YARBOROUGH_LIMITED - Accounts
YARBOROUGH_LIMITED - Accounts
Company Registration No. 00660908 (England and Wales)
FOR THE YEAR ENDED 31 JULY 2015
COMPANY INFORMATION
Directors
Company number
Registered office
Auditors
Business address
Birley Vale Avenue
Sheffield
S12 2AX
Bankers
Barclays Bank PLC
2 - 12 Pinstone Street
Sheffield
S1 2HN
Solicitors
Hill Dickinson
City Plaza
Pinfold Street
Sheffield
S1 2GU
CONTENTS
Page
Strategic report
1
Directors' report
2
Independent auditors' report
3 - 4
Profit and loss account
5
Balance sheet
6
Cash flow statement
7
Notes to the cash flow statement
8
Notes to the financial statements
9 - 19
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2015
- 1 -
The directors present the strategic report and financial statements for the year ended 31 July 2015.
Review of the business
The financial year ending 31 July 2015 showed similar out-turns as 2014, with sales around the £8.4m mark.
The fall in price on gas and oil and the unstable market conditions this has caused resulted in a change of sales mix to the previous year with less volume on the metals side of the business, counteracted with very buoyant volumes in palletised freight movement.
Investment within the business continued, in particular on driver training with the launch of the Shepherds in-house driver academy. This has had a positive effect with less reliance on agency workforce and sub-contractors. We have also continued to invest in the fleet and fleet safety measures.
During 2015 the business gained the FORS (freight operator recognition scheme) Gold accreditation which demonstrates our beliefs in putting safety first.
The company is in a secure position at the year end with net assets of £7,125,452
The company is subject to the commercial risks of a competitive market place. Main risks affecting the company are the increased employment and environmental legislation; driver shortages within the logistics sector following the revised CPC rulings from September 2014 and volatile fuel prices.
On behalf of the board
Director
27 October 2015
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2015
- 2 -
The directors present their report and financial statements for the year ended 31 July 2015.
Results and dividends
The results for the year are set out on page 5.
Research and development
Yarborough Limited is developing new ways of improving load safety and restraint methods within its operation.
Directors
The following directors have held office since 1 August 2014:
Auditors
In accordance with section 487 of the Companies Act 2006, Haines Watts will be deemed to be reappointed for the succeeding year.
Statement of directors' responsibilities
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditors
On behalf of the board
Director
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF YARBOROUGH LIMITED
- 3 -
We have audited the financial statements of Yarborough Limited for the year ended 31 July 2015 set out on pages 5 to 19. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 auditors' 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.
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
-
give a true and fair view of the state of the company's affairs as at 31 July 2015 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF YARBOROUGH LIMITED
- 4 -
Matters on which we are required to report by exception
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.
for and on behalf of Haines Watts
Chartered Accountants
Statutory Auditor
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2015
- 5 -
2015
2014
Notes
£
£
Turnover
2
Cost of sales
(6,764,985 )
(6,596,676 )
Gross profit
Administrative expenses
(1,436,648 )
(1,295,695 )
Operating profit
3
Investment income
4
Other interest receivable and similar income
4
Interest payable and similar charges
5
(28,956 )
(31,438 )
Profit on ordinary activities before taxation
Tax on profit on ordinary activities
6
(49,325 )
(88,833 )
Profit for the year
17
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the profit and loss account.
