A. Hingley Transport (Brierley Hill) Ltd - Limited company accounts 23.2

REGISTERED NUMBER: 01073358 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 November 2022

for

A. Hingley Transport

(Brierley Hill) Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mr A Hingley

Mr R Hingley

SECRETARY:

Mrs A Parkes

REGISTERED OFFICE:

4 Talbots Lane

Brierley Hill

West Midlands

DY5 2YX

REGISTERED NUMBER:

01073358 (England and Wales)

AUDITORS:

Lewis Smith & Co.

Chartered Certified Accountants

Statutory Auditors

The Old Doctor's House

74 Grange Road

Dudley

West Midlands

DY1 2AW

The directors present their strategic report for the year ended 30 November 2022.

REVIEW OF BUSINESS

Trading activity turnover for 2022 increased by some 5% against 2021, however our gross margin percentage reduced by some 5.3%, due mainly to two factors. The first being the dramatic upwards movement of fuel during late summer to the end of December. The second being the impact of our August 2021 wage review, which has been in place for all year driven by further inflationary pressure. Other direct operating costs associated with our vehicles i.e. tyres, vehicle leasing, power and trailer repairs etc have also seen an increase this year, some way ahead of inflation.

In summary our customers have maintained activity throughout the year resulting in turnover increasing to £11,955,996 (2021 - £11,379,366) however as noted, gross profit and margins reduced to £2,697,962 (2021 - £3,176,911) and 22.6% (2021 - 27.9%) respectively.

Whilst we have seen increases in direct costs we have reduced our indirect expenses and overheads to compensate. This has resulted in profits before tax showing £375,109 (2021 - £605,065).

Our fleet size, remains some 10% smaller than pre COVID levels, supplemented by a higher sub contractor input which provides us with flexibility when we experience shifts in customer activity.

Our trailer repair and maintenance operation continues to be cost effective to the business verses an alternative outsource option as it not only maintains our own trailer fleet it brings external income from other customers repairs to the operation. This in house operation provides us with minimal downtime relating to repairs on the fleet. However in 2023 we expect to input some new equipment as the fleet continues to age with associated higher repair costs.

In summary our trading result before tax is an acceptable return on our investment, showing a net for 2022 of 3.1% verses net for 2021 of 5.3%, this despite the external cost up pressures seen in 2022.

We are however mindful of the inflation pressures and cost of borrowing increases we have seen during the later half of the year with no forecast to reduce until later next year. We will be monitoring its effects on our cost base and profitability as we go through the year and take whatever remedial action we can with our commercial discussions with our customers, whilst maintaining tight control of our operating costs.

PRINCIPAL RISKS AND UNCERTAINTIES

Our industry remains highly competitive with fuel and labour cost forming the largest percentage of our cost base, any upwards shift in either can result in erosion of margins and subsequent profits.

We aim to mitigate such increases with continued use of fuel monitors which allows us to recover fuel price movements from our contracted customers, in addition to reviewing our other base costs of pricing using the RPI index as a marker for negotiations with our customers.

We continue to pursue opportunities both for organic growth with existing customers and new business activities which fit with our business model in order to offset and mitigate any negative external cost pressures.

CREDIT RISK

Credit risk refers to the risk that a trade debtor will default on its contractual obligation to settle its debt. Management have a credit policy in place that constantly reviews debtors and their limits based on historic trends and credit checks along with an insurance policy on key customers should they default on their debt.

CASH FLOW AND LIQUIDITY RISK

Liquidity risk is the risk that the company may not be able to meet its financial obligations as they fall due. The company ensures that there are sufficient levels of committed facilities, cash and cash equivalents to ensure that the company is, at all times, able to meet its financial commitments. Short term lending facilities are in place from the company bankers in the form of a discounting facility. Longer term capital acquisitions are financed by long term hire purchase and bank loan agreements. Liquidity risk is managed by continuous monitoring of forecast and actual cash flows.

ON BEHALF OF THE BOARD:

Mr A Hingley - Director

31 March 2023

The directors present their report with the financial statements of the company for the year ended 30 November 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of haulage contractors and trailer maintenance.

DIVIDENDS

An interim dividend of £58.82359 per share was paid on 29 November 2022. The directors recommend that no final dividend is to be paid.

The total distribution of dividends for the year ended 30 November 2022 will be £4,588.

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1 December 2021 to the date of this report.

