ACCOUNTS - Final Accounts


Caseware UK (AP4) 2021.0.152 2021.0.152 2022-06-302022-06-30trueNo description of principal activity2021-07-01truetruetruetruetrue71falsefalse63true 00129014 2021-07-01 2022-06-30 00129014 2022-06-30 00129014 2020-07-01 2021-06-30 00129014 2021-06-30 00129014 6 2021-07-01 2022-06-30 00129014 6 2020-07-01 2021-06-30 00129014 d:CompanySecretary1 2021-07-01 2022-06-30 00129014 d:Director4 2021-07-01 2022-06-30 00129014 d:Director5 2021-07-01 2022-06-30 00129014 d:Director6 2021-07-01 2022-06-30 00129014 d:RegisteredOffice 2021-07-01 2022-06-30 00129014 e:Buildings e:ShortLeaseholdAssets 2021-07-01 2022-06-30 00129014 e:Buildings e:ShortLeaseholdAssets 2022-06-30 00129014 e:Buildings e:ShortLeaseholdAssets 2021-06-30 00129014 e:PlantMachinery 2021-07-01 2022-06-30 00129014 e:PlantMachinery 2022-06-30 00129014 e:PlantMachinery 2021-06-30 00129014 e:PlantMachinery e:OwnedOrFreeholdAssets 2021-07-01 2022-06-30 00129014 e:OwnedOrFreeholdAssets 2021-07-01 2022-06-30 00129014 e:CurrentFinancialInstruments 2022-06-30 00129014 e:CurrentFinancialInstruments 2021-06-30 00129014 e:CurrentFinancialInstruments e:WithinOneYear 2022-06-30 00129014 e:CurrentFinancialInstruments e:WithinOneYear 2021-06-30 00129014 f:UnitedKingdom 2021-07-01 2022-06-30 00129014 f:UnitedKingdom 2020-07-01 2021-06-30 00129014 f:RestWorldOutsideUK 2021-07-01 2022-06-30 00129014 f:RestWorldOutsideUK 2020-07-01 2021-06-30 00129014 e:UKTax 2021-07-01 2022-06-30 00129014 e:UKTax 2020-07-01 2021-06-30 00129014 e:ShareCapital 2022-06-30 00129014 e:ShareCapital 2021-06-30 00129014 e:RetainedEarningsAccumulatedLosses 2021-07-01 2022-06-30 00129014 e:RetainedEarningsAccumulatedLosses 2022-06-30 00129014 e:RetainedEarningsAccumulatedLosses 2020-07-01 2021-06-30 00129014 e:RetainedEarningsAccumulatedLosses 2021-06-30 00129014 e:RetainedEarningsAccumulatedLosses 2020-07-01 00129014 d:OrdinaryShareClass1 2021-07-01 2022-06-30 00129014 d:OrdinaryShareClass1 2022-06-30 00129014 d:OrdinaryShareClass1 2021-06-30 00129014 d:FRS102 2021-07-01 2022-06-30 00129014 d:Audited 2021-07-01 2022-06-30 00129014 d:FullAccounts 2021-07-01 2022-06-30 00129014 d:PrivateLimitedCompanyLtd 2021-07-01 2022-06-30 00129014 e:WithinOneYear 2022-06-30 00129014 e:WithinOneYear 2021-06-30 00129014 e:BetweenOneFiveYears 2022-06-30 00129014 e:BetweenOneFiveYears 2021-06-30 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 00129014







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2022


WORLD TRANSPORT AGENCY LIMITED






































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WORLD TRANSPORT AGENCY LIMITED
 


 
COMPANY INFORMATION


Directors
T Kuehn 
J D Sommer 
E C Evans 




Company secretary
I U Din



Registered number
00129014



Registered office
Mioc Suite 3e
Styal Road

Manchester

M22 5WB




Independent auditor
Menzies LLP
Chartered Accountants & Statutory Auditor

1st Floor

Midas House

62 Goldsworth Road

Woking

Surrey

GU21 6LQ





 


WORLD TRANSPORT AGENCY LIMITED
 



CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditor's Report
5 - 8
Statement of Income and Retained Earnings
9
Statement of Financial Position
10
Notes to the Financial Statements
11 - 20


 


WORLD TRANSPORT AGENCY LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2022

