Company registration number 01025125 (England and Wales)
GAC LOGISTICS (UK) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
GAC LOGISTICS (UK) LIMITED
COMPANY INFORMATION
Directors
Mr N Browne
(Appointed 1 January 2023)
Mr C Fredriksson
(Appointed 1 October 2023)
Mr T Okbo
Company number
01025125
Registered office
301 World Freight Terminal
Manchester Airport
Manchester
England
M90 5BF
Auditor
Azets Audit Services
5 Whitefriars Crescent
Perth
United Kingdom
PH2 0PA
GAC LOGISTICS (UK) LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
GAC LOGISTICS (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
15,287
18,287
Current assets
Debtors
6
302,391
341,950
Cash at bank and in hand
27,286
8,480
329,677
350,430
Creditors: amounts falling due within one year
7
(510,353)
(402,949)
Net current liabilities
(180,676)
(52,519)
Total assets less current liabilities
(165,389)
(34,232)
Creditors: amounts falling due after more than one year
8
(1,035,000)
(1,215,000)
Provisions for liabilities
9
-
0
(115,750)
Net liabilities
(1,200,389)
(1,364,982)
Capital and reserves
Called up share capital
10
6,540,960
6,540,960
Profit and loss reserves
(7,741,349)
(7,905,942)
Total equity
(1,200,389)
(1,364,982)

The notes on pages 3 to 11 form part of these financial statements.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 16 May 2024 and are signed on its behalf by:
Mr N Browne
Director
Company Registration No. 01025125
GAC LOGISTICS (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
6,540,960
(8,621,007)
(2,080,047)
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
715,065
715,065
Balance at 31 December 2022
6,540,960
(7,905,942)
(1,364,982)
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
164,593
164,593
Balance at 31 December 2023
6,540,960
(7,741,349)
(1,200,389)

The notes on pages 3 to 11 form part of these financial statements.

GAC LOGISTICS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

GAC Logistics (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 301 World Freight Terminal, Manchester Airport, Manchester, England, M90 5BF.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

Notwithstanding net current liabilities of £181k and net liabilities of £1,200k as at 31 December 2023, the financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.true

 

The directors have prepared cash flow forecasts to 31 December 2024 which indicate that, taking account of plausible downside scenarios, the company will have sufficient funds, through funding from its ultimate parent company (Gulf Agency Company Limited), to meet its liabilities as they fall due for that period and extended to at least 12 months from the date of approval of these financial statements.

 

Those forecasts are dependent on the company's ultimate parent company, Gulf Agency Company Limited not seeking repayment of the amounts currently due to the group, which at 31 December 2023 amounted to £1,035k and providing additional financial support for that period. The Gulf Agency Company Limited has indicated its intention to continue to make available such funds as are needed by the company, and that it does not intent to seek repayment of these amounts for at least 12 months from the date of approval of these financial statements. As with any company placing reliance on other group entities for financial support, the directos acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.

 

Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

1.3
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

GAC LOGISTICS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.4
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:

Software
Over 3 to 5 years - Straight Line
1.5
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 land and buildings
Over the lease term
Plant and equipment
Over 3 to 5 years - Straight Line
Fixtures and fittings
Over 3 to 5 years - Straight Line
Computers
Over 3 to 5 years - Straight Line

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 credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

1.7
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.

1.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

GAC LOGISTICS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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.

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

GAC LOGISTICS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
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 when the company has 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.

1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
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.

1.13
Retirement benefits

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

1.14
Leases

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 leases asset are consumed.

1.15
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.

GAC LOGISTICS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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 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 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.

3
Employees

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

2023
2022
Number
Number
Service
10
10
4
Intangible fixed assets
Other
£
Cost
At 1 January 2023 and 31 December 2023
13,634
Amortisation and impairment
At 1 January 2023 and 31 December 2023
13,634
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
GAC LOGISTICS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
125,159
393,659
518,818
Additions
-
0
1,616
1,616
At 31 December 2023
125,159
395,275
520,434
Depreciation and impairment
At 1 January 2023
125,159
375,372
500,531
Depreciation charged in the year
-
0
4,616
4,616
At 31 December 2023
125,159
379,988
505,147
Carrying amount
At 31 December 2023
-
0
15,287
15,287
At 31 December 2022
-
0
18,287
18,287
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
276,296
308,802
Amounts owed by group undertakings
18,263
9,401
Other debtors
-
0
2,176
294,559
320,379
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
7,832
21,571
Total debtors
302,391
341,950

Amounts owed by group undertakings are repayable on demand and accrue no interest.

GAC LOGISTICS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
13,288
-
0
Trade creditors
237,266
234,231
Amounts owed to group undertakings
158,483
44,264
Taxation and social security
8,311
17,904
Other creditors
93,005
106,550
510,353
402,949

Amounts owed to group undetakings are repayable on demand and accrue no interest.

 

The Company benefits from a Cash Management Agreement with GAC Group (Holdings) and an additional overdraft of $550,000.

8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
1,035,000
1,215,000

There is no fixed repayment schedule on this loan and it it not the intention of the parent company to demand full repayment in the next 12 months. Interest is accruing at a rate of LIBOR + 3% per annum.

9
Provisions for liabilities
2023
2022
£
£
-
115,750
Movements on provisions:
£
At 1 January 2023
115,750
Reversal of provision
(115,750)
At 31 December 2023
-

The dilapidations provision relates to the directors' best estimate of costs expected to be incurred upon vacation of the premises leased by the Company. The full provision was reversed in the year due to the lease being transferred to a related party.

GAC LOGISTICS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
10
Called up share capital
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
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
6,140,960
6,140,960
6,140,960
6,140,960
Preference shares classified as equity
6,140,960
6,140,960
Total equity share capital
6,540,960
6,540,960

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

 

During 2019 £6,140,960 debt was converted to equity and 6,140,960 redeemable preference shares of £1 were issues at par in lieu of the debt. These shares are redeemable at the discretion of the Company only (not the holder).

11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Neil Morrison
Statutory Auditor:
Azets Audit Services
12
Operating lease commitments
Lessee

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

2023
2022
£
£
-
0
-
0

During the year £nil recognised as an expense in the profit and loss account in respect of operating leases (2022: £97,162).

GAC LOGISTICS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
13
Parent company

The company's immediate and ultimate parent undertaking is the Gulf Agency Company Limited, registered in Liechtenstein. Copies of the consolidated financial statements can be obtained from Gulf Agency Company Ltd, P.O Box 18006, Jebel Ali Free Zone, Dubai, United Arab Emirates.

The company is ultimately controlled by the Stablehold Foundation, which is situated in Liechtenstein.

14
Contingent Liabilities

There were contingent liabilities in respect of guarantees entered into in the normal course of business amouting to £146,000 as at 31 December 2023 (2022: £206,000).

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