Andyfreight Holdings Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04803928 (England and Wales)

ANDYFREIGHT HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

8

Consolidated Statement of Financial Position

9

Company Statement of Financial Position

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Statement of Cash Flows

13

Notes to the Consolidated Statement of Cash Flows

14

Notes to the Consolidated Financial Statements

16

DIRECTOR:

Mr A.D. Pountney

SECRETARY:

Mrs M.K. Pountney

REGISTERED OFFICE:

Andyfreight Business Park

Folkes Road

Lye

Stourbridge

West Midlands

DY9 8RB

REGISTERED NUMBER:

04803928 (England and Wales)

AUDITORS:

Folkes Worton LLP

Chartered Accountants and Statutory Auditor

15-17 Church Street

Stourbridge

West Midlands

DY8 1LU

BANKERS:

Lloyds Bank plc

134 High Street

Stourbridge

West Midlands

DY8 1DS

The director presents his strategic report of the company and the group for the year ended 31 October 2021.

REVIEW OF BUSINESS

The results for the year and financial position of the group are as shown in the annexed consolidated financial statements.

The director considers the key performance indicators to be gross profit, operating profit and net assets, which communicate the financial performance and strength of the group and are all disclosed within the body of the financial statements.

The decrease in sales reflects decreased trading activity within the group of companies. Consistent control of overhead costs has been reflected the trading results and the subsequent increase in net profit and net assets, demonstrating the value of the policies adopted by the group.

From knowledge and information available currently, the director feels that consistent application of group policies will enable them to compete in what continues to be a difficult market.

PRINCIPAL RISKS AND UNCERTAINTIES

The group's activities expose it to a number of financial risks including credit risk and price risk.

Credit risk

The group's principal financial assets are trade and other receivables. The group's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The group has no significant concentration of credit risk, with exposure spread over a large number of counterparts and customers.

Price risk

The group is exposed to commodity price risk, but endeavours to manage this risk.

ON BEHALF OF THE BOARD:

Mr A.D. Pountney - Director

16 March 2022

The director presents his report with the financial statements of the company and the group for the year ended 31 October 2021.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of haulage contractor.

DIVIDENDS

Interim dividends per share were paid during the year as follows:

Ordinary A £1

-

£1080

Ordinary B £1

-

£20000

The total distribution of dividends for the year ended 31 October 2021 will be £ 128,000 .

DIRECTOR

Mr A.D. Pountney held office during the whole of the period from 1 November 2020 to the date of this report.

His beneficial interests in the shares of the company, according to the register of directors' interests, were as follows:

31.10.21

1.11.20

Ordinary A shares of £1 each

100

100

He did not hold any beneficial interests in the Ordinary B shares of £1 each.

He did not hold any non-beneficial interests in any of the shares of the company.

POLITICAL DONATIONS AND EXPENDITURE

During the year, the group did not make any political donations and incurred no political expenditure.

The group made charitable donations amounting to £2,400.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Folkes Worton LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr A.D. Pountney - Director

16 March 2022

Opinion

We have audited the financial statements of Andyfreight Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2021 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 October 2021 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has 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:

Based on our understanding of the group, the company and their industry, we identified the principal risks of non-compliance with laws and regulations and we considered the extent to which non-compliance might have a material effect on the financial statements We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgements. In response to the above identified risks audit procedures were designed to appropriately drawn conclusions. Audit procedures such as;

-Reviewing and challenging journal entries, in particular unusual account combinations;

-Challenging assumptions and judgements made by management in their significant accounting estimates; and

-Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud

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. For example, the further removed non-compliance with laws and regulations (irregularities) 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. In addition, as with any audit, there remains a risk of not detecting irregularities, as these may include collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities 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.

