ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Unaudited 2021

2EXCEL LOGISTICS LIMITED - Company Information

Caseware UK (AP4) 2022.0.179 2022.0.179 2022-03-312022-03-31haulage and logistics602021-04-0145falsefalsefalse 06939313 2021-04-01 2022-03-31 06939313 2020-04-01 2021-03-31 06939313 2022-03-31 06939313 2021-03-31 06939313 2020-04-01 06939313 c:Director1 2021-04-01 2022-03-31 06939313 c:Director2 2021-04-01 2022-03-31 06939313 c:Director3 2021-04-01 2022-03-31 06939313 c:RegisteredOffice 2021-04-01 2022-03-31 06939313 d:Buildings d:ShortLeaseholdAssets 2021-04-01 2022-03-31 06939313 d:Buildings d:ShortLeaseholdAssets 2022-03-31 06939313 d:Buildings d:ShortLeaseholdAssets 2021-03-31 06939313 d:LandBuildings 2022-03-31 06939313 d:LandBuildings 2021-03-31 06939313 d:PlantMachinery 2021-04-01 2022-03-31 06939313 d:PlantMachinery 2022-03-31 06939313 d:PlantMachinery 2021-03-31 06939313 d:PlantMachinery d:OwnedOrFreeholdAssets 2021-04-01 2022-03-31 06939313 d:MotorVehicles 2021-04-01 2022-03-31 06939313 d:MotorVehicles 2022-03-31 06939313 d:MotorVehicles 2021-03-31 06939313 d:MotorVehicles d:OwnedOrFreeholdAssets 2021-04-01 2022-03-31 06939313 d:OwnedOrFreeholdAssets 2021-04-01 2022-03-31 06939313 d:Goodwill 2021-04-01 2022-03-31 06939313 d:Goodwill 2022-03-31 06939313 d:Goodwill 2021-03-31 06939313 d:ComputerSoftware 2022-03-31 06939313 d:ComputerSoftware 2021-03-31 06939313 d:CurrentFinancialInstruments 2022-03-31 06939313 d:CurrentFinancialInstruments 2021-03-31 06939313 d:Non-currentFinancialInstruments 2022-03-31 06939313 d:Non-currentFinancialInstruments 2021-03-31 06939313 d:CurrentFinancialInstruments d:WithinOneYear 2022-03-31 06939313 d:CurrentFinancialInstruments d:WithinOneYear 2021-03-31 06939313 d:Non-currentFinancialInstruments d:AfterOneYear 2022-03-31 06939313 d:Non-currentFinancialInstruments d:AfterOneYear 2021-03-31 06939313 d:ReportableOperatingSegment1 2021-04-01 2022-03-31 06939313 d:ReportableOperatingSegment1 2020-04-01 2021-03-31 06939313 e:UnitedKingdom 2021-04-01 2022-03-31 06939313 e:UnitedKingdom 2020-04-01 2021-03-31 06939313 d:UKTax 2021-04-01 2022-03-31 06939313 d:UKTax 2020-04-01 2021-03-31 06939313 d:ShareCapital 2021-04-01 2022-03-31 06939313 d:ShareCapital 2022-03-31 06939313 d:ShareCapital 2020-04-01 2021-03-31 06939313 d:ShareCapital 2021-03-31 06939313 d:ShareCapital 2020-04-01 06939313 d:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 06939313 d:RetainedEarningsAccumulatedLosses 2022-03-31 06939313 d:RetainedEarningsAccumulatedLosses 2020-04-01 2021-03-31 06939313 d:RetainedEarningsAccumulatedLosses 2021-03-31 06939313 d:RetainedEarningsAccumulatedLosses 2020-04-01 06939313 d:AcceleratedTaxDepreciationDeferredTax 2022-03-31 06939313 d:AcceleratedTaxDepreciationDeferredTax 2021-03-31 06939313 d:TaxLossesCarry-forwardsDeferredTax 2022-03-31 06939313 d:TaxLossesCarry-forwardsDeferredTax 2021-03-31 06939313 d:OtherDeferredTax 2022-03-31 06939313 d:OtherDeferredTax 2021-03-31 06939313 c:FRS102 2021-04-01 2022-03-31 06939313 c:Audited 2021-04-01 2022-03-31 06939313 c:FullAccounts 2021-04-01 2022-03-31 06939313 c:PrivateLimitedCompanyLtd 2021-04-01 2022-03-31 06939313 d:WithinOneYear 2022-03-31 06939313 d:WithinOneYear 2021-03-31 06939313 d:BetweenOneFiveYears 2022-03-31 06939313 d:BetweenOneFiveYears 2021-03-31 06939313 d:HirePurchaseContracts d:WithinOneYear 2022-03-31 06939313 d:HirePurchaseContracts d:WithinOneYear 2021-03-31 06939313 d:HirePurchaseContracts d:BetweenOneFiveYears 2022-03-31 06939313 d:HirePurchaseContracts d:BetweenOneFiveYears 2021-03-31 06939313 d:Goodwill d:ExternallyAcquiredIntangibleAssets 2021-04-01 2022-03-31 06939313 d:ComputerSoftware d:ExternallyAcquiredIntangibleAssets 2021-04-01 2022-03-31 06939313 6 2021-04-01 2022-03-31 06939313 d:ExternallyAcquiredIntangibleAssets 2021-04-01 2022-03-31 06939313 d:Goodwill d:OwnedIntangibleAssets 2021-04-01 2022-03-31 06939313 d:ComputerSoftware d:OwnedIntangibleAssets 2021-04-01 2022-03-31 iso4217:GBP xbrli:pure

