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Registered number: 01416708
















CARGO MARKETING SERVICES LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE 9 MONTHS ENDED 31 DECEMBER 2023


































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CARGO MARKETING SERVICES LIMITED

 
COMPANY INFORMATION


DIRECTORS
T L Bennett 
M R Frearson 
G C B Expósito 
F M Mercante 
J P Olarieta 
H A Taleb 
R Vazquez 




REGISTERED NUMBER
01416708



REGISTERED OFFICE
Ocean House
Marston Park

Tamworth

Staffordshire

B78 3HU




INDEPENDENT AUDITORS
Bishop Fleming LLP
Chartered Accountants & Statutory Auditors

10 Temple Back

Bristol

BS1 6FL






CARGO MARKETING SERVICES 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
Company Statement of Financial Position
 
11
Consolidated Statement of Changes in Equity
 
12
Company Statement of Changes in Equity
 
13
Consolidated Statement of Cash Flows
 
14
Analysis of Net Debt
 
15
Notes to the Financial Statements
 
16 - 34


CARGO MARKETING SERVICES LIMITED

 
GROUP STRATEGIC REPORT
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

The directors present their Group Strategic Report for the 9 month period ended 31 December 2023. 

PRINCIPAL ACTIVITY

The principal activity of the group and the company during the year was the provision of freight forwarding services.

BUSINESS REVIEW
 
Cargo Marketing Services continued to perform well for the 9 months of our Financial Year April 2023- December 2023.
Container shipping freight rate pricing has decreased dramatically during this period to pre-pandemic levels and this has had a natural domino effect on our tariff levels.  Resulting in a reduced turnover value despite volumes remaining constant and consistent.
Space on vessels has become more available which has resulted in a very aggressive industry with our all of our competitors fighting to hold onto and protect market share.  This has inevitably put our margin levels under pressure, causing some erosion compared to recent years.
The Company will continue to concentrate on maintaining volumes and operating at the highest level of customer service to keep ahead of a very keenly fought market.  We will continue to look at expanding our choice of trade lanes with new services being introduced where beneficial, along with the expansion of our Airfreight product.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The Company is exposed to moderate levels of price risk, credit risk, liquidity risk and cash flow risk. The Company manages these by financing its operations through retained profits and its own cash reserves. The management objectives are to retain sufficient liquid funds to enable it to meet its day to day requirements, minimise the Group’s risk to fluctuating interest rates and foreign exchange movements.  Trade debtors are managed by a strict credit control policy; agreed payment terms along with official credit limit checks.
The Company makes little use of financial instruments other than an operational bank account, so its exposure to the above risks are not really material for the assessment of the assets, liabilities, financial position and the profit of loss of the Company.
Because of the Global economic uncertainty which has resulted in high inflation, high interest rates, increased energy costs, our labour costs have had to increase.  Political issues worldwide, which are out of our control are also a concern in the current climate. ROE fluctuations have become more of a factor for the Company going forward also.  Current procedures ensure that we do not hold large balances in foreign currency and this will be continued to be monitored regularly.  However, because the Company can hold large cash balances from time to time, we are benefiting from higher interest rates on savings.
The industry is becoming very competitive and the challenge for the Company will be to ensure we remain favourable and provide a value added service in order to retain our customer base but also add growth with new business.
Also, customer liquidity continues to be a concern, but active monitoring and tighter credit control procedures will keep these risks to a minimum.

Page 1


CARGO MARKETING SERVICES LIMITED


GROUP STRATEGIC REPORT (CONTINUED)
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

FINANCIAL KEY PERFORMANCE INDICATORS
 
The performance indicators used by the group are primarily gross profit and turnover. However, we also pay particular attention to cash levels. 
Group turnover decreased by 60.9% (31 March 2023: 24.9% increase) from £80,958,832 to £31,634,244 during the period Gross profit has decreased to £8,437,406 compared to £18,016,534 in the previous year. The group achieved a gross margin percentage this period of 26.7% compared to that of 22.4% in 31 March 2023.
The group has reported negative operating cash flows of £1,917,307 (31 March 2023: £6,008,616 positive cash flow) and an overall decrease in cash of £5,363,891 (31 March 2023: £1,847,384 increase). The group continues to hold healthy cash reserves at the Balance Sheet date.

