Company registration number 01060736 (England and Wales)
SEABOURNE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
SEABOURNE GROUP LIMITED
COMPANY INFORMATION
Directors
D J Flitterman
Lady J H Bourne
P Levtcheva
Secretary
D J Flitterman
Company number
01060736
Registered office
Gardiner House
6b Hemnall Street
Epping
Essex
CM16 4LW
Auditor
Bright Grahame Murray
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
SEABOURNE GROUP LIMITED
CONTENTSfalse
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
16
Notes to the financial statements
17 - 34
SEABOURNE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the year ended 30 June 2023.

Review of the business

The group's activities during the year continued to be those of international and domestic courier services, freight forwarding services, third party logistics, mailing and distribution services.

 

The key financial and other performance indicators during the year were as follows:-

2023     2022     Change

                             £000’s     £000’s         %

        

Turnover                            60,501        56,139         +7.8%    

Group operating profit before exceptional items          3,094        3,454         -10.4%

Equity Shareholders’ funds                     4,100        4,705         -12.9%

Quick ratio                        121%        130%         -6.9%

Average number of employees                570        448         +27.2%

 

In addition to these Seabourne Group also have the following non financial KPI's:

 

Despite being a challenging and difficult year due to the continuing war in Ukraine and economic uncertainty Group turnover increased by £4.4M (7.8%) which led to increase in Gross Profit by 13%. Operating profits fell to £3.1M, falling by 10.4% compared to last year at £3.4M.

 

The group saw continued growth in the South African, UK and Dutch subsidiaries.

 

The total number of employees across the Group increased by 27% due to revenue growth.

 

The Directors remain confident that this profitable position can be maintained during 2023/2024 along with the dividend policy.

 

The net asset value of the Group was maintained after payment of corporation tax leaving the Group with a strong Balance Sheet and cash resources of £2.4m.

 

The Group’s “quick ratio” (current assets as a percentage of current liabilities) decreased from 130% to 121% reflecting the Group’s payment of dividends in the year which reduced cash reserves.

 

Since the Group does not manufacture products, there is minimal environmental impact. However, the Group does give consideration to such factors when selecting suppliers and also attempts to recycle as much waste product as possible.

 

SEABOURNE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Principal risks and uncertainties

The Group Board meets regularly and considers and discusses all risks and uncertainties facing the Group across the world. Such risks are categorised as competitive, legislative and financial.

 

Competitive risks

Each subsidiary maintains a diverse range of customers across many industries so it is not exposed to a single sector. Competition can be keen in all areas and the Group prides itself on its high level of customer service. Very few sales contracts exist in the Group so revenue is always exposed to potential fluctuations.

 

Legislative risk

The Group perceives a very low risk where legislation is concerned as it is primarily a service provider.

 

Financial instrument risks

The Group has established a risk and financial management framework whose primary objectives are to protect the Group from events that hinder the achievement of the Group’s performance objectives. The objectives aim to ensure sufficient working capital exists and monitor the management of risk at a business unit level.

Exposure to credit, liquidity and cash flow risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Group policies are aimed at minimising such losses and require that deferred terms are only granted to customers who demonstrate an appropriate and significantly long payment history and who satisfy credit worthiness procedures. Details of the Group’s debtors are shown in Note 16 to the financial statements. At the balance sheet date, no single trade debtor exceeded 5% of total debt. In extreme circumstances, the Group relies upon its Credit insurance policy.

Liquidity risk is the risk that an entity will encounter difficulty in meeting its obligations associated with financial liabilities. The Group aims to mitigate liquidity risk by managing cash generation by its operations, applying cash collection targets throughout the Group. By having no significant stock levels, the liquidity risk is reduced.

Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments. The group manages such a risk which is minimal by ensuring adequate banking facilities exist which are not used in the normal course of business.

Statement by the Director in performance of their statutory duties in accordance with s172(1) Companies Act 2006
Our People

People are a key factor for our business to succeed. We are proud of the average length of service of our employees. We intend to retain people for the long term and our recruitment strategy is based on offering long careers in fairly paid and stable jobs.

