Walker Logistics (Holdings) Limited - Limited company accounts 23.1

REGISTERED NUMBER: 05331152 (England and Wales)

for

Page

Company Information  

1

Group Strategic Report  

2

Report of the Directors  

4

Report of the Independent Auditors  

6

Consolidated Income Statement  

10

Consolidated Other Comprehensive Income  

11

Consolidated Balance Sheet  

12

Company Balance Sheet  

13

Consolidated Statement of Changes in Equity  

14

Company Statement of Changes in Equity  

15

Consolidated Cash Flow Statement  

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

19

DIRECTORS:

W J R Walker

P N Walker

SECRETARY:

C R Walker

REGISTERED OFFICE:

2 Pavilion Court

600 Pavilion Drive

Northampton

NN4 7SL

REGISTERED NUMBER:

05331152 (England and Wales)

AUDITORS:

Harris & Co (Accountants) Ltd, Statutory Auditor

2 Pavilion Court

600 Pavilion Drive

Northampton

NN4 7SL

Introduction

The directors present their strategic report of the company and the group for the year ended 31 August 2022.

Business review

The Walker Logistics group is based at Membury and provides storage and distribution solutions and fulfilment services to clients in the UK, mainland Europe and all over the world.

Sales for the year were £14.2m an increase 6.71% on prior years figure of £13.3m.  This growth is attributed to improvements in our utilisation of available resources and a change in customer mix.

In anticipation of even stronger growth in the future, management made the decision to invest in their back-office functions by appointing a new CFO and investing in finance and HR systems.  These changes have ensured that the back-office functions are well placed to scale in line with anticipated future expansion.

Management also took the decision to invest in staff welfare and wellbeing by improving core remuneration, improvements to on-site staff facilities, regular on-site activities to improve staff morale and examples of staff progression within the business.  These investments have helped to improve staff productivity and retention. Despite these investments the board are pleased to confirm that underlying PBT has improved by 15% year on year.

Principal risks and uncertainties

The directors consider the principal risks and uncertainties faced by the company to be financial and labour related risks.

Financial risk - The principal risk surrounding the group is continuing to service its financial commitments.  In particular, the risk around interest rates.  Management have assessed this risk and considered various options to limit exposure but decided that the risk for the remainder of the term is not significant.  Considerations for interest rate risk mitigations will be made closer to the renewal of facilities.

Labour risk - Since Brexit the supply of labour for the warehouse has become increasingly difficult to source.  To alleviate this management have invested in staff welfare and increased salaries to attract and retain staff.  These actions have yielded a strong increase in applications for roles.

Future developments

Since the year end no significant events have occurred that have materially affected the group from an operational standpoint.  However, since the year end the business has secured full planning and reserve matters on the proposed 135,000sq ft building which will comprise a mix of storage, operational space and offices.  The new development will be built across the Q3/4 FY 2023 and Q1 FY 2024 with planned completion and operation by Q2 FY 2024.  The new building will increase the operational capacity of the business by more than 40% as well as create opportunities for the existing office complex within the core site.

Key financial performance indicators

Sales for the year were £14.2m an increase 6.71% on prior years figure of £13.3m.  This growth is attributed to improvements in our utilisation of available resources and a change in customer mix.

Management also took the decision to invest in staff welfare and wellbeing by improving core remuneration, improvements to on-site staff facilities, regular on-site activities to improve staff morale and examples of staff progression within the business.  These investments have helped to improve staff productivity and retention. Despite these investments the board are pleased to confirm that underlying PBT has improved by 15% year on year.

Other key performance indicators

The group proactively seek new ways to push the boundaries of operational excellence so our customers stay one step ahead of the game. A commitment to continuous improvement is at the heart of our culture, enhancing and sustaining our customers' long term competitiveness.

Our vision is conveyed by the following commitments:

- Creating and keeping up awareness about actual and foreseen needs of partners and customers using the best world class logistics, distribution, solutions, fulfilment and freight forwarding solutions.

-Realisation of service on time in a reliable, flexible and simple manner in such a way o try to exceed the customer's requirements.

-Consistent creating of organisation culture by building good employee relationships and approach related to customer satisfaction achievement

-The group are ambitious to exceed our partners' requirements offering them the highest quality solutions, including additional value by unique, innovative and complete logistics services.

The continuous improvement of our service quality, suitable storage in state of the art warehousing facilities and transportation and distribution conditions of goods are achieved by:

-Detailed analysis of our customers' needs.

-Full engagement of all employees to perform our strategy.

-Having educated and well experienced staff who continuously improve their qualifications.

-Pursuing to fulfill customer requirements at the highest level including individual expectation.

-Having modern technical equipment making possible to apply the newest logistics solutions.

-Continuous process improvement and having processes efficiency monitored.

-To gain competitive advantage for our customers by listening and working with them to bring inspired added value logistics solutions to them.

-To measure our performance to ensure we meet, and where possible, exceed our customers' expectations.

-Our management systems ensure continual improvement through periodic review of our policies.

ON BEHALF OF THE BOARD:

P N Walker - Director

4 April 2023

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

PRINCIPAL ACTIVITY

DIVIDENDS

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

Ordinary A 25p

-

£4.16

Ordinary B 25p

-

£5.0905

The total distribution of dividends for the year ended 31 August 2022 will be £ 141,091 .