OTHER KEY PERFORMANCE INDICATORS
 
Cargo Marketing Services group also actively looks at customer retention and fall off levels along with respective volumes. There have been no major shifts up or down during this financial year.


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



T L Bennett
Director
Date: 24 July 2024
Page 2


CARGO MARKETING SERVICES LIMITED

 
DIRECTORS' REPORT
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the 9 months ended 31 December 2023.

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 judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

RESULTS AND DIVIDENDS

The profit for the 9 months, after taxation, amounted to £3,241,227 ( 31 March 2023: £10,168,397).

GOING CONCERN

The directors have prepared budgets forecasts covering a period of at least 12 months following the date of approval of the financial statements. The group has a net asset value at 31 December 2023 of £8,283,840 (31 March 2023: £7,909,586) and continues to hold healthy cash reserves.
The Directors have reviewed budgets and forecasts for a period of 12 months from approval of the financial statements.  This is the first trading year to run from January to December. The first Quarter of FY 2024 has continued with decent profits although they are much lower than last year. This was expected and is not of any concern to the Directors at this time. The Company will continue to provide best customer service, coupled with increased activities in Sales & Marketing in order to promote and bring on new business to counteract this.
The Global Shipping industry continues to face challenges that could put Global economies in danger.   We have seen vessels being hijacked off the East African coast by Somalian Pirates and we have been affected by the heightened conflict in the Suez Canal.  This has resulted in the re-routing of vessels around the Cape of Good Hope in South Africa adding another 2 weeks to many of the transit times into Europe.  This has put keeping costs low or stable under pressure. 
We make every effort to keep our clients up to date and well informed of any delays which are out of our control and work very closely with our Carrier partners.  Therefore, we are confident that our forecasts will be achieved, yet we will continue to seek ways to improve our operating systems to keep in line with an ever-changing industry.
In summary, the Directors are of the opinion that there are adequate resources to continue in operational existence for the foreseeable future.  Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Page 3


CARGO MARKETING SERVICES LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

DIRECTORS

The directors who served during the 9 months were:

T L Bennett 
M R Frearson 
G C B Expósito 
F M Mercante 
J P Olarieta 
H A Taleb 
R Vazquez 

STRATEGIC REPORT

Information as required by schedule 7 of the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008 has been included in the Group Strategic Report. 

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.

POST BALANCE SHEET EVENTS

There are no post balance sheet events.

AUDITORS

The auditorsBishop Fleming LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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






T L Bennett
Director

Date: 24 July 2024

Ocean House
Marston Park
Tamworth
Staffordshire
B78 3HU
Page 4


CARGO MARKETING SERVICES LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARGO MARKETING SERVICES LIMITED
OPINION


We have audited the financial statements of Cargo Marketing Services Limited (the 'parent company') and its subsidiaries (the 'Group') for the 9 months ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statements of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated 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 31 December 2023 and of the Group's profit for the 9 months 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.


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5


CARGO MARKETING SERVICES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARGO MARKETING SERVICES LIMITED (CONTINUED)

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 9 months 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


CARGO MARKETING SERVICES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARGO MARKETING SERVICES 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 procedures surrounding the identification and assessment of risks of material misstatement in relation to irregularities, including fraud and non-compliance with laws and regulations, included the following:

considering the nature of the entity and its environment, internal control environment, and business performance.
considering the results of our enquiries of management about their own identification and assessment of the risk of irregularities.
°obtaining and reviewing, for any matters identified, the Company’s documentation of their policies and procedures relating to:
°the identification, evaluation, and compliance with laws and regulations, and whether management were aware of any instances of non-compliance within the year
°the detection and response to the risk of fraud, and whether management have knowledge of actual, suspected, or alleged fraud; and
°the internal controls established to mitigate the risks of fraud or non-compliance with laws and regulations.
discussing amongst the audit engagement team, including internal tax specialists, regarding how and where fraud might occur in the financial statements and potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the completeness of revenue recognition and management override of controls. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to these identified risks.

