Far Logistics (Felixstowe) Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 09845844 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

FAR LOGISTICS (FELIXSTOWE) LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

8

DIRECTORS:

Mr B P Hay

Mr L A McGonagle

Mr S P Boucher

Mr L Phillips

SECRETARY:

Mr L A McGonagle

REGISTERED OFFICE:

Leestone Road

Sharston Industrial Estate

Sharston

Manchester

M22 4RB

REGISTERED NUMBER:

09845844 (England and Wales)

INDEPENDENT AUDITORS:

Allens Accountants Limited

Registered Auditors and

Chartered Accountants

123 Wellington Road South

Stockport

Cheshire

SK1 3TH

FIXED ASSETS

Tangible assets

5

11,582

29,116

CURRENT ASSETS

Debtors

6

13,845,221

3,136,075

Cash at bank

1,231,379

147,979

15,076,600

3,284,054

CREDITORS

Amounts falling due within one year

7

8,049,627

2,069,256

NET CURRENT ASSETS

7,026,973

1,214,798

TOTAL ASSETS LESS CURRENT LIABILITIES

7,038,555

1,243,914

PROVISIONS FOR LIABILITIES

10

806

-

NET ASSETS

7,037,749

1,243,914

CAPITAL AND RESERVES

Called up share capital

11

167

167

Retained earnings

7,037,582

1,243,747

SHAREHOLDERS' FUNDS

7,037,749

1,243,914

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 6 September 2022 and were signed on its behalf by:

Mr B P Hay - Director

1.	STATUTORY INFORMATION

Far Logistics (Felixstowe) Ltd is a private company, limited by shares , registered in England and Wales. 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

After reviewing the Company's financial position, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future being a period of not less than 12 months from the date of approval of these financial statements. The Company therefore continues to adopt the going concern basis in preparing the financial statements.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses for the year. However, the nature of estimation means that actual outcomes could differ from those 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 if revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following judgements have had the most significant effect on amounts recognised in the financial statements;

Purchase estimates - Freight costs are estimated during the year. Many costs are fixed under agreements with shipping lines/agents, but frequently it can take several months to agree freight costs. Estimated costs are reviewed on an ongoing basis by management by age, value and volume to identify any potential issues with estimated costs.

Turnover

Turnover represents the value of services supplied to customers during the year less returns and net of Value Added Tax. Income is recognised in the period for imports and exports as detailed below;

Imports - income is recognised on imports on the date goods arrive at the Port of Entry

Exports - income is recognised on exports on the date goods leave the Port of Lading

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

33% on cost and 25% on reducing balance

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the Income Statement.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the Income Statement.

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 rate method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents comprise of cash at bank and on hand, demand deposits deposits with banks and other short term highly liquid investments with original maturities of three months or less and bank overdrafts. In the Balance Sheet, bank overdrafts are shown within borrowings or current liabilities.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, together with loans to and from related parties.

Debt instruments (other than those wholly repayable or receivable in one year), including loans and other debtors and creditors are initially measured at present value of future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable in one year, typically trade debtors or creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transactions, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

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.

Government grants

Grants and other contributions are accounted for on an accruals basis and recognised in the accounting statements when the conditions for their receipt have been complied with and there is reasonable assurance that the grant or contribution will be received.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

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 the Income Statement in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2020 - 13 ) .

4.	AUDITORS' REMUNERATION

Fees payable to the Company's auditors for the audit of the Company's financial statements were £6,000 (2020 - £6,000).

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2021

43,585

Additions

14,604

Disposals

(30,000

)

At 31 December 2021

28,189

DEPRECIATION

At 1 January 2021

14,469

Charge for year

8,648

Eliminated on disposal

(6,510

)

At 31 December 2021

16,607

NET BOOK VALUE

At 31 December 2021

11,582

At 31 December 2020

29,116

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/21

31/12/20

£

£

Trade debtors

8,752,113

2,626,589

Amounts owed by group undertakings

2,517,406

116,327

Other debtors

2,575,702

393,159

13,845,221

3,136,075

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/21

31/12/20

£

£

Trade creditors

3,251,495

295,122

Amounts owed to group undertakings

987,540

363,441

Taxation and social security

1,253,641

159,256

Other creditors

2,556,951

1,251,437

8,049,627

2,069,256

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31/12/21

31/12/20

£

£

Within one year

18,750

25,000

Between one and five years

-

18,750

18,750

43,750

9.	SECURED DEBTS

The following secured debts are included within creditors:

31/12/21

31/12/20

£

£

HSBC purchasing card

330,802

441,075

Included within other creditors are amounts due to HSBC Bank Plc in respect of purchasing cards. These debts are secured against the assets of the company.

10.	PROVISIONS FOR LIABILITIES

31/12/21

£

Deferred tax

806

Deferred

tax

£

Balance at 1 January 2021

(974

)

Charge to Income Statement during year

1,780

Balance at 31 December 2021

806

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/12/21

31/12/20

value:

£

£

167

Ordinary

£1

167

167

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Paul Wright (Senior Statutory Auditor)

for and on behalf of Allens Accountants Limited

13.	CONTINGENT LIABILITIES

The Company is a member of a group registration for Value Added Tax purposes. Under the terms of the registration, each member is jointly and severally liable for the Value Added Tax liability for all members. The group asset at the year end was £325,956 (2020: £22,410 liability).

The Company has cross-guaranteed the HSBC bank loans and purchasing cards of group companies by way of fixed and floating charge over the assets of the Company. As at the balance sheet date the total balances were as follows:

2021

2020

Bank Loans

£

£

Total group company balances

8,573,774

10,176,461

2021

2020

Purchasing Cards

£

£

Total group company balances

927,034

1,075,257

14.	RELATED PARTY DISCLOSURES

Debtor / (Creditor)

Sales

Purchases

Related Company

£

£

£

Cardinal Maritime Ltd

(1,135,159

)

291

187,199

Far Logistics Ltd

2,214,300

-

358,627

Far Logistics (Glasgow) Ltd

(180,000

)

-

-

Far Logistics (Heathrow) Ltd

17,920

-

-

Far Logistics (Liverpool) Ltd

5,099

-

-

Far Logistics (Manchester) Ltd

(408,973

)

-

6,087

Far Logistics (Nottingham) Ltd

(52,412

)

1,595

99,580

Far Logistics (Southampton) Ltd

153,951

-

-

Far Logistics (Warrington) Ltd

(12,873

)

-

197,289

Far Logistics (Holland) B.V

-

-

-

Cardinal Maritime Ireland Ltd

(284,107

)

-

98,406

Cardinal Maritime Hong Kong Ltd

(335,930

)

-

4,504,172

Cardinal Maritime Shanghai Ltd

(178,469

)

(341

)

1,785,875

Cardinal Maritime Vietnam

(18,795

)

10,954

1,328,717

Cardinal Maritime Singapore

(15,811

)

-

184,192

Cardinal Maritime Malaysia

-

-

-

15.	POST BALANCE SHEET EVENTS

There are no major post balance sheet events to report.

16.	ULTIMATE CONTROLLING PARTY

The company's immediate parent company is Far Logistics Limited, a company incorporated and registered in England and Wales.

The company's ultimate parent company is Cardinal Maritime Group Limited, a company incorporated and registered in England and Wales.

The largest group in which the results are consolidated is that headed by its ultimate holding company, Cardinal Maritime Group Limited, incorporated and registered in England and Wales. The accounts of this company are available to the public and can be obtained from Leestone Road, Sharston Industrial Estate, Sharston, Manchester, M22 4RB. The company is controlled by the directors.