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Registered number: 14524620









UML SHERLOCK LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2023

 
UML SHERLOCK LIMITED
 
 
COMPANY INFORMATION


Directors
R. S. Kansagra (appointed 5 December 2022)
B. S. Kansagra (appointed 5 December 2022)
L. E. Cadji (appointed 5 December 2022)
L. L. Cadji (appointed 5 December 2022)
M. B. Enston (appointed 4 April 2024)
M. Kotsapas (appointed 4 April 2024)




Registered number
14524620



Registered office
Portland House
69-71 Wembley Hill Road

Wembley

HA9 8BU





 
UML SHERLOCK LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 21


 
UML SHERLOCK LIMITED
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the Company for the period ended 31 December 2023.
The Company’s principal activities was the ownership and operation of a product tanker which was delivered during the period.

Review of the business

The key performance indicators for the Company are as follows: 

2023
        $
Time charter equivalent income

10,741,901

EBITDA

8,428,199

Working capital*

1,774,888


*Working capital=Current assets less derivative assets and trade and other payables
The Company reported a successful first period of operation, generating a profit of $5,365,441 and reporting net assets of $12,915,442.

Principal risks and uncertainties
 
The Company’s risk exposure is managed at a Group level by a risk committee established by its parent company. 
The key risks applicable to the Company are:
 
Shipping market risk
The cyclical and uncertain nature of the shipping industry increases the risk of a downward pressure on freight rates in a market downturn. The vessel is managed by the Group’s commercial arm, who have established close links to the market, access to cargos in niche segments as well as developed very strong relationships with oil majors and traders in order to maximise revenues and minimise idle days. The vessel was placed on time charter during late 2023 for 2 years, reducing any exposure to a market downturn.
Market price risk
The inflationary pressures on bunker prices has been minimised by placing the vessel on time charter during the period. The Company also closely monitors its expenditure by placings its vessel with an in-house technical manager to ensure better oversight and control over its operational cost base.
Counterparty risk
The Company manages counterparty risk by ensuring that its cash is held with financial institutions with a strong credit rating as well as fixing its vessels on charters with reputable counterparties and maintaining robust credit-control procedures. 
Interest rate risk
The Company monitors its interest rate exposure on an ongoing basis and will look to hedge its exposure when market rates are more favourable.

Page 1

 
UML SHERLOCK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Principal risks and uncertainties (continued)
 
Financing and capital risk
The Company maintains conservative loan to value ratios and has access to positive reserves which enables it to manage its liquidity.


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



L. E. Cadji
Director
Date: 27 June 2024

Page 2

 
UML SHERLOCK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

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

The Company was incorporated on 5 December 2022. The financial statements are for the period from incorporation.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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


select suitable accounting policies and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The profit for the period, after taxation, amounted to $5,365,441.

Directors

The directors who served during the period were:

R. S. Kansagra (appointed 5 December 2022)
B. S. Kansagra (appointed 5 December 2022)
L. E. Cadji (appointed 5 December 2022)
L. L. Cadji (appointed 5 December 2022)

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'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's auditors are aware of that information.

Page 3

 
UML SHERLOCK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Auditors

The auditorsBDO 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.
 





L. E. Cadji
Director
Date: 27 June 2024

Page 4

 
UML SHERLOCK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UML SHERLOCK LIMITED
 

Opinion on the financial statements

In our opinion the financial statements:

give a true and fair view of the state of the Company’s affairs as at 31 December 2023 and of its result for the period 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.

We have audited the financial statements of UML Sherlock Limited (“the Company”) for the period ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and notes to the financial statements, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice). 

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.
Page 5

 
UML SHERLOCK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UML SHERLOCK LIMITED
 


We have nothing to report in this regard.

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic report and the Directors’ report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors’ report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report and the Directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or 

Responsibilities of Directors

As explained more fully in the Directors’ Responsibilities Statement, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

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:

Non-compliance with laws and regulations

Page 6

 
UML SHERLOCK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UML SHERLOCK LIMITED
 

Based on:
Our understanding of the Company and the industry in which it operates;
Discussion with management and those charged with governance; and
Obtaining and understanding of the Company’s policies and procedures regarding compliance with laws and regulations
we considered the significant laws and regulations to be the applicable accounting framework, company law and tax legislation.

