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Registered number: 10374162














GRAFTON COMMODITY TRADING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

 
GRAFTON COMMODITY TRADING LIMITED
 
 
COMPANY INFORMATION


Directors
T Baldwin 
B Sciortino 




Registered number
10374162



Registered office
26-28 Ely Place

London

England

EC1N 6TD




Independent auditors
Sopher + Co LLP
Chartered Accountants & Statutory Auditors

5 Elstree Gate

Elstree Way

Borehamwood

Hertfordshire

WD6 1JD





 
GRAFTON COMMODITY TRADING LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Consolidated Statement of Comprehensive Income
 
9
Consolidated Statement of Financial Position
 
10 - 11
Company Statement of Financial Position
 
12
Consolidated Statement of Changes in Equity
 
13 - 14
Company Statement of Changes in Equity
 
15
Consolidated Statement of Cash Flows
 
16 - 17
Consolidated Analysis of Net Debt
 
18
Notes to the Financial Statements
 
19 - 37


 
GRAFTON COMMODITY TRADING LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Introduction
 
The directors presents their strategic report for the year ended 30 September 2023.

Business review
 
The main business of Grafton Commodity Trading (the "Company") is to speculate on the future price of commodities, currencies, equities, and bonds primarily using cash or derivative contracts. Additionally, the Company operates a commodity logistics and storage business through its Grafton Warehouse Services and Grafton Logistics Services subsidiaries.
The Group's performance overall showed growth within the subsidiary companies but was challenging for Grafton Commodity Trading Ltd.
The trading division's performance was less successful as traders found it challenging to gauge the various inputs that go into determining market prices. These being supply and demand, liquidity, volatility, market positioning, inflationary environment, changes to fiscal and monetary policy, the continued war in Ukraine and the overall political climate. There has been no change in strategy and risk management will continue to be paramount within the trading business. Despite these challenges the business maintains a strong balance sheet and is developing a European Power and Gas trading desk and developing its own risk management system.
The warehousing division continued to serve clients at its storage hubs in both Europe and Asia. Demand for storage decreased throughout 2023 as the stocks of base metals fell across the year as global demand outstripped supply which meant there was less inventory in the LME network with there being a structural shortage of metal within the network. Expansion into CME licenced warehousing, and the development of a wider logistics offering are a continued focus. This resulted in a drop in turnover from $12.8M to $3.7M.
The logistics division has continued to develop its market presence revenue increased to $3.27M (2022 $1.16M).

Page 1

 
GRAFTON COMMODITY TRADING LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Principal risks and uncertainties
 
The assessment of risks faced by the Company and the development of strategies for dealing with these risks is achieved on an ongoing basis through the way in which the company is controlled and managed. The risk management process seeks to enable the early identification, evaluation and effective management of the key risks facing the business at an operational level and to operate internal controls, which adequately mitigate these risks. The company regularly assesses its risk management activities to ensure good practice in all areas.
The principal risk the Company faces is an incorrect assessment of market conditions resulting in a loss of equity capital due to unprofitable trading positions. The Company has no outstanding debt and has no current plans to take on debt.
Over the entirety of its history, the Company has produced a return on equity capital that is satisfactory given the risk level of the underlying business. The Company is aware that short term returns can be volatile and may be negative over an extended period of time, but believes that it will be able to keep providing acceptable risk adjusted returns over time.
The metric that the Company uses to gauge success is return on equity.
The director considers that the principal risks and uncertainty to the business relate to its ability to continue to balance the risk profile for the investments, managing and diversify the group's trading activities.
The activities of the Company are under the control of the Directors, who ensure there are effective systems and controls in place lo identify, monitor and manage risks arising in the business.
The management monitors risk exposure through several internal IT systems. The management believes that the continuous review and monitoring of risk promotes a strict risk control cultural within the organisation.

Financial risks management
 
The activities of the Company are under the control of the Directors, who ensure there are effective systems and controls in place lo identify, monitor and manage risks arising in the business.
The management monitors risk exposure through several internal IT systems. The management believes that the continuous review and monitoring of risk promotes a strict risk control cultural within the organisation.

