Pinnacle International Freight Holdings - Limited company accounts 23.1

REGISTERED NUMBER: 05012885 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2022

for

Pinnacle International Freight Holdings

Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

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

18

DIRECTORS:

N J Burrell

K C Ellington

SECRETARY:

N J Burrell

REGISTERED OFFICE:

Unit 1 Swannington Road

Broughton Astley

Leicester

LE9 6TU

REGISTERED NUMBER:

05012885 (England and Wales)

AUDITORS:

BK Plus Audit Limited

Azzurri House

Walsall Road

Aldridge

Walsall

West Midlands

WS9 0RB

The directors present their strategic report of the company and the group for the year ended 31 December 2022.

FAIR REVIEW OF THE BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

As an international freight forwarder our business continues to arrange freight movements for a wide variety of customers both in the UK and overseas.

The group's activities are organised into the following main areas:

Intermediary on UK freight movements

Intermediary on overseas movements

Export packaging facility

Warehousing and distribution facility

UK freight deliveries

Special large scale freight movements

The group's main income is derived from the first 2 activities.

PRINCIPAL RISKS AND UNCERTAINTIES

Our forecast for 2023 shows a slight increase in turnover on this year. As a group we keep tight control over new customers to minimise bad debts.

The overseas business leads to foreign currency exposure which is managed through constant reviews of the exchange rate and the economy.

Credit risk is managed through only trading with creditworthy third parties and all receivable balances are monitored on an ongoing basis.

Liquidity risk is the risk that the group will not have sufficient cash and debt facilities to meet future obligations. The group prepares annual forecasts of future requirements and monitors cash flow on an ongoing basis.

As for many businesses of our size, the business environment in which we operate continues to be challenging. Whilst the freight market is competitive, the group is well established and has strong customer loyalty and the directors feel confident that the group can deal with the challenges ahead.

We are of course also subject to changes in consumer spending that can affect the level of freight movement demands and consumers overall level of disposable income within the economies in which we operate.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

KEY PERFORMANCE INDICATORS

Sales have slightly decreased in the year to £51,611,891 compared to £58,540,239 in 2021.

Overall operating profit was £3,568,541 compared to £5,251,118 in 2021.

Net assets have increased to £13,181,797 compared to £11,977,266 in 2021.

ON BEHALF OF THE BOARD:

N J Burrell - Director

15 September 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2022 will be £ 1,622,787 .

FUTURE DEVELOPMENTS

The group aims to continue to expand market share in its industry.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

N J Burrell

K C Ellington

DONATIONS

During the year, the company made donations of £10,199 to UK registered charities.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, BK Plus Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N J Burrell - Director

15 September 2023

Opinion

We have audited the financial statements of Pinnacle International Freight Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 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 31 December 2022 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

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 group's and the parent 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 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 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.

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 four, 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.

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.

From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing minutes of meetings of those charged with governance, if available;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business.

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.

Richard Haydon FCA (Senior Statutory Auditor)

for and on behalf of BK Plus Audit Limited

Azzurri House

Walsall Road

Aldridge

Walsall

West Midlands

WS9 0RB

15 September 2023

TURNOVER

3

51,611,891

58,540,239

Cost of sales

40,519,910

46,380,093

GROSS PROFIT

11,091,981

12,160,146

Distribution costs

368,394

32,029

Administrative expenses

7,184,446

6,876,999

7,552,840

6,909,028

3,539,141

5,251,118

Other operating income

4

29,400

-

OPERATING PROFIT

7

3,568,541

5,251,118

Interest receivable and similar income

10

42,670

13,625

3,611,211

5,264,743

Interest payable and similar expenses

11

38,816

29,365

PROFIT BEFORE TAXATION

3,572,395

5,235,378

Tax on profit

12

745,077

1,242,945

PROFIT FOR THE FINANCIAL YEAR

2,827,318

3,992,433

Profit attributable to:

Owners of the parent

2,715,946

3,812,716

Non-controlling interests

111,372

179,717

2,827,318

3,992,433

PROFIT FOR THE YEAR

2,827,318

3,992,433

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,827,318

3,992,433

Total comprehensive income attributable to:

Owners of the parent

2,715,946

3,812,716

Non-controlling interests

111,372

179,717

2,827,318

3,992,433

FIXED ASSETS

Intangible assets

15

-

189,374

Tangible assets

16

2,790,640

2,854,798

Investments

17

-

Investment property

18

521,303

3,311,943

3,565,475

CURRENT ASSETS

Stocks

19

53,115

202,991

Debtors

20

11,596,619

13,661,838

Investments

21

2,000,000

-

Cash at bank and in hand

3,169,318

4,374,580

16,819,052

18,239,409

CREDITORS

Amounts falling due within one year

22

5,979,902

8,740,881

NET CURRENT ASSETS

10,839,150

9,498,528

TOTAL ASSETS LESS CURRENT
LIABILITIES

14,151,093

13,064,003

CREDITORS

Amounts falling due after more than one year

23

(856,213

)

(992,577

)

PROVISIONS FOR LIABILITIES

27

(113,083

)

(94,160

)

NET ASSETS

13,181,797

11,977,266

CAPITAL AND RESERVES

Called up share capital

28

100

Capital redemption reserve

29

12,900

Retained earnings

29

13,168,797

11,964,266

SHAREHOLDERS' FUNDS

13,181,797

11,977,266

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2023 and were signed on its behalf by:

N J Burrell - Director

FIXED ASSETS

Intangible assets

15

927,540

1,236,720

Tangible assets

16

2,017,741

2,055,970

Investments

17

351,858

Investment property

18

521,303

3,818,442

4,165,851

CURRENT ASSETS

Debtors

20

25,389

26,481

Cash at bank

105,771

68,608

131,160

95,089

CREDITORS

Amounts falling due within one year

22

4,282,106

4,276,035

NET CURRENT LIABILITIES

(4,150,946

)

(4,180,946

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

(332,504

)

(15,095

)

CREDITORS

Amounts falling due after more than one year

23

856,213

947,530

NET LIABILITIES

(1,188,717

)

(962,625

)

CAPITAL AND RESERVES

Called up share capital

28

100

Retained earnings

(1,188,817

)

(962,725

)

SHAREHOLDERS' FUNDS

(1,188,717

)

(962,625

)

Company's loss for the financial year

(226,092

)

(206,328

)

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

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2023 and were signed on its behalf by:

N J Burrell - Director

Called up

Capital

share

Retained

redemption

capital

earnings

reserve

£

Balance at 1 January 2021

100

8,924,517

7,500

Changes in equity

Reduction in share capital

-

(837,105

)

5,400

Transfers

-

486,138

-

Dividends

-

(422,000

)

-

Total comprehensive income

-

3,812,716

-

Balance at 31 December 2021

100

11,964,266

12,900

Changes in equity

Transfers

-

111,372

-

Dividends

-

(1,622,787

)

-

Total comprehensive income

-

2,715,946

-

Balance at 31 December 2022

100

13,168,797

12,900

Non-controlling

Total

interests

equity

£

Balance at 1 January 2021

8,932,117

306,421

9,238,538

Changes in equity

Reduction in share capital

(831,705

)

-

(831,705

)

Transfers

486,138

(486,138

)

-

Dividends

(422,000

)

-

(422,000

)

Total comprehensive income

3,812,716

179,717

3,992,433

Balance at 31 December 2021

11,977,266

-

11,977,266

Changes in equity

Transfers

111,372

(111,372

)

-

Dividends

(1,622,787

)

-

(1,622,787

)

Total comprehensive income

2,715,946

111,372

2,827,318

Balance at 31 December 2022

13,181,797

-

13,181,797

Called up

share

Retained

Total

capital

earnings

equity

£

Balance at 1 January 2021

100

(756,397

)

(756,297

)

Changes in equity

Total comprehensive income

-

(206,328

)

(206,328

)

Balance at 31 December 2021

100

(962,725

)

(962,625

)

Changes in equity

Total comprehensive income

-

(226,092

)

(226,092

)

Balance at 31 December 2022

100

(1,188,817

)

(1,188,717

)

Cash flows from operating activities

Cash generated from operations

1

3,440,280

1,010,754

Interest paid

(35,946

)

(26,289

)

Interest element of hire purchase payments
paid

(2,870

)

(3,076

)

Tax paid

(883,785

)

(761,238

)

Net cash from operating activities

2,517,679

220,151

Cash flows from investing activities

Purchase of tangible fixed assets

(127,301

)

(168,112

)

Money Market

(2,000,000

)

-

Interest received

42,670

13,625

Net cash from investing activities

(2,084,631

)

(154,487

)

Cash flows from financing activities

Loan repayments in year

(90,159

)