BALANCE SHEET
AS AT 31 JULY 2015
- 6 -
2015
2014
Notes
£
£
£
£
Fixed assets
Tangible assets
8
Investments
9
Current assets
Stocks
10
Debtors: amounts falling due within one year
11
Debtors: amounts falling due after more than one year
11
Cash at bank and in hand
Creditors: amounts falling due within one year
12
(1,581,890 )
(1,640,155 )
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
13
(411,484 )
(565,594 )
Provisions for liabilities
14
(105,467 )
(56,142 )
Capital and reserves
Called up share capital
16
Other reserves
17
Profit and loss account
17
Shareholders' funds
18
Approved by the Board and authorised for issue on 27 October 2015
Director
Director
Company Registration No. 00660908
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2015
- 7 -
2015
2014
£
£
£
£
Net cash inflow/(outflow) from operating activities
500,691
(176,814)
Returns on investments and servicing of finance
Interest received
102
336
Interest paid
(28,956)
(31,438)
Dividends received
3,270
3,300
Net cash outflow for returns on investments and servicing of finance
(25,584)
(27,802)
Taxation
(56,462 )
(72,633 )
Capital expenditure
Payments to acquire tangible assets
(85,771)
(119,467)
Receipts from sales of tangible assets
73,950
23,149
Net cash outflow for capital expenditure
(11,821)
(96,318)
Equity dividends paid
(108,000)
(101,000)
Net cash inflow/(outflow) before management of liquid resources and financing
(474,567 )
Financing
New long term bank loan
-
471,211
Other new short term loans
6,516
232,289
Repayment of long term bank loan
(238,805)
(151,326)
Capital element of hire purchase contracts
(234,731)
(173,499)
Net cash (outflow)/inflow from financing
(467,020)
378,675
Increase in cash in the year
(168,196 )
(95,892)
NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2015
- 8 -
1
Reconciliation of operating profit to net cash inflow/(outflow) from operating activities
2015
2014
£
£
Operating profit
Depreciation of tangible assets
325,347
289,071
Profit on disposal of tangible assets
(40,857 )
(12,736 )
Increase in stocks
(678)
(19,337)
Decrease/(increase) in debtors
38,465
(402,867)
Decrease in creditors within one year
(77,450)
(527,553)
Net cash inflow/(outflow) from operating activities
500,691
(176,814)
2
Analysis of net debt
1 August 2014
Cash flow
Other non-cash changes
£
£
£
£
Net cash:
Cash at bank and in hand
(168,196)
-
Bank deposits
-
-
-
-
Debt:
Finance leases
(423,023)
234,731
(388,557)
(576,849)
Debts falling due within one year
(232,289)
(6,516)
-
(238,805)
Debts falling due after one year
(319,885)
238,805
-
(81,080)
(975,197)
467,020
(388,557)
(896,734)
Net debt
(619,846 )
298,824
(388,557)
(709,579 )
3
Reconciliation of net cash flow to movement in net debt
2015
2014
£
£
Decrease in cash in the year
(168,196 )
(95,892 )
Cash outflow/(inflow) from decrease/(increase) in debt and lease financing
467,020
(378,675)
Change in net debt resulting from cash flows
298,824
(474,567)
New finance lease
(388,557)
(197,767 )
Movement in net debt in the year
(89,733)
(672,334)
Opening net (debt)/funds
(619,846 )
52,488
Closing net debt
(709,579 )
(619,846 )
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2015
- 9 -
1
Accounting policies
1.1
Accounting convention
1.2
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently.
1.3
Turnover
1.4
Tangible fixed assets and depreciation
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
1.5
Leasing and hire purchase commitments
Assets obtained under hire purchase contracts are capitalised as tangible assets and depreciated in accordance with the policy stated above. Assets obtained under finance leases are capitalised as tangible assets and depreciated over the primary lease term. Obligations under these agreements are included in creditors net of finance charges allocated to future periods. The finance element of the rental payments is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.6
Investments
Fixed asset investments are stated at cost less provision for diminution in value.
1.7
Stock
Stocks are valued at the lower of cost and net realisable value.
1.8
Pensions
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.9
Deferred taxation
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2015
- 10 -
2
Turnover
Geographical market
Turnover
2015
2014
£
£
United Kingdom
8,428,248
8,388,979
Overseas
29,249
-
3
Operating profit
2015
2014
£
£
Operating profit is stated after charging:
Depreciation of tangible assets
Operating lease rentals
126,882
125,594
Auditors' remuneration (including expenses and benefits in kind)
and after crediting:
Profit on disposal of tangible assets
(40,857)
(12,736)
4
Investment income
2015
2014
£
£
Income from fixed asset investments
Bank interest
3,372
3,636
5
Interest payable
2015
2014
£
£
On bank loans and overdrafts
Hire purchase interest
21,262
14,880
On amounts payable to factors
-
7,861
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2015
- 11 -
6
Taxation
2015
2014
£
£
Domestic current year tax
U.K. corporation tax
-
Total current tax
-
Deferred tax
Origination and reversal of timing differences
49,325
32,371
Factors affecting the tax charge for the year
Profit on ordinary activities before taxation
Profit on ordinary activities before taxation multiplied by standard rate of UK corporation tax of 21.00% (2014 - 23.00%)
Effects of:
Non deductible expenses
(4,917 )
Depreciation add back
59,743
63,557
Capital allowances
(104,548)
(100,330)
Dividends and distributions received
(687)
(759)
Other tax adjustments
(3,212)
(8,914)
(48,359)
(51,363)
Current tax charge for the year
-
7
