Pinnacle International Freight Limited - Limited company accounts 23.1
Pinnacle International Freight Limited - Limited company accounts 23.1
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements for the Year Ended 31 December 2022 |
| for |
| Pinnacle International Freight Limited |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Contents of the Financial Statements |
| for the Year Ended 31 December 2022 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Income Statement | 9 |
| Other Comprehensive Income | 10 |
| Balance Sheet | 11 |
| Statement of Changes in Equity | 12 |
| Notes to the Financial Statements | 13 |
| Pinnacle International Freight Limited |
| Company Information |
| for the Year Ended 31 December 2022 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Azzurri House |
| Walsall Road |
| Aldridge |
| Walsall |
| West Midlands |
| WS9 0RB |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Strategic Report |
| for the Year Ended 31 December 2022 |
| The directors present their strategic report 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 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 companies activities are organised into the following main areas: |
| Intermediary on UK freight movements |
| Intermediary on overseas movements |
| Export packing facility |
| Warehousing and distribution facility |
| UK freight deliveries |
| Special large scale freight movements |
| The company's main income is derived from the first 2 activities. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| 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 company will not have sufficient cash and debt facilities to meet future obligations. The company prepares annual forecasts of future requirements and monitors cash flow on an ongoing basis. |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Strategic Report |
| for the Year Ended 31 December 2022 |
| KEY PERFORMANCE INDICATORS |
| The business has had a strong year though slightly down compared to last year. |
| We consider that the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, those being operating profit and profit after tax. |
| Overall operating profit was £3,099,312 compared to £4,517,311 in 2021; profit after tax was £2,491,960 compared to £3,486,130 in 2021. |
| Other performance indicators |
| We expect a good performance in 2023. As a company we keep tight control over new customers to minimise bad debts. |
| 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 company is well established and has strong loyalty and the directors feel confident that the company can deal with the challenges ahead. |
| We are of course subject to changes in consumer spending that can affect the level of freight movement demands and consumers overall level of disposable income within our economy. |
| With these risks and uncertainties in mind, we are aware that any future plans for the future development of the business may be subject to unforeseen future events outside of our control. |
| ON BEHALF OF THE BOARD: |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Report of the Directors |
| for the Year Ended 31 December 2022 |
| The directors present their report with the financial statements of the company for the year ended 31 December 2022. |
| DIVIDENDS |
| Particulars of dividends are provided in note 11 of the financial statements |
| EVENTS SINCE THE END OF THE YEAR |
| Information relating to events since the end of the year is given in the notes to the financial statements. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
| 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 Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Report of the Directors |
| for the Year Ended 31 December 2022 |
| AUDITORS |
| The auditors, BK Plus Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Pinnacle International Freight Limited |
| Opinion |
| We have audited the financial statements of Pinnacle International Freight Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31 December 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 Auditors' 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 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 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 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Pinnacle International Freight Limited |
| 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 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 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 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. |
| 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. |
| Report of the Independent Auditors to the Members of |
| Pinnacle International Freight Limited |
| 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. |
| for and on behalf of |
| Azzurri House |
| Walsall Road |
| Aldridge |
| Walsall |
| West Midlands |
| WS9 0RB |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Income Statement |
| for the Year Ended 31 December 2022 |
| 2022 | 2021 |
| Notes | £ | £ | £ | £ |
| TURNOVER | 4 |
| Cost of sales |
| GROSS PROFIT |
| Distribution costs |
| Administrative expenses |
| 5,539,817 | 4,955,545 |
| OPERATING PROFIT | 6 |
| Interest receivable and similar income | 8 |
| 3,141,982 | 4,530,936 |
