Company registration number 05024564 (England and Wales)
EXPRESS GLOBAL INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
EXPRESS GLOBAL INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
A. Cosulich
A. Giuliani
R. Wishart
(Appointed 22 March 2022)
Company number
05024564
Registered office
Unit 3, Suite 12
Orwell House
Ferry Lane
FELIXSTOWE
IP11 3QL
Auditor
BG Audit LLP
Statutory Auditors
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
Business address
Unit 3, Suite 12
Orwell House
Ferry Lane
FELIXSTOWE
IP11 3QL
EXPRESS GLOBAL INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
EXPRESS GLOBAL INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
The principal activity of the company is freight forwarding.
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and the position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties that we face.
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being gross profit, administrative expense control, profit before tax and shareholders' funds.
The key financial highlights over the last 3 years are as follows:
2021 2020 2019
£ £ £
Gross Profit 736,691 513,647 476,367
Administrative expenses 529,831 530,793 583,279
Profit/(loss) before tax 236,521 1,621 (107,842)
Shareholders funds 616,288 404,986 403,365
The Company has had a successful year by adapting to the changing market conditions principally caused by the Covid pandemic and Brexit. In particular by having its own in-house team the Company has been able to provide an efficient and cost effective Customs Clearance procedure.
The Subsidiary has also had a good year by adapting to the market conditions.
Future developments
The Company is continuing to diversify its Customer Base so it is less dependent upon seasonal activity.
Principal risks and uncertainties
Risk management is an important part of the management process of the company and the systems of internal control have been developed to address the principal risks. A policy of continual improvement has been adopted when assessing the adequacy of internal controls by means of a regular review.
The company faces specific risks at a number of levels:-
Strategic - the company is susceptible to change within the UK and global economies and attempts to limit its exposure by serving different industries across a variety of trade routes.
Competitive - the business remains in a highly competitive market. Steps have been taken to concentrate on those areas in which the company has an advantage and can compete effectively.
Financial - the company strives to protect it's financial position. It has in place strict credit control procedures to check the financial status of debtors and control the amount of debt outstanding to help mitigate this risk.
Development and performance
Treasury - the company deals with foreign currencies and as such is exposed to associated exchange rate fluctuations. This is mitigated by holding currency bank accounts. The company has borrowing facilities in place that are secured by group companies.
Liquidity - working capital risks are regularly monitored, with cash balances and cash flows being checked to ensure that the business can operate comfortably within established credit lines.
EXPRESS GLOBAL INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Statement of emissions
The Company is aware of its Carbon footprint and strives to ensure it is minimised as far as possible by efficient use of resources.
Section 172 Statement
The Directors set out their Section 172 (1) statement in accordance with the Companies Act 2006 in relation to stakeholder engagement for the year ended 31st December 2021
Employees:
The Company recognises the importance that retaining and developing Employees skills is to the continuing success of the business.
Suppliers:
The Company recognises the importance of having good relationship with suppliers and continues to strive to build strong relationships with both existing and new suppliers.
Customers:
The Company strives to build long term relationships with Customers by providing them an efficient and cost effective service.
Shareholders:
The Directors have ensured that the Company trades profitably and has maintained a good cash flow in order to protect Shareholder value
Local Communities:
The Company is aware of its responsibility to consider the local community in relation to its activities.
R. Wishart
Director
15 June 2022
EXPRESS GLOBAL INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of freight forwarding.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A. Cosulich
A. Giuliani
R. Wishart
(Appointed 22 March 2022)
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Auditor
The auditor, BG Audit LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
(a) so far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware, and
(b) they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
On behalf of the board
R. Wishart
Director
15 June 2022
EXPRESS GLOBAL INTERNATIONAL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.
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.
EXPRESS GLOBAL INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EXPRESS GLOBAL INTERNATIONAL LIMITED
- 5 -
Opinion
We have audited the financial statements of Express Global International Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 2021 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
EXPRESS GLOBAL INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EXPRESS GLOBAL INTERNATIONAL LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the Company, industry, and principal risks of non-compliance with laws and regulations, we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that impact directly on the preparation of the financial statements including the Companies Act, and UK tax legislation.
We considered managements incentives and opportunities for fraudulent adjustments to the financial statements including override of controls and determined that the principal risks were related to inappropriate journal entries or fraudulent transactions that would result in the manipulation of profits.
Audit procedures included:
Making enquiries of management for known or suspected instances of fraud or non-compliance with laws and regulations.
Consideration of management’s procedures for detecting and preventing fraud, including controls.