Neil Smith BSc FCA (Senior Statutory Auditor)

for and on behalf of Folkes Worton LLP

Chartered Accountants and Statutory Auditor

15-17 Church Street

Stourbridge

West Midlands

DY8 1LU

16 March 2022

TURNOVER

6,579,025

5,463,188

Cost of sales

4,267,261

3,643,518

GROSS PROFIT

2,311,764

1,819,670

Administrative expenses

1,203,736

1,109,014

1,108,028

710,656

Other operating income

27,808

104,742

OPERATING PROFIT

4

1,135,836

815,398

Interest receivable and similar income

11

10

1,135,847

815,408

Interest payable and similar expenses

5

54,944

55,918

PROFIT BEFORE TAXATION

1,080,903

759,490

Tax on profit

6

175,077

153,714

PROFIT FOR THE FINANCIAL YEAR

905,826

605,776

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

905,826

605,776

Profit attributable to:

Owners of the parent

905,826

605,776

Total comprehensive income attributable to:

Owners of the parent

905,826

605,776

FIXED ASSETS

Tangible assets

9

5,908,855

5,169,513

Investments

10

-

-

5,908,855

5,169,513

CURRENT ASSETS

Stocks

11

53,236

58,702

Debtors

12

1,507,751

1,178,153

Investments

13

28,148

11,000

Cash at bank and in hand

1,184,017

1,144,458

2,773,152

2,392,313

CREDITORS

Amounts falling due within one year

14

2,134,495

2,245,056

NET CURRENT ASSETS

638,657

147,257

TOTAL ASSETS LESS CURRENT LIABILITIES

6,547,512

5,316,770

CREDITORS

Amounts falling due after more than one year

15

(1,568,516

)

(1,230,673

)

PROVISIONS FOR LIABILITIES

19

(408,563

)

(293,490

)

NET ASSETS

4,570,433

3,792,607

CAPITAL AND RESERVES

Called up share capital

20

101

101

Retained earnings

4,570,332

3,792,506

SHAREHOLDERS' FUNDS

4,570,433

3,792,607

The financial statements were approved by the director and authorised for issue on 16 March 2022 and were signed by:

Mr A.D. Pountney - Director

FIXED ASSETS

Tangible assets

9

3,306,360

2,950,543

Investments

10

100

100

3,306,460

2,950,643

CURRENT ASSETS

Debtors

12

135,190

229,331

Investments

13

28,148

11,000

Cash at bank

748,086

520,892

911,424

761,223

CREDITORS

Amounts falling due within one year

14

443,059

952,608

NET CURRENT ASSETS/(LIABILITIES)

468,365

(191,385

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,774,825

2,759,258

CREDITORS

Amounts falling due after more than one year

15

(1,135,713

)

(856,725

)

PROVISIONS FOR LIABILITIES

19

(34,897

)

(33,870

)

NET ASSETS

2,604,215

1,868,663

CAPITAL AND RESERVES

Called up share capital

20

101

101

Retained earnings

2,604,114

1,868,562

SHAREHOLDERS' FUNDS

2,604,215

1,868,663

Company's profit for the financial year

863,552

289,472

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the director and authorised for issue on 16 March 2022 and were signed by:

Mr A.D. Pountney - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2019

101

3,314,730

3,314,831

Changes in equity

Dividends

-

(128,000

)

(128,000

)

Total comprehensive income

-

605,776

605,776

Balance at 31 October 2020

101

3,792,506

3,792,607

Changes in equity

Dividends

-

(128,000

)

(128,000

)

Total comprehensive income

-

905,826

905,826

Balance at 31 October 2021

101

4,570,332

4,570,433

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2019

101

1,707,090

1,707,191

Changes in equity

Dividends

-

(128,000

)

(128,000

)

Total comprehensive income

-

289,472

289,472

Balance at 31 October 2020

101

1,868,562

1,868,663

Changes in equity

Dividends

-

(128,000

)

(128,000

)

Total comprehensive income

-

863,552

863,552

Balance at 31 October 2021

101

2,604,114

2,604,215

Cash flows from operating activities

Cash generated from operations

1

1,182,784

1,977,050

Interest paid

(33,536

)