(96,038

)

Capital repayments in year

(13,141

)

(13,140

)

Amount introduced by directors

1,053,990

-

Amount withdrawn by directors

(966,213

)

-

Share buyback

-

(831,705

)

Equity dividends paid

(1,622,787

)

(422,000

)

Net cash from financing activities

(1,638,310

)

(1,362,883

)

Decrease in cash and cash equivalents

(1,205,262

)

(1,297,219

)

Cash and cash equivalents at beginning of
year

2

4,374,580

5,671,799

Cash and cash equivalents at end of year

2

3,169,318

4,374,580

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

2022

2021

£

Profit before taxation

3,572,395

5,235,378

Depreciation charges

380,832

460,838

Finance costs

38,816

29,365

Finance income

(42,670

)

(13,625

)

3,949,373

5,711,956

Decrease/(increase) in stocks

149,876

(161,727

)

Decrease/(increase) in trade and other debtors

2,065,219

(5,322,287

)

(Decrease)/increase in trade and other creditors

(2,724,188

)

782,812

Cash generated from operations

3,440,280

1,010,754

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 31 December 2022

31/12/22

1/1/22

£

Cash and cash equivalents

3,169,318

4,374,580

Year ended 31 December 2021

31/12/21

1/1/21

£

Cash and cash equivalents

4,374,580

5,671,799

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/22

Cash flow

At 31/12/22

£

Net cash

Cash at bank and in hand

4,374,580

(1,205,262

)

3,169,318

4,374,580

(1,205,262

)

3,169,318

Liquid resources

Current asset investments

-

2,000,000

-

2,000,000

Debt

Finance leases

(61,155

)

13,141

(48,014

)

Debts falling due within 1 year

(121,884

)

(1,158

)

(123,042

)

Debts falling due after 1 year

(947,530

)

91,317

(856,213

)

(1,130,569

)

103,300

(1,027,269

)

Total

3,244,011

898,038

4,142,049

1.	STATUTORY INFORMATION

Pinnacle International Freight Holdings Limited ("the company") is a private company limited by shares and incorporated in England and Wales.The registered office is Unit 1 Swannington Road, Broughton Astley, Leicester, LE9 6TU.

The group consists of Pinnacle International Freight Holdings Limited and all of its subsidiaries.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

The financial statements are prepared in Sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain assets at fair value. The principal accounting policies adopted are set out below.

Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill

Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Pinnacle International Freight Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates .

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Going concern

In assessing the appropriateness of the going concern assumption, the Directors have reviewed detailed forecasts prepared for at least 12 months from the date of approval of the financial statements for both the Company and the Group and stress-tested these. Based on these forecasts, even under stressed results, both the Company and the Group can meet its liabilities as they fall due. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and therefore consider that it is appropriate for the financial statements to be prepared on the going concern basis

Critical accounting judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. In the view of the directors, there are no material estimates or judgements.

In preparing the financial statements, no critical accounting judgements or key estimates have been identified.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated.

Goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings

1% straight line (land is not depreciated)

Leasehold improvements

10% straight line

Plant and equipment

Various at 20% - 25% straight line

Fixtures and fittings

15% straight line

Computers

33% reducing balance

Motor vehicles

25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Freehold land and buildings is comprised entirely of properties rented to other group entities as such in line with FRS102 paragraph 16.4A, this has been accounted for in accordance with the cost model of FRS102 section 17.

Investment properties

Investment properties, which are properties held to earn rentals and/or for capital appreciation, are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the g roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Stocks are valued on a First In First Out basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss , are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities

Basic financial liabilities

Basic financial liabilities, including creditors , bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account , except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets .

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2022

2021

£

Rendering of services

51,611,891

58,540,239

51,611,891

58,540,239

An analysis of turnover by geographical market is given below:

2022

2021

£

United Kingdom

37,710,462

51,394,920

Europe

540,811

123,698

Rest of the world

13,360,618

7,021,621

51,611,891

58,540,239

4.	OTHER OPERATING INCOME

2022

2021

£

Rents received

29,400

-

5.	EMPLOYEES AND DIRECTORS

2022

2021

£

Wages and salaries

3,817,694

3,574,157

Social security costs

410,960

290,687

Other pension costs

220,242

248,088

4,448,896

4,112,932

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

2022

2021

Distribution

30

29

Administrative

7

5

Other

60

61

97

95

Company

The average number of employees during the year was Nil (2021- Nil).

