Registered number
04527156
SMS Towage Limited
Report and Financial Statements
31 March 2023
SMS Towage Limited
Report and Financial Statements
Contents
Page
Company Information 1
Strategic Report 2
Directors' Report 3
Statement of Directors' Responsibilities 4
Independent Auditor's Report 5
Income Statement 8
Statement of Comprehensive Income 9
Statement of Financial Position 10
Statement of Changes in Equity 11
Statement of Cash Flows 12
Notes to the Financial Statements 13
SMS Towage Limited
Company Information
Directors
P. Escreet
G. P. Escreet
A. Barry
S. Clarke
R. Burnett
Secretary
Mrs. C. A. Escreet
Auditors
Everson & Co. Limited
Francis House
Humber Place
The Marina
Hull
HU1 1UD
Bankers
Natwest
1 Humber Quays
Wellington Street West
Hull
HU1 1DG
Registered office
Francis House
Humber Place
The Marina
Hull
HU1 1UD
Registered number
04527156
SMS Towage Limited
Strategic Report
Review of the business
The company owns and operates a fleet of tugs which provide port towage services to shipping companies in various ports around the UK.
Despite reporting a loss, the directors are pleased with the performance of the company in the year which has seen strong growth in its port operations. The reasons for the loss include increases in interest rates and payroll costs. The company continues to invest in its fleet and has continued its programme of fleet upgrades in the year with the addition of three modern vessels in place of retired older vessels. The growth of our fleet also results in higher depreciation costs and the opportunity to have more managed drydocking identifying timely, but expensive remedial works.
The company is aware of its responsibility to reduce its output of CO2 and has invested significantly in on board vessel technology to monitor fuel consumption and engine performance in real-time. Other oil reduction investments have been made in ultra-filtration of engine oil to significantly extend time between oil changes and, in co-operation with port authorities, to replace onboard deck generators with onshore electrical power.
At the balance sheet date the company had net assets of amounting to £28,546,596, an increase of £3,248,316 from the previous year. The company remains in a strong financial position and this will enable the company to continue to follow the stategic path set out by the directors.
The key performance indicators of the company are turnover and the number of vessels being operated by the company. Turnover for the year has increased from £17,901,042 to £20,178,452. During the year the company operated 17 vessels compared to 18 for the previous year.
Whilst the company has made a loss for the year of £823,953, the increase in the value of the vessels has resulted in total comprehensive income for the year of £3,308,316.
Principal risks and uncertainties
The principal risk faced by the company would be a significant reduction in its business should the UK enter a deep recession that impacts port activity and hence the company’s revenues. The directors are alert to and would look to align the cost base to a significant reduction in business.
General inflation and interest rate rises have been a feature of the last financial year. Cost pressures within the company in most areas have been a challenge. The company has been able to partly mitigate the impact on its margins by raising tariffs. The fall in crude oil prices over the last year has been welcome. Fuel oil prices have fallen although they remain significantly above their pre-Covid levels.
Staff recruitment has remained a challenge throughout the year. Growth has required recruitment of additional support staff and the company faces the cost pressures associated with staff recruitment and retention. To mitigate this issue the company has invested significantly in new IT systems to support staff productivity and decision making.
This report was approved by the board on 5 October 2023 and signed on its behalf.
P. Escreet
Director
SMS Towage Limited
Registered number: 04527156
Directors' Report
The directors present their report and financial statements for the year ended 31 March 2023.
Principal activities
The company's principal activity during the year continued to be the provision of port towage services and offshore support work.
Dividends
An interim dividend of £60,000 was paid during the year (2022 - £60,000).
Events since the balance sheet date
On 11 January 2023 the company contracted for the purchase of a tug at a cost of £4,357,778. The vessel was delivered on 8 August 2023.
Directors
The following persons served as directors during the year:
P. Escreet
G. P. Escreet
A. Barry
S. Clarke
Disclosure of information to auditors
Each person who was a director at the time this report was approved confirms that:
so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board on 5 October 2023 and signed on its behalf.
P. Escreet
Director
SMS Towage Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 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 estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SMS Towage Limited
Independent Auditor's Report
to the member of SMS Towage Limited
Opinion
We have audited the financial statements of SMS Towage Limited for the year ended 31 March 2023 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows 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 the 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 March 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis of 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. 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 the 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.
