Company registration number 08996632 (England and Wales)
HOWARD'S DISTRIBUTION LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
HOWARD'S DISTRIBUTION LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
HOWARD'S DISTRIBUTION LTD
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,099,977
Current assets
Debtors
5
1,911,924
Cash at bank and in hand
1
1,911,924
1
Creditors: amounts falling due within one year
6
(3,504,692)
Net current (liabilities)/assets
(1,592,768)
1
Total assets less current liabilities
507,209
1
Provisions for liabilities
(224,534)
Net assets
282,675
1
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
282,674
Total equity
282,675
1
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 13 September 2023 and are signed on its behalf by:
A P Howard
Director
Company Registration No. 08996632
HOWARD'S DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Howard's Distribution Ltd is a private company limited by shares incorporated in England and Wales. The registered office is West Hay, Stamford Road, Kings Cliffe, Peterborough, PE8 6XX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements of the company are consolidated in the financial statements of P C Howard (Holdings) Ltd. These consolidated financial statements are available from its registered office, West Hay, Stamford Road, King's Cliffe, Peterborough, Cambridgeshire, PE8 6XX.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
1.3
Turnover
Turnover represents amounts receivable for services net of VAT provided in the normal course of business and is recognised at the point when the service is provided.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Vehicles
25% per annum of net book value
Trailers
15% per annum of net book value
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
HOWARD'S DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets and liabilities
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.8
Equity instruments
Equity instruments, being the share capital, issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.11
Retirement benefits
The company operates an auto enrolment compliant scheme for the benefit of all its employees. The scheme is a defined contribution scheme, and the contributions are charged to the profit and loss account in the year they are payable.
HOWARD'S DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation
Depreciation is recognised to write off the cost or valuation of assets less their residual values over their useful lives at the rates detailed in note 1.4. Further detail of the amounts provided at the beginning and end of the period, together with the charge for the year is shown in Note 5.
Management charges payable
Management charges payable are estimated based upon the level of management involvement in the running of the business. The amount paid in the year was £180,000 (2022: £Nil).
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
68
4
HOWARD'S DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022
Additions
760,968
Disposals
(961,887)
Transfers from fellow group companies
6,467,077
At 31 March 2023
6,266,158
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
468,415
Eliminated in respect of disposals
(939,105)
Transfers from fellow group companies
4,636,871
At 31 March 2023
4,166,181
Carrying amount
At 31 March 2023
2,099,977
At 31 March 2022
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,534,484
Amounts owed by group undertakings
358,885
Other debtors
18,555
1,911,924
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
85,771
Amounts owed to group undertakings
3,390,815
Other creditors
28,106
3,504,692
HOWARD'S DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Garry Wiles FCA
Statutory Auditor:
Stephenson Smart & Co
8
Financial commitments, guarantees and contingent liabilities
On 6 November 2014, a debenture and guarantee was created for all indebtedness due now or in the future, owed to Barclays Bank plc by any group company member by way of fixed and floating charges over the company's assets.
9
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
874,000
-
10
Related party transactions
Transactions with related parties
The company has taken advantage of the exemptions under FRS102 Section 1A-small entities not to disclose the transactions between the company and its parent and fellow subsidiaries on the basis that the company is a wholly owned subsidiary.
11
Parent company
The immediate parent of the company is P C Howard Limited, a private company limited by shares incorporated in England & Wales on 23 December 2021.
The ultimate parent company is P C Howard (Holdings) Limited, a private company limited by shares incorporated in England & Wales
The registered office of the immediate and ultimate parent companies is West Hay, Stamford Road, King's Cliffe, Peterborough, Cambridgeshire, PE8 6XX.
The ultimate parent group financial statements that consolidate this company is P C Howard (Holdings) Limited. Group accounts are available from the registered office.
No one individual has overall control of the ultimate parent company.
12
Off balance sheet arrangements
Included within fixed assets are assets with a net book value of £1,882,558 (2022 : £Nil). that are held under hire purchase agreements. The remaining liability for the hire purchase agreements of £1,444,141 (2022 : £Nil) is included within the financial statements of the ultimate parent company P C Howard (Holdings) Ltd.