Whittle Eastern Europe Logistics Ltd. - Limited company accounts 22.3

REGISTERED NUMBER: 02952798 (England and Wales)

WHITTLE EASTERN EUROPE LOGISTICS LTD.

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2022

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

N Sabanovic

V Pasternak

SECRETARY:

M Sabanovic

REGISTERED OFFICE:

Suites 1 & 7

The Printworks

Hey Road

Barrow

Lancashire

BB7 9WA

REGISTERED NUMBER:

02952798 (England and Wales)

AUDITORS:

DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

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

The directors aim to present a balanced review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and complexity of the business.

REVIEW OF BUSINESS

During the year the company generated profits after tax of £244k (2021: £242k) and at the year end had net assets of £3.8m (2021: £3.5m).

As a freight forwarding agent the company continues to organise transport cargo movements to and from the UK and Eastern European countries on behalf of their customers. The company continues to focus on five main geographical areas as follows:

- Balkan Countries

- CIS Countries

- Czech Republic / Slovakia

- Hungary

- Poland

The directors have maintained an adequate level of business performance in the year, achieving revenue figures of £20.5m (2021: £18.3m). The directors are pleased with the results as the economic environment remains challenging. Despite these tough trading conditions sales have been strong and positive.

UK freight forwarding is a competitive industry and margins achieved are quite low. It remains a challenge to maintain high levels of service at competitive prices. The directors continue to monitor the effect of currency movements in the Eurozone, given that a proportion of the company's costs are in Euros.

Despite the above challenges, the year end results are very positive.

KEY PERFORMANCE INDICATORS

The key performance indicators utilised in the business include turnover growth, gross profit margin, debtors collections.

RISK MANAGEMENT AND FUTURE DEVELOPMENTS

The company does not have written risk management policies and guidelines, however the directors meet periodically to analyse and formulate measures to manage the company's exposure to market risk, including changes in interest rates and foreign currency exchange rates.

The principal risks facing the company relate primarily to the financial risks of changes in foreign currency exchange rates and the impact of Brexit on these, and on European trade.

Both Brexit and Covid continue to impact logistics industry. There will be additional administrative tasks for every export and import coming to the UK. The company is continuing to train all staff on new formalities and procedures.

ON BEHALF OF THE BOARD:

N Sabanovic - Director

2 January 2023

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of international freight forwarding, specialising in Eastern and Central Europe.

DIVIDENDS

No dividends will be distributed for the year ended 31 May 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2021 to the date of this report.

N Sabanovic

V Pasternak

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), 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 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 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.

AUDITORS

DTE Business Advisers Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:

N Sabanovic - Director

2 January 2023

Opinion

We have audited the financial statements of Whittle Eastern Europe Logistics Ltd. (the 'company') for the year ended 31 May 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 May 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety at Work 1974, Employment Act 2008 and General Data Protection Regulations (GDPR).

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to assessing of accruals level at the year end and estimated useful life of the assets.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.

- Testing key revenue lines, in particular cut-off and walk-through, for evidence of management bias.

- Reviewing and testing control procedures.

- Performing a physical verification of key assets.

- Obtaining third-party confirmation of material bank and loan balances.

- Documenting and verifying all significant related party balances and transactions.

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 primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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.

Richard Bell (Senior Statutory Auditor)

for and on behalf of DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

2 January 2023

REVENUE

3

20,472,266

18,346,590

Cost of sales

(16,500,756

)

(14,972,731

)

GROSS PROFIT

3,971,510

3,373,859

Administrative expenses

(3,633,053

)

(3,114,143

)

338,457

259,716

Other operating income

19,650

90,520

OPERATING PROFIT

5

358,107

350,236

Interest receivable and similar income

6

14,838

10,007

372,945

360,243

Interest payable and similar expenses

7

(72,598

)

(59,831

)

PROFIT BEFORE TAXATION

300,347

300,412

Tax on profit

8

(56,181

)

(58,104

)

PROFIT FOR THE FINANCIAL YEAR

244,166

242,308

PROFIT FOR THE YEAR

244,166

242,308

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

244,166

242,308

FIXED ASSETS

Property, plant and equipment

9

51,296

54,574

CURRENT ASSETS

Debtors

10

3,182,063

3,441,668

Cash at bank and in hand

7,486,842

6,025,807

10,668,905

9,467,475

CREDITORS

Amounts falling due within one year

11

(6,948,079

)

(5,994,093

)

NET CURRENT ASSETS

3,720,826

3,473,382

TOTAL ASSETS LESS CURRENT LIABILITIES

3,772,122

3,527,956

CAPITAL AND RESERVES

Called up share capital

14

5,000

5,000

Retained earnings

15

3,767,122

3,522,956

SHAREHOLDERS' FUNDS

3,772,122

3,527,956

The financial statements were approved by the Board of Directors and authorised for issue on 2 January 2023 and were signed on its behalf by:

N Sabanovic - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2020

5,000

3,280,648

3,285,648

Changes in equity

Total comprehensive income

-

242,308

242,308

Balance at 31 May 2021

5,000

3,522,956

3,527,956

Changes in equity

Total comprehensive income

-

244,166

244,166

Balance at 31 May 2022

5,000

3,767,122

3,772,122

1.	STATUTORY INFORMATION

Whittle Eastern Europe Logistics Ltd. is a company registered in England and Wales. Its registered number is 02952798 and its registered office address is Suites 1 & 7, The Printworks, Hey Road, Barrow, Lancashire, BB7 9WA.