The beneficial interests of the directors holding office at 30 November 2022 in the shares of the company, according to the register of directors' interests, were as follows:

30.11.22

1.12.21

Ordinary shares of £1 each

Mr A Hingley

34

34

Mr R Hingley

33

33

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

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Lewis Smith & Co. were appointed during the year and will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr A Hingley - Director

31 March 2023

Opinion

We have audited the financial statements of A. Hingley Transport (Brierley Hill) Limited (the 'company') for the year ended 30 November 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 30 November 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 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 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.

We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

A J Smith FCCA (Senior Statutory Auditor)

for and on behalf of Lewis Smith & Co.

Chartered Certified Accountants

Statutory Auditors

The Old Doctor's House

74 Grange Road

Dudley

West Midlands

DY1 2AW

31 March 2023

TURNOVER

3

11,955,996

11,379,366

Cost of sales

9,258,034

8,202,455

GROSS PROFIT

2,697,962

3,176,911

Administrative expenses

2,349,679

2,596,345

348,283

580,566

Other operating income

4

42,360

45,470

OPERATING PROFIT

6

390,643

626,036

Interest payable and similar expenses

7

15,534

20,971

PROFIT BEFORE TAXATION

375,109

605,065

Tax on profit

8

62,567

114,805

PROFIT FOR THE FINANCIAL YEAR

312,542

490,260

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

312,542

490,260

FIXED ASSETS

Tangible assets

10

1,234,012

1,528,088

Investment property

11

274,027

274,027

1,508,039

1,802,115

CURRENT ASSETS

Stocks

12

38,379

32,448

Debtors

13

2,561,158

2,315,515

Cash at bank and in hand

14

1,326,902

1,416,306

3,926,439

3,764,269

CREDITORS

Amounts falling due within one year

15

2,400,676

2,590,784

NET CURRENT ASSETS

1,525,763

1,173,485

TOTAL ASSETS LESS CURRENT LIABILITIES

3,033,802

2,975,600

CREDITORS

Amounts falling due after more than one year

16

(156,443

)

(355,911

)

PROVISIONS FOR LIABILITIES

20

(183,468

)

(233,752

)

NET ASSETS

2,693,891

2,385,937

CAPITAL AND RESERVES

Called up share capital

21

78

78

Revaluation reserve

5,226

5,226

Capital redemption reserve

22

22

Retained earnings

2,688,565

2,380,611

SHAREHOLDERS' FUNDS

2,693,891

2,385,937

The financial statements were approved by the Board of Directors and authorised for issue on 31 March 2023 and were signed on its behalf by:

Mr A Hingley - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 December 2020

78

1,894,939

5,226

22

1,900,265

Changes in equity

Dividends

-

(4,588

)

-

-

(4,588

)

Total comprehensive income

-

490,260

-

-

490,260

Balance at 30 November 2021

78

2,380,611

5,226

22

2,385,937

Changes in equity

Dividends

-

(4,588

)

-

-

(4,588

)

Total comprehensive income

-

312,542

-

-

312,542

Balance at 30 November 2022

78

2,688,565

5,226

22

2,693,891

Cash flows from operating activities

Cash generated from operations

1

242,603

1,628,101

Interest paid

(2,893

)

(5,383

)

Interest element of hire purchase payments paid

(12,641

)

(15,588

)

Tax paid

(98,895

)

(20,107

)

Net cash from operating activities

128,174

1,587,023

Cash flows from investing activities

Purchase of tangible fixed assets

(165,440

)

(434,096

)

Sale of tangible fixed assets

339,750

145,700

Net cash from investing activities

174,310

(288,396

)

Cash flows from financing activities

New hire purchase contracts in year

88,701

340,391

Bank loan repayments

(132,306

)

(26,358

)

Capital repayments in year

(301,825

)

(272,290

)

Amount introduced by directors

108,441

86,442

Amount withdrawn by directors

(150,311

)

(69,728

)

Invoice discounting facility movement

-

(60,151

)

Equity dividends paid

(4,588

)

(4,588

)

Net cash from financing activities

(391,888

)

(6,282

)

(Decrease)/increase in cash and cash equivalents

(89,404

)

1,292,345

Cash and cash equivalents at beginning of year

2

1,416,306

123,961

Cash and cash equivalents at end of year

2

1,326,902

1,416,306

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

30.11.22

30.11.21

£

£

Profit before taxation

375,109

605,065

Depreciation charges

221,785

304,082

(Profit)/loss on disposal of fixed assets

(102,019

)

16,961

Finance costs

15,534

20,971

510,409

947,079

(Increase)/decrease in stocks

(5,931

)

5,618

Increase in trade and other debtors

(245,643

)

(2,052

)

(Decrease)/increase in trade and other creditors

(16,232

)