Reviewing journal entries to identify material or unusual transactions.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
EXPRESS GLOBAL INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EXPRESS GLOBAL INTERNATIONAL LIMITED
- 7 -
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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Roger Beaton F.C.A. (Senior Statutory Auditor)
For and on behalf of BG Audit LLP
15 June 2022
Statutory Auditor
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
EXPRESS GLOBAL INTERNATIONAL LIMITED
STATEMENT OF TOTAL COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
8,650,973
6,091,490
Cost of sales
(7,914,282)
(5,577,843)
Gross profit
736,691
513,647
Administrative expenses
(529,831)
(530,793)
Other operating income
30,000
19,332
Operating profit
5
236,860
2,186
Interest receivable and similar income
8
1,795
Interest payable and similar expenses
9
(2,134)
(565)
Profit before taxation
236,521
1,621
Taxation
10
(25,219)
Profit for the financial year
20
211,302
1,621
Total comprehensive income for the year
211,302
1,621
The Statement of Total Comprehensive Income has been prepared on the basis that all operations are continuing operations.
EXPRESS GLOBAL INTERNATIONAL LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
11
15,619
13,409
Investments
12
16,029
16,029
31,648
29,438
Current assets
Debtors
15
2,834,661
1,312,992
Cash at bank and in hand
139,356
177,548
2,974,017
1,490,540
Creditors: amounts falling due within one year
16
(2,389,377)
(1,114,992)
Net current assets
584,640
375,548
Total assets less current liabilities
616,288
404,986
Capital and reserves
Called up share capital
19
50,000
50,000
Profit and loss reserves
20
566,288
354,986
Total equity
616,288
404,986
The financial statements were approved by the board of directors and authorised for issue on 15 June 2022 and are signed on its behalf by:
R. Wishart
Director
Company Registration No. 05024564
EXPRESS GLOBAL INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2020
50,000
353,365
403,365
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
1,621
1,621
Balance at 31 December 2020
50,000
354,986
404,986
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
211,302
211,302
Balance at 31 December 2021
50,000
566,288
616,288
EXPRESS GLOBAL INTERNATIONAL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(598,714)
(124,338)
Interest paid
(2,134)
(565)
Income taxes refunded/(paid)
51
Net cash outflow from operating activities
(600,797)
(124,903)
Investing activities
Purchase of tangible fixed assets
(16,958)
Proceeds on disposal of tangible fixed assets
14,876
Interest received
1,795
Net cash used in investing activities
(287)
Net cash used in financing activities
Net decrease in cash and cash equivalents
(601,084)
(124,903)
Cash and cash equivalents at beginning of year
(66,177)
58,726
Cash and cash equivalents at end of year
(667,261)
(66,177)
Relating to:
Cash at bank and in hand
139,356
177,548
Bank overdrafts included in creditors payable within one year
(806,617)
(243,725)
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
1
Accounting policies
Company information
Express Global International Limited is a private company limited by shares incorporated in England and Wales. The company number is 05024564. The registered office is Unit 3, Suite 12, Orwell House, Ferry Lane, FELIXSTOWE, IP11 3QL.
1.1
Accounting convention
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 401 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.
Express Global International Limited is a wholly owned subsidiary of Fratelli Cosulich Unipessoal S.A. and the results of Express Global International Limited and its subsidiary are included in the consolidated financial statements of Fratelli Cosulich S.p.A. which are available from 41 Molo Ponte Morosini, 16126 Genova, Italy.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true
1.3
Turnover
Turnover represents amounts receivable for services net of VAT and trade discounts. Turnover is recognised in the period in which delivery of freight forwarding services are provided.
1.4
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:
Fixtures, fittings & equipment
12 - 20% on cost
Computer equipment
20 - 33.33% on cost
Motor vehicles
33.33% on cost
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.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities 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.
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
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.
1.6
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.
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.
1.7
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.
1.8
Financial instruments
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.
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
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, 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 company 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 company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
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.
1.11
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.
1.12
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.14
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.
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 16 -
2
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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Freight forwarding
8,650,973
6,091,490
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
7,359,918
4,603,687
Rest of the world
1,291,055
1,487,803
8,650,973
6,091,490
2021
2020
£
£
Other revenue
Interest income
1,795
-
Grants received
30,000
19,332
4
Exceptional item
Included in other income is £30,000 received from the government regarding the Customs Grant Scheme.
