06468707 e:AcceleratedTaxDepreciationDeferredTax 2020-01-31 06468707 2 2020-02-01 2021-01-31 06468707 7 2020-02-01 2021-01-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06468707

KBC LOGISTICS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

KBC LOGISTICS LIMITED

COMPANY INFORMATION

Directors	A Radzyminski
	D Ashford


Registered number	06468707


Registered office	Hanson Yard
	Botany Way
	Purfleet
	Essex
	RM19 1SR


Independent auditors	Haslers
	Chartered Accountants & Statutory Auditor
	Old Station Road
	Loughton
	Essex
	IG10 4PL

KBC LOGISTICS LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3
Directors' Responsibilities Statement	4
Independent Auditors' Report	5 - 7
Statement of Comprehensive Income	8
Balance Sheet	9
Statement of Changes in Equity	10
Statement of Cash Flows	11 - 12
Analysis of Net Debt	12
Notes to the Financial Statements	13 - 25

KBC LOGISTICS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 JANUARY 2021

Introduction

KBC is a specialist transport company that has grown entirely on recommendation.
We strive to bring operational excellence and integrity to all the transportation services we provide by delivering a safe, secure, reliable, high-quality service. We aim to build good strong relationships and customer loyalty through helping our customers gain a competitive advantage.

Business review

During last year, the Company has invested in increasing its fleet.
During the year, the Company contracted more HGV Drivers, and hired auxiliary personnel, and aims for a constant expansion in the year to follow inline with customer demand and new opportunities.
Due to continued demand during the year, the company has subcontracted work as well; this led to gaining the trust of our customers who can rely on the company when most needed and, subsequently, to a reasonably stress-free increase in profits.
The Company will continue to subcontract any work if still required.
The expansion will lead to an increase in assets, number of employees, clients, and subsequently increasing and improving the cash flows.

Principal risks and uncertainties

Economic conditions, political developments and changes in government policy affecting the markets in which the Company operates, whether at a global, regional or national level, could have a negative impact on the businesses and its ability to grow existing businesses and retain or win new contracts.
The Company business competes in the areas of pricing and service and face competition from a number of sources.
Fuel is a significant component of the Company’s operating costs. Fuel prices and supply levels can be influenced significantly by international, political and economic circumstances.

Financial key performance indicators

The KPI used to monitor the profitability of the business are:
   • Gross Profit margin ( Gross profit/Turnover)
   • Net Profit margin (Net profit/Turnover)
The KPI used to monitor the liquidity of the business are:
   • Quick ratio ( acid test ) (Current assets – Inventory/Current liabilities)
   • Receivable collection period ( Receivables/Turnover x365)

Page 1

KBC LOGISTICS LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Other key performance indicators

The company uses Non-Financial Performance Indicators as well.
• NFPIs are used mainly to monitor and control staff (staff turnover, absentee rates / sick days), and the
service quality.
Future developments
Our intention is to further increase our customer base both in the north and south.
In the north we continue to invest in commercial premises with a view to increasing the fleet and potentially expand into commercial property rental.
As a business it has always been the directors vision to innovate and create opportunities for expansion and we have successfully accomplished this aim to date.
We are always looking for new customer opportunities and work closely with our existing clients on a number of innovative projects.

This report was approved by the board on 27 October 2021 and signed on its behalf.

A Radzyminski

Director

Page 2

KBC LOGISTICS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 JANUARY 2021

The directors present their report and the financial statements for the year ended 31 January 2021.

Results and dividends

The profit for the year, after taxation, amounted to £1,430,327 (2020 - £1,005,969).

Dividends amounting to £24,300 (2019: £23,077) were paid in the year.

Directors

The directors who served during the year were:

A Radzyminski

D Ashford

Future developments

Our intention is to further increase our customer base both in the north and south, we have recently employed a business development manager and this investment is already creating further opportunities for expansion. To accompany this we have also liveried the fleet to give us better visibility in the marketplace.
In the north we have invested in premises with a view to increasing the fleet and to facilitate this and the southern expansion we have just purchased a number of new vehicles to update the existing fleet in both areas, improving our brand image overall.
As a business it has always been the directors vision to innovate and create opportunities for expansion and we have successfully accomplished this aim to date.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditors, Haslers, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 27 October 2021 and signed on its behalf.

................................................

A Radzyminski

Director

Page 3

KBC LOGISTICS LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 31 JANUARY 2021

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 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 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 for the Company's financial statements and then apply them consistently;

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

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4

KBC LOGISTICS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KBC LOGISTICS LIMITED

Opinion

We have audited the financial statements of KBC Logistics Limited (the 'Company') for the year ended 31 January 2021, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the 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).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 January 2021 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.