(32,695

)

Interest element of hire purchase payments paid

(21,408

)

(23,223

)

Tax paid

(139,287

)

(44,687

)

Net cash from operating activities

988,553

1,876,445

Cash flows from investing activities

Purchase of tangible fixed assets

(793,216

)

(732,834

)

Sale of tangible fixed assets

34,733

135,950

Purchase of current asset investments

(17,147

)

-

Interest received

11

10

Net cash from investing activities

(775,619

)

(596,874

)

Cash flows from financing activities

New loans in year

600,000

-

Loan repayments in year

(215,212

)

(121,952

)

Government grants received

27,808

104,742

Capital repayments in year

(446,050

)

(493,729

)

Amount introduced by directors

20,000

-

Amount withdrawn by directors

(31,921

)

(79

)

Equity dividends paid

(128,000

)

(128,000

)

Net cash from financing activities

(173,375

)

(639,018

)

Increase in cash and cash equivalents

39,559

640,553

Cash and cash equivalents at beginning of year

2

1,144,458

503,905

Cash and cash equivalents at end of year

2

1,184,017

1,144,458

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2021

2020

£

£

Profit before taxation

1,080,903

759,490

Depreciation charges

560,212

555,105

Loss/(profit) on disposal of fixed assets

67,351

(4,805

)

Government grants

(27,808

)

(104,742

)

Finance costs

54,944

55,918

Finance income

(11

)

(10

)

1,735,591

1,260,956

Decrease in stocks

5,466

16,078

Increase in trade and other debtors

(329,598

)

(42,196

)

(Decrease)/increase in trade and other creditors

(228,675

)

742,212

Cash generated from operations

1,182,784

1,977,050

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 October 2021

31/10/21

1/11/20

£

£

Cash and cash equivalents

1,184,017

1,144,458

Year ended 31 October 2020

31/10/20

1/11/19

£

£

Cash and cash equivalents

1,144,458

503,905

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/11/20

Cash flow

At 31/10/21

£

£

£

Net cash

Cash at bank and in hand

1,144,458

39,559

1,184,017

1,144,458

39,559

1,184,017

Liquid resources

Current asset investments

11,000

17,148

28,148

11,000

17,148

28,148

Debt

Finance leases

(748,275

)

(162,373

)

(910,648

)

Debts falling due within 1 year

(124,300

)

(105,800

)

(230,100

)

Debts falling due after 1 year

(856,725

)

(278,988

)

(1,135,713

)

(1,729,300

)

(547,161

)

(2,276,461

)

Total

(573,842

)

(490,454

)

(1,064,296

)

1.	STATUTORY INFORMATION

Andyfreight Holdings 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 General Information page.

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.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided during the period in the normal course of business, and is shown net of value added tax and other sales related taxes. The fair value of consideration takes into account trade discounts.

Revenue from the supply of services is recognised when:

- the amount of the revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the entity; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

Tangible assets are initially measured at cost. After initial recognition, tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

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

Freehold buildings

-

2% on cost

Plant and machinery

-

Varying from 20% to 25% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

Varying from 20% to 25% on reducing balance

No depreciation is provided on freehold land

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

Government grants

Government grants are accounted for under the accrual model in which revenue grants are recognised in income on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated amount recoverable from the consumption of stocks less other costs in carrying out the service. Cost is based on the cost of purchase on a first in first out basis.

At each reporting date, an assessment is made for impairment, being any excess of the carrying amount of stocks over its estimated recoverable value. The impairment loss, and any subsequent reversal, is recognised in the statement of comprehensive income.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

2,082,368

1,834,329

Social security costs

187,447

169,974

Other pension costs

123,900

120,761

2,393,715

2,125,064

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

2021

2020

Director

1

1

Administration

8

8

Warehouse

7

7

Drivers

41

39

57

55