Business review
 
The principal activity of the Company in the year under review was that of international freight management.
The Company completed the move into our new headquarters in Manchester and consolidates operations to this location, the Company retains a strategic office in London.
During the year, the Company has continued to work with its network of global partners to give our clients a high quality of service. With air, sea, overland and warehousing capabilities, we have provided smart solutions that meet our clients' requirements despite the global disruption and freight rates remaining volatile. Due to our independent family owned nature, we have been able to give a level of flexibility which large corporations simply cannot match.
The impact of Covid-19 had an extensive impact on global logistics which resulted in restricted supply chains and correspondingly historically high freight costs. This, coupled with pent up demand enabled the Company to post significantly higher year on year Turnover albeit at a much higher associated cost. The result was a Gross Profit of £8.0 million (a 43% increase vs 2021). Costs increased as a result of higher staff incentives and increased headcount which resulted in a Profit Before Tax of £2.8 million (a 108% increase vs 2021)
The Company continues to remain financially strong with Net Assets of £4.4 million and a high level of liquidity.
This year the Company’s performance is in line with the directors’ expectations with increased profitability.

Future developments
 
The Company will continue to expand its business activities by increasing its expertise and focus on selected industries.
There are no other significant developments planned that will impact the business for the foreseeable future, other than the uncertainty of political decisions which dampen economic activity due to Covid 19 restrictions. The Company is well structured to operate a hybrid model.

Key performance indicators
 
The Company monitors its performance against strategic objectives by means of key performance indicators. The main KPIs it uses are orientated around gross profit to net profit margins, staff costs to gross profit and sales growth. Directors are satisfied with key performance indicators, namely the increase in gross profit which has been increased due largely to top line growth.
Non financial KPIs are not produced here because, given the nature of the business, the Company's directors are of the opinion that analysis using such KPIs is not necessary for an understanding of the development, performance or position of the entity.

2022
2021
2020
2019
2018
      £000
      £000
      £000
      £000
      £000

Gross profit

8,031

5,604

5,352
 
5,452
 
5,313

Staff costs

4,281

3,114

2,987
 
3,160
 
2,941

Net profit

2,386

1,035

978
 
887
 
972


Page 1

 


WORLD TRANSPORT AGENCY LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022

Principal risks and uncertainties
 
The management of the business and the execution of the Company’s strategy are subject to a number of risks.
The principal risks and uncertainties faced by the Company are operational risk, reputation risk and product warranty risk. To a lesser extent the company also faces credit and liquidity risk.
Operational risk is managed and mitigated through the maintenance of appropriate systems, processes and controls and training of staff to maintain the quality of the services provided. Operational risk is further mitigated by professional indemnity and public liability insurance.
Credit risk has decreased due to the falling shipping rates; this still requires close management from the senior team and is also managed by credit worthiness checks of clients and institutions where cash is deposited. Liquidity risk is mitigated by daily monitoring of cash requirements to ensure sufficient cash reserves are in place to meet actual and forecast requirements of the Company. 
Whilst the Company is not immune to the effects of a macro level recession of the economy, the business model is long term and historic performance has shown that demand for the product is sustainable.
The uncertainty around the subject of how the UK will exit the EU has ended. The Company is well positioned to take advantage of the opportunity this creates for additional customs clearance activity.

Directors' statement of compliance with duty to promote the success of the Company
 
Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders and other matters in their decision making. The Board of Directors consider that the decisions they have made during the financial year and the way they have acted have promoted the success of the Company for the benefit of its members as a whole having regard for the stakeholders and matters set out in s172 (1) (a-f) of the Act.
The Company engages with its employees, customers and suppliers through a variety of means, including:
Employees – internal updates regarding the Company's trading performance, strategy and key decisions and developments, provision of training, support during the Covid-19 pandemic to facilitate home working and Covid secure working conditions.
Customers – website, technical support, newsletters / blogs, market and account reviews, in order to foster strong long term relationships.
Suppliers – joint trading reviews and market updates to grow sales and determine opportunities, to foster strong long term supply arrangements.


This report was approved by the board and signed on its behalf.



................................................
J D Sommer
Director
Date: 2 February 2023

Page 2

 


WORLD TRANSPORT AGENCY LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2022

The directors present their report and the financial statements for the year ended 30 June 2022.

Directors

The directors who served during the year were:

T Kuehn 
J D Sommer 
E C Evans 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 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'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,287,101 (2021 -  £1,034,520).

Particulars of dividends paid are detailed in note 13 to the financial statements.

