ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

ARCLID TRANSPORT LIMITED - Company Information

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Registered number: 00987258

ARCLID TRANSPORT LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

ARCLID TRANSPORT LIMITED

COMPANY INFORMATION

Directors	S. I. Bennett
	R. H. Walker
	B. A. Walker
	A. Robinson (appointed 18 March 2024)


Company secretary	S. I. Bennett


Registered number	00987258


Registered office	c/o Langtons Professional Services Limited
	100 Old Hall Street
	Liverpool
	Merseyside
	L3 9QJ


Independent auditor	Langtons Professional Services Limited
	Chartered Accountants & Statutory Auditor
	The Plaza
	100 Old Hall Street
	Liverpool
	L3 9QJ

ARCLID TRANSPORT LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditor's Report	5 - 8
Statement of Comprehensive Income	9
Statement of Financial Position	10
Statement of Changes in Equity	11
Notes to the Financial Statements	12 - 27

ARCLID TRANSPORT LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2023

Business review

The year started positively with volumes strong, however after a quiet early summer, volumes never returned.
During this period the company kept investing and focusing on reducing costs where possible. This included returning some short-term rentals and disposing of some older assets in a buoyant second hand market, which helped support financial performance.
Fuel volatility continued throughout the whole year, but was managed effectively.
We continued to invest in the fleet to ensure that we controlled maintenance costs and kept fleet downtime to a minimum.
Our Bulk Liquids Division continued to grow and shows further potential for the future.
During the year we have maintained all our accreditations and added in SQAS.
Whilst there is economic uncertainty, we remain in a strong financial and management position, and the Directors believe their remains a solid base to seize any growth opportunities going forward.

Principal risks and uncertainties

Risk Management
Given the size of the company, the directors have delegated the responsibility of financial risk management to the company's finance department. The department has a policy and procedures manual that sets out guidelines to manage credit risk and price risk.
Credit Risk
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the board. Wherever appropriate, the company undertakes a policy of credit insurance. If credit insurance is not available the senior management team will ensure that any risk is managed pro-actively to minimise any exposure.
Price Risk
The company is exposed to a price risk as a result of its operations. Wherever possible the management looks to enter into one year pricing contracts to minimise its price exposure. Despite best endeavours this will not always be possible due to significant movements in prices of natural resources.

Financial key performance indicators

The company’s financial key performance indicators are primarily focussed around its turnover, profitability, and net current assets.
Some of these are set out below, and which demonstrate the stability of the business:
Year Ending: 30 September 2023 30 September 2022

Turnover: £9.10m £8.53m
Return on Capital Employed: 6.0% 6.2%
Gross Profit: 10.7% 9.4%

Page 1

ARCLID TRANSPORT LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2023

This report was approved by the board on 15 April 2024 and signed on its behalf.

S. I. Bennett

Director

Page 2

ARCLID TRANSPORT LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors present their report and the financial statements for the year ended 30 September 2023.

Directors' responsibilities statement

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

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

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

Principal activity

The company’s principal activity during the year was to carry out road haulage deliveries across a number of sectors.

Results and dividends

The profit for the year, after taxation, amounted to £177,425 (2022 - £154,318).

The directors do not recommend a dividend.

Directors

The directors who served during the year were:

M. A. Brookes (resigned 11 December 2023)

S. I. Bennett

D. Robinson (resigned 1 April 2023)

R. H. Walker

B. A. Walker

A. Robinson was appointed a director on 18 March 2024.

Page 3

ARCLID TRANSPORT LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2023

Future developments

It is the directors intention to continue to develop the existing activities of the business.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

Under section 487(2) of the Companies Act 2006, Langtons Professional Services Limited will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 15 April 2024 and signed on its behalf.

S. I. Bennett

Director

Page 4

ARCLID TRANSPORT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARCLID TRANSPORT LIMITED

Opinion

We have audited the financial statements of Arclid Transport Limited (the 'Company') for the year ended 30 September 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 30 September 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 5

ARCLID TRANSPORT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARCLID TRANSPORT LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006

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

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

∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 6

ARCLID TRANSPORT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARCLID TRANSPORT LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Taxation legislation and Transport legislation.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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 Auditor's Report.

Page 7

ARCLID TRANSPORT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARCLID TRANSPORT LIMITED (CONTINUED)

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew McCall (Senior Statutory Auditor)

for and on behalf of

Langtons Professional Services Limited

Chartered Accountants

Statutory Auditor

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ

15 April 2024

Page 8

ARCLID TRANSPORT LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2023

	2023	2022
Note	£	£


Turnover	4	9,098,739	8,534,626
Cost of sales		(8,124,246)	(7,730,125)
Gross profit		974,493	804,501
Administrative expenses		(693,776)	(599,668)
Fair value movements		79	(531)
Operating profit	5	280,796	204,302
Income from fixed assets investments		67	67
Interest payable and similar expenses	10	(50,103)	(37,889)
Profit before tax		230,760	166,480
Tax on profit	11	(53,335)	(12,162)
Profit for the financial year		177,425	154,318

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 27 form part of these financial statements.