Registered number: 06939313

2EXCEL LOGISTICS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

2EXCEL LOGISTICS LIMITED

COMPANY INFORMATION

Directors	J Wilkie
	M Farrow
	I Haddock


Registered number	06939313


Registered office	Unit A - B Fourth Dimension
	Fourth Avenue
	Letchworth Garden City
	England
	SG6 2TD


Independent auditors	WMT
	Verulam Point
	Station way
	St Albans
	Hertfordshire
	AL1 5HE

2EXCEL LOGISTICS LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditors' Report	5 - 8
Statement of Comprehensive Income	9
Balance Sheet	10 - 11
Statement of Changes in Equity	12
Analysis of Net Debt	13
Notes to the Financial Statements	14 - 27

2EXCEL LOGISTICS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Introduction

The Directors present their strategic report and financial statements for the year ended 31 March 2022.

Review of the business

The Board of Directors are very pleased with the progress and the performance of the Business in this financial year. The principle activities remain the provision of logistics services and warehousing and both aspects have seen significant growth. Sales revenue is up a healthy 23% since the previous year. EBITDA is used as the key measurement tool and this is also showing a positive increase of 21%. All of this is against a background of a post pandemic economy rising inflation and continued labour shortages.
Significant investment has been made in additional vehicles totalling in excess of £1m in the period and the business has expanded its geographical warehousing offering by the addition of facilities in Sunderland and Aldridge with a new site at Bedford ready to come on stream.

Principal risks and uncertainties

The process of risk management more generally is addressed through a framework of policies, procedures and internal controls. The policies are subject to Board approval, and compliance with regulatory, legal, ethical and moral standards is a high priority for the Company. The Board considers the major risks to be Labour shortages and increasing rates of pay, rising interest rates a general economic downturn.

Liquidity risk:
The Company manages its cash and borrowing requirements to maximise interest income and minimise interest expense, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk:
The Company is exposed normal interest rate risks on its ID facility. While the Company notes that the Bank of England base rates are the highest seen since 2009, the Company reduces its exposure by effectively managing the working capital cycle.

Credit risk:
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary. Additionally, the Company insures the majority of its customers against defaulting on debts.

Economic risk:
While consumer confidence has an impact on the economy generally, much of the business is associated with the supply to the retail sector and, in particular, to the food retail sector which continues to remain a stable engine to the UK economy, with significant over-demand. The Board are however mindful of the uncertainty around (i). Inflation, (ii) geopolitical instability and conflicts, resulting in shortages of raw materials and (iii) supply chain disruptions.

Security and disaster recovery:
The Company has excellent disaster recovery plans, and these have been successfully tested. The Company continues to invest in its systems and software to minimise technology debt and maintain high levels of system, network and data security.