| Interest payable and similar expenses | 9 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 10 |
| PROFIT FOR THE FINANCIAL YEAR |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Other Comprehensive Income |
| for the Year Ended 31 December 2022 |
| 2022 | 2021 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Balance Sheet |
| 31 December 2022 |
| 2022 | 2021 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 |
| Tangible assets | 13 |
| Investments | 14 |
| CURRENT ASSETS |
| Debtors | 15 |
| Investments | 16 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 17 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 18 | ( |
) |
| PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 22 |
| Share premium | 23 |
| Capital redemption reserve | 23 |
| Retained earnings | 23 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Statement of Changes in Equity |
| for the Year Ended 31 December 2022 |
| Called up | Capital |
| share | Retained | Share | redemption | Total |
| capital | earnings | premium | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 January 2021 |
| Changes in equity |
| Reduction in share capital | (5,400 | ) | (831,705 | ) | - | 5,400 | (831,705 | ) |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - | - |
| Balance at 31 December 2021 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - | - |
| Balance at 31 December 2022 |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements |
| for the Year Ended 31 December 2022 |
| 1. | ACCOUNTING POLICIES |
| Pinnacle International Freight Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1, Swannington Road, Broughton Astley, Leicester, United Kingdom, LE9 6TU. |
| 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. The principal accounting policies adopted are set out below. |
| The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group. |
| Pinnacle International Freight Limited is a subsidiary of Pinnacle International Freight Holdings Limited and the results of Pinnacle International Freight Limited are included in the consolidated financial statements of Pinnacle International Freight Holdings Limited which are available from Companies House, Crown Way, Cardiff, CF14 3UZ. |
| The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
| • | the requirements of Section 7 Statement of Cash Flows. |
| 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 and stress-tested these. Based on these forecasts, even under stressed results, the company 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. |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover is recognised at the fair value of the consideration received or receivable for 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. |
| 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 unincorporated businesses 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: |
| Leasehold land and buildings | 10% straight line |
| Plant and machinery | 10% - 25% straight line |
| 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 credited or charged to profit or loss. |
| Impairment on fixed assets |
| At each reporting period end date, the company 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 in order to determine the extent of the impairment loss (if any). |
| Cash and cash equivalents |
| Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks. |
| Equity instruments |
| Equity instruments issued by the company 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 company. |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Investments in subsidiaries |
| Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss . |
| A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. |
| Financial instruments |
| The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
| Financial assets and liabilities are offset, with 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 cash and bank balances , amounts due from group undertakings and amounts due from related parties , are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method less impairment. |
| 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 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. |
| 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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity. |
| 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 company after deducting all of its liabilities. |
| Basic financial liabilities |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Basic financial liabilities, including creditors, and amounts due to fellow group undertakings are initially recognised at transaction price and 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 company’s contractual obligations expire or are discharged or cancelled. |
| Taxation |
| The tax expenses 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 company’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 when the company has 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. |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| 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 s 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. | JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
| In the application of the company'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. |
