Infinity Container Logistics Ltd - Limited company accounts 23.2

REGISTERED NUMBER: 10518015 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 30 April 2023

for

Infinity Container Logistics Ltd

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Statement of Cash Flows

15

Notes to the Financial Statements

16

DIRECTOR:

A P Pilcher

REGISTERED OFFICE:

Plot 3

Dooley Road

Felixstowe

Suffolk

IP11 3HG

REGISTERED NUMBER:

10518015 (England and Wales)

AUDITORS:

Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

The director(s) present their strategic report of the company for the year ended 30 April 2023.

REVIEW OF BUSINESS

During the year Infinity Container Logistics has increased the size of its fleet. In doing so the company has been able to maintain turnover near £30m in the year to 30/04/2023 and has added additional capacity to increase turnover in future. The company has continued its growth by building on its container haulage distributions. An increase in the size of the fleet is planned for the future which will provide future growth and expansion for both container haulage distributions.

PRINCIPAL RISKS AND UNCERTAINTIES

Infinity Container Logistics Limited operating in haulage industry face several principal risks and uncertainties, these include:

Driver Shortage

Infinity, like other haulage companies, have faced a shortage of qualified drivers. Despite this the company has been able to hire drivers to keep their fleet operating at full capacity.

Brexit

Brexit has had a significant impact on Infinity Container Logistics Limited and the haulage industry in the UK. The uncertainty surrounding Brexit has caused delays and disruptions at ports and borders, affecting the flow of goods across the country and internationally. The UK's departure from the EU has also resulted in changes to regulations and paperwork requirements, adding further complexity to Infinity's operations. Despite this the company has been able to meet the administrative demands.

Fuel Prices

Fuel prices are a significant cost for Infinity Container Logistics, and fluctuations in fuel prices can have a significant impact on their profitability. The price of fuel is influenced by various factors, including global oil prices, political instability, and supply and demand. Infinity Container Logistics needs to manage their fuel costs carefully to remain competitive.

Semi-Conductor Shortage

The ongoing semiconductor shortage has had a significant impact on the automotive industry, especially in purchasing new vehicles and trucks. Semiconductors are essential components in modern vehicles, used in everything from infotainment systems to engine control modules. As a result, the shortage has caused a ripple effect in the supply chain, causing automakers to halt production and delay deliveries. Despite this the company has been able to increase the size of its fleet and there have not been too many issues in purchasing new trucks and trailers.

KEY PERFORMANCE INDICATORS

This is Infinity Container Logistics' first year trading as a medium sized company. The director considers the key performance indicators for the business are turnover, gross profit and pre-tax profit.

Turnover amounted to £28.5m (2022: £29.6m)

Gross profit amounted to £6.45m (2022: - £5.71m)

Profit / (loss) before tax amounted to - £3.53m (2022: £3.37m)

FINANCIAL INSTRUMENTS

The financial instruments used by the company arise wholly and directly from its activities. The financial instruments comprise trade debtors, cash at bank and trade creditors. The company has put in place the following measures to manage financial risks arising from these financial instruments:

1. The company regularly monitors the level of debtors to ensure that they are kept at reasonable levels within a predetermined strict credit limit.

2. The company carefully manages its cash position by regularly monitoring its cash flow.

3. The company regularly monitors the trade balance and credit terms for all suppliers.

4. The company performs ongoing credit evaluation of its customers financial condition and has implemented policies to ensure credit checks on all potential customers carried out.

FUTURE DEVELOPMENT

The directors plan to increase profitability in the future by expanding and improving the size of their fleet.

ON BEHALF OF THE BOARD:

A P Pilcher - Director

22 January 2024

The director presents his report with the financial statements of the company for the year ended 30 April 2023.

DIVIDENDS

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

Ordinary A 10p

-

£3080

Ordinary B 10p

-

£5880

The total distribution of dividends for the year ended 30 April 2023 will be £ 301,000 .

DIRECTORS

A P Pilcher has held office during the whole of the period from 1 May 2022 to the date of this report.

Other changes in directors holding office are as follows:

R D Barrow - resigned 3 May 2022

G J Pilcher ceased to be a director after 30 April 2023 but prior to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

During the year the company made the following contributions:

2023

2022

£

£

Charitable

17,161

1,443

DIRECTOR'S RESPONSIBILITIES STATEMENT

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

A P Pilcher - Director

22 January 2024

Opinion

We have audited the financial statements of Infinity Container Logistics Ltd (the 'company') for the year ended 30 April 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 April 2023 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Other Matters

The comparative figures have not been audited. Opening balances were tested where sufficient appropriate evidence could be obtained. No material misstatement were identified that would affect the year ended 30th April 2023.

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 Director.

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

-	adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the companies operating sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims;

- reviewing correspondence with HMRC, relevant regulators including the Environment Agency and the company's legal advisors;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

James Knights ACA BSc (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

29 January 2024

TURNOVER

3

28,503,741

29,672,221

Cost of sales

22,050,174

23,957,503

GROSS PROFIT

6,453,567

5,714,718

Administrative expenses

2,758,306

2,258,482

3,695,261

3,456,236

Other operating income

5,000

27,193

OPERATING PROFIT

5

3,700,261

3,483,429

Interest payable and similar expenses

6

171,623

111,525

PROFIT BEFORE TAXATION

3,528,638

3,371,904

Tax on profit

7

812,883

521,280

PROFIT FOR THE FINANCIAL YEAR

2,715,755

2,850,624

PROFIT FOR THE YEAR

2,715,755

2,850,624

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,715,755

2,850,624

FIXED ASSETS

Tangible assets

9

4,324,668

2,697,234

CURRENT ASSETS

Debtors

10

2,670,945

4,676,252

Cash at bank

6,325,585

2,241,877

8,996,530

6,918,129

CREDITORS

Amounts falling due within one year

11

3,098,629

3,377,753

NET CURRENT ASSETS

5,897,901

3,540,376

TOTAL ASSETS LESS CURRENT LIABILITIES

10,222,569

6,237,610

CREDITORS

Amounts falling due after more than one year

12

(3,021,326

)