Page 1

2EXCEL LOGISTICS LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Financial key performance indicators

The Board monitors the performance of the Company by reference to a range of KPIs including the following:
• Revenue
• Gross Margin
• EBITDA
• Cash

Other key performance indicators

The Board monitors the performance of the Company by reference to a range of non- financial KPIs including the following:
• The health, safety and wellbeing of all our employees and operatives
• Measurement of service levels through bespoke client SLA’s
• Securing term contract arrangements with key customers
• Working with financially strong and ethical clients

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

J Wilkie

Director

Date: 31 March 2023

Page 2

2EXCEL LOGISTICS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The directors present their report and the financial statements for the year ended 31 March 2022.

Directors' responsibilities statement

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 judgments 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.

Results and dividends

The profit for the year, after taxation, amounted to £300,448 (2021 - £396,072).

There were no dividends declared during the year (2021 - none).

Directors

The directors who served during the year were:

J Wilkie

M Farrow

I Haddock

Future developments

The Directors intend to continue with their present management policies for the foreseeable future which is expected to deliver improved profitability, cash retention and balance sheet strength.

Page 3

2EXCEL LOGISTICS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

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

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

J Wilkie

Director

Date: 31 March 2023

Page 4

2EXCEL LOGISTICS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 2EXCEL LOGISTICS LIMITED

Opinion

We have audited the financial statements of 2Excel Logistics Limited (the 'Company') for the year ended 31 March 2022, which comprise the Statement of Comprehensive Income, the Balance Sheet, 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 March 2022 and of its profit for the year then ended;

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

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

Basis for opinion

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

2EXCEL LOGISTICS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 2EXCEL 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 3, 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

2EXCEL LOGISTICS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 2EXCEL 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:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
• Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
• Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include trade/export compliance, health and safety legislation, employment law and data protection.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Other matters

The comparative financial statements were unaudited.

Page 7

2EXCEL LOGISTICS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 2EXCEL LOGISTICS LIMITED (CONTINUED)

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.

Graham Wintle (Senior Statutory Auditor)

for and on behalf of

WMT

Verulam Point

Station way

St Albans

Hertfordshire

AL1 5HE

31 March 2023

Page 8

2EXCEL LOGISTICS LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2022

	2022	2021
Note	£	£


Turnover	4	12,863,199	10,486,221
Cost of sales		(7,633,262)	(7,448,128)
Gross profit		5,229,937	3,038,093
Administrative expenses		(4,760,952)	(2,663,872)
Other operating income	5	8,502	73,975
Operating profit		477,487	448,196
Interest payable and similar expenses	9	(55,823)	(46,188)
Profit before tax		421,664	402,008
Tax on profit	10	(121,216)	(5,936)
Profit for the financial year		300,448	396,072

Other comprehensive income for the year

Total comprehensive income for the year	300,448	396,072

The notes on pages 14 to 27 form part of these financial statements.

Page 9

2EXCEL LOGISTICS LIMITED

REGISTERED NUMBER: 06939313

BALANCE SHEET

AS AT 31 MARCH 2022

		2022		Unaudited 2021
Note		£		£

Fixed assets
Intangible assets	11		156,642		8,082
Tangible assets	12		1,381,702		292,019
Investments	13		5,000		5,000
			1,543,344		305,101
Current assets
Stocks	14	-		5,691
Debtors	15	5,894,451		4,782,906
Cash at bank and in hand	16	446,753		43,204
		6,341,204		4,831,801
Creditors: amounts falling due within one year	17	(5,086,479)		(3,419,275)
Net current assets			1,254,725		1,412,526
Total assets less current liabilities			2,798,069		1,717,627
Creditors: amounts falling due after more than one year	18		(743,886)		(85,108)
Provisions for liabilities
Deferred tax	20	(159,759)		(38,543)
			(159,759)		(38,543)
Net assets			1,894,424		1,593,976

Capital and reserves
Called up share capital	1	1
Profit and loss account	1,894,423	1,593,975
	1,894,424	1,593,976

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 March 2023.

J Wilkie

Director

The notes on pages 14 to 27 form part of these financial statements.

