B L Shipping (Holdings) Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 10841072 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 November 2020

for

B L Shipping (Holdings) Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

V Verzijl

Ms D M Banks

SECRETARY:

Mrs D E Verzijl

REGISTERED OFFICE:

Brook House

Church Street

Wilmslow

SK9 1AX

REGISTERED NUMBER:

10841072 (England and Wales)

AUDITORS:

Haines Watts

Statutory Auditor

3rd Floor Pacific Chambers

11-13 Victoria Street

Liverpool

Merseyside

L2 5QQ

The directors present their strategic report of the company and the group for the year ended 30 November 2020.

REVIEW OF BUSINESS

The group has managed to maintain its strong position in the market despite uncertainties arising due to Brexit and developments in the housing market.

Our commitment to our core markets continues with the group placing even greater emphasis on customer service. We believe that this emphasis will allow us to continue in a solid fashion during the coming year.

Due to our strength in the European markets we closely monitored developments in the changing rules and regulations surrounding imports and exports to and from the EU. The work we did during the year has meant that we were able to tackle the changes in a productive way. We have been able to offer our customers with reliable and cost effective customs solutions which have benefited our commercial standing and which has further cemented relationships with existing clients.

Our continued search for and development of new services for the benefit of our clients means we continue to keep our approach fresh and we hope that by being proactive we can respond quickly to changes in market conditions.

We continue to work closely with our customers especially those which operate in the building and retail markets. The impact of COVID (and Brexit) has been felt strongly in those markets and our cooperation with those customers has meant we have developed into a Logistics partner rather than merely a freight supplier.

Our existing solid platform and our fresh approach means that we feel that the future continues to be bright for the group.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial risk management objectives and policies

The group uses various financial instruments including cash, trade debtors and trade creditors that arise from its operations.

The existence of these financial instruments exposes the company to market risk, currency risk, interest rate risk, pricing risk, liquidity risk and credit risk. These risks are described below along with the group's policies for managing these risks.

Market risk

Market risk encompasses currency risk, interest rate risk and price risk.

Currency risk

The group is exposed to foreign exchange risk of some of its purchases. The group seeks to manage its foreign exchange volatility through the prudent management of its purchasing patterns and the trends in foreign exchange rates through supply chain efficiencies and pricing policies.

Interest rate risk

The group is exposed to interest rate fluctuations on some transactions. Whilst this risk is not considered material at the current time, changes in market rates of interest could have a material impact on the group's results of operations.

Vendor price risk

The group regularly monitors purchase prices and takes available market actions to mitigate this risk.

Liquidity risk

The group seeks to manage this risk by ensuring sufficient liquidity is available to meet foreseeable needs.

Credit risk

The group's principal financial assets are cash and trade debtors. The principal credit risk arises from the intercompany trade debtors.

In order to manage credit risk, the group sets limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the controller on a regular basis in conjunction with debt ageing and collection history. Provisions against bad debts are made where appropriate.

Key performance indicators

The directors consider a number of key performance indicators, both financial and non-financial, the principal ones are noted below:

2020

2019

£

£

Net sales

34,673,724

34,942,540

Gross profit margin

2,682,065

2,900,175

Gross profit margin (%)

7.7%

8.3%

Operating profit

320,561

467,163

Net current assets/(liabilities)

604,807

(683,746)

Risk of business interruption

The preparations for Brexit were challenging (especially in light of COVID­19) we always felt well placed to maximise the business opportunities. As a licensed Customs broker we were able to deal with the processes and regulations and we used our status as a tool to provide an extended service to our clients.

It is, however, difficult to anticipate what the impact of Brexit and COVID­19 has on the economy as a whole and therefore we are continuing a cautious path. Business disruption due to the Covid­19 pandemic is a real and present challenge. We continue to follow Government guidelines and benefitting from government support. Our COVID­19 impact team anticipate, evaluate and adjust detailed plans in response to the evolving situation. In our opinion we have a level of resilience that will continue to deliver profits despite the adverse conditions.

