Chris Hayter Transport Limited - Limited company accounts 23.2

REGISTERED NUMBER: 01183217 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

CHRIS HAYTER TRANSPORT LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

C T Hayter

J Hayter

A S Holligan

N P Street

SECRETARY:

J Hayter

REGISTERED OFFICE:

Jervis House

Curbridge Business Park

Downs Road Witney

Oxfordshire

OX29 7WJ

REGISTERED NUMBER:

01183217 (England and Wales)

AUDITORS:

Jamesons Limited

Chartered Accountants and Statutory Auditors

Jamesons House

Compton Way

Witney

OX28 3AB

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

REVIEW OF BUSINESS

The principal activity of the company in the year under review was that of warehousing and distribution.

The results of the year and financial position of the company are as shown in the annual financial statements. The directors achieved their aim during the year of continuing to consolidate the trading position of the company and maintain both turnover and profitability.

Turnover increased compared to the 2021 figures and the gross profit margin decreased to 21.16% (2021 : 23.06%). Profit before tax and dividends for the year was 7.12% of sales (2021 : 7.24%) which is in line with the industry average and expected in the current economic conditions.

The directors are satisfied with the underlying financial strength and position of the company at the year end.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have assessed the principal risks and uncertainties affecting the company and, as last year, consider the major risks to be increased regulations, the continued uncertainty of how Brexit may effect their customers, the fluctuating derv prices together with LGV driver shortages affecting the transport industry as well as inflationary increases in commodities and utilities, all of which are outside the directors' control.

KEY PERFORMANCE INDICATORS

Given the straightforward nature of the business and that the directors are also the shareholders of the business; the company's directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of their development, performance and position of the business. They review their monthly reports and management accounts and sales order reports and use these to make business plans and decisions.

ON BEHALF OF THE BOARD:

C T Hayter - Director

30 June 2023

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

DIVIDENDS

An interim dividend of £5 per share was paid on 31 December 2022. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2022 will be £ 50,000 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

C T Hayter

J Hayter

A S Holligan

N P Street

EMPLOYEE INVOLVEMENT

Employees are kept informed about the progress and position of the company by means of internal communications.

The Company HR department issue regular updates on matters that may affect the employees well being. The Company issues quarterly newsletters to all depots containing matters of general employee interest .

Regular Health and Safety meetings with nominated employee representatives are conducted once each quarter where concerns from individual department heads are aired and rectified when necessary.

DISABLED PERSONS

The company's policy is that any vacancy which arises is open to disabled persons, provided that they are able to fulfil the functions by that job. Employees who have been injured or become disabled in the course of their employment are considered for other suitable vacancies.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Jamesons Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C T Hayter - Director

30 June 2023

Opinion

We have audited the financial statements of Chris Hayter Transport Limited (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

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

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

- at the planning stage the areas of risk of material misstatement due to fraud or irregularities were identified.

The risk of both are deemed to be low.

- the risks were assessed in conjunction with the systems and controls of the entity. These are deemed to be strong.

- the main risk areas were discussed with both the Informed management and those charged with governance.

- our audit testing was then designed in conjunction with the risks identified.

- a sceptical attitude was maintained throughout the audit.

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 regarding 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.

Anita Lyon FCA FCCA (Senior Statutory Auditor)

for and on behalf of Jamesons Limited

Chartered Accountants and Statutory Auditors

Jamesons House

Compton Way

Witney

OX28 3AB

18 July 2023

TURNOVER

3

29,292,788

23,797,802

Cost of sales

23,094,951

18,309,003

GROSS PROFIT

6,197,837

5,488,799

Administrative expenses

4,090,796

3,746,281

OPERATING PROFIT

5

2,107,041

1,742,518

Interest receivable and similar income

6

1,539

-

2,108,580

1,742,518

Interest payable and similar expenses

7

21,717

19,918

PROFIT BEFORE TAXATION

2,086,863

1,722,600

Tax on profit

8

481,405

287,888

PROFIT FOR THE FINANCIAL YEAR

1,605,458

1,434,712

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,605,458

1,434,712

FIXED ASSETS

Tangible assets

10

3,077,499

2,782,948

CURRENT ASSETS

Stocks

11

276,873

196,086

Debtors

12

8,139,412

6,649,650

Cash at bank and in hand

730,870

702,123

9,147,155

7,547,859

CREDITORS

Amounts falling due within one year

13

3,342,601

3,078,761

NET CURRENT ASSETS

5,804,554

4,469,098

TOTAL ASSETS LESS CURRENT LIABILITIES

8,882,053

7,252,046

CREDITORS

Amounts falling due after more than one year

14

(59,441

)

(153,645

)

PROVISIONS FOR LIABILITIES

16

(433,310

)

(264,557

)

NET ASSETS

8,389,302

6,833,844

CAPITAL AND RESERVES

Called up share capital

17

10,000

10,000

Retained earnings

18

8,379,302

6,823,844

SHAREHOLDERS' FUNDS

8,389,302

6,833,844

The financial statements were approved by the Board of Directors and authorised for issue on 30 June 2023 and were signed on its behalf by:

C T Hayter - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2021

10,000

5,469,132

5,479,132

Changes in equity

Dividends

-

(80,000

)

(80,000

)

Total comprehensive income

-

1,434,712

1,434,712

Balance at 31 December 2021

10,000

6,823,844

6,833,844

Changes in equity

Dividends

-

(50,000

)

