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Seko Logistics (Southampton) Limited

Registered number: 08586910
Annual report
For the year ended 31 December 2021

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
COMPANY INFORMATION


Directors
G A Ward 
Seko Logistics (London) Limited 




Registered number
08586910



Registered office
Tower Bridge House
St Katharine's Way

London

United Kingdom

E1W 1DD




Independent auditor
Mazars LLP
Chartered Accountants & Statutory Auditor

2nd Floor

6 Sutton Plaza

Sutton Court Road

Sutton

Surrey

SM1 4FS





 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 

CONTENTS



Page
Directors' Report
1 - 3
Independent Auditor's Report
4 - 7
Statement of Income and Retained Earnings
8
Balance Sheet
9
Notes to the Financial Statements
10 - 23


 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their report and the audited financial statements for Seko Logistics (Southampton) Limited (the "Company") for the year ended 31 December 2021.

Principal activity

Seko Logistics (Southampton) Limited are a leading provider of customer focused supply chain management solutions.

Results and dividends

The profit for the year, after taxation, amounted to £1,293,443 (2020: profit of £816,450).

The directors do not recommend the payment of a dividend (2020: £nil).

Directors

The directors who served during the year and up to the date of this report were:

J E Huelin (resigned 30 July 2021)
G A Ward 
Seko Logistics (London) Limited 

Directors' responsibilities statement

The directors are responsible for preparing the Directors' Report and the audited financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare audited financial statements for each financial year. Under that law the directors have elected to prepare the audited financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the audited 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 audited financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent; and

prepare the audited financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the audited financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 1

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Third party indemnities

Seko Logistics Group Limited has procured insurance to provide indemnity cover for all directors in respect of the cost of defending claims against them and third party liabilities. These are all third party indemnity provisions for the purpose of the Companies Act 2006 and are all currently in force.

Going concern

The results of the Company are set out in the Statement of Comprehensive Income above. The financial position of the Company, its liquidity position and its cash flows are reflected in the Balance Sheet.
The directors have assessed the current and forecasted trading activity and expected forecasted cashflows and have concluded that there is certainty that the company is expected to be able to continue to meet its obligations as they arise for the foreseeable future. The period that the directors have paid particular attention to was a period of no less than 12 months from the date of approval.
Potential sources of uncertainty noted by the directors include the withdrawal of the United Kingdom from the European Union, and Coronavirus and the COVID-19 pandemic. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

The withdrawal of the United Kingdom from the European Union

New trading arrangements between the United Kingdom and the European Union took effect on 31 December 2020. In general, tariffs and quotas on trade have not been introduced, although administrative complications and regulatory restrictions have reduced the freedom of cross-border trade. The Company is carefully monitoring the practical application of the new trading arrangements by regulatory authorities, to better understand what the eventual impact on its business will be. The process of determining these effects is ongoing, and has also been delayed by the suspension of certain sectors of economic activity in response to the COVID-19 pandemic.

COVID-19

The COVID-19 pandemic continues to affect the UK and global economies however the recent lifting of social restrictions by the government means the directors anticipate the UK and global economies to return to growth in due course. It is not possible to predict how quickly and to what degree this may happen. The priorities of the directors remain to comply with any remaining regulatory requirements to the fullest extent possible, and to maintain the safety and well-being of the Company's personnel.

Disclosure of information to auditor

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

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

Page 2

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Post balance sheet events

On 24 February 2022 Russian Forces entered Ukraine, resulting in Western Nation reactions including announcements of sanctions against Russia and Russian interests worldwide and an economic ripple effect on the global economy. The directors have carried out an assessment of the potential impact of Russian Forces entering Ukraine on the business, including the impact of mitigation measures and uncertainties, and have concluded that this is a non-adjusting post balance sheet event with the greatest impact on the business expected to be from the economic ripple effect on the global economy.

Auditor

The auditor, Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

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





Seko Logistics (London) Limited
Director

Date: 11 August 2022

Page 3

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 

Opinion

We have audited the financial statements of Seko Logistics (Southampton) Limited (the ‘Company’) for the year ended 31 December 2021 which comprise the Statement of Income and Retained Earnings, the Balance Sheet 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 FRS 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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.
Page 4

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 

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 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In 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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the Directors’ Report and from the requirement to prepare a Strategic Report.
 
Page 5

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 

Responsibilities of Directors

As explained more fully in the directors' responsibilities statement set out on page 1, 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 either the directors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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. 
Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation,  health and safety regulation, anti-money laundering regulation, non-compliance with implementation of government support schemes relating to COVID-19. 
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud. 