The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the health and safety legislation, anti-bribery, maritime law, and certain aspects of relevant applicable legislation in countries where the Company operates its vessel.

Our procedures in respect of the above included:
reviewing minutes of meetings of those charged with governance for any instances of non-compliance with laws and regulations;
reviewing correspondence with tax authorities for any instances of non-compliance with laws and regulations;
reviewing financial statement disclosures and agreeing to supporting documentation; and
reviewing legal expenditure accounts to understand the nature of expenditure incurred.

Fraud
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
enquiry with management and those charged with governance regarding any known or suspected instances of fraud;
obtaining an understanding of the Company’s policies and procedures relating to:
°Detecting and responding to the risks of fraud; and 
°Internal controls established to mitigate risks related to fraud. 
review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;
discussion amongst the engagement team as to how and where fraud might occur in the financial statements; and
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

Based on our risk assessment, we considered the areas most susceptible to fraud to be revenue recognition and management override of controls.

Our procedures in respect of the above included testing a sample of journal entries throughout the year, which met defined risk criteria, by agreeing to supporting documentation.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.  
 Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

Page 7

 
UML SHERLOCK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UML SHERLOCK LIMITED
 

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.



Daniel Henwood (Senior statutory auditor)

  
for and on behalf of

BDO LLP

 
BDO Statutory Auditor
Reading
27 June 2024

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). 
Page 8

 
UML SHERLOCK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023

5 December 2022 to 31 December 2023
Note
$

  

Revenue
 4 
13,749,057

Voyage expenses
  
(3,007,156)

Time charter equivalent income
  
10,741,901

Vessel running expenses
  
(2,254,572)

Depreciation
  
(1,172,321)

Administrative expenses
  
(59,130)

Operating profit
 5 
7,255,878

Interest receivable and similar income
  
3,677

Interest payable and similar expenses
 8 
(1,894,114)

Profit before tax
  
5,365,441

Tax on profit
  
-

Profit for the financial period
  
5,365,441

There was no other comprehensive income for 2023.

The notes on pages 12 to 21 form part of these financial statements.

Page 9

 
UML SHERLOCK LIMITED
REGISTERED NUMBER: 14524620

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
Note
$

  

Vessel
 10 
34,090,680

  
34,090,680

Current assets
  

Inventories
  
48,859

Trade and other receivables
 11 
1,216,342

Cash at bank and in hand
 12 
1,006,589

  
2,271,790

Creditors: amounts falling due within one year
 13 
(1,824,820)

Net current assets
  
 
 
446,970

Creditors: amounts falling due after more than one year
 14 
(21,622,208)

Net assets
  
12,915,442


Capital and reserves
  

Called up share capital 
 16 
1

Contributed surplus
  
10,250,000

Retained earnings
  
2,665,441

  
12,915,442


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




M. Kotsapas
B. S. Kansagra
Director
Director


Date: 27 June 2024

The notes on pages 12 to 21 form part of these financial statements.

Page 10

 
UML SHERLOCK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023


Called up share capital
Contributed surplus
Retained earnings
Total equity

$
$
$
$


Comprehensive income for the period

Profit for the period
-
-
5,365,441
5,365,441


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(2,700,000)
(2,700,000)

Shares issued during the period
1
-
-
1

Contribution in the period
-
10,250,000
-
10,250,000


Total transactions with owners
1
10,250,000
(2,700,000)
7,550,001


At 31 December 2023
1
10,250,000
2,665,441
12,915,442

The notes on pages 12 to 21 form part of these financial statements.

Page 11

 
UML SHERLOCK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

1.


General information

UML Sherlock Limited is a private company, limited by shares, registered in England and Wales.  The Company's registered number can be found on the balance sheet, and its registered office is Portland House, 69-71 Wembley Hill Road, Middlesex, HA9 8BU.