We encourage our employees to have both fulfilling careers and balanced lives. We look to our employees to contribute ideas for our future growth, and share the rewards of the business where we are profitable, primarily through our discretionary annual bonus scheme.

Business Relationships

We value long term relationships with our suppliers and customers and many of our relationships span years and some span decades. We employ robust "know your customer" and "know your supplier" processes across our operations, and we are typically cautious when entering into new relationships. We ensure compliance with the most up to date ESR (Essential Safety Requirements) standards required by the industries in which we operate.

Community, Environment, Reputation

We believe that a positive and strong culture is the best way to ensure a high level of professional conduct when it comes to health and safety, environment, regulations or business dealings.

SEABOURNE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
Capital Allocation and Long Term Decisions

Quarterly the directors review the financial budgets, resource plans and investment decisions. In making decisions concerning the business plan and future strategy, the directors have regard to a variety of matters including the interests of stakeholders, long term consequences of our capital allocation (such expenditure needed to ensure our long- term viability whilst maintaining adequate liquidity), and reputation.

Decisions on the level of dividend take into account the general profitability, liquidity and funding needs of the group.

On behalf of the board

P Levtcheva
Director
27 February 2024
SEABOURNE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -

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

Principal activities

Seabourne Group Limited is the holding company of a trading group which is currently active in the fields of international and domestic courier services, freight forwarding services, third party logistics and repackaging services, mailing and distribution services.

Results and dividends

The results for the year are set out on page 10. The Group trading profit for the year after taxation was £2,450,948.

Dividends of £2,500,000 were paid during the year.

 

Financial risk management policies and objectives

Details of financial risk management policies and objectives can be found in the strategic report.

 

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D J Flitterman
Lady J H Bourne
P Levtcheva
Research and development

The group has not undertaken any activities in the field of research and development.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Engagement with employees statement

 

People are a key factor for our business to succeed. We are proud of the average length of service of our employees. We intend to retain people for the long term and our recruitment strategy is based on offering long careers in fairly paid and stable jobs. We encourage our employees to have both fulfilling careers and balanced lives. We look to our employees to contribute ideas for our future growth and share the rewards of the business where we are profitable, primarily through our discretionary annual bonus scheme.

SEABOURNE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -
Business relationships

Engagement with suppliers, customers, and others statement

 

We value long term relationships with our suppliers and customers and many of our relationships span years and some span decades. In the majority of cases our contact points are tried and tested, hence the longevity of relationships in many cases. We strive to be compliant wherever possible with the most up to date standards required by the industries in which we operate. We value these relationships very highly and consider them to be fundamental to our growth and stability.

Post reporting date events

The directors do not believe there are any post balance sheet events which require disclosure in the financial statements.

Future developments

The group has significant growth opportunities through expansion of the existing business.

 

The Board has approved future developments which reflect its strategic objectives and sets robust growth and financial strength targets, including:

 

 

 

Auditor

The auditor, Bright Grahame Murray, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The company is a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of the exemption from reporting on carbon emissions in compliance with Streamline Energy and Carbon Reporting as these results will be available in the parent entity's financial statements.

SEABOURNE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 6 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS102 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
P Levtcheva
Director
27 February 2024
SEABOURNE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEABOURNE GROUP LIMITED
- 7 -
Opinion

We have audited the financial statements of Seabourne Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.

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 our audit:

SEABOURNE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEABOURNE GROUP LIMITED
- 8 -
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 their 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:

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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, our procedures included the following:

• We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, employment legislation, health and safety.

• We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance.

• We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.

• The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition, related parties outside normal course of business and management override.

• We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.

• We enquired of the directors about actual and potential litigation and claims.

• We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.

• In addressing the risk of fraud due to management override of internal controls, we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.