Financial key performance indicators

The directors consider the operating profit or loss of the Company as the key performance indicator as set out in the Statement of Comprehensive Income on page 9.

Other key performance indicators
 
The directors consider the other key performance indicator of the business to be sales volume in the subsidiary undertakings.


This report was approved by the board on 28 March 2024 and signed on its behalf.



T Baldwin
Director

Page 2

 
GRAFTON COMMODITY TRADING LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors present their report and the financial statements for the year ended 30 September 2023.

Directors

The directors who served during the year were:

T Baldwin 
M Cencioni (resigned 21 February 2023)
P Lombardi (resigned 21 February 2023)
B Sciortino 

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 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 financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


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

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Results and dividends

The loss for the year, after taxation, amounted to $7,051,211 (2022 - loss $3,118,903).

The results for the year are set out on page 9, a review of business is included in the Strategic Report.
No dividend was paid during the year (2022 - $NIL)

Future developments

The Company plans to opportunistically add revenue generating traders in the future, expanding its expertise into areas such as electricity, natural gas, crude oil and oil products.  Additionally, the Company plans to further invest in its warehouse and logistics businesses depending on market conditions.  

Page 3

 
GRAFTON COMMODITY TRADING LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Disclosure of information to auditors

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 and the Group's auditors are 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 and the Group's auditors are aware of that information.

After date events

There have been no significant events affecting the Group since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Sopher + Co LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 28 March 2024 and signed on its behalf.
 





T Baldwin
Director

Page 4

 
GRAFTON COMMODITY TRADING LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRAFTON COMMODITY TRADING LIMITED
 

Opinion


We have audited the financial statements of Grafton Commodity Trading Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2023, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 30 September 2023 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.


Page 5

 
GRAFTON COMMODITY TRADING LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRAFTON COMMODITY TRADING LIMITED (CONTINUED)

Other information


The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.


In connection with our audit of the financial statementsour responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.


Opinion 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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 set out on page 3, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 6

 
GRAFTON COMMODITY TRADING LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRAFTON COMMODITY TRADING LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the commodity trading,  warehousing and logistics sectors; 
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and 
understanding the design of the Company’s remuneration policies. 

To address the risk of fraud through management bias and override of controls, we: 
 
performed analytical procedures to identify any unusual or unexpected relationships; 
tested journal entries to identify unusual transactions; 
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 
investigated the rationale behind significant or unusual transactions. 
Page 7

 
GRAFTON COMMODITY TRADING LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRAFTON COMMODITY TRADING LIMITED (CONTINUED)


In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 
 
agreeing financial statement disclosures to underlying supporting documentation; 
reading the minutes of meetings of those charged with governance; 
enquiring of management as to actual and potential litigation and claims; and 
reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors. 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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 Auditors' 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 2006Our 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 Auditors' 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.





Stephen Iseman FCA (Senior Statutory Auditor)
  
for and on behalf of
Sopher + Co LLP
 
Chartered Accountants
Statutory Auditors
  
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD

28 March 2024
Page 8

 
GRAFTON COMMODITY TRADING LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
Note
$
$

  

Turnover
  
4,241,808
12,792,838

Cost of sales
  
(8,173,174)
(10,736,759)

Gross (loss)/profit
  
(3,931,366)
2,056,079

Distribution costs
  
-
(272,009)

Administrative expenses
  
(3,602,640)
(4,931,683)

Other operating income
 5 
116,745
109,895

Operating loss
 6 
(7,417,261)
(3,037,718)

Interest receivable and similar income
 10 
408,936
15,232

Interest payable and similar expenses
 11 
(250)
(275,881)

Loss before taxation
  
(7,008,575)
(3,298,367)

Tax on loss
 12 
(42,636)
179,464

Loss for the financial year
  
(7,051,211)
(3,118,903)

  

Currency translation differences
  
(63,495)
(502,345)

Movement on other reserve
  
(8,526)
(128,054)

Other comprehensive income for the year
  
(72,021)
(630,399)

Total comprehensive income for the year
  
(7,123,232)
(3,749,302)

(Loss) for the year attributable to:
  

Owners of the parent Company
  
(7,051,211)
(3,118,903)

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
(7,123,232)
(3,749,302)

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

The notes on pages 19 to 37 form part of these financial statements.