We have obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

We considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These included data protection regulations, health and safety regulations, and employment legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements.
enquiring of management concerning actual and potential litigation claims.
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement or fraud.
Page 7


CARGO MARKETING SERVICES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARGO MARKETING SERVICES LIMITED (CONTINUED)

reading minutes of board meetings throughout the year.
in addressing the risk of fraud through management override of controls:
°testing the appropriateness of journal entries and other adjustments.
°assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
°evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.


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 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 for our audit work, for this report, or for the opinions we have formed.






Ria Burridge FCCA (Senior Statutory Auditor)
for and on behalf of
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
10 Temple Back
Bristol
BS1 6FL

24 July 2024
Page 8


CARGO MARKETING SERVICES LIMITED

 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

9 months ended
31 December
12 months ended
31 March
2023
2023
Note
£
£

  

Turnover
 4 
31,634,244
80,958,832

Cost of sales
  
(23,196,838)
(62,942,298)

GROSS PROFIT
  
8,437,406
18,016,534

Administrative expenses
  
(4,242,569)
(5,462,929)

OPERATING PROFIT
 5 
4,194,837
12,553,605

Interest receivable and similar income
 8 
115,093
40,061

Interest payable and similar expenses
 9 
(37)
(15,612)

PROFIT BEFORE TAXATION
  
4,309,893
12,578,054

Tax on profit
 10 
(1,068,666)
(2,409,657)

PROFIT FOR THE FINANCIAL 9 MONTHS
  
3,241,227
10,168,397

OTHER COMPREHENSIVE INCOME FOR THE 9 MONTHS
  

Share based payments charge
  
433,027
-

TOTAL COMPREHENSIVE INCOME FOR THE 9 MONTHS
  
3,674,254
10,168,397

PROFIT FOR THE 9 MONTHS ATTRIBUTABLE TO:
  

Owners of the parent company
  
3,241,227
10,168,397

  
3,241,227
10,168,397

TOTAL COMPREHENSIVE INCOME FOR THE 9 MONTHS ATTRIBUTABLE TO:
  

Owners of the parent company
  
3,674,254
10,168,397

  
3,674,254
10,168,397

The notes on pages 16 to 34 form part of these financial statements.
Page 9


CARGO MARKETING SERVICES LIMITED
REGISTERED NUMBER:01416708

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

31 December
31 March
2023
2023
Note
£
£

FIXED ASSETS
  

Intangible assets
 12 
-
10,055

Tangible assets
 13 
120,755
109,710

  
120,755
119,765

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 15 
10,329,755
7,170,326

Cash at bank and in hand
 16 
1,681,055
7,044,946

  
12,010,810
14,215,272

Creditors: amounts falling due within one year
 17 
(3,847,725)
(6,425,451)

NET CURRENT ASSETS
  
8,163,085
7,789,821

TOTAL ASSETS LESS CURRENT LIABILITIES
  
8,283,840
7,909,586

NET ASSETS
  
8,283,840
7,909,586


CAPITAL AND RESERVES
  

Called up share capital 
 20 
450,900
450,900

Share premium account
 21 
85,991
85,991

Capital redemption reserve
 21 
100
100

Profit and loss account
 21 
7,746,849
7,372,595

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY
  
8,283,840
7,909,586

  
8,283,840
7,909,586


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





M R Frearson
T L Bennett
Director
Director


Date: 24 July 2024

The notes on pages 16 to 34 form part of these financial statements.
Page 10


CARGO MARKETING SERVICES LIMITED
REGISTERED NUMBER:01416708

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

31 December
31 March
2023
2023
Note
£
£

FIXED ASSETS
  

Tangible assets
 13 
120,755
109,710

Investments
 14 
100
100

  
120,855
109,810

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 15 
8,261,588
6,690,522

Cash at bank and in hand
 16 
1,402,089
5,018,485

  
9,663,677
11,709,007

Creditors: amounts falling due within one year
 17 
(3,822,534)
(6,198,672)