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.

Page 5

KBC LOGISTICS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KBC LOGISTICS LIMITED (CONTINUED)

Other information

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.

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Directors' Report 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 Directors' Report.

We have nothing to report in respect of the following matters in relation to which 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 Directors' Responsibilities Statement set out on page 4, 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 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 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.

Page 6

KBC LOGISTICS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KBC LOGISTICS LIMITED (CONTINUED)

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 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 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:

• Scrutinising journals, and other adjustments posted during the year for evidence of unusual entries.
• Carrying out substantive testing to cover authorisation of expenditure in line with the financial processes.
• Carrying out walkthrough testing to ensure internal controls are in place to prevent errors and fraud.
• Assessment of appropriateness of accounting estimates.
• Review of large and unusual bank transactions.

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.

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 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.

Christina Georgiou (Senior Statutory Auditor)

for and on behalf of

Haslers

Chartered Accountants

Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL

27 October 2021

Page 7

KBC LOGISTICS LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 JANUARY 2021

	2021	2020
Note	£	£


Turnover	4	29,263,344	25,735,889
Cost of sales		(24,275,924)	(21,353,052)
Gross profit		4,987,420	4,382,837
Administrative expenses		(3,302,994)	(3,032,266)
Other operating income	5	177,230	(3,536)
Operating profit	6	1,861,656	1,347,035
Interest receivable and similar income		-	77
Interest payable and similar expenses	10	(93,526)	(101,629)
Profit before tax		1,768,130	1,245,483
Tax on profit	11	(337,803)	(239,514)
Profit for the financial year		1,430,327	1,005,969

There were no recognised gains and losses for 2021 or 2020 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2021 (2020:£NIL).

The notes on pages 13 to 25 form part of these financial statements.

Page 8

KBC LOGISTICS LIMITED

REGISTERED NUMBER: 06468707

BALANCE SHEET

AS AT 31 JANUARY 2021

	2021	2021	2020	2020
Note	£	£	£	£

Fixed assets
Tangible assets	13		6,301,407		4,955,865
			6,301,407		4,955,865
Current assets
Stocks		119,234		104,925
Debtors: amounts falling due within one year	14	8,383,075		6,222,911
Cash at bank and in hand	15	142,151		260,399
		8,644,460		6,588,235
Creditors: amounts falling due within one year	16	(4,878,449)		(3,537,910)
Net current assets			3,766,011		3,050,325
Total assets less current liabilities			10,067,418		8,006,190
Creditors: amounts falling due after more than one year	17		(2,016,511)		(1,494,935)
Provisions for liabilities
Deferred tax	20	(240,585)		(106,960)
			(240,585)		(106,960)
Net assets			7,810,322		6,404,295

Capital and reserves
Called up share capital	22	100	100
Profit and loss account	21	7,810,222	6,404,195
		7,810,322	6,404,295

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 October 2021.

A Radzyminski

Director

The notes on pages 13 to 25 form part of these financial statements.

Page 9

KBC LOGISTICS LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 JANUARY 2021

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 February 2020	100	6,404,195	6,404,295
Comprehensive income for the year
Profit for the year	-	1,430,327	1,430,327
Total comprehensive income for the year	-	1,430,327	1,430,327
Dividends: Equity capital	-	(24,300)	(24,300)
Total transactions with owners	-	(24,300)	(24,300)
At 31 January 2021	100	7,810,222	7,810,322

The notes on pages 13 to 25 form part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 JANUARY 2020

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 February 2019	100	5,421,303	5,421,403
Comprehensive income for the year
Profit for the year	-	1,005,969	1,005,969
Total comprehensive income for the year	-	1,005,969	1,005,969
Dividends: Equity capital	-	(23,077)	(23,077)
Total transactions with owners	-	(23,077)	(23,077)
At 31 January 2020	100	6,404,195	6,404,295

The notes on pages 13 to 25 form part of these financial statements.