Page 10

2EXCEL LOGISTICS LIMITED

REGISTERED NUMBER: 06939313

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2022

Page 11

2EXCEL LOGISTICS LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2022

	Called up share capital	Profit and loss account	Total equity
	£	£	£
Unaudited at 1 April 2020	1	1,197,903	1,197,904
Comprehensive income for the year
Profit for the year	-	396,072	396,072
Other comprehensive income for the year	-	-	-
Total comprehensive income for the year	-	396,072	396,072
Total transactions with owners	-	-	-

Unaudited at 1 April 2021	1	1,593,975	1,593,976
Comprehensive income for the year
Profit for the year	-	300,448	300,448
Other comprehensive income for the year	-	-	-
Total comprehensive income for the year	-	300,448	300,448
Total transactions with owners	-	-	-
At 31 March 2022	1	1,894,423	1,894,424

The notes on pages 14 to 27 form part of these financial statements.

Page 12

2EXCEL LOGISTICS LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 MARCH 2022


Unaudited at 1 April 2021	Cash flows	At 31 March 2022
£	£	£

Cash at bank and in hand	43,204	403,549	446,753
Finance leases	(151,079)	(987,487)	(1,138,566)
	(107,875)	(583,938)	(691,813)

The notes on pages 14 to 27 form part of these financial statements.

Page 13

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

1.	General information

2Excel Logistics Ltd is a company limited by shares and incorporated in England & Wales under the Companies Act 2006. The address of the registered office is given on the Company information page. The nature of the Company's operations and its principal activities are set out in the Directors’ report.

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 judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

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. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Page 14

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

2.Accounting policies (continued)

2.3

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

2.4

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.

2.5

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.

2.6

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 15

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

2.Accounting policies (continued)

2.7

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

2.8

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 charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property	-	10%
Plant and machinery	-	20%
Motor vehicles	-	25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 16

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

2.Accounting policies (continued)

2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.11

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.

2.12

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.

2.13

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.

2.14

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 17

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

2.Accounting policies (continued)

2.15

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 ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:

∙at fair value with changes recognised in the Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably;

∙at cost less impairment for all other investments.

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 Statement of Comprehensive Income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

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

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. The nature of estimation means the actual outcomes could differ from those estimates.

Page 18

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Class 1	12,863,199	10,486,221
	12,863,199	10,486,221

Analysis of turnover by country of destination:

					2022	Unaudited 2021
					£	£

United Kingdom	12,863,199	10,486,221
	12,863,199	10,486,221

5.	Other operating income
		2022	Unaudited 2021
		£	£

Government grants receivable	8,502	73,975
	8,502	73,975

Fees payable to the Company's auditors for the audit of the Company's financial statements

11,442

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 19

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Wages and salaries	1,972,810	1,133,636
Social security costs	193,162	116,525
Cost of defined contribution scheme	40,876	27,562
	2,206,848	1,277,723

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

	2022	Unaudited 2021
	No.	No.

Employees	60	45

8.	Directors' remuneration
		2022	Unaudited 2021
		£	£

Directors' emoluments	139,000	100,666
	139,000	100,666

9.	Interest payable and similar expenses
		2022	Unaudited 2021
		£	£

Finance leases and hire purchase contracts	26,849	10,979
Other interest payable	28,974	35,209
	55,823	46,188

Page 20

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Corporation tax
Current tax on profits for the year	-	40,053
Adjustments in respect of previous periods	-	(72,660)
	-	(32,607)

Total current tax	-	(32,607)

Deferred tax
Origination and reversal of timing differences	121,216	38,543
Total deferred tax	121,216	38,543


	Taxation on profit on ordinary activities	121,216	5,936

Profit on ordinary activities before tax

421,664

402,008

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)	80,116	76,382
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	1,010	607
Capital allowances for year in excess of depreciation	259,226	1,607
Adjustments to tax charge in respect of prior periods	-	(72,660)
Other differences leading to an increase (decrease) in the tax charge	(219,136)	-
Total tax charge for the year	121,216	5,936

Page 21

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

10.Taxation (continued)

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

11.	Intangible assets

	Computer software	Goodwill	Total
	£	£	£
Cost
At 1 April 2021	9,719	-	9,719
Additions	31,848	137,212	169,060
At 31 March 2022	41,567	137,212	178,779
Amortisation
At 1 April 2021	1,637	-	1,637
Charge for the year on owned assets	4,612	15,888	20,500
At 31 March 2022	6,249	15,888	22,137
Net book value
At 31 March 2022	35,318	121,324	156,642
Unaudited at 31 March 2021	8,082	-	8,082