NET CURRENT ASSETS
  
5,841,143
5,510,335

TOTAL ASSETS LESS CURRENT LIABILITIES
  
5,961,998
5,620,145

  

  

NET ASSETS
  
5,961,998
5,620,145


CAPITAL AND RESERVES
  

Called up share capital 
 20 
450,900
450,900

Share premium account
 21 
85,991
85,991

Capital redemption reserve
 21 
100
100

Profit and loss account carried forward
  
5,425,007
5,083,154

  
5,961,998
5,620,145


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





M R Frearson
T L Bennett
Director
Director


Date: 24 July 2024

The notes on pages 16 to 34 form part of these financial statements.
Page 11


CARGO MARKETING SERVICES LIMITED


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023


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

£
£
£
£
£
£


At 1 April 2022
450,900
85,991
100
1,204,198
1,741,189
1,741,189


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
-
-
10,168,397
10,168,397
10,168,397
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
-
-
10,168,397
10,168,397
10,168,397


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends: Equity capital
-
-
-
(4,000,000)
(4,000,000)
(4,000,000)



At 1 April 2023
450,900
85,991
100
7,372,595
7,909,586
7,909,586


COMPREHENSIVE INCOME FOR THE 9 MONTHS

Profit for the 9 months
-
-
-
3,241,227
3,241,227
3,241,227

Release of EMI creditor
-
-
-
433,027
433,027
433,027
TOTAL COMPREHENSIVE INCOME FOR THE 9 MONTHS
-
-
-
3,674,254
3,674,254
3,674,254


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends: Equity capital
-
-
-
(3,300,000)
(3,300,000)
(3,300,000)


AT 31 DECEMBER 2023
450,900
85,991
100
7,746,849
8,283,840
8,283,840
Page 12


CARGO MARKETING SERVICES LIMITED


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023


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

£
£
£
£
£


At 1 April 2022
450,900
85,991
100
276,225
813,216


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
-
-
8,806,929
8,806,929
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
-
-
8,806,929
8,806,929


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends: Equity capital
-
-
-
(4,000,000)
(4,000,000)



At 1 April 2023
450,900
85,991
100
5,083,154
5,620,145


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the 9 months
-
-
-
3,208,826
3,208,826

Share based payments movement in reserves
-
-
-
433,027
433,027
TOTAL COMPREHENSIVE INCOME FOR THE 9 MONTHS
-
-
-
3,641,853
3,641,853


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends: Equity capital
-
-
-
(3,300,000)
(3,300,000)


AT 31 DECEMBER 2023
450,900
85,991
100
5,425,007
5,961,998


The notes on pages 16 to 34 form part of these financial statements.
Page 13


CARGO MARKETING SERVICES LIMITED


CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

9 months ended
31 December
12 months ended
31 March
2023
2023
£
£

CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the financial year
3,241,227
10,168,397

ADJUSTMENTS FOR:

Amortisation of intangible assets
10,055
8,823

Depreciation of tangible assets
29,449
41,521

Loss/(profit) on disposal of tangible assets
11,158
(11,675)

Interest paid
37
15,612

Interest received
(115,093)
40,061

Taxation charge
1,068,666
2,384,130

(Increase)/decrease in debtors
(3,175,966)
4,067,451

(Decrease) in creditors
(2,416,718)
(8,376,146)

Corporation tax (paid)
(1,213,257)
(2,329,558)

NET CASH GENERATED FROM OPERATING ACTIVITIES

(2,560,442)
6,008,616


CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of tangible fixed assets
(52,569)
(74,343)

Sale of tangible fixed assets
1,037
(31,216)

Interest received
115,093
(40,061)

NET CASH FROM INVESTING ACTIVITIES

63,561
(145,620)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid
(3,300,000)
(4,000,000)

Interest paid
(37)
(15,612)

Share based payments charge
433,027
-

NET CASH USED IN FINANCING ACTIVITIES
(2,867,010)
(4,015,612)

(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(5,363,891)
1,847,384

Cash and cash equivalents at beginning of 9 months
7,044,946
5,197,562

CASH AND CASH EQUIVALENTS AT THE END OF 9 MONTHS
1,681,055
7,044,946


CASH AND CASH EQUIVALENTS AT THE END OF 9 MONTHS COMPRISE:

Cash at bank and in hand
1,681,055
7,044,946

1,681,055
7,044,946


The notes on pages 16 to 34 form part of these financial statements.
Page 14


CARGO MARKETING SERVICES LIMITED


CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023




At 1 April 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

7,044,946

(5,363,891)

1,681,055



7,044,946
(5,363,891)
1,681,055

The notes on pages 16 to 34 form part of these financial statements.
Page 15


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

1.


