Currie European Transport Limited - Limited company accounts 16.3

REGISTERED NUMBER: SC062686 (Scotland)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

FOR

CURRIE EUROPEAN TRANSPORT LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

T W Barrie

S G Turner

R Coulthard

S P Walls

A E Jamieson

Mrs A Lees

SECRETARY:

T W Barrie

REGISTERED OFFICE:

Edinburgh Road

Heathhall

Dumfries

DG1 3NX

REGISTERED NUMBER:

SC062686 (Scotland)

AUDITORS:

Bannerman Johnstone Maclay

Chartered Accountants

and Statutory Auditor

213 St Vincent Street

Glasgow

G2 5QY

BANKERS:

Bank of Scotland

91 High Street

Dumfries

DG1 2BN

The directors present their strategic report for the year ended 31 December 2016.

The principal activity in the year under review was that of haulage contracting to and from other European countries

including European Freight forwarding operations. The company is also involved in haulage contracting in the UK plus

the provision of storage facilities.

REVIEW OF BUSINESS

The UK market remains extremely price competitive with few customers receptive to price increases. Rising operating

costs are squeezing margins further which is exacerbated by the ongoing and increasing driver shortage across the UK.

European export volumes from the UK to mainland Europe continue to be inconsistent and generally weak but import

volumes are strong and healthy.

Despite these challenges the business continued to develop its long standing existing customer relationships and was

successful in securing a number of new contracts.

The business continued to invest in new vehicles and new trailers throughout the year.

PRINCIPAL RISKS AND UNCERTAINTIES

During the forthcoming year the board consider the principal risks and uncertainties affecting the company to be:

- Competition across all markets

- Volatility of fuel prices

- Managing foreign currency exposure

- Managing the impact of the difficult economic conditions on our suppliers and customers

Having considered the risks to the company, the board are of the opinion that the company can respond to and mitigate

the impact of these risks and uncertainties.

FUTURE DEVELOPMENTS

The primary business objective for the year ahead will be to focus on margin improvement across all of our core

services.

ON BEHALF OF THE BOARD:

S G Turner - Director

14 September 2017

The directors present their report with the financial statements of the company for the year ended 31 December 2016.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2016 will be £126,000 (2015: £136,233).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2016 to the date of this

report.

T W Barrie

S G Turner

R Coulthard

S P Walls

A E Jamieson

Mrs A Lees

Other changes in directors holding office are as follows:

A B Cook ceased to be a director after 31 December 2016 but prior to the date of this report.

EMPLOYEE INVOLVEMENT

The directors recognise the importance of encouraging staff throughout the organisation to contribute to the future

success of the business.

Various profit improvement initiatives have been implemented to ensure staff at all levels have the opportunity to take

an active role in developing and improving key areas of the business. This has been achieved by setting up formal

committees and internal work groups who meet on a regular basis.

Off site management meetings are held at least twice per annum involving all directors and managers from each area

office throughout the UK, France and Holland where discussions and presentations are made to the management team.

The company has introduced a management incentive scheme to encourage and reward managers based on the

performance of the business.

EMPLOYMENT OF DISABLED PERSONS

The company offers equal opportunities to disabled applicants with regard to the aptitudes and abilities which they offer

to a vacant position, and endeavour to ensure that these employees benefit from the same training and career

development that is on offer to able-bodied employees.

The company also arranges appropriate retraining for those individuals who become disabled during the operation of

their employment with the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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;

-	state whether applicable 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

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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

company's auditors are aware of that information.

AUDITORS

The auditors, Bannerman Johnstone Maclay, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

S G Turner - Director

14 September 2017

We have audited the financial statements of Currie European Transport Limited for the year ended 31 December 2016

on pages seven to eighteen. 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), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 Strategic Report and the Report of the Directors 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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2016 and of its loss 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, based on the work undertaken in the course of our audit, the information given in the Strategic Report

and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with

the financial statements, and has been prepared in accordance with applicable legal requirements. In the light of the

knowledge and understanding of the company and its environment, we have not identified any material misstatements in

the Strategic Report or the Report of the Directors.

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.

Martin McBeth BAcc CA (Senior Statutory Auditor)

for and on behalf of Bannerman Johnstone Maclay

Chartered Accountants

and Statutory Auditor

213 St Vincent Street

Glasgow

G2 5QY

14 September 2017

TURNOVER

40,148,705

40,612,039

Cost of sales

35,796,046

35,754,527

GROSS PROFIT

4,352,659

4,857,512

Administrative expenses

4,259,080

4,468,016

OPERATING PROFIT

4

93,579

389,496

Interest payable and similar expenses

5

242,349

294,843

(LOSS)/PROFIT BEFORE TAXATION

(148,770

)

94,653

Tax on (loss)/profit

6

(40,850

)

(2,721

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(107,920

)

97,374

(LOSS)/PROFIT FOR THE YEAR

(107,920

)

97,374

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(107,920

)

97,374

FIXED ASSETS

Tangible assets

8

3,701,274

4,393,471

Investments

9

60,000

60,000

3,761,274

4,453,471

CURRENT ASSETS

Stocks

10

87,989

91,671

Debtors

11

10,724,423

9,874,318

Cash in hand

1,551

1,213

10,813,963

9,967,202

CREDITORS

Amounts falling due within one year

12

11,939,816

10,887,146

NET CURRENT LIABILITIES

(1,125,853

)

(919,944

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,635,421

3,533,527

CREDITORS

Amounts falling due after more than one year

13

(948,782

)