ON BEHALF OF THE BOARD:

V Verzijl - Director

4 October 2021

The directors present their report with the financial statements of the company and the group for the year ended 30 November 2020.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of a freight forwarder.

DIVIDENDS

An interim dividend of £6,744 per A Ordinary share was paid on 1 September 2020. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 November 2020 will be £290,000.

RESEARCH AND DEVELOPMENT

The group has a continuous programme of research and development. The business has a long standing policy of investment in this area, and continues to invest in innovation and develop techniques and processes to ensure we remain a market leader and remain compliant with the latest technologies and legislation.

FUTURE DEVELOPMENTS

The group continues to focus on being a leading provider of worldwide freight forwarding.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2019 to the date of this report.

V Verzijl

Ms D M Banks

POLITICAL DONATIONS AND EXPENDITURE

There were no political donations made during the year.

DISABLED EMPLOYEES

The group gives full consideration to applications for employment from disabled persons where the candidate's particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion.

Where existing employees become disabled, it is the group's policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim and external advice is also sought, where appropriate.

EMPLOYEE INVOLVEMENT

The group is continuing to develop its internal communications framework for all company employees. The group actively informs all employees of relevant employee related, group and industry information via regular team meetings and communications.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

V Verzijl - Director

4 October 2021

Opinion

We have audited the financial statements of B L Shipping (Holdings) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2020 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 November 2020 and of the group's 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group 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

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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.

Mr Michael Forshaw (Senior Statutory Auditor)

for and on behalf of Haines Watts

Statutory Auditor

3rd Floor Pacific Chambers

11-13 Victoria Street

Liverpool

Merseyside

L2 5QQ

4 October 2021

TURNOVER

34,673,724

34,942,540

Cost of sales

31,991,659

32,042,365

GROSS PROFIT

2,682,065

2,900,175

Administrative expenses

2,498,073

2,500,894

183,992

399,281

Other operating income

136,469

67,220

OPERATING PROFIT

5

320,461

466,501

Interest receivable and similar income

2,827

12,434

323,288

478,935

Interest payable and similar expenses

6

-

45,253

PROFIT BEFORE TAXATION

323,288

433,682

Tax on profit

7

129,541

54,219

PROFIT FOR THE FINANCIAL YEAR

193,747

379,463

Profit attributable to:

Owners of the parent

193,747

379,463

PROFIT FOR THE YEAR

193,747

379,463

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

193,747

379,463

Total comprehensive income attributable to:

Owners of the parent

193,747

379,463

FIXED ASSETS

Intangible assets

10

2,234,972

2,771,366

Tangible assets

11

34,526

33,500

Investments

12

-

-

2,269,498

2,804,866

CURRENT ASSETS

Debtors

13

4,817,852

4,079,490

Cash at bank and in hand

3,319,947

2,206,259

8,137,799

6,285,749

CREDITORS

Amounts falling due within one year

14

7,532,992

6,970,157

NET CURRENT ASSETS/(LIABILITIES)

604,807

(684,408

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,874,305

2,120,458

CREDITORS

Amounts falling due after more than one year

15

850,000

-

NET ASSETS

2,024,305

2,120,458

CAPITAL AND RESERVES

Called up share capital

20

200

100

Other reserves

21

940,000

940,000

Retained earnings

21

1,084,105

1,180,358

SHAREHOLDERS' FUNDS

2,024,305

2,120,458

The financial statements were approved by the Board of Directors and authorised for issue on 4 October 2021 and were signed on its behalf by:

V Verzijl - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

10,254,570

10,254,570

10,254,570

10,254,570

CURRENT ASSETS

Debtors

13

80

80

Cash at bank

484

473

564

553

CREDITORS

Amounts falling due within one year

14

6,916,089

8,206,319

NET CURRENT LIABILITIES

(6,915,525

)