DIRECTORS

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

W J R Walker

P N Walker

POLITICAL DONATIONS AND EXPENDITURE

During the year the Group made charitable donations of £14,459.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year.  Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 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 directors are 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 each director 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,  Harris & Co (Accountants) Ltd, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P N Walker - Director

4 April 2023

Opinion

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 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 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 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 Group 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 Group 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 Group 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 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 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 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 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 four, 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 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 directors either intend to liquidate the group or the parent 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:

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

- The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant: The Companies Act 2015 and 2006, UK employment legislation and UK health and safety legislation. we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

- We understood how the Group is complying with those legal and regulatory frameworks by making enquiries through our review of relevant documentation.

- The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. Audit procedures performed by the engagement team included:

- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

- As a result of the above procedures, we considered the opportunities and incentives that may exist within the Group for fraud and identified the greatest potential for fraud in the following areas:

- Posting of unusual journals out of the normal course of business;

- Incorrectly recognising revenue in the wrong period that may inflate or deflate revenue;

- Posting of non business related expenses.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. the risk is also greater for irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Phillip J Harris BA(Hons) FCA BFP (Senior Statutory Auditor)

for and on behalf of Harris & Co (Accountants) Ltd, Statutory Auditor

2 Pavilion Court

600 Pavilion Drive

Northampton

NN4 7SL

4 April 2023

GROSS PROFIT

4,359,930

4,056,225

Administrative expenses

(2,886,119

)

(2,935,117

)

1,473,811

1,121,108

Other operating income

2,888

3,878

OPERATING PROFIT

5

1,476,699

1,124,986

Interest receivable and similar income

7

-

86,063

1,476,699

1,211,049

Interest payable and similar expenses

8

(387,797

)

(445,732

)

PROFIT BEFORE TAXATION

1,088,902

765,317

Tax on profit

9

(327,887

)

(305,547

)

PROFIT FOR THE FINANCIAL YEAR

761,015

459,770

Profit attributable to:

Owners of the parent

761,015

459,770

PROFIT FOR THE YEAR

761,015

459,770

OTHER COMPREHENSIVE INCOME  

-

7,109,212

Income tax relating to other comprehensive

income

-

(1,594,107

)

OTHER COMPREHENSIVE INCOME FOR THE

YEAR, NET OF INCOME TAX

-

5,515,105

TOTAL COMPREHENSIVE INCOME FOR THE

YEAR

761,015

5,974,875

Total comprehensive income attributable to:

Owners of the parent

761,015

5,974,875

FIXED ASSETS

Intangible assets

12

1,412,554

1,625,136

Tangible assets

13

26,873,474

25,444,301

Investments

14

8,511

8,511

28,294,539

27,077,948

CURRENT ASSETS

Stocks

15

2,200

2,200

Debtors

16

3,130,928

3,294,096

Cash at bank

8,442

2,157

3,141,570

3,298,453

CREDITORS

Amounts falling due within one year

17

(2,579,615

)

(16,322,417

)

NET CURRENT ASSETS/(LIABILITIES)

561,955

(13,023,964

)

TOTAL ASSETS LESS CURRENT LIABILITIES

28,856,494

14,053,984

CREDITORS

Amounts falling due after more than one

year

18

(14,271,137

)

(226,081

)

PROVISIONS FOR LIABILITIES

22

(2,096,535

)

(1,959,005

)

NET ASSETS

12,488,822

11,868,898

CAPITAL AND RESERVES

Called up share capital

23

7,500

7,500

Revaluation reserve

24

6,600,889

6,600,889

Retained earnings

24

5,880,433

5,260,509

SHAREHOLDERS' FUNDS

12,488,822

11,868,898

The financial statements were approved by the Board of Directors and authorised for issue on 4 April 2023 and were signed on its behalf by:

P N Walker - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

24,662,209

23,388,250

Investments

14

50,100

50,100

24,712,309

23,438,350

CURRENT ASSETS

Debtors

16

3,065,424

2,844,689

CREDITORS

Amounts falling due within one year

17

(1,918,611

)

(14,736,174

)

NET CURRENT ASSETS/(LIABILITIES)

1,146,813

(11,891,485

)

TOTAL ASSETS LESS CURRENT LIABILITIES

25,859,122

11,546,865

CREDITORS

Amounts falling due after more than one

year

18

(14,200,670

)

-

PROVISIONS FOR LIABILITIES

22

(1,594,107

)

(1,594,107

)

NET ASSETS

10,064,345

9,952,758

CAPITAL AND RESERVES

Called up share capital

23

7,500

7,500

Revaluation reserve

6,600,889

6,600,889

Retained earnings

3,455,956

3,344,369

SHAREHOLDERS' FUNDS

10,064,345

9,952,758

Company's profit for the financial year

252,678

18,707

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 Board of Directors and authorised for issue on 4 April 2023 and were signed on its behalf by:

P N Walker - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£   

£   

£   

£   

Balance at 1 September 2020

7,500

5,084,739

1,085,784

6,178,023

Changes in equity

Dividends

-

(284,000

)

-

(284,000

)

Total comprehensive income

-

459,770

5,515,105

5,974,875

Balance at 31 August 2021

7,500

5,260,509

6,600,889

11,868,898

Changes in equity

Dividends

-

(141,091

)

-

(141,091

)

Total comprehensive income

-

761,015

-

761,015

Balance at 31 August 2022

7,500

5,880,433

6,600,889

12,488,822

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£   

£   

£   

£   

Balance at 1 September 2020

7,500

3,609,662

1,085,784