Page 9

 
GRAFTON COMMODITY TRADING LIMITED
REGISTERED NUMBER:10374162

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023

2023
2022
Note
$
$

Fixed assets
  

Intangible assets
 13 
-
7,040

Tangible assets
 14 
8,556
15,813

  
8,556
22,853

Current assets
  

Debtors due within 1 year
  
2,863,207
1,262,472

Debtors due after more than 1 year
  
-
325,517

Current asset investments
 17 
34,267,222
38,656,722

Cash at bank and in hand
 18 
2,284,529
7,077,971

Current liabilities
  
39,414,958
47,322,682

Creditors: amounts falling due within one year
 19 
(1,365,558)
(2,162,247)

Net current assets
  
 
 
38,049,400
 
 
45,160,435

Total assets less current liabilities
  
38,057,956
45,183,288

Provisions for liabilities
  

Deferred tax
  
(347)
(2,464)

Net assets
  
38,057,609
45,180,824


Capital and reserves
  

Called up share capital 
 22 
8,381,998
8,381,998

Share premium account
 23 
605,386
605,386

Capital redemption reserve
 23 
3,012,611
3,012,611

Other reserves
  
427,925
436,451

Profit and loss account
 23 
25,629,672
32,744,378

Equity attributable to owners of the parent Company
  
38,057,592
45,180,824

Non-controlling interests
  
17
-

  
38,057,609
45,180,824


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 March 2024.




T Baldwin
Director

The notes on pages 19 to 37 form part of these financial statements.
Page 10

 
GRAFTON COMMODITY TRADING LIMITED
REGISTERED NUMBER:10374162
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2023


Page 11

 
GRAFTON COMMODITY TRADING LIMITED
REGISTERED NUMBER:10374162

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023

2023
2022
Note
$
$

Fixed assets
  

Tangible assets
 14 
3,033
6,812

Investments
 15 
2,100,284
2,100,201

  
2,103,317
2,107,013

Current assets
  

Debtors
 16 
5,436,960
3,745,588

Current asset investments
 17 
31,133,456
35,423,665

Cash at bank and in hand
 18 
123,503
3,054,204

  
36,693,919
42,223,457

Current liabilities
  

Creditors: amounts falling due within one year
 19 
(2,774,867)
(1,597,407)

Net current assets
  
 
 
33,919,052
 
 
40,626,050

  

  

Net assets
  
36,022,369
42,733,063


Capital and reserves
  

Called up share capital 
 22 
8,381,998
8,381,998

Share premium account
 23 
605,386
605,386

Capital redemption reserve
 23 
3,012,611
3,012,611

Profit and loss account
 23 
24,022,374
30,733,068

  
36,022,369
42,733,063


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 March 2024.




T Baldwin
Director

The notes on pages 19 to 37 form part of these financial statements.

Page 12

 

GRAFTON COMMODITY TRADING LIMITED
 
 
 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023



Called up share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


$
$
$
$
$
$
$
$


At 1 October 2022
8,381,998
605,386
3,012,611
436,451
32,744,378
45,180,824
-
45,180,824





Loss for the year
-
-
-
-
(7,051,211)
(7,051,211)
-
(7,051,211)


Currency translation differences
-
-
-
-
(63,495)
(63,495)
-
(63,495)


Other movement
-
-
-
(8,526)
-
(8,526)
-
(8,526)


Share capital issued to non controlling interests in subsidiaries
-
-
-
-
-
-
17
17



At 30 September 2023
8,381,998
605,386
3,012,611
427,925
25,629,672
38,057,592
17
38,057,609



The notes on pages 19 to 37 form part of these financial statements.