SEABOURNE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEABOURNE GROUP LIMITED
- 9 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Ahsan Miraj (Senior Statutory Auditor)
For and on behalf of Bright Grahame Murray
Chartered Accountants
Statutory Auditor
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
28 February 2024
SEABOURNE GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
60,500,573
56,138,950
Cost of sales
(37,040,395)
(35,377,679)
Gross profit
23,460,178
20,761,271
Administrative expenses
(20,368,569)
(17,336,181)
Other operating income
2,474
29,190
Operating profit
4
3,094,083
3,454,280
Interest receivable and similar income
7
98,614
35,872
Interest payable and similar expenses
8
(38,974)
(27,557)
Profit before taxation
3,153,723
3,462,595
Tax on profit
9
(702,739)
(839,679)
Profit for the financial year
2,450,984
2,622,916
Profit for the financial year is attributable to:
- Owners of the parent company
2,327,730
2,449,011
- Non-controlling interests
123,254
173,905
2,450,984
2,622,916

The Group Profit And Loss Account has been prepared on the basis that all operations are continuing operations.

SEABOURNE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
2023
2022
£
£
Profit for the year
2,450,984
2,622,916
Other comprehensive income
Currency translation differences on foreign currency net investments
(255,850)
(68,043)
Total comprehensive income for the year
2,195,134
2,554,873
Total comprehensive income for the year is attributable to:
- Owners of the parent company
2,071,880
2,380,968
- Non-controlling interests
123,254
173,905
2,195,134
2,554,873
SEABOURNE GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
56,618
79,332
Tangible assets
12
2,014,151
1,549,837
2,070,769
1,629,169
Current assets
Stocks
15
93,719
119,409
Debtors
16
9,371,021
9,978,254
Cash at bank and in hand
2,368,379
3,542,668
11,833,119
13,640,331
Creditors: amounts falling due within one year
17
(9,666,803)
(10,363,223)
Net current assets
2,166,316
3,277,108
Total assets less current liabilities
4,237,085
4,906,277
Creditors: amounts falling due after more than one year
18
(136,843)
(200,496)
Net assets
4,100,242
4,705,781
Capital and reserves
Called up share capital
23
400,000
400,000
Profit and loss reserves
3,333,606
3,761,727
Equity attributable to owners of the parent company
3,733,606
4,161,727
Non-controlling interests
366,636
544,054
4,100,242
4,705,781
The financial statements were approved by the board of directors and authorised for issue on 27 February 2024 and are signed on its behalf by:
27 February 2024
P Levtcheva
Director
SEABOURNE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
106,852
112,265
Investments
13
11,000,000
8,450,001
11,106,852
8,562,266
Current assets
Debtors falling due after more than one year
16
183,989
320,646
Debtors falling due within one year
16
239,147
256,088
Cash at bank and in hand
825,762
1,025,174
1,248,898
1,601,908
Creditors: amounts falling due within one year
17
(1,030,503)
(917,801)
Net current assets
218,395
684,107
Net assets
11,325,247
9,246,373
Capital and reserves
Called up share capital
23
400,000
400,000
Revaluation reserve
9,493,199
6,943,200
Other reserves
24
123,060
123,060
Profit and loss reserves
1,308,988
1,780,113
Total equity
11,325,247
9,246,373

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account. The company’s profit for the year was £2,028,875 (2022 - £1,677,989 profit).