| 4. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by class of business is given below: |
| 2022 | 2021 |
| £ | £ |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 4. | TURNOVER - continued |
| An analysis of turnover by geographical market is given below: |
| 2022 | 2021 |
| £ | £ |
| United Kingdom |
| Europe |
| Rest of world | 6,341,925 | 1,109,296 |
| 5. | EMPLOYEES AND DIRECTORS |
| 2022 | 2021 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2022 | 2021 |
| Distribution | 24 | 20 |
| Administration | 7 | 5 |
| Other | 32 | 33 |
| Directors remuneration |
| 2022 | 2021 |
| £ | £ |
| Remuneration for qualifying services | 141,200 | 141,200 |
| Company pension contributions to defined contribution schemes | 10,204 | 10,204 |
| 153,426 | 153,425 |
| The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 2) |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 6. | OPERATING PROFIT |
| Operating profit for the year is stated after charging/(crediting): | 2022 | 2021 |
| £ | £ |
| Exchange losses / (gains) | 140,275 | 103,665 |
| Fees payable to the company's auditor for the audit of the company'sfinancial statements | 30,000 | 28,058 |
| Depreciation of owned tangible fixed assets | 89,053 | 130,445 |
| Depreciation of tangible fixed assets held under finance leases | 24,395 | 16,264 |
| Operating lease charges | 247,627 | 207,598 |
| 7. | EXCEPTIONAL ITEMS |
| 2022 | 2021 |
| £ | £ |
| Exceptional items | (215,000 | ) | - |
| During the year, an amount of £215,000 in relation to Adam & Youngson Ltd, who were in liquidation, was written off. |
| 8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| 2022 | 2021 |
| £ | £ |
| Interest on bank deposits |
| Beneficial loan interest |
| 9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2022 | 2021 |
| £ | £ |
| Interest on finance leases and hire purchase contracts | 2,870 | 3,076 |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 10. | 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 |
| Adjustments in respect of |
| prior periods | (58,442 | ) | 135,553 |
| Total current tax |
| Deferred tax: |
| Origination and reversal of |
| timing differences |
| Tax on profit |
| UK corporation tax has been charged at 19% (2021 - 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 |
| Profit multiplied by the standard rate of corporation tax in the UK of (2021 - |
| Effects of: |
| Tax effect of expenses that are not deductible in determining taxable profit | 98,681 | 27,396 |
| Adjustments in respect of prior periods | (58,442 | ) | 135,554 |
| Effect of change in corporation tax rate | 13,815 | 18,487 |
| Group losses utilised | (3,333 | ) | - |
| Total tax charge | 647,152 | 1,041,730 |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 10. | TAXATION - continued |
| Factors that may affect future tax charges |
| The statutory UK corporation tax rate is currently 19%, effective from 1 April 2017. The UK corporation 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. |
| The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows: |
| 11. | DIVIDENDS |
| 2022 | 2021 |
| £ | £ |
| Interim dividends paid | 1,622,787 | 422,000 |
| 12. | INTANGIBLE FIXED ASSETS |
| Goodwill |
| £ |
| COST |
| At 1 January 2022 |
| and 31 December 2022 |
| AMORTISATION |
| At 1 January 2022 |
| and 31 December 2022 |
| NET BOOK VALUE |
| At 31 December 2022 |
| At 31 December 2021 |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 13. | TANGIBLE FIXED ASSETS |
| Leasehold |
| land and | Plant and | Motor |
| buildings | machinery | vehicles | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2022 |
| Additions |
| At 31 December 2022 |
| DEPRECIATION |
| At 1 January 2022 |
| Charge for year |
| At 31 December 2022 |
| NET BOOK VALUE |
| At 31 December 2022 |
| At 31 December 2021 |
| 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 |
| DEPRECIATION |
| At 1 January 2022 |
| Charge for year |
| At 31 December 2022 |
| NET BOOK VALUE |
| At 31 December 2022 |
| At 31 December 2021 |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 14. | FIXED ASSET INVESTMENTS |
| 2022 | 2021 |
| £ | £ |
| Investment in subsidiaries | 20,243 | 20,243 |
| 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 |
Orbital Forwarding Ltd |
Unit 1 Swannington Road, Broughton Astley, Leicester, LE9 6TU |
Ordinary |
100.00 |
| 15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| VAT |
| Prepayments |
| Amounts owed by group undertakings are unsecured, interest free, and are repayable on demand. |
| 16. | CURRENT ASSET INVESTMENTS |
| Current asset investments includes £2,000,000 (2021: £Nil) held on short term deposit. |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Hire purchase contracts (see note 19) |
| Trade creditors |
| Amounts owed to group undertakings |
| Tax |
| Social security and other taxes |
| VAT | 35,368 | - |
| Other creditors |
| Directors' loan accounts | 87,777 | 53,990 |
| Accrued expenses |
| 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. |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Hire purchase contracts (see note 19) |
| Hire purchase liabilities are secured against the assets to which they relate. |
| 19. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 2022 | 2021 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable operating | leases |