Page 13

 

GRAFTON COMMODITY TRADING LIMITED
 
 
 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022



Called up share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Total equity


$
$
$
$
$
$
$


At 1 October 2021
11,394,609
605,386
-
564,505
51,311,291
63,875,791
63,875,791





Loss for the year
-
-
-
-
(3,118,903)
(3,118,903)
(3,118,903)


Currency translation differences
-
-
-
-
(502,345)
(502,345)
(502,345)


Transfer to/from profit and loss account
-
-
-
(128,054)
-
(128,054)
(128,054)


Purchase of own shares
-
-
3,012,611
-
(15,073,719)
(12,061,108)
(12,061,108)


Shares cancelled during the year
(3,012,611)
-
-
-
-
(3,012,611)
(3,012,611)


Transfer to/from other reserves
-
-
-
-
128,054
128,054
128,054



At 30 September 2022
8,381,998
605,386
3,012,611
436,451
32,744,378
45,180,824
45,180,824



The notes on pages 19 to 37 form part of these financial statements.

Page 14

 

GRAFTON COMMODITY TRADING LIMITED
 
 
 


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023



Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity


$
$
$
$
$



At 1 October 2021
11,394,609
605,386
-
47,910,348
59,910,343





Loss for the year
-
-
-
(2,103,561)
(2,103,561)



Contributions by and distributions to owners


Purchase of own shares
-
-
3,012,611
(15,073,719)
(12,061,108)


Shares cancelled during the year
(3,012,611)
-
-
-
(3,012,611)





At 1 October 2022
8,381,998
605,386
3,012,611
30,733,068
42,733,063





Loss for the year
-
-
-
(6,710,694)
(6,710,694)



At 30 September 2023
8,381,998
605,386
3,012,611
24,022,374
36,022,369



The notes on pages 19 to 37 form part of these financial statements.

Page 15

 
GRAFTON COMMODITY TRADING LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
$
$

Cash flows from operating activities

Loss for the financial year
(7,051,211)
(3,118,903)

Adjustments for:

Amortisation of intangible assets
7,040
34,473

Depreciation of tangible assets
11,594
37,506

Interest paid
250
275,881

Interest received
(408,936)
(15,232)

Taxation charge
42,636
(179,464)

(Increase)/decrease in debtors
(1,275,219)
880,111

Decrease in amounts owed by participating ints
-
1,840,000

Decrease in creditors
(757,159)
(17,834,401)

Corporation tax paid
(77,240)
(9,787,080)

Foreign exchange difference
(72,021)
(502,345)

Net cash used in operating activities

(9,580,266)
(28,369,454)


Cash flows from investing activities

Purchase of tangible fixed assets
(4,337)
(9,764)

Purchase of short-term listed investments
4,389,500
31,852,024

Interest received
408,936
15,232

Receipt of share issue from NCI
17
-

Net cash from investing activities

4,794,116
31,857,492

Cash flows from financing activities

Interest paid
(250)
(275,881)

Purchase of own shares
-
(15,073,719)

Net cash used in financing activities
(250)
(15,349,600)

Net (decrease) in cash and cash equivalents
(4,786,400)
(11,861,562)

Cash and cash equivalents at beginning of year
7,070,929
18,932,491

Cash and cash equivalents at the end of year
2,284,529
7,070,929


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,284,529
7,077,971

Bank overdrafts
-
(7,042)

2,284,529
7,070,929

Page 16

 
GRAFTON COMMODITY TRADING LIMITED
 
The notes on pages 19 to 37 form part of these financial statements.

Page 17

 
GRAFTON COMMODITY TRADING LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2023




At 1 October 2022
Cash flows
At 30 September 2023
$

$

$

Cash at bank and in hand

7,077,971

(4,793,443)

2,284,528

Bank overdrafts

(7,042)

7,042

-

Debt due within 1 year

(3,048)

-

(3,048)

Liquid investments

38,656,722

(4,389,500)

34,267,222


45,724,603
(9,175,901)
36,548,702

The notes on pages 19 to 37 form part of these financial statements.

Page 18

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.


General information

Grafton Commodity Trading Limited is a private limited liability company registered in England and Wales, with its principal place of business and its registered office address at 26-28 Ely Place, London, England, EC1N 6TD.
The Group's principal activities during the year continued to be that of trading commodity contracts, warehousing and logistic services.