(1,544,663

)

PROVISIONS FOR LIABILITIES

16

(388,633

)

(456,938

)

NET ASSETS

1,298,006

1,531,926

CAPITAL AND RESERVES

Called up share capital

17

35,000

35,000

Retained earnings

18

1,263,006

1,496,926

SHAREHOLDERS' FUNDS

1,298,006

1,531,926

The financial statements were approved by the Board of Directors on 14 September 2017 and were signed on its behalf by:

S G Turner - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2015

35,000

1,535,785

1,570,785

Changes in equity

Dividends

-

(136,233

)

(136,233

)

Total comprehensive income

-

97,374

97,374

Balance at 31 December 2015

35,000

1,496,926

1,531,926

Changes in equity

Dividends

-

(126,000

)

(126,000

)

Total comprehensive income

-

(107,920

)

(107,920

)

Balance at 31 December 2016

35,000

1,263,006

1,298,006

1.	STATUTORY INFORMATION

Currie European Transport Limited is a private company, limited by shares , registered in Scotland. The

company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements,

as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided on cost in equal annual instalments at the following annual rates in order to write off

each asset over its estimated useful life:

Trailers

10 years

Trucks

6 years

Motor cars and office equipment

4 years

Other plant

2-10 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under finance lease and hire purchase contracts are capitalised at their fair value on acquisition

and depreciated over their estimated useful lives. The finance charges are allocated over the period of the lease

or contract in proportion to the capital element outstanding.

Operating lease rentals are charged to income in equal annual amounts over the lease term.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Cash flow statement

The company has not presented a cash flow statement. It has taken advantage of the exemption contained in

Financial Reporting Standard 102 section 7 " Statement of Cash Flows", as the ultimate parent company, Currie

International Holdings Limited has included a consolidated cash flow within its group accounts.

3.	EMPLOYEES AND DIRECTORS

2016

2015

£

£

Wages and salaries

7,239,713

6,875,852

Social security costs

651,853

553,180

Other pension costs

104,739

79,020

7,996,305

7,508,052

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

2016

2015

Office and management

77

76

Direct employees

227

213

304

289

2016

2015

£

£

Directors' remuneration

394,654

323,061

Directors' pension contributions to money purchase schemes

71,736

50,805

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

7

7

Information regarding the highest paid director is as follows:

2016

2015

£

£

Emoluments etc

96,080

91,904

Pension contributions to money purchase schemes

11,250

11,250

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2016

2015

£

£

Hire of plant and machinery

2,149,524

2,381,922

Depreciation - owned assets

321,094

280,764

Depreciation - assets on hire purchase contracts

466,810

541,807

(Profit)/loss on disposal of fixed assets

(29,865

)

24,208

Auditors' remuneration

22,000

22,000

Auditors' remuneration for non audit work

5,000

5,000

Foreign exchange differences

103,766

21,715

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2016

2015

£

£

Invoice discounting charges

97,793

124,242

Hire purchase

144,556

170,601

242,349

294,843

6.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2016

2015

£

£

Current tax:

UK corporation tax

27,455

49,035

Deferred tax:

Timing differences,

origination and reversal

(68,305

)

(51,756

)

Tax on (loss)/profit

(40,850

)

(2,721

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is

explained below:

2016

2015

£

£

(Loss)/profit before tax

(148,770

)

94,653

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 20% (2015 - 20.232%)

(29,754

)

19,150

Effects of:

Expenses not deductible for tax purposes

12,471

11,306

Income not taxable for tax purposes

(9,085

)

(4,376

)

Depreciation in excess of capital allowances

53,823

22,955

Deferred tax movement

(68,305

)

(51,756

)

Total tax credit

(40,850

)

(2,721

)

7.

DIVIDENDS

2016

2015

£

£

Ordinary shares of £1 each

Interim

126,000

136,233

8.	TANGIBLE FIXED ASSETS

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 January 2016

1,325,863

7,672,077

8,997,940

Additions

142,922

16,030

158,952

Disposals

-

(822,255

)

(822,255

)

At 31 December 2016

1,468,785

6,865,852

8,334,637

DEPRECIATION

At 1 January 2016

1,191,124

3,413,345

4,604,469

Charge for year

62,165

725,739

787,904

Eliminated on disposal

-

(759,010

)

(759,010

)

At 31 December 2016

1,253,289

3,380,074

4,633,363

NET BOOK VALUE

At 31 December 2016

215,496

3,485,778

3,701,274

At 31 December 2015

134,739

4,258,732

4,393,471

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 January 2016

36,352

5,015,895

5,052,247

Additions

118,930

-

118,930

Transfer to ownership

(22,099

)

(966,220

)

(988,319

)

At 31 December 2016

133,183

4,049,675

4,182,858

DEPRECIATION

At 1 January 2016

24,889

1,528,036

1,552,925

Charge for year

12,603

454,207

466,810

Transfer to ownership

(16,574

)

(421,756

)

(438,330

)

At 31 December 2016

20,918

1,560,487

1,581,405

NET BOOK VALUE

At 31 December 2016

112,265

2,489,188

2,601,453

At 31 December 2015

11,463

3,487,859

3,499,322

9.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1 January 2016

and 31 December 2016

60,000

NET BOOK VALUE

At 31 December 2016

60,000

At 31 December 2015

60,000

The company has a 12% shareholding in Harlequin Logistics Limited, a company incorporated in England.

10.

STOCKS

2016

2015

£

£

Stocks

87,989

91,671