(50,000

)

Total comprehensive income

-

1,605,458

1,605,458

Balance at 31 December 2022

10,000

8,379,302

8,389,302

Cash flows from operating activities

Cash generated from operations

1

1,988,306

2,128,491

Interest paid

-

(255

)

Interest element of hire purchase payments paid

(21,717

)

(19,663

)

Tax paid

(319,415

)

(95,402

)

Net cash from operating activities

1,647,174

2,013,171

Cash flows from investing activities

Purchase of tangible fixed assets

(1,634,412

)

(2,001,831

)

Sale of tangible fixed assets

55,850

140,738

Interest received

1,539

-

Net cash from investing activities

(1,577,023

)

(1,861,093

)

Cash flows from financing activities

Capital repayments in year

4,040

104,787

Amount introduced by directors

4,556

6,957

Equity dividends paid

(50,000

)

(80,000

)

Net cash from financing activities

(41,404

)

31,744

Increase in cash and cash equivalents

28,747

183,822

Cash and cash equivalents at beginning of year

2

702,123

518,301

Cash and cash equivalents at end of year

2

730,870

702,123

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

2022

2021

£

£

Profit before taxation

2,086,863

1,722,600

Depreciation charges

1,329,052

1,081,756

Profit on disposal of fixed assets

(45,039

)

(31,159

)

Finance costs

21,717

19,918

Finance income

(1,539

)

-

3,391,054

2,793,115

(Increase)/decrease in stocks

(80,787

)

361

Increase in trade and other debtors

(1,489,762

)

(837,059

)

Increase in trade and other creditors

167,801

172,074

Cash generated from operations

1,988,306

2,128,491

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2022

31.12.22

1.1.22

£

£

Cash and cash equivalents

730,870

702,123

Year ended 31 December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

702,123

518,301

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.22

Cash flow

At 31.12.22

£

£

£

Net cash

Cash at bank and in hand

702,123

28,747

730,870

702,123

28,747

730,870

Debt

Finance leases

(559,944

)

(4,040

)

(563,984

)

(559,944

)

(4,040

)

(563,984

)

Total

142,179

24,707

166,886

1.	STATUTORY INFORMATION

Chris Hayter Transport 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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 represents net invoiced charges for haulage and storage as earned, excluding value added tax.

Tangible fixed assets

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

Plant and machinery

-

25% on cost and Straight line over 20 years

Motor vehicles

-

25% on cost and 20% on cost

Computer equipment

-

25% on cost and Straight line over 6 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks are measured on a FIFO basis.

Financial instruments

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less. For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

Short-term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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

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

Pension costs and other post-retirement benefits

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

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

All turnover arose within the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

12,254,816

10,059,138

Social security costs

1,253,074

995,205

Other pension costs

352,579

246,890

13,860,469

11,301,233

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

2022

2021

Drivers

123

108

Warehouse

152

149

Administration

50

50

325

307

2022

2021

£

£

Directors' remuneration

321,660

315,875

Directors' pension contributions to money purchase schemes

5,284

3,739

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2022

2021

£

£

Emoluments etc

90,161

91,260

Pension contributions to money purchase schemes

2,643

1,870

5.	OPERATING PROFIT

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

2022

2021

£

£

Hire of plant and machinery

628,569

437,137

Depreciation - owned assets

1,329,050

1,081,756

Profit on disposal of fixed assets

(45,039

)

(31,159

)

Auditors' remuneration

18,250

18,150

Auditors' remuneration for non audit work

3,297

2,935

6.

INTEREST RECEIVABLE AND SIMILAR INCOME

2022

2021

£

£

Deposit account interest

1,539

-

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Bank interest

-

255

Hire purchase

21,717

19,663

21,717

19,918

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2022

2021

£

£

Current tax:

UK corporation tax

312,651

188,400

Deferred tax

168,754

99,488

Tax on profit

481,405

287,888

Reconciliation of total tax charge included in profit and loss

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

2022

2021

£

£

Profit before tax

2,086,863

1,722,600

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

396,504

327,294

Effects of:

Expenses not deductible for tax purposes

47

(27,695

)

Capital allowances in excess of depreciation

(83,900

)

(115,185

)

Adjustments to tax charge in respect of previous periods

-

3,986

Movement in deferred taxation

168,754

99,488

Total tax charge

481,405

287,888

9.

DIVIDENDS

2022

2021

£

£

Ordinary shares of £1 each

Interim

50,000

80,000

10.	TANGIBLE FIXED ASSETS

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 1 January 2022

2,563,020

5,164,368

298,829

8,026,217

Additions

255,974

1,373,269

5,169

1,634,412

Disposals

-

(183,256

)

-

(183,256

)

At 31 December 2022

2,818,994

6,354,381

303,998

9,477,373

DEPRECIATION

At 1 January 2022

2,021,599

2,986,641

235,029

5,243,269

Charge for year

366,432

939,076

23,542

1,329,050

Eliminated on disposal

-

(172,445

)

-

(172,445

)

At 31 December 2022

2,388,031

3,753,272

258,571

6,399,874

NET BOOK VALUE

At 31 December 2022

430,963

2,601,109

45,427

3,077,499

At 31 December 2021

541,421

2,177,727

63,800

2,782,948