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 directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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:
We made enquiries of directors as to the company's high-level policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged frauid. We also reviewed board minutes.
We performed procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risk that revenue is recorded in the wrong period and the risk that management may be in a position to make inappropriate accounting entries. These included identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commerical and sector experience and discussed with the directors the policies and procedures regarding compliance with laws and regulations.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.
Terence Fred Everson Jnr FCCA
(Senior Statutory Auditor) Francis House
for and on behalf of Humber Place
Everson & Co. Limited The Marina
Accountants and Statutory Auditors Hull
5 October 2023 HU1 1UD
SMS Towage Limited
Income Statement
for the year ended 31 March 2023
Notes 2023 2022
£ £
Turnover 3 20,178,452 17,901,042
Cost of sales (12,453,930) (10,045,012)
Gross profit 7,724,522 7,856,030
Administrative expenses (7,640,896) (6,508,382)
Other operating income - 76,680
Operating profit 4 83,626 1,424,328
Profit/(loss) on sale of fixed assets 120,533 (1,004)
Income from investments 250,000 166,500
Interest receivable - 1,144
Interest payable 7 (1,118,535) (534,720)
(Loss)/profit on ordinary activities before taxation (664,376) 1,056,248
Tax on (loss)/profit on ordinary activities 8 (159,577) (441,635)
(Loss)/profit for the financial year (823,953) 614,613
SMS Towage Limited
Statement of Comprehensive Income
for the year ended 31 March 2023
Notes 2023 2022
£ £
(Loss)/profit for the financial year (823,953) 614,613
Other comprehensive income
Gain on revaluation of vessels 9 4,911,876 4,492,503
Deferred taxation arising on the revaluation of vessels 16 (779,607) (769,740)
Total comprehensive income for the year 3,308,316 4,337,376
SMS Towage Limited
Statement of Financial Position
as at 31 March 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 9 51,294,623 43,140,170
Investments 10 673,727 673,727
51,968,350 43,813,897
Current assets
Stocks 11 530,994 502,969
Debtors 12 5,167,940 3,261,452
Cash at bank and in hand 1,877,267 3,010,020
7,576,201 6,774,441
Creditors: amounts falling due within one year 13 (4,218,888) (3,216,098)
Net current assets 3,357,313 3,558,343
Total assets less current liabilities 55,325,663 47,372,240
Creditors: amounts falling due after more than one year 14 (21,151,500) (17,226,000)
Provisions for liabilities
Deferred taxation 16 (5,627,567) (4,847,960)
Net assets 28,546,596 25,298,280
Capital and reserves
Called up share capital 17 500,000 500,000
Other reserves 18 17,146,488 16,306,162
Profit and loss account 19 10,900,108 8,492,118
Total equity 28,546,596 25,298,280
P. Escreet
Director
Approved by the board on 5 October 2023
SMS Towage Limited
Statement of Changes in Equity
for the year ended 31 March 2023
Share Other Profit Total
capital reserves and loss
account
£ £ £ £
At 1 April 2021 500,000 12,790,186 7,730,718 21,020,904
Profit for the financial year 614,613 614,613
Gain on revaluation of vessels 4,492,503 4,492,503
Deferred taxation arising on the revaluation of vessels (769,740) (769,740)
Other comprehensive income for the financial year - 3,722,763 - 3,722,763
Total comprehensive income for the financial year - 3,722,763 614,613 4,337,376
Dividends (60,000) (60,000)
Transfers (206,787) 206,787 -
At 31 March 2022 500,000 16,306,162 8,492,118 25,298,280
At 1 April 2022 500,000 16,306,162 8,492,118 25,298,280
Loss for the financial year (823,953) (823,953)
Gain on revaluation of vessels 4,911,876 4,911,876
Other comprehensive income for the financial year - 4,132,269 - 4,132,269
Total comprehensive income for the financial year - 4,132,269 (823,953) 3,308,316
Transfers (3,291,943) 3,291,943 -
At 31 March 2023 500,000 17,146,488 10,900,108 28,546,596
SMS Towage Limited
Statement of Cash Flows
for the year ended 31 March 2023
Notes 2023 2022
£ £
Operating activities
(Loss)/profit for the financial year (823,953) 614,613
Adjustments for:
(Profit)/loss on sale of fixed assets (120,533) 1,004
Income from investments (250,000) (166,500)
Interest receivable - (1,144)
Interest payable 1,118,535 534,720
Tax on (loss)/profit on ordinary activities 159,577 441,635
Depreciation 4,782,923 4,024,008
Increase in stocks (28,025) (289,529)
Increase in debtors (1,906,488) (53,660)
Increase/(decrease) in creditors 606,848 (365,036)
3,538,884 4,740,111
Dividends received 250,000 166,500
Interest received - 1,144
Interest paid (1,118,535) (530,415)
Interest element of finance lease payments - (4,305)
Corporation tax paid (441,635) -
Cash generated by operating activities 2,228,714 4,373,035
Investing activities
Payments to acquire tangible fixed assets (11,404,776) (3,625,784)
Proceeds from sale of tangible fixed assets 3,499,809 24,180