Matters covered in the Strategic Report

The Company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 to set out in Company’s Strategic Report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review and the principal risks and uncertainties.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Page 3

 


WORLD TRANSPORT AGENCY LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022

Auditor

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
I U Din
Company Secretary

Date: 2 February 2023

Page 4

 


WORLD TRANSPORT AGENCY LIMITED
 

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORLD TRANSPORT AGENCY LIMITED

Opinion


We have audited the financial statements of World Transport Agency Limited (the 'Company') for the year ended 30 June 2022, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 30 June 2022 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.


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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditor's Report thereon.  The directors are responsible for the other information contained within the Annual Report.  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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves.  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.


Page 5

 


WORLD TRANSPORT AGENCY LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORLD TRANSPORT AGENCY LIMITED (CONTINUED)

Opinion 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 is 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 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 Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


WORLD TRANSPORT AGENCY LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORLD TRANSPORT AGENCY LIMITED (CONTINUED)

Auditor's 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 an Auditor's Report 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:

The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation;
UK health and safety legislation; and
General Data Protection Regulations.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Company are complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgments made by management in its significant accounting estimates; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
°Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount;
°Timing of revenue recognition; and
°The use of management override of controls to manipulate results.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's Report.


Page 7

 


WORLD TRANSPORT AGENCY LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORLD TRANSPORT AGENCY LIMITED (CONTINUED)

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 2006Our 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 Auditor's 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.





Tom Woods ACA (Senior Statutory Auditor)
for and on behalf of
Menzies LLP
Chartered Accountants
Statutory Auditor
1st Floor
Midas House
62 Goldsworth Road
Woking
Surrey
GU21 6LQ

2 February 2023
Page 8

 


WORLD TRANSPORT AGENCY LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2022

2022
2021
Note
£
£

  

Turnover
 4 
84,323,734
44,941,931

Cost of sales
  
(76,292,985)
(39,338,382)

Gross profit
  
8,030,749
5,603,549

Administrative expenses
  
(5,271,059)
(4,399,877)

Other operating income
 5 
-
116,811

Operating profit
 6 
2,759,690
1,320,483

Income from fixed assets investments
  
37,320
18,660

Interest receivable and similar income
 10 
7,484
5,965

Interest payable and expenses
 11 
(8,051)
-

Profit before tax
  
2,796,443
1,345,108

Tax on profit
 12 
(509,342)
(310,588)

Profit after tax
  
2,287,101
1,034,520

  

  

Retained earnings at the beginning of the year
  
3,242,169
2,662,385

  
3,242,169
2,662,385

Profit for the year
  
2,287,101
1,034,520

Dividends declared and paid
  
(1,278,699)
(454,736)

Retained earnings at the end of the year
  
4,250,571
3,242,169

The notes on pages 11 to 20 form part of these financial statements.

Page 9

 


WORLD TRANSPORT AGENCY LIMITED
REGISTERED NUMBER:00129014



STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 14 
104,517
90,836

Investments
 15 
3,587
3,587

  
108,104
94,423

Current assets
  

Debtors: amounts falling due within one year
 16 
11,525,950
10,942,895

Cash at bank and in hand
  
4,414,470
1,877,957

  
15,940,420
12,820,852

Creditors: amounts falling due within one year
 17 
(11,774,153)
(9,649,306)

Net current assets
  
 
 
4,166,267
 
 
3,171,546

Total assets less current liabilities
  
4,274,371
3,265,969

  

Net assets
  
4,274,371
3,265,969


Capital and reserves
  

Called up share capital 
 18 
23,800
23,800

Profit and loss account
 19 
4,250,571
3,242,169

  
4,274,371
3,265,969


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
J D Sommer
................................................
T Kuehn
Director
Director


Date: 2 February 2023
Date:2 February 2023

Page 10

 


WORLD TRANSPORT AGENCY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

1.


Company information

World Transport Agency Limited is a private company limited by shares and incorporated in England, United Kingdom under the Companies Act 2006. The address of the principal place of business is the same as the registered office and is disclosed on the company information page of these accounts.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Sommer Holdings Limited as at 30 June 2022 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF4 3UZ.

 
2.3

Revenue

It is the Company's practice to recognise revenue on the basis of work performed and services rendered, including when these occur ahead of invoices being raised. This involves bringing into debtors and turnover amounts which are invoiced subsequent to the Statement of Financial Position date therefore some estimation is required. Turnover represents the value of services supplied by the Company, excluding Value Added Tax, HMRC VAT and Duty paid on behalf of customers.

