High Speed Transfers Ltd - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 10954400 (England and Wales)

HIGH SPEED TRANSFERS LTD

FINANCIAL STATEMENTS

FOR THE PERIOD 1 MARCH 2022 TO 31 DECEMBER 2022

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

9

DIRECTORS:

D Carman

A Mcdonald

C Monan

T A Nevin

I G Oxford

J Proctor

P Berg

REGISTERED OFFICE:

11 Axis Court

Riverside Business Park

Swansea Vale

Swansea

SA7 0AJ

REGISTERED NUMBER:

10954400 (England and Wales)

AUDITORS:

MHA

Chartered Accountants and Statutory Auditor

Swansea, United Kingdom

AUDITORS OFFICE:

3 New Mill Court

Swansea Enterprise Park

Swansea

SA7 9FG

FIXED ASSETS

Tangible assets

4

29,429,509

23,605,449

CURRENT ASSETS

Debtors

5

2,600,938

1,978,283

Cash at bank

673,696

565,040

3,274,634

2,543,323

CREDITORS

Amounts falling due within one year

6

4,437,033

3,877,258

NET CURRENT LIABILITIES

(1,162,399

)

(1,333,935

)

TOTAL ASSETS LESS CURRENT LIABILITIES

28,267,110

22,271,514

CREDITORS

Amounts falling due after more than one year

7

21,722,158

21,073,906

NET ASSETS

6,544,952

1,197,608

CAPITAL AND RESERVES

Called up share capital

9

56,618

1

Share premium

5,605,062

-

Retained earnings

883,272

1,197,607

SHAREHOLDERS' FUNDS

6,544,952

1,197,608

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 11 August 2023 and were signed on its behalf by:

I G Oxford - Director

1.	STATUTORY INFORMATION

High Speed Transfers Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

Monetary amounts in these financial statements are rounded to the nearest £.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has changed the financial year-end from 28 February to 31 December to align with fellow group companies. Therefore the comparative amounts presented in these financial statements (including the related notes) are not entirely comparable.

Related party exemption

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.

Critical accounting 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.

Turnover

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

Turnover is recognised at the fair value of 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.

Revenue recognition

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation contractual hourly staff rates and materials as a proportion of costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent that it is probable to be recovered.

Tangible fixed assets

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

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:

Vessels

4% - 7% straight line

Plant and Equipment

25% straight line

Motor vehicles

25% straight line

Computer Equipment

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 of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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). 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 carrying 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 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 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 sequently 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 revaluation increase.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments that are classified as payable or receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

Basic financial assets

Basic financial assets, which include trade 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.

Basic financial liabilities

Basic financial liabilities, including trade creditors 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.

Derecognition of financial assets

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the company, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.

Derecognition of financial liabilities

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Cash at bank and in hand

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.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

In preparing the financial statements, the directors have considered the current financial position of the company and likely future cashflows. The company has reported a loss in the current financial year, however, it also has net assets at the balance sheet date.

The directors have assessed the risks facing the business from the current economic uncertainty and implemented measures to address these risks. The directors believe that the company is well placed to manage its business risks successfully, despite the uncertain economic outlook.

Therefore after making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors consider it appropriate to continue to adopt the going concern basis in preparing the financial statements.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 16 (2022 - 11 ) .

4.	TANGIBLE FIXED ASSETS

Vessels

Vessels

Under

in

Plant &

Construction

Service

Machinery

£

£

£

COST

At 1 March 2022

2,276,961

22,724,998

615,075

Additions

6,331,706

59,161

382,496

At 31 December 2022

8,608,667

22,784,159

997,571

DEPRECIATION

At 1 March 2022

-

1,752,521

302,830

Charge for period

-

787,774

159,236

At 31 December 2022

-

2,540,295

462,066

NET BOOK VALUE

At 31 December 2022

8,608,667

20,243,864

535,505

At 28 February 2022

2,276,961

20,972,477

312,245

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 March 2022

62,012

14,623

25,693,669

Additions

-

12,217

6,785,580

At 31 December 2022

62,012

26,840

32,479,249

DEPRECIATION

At 1 March 2022

23,092

9,777

2,088,220

Charge for period

10,649

3,861

961,520

At 31 December 2022

33,741

13,638

3,049,740

NET BOOK VALUE

At 31 December 2022

28,271

13,202

29,429,509

At 28 February 2022

38,920

4,846

23,605,449

Vessels have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2022

£

£

Trade debtors

1,308,578

985,837

Amounts owed by group undertakings

937,522

747,689

Other debtors

354,838

244,757

2,600,938

1,978,283

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2022

£

£

Trade creditors

1,365,328

1,588,779

Taxation and social security

39,949

13,054

Other creditors

3,031,756

2,275,425

4,437,033

3,877,258

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2022

£

£

Other creditors

21,722,158

21,073,906

8.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2022

£

£

Other loans

24,515,706

23,019,782

Other loans are secured against the individual vessels held in the company's balance sheet. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2022

value:

£

£

5,661,779

Ordinary

0.01

56,618

1

5,661,679 Ordinary shares of 0.01 each were allotted and fully paid for cash at par during the period.

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

The Report of the Auditors was unqualified.

Brian Garland BA ACA (Senior Statutory Auditor)

for and on behalf of MHA

11.	CAPITAL COMMITMENTS

2022

2022

£

£

Contracted but not provided for in the

financial statements

32,793,951

-

12.	RELATED PARTY DISCLOSURES

The company has loans outstanding from related parties who are under common ownership. The amounts are repayable over 7 years and interest is charged at 5% per annum. At the balance sheet date the company was owed £937,522 (2022 £5,913,694) to the related parties.

13.	POST BALANCE SHEET EVENTS

Subsequent to the balance sheet date, High Speed Transfers Ltd become the parent company of 25 newly incorporated subsidiaries.

14.	ULTIMATE CONTROLLING PARTY

The immediate controlling party is HST Marine Holdings Ltd. The ultimate controlling party is Purus Marine Holdings LP which is registered in the Cayman Islands.