Cash used in investing activities (7,904,967) (3,601,604)
Financing activities
Equity dividends paid (60,000) (60,000)
Proceeds from new loans 6,780,000 22,545,200
Repayment of loans (2,176,500) (20,170,869)
Capital element of finance lease payments - (601,527)
Cash generated by financing activities 4,543,500 1,712,804
Net cash (used)/generated
Cash generated by operating activities 2,228,714 4,373,035
Cash used in investing activities (7,904,967) (3,601,604)
Cash generated by financing activities 4,543,500 1,712,804
Net cash (used)/generated (1,132,753) 2,484,235
Cash and cash equivalents at 1 April 3,010,020 525,785
Cash and cash equivalents at 31 March 1,877,267 3,010,020
Cash and cash equivalents comprise:
Cash at bank 1,877,267 3,010,020
SMS Towage Limited
Notes to the Accounts
for the year ended 31 March 2023
1 Summary of significant accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Vessels 10% straight line
Plant and machinery 15% reducing balance
Leasehold property improvements over the lease term
Motor vehicles 25% reducing balance
Investments
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.

At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Critical accounting estimates and judgements
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, 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:
Useful lives of plant and machinery and motor vehicles
The company estimates the useful lives of plant and machinery and motor vehicles based on the period over which the assets are expected to be available for use. The estimated useful lives of plant and machinery and motor vehicles are reviewed periodically and are updated in expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the relevant assets. In addition, the estimation of the useful lives of plant and machinery and motor vehicles are based on internal technical evaluation and experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of the property, plant and equipment would increase the recorded expenses and decrease the non-current assets.
Allowance for doubtful debts
The Company makes allowance for doubtful debts based on an assessment of the recoverability of receivables. Allowances are applied to receivables where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analysed historical bad debts, customer concentrations, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the allowance of doubtful debts of receivables. Where the expectation is different from the original estimate, such difference will impact the carrying value of receivables.
Allowance for inventories written down
Reviews are made periodically by management on damaged, obsolete and slowmoving inventories. These reviews require judgement and estimates. Possible changes in these estimates could result in revisions to the valuation of inventories.
3 Analysis of turnover 2023 2022
£ £
Services rendered 20,178,452 17,901,042
By geographical market:
UK 20,178,452 17,901,042
4 Operating profit 2023 2022
£ £
This is stated after charging:
Depreciation of owned fixed assets 4,782,923 4,024,008
Operating lease rentals - land and buildings 53,600 56,750
Auditors' remuneration for audit services 9,000 9,000
Auditors' remuneration for other services 400 1,190
Key management personnel compensation (including directors' emoluments) 218,638 222,111
5 Directors' emoluments 2023 2022
£ £
Emoluments 210,368 215,279
Company contributions to defined contribution pension plans 8,270 6,832
218,638 222,111
Highest paid director:
Emoluments 82,086 72,554
Number of directors to whom retirement benefits accrued: 2023 2022
Number Number
Defined contribution plans 2 2
6 Staff costs 2023 2022
£ £
Wages and salaries 1,235,921 1,109,013
Social security costs 135,768 118,402
Other pension costs 38,052 28,651
Direct labour - vessel crews 5,591,970 4,645,487
7,001,711 5,901,553
Average number of employees during the year Number Number
Administration 35 33
Crew 137 136
172 169
7 Interest payable 2023 2022
£ £
Bank loans and overdrafts 1,118,535 530,415
Finance charges payable under finance leases and hire purchase contracts - 4,305
1,118,535 534,720
8 Taxation 2023 2022
£ £
Analysis of charge in period
Current tax:
UK corporation tax on profits of the period 159,577 441,635
Tax on profit on ordinary activities 159,577 441,635
Factors affecting tax charge for period
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
2023 2022
£ £
(Loss)/profit on ordinary activities before tax (664,376) 1,056,248
Standard rate of corporation tax in the UK 19% 19%
£ £
Profit on ordinary activities multiplied by the standard rate of corporation tax (126,231) 200,687
Effects of:
Expenses not deductible for tax purposes (57,591) (58,716)
Depreciation for period in excess of capital allowances 343,399 266,604
Crystalisation of deferred gains - 33,060
Current tax charge for period 159,577 441,635
Factors that may affect future tax charges
It was proposed in the 2021 Budget that the corporation tax main rate will increase to 25% from 1 April 2023.