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 101 'Reduced Disclosure Framework'  and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

Page 12

 
UML SHERLOCK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
 - paragraph 79(a)(iv) of IAS 1;
 - paragraph 73(e) of IAS 16 Property, Plant and Equipment;
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
the requirements of paragraph 74A(b) of IAS 16
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.

This information is included in the consolidated financial statements of Union Maritime Limited as at 31 December 2023 and these financial statements may be obtained from The Registrar of Companies.

  
2.3

Going concern

The Company reports net assets of $12,915,442 and net current assets (excluding current portion of debt service) of $1,774,888 at the balance sheet date. The Directors review cashflow forecasts and closely monitor TCE rates and breakevens to ensure the Company will generate sufficient working capital and cash flows to continue in operational existence and have, as a result, prepared the financial statements on a going concern basis.

Page 13

 
UML SHERLOCK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is USD.

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.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

Revenue is derived from chartering its vessel to third parties on either time charters or voyage charters.
Revenue derived from time charters is separated between the lease element of the predetermined rentals and the service element, based on the observable market rate for stand-alone bareboat charter at each contract inception. The service element is the difference between the equivalent bareboat rate and the agreed charter hire. The revenue is recognised concurrently.
Revenue derived from voyage charters is adjusted for off-hire days and is recognised daily as it accrues, on a straight-line basis over the period of the contract.
Contract assets are recognised when income has been earned but not yet received. Contract liabilities are recognised when billing and payment occur in advance of the provision of a service. These represent the difference between cumulative revenue recognised and the cumulative amounts billed for the contracts in place for the Group's shipping operations.

 
2.6

Interest income

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

 
2.7

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.

Page 14

 
UML SHERLOCK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Inventories

Inventories comprise bunkers and lubricants on board vessel. Inventories are recognised at the lower of cost and net realisable value on a first-in, first-out basis.

  
2.9

Vessel

The vessel is stated at cost less accumulated depreciation and any provisions for impairment. Depreciation is provided on the basis that the book value of the vessel, less any estimated residual value, is written off on a straight line basis over the remaining useful economic life, taken to be 25 years from the build date, to an estimated residual value based on scrap rates at each balance sheet date.
Dry-docking costs are capitalised and written off over the estimated period to the next dry-docking. Unamortised costs are written off to profit or loss on disposal of the vessel.

 
2.10

Trade and other receivables

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.

 
2.11

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.

 
2.12

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

Page 15

 
UML SHERLOCK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.13

Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Financial liabilities
Fair value through profit or loss
Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship.
At amortised cost
Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.

  
2.14

Contributed surplus

Contributed surplus represents amounts invested in the Company in excess of the nominal value of
the share capital. There are no capital repayment terms and repayment is at the discretion of the
Company.

 
2.15

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.

Page 16

 
UML SHERLOCK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, management are required to make judgements, estimates and assumptions about the carrying amounts 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 estimates. The following summarises the judgements, estimates and assumptions that may cause amounts recognised or disclosed to change in following reporting periods:
Demurrage
When vessels on voyage charter are subject to delays a demurrage may be paid. This can occur due to factors such as port delays resulting in the vessel exceeding the allowed laytime per the charter party agreement at the ports visited. Estimation and judgements are required in ascertaining the most likely outcome of a particular voyage and actual outcomes may differ from estimates. We review such estimates and update them over the term of the voyage charter contract.
Asset impairment testing
The Company reviews its non-curent assets for impairment at each balance sheet date. If events or circumstances indicate that the carrying value may not be recoverable, the value is adjusted to the recoverable amount, determined by independent, third-party valuations, or if impractical or unavailable, by value in use calculations which require estimates to be made of future cash flows. If events or circumstances indicate that the carrying value may not be recoverable, the value is adjusted to the fair value. Any impairment is recognised in profit or loss.
Residual values and estimated remaining lives
The carrying value of vessels is depreciated over their expected useful life of 25 years from date of build to an estimated residual value. Changes in the remaining useful life of the vessels and the residual value, determined based on year end scrap rates, would result in an adjustment to the current and future rate of depreciation through profit or loss.