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 11

 


WORLD TRANSPORT AGENCY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

2.Accounting policies (continued)


2.4
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows: .

Depreciation is provided on the following basis:

Leasehold improvements
-
Over the period of the lease
Plant and machinery
-
25% and 33% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.5
Pension costs

The Company participates in a defined contribution and defined benifit scheme which is operated by its parent company. Contributions payable for the year are charged to the Statement of Income and Retained Earnings. 

  
2.6
Foreign currencies

The Company's functional and presentational currency is GBP.
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items and on the retranslations of monetary items are taken to the profit and loss account. Exchange differences arising on non-monetary items, carried at fair value, are included in the profit and loss account, except for the differences arising on the retranslation of non-monetary items in respect of which gains and losses are recorded in equity. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in equity. 

  
2.7
Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities, or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. 

  
2.8
Investments

Investments in unlisted shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined such investments are stated at cost less impairment.

 
2.9

Government grants

Grants are accounted under the accruals model as permitted by FRS 102.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

Page 12

 


WORLD TRANSPORT AGENCY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

2.Accounting policies (continued)

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight line basis over the lease term.

 
2.12

Operating leases: the Company as lessee

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


3.


Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
The directors do not consider there to be any judgments or estimation uncertainty which materially impact these
financial statements.


4.


Turnover

The turnover and profit before tax are attributable to the one principal activity of the Company.

Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
70,347,630
35,039,287

Overseas
13,976,104
9,902,644

84,323,734
44,941,931


As per the revenue accounting policy, 2.3, HMRC VAT and Duty paid on behalf of customers is not included within turnover.  Such VAT and Duty totalled £16,010,285 (2021: £18,713,642).

Page 13

 


WORLD TRANSPORT AGENCY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

5.


Other operating income

2022
2021
£
£

Government grants receivable
-
116,811

-
116,811


The Government grants receivable within other operating income above comprises of the Coronavirus Job Retention Scheme Grant of £nil (2021: £25,041), Customs Training Grant of £nil (2021: £12,220) and Customs IT Grant of £nil (2021: £79,550).


6.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Depreciation of tangible fixed assets
81,416
112,204

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
16,200
16,950

Gain on foreign exchange
(497,646)
(249,666)

Operating lease rentals
145,874
253,613

Pension costs
484,337
-


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2022
2021
£
£

Wages and salaries
3,443,287
2,582,538

Social security costs
353,603
256,385

Pension costs
484,337
275,049

4,281,227
3,113,972


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


        2022
        2021
            No.
            No.







Administrative staff
71
63

Page 14

 


WORLD TRANSPORT AGENCY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

8.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
422,878
314,975

Company contributions to defined contribution pension schemes
27,094
25,947

449,972
340,922


The highest paid director received remuneration of £318,292 (2021 - £232,195).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £18,656 (2021 - £18,272).


9.


Income from fixed asset investments

2022
2021
£
£

Dividends from fixed asset investments
37,320
18,660

37,320
18,660







10.


Interest receivable

2022
2021
£
£


Bank interest receivable
7,484
5,965

7,484
5,965


11.


Interest payable

2022
2021
£
£


Bank interest payable
8,051
-

8,051
-

Page 15

 


WORLD TRANSPORT AGENCY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

12.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
410,859
261,808


410,859
261,808


Group taxation relief
98,483
48,780


509,342
310,588


Total current tax
509,342
310,588

Deferred tax

Total deferred tax
-
-


Taxation on profit on ordinary activities
509,342
310,588

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
2,796,443
1,345,108


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
531,324
255,571

Effects of:


Expenses not deductible for tax purposes
1,507
386

Capital allowances for year in excess of depreciation
(4,168)
2,871

Non-taxable income
(18,657)
(3,545)

Group relief claimed
(98,483)
-

Group relief payable
98,483
48,780

Adjustments to tax charge in respect of prior periods
-
14,519

Deferred tax not recognised
(664)
(7,994)

Total tax charge for the year
509,342
310,588

Page 16

 


WORLD TRANSPORT AGENCY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

13.


Dividends

2022
2021
£
£


Equity dividends on ordinary shares
1,278,699
454,736

1,278,699
454,736


14.