| 2022 | 2021 |
| £ | £ |
| Within one year |
| Between one and five years |
| Finance lease payments represent rentals payable by the company 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. |
| 20. | FINANCIAL INSTRUMENTS |
| 2022 | 2021 |
| Carrying amount of financial assets | £ | £ |
| Debt instruments measured at amortised cost | 11,771,320 | 13,771,169 |
| Carrying amount of financial liabilities |
| Measured at amortised cost | 3,977,701 | 8,045,219 |
| 21. | PROVISIONS FOR LIABILITIES |
| 2022 | 2021 |
| £ | £ |
| Deferred tax | 97,733 | 77,027 |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 21. | PROVISIONS FOR LIABILITIES - continued |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2022 |
| Accelerated capital allowances | 20,706 |
| Balance at 31 December 2022 |
| The deferred tax liability set out above is not expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within a future period. |
| 22. | CALLED UP SHARE CAPITAL |
| 2022 | 2021 | 2022 | 2021 |
| Ordinary share capital | Number | Number | £ | £ |
| Issued and fully paid |
| Ordinary shares of £1 each | 17,100 | 17,100 | 17,100 | 17,100 |
| Ordinary B shares of £1 each | 200 | 200 | 200 | 200 |
| Ordinary C shares of £1 each | 100 | 100 | 100 | 100 |
| Ordinary D shares of £1 each | 100 | 100 | 100 | 100 |
| Ordinary E shares of £1 each | 100 | 100 | 100 | 100 |
| Ordinary F shares of £1 each | 100 | 100 | 100 | 100 |
| Ordinary H shares of £1 each | 100 | 100 | 100 | 100 |
| Ordinary J shares of £1 each | 100 | 100 | 100 | 100 |
| 17,900 | 17,900 | 17,900 | 17,900 |
| 23. | RESERVES |
| Share premium account |
| This reserve records the amount above the nominal value received for shares sold, less transaction costs. |
| Capital redemption reserve |
| This reserve records the nominal value of shares repurchased by the company. |
| Profit and loss account |
| This reserve records retained earnings and accumulated losses. |
| 24. | FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES |
| The bank has given a guarantee to H.M Revenue and Customs totalling £300,000 (2021: £300,000). |
| 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, the company 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). |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the years ended 31 December 2022 and 31 December 2021: |
| 2022 | 2021 |
| £ | £ |
| Balance outstanding at start of year |
| Amounts advanced |
| Amounts repaid | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year |
| Balance outstanding at start of year |
| Amounts advanced |
| Amounts repaid | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year |
| Beneficial loan interest has been charged of £1,873 in respect of N J Burrell's loan account and £1,224 in respect of G Newman's loan account using HMRC rates. |
| The directors' loan accounts are both unsecured. |
| 26. | RELATED PARTY DISCLOSURES |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 26. | RELATED PARTY DISCLOSURES - continued |
| Transactions with related parties |
| During the year the company entered into the following transactions with related parties: |
| Sales | Purchases |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Entities with control, joint control or significant influence over the company |
- |
- |
186,000 |
309,724 |
| Entities under common control of one or more directors |
2,837,197 |
284,416 |
226,559 |
370,217 |
| The following amounts were outstanding at the reporting end date: |
| 2022 | 2021 |
| Amounts due to related parties | £ | £ |
| Entities under common control of one or more directors | - | 417,398 |
| 2022 | 2021 |
| Amounts due from related parties | £ | £ |
| Entities with control, joint control or significant influence over the company | 4,100,898 | 3,999,299 |
| Entities under common control of one or more directors | 4,649,875 | 3,059,664 |
| During the year £1,030,000 was loaned to a company under common control of one or more of the directors. |
| 27. | POST BALANCE SHEET EVENTS |
| On the 17th August 2023 the company reduced their share capital from £17,900 to £17,400 by cancelling and extinguishing: 100 of the issued B Ordinary shares of £1 each, 100 issued C Ordinary shares of £1 each, 100 issued E Ordinary shares of £1 each, 100 issued F Ordinary shares of £1 each and 100 issued H Ordinary shares of £1 each; all of which were fully paid. |
| 28. | ULTIMATE CONTROLLING PARTY |
| The parent company was Pinnacle International Freight Holdings Limited, which is registered in England and Wales and whose registered office is Unit 1, Swannington Road, Broughton Astley, Leicester, LE9 6TU. |
| Consolidated financial statements for Pinnacle International Freight Holdings Limited, the largest and smallest group to consolidate the results of the company, can be obtained from the registered office. |
| The ultimate controlling party is N J Burrell. |
| Pinnacle International Freight Limited (Registered number: 01059368) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 29. | RETIREMENT BENEFIT SCHEMES |
| 2022 | 2021 |
| Defined contribution schemes | £ | £ |
| Charge to profit or loss in respect of defined contribution schemes | 204,750 | 223,956 |
| The company operates a defined contribution scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. |