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
 
Page 6

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 


In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the assertion of cut-off), and significant one-off or unusual transactions. 
Our audit procedures in relation to fraud included but were not limited to:

Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit 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 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.



  


Gerhard Bonthuys (Senior statutory auditor)
for and on behalf of Mazars LLP
Chartered Accountants & Statutory Auditor 
2nd Floor
6 Sutton Plaza
Sutton Court Road
Sutton
Surrey
SM1 4FS

30 August 2022
Page 7

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
Note
£
£

  

Turnover
 4 
30,731,749
13,333,211

Cost of sales
  
(27,914,165)
(11,576,195)

Gross profit
  
2,817,584
1,757,016

Administrative expenses
  
(1,205,126)
(755,508)

Other operating income
 5 
-
13,955

Operating profit
6
1,612,458
1,015,463

Interest payable and similar expenses
 10 
(13,286)
(6,415)

Profit before tax
  
1,599,172
1,009,048

Tax on profit
 11 
(305,729)
(192,598)

Profit after tax
  
1,293,443
816,450

  

  

Retained earnings at the beginning of the year
  
1,733,699
917,249

  
1,733,699
917,249

Profit for the year
  
1,293,443
816,450

Retained earnings at the end of the year
  
3,027,142
1,733,699

The Statement of Income and Retained Earnings has been prepared under the basis that all operations are continuing operations. 

The notes on pages 10 to 23 form part of these financial statements.

Page 8

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
REGISTERED NUMBER: 08586910

BALANCE SHEET
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

Fixed assets
  

Tangible assets
 12 
26,373
11,634

  
26,373
11,634

Current assets
  

Debtors: Amounts falling due within one year
 13 
8,416,106
4,505,966

Cash and cash equivalents
  
78,026
-

  
8,494,132
4,505,966

Creditors: Amounts falling due within one year
 14 
(5,493,263)
(2,783,801)

Net current assets
  
 
 
3,000,869
 
 
1,722,165

Total assets less current liabilities
  
3,027,242
1,733,799

  

Net assets
  
3,027,242
1,733,799


Capital and reserves
  

Called up share capital 
 17 
100
100

Profit and loss account
 18 
3,027,142
1,733,699

Total equity
  
3,027,242
1,733,799


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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




Seko Logistics (London) Limited
Director

Date: 11 August 2022

Page 9

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1.


General information

Seko Logistics (Southampton) Limited (the "Company”) is a private company limited by shares and incorporated in England and Wales. The address of its registered office is 30 Old Bailey, London, EC4M 7AU and the principal place of business is Minton Place, Victoria Street, Windsor, SL4 1EG.
Seko Logistics (Southampton) Limited are a leading provider of customer focused supply chain management solutions.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
These financial statements have been presented in Pounds Sterling and are rounded to the nearest pound, as this is the Company’s functional currency, being the currency of the primary economic environment in which the Company operates.

The following principal accounting policies have been applied:

  
2.2

Going concern

The results of the Company are set out in the Statement of Comprehensive Income above. The financial position of the Company, its liquidity position and its cash flows are reflected in the Balance Sheet.
The directors have assessed the current and forecasted trading activity and expected forecasted cashflows and have concluded that there is certainty that the company is expected to be able to continue to meet its obligations as they arise for the foreseeable future. The period that the directors have paid particular attention to was a period of no less than 12 months from the date of approval.
Potential sources of uncertainty noted by the directors include the withdrawal of the United Kingdom from the European Union, and Coronavirus and the COVID-19 pandemic. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 10

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.3

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents amounts for the rendering of services in the normal course of business, net of discounts and sales-related taxes.
Turnover from freight forwarding services
The provision of freight forwarding services includes air freight and sea freight. Turnover is earned when the Company acts as a freight consolidator in respect of air freight services, and as a nonvessel operating common carrier in respect of sea freight services. In both cases, the Company acts as an indirect carrier and therefore turnover is recognised when the services are rendered, which coincide with the date of arrival of shipments (for import freight) and the date of departure of shipments (for export freight).
Turnover from warehousing and distribution services
Turnover is recognised from the provision of warehousing and distribution services over the period in which the services are provided.

 
2.4

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 11

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentation currency is Pounds Sterling.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Income and Retained Earnings.

All foreign exchange gains and losses are presented in the Statement of Income and Retained Earnings within 'cost of sales'.

 
2.6

Tangible assets

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

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
6 years
Computer equipment
-
3 years

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.