(1,965,329

)

PROVISIONS FOR LIABILITIES

15

(1,048,553

)

(503,547

)

NET ASSETS

6,152,690

3,768,734

CAPITAL AND RESERVES

Called up share capital

16

10

10

Retained earnings

17

6,152,680

3,768,724

SHAREHOLDERS' FUNDS

6,152,690

3,768,734

The financial statements were approved by the director and authorised for issue on 22 January 2024 and were signed by:

A P Pilcher - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2021

11

1,135,750

1,135,761

Changes in equity

Profit for the year

-

2,850,624

2,850,624

Total comprehensive income

-

2,850,624

2,850,624

Issue of share capital

(1

)

-

(1

)

Dividends

-

(98,450

)

(98,450

)

Purchase of own shares

-

(119,200

)

(119,200

)

Balance at 30 April 2022

10

3,768,724

3,768,734

Changes in equity

Profit for the year

-

2,715,755

2,715,755

Total comprehensive income

-

2,715,755

2,715,755

Dividends

-

(301,000

)

(301,000

)

Purchase of own shares

-

(30,799

)

(30,799

)

Balance at 30 April 2023

10

6,152,680

6,152,690

Cash flows from operating activities

Cash generated from operations

1

6,328,149

3,421,738

Interest element of hire purchase payments paid

(171,623

)

(111,525

)

Tax paid

(260,477

)

(17,476

)

Net cash from operating activities

5,896,049

3,292,737

Cash flows from investing activities

Purchase of tangible fixed assets

(2,885,595

)

(2,446,565

)

Sale of tangible fixed assets

1

-

Net cash from investing activities

(2,885,594

)

(2,446,565

)

Cash flows from financing activities

New HP/Finance Leases

2,882,264

2,374,235

Capital repayments in year

(1,448,428

)

(874,546

)

Amount introduced by directors

1,000

-

Amount withdrawn by directors

(34,784

)

-

Share buyback

(30,799

)

(119,201

)

Government Grants

5,000

3,461

Equity dividends paid

(301,000

)

(98,450

)

Net cash from financing activities

1,073,253

1,285,499

Increase in cash and cash equivalents

4,083,708

2,131,671

Cash and cash equivalents at beginning of year

2

2,241,877

110,206

Cash and cash equivalents at end of year

2

6,325,585

2,241,877

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

2023

2022

£

£

Profit before taxation

3,528,638

3,371,904

Depreciation charges

1,251,600

1,084,237

Loss on disposal of fixed assets

6,563

-

Government grants

(5,000

)

(3,461

)

Finance costs

171,623

111,525

4,953,424

4,564,205

Decrease/(increase) in trade and other debtors

2,005,304

(1,508,172

)

(Decrease)/increase in trade and other creditors

(630,579

)

365,705

Cash generated from operations

6,328,149

3,421,738

2.	CASH AND CASH EQUIVALENTS

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

Year ended 30 April 2023

30.4.23

1.5.22

£

£

Cash and cash equivalents

6,325,585

2,241,877

Year ended 30 April 2022

30.4.22

1.5.21

£

£

Cash and cash equivalents

2,241,877

110,206

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.5.22

Cash flow

At 30.4.23

£

£

£

Net cash

Cash at bank and in hand

2,241,877

4,083,708

6,325,585

2,241,877

4,083,708

6,325,585

Debt

Finance leases

(2,991,061

)

(1,433,836

)

(4,424,897

)

(2,991,061

)

(1,433,836

)

(4,424,897

)

Total

(749,184

)

2,649,872

1,900,688

1.	STATUTORY INFORMATION

Infinity Container Logistics Ltd 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 is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Freehold property

-

5 years straight line

Plant and machinery

-

6 years straight line and 5 years straight line

Fixtures and fittings

-

5 years straight line

Motor vehicles

-

25% on reducing balance

Computer equipment

-

6 years straight line

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans with related parties.

Debt instruments that are payable or receivable within one year, such as trade payables or receivables, are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. Debt instruments that are repayable or receivable after one year are initially measured at the present value of the future cash flows and subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each financial year for evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised in the Income Statement.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

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

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

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.

Government grants

Grants are accounted for using the accrual model.

Grants relating to revenue are recognised in the Statement of Income and Retained Earnings in the same period as the related costs for which the grant is intended to compensate. Where there are no related costs the grant is recognised in the period in which it becomes receivable.

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:

2023

2022

£

£

Haulage of Containers

28,503,741

29,672,221

28,503,741

29,672,221

An analysis of turnover by geographical market is given below:

2023

2022

£

£

United Kingdom

28,503,741

29,672,221

28,503,741

29,672,221

4.	EMPLOYEES AND DIRECTORS

2023

2022

£

£

Wages and salaries

3,202,739

2,401,230

Social security costs

365,980

256,094

Other pension costs

72,154

54,563

3,640,873

2,711,887

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

2023

2022

Weekly

55

45

Monthly

20

17

75

62

2023

2022

£

£

Directors' remuneration

55,528

43,041

Compensation to director for loss of office

-

30,000

5.	OPERATING PROFIT

The operating profit is stated after charging:

2023

2022

£

£

Other operating leases

232,458

134,846

Depreciation - owned assets

111,732

98,620

Depreciation - assets on hire purchase contracts

1,139,867

985,616

Loss on disposal of fixed assets

6,563

-

Auditors' remuneration

10,000

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

£

£

Hire purchase interest

171,623

111,525