The financial statements were approved by the board of directors and authorised for issue on 27 February 2024 and are signed on its behalf by:
27 February 2024
P Levtcheva
Director
Company registration number 01060736 (England and Wales)
SEABOURNE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
400,000
3,130,759
3,530,759
414,784
3,945,543
Year ended 30 June 2022:
Profit for the year
-
2,449,011
2,449,011
173,905
2,622,916
Other comprehensive income:
Currency translation differences
-
(68,043)
(68,043)
-
(68,043)
Total comprehensive income
-
2,380,968
2,380,968
173,905
2,554,873
Dividends
10
-
(1,750,000)
(1,750,000)
(44,635)
(1,794,635)
Balance at 30 June 2022
400,000
3,761,727
4,161,727
544,054
4,705,781
Year ended 30 June 2023:
Profit for the year
-
2,327,730
2,327,730
123,254
2,450,984
Other comprehensive income:
Currency translation differences
-
(255,850)
(255,850)
-
(255,850)
Total comprehensive income
-
2,071,880
2,071,880
123,254
2,195,134
Dividends
10
-
(2,500,001)
(2,500,001)
(300,672)
(2,800,673)
Balance at 30 June 2023
400,000
3,333,606
3,733,606
366,636
4,100,242
SEABOURNE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
3,607,669
4,016,778
Interest paid
(38,974)
(27,557)
Income taxes paid
(718,235)
(969,318)
Net cash inflow from operating activities
2,850,460
3,019,903
Investing activities
Purchase of tangible fixed assets
(1,124,004)
(878,074)
Proceeds from disposal of tangible fixed assets
49,452
74,727
Interest received
98,614
35,872
Exchange Differences
(163,918)
(59,867)
Net cash used in investing activities
(1,139,856)
(827,342)
Financing activities
Payment of finance leases obligations
(79,930)
68,207
Dividends paid to equity shareholders
(2,500,001)
(1,750,000)
Dividends paid to non-controlling interests
(300,672)
(44,635)
Net cash used in financing activities
(2,880,603)
(1,726,428)
Net (decrease)/increase in cash and cash equivalents
(1,169,999)
466,133
Cash and cash equivalents at beginning of year
3,535,667
3,069,534
Cash and cash equivalents at end of year
2,365,668
3,535,667
Relating to:
Cash at bank and in hand
2,368,379
3,542,668
Bank overdrafts included in creditors payable within one year
(2,711)
(7,001)
SEABOURNE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
400,000
6,943,200
123,060
1,852,124
9,318,384
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
-
-
1,677,989
1,677,989
Dividends
10
-
-
-
(1,750,000)
(1,750,000)
Balance at 30 June 2022
400,000
6,943,200
123,060
1,780,113
9,246,373
Year ended 30 June 2023:
Profit for the year
-
-
-
2,028,875
2,028,875
Other comprehensive income:
Revaluation of tangible fixed assets
-
2,549,999
-
-
2,549,999
Total comprehensive income for the year
-
2,549,999
-
2,028,875
4,578,874
Dividends
10
-
-
-
(2,500,000)
(2,500,000)
Balance at 30 June 2023
400,000
9,493,199
123,060
1,308,988
11,325,247
SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
1
Accounting policies
Company information

Seabourne Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Gardiner House, 6b Hemnall Street, Epping, Essex, CM16 4LW.

 

The group consists of Seabourne Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Seabourne Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Warehousing contract
3 years on a straight line basis
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
over 4 years
Fixtures, fittings & equipment
10-33.3% p.a. on a straight line basis
Motor vehicles
25% p.a. on a straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently revalued annually, with the surplus or deficit on revaluation being recognised in the Statement of Comprehensive Income.

 

The model used to calculate the fair value of the investments is as follows: the net asset value of the investment plus a multiple of three times the average profits for the previous 3 years. This value is then reduced to the percentage by shareholding held.

SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 22 -
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

 

The group operates a defined benefit scheme. The assets of the scheme are held separately from those of the group.

 

Due to the way the scheme is run it is not possible for each subsidiary to identify its share of the underlying assets and liabilities. Consequently the group has accounted for its contributions to the scheme as if it were a defined contribution scheme.

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

The exchange adjustment on translation of the group's investment in opening share capital and reserves of subsidiaries is dealt with through reserves; all other current profits and losses are passed through the profit and loss account.

SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The judgements, estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The judgements, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Determine whether leases entered into by the group either as a lessor or a lessee are operating or finance leases.

These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Determining when the significant risks and rewards have transferred to the customer and a sale is recognised.

This has been determined to be upon delivery to the buyer rather than dispatch as the group retains the risk during the shipping process.

Determine whether there are indicators of impairment of the group's tangible and intangible assets, including goodwill.

Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Determining the useful economic lives of Fixed Assets

The group depreciates fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The group also take due notice of the generally accepted treatments in place within their industry when determining those useful lives.

Valuation of investments

The parent company measures its investments in subsidiary undertakings at directors' valuation. The estimation of these values involves the use of assumptions and judgement.

Provisions

Provisions are liabilities that are uncertain as to timing or amount, and are recognised when there is a legal or constructive obligation at the balance sheet date and it is probable that a transfer of economic benefits will be required to settle that obligation. These provisions require management's best estimate of costs that will be incurred based on legal and contractual requirements. In addition, the timing of the cash flows require management's judgement.

 

 

SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 24 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
UK
18,087,448
16,713,825
Europe
28,799,262
28,261,726
Rest of the world
13,613,863
11,163,399
60,500,573
56,138,950
2023
2022
£
£
Other revenue
Interest income
98,614
35,872
Grants received
-
15,335

The group's turnover and profit before taxation were all derived from its principal activities. The directors are of the opinion that the disclosure of the analysis of turnover by market would be prejudicial to the interests of the group.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
18,955
158,821
Government grants
-
(15,335)
Depreciation of owned tangible fixed assets
523,665
437,992
Loss/(profit) on disposal of tangible fixed assets
8,045
(55,684)
Amortisation of intangible assets
9,310
11,203
Operating lease charges
1,308,476
1,175,782

The amortisation of intangible assets is included within administrative expenses.

5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
38,790
37,200
Audit of the financial statements of the company's subsidiaries
20,409
18,300
59,199
55,500
For other services
Taxation compliance services
25,200
23,500
SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales, distribution and administration
570
448
15
14

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
10,398,530
9,450,087
1,116,273
1,033,851
Social security costs
1,009,945
881,422
68,845
48,299
Pension costs
754,933
660,817
88,986
90,519
12,163,408
10,992,326
1,274,104
1,172,669

Directors' remuneration

Directors' remuneration totalled £782.265 (2022: £684,415) which includes £11,004 (2022: £17,447) pension contribution. The remuneration of the highest paid director was £517,661 (2022: £428,400) which includes £4,000 (2022: £10,893) pension contribution.

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
98,614
35,872
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
98,614
35,872
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
38,974
27,556
Other finance costs:
Interest on finance leases and hire purchase contracts
-
1
Total finance costs
38,974
27,557
SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
9
Taxation
2023
2022
£
£
Current tax
Foreign current tax on profits for the current period
671,225
814,847
Deferred tax
Origination and reversal of timing differences
31,514
24,832
Total tax charge
702,739
839,679