9 Tangible fixed assets
Vessels Plant and machinery Motor vehicles Total
At valuation At cost At cost
£ £ £ £
Cost or valuation
At 1 April 2022 42,864,078 255,002 327,290 43,446,370
Additions 11,112,678 171,624 120,474 11,404,776
Revaluation 421,114 - - 421,114
Disposals (3,539,206) - (58,879) (3,598,085)
At 31 March 2023 50,858,664 426,626 388,885 51,674,175
Depreciation
At 1 April 2022 - 182,690 123,510 306,200
Charge for the year 4,683,461 35,212 64,250 4,782,923
Revaluation (4,490,762) - - (4,490,762)
On disposals (192,699) - (26,110) (218,809)
At 31 March 2023 - 217,902 161,650 379,552
Carrying amount
At 31 March 2023 50,858,664 208,724 227,235 51,294,623
At 31 March 2022 42,864,078 72,312 203,780 43,140,170
2023 2022
£ £
Carrying amount of vessels on cost basis 27,360,949 20,970,878
The vessels were revalued at open market value as at 31 March 2023 by Offshore Shipbrokers Limited of of Artillery House, Lower Level, 35 Artillery Lane, London, E1 7LP.
10 Investments
Other
investments
£
Cost
At 1 April 2022 673,727
At 31 March 2023 673,727
The company holds 20% or more of the share capital of the following companies:
Capital and Profit (loss)
Company Shares held reserves for the year
Class % £ £
Belfast Towage Limited Ordinary 33 2,718,785 664,803
The registered office of Belfast Towage Limited is situated at Clarendon House, 23 Clarendon Road, Belfast, BT1 3BG.
11 Stocks 2023 2022
£ £
Raw materials and consumables 530,994 502,969
12 Debtors 2023 2022
£ £
Trade debtors 2,551,239 2,300,518
Other debtors 1,665,678 825,760
Prepayments and accrued income 951,023 135,174
5,167,940 3,261,452
13 Creditors: amounts falling due within one year 2023 2022
£ £
Bank loans 2,592,000 1,914,000
Trade creditors 1,205,939 652,469
Corporation tax 159,577 441,635
Other taxes and social security costs 7,034 7,953
Other creditors 77,587 52,963
Accruals and deferred income 176,751 147,078
4,218,888 3,216,098
14 Creditors: amounts falling due after one year 2023 2022
£ £
Bank loans 21,151,500 17,226,000
15 Loans 2023 2022
£ £
Analysis of maturity of debt:
Within one year or on demand 2,592,000 1,914,000
Between one and two years 2,592,000 1,914,000
Between two and five years 18,559,500 15,312,000
23,743,500 19,140,000
The bank loans are secured by mortgages secured on the vessels owned by the company and by a debenture provided by the company.