Dividends
2015
2014
£
£
Ordinary interim paid
108,000
101,000
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2015
- 12 -
8
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2014
Additions
Disposals
-
-
(527,251 )
(527,251 )
At 31 July 2015
Depreciation
At 1 August 2014
On disposals
-
-
(494,158 )
(494,158 )
Charge for the year
At 31 July 2015
Net book value
At 31 July 2015
At 31 July 2014
Included above are assets held under finance leases or hire purchase contracts as follows:
Motor vehicles
£
Net book values
At 31 July 2015
At 31 July 2014
Depreciation charge for the year
At 31 July 2015
At 31 July 2014
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2015
- 13 -
9
Fixed asset investments
Unlisted investments
£
Cost
At 1 August 2014 & at 31 July 2015
22,875
Net book value
At 31 July 2015
At 31 July 2014
10
Stocks
2015
2014
£
£
Raw materials and consumables
11
Debtors
2015
2014
£
£
Trade debtors
Amounts owed by parent and fellow subsidiary undertakings
Other debtors
Prepayments and accrued income
Amounts falling due after more than one year and included in the debtors above are:
2015
2014
£
£
Amounts owed by group undertakings
6,199,671
6,029,150
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2015
- 14 -
12
Creditors: amounts falling due within one year
2015
2014
£
£
Bank loans and overdrafts
Net obligations under hire purchase contracts
Trade creditors
Corporation tax
-
Other taxes and social security costs
Other creditors
Accruals and deferred income
The total of net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned. The bank loan is secured by a cross guarantee and debenture by and between Yarborough Limited and Shepherd Distribution Services Limited.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2015
- 15 -
13
Creditors: amounts falling due after more than one year
2015
2014
£
£
Bank loans
Net obligations under hire purchase contracts
Analysis of loans
Wholly repayable within five years
319,885
552,174
319,885
552,174
Included in current liabilities
(238,805)
(232,289)
81,080
319,885
Loan maturity analysis
In more than one year but not more than two years
In more than two years but not more than five years
-
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
The bank loan is secured by a cross guarantee and debenture by and between Yarborough Limited and Shepherd Distribution Services Limited.
The bank loan is secured by a cross guarantee and debenture by and between Yarborough Limited and Shepherd Distribution Services Limited.
Net obligations under hire purchase contracts
Repayable within one year
267,655
182,109
Repayable between one and five years
357,839
262,017
625,494
444,126
Finance charges and interest allocated to future accounting periods
(48,645)
(21,103)
576,849
423,023
Included in liabilities falling due within one year
(246,445 )
(177,314 )
330,404
245,709
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2015
- 16 -
14
Provisions for liabilities
Deferred tax liability
£
Balance at 1 August 2014
56,142
Profit and loss account
Balance at 31 July 2015
The deferred tax liability is made up as follows:
2015
2014
£
£
Accelerated capital allowances
15
Pension and other post-retirement benefit commitments
Defined contribution
2015
2014
£
£
Contributions payable by the company for the year
16
Share capital
2015
2014
£
£
Allotted, called up and fully paid
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2015
- 17 -
17
Statement of movements on reserves
Other reserves
(see below)
(see below)
Profit
and loss
account
and loss
account
£
£
Balance at 1 August 2014
Profit for the year
-
Dividends paid
-
(108,000 )
Balance at 31 July 2015
Other reserves
Capital redemption reserve
Balance at 1 August 2014 & at 31 July 2015
2,000
18
Reconciliation of movements in Shareholders' funds
2015
2014
£
£
Profit for the financial year
Dividends
(108,000 )
(101,000 )
Net addition to shareholders' funds
Opening Shareholders' funds
Closing Shareholders' funds
19
Financial commitments
At 31 July 2015 the company was committed to making the following payments under non-cancellable operating leases in the year to 31 July 2016:
Land and buildings
Other
2015
2014
2015
2014
£
£
£
£
Operating leases which expire:
Within one year
-
-
Between two and five years
-
-
-
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2015
- 18 -
20
Capital commitments
2015
2014
£
£
At 31 July 2015 the company had capital commitments as follows:
Contracted for but not provided in the financial statements
-
216,930
21
Directors' remuneration
2015
2014
£
£
Remuneration for qualifying services
Company pension contributions to defined contribution schemes
271,096
137,019
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2014 - 2).
22
Employees
Number of employees
The average monthly number of employees (including directors) during the year was:
2015
2014
Number
Number
Administration
27
27
Distribution
86
81
113
108
Employment costs
2015
2014
£
£
Wages and salaries
Social security costs
Other pension costs
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2015
- 19 -
23
Control
The ultimate controlling party is Shepherd Distribution Services Limited which owns 100% of the shares in Yarborough Limited.
The current directors are also the directors and shareholders of the holding company.
The current directors are also the directors and shareholders of the holding company.
24
Related party relationships and transactions
Amounts owed to the company at the year end from the holding company Shepherd Distribution Services Limited totalled £6,199,671 (2014 - £6,029,150)