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 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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 19

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is $ USD Dollar.

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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

On consolidation, the results of overseas operations are translated into Dollars at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.  

The Group's revenue comprises the following:
• Execution and clearing commissions, which are recognised on a trade date basis;
• Broking and foreign exchange trading activity where the company acts as principal, which is typically recognised on a fair value basis whereby movements in fair values of the position is recognised in the income statement;
• Service facilities and market data fees which are recognised on an accruals basis; and 
• Net interest directly relating to the trading activities of the company which is recognised on an accruals basis.
• Dividend income and capital distributions which are recognised in the period to which they relate.
• Rental income is recognised in the period to which it relates. Rental income received in advance is carried forward as deferred income.
• Freight handling and logistics charges are recognised when the service is fulfilled.
The financial instruments held for trading purposes are fair valued and subsequent gains and losses are recognised in the income statement.

Page 20

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss 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.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. 
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

Pensions

Defined contribution pension plan
The Group contributes to defined contribution plans for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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 reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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 reporting date.

 
2.12

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.13

Tangible fixed assets

Tangible fixed 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.

Page 22

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)


2.13
Tangible fixed assets (continued)

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:

Plant and machinery
-
Straight line
Fixtures and fittings
-
Straight line
Office equipment
-
Straight line
Computer equipment
-
Straight line

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 profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in current financial assets are remeasured to market value at each Statement of Financial Position date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.15

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.

 
2.16

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.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.17

Creditors

Short-term creditors are measured at the transaction price.

Page 23

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.19

Financial instruments

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Page 24

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)


2.19
Financial instruments (continued)


Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the directors have made judgments to determine the fair value of  investments in subsidiaries and of current assets investments. Factors taken into consideration in reaching such decisions include the performance of the subsidiary undertakings and future financial performance of the asset.

Page 25

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

4.


Turnover

An analysis of turnover as follows:

2023
2022
$
$
By class of business:
Investment

(3,632,702)

1,540,929
 
Warehousing

4,603,088

10,094,613
 
Logistics

3,271,422

1,157,296
 

4,241,808

12,792,838
 
By country of destination
United Kingdom

(3,501,558)

2,646,290
 
Rest of Europe

1,849,498

3,461,463
 
Rest of the world

5,893,868

6,685,085
 
4,241,808

12,792,838
 


5.


Other operating income

2023
2022
$
$

Government grants receivable
67,734
74,682

Fee receivable
49,011
49,597

Hedging loss
-
(14,384)

116,745
109,895



6.


Operating loss

The operating loss is stated after charging:

2023
2022
$
$

Operating lease rentals
1,088,605
2,358,869

Exchange differences
99,870
85,261

Depreciation and amortisation
18,634
71,979

970,101
2,201,629

Page 26

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

7.


Auditors' remuneration

2023
2022
$
$



Audit of the financial statements of the Group and company
49,810
18,000


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
$
$
$
$

Wages and salaries
1,329,152
1,189,059
558,891
947,245

Social security costs
163,863
142,118
149,523
125,742

Cost of defined contribution scheme
25,562
25,750
11,500
12,451

1,518,577
1,356,927
719,914
1,085,438


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Staff
14
18
9
11


9.


Directors' and key management remuneration

2023
2022
$
$

Directors' emoluments
147,739
154,257



10.


Interest receivable

2023
2022
$
$


Other interest receivable
408,936
15,232

Page 27

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

11.


Interest payable and similar expenses

2023
2022
$
$


Bank interest payable
250
-

Loan interest payable
-
187,081

Other interest payable
-
88,800

250
275,881


12.