16 Deferred taxation 2023 2022
£ £
Revaluation of vessels 5,624,041 4,847,960
2023 2022
£ £
At 1 April 4,847,960 4,078,220
Charged to other comprehensive income 779,607 769,740
At 31 March 5,627,567 4,847,960
17 Share capital Nominal 2023 2023 2022
value Number £ £
Allotted, called up and fully paid:
Ordinary shares £1 each 500,000 500,000 500,000
18 Other reserves 2023 2022
Revaluation reserve £ £
At 1 April 16,306,162 12,790,186
Gain on revaluation of land and vessels 4,911,876 4,492,503
Deferred taxation arising on the revaluation of vessels (779,607) (769,740)
Transfer to profit and loss account (3,291,943) (206,787)
At 31 March 17,146,488 16,306,162
19 Profit and loss account 2023 2022
£ £
At 1 April 8,492,118 7,730,718
(Loss)/profit for the financial year (823,953) 614,613
Dividends (60,000) (60,000)
Transfer to profit and loss account 3,291,943 206,787
At 31 March 10,900,108 8,492,118
20 Dividends 2023 2022
£ £
Dividends on ordinary shares (note 19) 60,000 60,000
21 Events after the reporting date
On 11 January 2023 the company contracted for the purchase of a tug at a cost of £4,357,778. The vessel was delivered on 8 August 2023.
22 Capital commitments 2023 2022
£ £
Amounts contracted for but not provided in the accounts 4,357,778 3,748,000
23 Defined benefit pension plans
The company made contributions to defined contribtion pension schemes for directors, staff and crew amounting to £168,173 during the year (2022 - £112,394). The company expects to make contributions amounting to £170,000 during the year to 31 March 2024 however no provision has been made in relation to this commitment.
24 Contingent liabilities
The company has provided a guarantee to Danske Bank to secure the borrowings of Belfast Towage Limited, a company in which SMS Towage Limited holds an interest. The guarantee provided is in the amount of £675,000.
25 Related party transactions 2023 2022
£ £
SMS Towage (Bristol Channel) Limited
P. Escreet (Director) holds an interest in the company
Purchases from the related party - 118,894
Loan provided to related party 441,450 480,000
Amount due from (to) the related party 830,000 511,911
SMS Self Administered Pension Scheme
P. Escreet (Director) is a trustee of the scheme
Rent paid to related party 53,000 56,750
Amount due from (to) the related party 748 (476)
Belfast Towage Limited
SMS Towage Limited holds an interest in the company
Sales to the related party 759,378 847,999
Purchases from related party - 38,190
Amount due from (to) the related party 142,124 103,557
Redeemable preference shares held in related party 266,667 266,667
P. Escreet
P. Escreet (Director) holds an interest in the company
Dividends paid to related party 31,200 31,200
Amount due from (to) the related party (33,193) (27,427)
Mrs. C. A. Escreet
Mrs. C. A. Escreet (Secretary) held an interest in the company
Dividends paid to related party 28,800 28,800
26 Controlling party
The company was controlled throughout the financial year by Mr. P. Escreet.
27 Presentation currency
The financial statements are presented in Sterling rounded to the nearest Pound.
28 Legal form of entity and country of incorporation
SMS Towage Limited is a private company limited by shares and incorporated in England and Wales.
29 Principal place of business
The address of the company's principal place of business is:
Ocean House
Livingstone Road
Hessle
HU13 0EG