GENERAL INFORMATION

Cargo Marketing Services Limited is a company limited by shares, incorporated in England & Wales and domiciled in England.
The company's registered number is 01416708 and its registered office is Ocean House, Marston Park, Tamworth, Staffordshire, B78 3HU.
The principal activity of the group and the company during the year was the provision of freight forwarding 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 functional and presentational currency for the company and the group is Sterling. the financial statements have been rounded to the nearest £1.

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 judgement 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 group 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 Balance Sheet, 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 16


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.3

GOING CONCERN

The directors have prepared budgets forecasts covering a period of at least 12 months following the date of approval of the financial statements. The group has a net asset value at 31 December 2023 of £8,283,840 (31 March 2023: £7,909,586) and continues to hold healthy cash reserves.
The Directors have reviewed budgets and forecasts for a period of 12 months from approval of the financial statement.  The first Quarter of FY 2023-2024 has continued with healthy profits albeit at a much reduced level. However, the company continues to provide best customer service, coupled with increased activities in sales and marketing in order to promote and bring on new business.
The global logistics industry continues to face extreme challenges, but our experience and knowledge allows us to operate well and efficiently to offer our clients the solutions they need.  We continue to achieve healthy margins (slightly improved on last year) because of our loyalty and relationship with our carrier partners.
We are confident that our forecasts will be achieved, yet we continue to seek ways to improve our operating systems to keep in line with an ever-changing industry.

 
2.4

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The company's functional and presentational currency is GBP.

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 Sterling 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.

 
2.5

TURNOVER

The turnover shown in the Consolidated Statement of Comprehensive Income represents amounts invoiced during the year, exclusive of Value Added Tax. Sales are recognised at the point at which the company has fulfilled its contractual obligations to the customer.

Page 17


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.6

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.

 
2.7

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

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The Group operates a defined contribution plan 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 18


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.10

CURRENT AND DEFERRED TAXATION

The tax expense for the 9 months 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.

 
2.11

INTANGIBLE ASSETS

GOODWILL

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

OTHER 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.

 The estimated useful lives range as follows:

Goodwill
-
10 years

Page 19


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.12

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.

Land is not depreciated. Depreciation on other assets 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:

Equipment, fixtures and fittings
-
5 to 25% straight line basis
Computer equipment
-
5 to 25% straight line basis

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.

 
2.13

VALUATION OF INVESTMENTS

Investments held as fixed assets are shown at fair value.

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

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.

 
2.15

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.

A company Statement of Cash Flows has not been presented in these financial statements on the basis that the Consolidated Statement of Cash Flows includes this information.

 
2.16

CREDITORS

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

Page 20


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.17

FINANCIAL INSTRUMENTS

The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate under the contract.

 
2.18

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations for future events that we believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates. 
The nature of this business is that whilst estimates and judgements are required in certain areas, for example around prepayments and accruals, none are considered to be critical or key estimates. 
Page 21


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

4.


TURNOVER

The turnover and profit before tax are attributable to the one principal activity of the group. 

Analysis of turnover by country of destination:

9 months ended
31 December
12 months ended
31 March
2023
2023
£
£

United Kingdom
28,662,522
76,475,974

Rest of Europe
167,226
1,573,282

Rest of the World
2,804,496
2,909,576

31,634,244
80,958,832



5.