6.	DIRECTORS' EMOLUMENTS

2022

2021

£

Directors' remuneration

71,200

Directors' long term incentive schemes

6,704

7.	OPERATING PROFIT

Operating profit for the year is stated after charging:

2022

2021

£

Foreign exchange losses

124,084

92,313

Depreciation of owned tangible fixed assets

167,063

208,860

Depreciation of tangible fixed assets held under finance leases

24,395

16,264

Amortisation of intangible assets

189,374

235,714

Operating lease charges

838,526

31,122

8.	AUDITORS' REMUNERATION

2022

2021

£

For audit services

Audit of the financial statements of the group and the company

5,000

Audit of the financial statements of the company's subsidiaries

25,000

15,000

30,000

20,000

For other services

Taxation compliance services

-

4,000

All other non-audit services

-

2,500

-

6,500

9.	EXCEPTIONAL ITEMS

During the year, an amount of £215,000 in relation to Adam & Youngson Ltd, who were in liquidation, was written off. There were no exceptional items in the prior year.

10.

INTEREST RECEIVABLE AND SIMILAR INCOME

2022

2021

£

Deposit account interest

39,564

13,625

Beneficial loan interest

3,106

-

42,670

13,625

11.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

Bank loan interest

35,588

26,289

Interest payable

358

-

Hire purchase

2,870

3,076

38,816

29,365

12.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2022

2021

£

Current tax:

UK corporation tax

784,164

1,104,447

Tax adjustment

(58,442

)

150,642

Total current tax

725,722

1,255,089

Deferred tax

19,355

(12,144

)

Tax on profit

745,077

1,242,945

UK corporation tax has been charged at 19 % .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

£

Profit before tax

3,572,395

5,235,378

Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2021 - 19 %)

678,755

994,722

Effects of:

Expenses not deductible for tax purposes

155,590

89,424

Capital allowances in excess of depreciation

(60,159

)

(11,086

)

Adjustments to tax charge in respect of previous periods

(58,442

)

122,852

Effect of change in corporation tax rates

14,427

18,487

Tax on foreign subsidiary

18,239

28,546

Group losses utilised

(3,333

)

-

Total tax charge

745,077

1,242,945

Factors that may affect future tax charges

The statutory UK corporation tax rate is currently 19%, effective from 1 April 2017. The UK tax rate will increase to 25% with effect from 1 April 2023 per Finance Bill 2021. This increased tax rate was substantively enacted on 24 May 2021.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised, based on tax law and the corporation tax rates that have been enacted, or substantially enacted, at 31 December 2022. For the year ended 31 December 2022, the substantively enacted rate of 25% has been utilised to calculate the closing deferred taxation balances.

13.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

14.

DIVIDENDS

2022

2021

£

Interim dividends

1,621,544

422,000

15.	INTANGIBLE FIXED ASSETS

Group

Goodwill

£

COST

At 1 January 2022

and 31 December 2022

2,357,142

AMORTISATION

At 1 January 2022

2,167,768

Amortisation for year

189,374

At 31 December 2022

2,357,142

NET BOOK VALUE

At 31 December 2022

-

At 31 December 2021

189,374

Company

Goodwill

£

COST

At 1 January 2022

and 31 December 2022

3,091,800

AMORTISATION

At 1 January 2022

1,855,080

Amortisation for year

309,180

At 31 December 2022

2,164,260

NET BOOK VALUE

At 31 December 2022

927,540

At 31 December 2021

1,236,720

16.	TANGIBLE FIXED ASSETS

Group

Freehold

Long

Plant and

property

leasehold

machinery

£

COST

At 1 January 2022

2,582,555

510,127

920,613

Additions

-

115,181

At 31 December 2022

2,582,555

510,127

1,035,794

DEPRECIATION

At 1 January 2022

403,559

510,121

445,949

Charge for year

43,202

6

107,663

At 31 December 2022

446,761

510,127

553,612

NET BOOK VALUE

At 31 December 2022

2,135,794

-

482,182

At 31 December 2021

2,178,996

6

474,664

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

COST

At 1 January 2022

249,586

174,491

1,110

4,438,482

Additions

11,220

-

900

127,301

At 31 December 2022

260,806

174,491

2,010

4,565,783

DEPRECIATION

At 1 January 2022

119,795

103,602

658

1,583,684

Charge for year

10,553

29,062

973

191,459

At 31 December 2022

130,348

132,664

1,631

1,775,143

NET BOOK VALUE

At 31 December 2022

130,458

41,827

379

2,790,640

At 31 December 2021

129,791

70,889

452

2,854,798

Freehold land and buildings is comprised entirely of properties rented to other group entities as such in line with FRS102 paragraph 16.4A, this has been accounted for in accordance with the cost model of FRS102 section 17.