SMS Towage Limited 04527156 false 2022-04-01 2023-03-31 2023-03-31 VT Final Accounts April 2022 04527156 2021-04-01 2022-03-31 04527156 core:LandBuildings 2021-04-01 2022-03-31 04527156 core:OtherReservesSubtotal core:LandBuildings 2021-04-01 2022-03-31 04527156 core:OtherReservesSubtotal 2021-04-01 2022-03-31 04527156 core:ShareCapital 2021-04-01 2022-03-31 04527156 core:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 04527156 bus:AllOrdinaryShares core:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 04527156 1 2021-04-01 2022-03-31 04527156 countries:UnitedKingdom 2021-04-01 2022-03-31 04527156 core:OwnedAssets 2021-04-01 2022-03-31 04527156 core:LandBuildingsUnderOperatingLeases 2021-04-01 2022-03-31 04527156 bus:HighestPaidDirector 2021-04-01 2022-03-31 04527156 bus:OrdinaryShareClass1 2021-04-01 2022-03-31 04527156 core:RevaluationReserve core:LandBuildings 2021-04-01 2022-03-31 04527156 core:RevaluationReserve 2021-04-01 2022-03-31 04527156 core:WithinOneYear 2022-03-31 04527156 core:AfterOneYear 2022-03-31 04527156 core:ShareCapital 2022-03-31 04527156 core:OtherReservesSubtotal 2022-03-31 04527156 core:RetainedEarningsAccumulatedLosses 2022-03-31 04527156 core:BetweenOneTwoYears 2022-03-31 04527156 core:BetweenTwoFiveYears 2022-03-31 04527156 core:AllPeriods 2022-03-31 04527156 core:RevaluationPropertyDeferredTax 2022-03-31 04527156 2021-03-31 04527156 core:ShareCapital 2021-03-31 04527156 core:OtherReservesSubtotal 2021-03-31 04527156 core:RetainedEarningsAccumulatedLosses 2021-03-31 04527156 core:RevaluationReserve 2021-03-31 04527156 2022-04-01 2023-03-31 04527156 bus:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 04527156 bus:Audited 2022-04-01 2023-03-31 04527156 bus:Director1 2022-04-01 2023-03-31 04527156 bus:Director2 2022-04-01 2023-03-31 04527156 bus:Director3 2022-04-01 2023-03-31 04527156 bus:Director4 2022-04-01 2023-03-31 04527156 bus:Director5 2022-04-01 2023-03-31 04527156 bus:CompanySecretary1 2022-04-01 2023-03-31 04527156 1 2022-04-01 2023-03-31 04527156 core:LandBuildings 2022-04-01 2023-03-31 04527156 core:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 04527156 core:OtherReservesSubtotal core:LandBuildings 2022-04-01 2023-03-31 04527156 core:ShareCapital 2022-04-01 2023-03-31 04527156 core:OtherReservesSubtotal 2022-04-01 2023-03-31 04527156 1 2022-04-01 2023-03-31 04527156 1 2022-04-01 2023-03-31 04527156 2 2022-04-01 2023-03-31 04527156 countries:UnitedKingdom 2022-04-01 2023-03-31 04527156 core:OwnedAssets 2022-04-01 2023-03-31 04527156 core:LandBuildingsUnderOperatingLeases 2022-04-01 2023-03-31 04527156 bus:HighestPaidDirector 2022-04-01 2023-03-31 04527156 core:VehiclesPlantMachinery 2022-04-01 2023-03-31 04527156 core:FurnitureFittingsToolsEquipment 2022-04-01 2023-03-31 04527156 core:Associate1 2022-04-01 2023-03-31 04527156 core:Associate1 1 2022-04-01 2023-03-31 04527156 bus:OrdinaryShareClass1 2022-04-01 2023-03-31 04527156 core:RevaluationReserve core:LandBuildings 2022-04-01 2023-03-31 04527156 core:RevaluationReserve 2022-04-01 2023-03-31 04527156 bus:AllOrdinaryShares core:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 04527156 countries:England 2022-04-01 2023-03-31 04527156 bus:FRS102 2022-04-01 2023-03-31 04527156 bus:FullAccounts 2022-04-01 2023-03-31 04527156 2023-03-31 04527156 core:WithinOneYear 2023-03-31 04527156 core:AfterOneYear 2023-03-31 04527156 core:ShareCapital 2023-03-31 04527156 core:OtherReservesSubtotal 2023-03-31 04527156 core:RetainedEarningsAccumulatedLosses 2023-03-31 04527156 core:LandBuildings 2023-03-31 04527156 core:VehiclesPlantMachinery 2023-03-31 04527156 core:FurnitureFittingsToolsEquipment 2023-03-31 04527156 core:Associate1 2023-03-31 04527156 core:BetweenOneTwoYears 2023-03-31 04527156 core:BetweenTwoFiveYears 2023-03-31 04527156 core:AllPeriods 2023-03-31 04527156 core:RevaluationPropertyDeferredTax 2023-03-31 04527156 bus:OrdinaryShareClass1 2023-03-31 04527156 core:RevaluationReserve 2023-03-31 04527156 2022-03-31 04527156 core:LandBuildings 2022-03-31 04527156 core:VehiclesPlantMachinery 2022-03-31 04527156 core:FurnitureFittingsToolsEquipment 2022-03-31 04527156 core:RevaluationReserve 2022-03-31 iso4217:GBP iso4217:GBP xbrli:shares xbrli:pure xbrli:shares