Page 12

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

  
2.7

Impairment of assets

At each reporting date, the Company reviews the carrying value of its 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.
The recoverable amount of an asset is the higher of fair value less costs to sell and value in use. Value in use is the present value of the future cash flows expected to be derived from the asset.
The present value calculation involves estimating the future cash inflows and outflows to be derived from continuing use of the asset, and from its ultimate disposal, applying an appropriate discount rate to those future cash flows.
Where the recoverable amount of an asset is less than the carrying amount, an impairment loss is recognised immediately in the Statement of Comprehensive Income.
An impairment loss recognised for all assets is reversed in a subsequent year if, and only if, the reasons for the impairment loss have ceased to apply.

 
2.8

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Page 13

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)


2.8
Financial instruments (continued)

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 14

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

  
2.14

Government grants

The UK government has offered a range of financial support packages to help companies, including government backed financing arrangements, furlough schemes, deferment of VAT payments and, for some sectors, business rates holidays, of the offered schemes, the Company used the furlough scheme and deferral of VAT payments. The income from the furlough scheme has been recognised within 'Other operating income'. They are recognised when the entity has reasonable assurance that they will comply with the conditions attaching the grant, and that the grant will be received.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised, if the revision affects only that year, or in the year of the revision and future years, if the revision affects both current and future years.
3.1 Critical judgements in applying the Company’s accounting policies
The critical judgements that the directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Assessing indicators of impairment 
In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
3.2 Key sources of estimation uncertainty
The assumptions concerning the future, and other sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
The directors do not consider there to be any key sources of estimation uncertainty.

Page 15

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

4.


Turnover

An analysis of turnover by class of business is as follows:

2021
2020
£
£

Provision of services
30,731,749
13,333,211


Turnover attributable to geographical markets outside the United Kingdom amounted to 13.0% (2020: 12.8%).


5.


Other operating income

2021
2020
£
£

Government grants receivable
-
13,955


Government grants receivable relates to the Coronavirus Job Retention Scheme (CJRS).


6.


Operating profit

Operating profit is stated after charging/(crediting):


2021
2020
£
£



Depreciation of tangible assets
8,481
7,311

Loss on sale of tangible assets
2,474
-

Operating lease expenses - office rent
32,303
24,359

Foreign exchange (gains)/losses
(19,581)
73,746


7.


Auditor's remuneration

2021
2020
£
£



Fees payable to the Company's auditor for the audit of the Company's annual financial statements
15,000
7,725

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the group accounts of the parent Company.

Page 16

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

8.


Employees

The average monthly number of employees, including directors, during the year was 13 (2020: 11).


9.


Directors' remuneration

2021
2020
£
£



Emoluments
309,190
267,558

Pension scheme contributions
12,928
13,350

322,118
280,908

The highest paid director received remuneration of £244,722 (2020: £156,637).
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £8,618 (2020: £8,850).
Certain directors of the Company are remunerated by another entity within the group, Seko Logistics (London) Limited, as they are also directors of that entity. There is no allocation of their remuneration to the Company for their services to the Company. Their remuneration is disclosed within the Seko Logistics (London) Limited financial statements.


10.


Interest payable and similar expenses

2021
2020
£
£


Bank interest payable
11,997
6,415

Other interest payable
1,289
-

13,286
6,415

Page 17

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

11.


Tax on profit


2021
2020
£
£

Corporation tax


Current tax on profits for the year
306,758
193,420

Adjustments in respect of previous periods
1,585
-

Total current tax
308,343
193,420

Deferred tax


Origination and reversal of timing differences
(1,804)
(625)

Changes to tax rates
(794)
(197)

Adjustments in respect of prior periods
(16)
-

Total deferred tax
(2,614)
(822)


Tax on profit
305,729
192,598

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2020: higher than) the standard rate of corporation tax in the UK of19% (2020:19%). The differences are explained below:

2021
2020
£
£


Profit before tax
1,599,172
1,009,048


Profit multiplied by standard rate of corporation tax in the UK of 19% (2020: 19%)
303,843
191,719

Effects of:


Fixed asset differences
(1,551)
13

Expenses not deductible for tax purposes
3,095
1,063

Adjustments to tax charge in respect of prior periods
1,585
-

Adjustments to tax charge in respect of prior periods - deferred tax
(16)
-

Remeasurement of deferred tax for changes in tax rates
(1,227)
(197)

Total tax charge for the year
305,729
192,598

Page 18

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
 
11.Tax on profit (continued)


Factors that may affect future tax charges

The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.


12.


