DRIVING_EDGE_LIMITED - Accounts
DRIVING_EDGE_LIMITED - Accounts
Company Registration No. 02180545 (England and Wales)
FOR THE YEAR ENDED 31 DECEMBER 2013
COMPANY INFORMATION
Director
Company number
Registered office
United Kingdom
Auditors
Business address
Unit 13
The Matchworks
Speke Road
Garston
Liverpool
United Kingdom
L19 2RF
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditors' report
4 - 5
Profit and loss account
6
Balance sheet
7
Notes to the financial statements
8 - 16
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2013
- 1 -
Review of the business
The results for the year and the financial position at the year end were considered satisfactory by the director who expects growth in the future.
From the perspective of the company, the principal risks and uncertainties are integrated with the principal risks of the group and are not managed separately. Accordingly, the principal risks and uncertainties of Optimum Solutions For Logistics Limited, which include those of the company, are discussed on page 1 of the groups annual report which does not form part of this report.
The results of the company show a pre-tax profit of £255,141 (2012: £442,002) for the year and sales of £21.7 million (2012: £14 million).
The business continues to operate in a challenging market where customers are driving lower margins.
In response to trading conditions the business is reducing its cost base and moving to a model that is based on higher volumes.
The legislative environment is becoming more onerous and costly to handle. This along with general competitive pressures provides both opportunities for growth and operational cost challenges which the business is well placed to meet, both in terms of its financial base and management capability.
We envisage a number of competitors will fail during the next 12 months and there will be further consolidation. This will provide opportunities for growth (with a smaller supplier base) and to deliver a better service as some of our competition dwell on the issues around acquisition and consolidation. Our debt levels are easily serviceable within the current trading levels.
In short the company is poised for a year of growth and profitability.
The directors of Driving Edge Limited and Optimum Solutions For Logistics Limited manage the group's operations on a regional basis. For this reason, the company's directors believe that analysis using key performance indicators for the company is not necessary or appropriate for an understanding of the development, performance or position of the business of Driving Edge Limited.
Director
24 September 2014
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2013
- 2 -
The director presents his report and financial statements for the year ended 31 December 2013.
Principal activities
Results and dividends
The results for the year are set out on page 6.
Future developments
The external commercial environment is expected to remain competitive in 2014 and beyond, though increased competition has impacted upon our margin levels, as have changes to the Working Time Regulations and the National Minimum Wage, we will endeavor to maintain our current level of performance in the future.
Director
The following director has held office since 1 January 2013:
Employee involvement
The company's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present.
Disabled persons
The company does not discriminate in any way against disabled persons.
The company is an equal opportunities employer and its employment policy enshrines the following objectives:
1. To carefully recruit the right individual for each job.
2. To provide a clear pathway of career opportunities for all individuals who seek to advance their careers.
3. To create an environment where all members of staff are able to communicate their problems, suggestions and ideas to management and where the response is always prompt, constructive and fair.
4. To operate on the basis of equal opportunities for all and where performance and effort are rewarded irrespective of age, colour, gender, marital status, race, religion or sexual orientation.
Auditors
The auditors, Bryden Johnson, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 3 -
Statement of director's responsibilities
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 of disclosure to auditors
On behalf of the board
Director
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF DRIVING EDGE LIMITED
- 4 -
We have audited the financial statements of Driving Edge Limited for the year ended 31 December 2013 set out on pages 6 to 16. 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 director and auditors
As explained more fully in the Director's Responsibilities Statement set out on pages 2 - 3, the director is 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 director; 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 December 2013 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 Director's 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 DRIVING EDGE LIMITED
- 5 -
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 Bryden Johnson
Chartered Accountants
Statutory Auditor
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2013
- 6 -
2013
2012
Notes
£
£
Turnover
2
Cost of sales
(19,358,245 )
(12,546,397 )
Gross profit
Administrative expenses
(1,668,543 )
(1,021,041 )
Operating profit
3
Interest payable and similar charges
4
(439,328 )
(24,269 )
Profit on ordinary activities before taxation
Tax on profit on ordinary activities
5
(93,831 )
(140,708 )
Profit for the year
14
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 DECEMBER 2013
- 7 -
2013
2012
Notes
£
£
£
£
Fixed assets
Tangible assets
6
Current assets
Stocks
8
Debtors: amounts falling due within one year
9
Debtors: amounts falling due after more than one year
9
Cash at bank and in hand
Creditors: amounts falling due within one year
10
(4,607,845 )
(2,887,250 )
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
11
(624,771 )
(697,930 )
Capital and reserves
Called up share capital
13
Profit and loss account
14
Shareholders' funds
15
Approved by the Board and authorised for issue on 24 September 2014
Director
Company Registration No. 02180545
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
- 8 -
1
Accounting policies
1.1
Accounting convention
The company has taken advantage of the exemption in Financial Reporting Standard No 1 (Revised 1996) from the requirement to produce a cash flow statement on the grounds that it is a subsidiary undertaking where 90 percent or more of the voting rights are controlled within the group.
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 (except as otherwise stated).
1.3
Turnover
1.4
Tangible fixed assets and depreciation
Leasehold imp'ments
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
1.5
Leasing and hire purchase commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment 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
Stock
Stock is valued at the lower of cost and net realisable value.
1.7
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.