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,153,723
3,462,595
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
646,513
657,893
Tax effect of expenses that are not deductible in determining taxable profit
22,480
21,549
Tax effect of income not taxable in determining taxable profit
(4)
(20)
Group relief
(113,295)
(8,276)
Other non-reversing timing differences
(26,463)
-
0
Other permanent differences
(43)
(76)
Effect of overseas tax rates
163,559
190,583
Deferred tax adjustments in respect of prior years
4,831
5,171
Foreign exchange differences
2,255
2,255
Utilisation of losses brought forward
-
0
(26,700)
Difference in deferred tax and corporation tax rates
2,906
(2,700)
Taxation charge
702,739
839,679
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
2,500,000
1,750,000
SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
11
Intangible fixed assets
Group
Goodwill
Warehousing contract
Total
£
£
£
Cost
At 1 July 2022
1,262,463
59,720
1,322,183
Exchange adjustments
(37,994)
(10,090)
(48,084)
At 30 June 2023
1,224,469
49,630
1,274,099
Amortisation and impairment
At 1 July 2022
1,183,131
59,720
1,242,851
Amortisation charged for the year
9,310
-
0
9,310
Exchange adjustments
(24,590)
(10,090)
(34,680)
At 30 June 2023
1,167,851
49,630
1,217,481
Carrying amount
At 30 June 2023
56,618
-
0
56,618
At 30 June 2022
79,332
-
0
79,332
The company had no intangible fixed assets at 30 June 2023 or 30 June 2022.
12
Tangible fixed assets
Group
Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2022
535,315
2,060,459
963,794
3,559,568
Additions
644,654
311,098
168,252
1,124,004
Disposals
(55,826)
(19,514)
(78,658)
(153,998)
Exchange adjustments
(769)
(99,508)
(121,881)
(222,158)
At 30 June 2023
1,123,374
2,252,535
931,507
4,307,416
Depreciation and impairment
At 1 July 2022
90,780
1,487,886
431,065
2,009,731
Depreciation charged in the year
129,372
221,497
172,796
523,665
Eliminated in respect of disposals
(15,598)
(12,230)
(68,673)
(96,501)
Exchange adjustments
(246)
(74,878)
(68,506)
(143,630)
At 30 June 2023
204,308
1,622,275
466,682
2,293,265
Carrying amount
At 30 June 2023
919,066
630,260
464,825
2,014,151
At 30 June 2022
444,535
572,573
532,729
1,549,837
SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
12
Tangible fixed assets
(Continued)
- 28 -
Company
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2022
300,603
60,596
132,244
493,443
Additions
927
-
0
32,200
33,127
Disposals
-
0
(250)
-
0
(250)
At 30 June 2023
301,530
60,346
164,444
526,320
Depreciation and impairment
At 1 July 2022
293,725
60,596
26,857
381,178
Depreciation charged in the year
2,796
-
0
35,744
38,540
Eliminated in respect of disposals
-
0
(250)
-
0
(250)
At 30 June 2023
296,521
60,346
62,601
419,468
Carrying amount
At 30 June 2023
5,009
-
0
101,843
106,852
At 30 June 2022
6,878
-
0
105,387
112,265

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
288,244
-
0
-
0
-
0
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
11,000,000
8,450,001
SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
13
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 July 2022
8,450,001
Revaluation
2,549,999
At 30 June 2023
11,000,000
Carrying amount
At 30 June 2023
11,000,000
At 30 June 2022
8,450,001
14
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Seabourne Mail Solutions Limited
England
Mailing and distribution
Ordinary
90.00
Seabourne Express Courier SAS
France
Express courier service
Ordinary
90.00
Seabourne Express Couriers BV
Netherlands
Express courier service
Ordinary
98.00
Seabourne Forwarding Limited
England
Freight forwarding service
Ordinary
100.00
Seabourne Inxpress (Pty) Limited
South Africa
Express courier service
Ordinary
70.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
93,719
119,409
-
-
SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
8,092,155
8,826,406
44,551
45,650
Corporation tax recoverable
237,794
190,784
-
0
-
0
Amounts owed by group undertakings
-
-
3,842
8,501
Other debtors
567,119
534,545
125,417
90,955
Prepayments and accrued income
449,139
370,191
56,633
98,068
9,346,207
9,921,926
230,443
243,174
Deferred tax asset (note 21)
24,814
56,328
8,704
12,914
9,371,021
9,978,254
239,147
256,088
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
183,989
320,646
Total debtors
9,371,021
9,978,254
423,136
576,734
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
2,711
7,001
-
0
-
0
Obligations under finance leases
20
150,056
166,333
-
0
-
0
Trade creditors
6,029,372
6,205,511
221,310
170,299
Amounts owed to group undertakings
-
0
-
0
21,421
24,085
Other taxation and social security
818,892
1,117,226
82,471
43,048
Other creditors
861,823
793,182
14,708
18,032
Accruals and deferred income
1,803,949
2,073,970
690,593
662,337
9,666,803
10,363,223
1,030,503
917,801
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
136,843
200,496
-
0
-
0
SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 31 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
2,711
7,001
-
0
-
0
Payable within one year
2,711
7,001
-
0
-
0