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

Motor

vehicles

£

COST

At 1 January 2022

and 31 December 2022

97,580

DEPRECIATION

At 1 January 2022

32,527

Charge for year

24,395

At 31 December 2022

56,922

NET BOOK VALUE

At 31 December 2022

40,658

At 31 December 2021

65,053

Company

Fixtures

Freehold

and

property

fittings

Totals

£

COST

At 1 January 2022

and 31 December 2022

2,094,494

227,590

2,322,084

DEPRECIATION

At 1 January 2022

154,359

111,755

266,114

Charge for year

36,289

1,940

38,229

At 31 December 2022

190,648

113,695

304,343

NET BOOK VALUE

At 31 December 2022

1,903,846

113,895

2,017,741

At 31 December 2021

1,940,135

115,835

2,055,970

17.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertaking

£

COST

At 1 January 2022

and 31 December 2022

351,858

NET BOOK VALUE

At 31 December 2022

351,858

At 31 December 2021

351,858

Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking

Registered office

Class of
shares held

% held direct

Pinnacle International Freight Limited

Unit 1 Swannington Road,
Broughton Astley, Leicester, LE9
6TU

Ordinary

95.53

Pinnacle FFG International Limited

Unit 1 Swannington Road,
Broughton Astley, Leicester, LE9
6TU

Ordinary

100.00

Complete Logistics Limited

Unit 1 Swannington Road,
Broughton Astley, Leicester, LE9
6TU

Ordinary

100.00

Pinnacle Sourcing Limited

Unit 1 Swannington Road,
Broughton Astley, Leicester, LE9
6TU

Ordinary

100.00

Pinnacle International Freight Inc

2700 Avenger Drive, Suite 108,
Virginia Beach, VA. 23452, USA

Ordinary

100.00

18.	INVESTMENT PROPERTY

Group

Total

£

FAIR VALUE

At 1 January 2022

and 31 December 2022

521,303

NET BOOK VALUE

At 31 December 2022

521,303

At 31 December 2021

521,303

The director has iterated that the book value of the property is materially in line with fair value.

Company

Total

£

FAIR VALUE

At 1 January 2022

and 31 December 2022

521,303

NET BOOK VALUE

At 31 December 2022

521,303

At 31 December 2021

521,303

19.

STOCKS

Group

2022

2021

£

Raw materials

53,115

202,991

20.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2022

2021

2022

2021

£

Trade debtors

5,880,026

8,148,803

-

Other debtors

5,345,893

5,205,040

25,389

Prepayments

370,700

307,995

-

1,092

11,596,619

13,661,838

25,389

26,481

21.	CURRENT ASSET INVESTMENTS

Group

2022

2021

£

Other

2,000,000

-

22.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2022

2021

2022

2021

£

Bank loans and overdrafts (see note 24)

123,042

121,884

123,042

121,884

Hire purchase contracts (see note 25)

48,014

16,108

-

Trade creditors

3,280,464

5,440,404

15,622

15,366

Amounts owed to group undertakings

-

4,100,898

Tax

842,419

1,000,051

29,344

23,484

Social security and other taxes

146,913

198,745

-

VAT

74,061

-

13,200

14,403

Other creditors

272,479

894,557

-

Directors' loan accounts

87,777

-

Accrued expenses

1,104,733

1,069,132

-

5,979,902

8,740,881

4,282,106

4,276,035

Amounts owed by group undertakings are unsecured, interest free and are repayable on demand.

Hire purchase liabilities are secured against the assets to which they relate.

An unlimited multilateral Guarantee dated 24 June 2004 was given by Pinnacle International Freight Holdings Limited and Pinnacle International Freight Limited.

On 29 June 2004, a debenture was taken out including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future, and First Floating Charge over all the assets and undertakings both present and future.

On 4 May 2012, a First Legal Charge was taken out over Freehold Property known as Unit 1, Cottage Lane Industrial Estate, Swannington Road, Broughton Astley, Leicester, LE9 6TU.