1.8
Group accounts
The financial statements present information about the company as an individual undertaking and not about its group. The company has not prepared group accounts as it is exempt from the requirement to do so by section 400 of the Companies Act 2006 as it is a subsidiary undertaking of Optimum Solutions for Logistics Limited, a company incorporated in England & Wales, and is included in the consolidated accounts of that company.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 9 -
2
Turnover
3
Operating profit
2013
2012
£
£
Operating profit is stated after charging:
Depreciation of tangible assets
Loss on disposal of tangible assets
-
2,374
Operating lease rentals
- Plant and machinery
7,601
6,020
Auditors' remuneration (including expenses and benefits in kind)
and after crediting:
Profit on disposal of tangible assets
(5,569)
-
4
Interest payable
2013
2012
£
£
Hire purchase interest
215
2,749
On amounts payable to factors
34,104
21,520
Other interest
405,009
-
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 10 -
5
Taxation
2013
2012
£
£
Domestic current year tax
U.K. corporation tax
Total current tax
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 23.25% (2012 - 24.50%)
Effects of:
Non deductible expenses
Depreciation add back
8,118
12,067
Capital allowances
(10,235)
(5,553)
Group Relief
(240)
(1,696)
Chargeable disposals
(1,295)
-
34,518
32,431
Current tax charge for the year
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 11 -
6
Tangible fixed assets
Leasehold imp'ments
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2013
Additions
-
Disposals
-
-
-
(45,289 )
(45,289 )
At 31 December 2013
Depreciation
At 1 January 2013
On disposals
-
-
-
(42,458 )
(42,458 )
Charge for the year
At 31 December 2013
Net book value
At 31 December 2013
At 31 December 2012
Included above are assets held under finance leases or hire purchase contracts as follows:
Motor vehicles
£
Net book values
At 31 December 2013
Depreciation charge for the year
At 31 December 2013
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 12 -
7
Fixed asset investments
Shares in subsidiary undertakings
£
Cost
At 1 January 2013 & at 31 December 2013
13,250
Provisions for diminution in value
At 1 January 2013 & at 31 December 2013
13,250
Net book value
At 31 December 2013
-
At 31 December 2012
-
Holdings of more than 20%
The company holds more than 20% of the share capital of the following companies:
Company
Country of registration or
Shares held
incorporation
Class
%
Subsidiary undertakings
Ordinary
The aggregate amount of capital and reserves and the results of these undertakings for the last relevant financial year were as follows:
Capital and reserves
Profit/(loss) for the year
2013
2013
Principal activity
£
£
12,909
-
8
Stocks
2013
2012
£
£
Finished goods and goods for resale
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 13 -
9
Debtors
2013
2012
£
£
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:
2013
2012
£
£
Amounts owed by group undertakings
4,631,047
4,629,997
10
Creditors: amounts falling due within one year
2013
2012
£
£
Net obligations under hire purchase contracts
-
Trade creditors
Corporation tax
Other taxes and social security costs
Director's current accounts
Other creditors
Accruals and deferred income
Included within other creditors is a balance for the sum of £1,833,849 (2012: £1,038,979) in respect of invoice discounting which is secured against the company's trade debtors.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 14 -
11
Creditors: amounts falling due after more than one year
2013
2012
£
£
Other loans
Net obligations under hire purchase contracts
-
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
Net obligations under hire purchase contracts
Repayable between one and five years
36,147
-
36,147
-
Included in liabilities falling due within one year
(13,144 )
-
23,003
-
12
Pension and other post-retirement benefit commitments
Defined contribution
The company operates a defined contribution 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.
2013
2012
£
£
Contributions payable by the company for the year
13
Share capital
2013
2012
£
£
Allotted, called up and fully paid
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 15 -
14
Statement of movements on profit and loss account
Profit
and loss
account
and loss
account
£
Balance at 1 January 2013
Profit for the year
Balance at 31 December 2013
15
Reconciliation of movements in shareholders' funds
2013
2012
£
£
Profit for the financial year
Opening shareholders' funds
Closing shareholders' funds
16
Financial commitments
At 31 December 2013 the company was committed to making the following payments under non-cancellable operating leases in the year to 31 December 2014:
Land and buildings
Other
2013
2012
2013
2012
£
£
£
£
Operating leases which expire:
Between two and five years
17
Director's remuneration
2013
2012
£
£
Remuneration for qualifying services
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 16 -
18
Employees
Number of employees
The average monthly number of employees (including directors) during the year was:
2013
2012
Number
Number
Administration
17
11
Drivers & warehouse
1,018
765
1,035
776
Employment costs
2013
2012
£
£
Wages and salaries
Social security costs
Other pension costs
19
Control
The immediate parent company is Optimum Solutions For Logistics Limited, a company registered in England and Wales.
Optimum Solutions For Logistics Limited prepares group financial statements and copies can be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
The ultimate controlling party is D Richardson Settlement Trust.
Optimum Solutions For Logistics Limited prepares group financial statements and copies can be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
The ultimate controlling party is D Richardson Settlement Trust.
20
Related party relationships and transactions
Included within creditors: amounts falling due within one year is a balance of £300,000 (2012: £300,000) and included within creditors: amounts falling due after more than one year is a balance of £601,768 (2012: £697,930) due to the director D Richardson.
During the year the director D Richardson charged the company interest of £405,009 (2012: £nil).