Page 9

ARCLID TRANSPORT LIMITED

REGISTERED NUMBER: 00987258

STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

		2023		2022
Note		£		£

Fixed assets
Intangible assets	12		1		8,720
Tangible assets	13		5,000,790		5,077,216
			5,000,791		5,085,936
Current assets
Stocks	14	44,300		39,090
Debtors: amounts falling due within one year	15	3,270,412		2,333,644
Current asset investments	16	714		635
Cash at bank and in hand	17	219,790		1,145,730
		3,535,216		3,519,099
Creditors: amounts falling due within one year	18	(3,974,270)		(4,140,083)
Net current liabilities			(439,054)		(620,984)
Total assets less current liabilities			4,561,737		4,464,952
Creditors: amounts falling due after more than one year	19		(675,809)		(809,784)
Provisions for liabilities
Deferred tax	22	(992,592)		(939,257)
			(992,592)		(939,257)
Net assets			2,893,336		2,715,911

Capital and reserves
Called up share capital	23	100	100
Profit and loss account	24	2,893,236	2,715,811
		2,893,336	2,715,911

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 15 April 2024.

S. I. Bennett

Director

The notes on pages 12 to 27 form part of these financial statements.

Page 10

ARCLID TRANSPORT LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2023

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 October 2021	100	2,561,493	2,561,593
Comprehensive income for the year
Profit for the year	-	154,318	154,318
Total comprehensive income for the year	-	154,318	154,318

At 1 October 2022	100	2,715,811	2,715,911
Comprehensive income for the year
Profit for the year	-	177,425	177,425
Total comprehensive income for the year	-	177,425	177,425
At 30 September 2023	100	2,893,236	2,893,336

The notes on pages 12 to 27 form part of these financial statements.

Page 11

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.	General information

The entity is a private limited liability company, limited by shares registered in England and Wales within the United Kingdom. The registered office is The Plaza, 100 Old Hall Street, Liverpool, L3 9QJ, the principal place of business is Arclid Quarry, Congleton Road, Sandbach, Cheshire CW11 4SN.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The presentation currency of these financial statements is pound sterling; the financial statements
are rounded to the nearest pound.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For long term finance they rely on the loans provided by the parent company, Archibald Bathgate Group Limited. In assessing going concern they have assumed that these loans will not be repaid until the company is sufficiently cash generative and, on that basis, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

2.3

Reduced disclosure framework

The company has taken advantage of the exemption allowed under FRS 102 section 1.11 not to prepare a cashflow statement on the grounds that one is prepared by the parent entity.

Page 12

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

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

∙the amount of revenue can be measured reliably;

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

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

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

2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.10

Intangible assets

Goodwill

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

Other intangible assets

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

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

The estimated useful lives range as follows:

Goodwill

years

Page 14

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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

Depreciation is provided on the following basis:

Plant & machinery	-	5 - 7 years
Commercial vehicles	-	3 - 10 years
Office equipment	-	2 - 5 years

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

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

2.12

Stocks

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

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

2.13

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.15

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 15

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

Page 16

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the

Page 17

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

2.17

Financial instruments (continued)

ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

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

The directors use judgments in estimating the deferred tax liability and in the depreciation policy set for the transport fleet.

Turnover

The whole of the turnover is attributable to the principal activity of the business.

Other operating lease rentals

445,917

341,696

Page 18

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

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

9,750

9,300

7.	Employees
		2023	2022
		£	£

Wages and salaries	3,086,744	2,719,942
Social security costs	310,782	273,340
Cost of defined contribution scheme	165,778	159,030
	3,563,304	3,152,312

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

	2023	2022
	No.	No.

Director	1	1
Administration	7	7
Distribution	56	59

	64	67

Page 19

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

8.	Directors' remuneration
		2023	2022
		£	£

Directors' emoluments	88,971	91,373
Company contributions to defined contribution pension schemes	23,472	25,858
	112,443	117,231

During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

9.	Income from investments
		2023	2022
		£	£

	Income from current asset investments	67	67

10.	Interest payable and similar expenses
		2023	2022
		£	£

	Finance leases and hire purchase contracts	50,103	37,889
		50,103	37,889

Page 20

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023


Group taxation relief	-	(327,236)
	-	(327,236)

Total current tax	-	(327,236)

Deferred tax
Origination and reversal of timing differences	53,335	257,942
Changes to tax rates	-	81,456
Total deferred tax	53,335	339,398


	Taxation on profit on ordinary activities	53,335	12,162

Profit on ordinary activities before tax

230,760

166,480

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 22% (2022 - 19%)	50,767	31,631
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	516	279
Fixed asset differences	(4,318)	(101,191)
Non-taxable income	(32)	(13)
Remeasurement of deferred tax for changes in tax rates	6,402	81,456
Total tax charge for the year	53,335	12,162

Page 21

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

11.Taxation (continued)

Factors that may affect future tax charges

Trading losses of £141,225 are available to offset against future trading profits.