Tangible fixed assets





Leasehold improvements
Plant and machinery
Total

£
£
£



Cost or valuation


At 1 July 2021
207,984
434,533
642,517


Additions
-
95,097
95,097



At 30 June 2022

207,984
529,630
737,614



Depreciation


At 1 July 2021
204,338
347,343
551,681


Charge for the year on owned assets
3,646
77,770
81,416



At 30 June 2022

207,984
425,113
633,097



Net book value



At 30 June 2022
-
104,517
104,517



At 30 June 2021
3,646
87,190
90,836

Page 17

 


WORLD TRANSPORT AGENCY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

15.


Investments





Unlisted investments

£



Cost or valuation


At 1 July 2021
3,587



At 30 June 2022
3,587





16.


Debtors

2022
2021
£
£


Trade debtors
10,897,994
10,441,858

Other debtors
386,272
403,972

Prepayments and accrued income
106,941
97,065

Tax recoverable
134,743
-

11,525,950
10,942,895



17.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
10,337,425
8,358,353

Amounts owed to group undertakings
362,051
328,783

Corporation tax
-
169,866

Taxation and social security
79,922
55,983

Other creditors
285,464
260,966

Accruals and deferred income
709,291
475,355

11,774,153
9,649,306


Page 18

 


WORLD TRANSPORT AGENCY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

18.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



23,800 (2021 - 23,800) Ordinary shares of £1.00 each
23,800
23,800

Each ordinary share carries voting rights and there are no restrictions on the distributions of dividends.



19.


Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses. 


20.


Pensions

The Company operates both a defined contribution and defined benefit pension scheme through its parent company, Sommer Holdings Limited. The assets of the scheme are held separately from those of the Company in an independently administered fund. It is not possible to identify the underlying assets and liabilities attributable to World Transport Agency Limited. Details of the scheme can be found in the accounts of the Ultimate parent company, Sommer Holdings Limited. Copies of the group consolidated accounts may be obtained from Companies House, Crown Way, Cardiff, CF4 3UZ.
The pension cost charge represents contributions payable by the company and amounted to £484,337 (2021 - £275,049). Of this, £322,306 (2021 - £132,750) relates to payments in respect of the defined benefit scheme.
Contributions totalling £21,669 (2021: £19,933) were payable to the fund at the reporting date and are included in creditors. 


21.


Commitments under operating leases

At 30 June 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
113,847
137,756

Later than 1 year and not later than 5 years
80,762
179,239

194,609
316,995

Page 19

 


WORLD TRANSPORT AGENCY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

22.


Operating lease income

At 30 June 2022, the Company had £nil future minimum lease receipts under non-cancellable operating leases. This was due to the lease terminating in the previous year. 


The total  receipts under operating lease recognised as operating income during the year was £nil (2021: £20,000).

23.

Related party transactions

The Company has taken advantage of the exemption available under FRS 102 Section 33.1A not to disclose transactions with the ultimate parent undertaking and those subsidiary undertakings, where the group controls 100% of those companies' voting rights.
Transactions with fellow group Companies outside of the 100% control group are as follows: 
The Company made purchases of £9,728,994 (2021: £2,954,735) and sales of £145,235 (2021: £185,680) from WTA Freight Management (Shanghai) Limited, an associate of the immediate parent company, World Transport Agency Group Limited. At the year end £804,191 (2021: £450,982) remained outstanding to WTA Freight Management (Shanghai) Limited and was included within creditors. 
The Company made purchases of £1,644,578 (2021: £391,945) and sales of £35,714 (2021: £8,538) from WTA Freight Management (Shanghai) Limited - Shenzhen Branch, an associate of the immediate parent company, World Transport Agency Group Limited. At the year end £36,887 (2021: £925 owed to) was due from WTA Freight Management (Shanghai) Limited - Shenzhen Branch and was included within debtors.

24.

Contingencies

The Company, together with its fellow UK group companies, is a party to an intercompany guarantee in respect of all advances made to the group by NatWest Bank. At 30 June 2022 there were no such advances (2021: £Nil).


25.


Ultimate Parent Company

The Company's immediate parent company is World Transport Agency Group Limited, a company incorporated and operating in England and Wales.
The Company's ultimate parent company is Sommer Holdings Limited, a company incorporated and operating in England and Wales. The ultimate parent company prepares group consolidated accounts which may be obtained from Companies House, Crown Way, Cardiff, CF4 3UZ.
The registered office of Sommer Holdings Limited is Farthings Staples Hill, Kirdford, Billingshurst, West Sussex, RH14 0JL.
Sommer Holdings Limited is controlled by C E R Sommer and P J Sommer.

 
Page 20