On 5 June 2015, a First Legal Charge was taken out over Freehold Property known as The White Horse, Main Street, Leire, Lutterworth, Leicestershire.

23.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group

Company

2022

2021

2022

2021

£

Bank loans (see note 24)

856,213

947,530

856,213

947,530

Hire purchase contracts (see note 25)

-

45,047

-

856,213

992,577

856,213

947,530

Bank loans are overdrafts are repayable in monthly instalments over 20 years. The interest rate is 2.24% over Bank of England base rate.

24.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

2022

2021

2022

2021

£

Amounts falling due within one year or on

demand:

Bank loans

123,042

121,884

123,042

121,884

Amounts falling due between one and two

years:

Bank loans - 1-2 years

123,042

121,884

123,042

121,884

Amounts falling due between two and five

years:

Bank loans - 2-5 years

492,168

487,536

492,168

487,536

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

241,003

338,110

241,003

338,110

The mortgage is repayable in monthly instalments over 20 years. The interest rate is 2.24% over Bank of England base rate.

25.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase contracts

2022

2021

£

Net obligations repayable:

Within one year

48,014

16,108

Between one and five years

-

45,047

48,014

61,155

Group

Non-cancellable operating

leases

2022

2021

£

Within one year

742,392

221,548

Between one and five years

1,605,314

170,384

2,347,706

391,932

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

26.	FINANCIAL INSTRUMENTS

Group

Company

2022

2021

2022

2021

Carrying amount of financial assets

£

Debt instruments measured at amortised cost

11,251,308

13,313,189

25,389

Carrying amount of financial liabilities

Measured at amortised cost

7,175,325

8,534,662

5,095,744

5,185,678

27.	PROVISIONS FOR LIABILITIES

Group

2022

2021

£

Deferred tax

Accelerated capital allowances

113,083

94,160

Group

Deferred

tax

£

Balance at 1 January 2022

94,160

Accelerated capital allowances

18,923

Balance at 31 December 2022

113,083

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

28.	CALLED UP SHARE CAPITAL

Group and company

2022

2021

2022

2021

Ordinary share capital

Number

£

Issued and fully paid

Ordinary of £1 each

100

29.

RESERVES

Capital redemption reserve

The reserve records the nominal value of shares repurchased by the company.

Profit and loss reserves

The reserve records retained earnings and accumulated losses.

30.	PENSION COMMITMENTS

RETIREMENT BENEFIT SCHEMES

2022

2021

Defined contribution schemes

£

Charge to profit or loss in respect of defined contribution schemes

339,265

248,088

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

31.	ULTIMATE PARENT COMPANY

Pinnacle International Freight Holdings Ltd is regarded by the directors as being the company's ultimate parent company.

The ultimate controlling party is N J Burrell.

32.	FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES

The bank has given a guarantee to H.M Revenue and Customs totalling £300,000 (2021: £300,000) and further guarantees totalling Nil (£5,014 - 2021).

The bank holds an unlimited multilateral guarantee over all of the freehold and leasehold property, and a fixed charge over book and other debts, chattels, goodwill and uncalled capital both present and future and first floating charge over all assets and undertaking both present and future.

On 1 November 2019, Pinnacle International Freight Holdings and Pinnacle International Freight Limited have entered into an intercompany guarantee in relation to loan notes totalling £4,000,000 issued by Pinnacle International Freight Group Limited. At 31 December 2022 the value of the loan notes outstanding was £2,060,000 (2021: £2,540,000).

33.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2022 and 31 December 2021:

2022

2021

£

N J Burrell

Balance outstanding at start of year

-

Amounts advanced

741,938

-

Amounts repaid

(741,938

)

-

Amounts written off

-

Amounts waived

-

Balance outstanding at end of year

-

34.	RELATED PARTY TRANSACTIONS

Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales

Purchases

2022

2021

2022

2021

Group

£

Entities under common control

4,035,669

597,333

4,035,669

597,333

Company

Entities with control, joint control or
significant influence over the company

186,000

223,200

-

The following amounts were outstanding at the reporting end date:

Amounts due to related parties

2022

2021

£

Group

Entities under common control

4,105,733

4,712,726

Company

4,100,898

Amounts due from related parties

2022

2021

£

Group

Entities under common control

4,105,733

4,506,711

Other related parties

4,489,664

3,085,053

Company

Other related parties

25,389