(8,205,766

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,339,045

2,048,804

CREDITORS

Amounts falling due after more than one year

15

850,000

-

NET ASSETS

2,489,045

2,048,804

CAPITAL AND RESERVES

Called up share capital

20

100

100

Other reserves

21

940,000

940,000

Retained earnings

21

1,548,945

1,108,704

SHAREHOLDERS' FUNDS

2,489,045

2,048,804

Company's profit for the financial year

730,241

916,519

The financial statements were approved by the Board of Directors and authorised for issue on 4 October 2021 and were signed on its behalf by:

V Verzijl - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 December 2018

100

800,895

940,000

1,740,995

Changes in equity

Total comprehensive income

-

379,463

-

379,463

Balance at 30 November 2019

100

1,180,358

940,000

2,120,458

Changes in equity

Issue of share capital

100

-

-

100

Dividends

-

(290,000

)

-

(290,000

)

Total comprehensive income

-

193,747

-

193,747

Balance at 30 November 2020

200

1,084,105

940,000

2,024,305

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 December 2018

100

192,185

940,000

1,132,285

Changes in equity

Total comprehensive income

-

916,519

-

916,519

Balance at 30 November 2019

100

1,108,704

940,000

2,048,804

Changes in equity

Dividends

-

(290,000

)

-

(290,000

)

Total comprehensive income

-

730,241

-

730,241

Balance at 30 November 2020

100

1,548,945

940,000

2,489,045

Cash flows from operating activities

Cash generated from operations

1

1,538,490

352,738

Interest paid

-

(45,253

)

Tax paid

(135,820

)

(112,886

)

Net cash from operating activities

1,402,670

194,599

Cash flows from investing activities

Purchase of tangible fixed assets

(31,343

)

(31,532

)

Sale of tangible fixed assets

11,934

-

Interest received

2,827

12,434

Net cash from investing activities

(16,582

)

(19,098

)

Cash flows from financing activities

Loan repayments in year

-

(666,667

)

Amount introduced by directors

17,500

-

Amount withdrawn by directors

-

(7,500

)

Share issue

100

-

Equity dividends paid

(290,000

)

-

Net cash from financing activities

(272,400

)

(674,167

)

Increase/(decrease) in cash and cash equivalents

1,113,688

(498,666

)

Cash and cash equivalents at beginning of year

2

2,206,259

2,704,925

Cash and cash equivalents at end of year

2

3,319,947

2,206,259

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.11.20

30.11.19

£

£

Profit before taxation

323,288

433,682

Depreciation charges

554,930

547,445

Profit on disposal of fixed assets

(153

)

-

Government grants

(82,026

)

-

Finance costs

-

45,253

Finance income

(2,827

)

(12,434

)

793,212

1,013,946

Increase in trade and other debtors

(755,862

)

(5,376

)

Increase/(decrease) in trade and other creditors

1,501,140

(655,832

)

Cash generated from operations

1,538,490

352,738

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 November 2020

30.11.20

1.12.19

£

£

Cash and cash equivalents

3,319,947

2,206,259

Year ended 30 November 2019

30.11.19

1.12.18

£

£

Cash and cash equivalents

2,206,259

2,704,925

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.12.19

Cash flow

At 30.11.20

£

£

£

Net cash

Cash at bank and in hand

2,206,259

1,113,688

3,319,947

2,206,259

1,113,688

3,319,947

Debt

Debts falling due within 1 year

(500,000

)

500,000

-

Debts falling due after 1 year

-

(850,000

)

(850,000

)

(500,000

)

(350,000

)

(850,000

)

Total

1,706,259

763,688

2,469,947

1.	STATUTORY INFORMATION

B L Shipping (Holdings) 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 General 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in,2017, is being amortised evenly over its estimated useful life of seven and a half years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Fixtures and fittings

-

33% on cost

Motor vehicles

-

33% on cost

Computer equipment

-

33% on cost

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.