Tangible assets





Fixtures and fittings
Computer equipment
Total

£
£
£



Cost


At 1 January 2021
15,565
27,242
42,807


Additions
13,267
12,427
25,694


Disposals
(15,565)
(7,838)
(23,403)



At 31 December 2021

13,267
31,831
45,098



Depreciation


At 1 January 2021
11,904
19,269
31,173


Charge for the year
2,035
6,446
8,481


Disposals
(13,091)
(7,838)
(20,929)



At 31 December 2021

848
17,877
18,725



Net book value



At 31 December 2021
12,419
13,954
26,373



At 31 December 2020
3,661
7,973
11,634

Page 19

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

13.


Debtors: Amounts falling due within one year

2021
2020
£
£


Trade debtors
5,303,819
1,459,493

Amounts owed by group companies
2,159,928
2,717,589

Other debtors
118,109
95,249

Prepayments and accrued income
829,136
231,135

Deferred taxation (note 15)
5,114
2,500

8,416,106
4,505,966


Trade debtors are stated after a provision for bad debts of £66,202 (2020: £27,702).
Amounts owed by group companies are unsecured, interest-free and payable on demand. 


14.


Creditors: Amounts falling due within one year

2021
2020
£
£

Trade creditors
2,232,290
528,905

Amounts owed to group companies
474,861
164,612

Corporation tax
-
134,567

Other taxation and social security
19,047
21,238

Other creditors
155,212
106,227

Accruals and deferred income
2,611,853
1,828,252

5,493,263
2,783,801


Amounts owed to group companies are unsecured, interest-free and repayable on demand.

Page 20

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

15.


Deferred taxation




2021
2020


£

£






At beginning of year
2,500
1,678


Charged to Statement of Comprehensive Income
2,614
822



At end of year
5,114
2,500

The deferred tax asset is made up as follows:

2021
2020
£
£


Fixed asset timing differences
(5,338)
(1,045)

Short term timing differences
10,452
3,545

5,114
2,500


16.


Other financial commitments

On 19 April 2021 as security for its loans to the Company, the Company granted RBS Invoice Finance Limited a charge which was fixed over land and intellectual property both present and future, and floating over all assets and undertakings both present and future. The terms of the charge require that its validity shall continue until all liabilities secured by the charge have been satisfied.


17.


Called up share capital

2021
2020
£
£
Allotted, called up and not fully paid



100 (2020: 100) Allotted, called-up and fully paid shares of £1 each
100
100

The Company has one class of shares; each share carries one voting right per share but no right to fixed income.


18.


Reserves

Profit and loss account

This reserve represents the cumulative profits and losses.

Page 21

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021


19.


Pension commitments

The Company operates a defined contribution pension plan for its employees. The assets of the scheme are held separately from those of the Company in an independent administered fund. Contributions amounting to £237 (2020: £2,031) were outstanding at the reporting date and are included within creditors.


20.


Commitments under operating leases

At 31 December 2021 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2021
2020
£
£


Not later than 1 year
79,462
22,500

Later than 1 year and not later than 5 years
207,961
24,663

287,423
47,163


21.


Related party transactions

2021
2020
£
£

Transactions with group companies


Services rendered (by) group undertakings
(3,042,522)
(2,877,419)

Services rendered to group undertakings
119,169
435,753

2021
2020
£
£

Amounts due (to)/from group companies


Included within creditors
(474,861)
(164,612)

Included within debtors
2,159,928
2,717,589

Page 22

 
SEKO LOGISTICS (SOUTHAMPTON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

21.


Related party transactions (continued)

2021
2020
£
£

Amounts due from controlling party


Unpaid share capital
100
100

2021
2020
£
£

Transactions with director related companies


Corporate Entertainment
11,790
1,580


22.


Post balance sheet events

On 24 February 2022 Russian Forces entered Ukraine, resulting in Western Nation reactions including announcements of sanctions against Russia and Russian interests worldwide and an economic ripple effect on the global economy. The directors have carried out an assessment of the potential impact of Russian Forces entering Ukraine on the business, including the impact of mitigation measures and uncertainties, and have concluded that this is a non-adjusting post balance sheet event with the greatest impact on the business expected to be from the economic ripple effect on the global economy.


23.


Parent undertaking and ultimate controlling party

The ultimate parent company is Seko Global Logistics Network, LLC (SGLN), a company incorporated in the United States of America.
The results of the Company are consolidated by the immediate parent company Seko Logistics Group Limited incorporated in England. The consolidated financial statements of Seko Logistics Group Limited are publicly available and may be obtained from Companies house.

Page 23