Taxation


2023
2022
$
$

Corporation tax


Current tax on profits for the year
36,593
75,732

Adjustments in respect of previous periods
(3,421)
-

33,172
75,732

Foreign tax


Foreign tax on income for the year
11,581
(242,577)

Total current tax
44,753
(166,845)

Deferred tax


Origination and reversal of timing differences
(2,117)
(12,619)


Taxation on profit/(loss) on ordinary activities
42,636
(179,464)
Page 28

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the composite (2022 - standard) rate of corporation tax in the UK of 22% (2022 - 19%). The differences are explained below:

2023
2022
$
$


Loss on ordinary activities before tax
(7,008,575)
(3,298,367)


(Loss)/profit on ordinary activities multiplied by the composite (2022 - standard) rate of corporation tax in the UK of 22% (2022 - 19%)
(1,542,587)
(626,690)

Effects of:


Expenses not deductible for tax purposes
6,209
4,415

Difference between capital allowances and depreciation
3,380
11,984

Utilisation of tax losses
(43,873)
8,157

Higher rate taxes on overseas earnings
-
37,069

Other timing differences leading to an increase /(decrease) in taxation
173
(44)

Non-taxable dividends from UK companies
(85,829)
(220,725)

Unrelieved tax losses carried forward
1,558,603
618,989

Unrelieved loss on foreign tax
152,098
-

Prior year adjustment
(3,421)
-

Movement on deferred tax
(2,117)
(12,619)

Total tax charge for the year
42,636
(179,464)


Factors that may affect future tax charges

At the year end, the Company had losses of $10,351,083 (2022 - $3,259,753) available to carry forward and use against future taxable profits. No deferred tax asset has been provided in respect of these losses in view of uncertainty as to when they may be fully utilised.

Page 29

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.


Intangible assets

Group and Company





Computer software

$



Cost


At 1 October 2022
68,946



At 30 September 2023

68,946



Amortisation


At 1 October 2022
61,906


Charge for the year on owned assets
7,040



At 30 September 2023

68,946



Net book value



At 30 September 2023
-



At 30 September 2022
7,040



Page 30

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

14.


Tangible fixed assets

Group






Plant and machinery
Fixtures and fittings
Office equipment
Computer equipment
Total

$
$
$
$
$



Cost


At 1 October 2022
65,066
8,997
16,753
6,553
97,369


Additions
-
-
3,190
1,147
4,337



At 30 September 2023

65,066
8,997
19,943
7,700
101,706



Depreciation


At 1 October 2022
59,727
7,911
11,027
2,891
81,556


Charge for the year on owned assets
5,339
655
3,301
2,299
11,594



At 30 September 2023

65,066
8,566
14,328
5,190
93,150



Net book value



At 30 September 2023
-
431
5,615
2,510
8,556



At 30 September 2022
5,339
1,086
5,726
3,662
15,813

Page 31

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

           14.Tangible fixed assets (continued)


Company






Fixtures and fittings
Office equipment
Total

$
$
$

Cost


At 1 October 2022
8,997
16,753
25,750



At 30 September 2023

8,997
16,753
25,750



Depreciation


At 1 October 2022
7,911
11,027
18,938


Charge for the year on owned assets
655
3,124
3,779



At 30 September 2023

8,566
14,151
22,717



Net book value



At 30 September 2023
431
2,602
3,033



At 30 September 2022
1,086
5,726
6,812







15.


Fixed asset investments

Company





Investments in subsidiary companies

$



Cost


At 1 October 2022
2,100,201


Additions
83



At 30 September 2023
2,100,284




Page 32

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Grafton Trading (Shanghai) Co. Ltd
Suite 339, 620 Puijan Road, Shanghai, China
Ordinary
100%
Grafton Warehouse Services (UK) Ltd
26-28 Ely Place, London, England, EC1N 6TD
Ordinary
100%
Grafton Warehouse Services (US) LLC
251 Little Falls Drive, Wilmington, 19808, Delaware
Ordinary
100%
Grafton Logistics Services (Singapore) Ltd
18 Robinson Road, #16-01 18 Robinson, Singapore 048547
Ordinary
100%
Grafton Carbon Ltd
26-28 Ely Place, London, England, EC1N 6TD
Ordinary
83%

Grafton Carbon Ltd was incorporated in September 2023. As at the reporting date it had not commenced trading and was dormant. As such it is exempt from the requirement to prepare individual accounts by virtue of section 394A of the Companies Act 2006.