OPERATING PROFIT

The operating profit is stated after charging:

9 months ended
31 December
12 months ended
31 March
2023
2023
£
£

Depreciation of tangbile fixed assets
29,449
41,521

Amortisation of intangible assets, including goodwill
10,055
8,823

Fees payable to the group's auditor for the audit of the company's annual financial statements
31,480
30,415

Fees payable to the group's auditors for other services to the group:
-
-

- The audit of the group's subsidiaries pursuant to legislation
5,000
7,655

- Taxation compliance services
29,750
3,125

Foreign exchange (gain)
45,811
(67,857)

Other operating lease costs - land and buildings
149,660
175,400

Operating lease costs - other
-
23,157

Defined contribution pension cost
179,509
204,029

Page 22


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

6.


EMPLOYEES

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


Group
31 December
Group
31 March
Company
31 December
Company
31 March
2023
2023
2023
2023
£
£
£
£


Wages and salaries
2,985,733
3,806,108
2,985,733
3,478,141

Social security costs
315,442
451,351
315,442
422,183

Cost of defined contribution scheme
179,509
204,029
179,509
195,678

3,480,684
4,461,488
3,480,684
4,096,002


The average monthly number of employees, including the directors, during the 9 months was as follows:



Group
Group
Company
Company
   9 months ended
     31 December
   12 months ended
        31 March
   9 months ended
     31 December
   12 months ended
        31 March
        2023
        2023
        2023
        2023
            No.
            No.
            No.
            No.









Administration
8
9
8
7



Management
3
3
3
2



Operations
63
69
63
66



Sales
10
7
10
5

84
88
84
80

Page 23


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

7.


DIRECTORS' REMUNERATION

9 months ended
31 December
12 months ended
31 March
2023
2023
£
£

Directors' emoluments
437,039
456,333

Group contributions to defined contribution pension schemes
23,160
17,480

460,199
473,813


During the 9 months retirement benefits were accruing to 3 directors (31 March 2023: 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £169,000 (31 March 2023: £190,829).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £6,459 (31 March 2023: £5,180).


8.


INTEREST RECEIVABLE

9 months ended
31 December
12 months ended
31 March
2023
2023
£
£


Other interest receivable
115,093
40,061


9.


INTEREST PAYABLE AND SIMILAR EXPENSES

9 months ended
31 December
12 months ended
31 March
2023
2023
£
£


Bank interest payable
37
15,612

Page 24


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

10.


TAXATION


9 months ended
31 December
12 months ended
31 March
2023
2023
£
£

CORPORATION TAX


Current tax on profits for the year
1,065,174
2,386,689

Adjustments in respect of previous periods
2,211
-

1,067,385
2,386,689


DEFERRED TAX


Origination and reversal of timing differences
1,281
22,968

TOTAL DEFERRED TAX
1,281
22,968


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
1,068,666
2,409,657

FACTORS AFFECTING TAX CHARGE FOR THE 9 MONTHS/YEAR

The tax assessed for the 9 months/year is different to the standard rate of corporation tax in the UK of 25% (31 March 2023: 19%). The differences are explained below:

9 months ended
31 December
12 months ended
31 March
2023
2023
£
£


Profit on ordinary activities before tax
4,309,893
12,578,054


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (31 March 2023: 19%)
1,072,454
2,389,830

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
6,471
54,719

Fixed asset differences
301
(1,211)

Adjustments to tax charge in respect of prior periods
18,299
12,288

Movement in deferred tax not recognised
(21,436)
10,531

Other permanent differences
(7,423)
(59,112)

Remeasurement of deferred tax for changes in tax rates
-
2,612

TOTAL TAX CHARGE FOR THE 9 MONTHS/YEAR
1,068,666
2,409,657

Page 25


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023
 
10.TAXATION (CONTINUED)


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

The Finance Act 2021 increased the main rate of corporation tax from 19% to 25% with effect from 1 April 2023.

11.


DIVIDENDS

31 December
31 March
2023
2023
£
£


Dividends
3,300,000
4,000,000


12.


INTANGIBLE ASSETS

Group 







Goodwill

£



COST


At 1 April 2023
88,230



At 31 December 2023

88,230



AMORTISATION


At 1 April 2023
78,175


Charge for the 9 months on owned assets
10,055



At 31 December 2023

88,230



NET BOOK VALUE



At 31 December 2023
-



At 31 March 2023
10,055



Company
No intangible fixed assets are held by the company.