4.


Revenue

Revenue from contracts with customers
Revenue is derived from the chartering of the Company's vessel. Revenue attributable to the different types of contracts entered into is split out below:


2023
$

Voyage charter
7,662,772

Time charter revenue
6,086,285

13,749,057


Page 17

 
UML SHERLOCK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

2023
$

Depreciation of vessel
1,172,321

Audit fees
16,572

Cost of inventories recognised as an expense
1,438,072


6.


Employees




The Company has no employees other than the directors, who did not receive any remuneration.

All personnel working for the Company are employed by a related party who charge a management fee.


7.


Interest receivable

2023
$


Other interest receivable
3,677

3,677


8.


Interest payable and similar expenses

2023
$


Amortisation of loan arrangement fees
36,110

Finance leases and hire purchase contracts
1,853,882

Foreign exchange
4,122

1,894,114


9.


Taxation

The Company has entered into the U.K. tonnage tax regime, under which its shipping activities are taxed based on the net tonnage of the vessel operated. There were no profits outside of the tonnage tax regime.

Page 18

 
UML SHERLOCK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

10.


Vessel





Vessel

$



Cost or valuation


Additions
35,263,001



At 31 December 2023

35,263,001



Depreciation


Charge for the period on owned assets
1,172,321



At 31 December 2023

1,172,321



Net book value



At 31 December 2023
34,090,680

 The vessel is held under a contract with a purchase obligation.


11.


Trade and other receivables

2023
$


Trade debtors
1,089,025

Other receivables
38,084

Prepayments
89,233

1,216,342



12.


Cash and cash equivalents

2023
$

Cash at bank and in hand
1,006,589

1,006,589


Page 19

 
UML SHERLOCK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

13.


Creditors: Amounts falling due within one year

2023
$

Trade creditors
29,880

Amounts owed to group undertakings
325,403

Corporation tax
3,001

Contracts with purchase obligations
1,327,919

Accruals
138,617

1,824,820


Amounts owed to group undertakings are unsecured, interest free and repayable on demand.


14.


Creditors: Amounts falling due after more than one year

2023
$

Contracts with purchase obligations
21,622,208

21,622,208


The following liabilities were secured:

2023
$



Contracts with purchase obligations
23,262,761

Less: Unamortised loan arrangement fees
(312,634)

22,950,127

Details of security provided:

Contracts with purchase obligations represent bareboat charter-in arrangements that are a form of financing on the basis it is a sale and leaseback transaction which does not meet the criteria for a sale. Accordingly, the cash received in the transfer has been accounted for as a liability at amortised cost using the effective interest method, with the corresponding vessel being recorded at cost, less accumulated depreciation.
The obligation above is secured by, among other things, assignments of earnings and insurances and stock pledges and account charges in respect of the subject vessel.

Page 20

 
UML SHERLOCK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

15.


Lease receivables

At the balance sheet date, the Company had the following minimum lease rentals receivable for vessels chartered out under non-cancellable operating leases:

2023
$
Less than one year

16,251,000

Between one and two years

7,764,500

Between two and five years

-

24,015,500



16.


Share capital

2023
$
Allotted, called up and fully paid


1 Ordinary share of £1
1


The Company issued 1 Ordinary share of £1 at par on incorporation.


17.


Contributed surplus

Contributed surplus represents amounts invested in the Company in excess of the nominal value of the share capital. There are no capital repayment terms and repayment is at the discretion of the Company. 


18.


Controlling party

The Company is a wholly owned subsidiary of Union Maritime Limited (UML), whose registered office is at Portland House, 69-71 Wembley Hill Road, Middlesex, England, HA9 8BU.
UML is jointly owned by South Central Property Limited and Solai Holdings Limited. The ultimate parent company is considered to be South Central Property Limited as they have control at board level. There is not considered to be a single ultimate controlling party.
The smallest group for which the Company is a member and for which group financial statements are prepared is UML and the largest group is South Central Property Limited.

Page 21