12.	Intangible assets

		Goodwill
		£
	Cost
	At 1 October 2022	174,382
	At 30 September 2023	174,382
	Amortisation
	At 1 October 2022	165,662
	Charge for the year on owned assets	8,719
	At 30 September 2023	174,381
	Net book value
	At 30 September 2023	1
	At 30 September 2022	8,720

Page 22

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.	Tangible fixed assets

	Sand tankers	Artics	Office equipment	Total
	£	£	£	£
Cost or valuation
At 1 October 2022	325,216	8,362,269	139,299	8,826,784
Additions	-	1,016,827	2,250	1,019,077
Disposals	-	(808,703)	-	(808,703)
At 30 September 2023	325,216	8,570,393	141,549	9,037,158
Depreciation
At 1 October 2022	161,748	3,494,958	92,862	3,749,568
Charge for the year on owned assets	46,220	496,140	18,733	561,093
Charge for the year on financed assets	-	454,701	-	454,701
Disposals	-	(728,994)	-	(728,994)
At 30 September 2023	207,968	3,716,805	111,595	4,036,368
Net book value
At 30 September 2023	117,248	4,853,588	29,954	5,000,790
At 30 September 2022	163,468	4,867,311	46,437	5,077,216

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2023	2022
	£	£


Sand tankers	-	127,656
Artics	3,308,877	3,579,891
	3,308,877	3,707,547

Page 23

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

14.	Stocks
		2023	2022
		£	£

Raw materials and consumables	44,300	39,090
	44,300	39,090

15.

Debtors

					2023	2022
					£	£


Trade debtors	983,679	1,175,653
Amounts owed by group undertakings	2,085,012	933,514
Other debtors	4,509	16,816
Prepayments and accrued income	197,212	207,661
	3,270,412	2,333,644

16.	Current asset investments
		2023	2022
		£	£

Listed investments	714	635
	714	635

17.	Cash and cash equivalents
		2023	2022
		£	£

Cash at bank and in hand	219,790	1,145,730
Less: bank overdrafts	-	(835,810)
	219,790	309,920

Page 24

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

18.	Creditors: Amounts falling due within one year
		2023	2022
		£	£

Bank overdrafts	-	835,810
Trade creditors	191,879	286,715
Amounts owed to group undertakings	2,224,713	1,658,659
Other taxation and social security	256,860	190,054
Obligations under finance lease and hire purchase contracts	787,011	910,259
Other creditors	-	18,233
Accruals and deferred income	513,807	240,353
	3,974,270	4,140,083

Obligations under finance leases and hire purchase contracts are secured on the assets concerned.

19.	Creditors: Amounts falling due after more than one year
		2023	2022
		£	£

Net obligations under finance leases and hire purchase contracts	675,809	809,784
	675,809	809,784

Net obligations under finance leases and hire purchase contracts are secured on the assets concerned.

Within one year	848,596	967,316
Between 1-5 years	704,206	828,638
	1,552,802	1,795,954

Page 25

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

21.	Financial instruments
		2023	2022
		£	£

Financial assets
Financial assets measured at fair value through profit or loss	220,504	1,146,365
Financial assets that are debt instruments measured at amortised cost	3,073,149	2,153,470
	3,293,653	3,299,835

	Financial liabilities
	Financial liabilities measured at amortised cost	(2,930,401)	(3,039,769)

	Financial assets measured at fair value through profit or loss comprise cash at bank and in hand, and current asset investments.
	Financial assets that are debt instruments measured at amortised cost comprise trade, group and other debtors.
	Financial liabilities measured at amortised cost comprise trade, group and other creditors and accruals.

22.	Deferred taxation

	2023	2022
	£	£

At beginning of year	(939,257)	(599,859)
Charged to profit or loss	(53,335)	(339,398)
At end of year	(992,592)	(939,257)

The provision for deferred taxation is made up as follows:
	2023	2022
	£	£

Accelerated capital allowances	(1,027,898)	(942,186)
Short term timing differences	35,306	2,929
	(992,592)	(939,257)

Page 26

ARCLID TRANSPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

23.	Share capital
		2023	2022
		£	£

Allotted, called up and fully paid

100 (2022 - 100) Ordinary Shares shares of £1.00 each	100	100

24.

Reserves

Profit & loss account

The profit and loss reserve account represents all profits and losses to date, less dividends paid.

25.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund. Contributions totalling £Nil (2022 - £18,233) were payable to the fund at the reporting date and are included in creditors.

Not later than 1 year	16,009	33,975
Later than 1 year and not later than 5 years	-	16,009
	16,009	49,984

27.	Related party transactions
	The company has taken advantage of the exemption under paragraph 33.1A of FRS 102 and has not disclosed transactions with other wholly owned group companies.

28.	Controlling party

The company's ultimate parent company, which prepares consolidated financial statements, is Archibald Bathgate Group Limited, a company incorporated in England and Wales.
The company is under the control of R. H. Walker.

Page 27