Page 26


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

13.


TANGIBLE FIXED ASSETS

Group








Fixtures and fittings
Computer equipment
Total

£
£
£



COST OR VALUATION


At 1 April 2023
190,774
378,351
569,125


Additions
23,255
29,314
52,569


Disposals
(55,419)
(195,663)
(251,082)



At 31 December 2023

158,610
212,002
370,612



DEPRECIATION


At 1 April 2023
134,439
324,976
459,415


Charge for the 9 months on owned assets
12,185
17,264
29,449


Disposals
(48,300)
(190,707)
(239,007)



At 31 December 2023

98,324
151,533
249,857



NET BOOK VALUE



At 31 December 2023
60,286
60,469
120,755



At 31 March 2023
56,335
53,375
109,710

Page 27


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

           13.TANGIBLE FIXED ASSETS (CONTINUED)


Company









Fixtures and fittings
Computer equipment
Total

£
£
£

COST OR VALUATION


At 1 April 2023
190,774
378,351
569,125


Additions
23,255
29,314
52,569


Disposals
(55,419)
(195,663)
(251,082)



At 31 December 2023

158,610
212,002
370,612



DEPRECIATION


At 1 April 2023
134,439
324,976
459,415


Charge for the 9 months on owned assets
12,185
17,264
29,449


Disposals
(48,300)
(190,707)
(239,007)



At 31 December 2023

98,324
151,533
249,857



NET BOOK VALUE



At 31 December 2023
60,286
60,469
120,755



At 31 March 2023
56,335
53,375
109,710






Page 28


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

14.


FIXED ASSET INVESTMENTS

Company








Unlisted investments

£



COST


At 1 April 2023
100



At 31 December 2023

100






NET BOOK VALUE



At 31 December 2023
100



At 31 March 2023
100


SUBSIDIARY UNDERTAKING


The following was a subsidiary undertaking of the company:

Name

Principal activity

Class of shares

Holding

Maritime Service Line UK Limited
Provision of freight forwarding services
Ordinary
75%

The registered office for the above entity is Ocean House, Marston Park, Tamworth, Staffordshire, B78 3HU.

Page 29


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

15.


DEBTORS

Group
31 December
Group
31 March
Company
31 December
Company
31 March
2023
2023
2023
2023
£
£
£
£


Trade debtors
4,698,397
6,541,987
4,644,308
6,064,273

Amounts owed by group undertakings
5,020,078
-
3,016,873
15,823

Other debtors
341,046
382,746
330,173
364,833

Prepayments and accrued income
104,261
67,954
104,261
67,954

Tax recoverable
147,343
157,728
147,343
157,728

Deferred taxation
18,630
19,911
18,630
19,911

10,329,755
7,170,326
8,261,588
6,690,522


In the year a loan was issued between Cargo Marketing Services Limited and MSL Corporate SL. 3.25% interest is charged on the loan and this loan will be repayable in financial year ending 31 December 2024.


16.


CASH AND CASH EQUIVALENTS

Group
31 December
Group
31 March
Company
31 December
Company
31 March
2023
2023
2023
2023
£
£
£
£

Cash at bank and in hand
1,681,055
7,044,946
1,402,089
5,018,485



17.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
31 December
Group
31 March
Company
31 December
Company
31 March
2023
2023
2023
2023
£
£
£
£

Trade creditors
3,094,507
4,686,210
3,089,489
4,675,647

Corporation tax
-
161,008
-
-

Other taxation and social security
209,213
98,828
209,213
98,828

Other creditors
90,460
651,379
76,387
606,742

Accruals and deferred income
453,545
828,026
447,445
817,455

3,847,725
6,425,451
3,822,534
6,198,672


Page 30


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

18.