677,456

Cash generated from operations

242,603

1,628,101

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 30 November 2022

30.11.22

1.12.21

£

£

Cash and cash equivalents

1,326,902

1,416,306

Year ended 30 November 2021

30.11.21

1.12.20

£

£

Cash and cash equivalents

1,416,306

123,961

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.12.21

Cash flow

At 30.11.22

£

£

£

Net cash

Cash at bank and in hand

1,416,306

(89,404

)

1,326,902

1,416,306

(89,404

)

1,326,902

Debt

Finance leases

(521,953

)

213,124

(308,829

)

Debts falling due within 1 year

(26,899

)

26,899

-

Debts falling due after 1 year

(105,407

)

105,407

-

(654,259

)

345,430

(308,829

)

Total

762,047

256,026

1,018,073

1.	STATUTORY INFORMATION

A. Hingley Transport (Brierley Hill) 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, except for any modification to fair value basis for certain financial instruments reported below.

Significant judgements and estimates

Preparation of the financial statements requires management to make judgements and estimates based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. The items in the financial statements where these estimates and judgements have been made are:

a) Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives are re-assessed annually. They are amended where necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

b) Stock and work in progress provisions

It is necessary to consider the recoverability of the cost of stocks and work in progress. When calculating any provision required, management consider the nature and condition of the items as well as assessing the saleability of finished goods and the future usage of raw materials.

c) Impairment of debtors

The company make a judgement of the recoverability of trade and other debtors. When assessing any potential impairment, factors such as the ageing profile and historical experience are considered.

Turnover

Turnover comprises the invoiced value of goods and services supplied by the company, net of value added tax and other sales taxes. Transport sales are recognised on delivery of goods. Rental income arising from leases on investment and leasehold property is accounted for on a straight line basis over the lease term. Interest received is recognised on receipt.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to freehold property

-

10% on cost

Tractor units and trailers

-

25% on reducing balance, 15% on reducing balance and 10% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on reducing balance

Office equipment

-

25% on cost

Tangible fixed assets are stated under the cost model 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 be capable of operating.

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

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised within 'operating profit' in the income statement.

Freehold Buildings have been depreciated at Nil% rate.

Depreciation has not been provided on land.

Tractor units and trailers acquired are depreciated on a monthly basis pro rata from the month of acquisition.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stock and work in progress are valued at the lower of cost and selling price less cost to sell, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport and handling costs in bringing stocks to their present location and condition.

Work in progress includes the cost of direct materials and labour plus attributable overheads based on normal levels of activity.

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.

Current and 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

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

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

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 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 the income statement when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plans are held separately from the company in independently administered funds.

Cash and cash equivalents

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

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at transaction cost. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event and it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. The provision is charged to the income statement in the year that the company becomes aware of 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.

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 accounts receivable and payable and loans to related parties.

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently,they are measured at amortised cost using the effective interest rate method, less impairment.If an arrangement constitutes a finance transaction it is measured at present value.

Going Concern

After reviewing forecasts and projections, the directors believe that there will be adequate resources to continue in operation existence for the foreseeable future and continues to adopt the going concern basis in its preparation of its financial statements.

Government Grant

The company receives government grants in respect of Covid 19 support. These grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the performance/accrual model. Any restricted grants are held separately and designated against the costs they are intended for.

Job Rentention Grants are calculated based on a % of the employees' salary. They are accounted for to matched associated payroll costs when the certainty of the claim has been verified, usually this is following receipt.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

30.11.22

30.11.21

£

£

Haulage and transport

11,727,061

11,194,825

Trailer repairs & maintenance

228,935

184,541

11,955,996

11,379,366

An analysis of turnover by geographical market is given below:

30.11.22

30.11.21

£

£

United Kingdom

11,955,996

11,379,366

11,955,996

11,379,366

4.	OTHER OPERATING INCOME

30.11.22

30.11.21

£

£

Rents received

42,360

36,240

Government grants

-

9,230

42,360

45,470

The government grants of £Nil (2021 - £42,360) related to COVID-19 support grants received for the furloughing of employees.

5.	EMPLOYEES AND DIRECTORS

30.11.22

30.11.21

£

£

Wages and salaries

3,800,940

3,387,765

Social security costs

438,430

382,676

Other pension costs

80,436

99,635

4,319,806

3,870,076

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

30.11.22

30.11.21

Drivers and mechanics

62

65

Management and administration

12

12

74

77

30.11.22

30.11.21

£

£

Directors' remuneration

538,000

626,700

Directors' pension contributions to money purchase schemes

14,000

13,600

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

Money purchase schemes

2

2