5
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
14,583
(9,274)
Government grants
(30,000)
(19,332)
Depreciation of owned tangible fixed assets
7,752
9,100
Profit on disposal of tangible fixed assets
(7,880)
Operating lease charges
25,000
20,000
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
6
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,720
8,595
For other services
All other non-audit services
17,517
16,707
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Sales and administration
10
10
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
319,621
316,243
Social security costs
30,055
27,780
Pension costs
3,439
6,409
353,115
350,432
8
Interest receivable and similar income
2021
2020
£
£
Interest income
Other interest income
1,795
9
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,134
565
10
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
25,219
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
10
Taxation
(Continued)
- 18 -
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:
2021
2020
£
£
Profit before taxation
236,521
1,621
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
44,939
308
Tax effect of expenses that are not deductible in determining taxable profit
(2,088)
1,240
Tax effect of utilisation of tax losses not previously recognised
(18,099)
(2,204)
Change in unrecognised deferred tax assets
(3,242)
656
Corporation tax over provided in accounts
3,709
Taxation charge for the year
25,219
-
11
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2021
94,120
201,792
25,294
321,206
Additions
5,347
11,611
16,958
Disposals
(25,294)
(25,294)
At 31 December 2021
99,467
213,403
312,870
Depreciation and impairment
At 1 January 2021
94,045
197,845
15,907
307,797
Depreciation charged in the year
228
5,133
2,391
7,752
Eliminated in respect of disposals
(18,298)
(18,298)
At 31 December 2021
94,273
202,978
297,251
Carrying amount
At 31 December 2021
5,194
10,425
15,619
At 31 December 2020
75
3,947
9,387
13,409
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
12
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
13
15,674
15,674
Unlisted investments
355
355
16,029
16,029
The unlisted investment has been valued at cost on the basis that a reliable market value is not readily ascertainable.
13
Subsidiaries
Details of the company's subsidiaries at 31 December 2021 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Fratelli Cosulich USA. LLC
25 Broadway, New York NY 10004-1010
Supply and trade marine fuel and lubricants
Member contribution
100.00
0
14
Financial instruments
2021
2020
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,809,732
1,290,517
Equity instruments measured at cost less impairment
16,029
16,029
Carrying amount of financial liabilities
Measured at amortised cost
2,353,499
1,024,449
15
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
2,688,721
1,188,149
Amounts owed by group undertakings
119,013
101,346
Other debtors
18,982
1,022
Prepayments and accrued income
7,945
22,475
2,834,661
1,312,992
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
16
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Loans and overdrafts
17
806,617
243,725
Trade creditors
1,512,120
752,698
Amounts due to fellow group undertakings
4,741
4,074
Corporation tax
25,270
Other taxation and social security
10,608
90,543
Other creditors
7,117
405
Accruals and deferred income
22,904
23,547
2,389,377
1,114,992
17
Loans and overdrafts
2021
2020
£
£
Bank overdrafts
806,617
243,725
Payable within one year
806,617
243,725
The bank overdraft is secured by the ultimate parent of the group, Fratelli Cosulich S.p.A.
18
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
3,439
6,409
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
19
Share capital
2021
2020
£
£
Ordinary share capital
Authorised
50,000 Ordinary shares of £1 each
50,000
50,000
Issued and fully paid
50,000 Ordinary shares of £1 each
50,000
50,000
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
20
Profit and loss reserves
2021
2020
£
£
At the beginning of the year
354,986
353,365
Profit for the year
211,302
1,621
At the end of the year
566,288
354,986
21
Financial commitments, guarantees and contingent liabilities
The bank has made a duty guarantee on behalf of the company to HM Revenue and Customs amounting to £150,000. The security on these Guarantees were given by the ultimate parent of the group, Fratelli Cosulich S.p.A.
22
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
29,440
20,000
Between two and five years
114,343
1,667
In over five years
2,291
146,074
21,667
A new lease for the premises has been signed since the year end, and the commitment is included in the above figures. The lease term is for 5 years. The charge for years 1 and 2 is £25,000pa, for years 3-5 it is £27,500pa.
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, is as follows:
2021
2020
£
£
Aggregate compensation
68,613
Other information
The company has taken advantage of the exemption in FRS102 from the requirement to disclose transactions with group companies where any party is 100% owned within the group.
Sales to group companies not 100% owned are £472,902. Purchases from group companies not 100% group owned are £376,610. Included within amounts owed by group undertakings is £113,867 due from group companies not 100% owned.
24
Ultimate controlling party
The immediate parent company of Express Global International Limited is Fratelli Cosulich Unipessoal S.A., a company registered in Portugal. The ultimate parent company is Fratelli Cosulich S.p.A., a company registered in Italy. The group accounts are available from Fratelli Cosulich S.p.A., 41 Molo Ponte Morosini, 16126 Genova, Italy.
25
Cash absorbed by operations
2021
2020
£
£
Profit for the year after tax
211,302
1,621
Adjustments for:
Taxation charged
25,219
Finance costs
2,134
565
Investment income
(1,795)
Gain on disposal of tangible fixed assets
(7,880)
Depreciation and impairment of tangible fixed assets
7,752
9,100
Movements in working capital:
(Increase)/decrease in debtors
(1,521,669)
25,358
Increase/(decrease) in creditors
686,223
(160,982)
Cash absorbed by operations
(598,714)
(124,338)
EXPRESS GLOBAL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
26
Analysis of changes in net debt
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
177,548
(38,192)
139,356
Bank overdrafts
(243,725)
(562,892)
(806,617)
(66,177)
(601,084)
(667,261)
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