FINANCIAL INSTRUMENTS

Group
31 December
Group
31 March
Company
31 December
Company
31 March
2023
2023
2023
2023
£
£
£
£

FINANCIAL ASSETS

Financial assets measured at fair value through profit or loss
-
-
100
100

Financial assets that are debt instruments measured at amortised cost
11,865,959
13,969,679
9,534,298
11,463,414

11,865,959
13,969,679
9,534,398
11,463,514


FINANCIAL LIABILITIES

Financial liabilities measured at amortised cost
4,059,362
6,165,615
4,046,348
6,099,844


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


Financial assets that are debt instruments measured at amortised cost comprise cash at bank, trade debtors, amounts owed by group undertakings, other debtors and director's loan accounts.  


Financial liabilities measured at amortised cost comprise trade creditors, amounts owed by group undertakings, amounts owed by participating interests, other creditors and accruals. 
Page 31


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

19.


DEFERRED TAXATION


Group



2023
2023


£

£






At beginning of year
19,911
42,879


Charged to profit or loss
(1,281)
(22,968)



AT END OF YEAR
18,630
19,911

Company


2023
2023


£

£






At beginning of year
19,911
40,730


Charged to profit or loss
(1,281)
(20,819)



AT END OF YEAR
18,630
19,911

The deferred tax asset is made up as follows:

Group
31 December
Group
31 March
Company
31 December
Company
31 March
2023
2023
2023
2023
£
£
£
£

Accelerated capital allowances
(22,748)
(19,475)
(22,748)
(19,475)

Other short term timing differences
41,378
39,386
41,378
39,386

18,630
19,911
18,630
19,911


20.


SHARE CAPITAL

31 December
31 March
2023
2023
£
£
ALLOTTED, CALLED UP AND FULLY PAID



450,900 (31 March 2023: 450,900) Ordinary shares of £1.00 each
450,900
450,900


Page 32


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

21.


RESERVES

Share premium account

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Profit and loss account

Profit and loss account reserve relates to accumulated profits less distributions to shareholders.


22.


PENSION COMMITMENTS

The group 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 group to the fund and amounted to £179,509 (31 March 2023: £204,029). Contributions totalling £30,000 (31 March 2023: £53,724) were payable to the fund at the Balance Sheet date and are included within other creditors. 


23.


COMMITMENTS UNDER OPERATING LEASES

At 31 December 2023 the Group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
31 December
Group
31 March
Company
31 December
Company
31 March
2023
2023
2023
2023
£
£
£
£

Land and buildings

Not later than 1 year
161,067
175,400
161,067
175,400

Later than 1 year and not later than 5 years
177,192
360,800
177,192
360,800

338,259
536,200
338,259
536,200




Group
31 December
Group
31 March
Company
31 December
Company
31 March
2023
2023
2023
2023
£
£
£
£

Other leases

Not later than 1 year
12,731
19,479
12,731
12,405

Later than 1 year and not later than 5 years
22,094
18,185
22,094
18,185

34,825
37,664
34,825
30,590

Page 33


CARGO MARKETING SERVICES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 DECEMBER 2023

24.


RELATED PARTY TRANSACTIONS

During the year Cargo Marketing Services Limited sold services totalling £Nil- (31 March 2023: £446,030) and purchased services totalling £Nil- (31 March 2023: £5,781) from Maritime Service Line UK Limited, a subsidiary undertaking. As at 31 December 2023 the company was owed £Nil- (31 March 2023: £15,823) from Maritime Service Line UK Limited.
All transactions with group companies are conducted at arms length on normal commercial terms.
During the year Cargo Marketing Services Limited sold services totalling £78,396 (31 March 2023: £68,075) and purchased services totalling £289,686 (31 March 2023: £114,391) from SAA Logistics, a company of which Juan Olarieta's father is a director. As at 31 December 2023 the company owed £16,076 (31 March 2023: £21,097) to SAA Logistics.
In the year a loan was issued to MSL Corporate SL for £3,000,000. As at 31 December 2023, the loan repayable amounted to £3,016,873.


25.


CONTROLLING PARTY

The group is controlled by MSL Corporate SL, who owns 100% of the issued share capital of the parent company, Cargo Marketing Services Limited. The principal address of MSL Corporate SL is C/SOL 139 - Poligono Industrial De Sedavi, Valencia, Spain.

 
Page 34