Page 10

KBC LOGISTICS LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JANUARY 2021

			2021	2020
			£	£

Cash flows from operating activities
Profit for the financial year	1,430,327	1,005,969
Adjustments for:
Depreciation of tangible assets	1,681,329	1,449,476
Loss on disposal of tangible assets	(251,424)	13,514
Government grants	(166,995)	-
Interest paid	93,526	101,629
Interest received	-	(77)
Taxation charge	337,802	239,516
(Increase) in stocks	(14,308)	(8,312)
(Increase) in debtors	(2,160,163)	(892,124)
Increase/(decrease) in creditors	653,369	(25,174)
Corporation tax (paid)	(145,430)	(210,670)
Net cash generated from operating activities	1,458,033	1,673,747

Cash flows from investing activities
Purchase of tangible fixed assets	(3,341,514)	(2,040,526)
Sale of tangible fixed assets	566,068	155,499
Government grants received	166,995	-
Interest received	-	77
HP interest paid	(92,783)	(97,395)
Net cash from investing activities	(2,701,234)	(1,982,345)

Page 11

KBC LOGISTICS LIMITED

STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

		2021	2020
		£	£


Cash flows from financing activities
Repayment of/new finance leases	1,062,156	205,379
Dividends paid	-	(23,077)
Interest paid	(743)	(4,234)
Net cash used in financing activities	1,061,413	178,068
Net (decrease) in cash and cash equivalents	(181,788)	(130,530)
Cash and cash equivalents at beginning of year	108,353	238,883
Cash and cash equivalents at the end of year	(73,435)	108,353

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	142,151	260,399
Bank overdrafts	(215,586)	(152,046)
	(73,435)	108,353

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 JANUARY 2021


At 1 February 2020	Cash flows	New finance leases	At 31 January 2021
£	£	£	£

Cash at bank and in hand	260,399	(118,248)	-	142,151
Bank overdrafts	(152,046)	(63,540)	-	(215,586)
Debt due within 1 year	(185,876)	(77,039)	-	(262,915)
Finance leases	(2,930,631)	-	(1,062,156)	(3,992,787)
	(3,008,154)	(258,827)	(1,062,156)	(4,329,137)

The notes on pages 13 to 25 form part of these financial statements.

Page 12

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

1.	General information

KBC Logistics Limited is a private company limited by shares, incorporated in England and Wales. The registered office is Hanson Yard, Botany Way, Purfleet, Essex, RM19 1SR.

2.Accounting policies

2.1

Basis of preparation of financial statements

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 management to exercise judgement in applying the Company's accounting policies (see note 3).

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

The following principal accounting policies have been applied:

2.2

Going concern

The financial statements have been prepared on a going concern basis under the historical cost convention.

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue is recognised on the date the transport service takes place.

2.4

Tangible fixed assets

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.

Depreciation is provided on the following basis:

				Motor vehicles	-	25%	reducing balance
				Fixtures and fittings	-	25%	straight line

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 within 'administrative expenses' in the Statement of Comprehensive Income.

Page 13

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2.Accounting policies (continued)

2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

2.6

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.7

Stocks

Stocks are stated at the lower of cost and net realisable value.

2.8

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.10

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other
third parties, loans to related parties and investments in non-puttable ordinary shares.

2.11

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 14

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2.Accounting policies (continued)

2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

2.13

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2.15

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2.Accounting policies (continued)

2.16

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date.

2.17

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.18

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.19

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 16

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the company's accounting policies, the directors are required to make judgements, estimates
and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements,
estimates and assumptions are based on the best and most reliable evidence available at the time when
the decisions are made, and are based on the historical experience and other factors that are considered
to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and
assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis,. Revisions to accounting
estimates are recognised in the period which the estimate is revised, if the revision affects only that
period, or in the period of revision and future periods, if the revision affects both current and future
periods.
Management considers that there are no judgements that have been made in the process of applying the
entity's accounting policies that have a significant effect on the financial statements. Furthermore,
management considers that there are no areas of estimation uncertainty at the balance sheet date that
have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities
within the next financial year.

4.	Turnover
		2021	2020
		£	£

Transport services	29,263,344	25,735,889
	29,263,344	25,735,889

5.	Other operating income
		2021	2020
		£	£

Other operating income	9,068	-
Government grants receivable	166,995	-
Foreign exchange difference - gain	1,167	(3,536)
	177,230	(3,536)

Exchange differences

(8,778)

3,536

Page 17

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

7.	Auditors' remuneration
		2021	2020
		£	£

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements

12,350

11,375

Fees payable to the Company's auditor and its associates in respect of:
Taxation compliance services	625	625
	625	625

Wages and salaries	7,902,888	6,804,460
Social security costs	777,213	624,644
Cost of defined contribution scheme	161,564	259,216
	8,841,665	7,688,320

The average monthly number of employees, including the directors, during the year was as follows:

	2021	2020
	No.	No.