In the subsidiary Seabourne Inxpress Proprietary Limited trade receivables were ceded to ABSA Bank as security for the company's overdraft facilities.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
150,056
166,333
-
0
-
0
In two to five years
136,843
200,496
-
0
-
0
286,899
366,829
-
-
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2023
2022
Group
£
£
Depreciation exceeding/(less than) tax allowances
(79,813)
(56,170)
Timing differences
104,627
112,498
24,814
56,328
Assets
Assets
2023
2022
Company
£
£
Depreciation exceeding/(less than) tax allowances
(5,196)
(2,572)
Timing differences
13,900
15,486
8,704
12,914
SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
21
Deferred taxation
(Continued)
- 32 -
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 July 2022
(56,328)
(12,914)
Charge to profit or loss
31,514
4,210
Asset at 30 June 2023
(24,814)
(8,704)
22
Retirement benefit schemes

The Group operates a defined benefits pension scheme whose assets are held in independent trustee administered funds. Due to the way the scheme is run, it is not possible for each subsidiary to identify its share of the underlying assets and liabilities and accordingly no provision has been made in these accounts.

 

The most recent actuarial valuation of the scheme was carried out on 30 June 2023 by a qualified actuary, independent of the scheme's sponsoring employer. This disclosed an asset of £470K compared to an asset at 30 June 2022 of £821K. The scheme was closed to future accruals on 30 September 2017. Full provision and disclosure under FRS 102 has been made in the accounts of the ultimate 'holding' company, as it is not a requirement to prepare consolidated accounts at an intermediary level.

 

The pension cost charge for the year in respect of contributions to this scheme amounted to £180K (2022: £180K).

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £1 each
400,000
400,000
400,000
400,000
24
Other reserves

The company was paid £601,592 in previous years for agreeing to acquire six subsidiary undertakings from its parent company. The balance remaining of £123,060 relates to companies still part of the group. The reserve is non distributable.

25
Financial commitments, guarantees and contingent liabilities

(a) The group has issued guarantees to a maximum of £491,018 (2022: £262,403).

 

(b) Seabourne Group Limited is part of a composite accounting agreement together with all of its UK trading subsidiaries and its immediate parent undertaking, whereby they cross-guarantee any indebtedness to the bankers and grant rights of set off. The amount owed to the group's bankers under the composite accounting agreement as at 30 June 2023 was £Nil (2022: £Nil).

SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 33 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
1,924,755
1,447,933
61,838
61,838
Between two and five years
2,318,252
3,334,748
56,331
116,641
In over five years
545,549
742,506
-
-
4,788,556
5,525,187
118,169
178,479
27
Related party transactions

Transactions between the company and its subsidiaries, which are wholly owned related parties, have been eliminated on consolidation and are not disclosed in this note.

 

Creditors due within one year include an accrual of £nil (2022: £nil) due to Seabourne Holdings Limited, the immediate parent undertaking.

 

Management charges of £32,625 (2022: £95,725) were charged to Seabourne Group Limited and its subsidiaries by Seabourne Holdings Limited.

28
Controlling party

The company's immediate parent undertaking is Seabourne Holdings Limited and the ultimate holding company is CJ Bourne (Asset Management) Limited; both companies are registered in England.

The consolidated accounts of CJ Bourne (Asset Management) Limited are available from that company's registered office.

The ultimate controlling party is the Sir Clive Bourne Share Fund, in which Lady Bourne has an interest in possession.

SEABOURNE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 34 -
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,450,984
2,622,916
Adjustments for:
Taxation charged
702,739
839,679
Finance costs
38,974
27,557
Investment income
(98,614)
(35,872)
Loss/(gain) on disposal of tangible fixed assets
8,045
(55,684)
Amortisation and impairment of intangible assets
9,310
11,203
Depreciation and impairment of tangible fixed assets
523,665
437,992
Movements in working capital:
Decrease/(increase) in stocks
25,690
(64,206)
Decrease/(increase) in debtors
622,729
(1,966,007)
(Decrease)/increase in creditors
(675,853)
2,199,200
Cash generated from operations
3,607,669
4,016,778
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