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 under the historical cost convention.

Going concern

The company has reported a net profit before tax of £300,347 (2021: £300,412) and has net assets at the year end of £3,772,122 (2021: £3,527,956). The company holds cash reserves of £7,486,842 at the year end and is well placed to continue to its position as a market leader in the shipping and distribution sector. Post year end the company continues to grow and increased profits have been reported. As such the going concern basis is considered appropriate by the directors.

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.

Revenue

Revenue comprises the aggregate of the fair value of the sale of services provided, net of value-added tax, rebates and discounts. Revenue is recognised when a service has been provided to the customer.

Property, plant and equipment

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

10% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

25% on cost

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short term liquid investments with original maturities of three months or less.

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102.

During the year the company has benefitted from the Government Coronavirus Job Retention Scheme ('Furlough'). Furlough income has been recognised in "other income" in the same period as the related wage costs.

The company has not directly benefitted from any other forms of government assistance.

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.

Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leasing commitments

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

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 income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost.

Critical accounting estimates and judgements

In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

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

Estimating the useful economic life of an asset and the anticipated residual value are considered a key judgement in calculating an appropriate depreciation charge.

The directors use their judgement in assessing the level of accruals at the year end date.

3.

REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

4.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

3,171,226

2,692,833

Other pension costs

108,096

95,658

3,279,322

2,788,491

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

2022

2021

Administration

7

8

Sales

30

29

37

37

2022

2021

£

£

Directors' remuneration

2,011,121

1,649,501

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2022

2021

£

£

Emoluments etc

1,190,302

975,377

5.	OPERATING PROFIT

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

2022

2021

£

£

Other operating leases

75,944

80,580

Depreciation - owned assets

24,885

27,421

Profit on disposal of fixed assets

(600

)

-

Auditors' remuneration

9,500

7,500

Foreign exchange differences

(54,096

)

14,014

Government grants

(1,837

)

(85,191

)

6.

INTEREST RECEIVABLE AND SIMILAR INCOME

2022

2021

£

£

Bank interest receivable

14,838

10,007

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Interest on directors' current accounts

72,598

59,831

8.

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

-

185,789

Deferred tax

56,181

(127,685

)

Tax on profit

56,181

58,104

Reconciliation of total tax charge included in profit and loss

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

2022

2021

£

£

Profit before tax

300,347

300,412

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

57,066

57,078

Effects of:

Expenses not deductible for tax purposes

233

1,029

Capital allowances in excess of depreciation

(1,118

)

(3

)

rate

Total tax charge

56,181

58,104

9.	PROPERTY, PLANT AND EQUIPMENT

Improvements

Fixtures

to

and

Computer

property

fittings

equipment

Totals

£

£

£

£

COST

At 1 June 2021

116,467

14,800

68,132

199,399

Additions

-

9,846

11,761

21,607

Disposals

-

-

(17,420

)

(17,420

)

At 31 May 2022

116,467

24,646

62,473

203,586

DEPRECIATION

At 1 June 2021

81,529

13,782

49,514

144,825

Charge for year

11,647

1,503

11,735

24,885

Eliminated on disposal

-

-

(17,420

)

(17,420

)

At 31 May 2022

93,176

15,285

43,829

152,290

NET BOOK VALUE

At 31 May 2022

23,291

9,361

18,644

51,296

At 31 May 2021

34,938

1,018

18,618

54,574

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

2,773,913

2,979,660

Amounts owed by group undertakings

282,900

282,900

Other debtors

67,635

65,339

Tax

27

-

Deferred tax asset

57,588

113,769

3,182,063

3,441,668

Deferred tax asset

2022

2021

£

£

Accelerated capital allowances

(9,746

)

(8,687

)

Other timing differences

67,334

122,456

57,588

113,769

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

2,174,150

2,172,956

Corporation tax

-

185,762

Social security and other taxes

39,503

14,224

Other creditors

3,341,340

2,228,065

Directors' current accounts

1,393,086

1,393,086

6,948,079

5,994,093

12.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2022

2021

£

£

Within one year

57,848

58,868

Between one and five years

90,567

148,415

148,415

207,283

13.	DEFERRED TAX

£

Balance at 1 June 2021

(113,769

)

Utilised during year

56,595

Accelerated capital allowances

(414

)

Balance at 31 May 2022

(57,588

)