Page 22

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

12.	Tangible fixed assets

	Short-term leasehold property	Plant and machinery	Motor vehicles	Total
	£	£	£	£
Cost or valuation
At 1 April 2021	122,563	328,398	35,000	485,961
Additions	34,493	86,870	1,118,917	1,240,280
Disposals	-	-	(35,000)	(35,000)
At 31 March 2022	157,056	415,268	1,118,917	1,691,241
Depreciation
At 1 April 2021	11,896	155,796	26,250	193,942
Charge for the year on owned assets	20,966	76,403	49,498	146,867
Disposals	-	-	(31,270)	(31,270)
At 31 March 2022	32,862	232,199	44,478	309,539
Net book value
At 31 March 2022	124,194	183,069	1,074,439	1,381,702
Unaudited at 31 March 2021	110,667	172,602	8,750	292,019

The net book value of land and buildings may be further analysed as follows:
	2022	Unaudited 2021
	£	£

Short leasehold	124,194	110,667
	124,194	110,667

Page 23

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

13.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 April 2021	5,000
	At 31 March 2022	5,000

14.	Stocks
		2022	Unaudited 2021
		£	£

Raw materials and consumables	-	5,691
	-	5,691

15.

Debtors

					2022	Unaudited 2021
					£	£

Due after more than one year
Other debtors	159,035	159,035
	159,035	159,035
Due within one year
Trade debtors	3,733,603	2,422,364
Amounts owed by group undertakings	1,505,884	1,807,724
Other debtors	60,755	24,295
Prepayments and accrued income	427,618	369,488
Tax recoverable	7,556	-
	5,894,451	4,782,906

Page 24

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

16.	Cash and cash equivalents
		2022	Unaudited 2021
		£	£

Cash at bank and in hand	446,753	43,204
	446,753	43,204

17.	Creditors: Amounts falling due within one year
		2022	Unaudited 2021
		£	£

Trade creditors	1,441,748	937,055
Amounts owed to group undertakings	77,361	5,000
Corporation tax	7,556	40,053
Other taxation and social security	207,211	213,410
Obligations under finance lease and hire purchase contracts	394,681	65,971
Other creditors	2,780,680	1,454,816
Accruals and deferred income	177,242	702,970
	5,086,479	3,419,275

18.	Creditors: Amounts falling due after more than one year
		2022	Unaudited 2021
		£	£

Net obligations under finance leases and hire purchase contracts	743,886	85,108
	743,886	85,108

Page 25

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Within one year	113,338	69,796
Between 1-5 years	765,931	85,108
	879,269	154,904

20.	Deferred taxation

		2022
		£

	At beginning of year	(38,543)
	Charged to profit or loss	(121,216)
	At end of year	(159,759)

The provision for deferred taxation is made up as follows:
	2022	Unaudited 2021
	£	£

Fixed asset timing differences	(308,239)	(39,223)
Short term timing differences	650	680
Losses and other deductions	147,830	-
	(159,759)	(38,543)

21.	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 £40,876 (2021: £27,562). Contributions totalling £2,600 (2021: £3,580) were payable to the fund at the balance sheet date and are included in creditors

Page 26

2EXCEL LOGISTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Not later than 1 year	753,618	485,507
Later than 1 year and not later than 5 years	2,098,631	1,162,834
	2,852,249	1,648,341

23.	Related party transactions
	The company has taken advantage of the exception available under FRS 102 paragraph 33.1a whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

24.	Controlling party

The ultimate parent company is Myriad Transport Ltd, a company incorporated in England and Wales, for which consolidated financial statements are produced. Copies of the consolidated financial statements are publicly available. The ultimate controlling party is J Wilkie by virtue of his majority shareholding in Myriad Transport Ltd.
The immediate parent company is Blackjay Ltd whose registered office is Unit G01, Ground Floor Metroline House, 118-122 College Road, Harrow, Middlesex HA1 1BQ . The company is a 100% owned subsidiary of Blackjay Ltd.

Page 27