16.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
$
$
$
$

Due after more than one year

Other debtors
-
325,517
-
-

Due within one year

Trade debtors
856,075
244,952
-
-

Amounts owed by group undertakings
-
-
4,019,528
3,310,083

Other debtors
1,632,147
480,263
1,366,968
389,025

Prepayments and accrued income
374,985
537,256
50,464
46,480

2,863,207
1,587,988
5,436,960
3,745,588



17.


Current asset investments

Group
Group
Company
Company
2023
2022
2023
2022
$
$
$
$

Listed investments
34,267,222
38,656,722
31,133,456
35,423,665


Page 33

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

18.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
$
$
$
$

Cash at bank and in hand
2,284,529
7,077,971
123,503
3,054,204

Less: bank overdrafts
-
(7,042)
-
(7,042)

2,284,529
7,070,929
123,503
3,047,162



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
$
$
$
$

Bank overdrafts
-
7,042
-
7,042

Trade creditors
849,038
1,600,877
164,500
1,279,604

Amounts owed to group undertakings
-
-
2,350,000
100,000

Corporation tax
49,235
81,722
-
4,139

Other taxation and social security
58,175
59,187
54,806
56,576

Other creditors
116,174
55,843
3,049
3,048

Accruals and deferred income
292,936
357,576
202,512
146,998

1,365,558
2,162,247
2,774,867
1,597,407


Page 34

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

20.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
$
$
$
$

Financial assets

Financial assets measured at fair value through profit or loss
34,267,222
38,656,722
31,133,456
35,423,665

Debt instruments measured at amortised cost
-
725,215
-
3,699,108

34,267,222
39,381,937
31,133,456
39,122,773


Financial liabilities

Measured at amortised cost
1,353,255
2,014,300
2,720,439
1,529,650


Financial assets measured at fair value through profit or loss comprise current asset investments.

Financial assets that are debt instruments measured at amortised cost comprise trade and other debtors and amounts receivable from both group undertakings and related parties.


Financial liabilities measured at amortised cost comprise trade and other creditors, accruals, amounts receivable by both group undertakings and related parties.


21.


Deferred taxation


Group



2023


$



At beginning of year
2,464


Released to Statement of Comprehensive Income
(2,117)



At end of year
347

Group
Group
2023
2022
$
$

Accelerated capital allowances
347
2,464




Page 35

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

22.


Share capital

2023
2022
$
$
Allotted, called up and fully paid



8,381,998 (2022 - 8,381,998) Ordinary shares of $1.00 each
8,381,998
8,381,998



23.


Reserves

Share premium account

The share premium reserve represents the premium arising on issue of equity shares, less transaction costs.

Capital redemption reserve

This reserve arises from a buyback of the Company's own shares and represents the nominal value of those shares.

Other reserves

Other reserves represents the legal requirement for the reserve related to a subsidiary undertaking.

Profit and loss account

The profit and loss reserve represents the cumulative balance of retained profit and losses including fair value movements to date. All of the profit and loss reserve is distributable.


24.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to $11,500 (2022 - $12,451). Contributions totaling $3,049 (2022 - $3,048) were payable to the fund at the reporting date and are included in creditors.


25.


Commitments under operating leases

At 30 September 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
$
$
$
$

Not later than 1 year
408,573
542,325
169,550
213,739

Later than 1 year and not later than 5 years
307,488
585,653
307,488
585,653

716,061
1,127,978
477,038
799,392

Page 36

 
GRAFTON COMMODITY TRADING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

26.


Related party transactions

The Group has taken advantage of the exemption under FRS 102 33.1A Related Party Disclosures not to disclose transactions entered into between two or more members of a group, provided that any subsidiary undertaking which is a party to the transaction is wholly owned by a member of that group.


27.


Controlling party

The Company is a subsidiary of Spelugues Investments LLC, a company registered in Delaware, USA, which the directors regard as the ultimate parent company. The directors consider the ultimate controlling party to be B Sciortino, a director, who owns 100% share capital of Spelugues Investments LLC.

 
Page 37