Sales and administartion	178	208

9.	Directors' remuneration
		2021	2020
		£	£

Directors' emoluments	82,784	59,535
Company contributions to defined contribution pension schemes	40,808	80,117
	123,592	139,652

Page 18

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

10.	Interest payable and similar expenses
		2021	2020
		£	£

Other loan interest payable	743	4,234
Finance leases and hire purchase contracts	92,783	97,395
	93,526	101,629

Corporation tax
Current tax on profits for the year	204,178	145,469
	204,178	145,469

Total current tax	204,178	145,469

Deferred tax
Origination and reversal of timing differences	133,625	94,045
Total deferred tax	133,625	94,045


	Taxation on profit on ordinary activities	337,803	239,514

Page 19

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

11.Taxation (continued)

Profit on ordinary activities before tax

1,768,130

1,245,484

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	335,945	236,642
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	1,858	5,440
Other differences leading to an increase (decrease) in the tax charge	-	(2,568)
Total tax charge for the year	337,803	239,514

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

12.	Dividends
		2021	2020
		£	£

	Ordinary shares	24,300	23,077
		24,300	23,077

Page 20

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

13.	Tangible fixed assets

	Motor vehicles	Fixtures and fittings	Total
	£	£	£
Cost or valuation
At 1 February 2020	10,628,368	189,594	10,817,962
Additions	3,282,106	33,477	3,315,583
Disposals	(1,602,924)	-	(1,602,924)
At 31 January 2021	12,307,550	223,071	12,530,621
Depreciation
At 1 February 2020	5,730,444	131,653	5,862,097
Charge for the year on owned assets	470,766	30,004	500,770
Charge for the year on financed assets	1,154,627	-	1,154,627
Disposals	(1,288,280)	-	(1,288,280)
At 31 January 2021	6,067,557	161,657	6,229,214
Net book value
At 31 January 2021	6,239,993	61,414	6,301,407
At 31 January 2020	4,897,924	57,941	4,955,865

14.

Debtors

					2021	2020
					£	£


Trade debtors	4,451,648	3,730,849
Other debtors	2,645,678	1,748,707
Prepayments and accrued income	1,285,749	743,355
	8,383,075	6,222,911

Page 21

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

15.	Cash and cash equivalents
		2021	2020
		£	£

Cash at bank and in hand	142,151	260,399
Less: bank overdrafts	(215,586)	(152,046)
	(73,435)	108,353

16.	Creditors: Amounts falling due within one year
		2021	2020
		£	£

Bank overdrafts	215,586	152,046
Trade creditors	1,557,340	942,635
Corporation tax	204,251	145,503
Other taxation and social security	179,801	134,323
Obligations under finance lease and hire purchase contracts	1,976,276	1,435,696
Other creditors	354,283	346,821
Accruals and deferred income	390,912	380,886
	4,878,449	3,537,910

The following liabilities were secured:
	2021	2020
	£	£


Bank overdrafts	215,550	152,046
	215,550	152,046

Details of security provided:

The company has an invoice finance facility with its bankers. Balances due are secured on the assets of the company.

Page 22

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

17.	Creditors: Amounts falling due after more than one year
		2021	2020
		£	£

Net obligations under finance leases and hire purchase contracts	2,016,511	1,494,935
	2,016,511	1,494,935

Within one year	1,976,276	1,435,696
Between 1-5 years	2,016,511	1,494,935
	3,992,787	2,930,631

19.	Financial instruments
		2021	2020
		£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	142,151	260,399

Financial assets measured at fair value through profit or loss comprise cash and cash equivalents.

20.	Deferred taxation

		2021
		£

	At beginning of year	(106,960)
	Charged to the profit or loss	(133,625)
	Utilised in year	-
	At end of year	(240,585)

Page 23

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

20.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:
	2021	2020
	£	£

	Accelerated capital allowances	(240,585)	(106,960)
		(240,585)	(106,960)

21.

Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

22.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

100 (2020 - 100) Ordinary shares of £1.00 each	100	100

23.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £198,647 (2020 - £259,216). Contributions totalling £11,248 (2020 - £9,469) were payable to the fund at the balance sheet date and are included in creditors.

Not later than 1 year	257,000	172,000
Later than 1 year and not later than 5 years	414,583	267,833
	671,583	439,833

Page 24

KBC LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

25.	Related party transactions
	At the year end the following amounts were due from/(to):

		2021	2020
		£	£

Entities under common control	2,516,413	1,544,186
Key management personnel of the entity (in aggregate)	(238,615)	(185,876)
Other related parties	(71,940)	(71,940)
	2,205,858	1,286,370

26.	Controlling party

The ultimate controlling party is A Radzyminski by virtue of his majority shareholding.

Page 25