Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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FREIGHT INVESTOR (HOLDINGS) LIMITED
COMPANY INFORMATION
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FREIGHT INVESTOR (HOLDINGS) LIMITED
CONTENTS
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FREIGHT INVESTOR (HOLDINGS) LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their strategic report, which is followed by the directors' report, together with the audited financial statements for the year ended 31 December 2023.
In the recent year, the Group's core operations showed a strong performance, boosted by improved results from Freight Investor Services (FIS) and steady performance in the Freight Forwarding Agreement and Iron Ore markets, alongside exceptional growth in our Battery Metals desk. The Group’s results presented in the consolidated statement of comprehensive income were influenced by several non-recurring items. These include a reversal of a provision recorded in the previous year, coupled with a one-time provision for bad debts recognized in the current year. Additionally, the financial results were impacted by an unfavourable foreign exchange fluctuation, expenditures associated with upgrades to the computer system, and a charitable contribution. The various Group subsidiaries have each continued to develop new clients and new opportunities throughout the year.
The Group continued its investment into IT systems, specifically replacing outdated server hardware/software in line with best business practices and current cyber security fundamentals. The Group are taking the opportunity to reassess external investments that are held to fortify their financial position for long-term success. The Danish office in Copenhagen has started to execute a business plan primarily focused on Carbon Emissions and Green energy, which continues to be a development area. Financial key performance indicators 31 December 31 December 2023 2022 £ £ Operating Profit/(Loss) 588,775 6,019,536 Net assets 42,075,676 41,875,917 Cash 43,575,600 45,341,307 Non-financial key performance indicators 1. Employee Well-being and Engagement: Employee satisfaction and engagement are crucial indicators of our company's performance. We measure these through employee surveys, turnover rates, and participation in training and development programs. Ensuring a positive work environment fosters productivity, innovation, and retention, ultimately benefiting our subsidiaries' operations and overall performance. 2. Health and Safety Standards: Maintaining high health and safety standards is paramount across all our subsidiaries. Prioritising the health and well-being of our employees creates a safer workplace and mitigates operational risks. 3. Supplier and Vendor Relationships: Strong relationships with suppliers and vendors are essential for ensuring the smooth operation of our subsidiaries. We assess indicators such as supplier satisfaction and supplier diversity. Collaborative partnerships support our subsidiaries' growth objectives.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4. Community Engagement and Social Responsibility:
Community engagement and social responsibility are integral to our corporate ethos. We measure our impact through charitable contributions, and participation in local initiatives. Building strong ties with the communities in which we operate fosters goodwill, enhances our reputation, and creates long-term value for all stakeholders. Buiness review (continued) 5. Corporate Governance and Ethical Conduct: Maintaining high standards of corporate governance and ethical conduct is fundamental to our operations. We track indicators such as compliance with regulatory requirements, adherence to ethical codes of conduct, and the composition of our board of directors. Upholding integrity and transparency strengthens stakeholder trust and ensures accountability at all levels of the organisation. In conclusion, Freight Investor (Holdings) Limited is committed to considering the interests of stakeholders beyond financial performance, as mandated by Section 172(1)(A) of the Companies Act 2006. By prioritizing non-financial performance indicators such as employee well-being, health and safety standards, supplier relationships, community engagement, and corporate governance, we aim to create sustainable value for our subsidiaries, shareholders, and broader stakeholders. Through continuous monitoring, evaluation, and improvement of these indicators, we are dedicated to promoting the success of the company and fulfilling our responsibilities to all stakeholders.
The Market that the company operates in has several areas of risk that we attempt to minimise where we can. Examples of this are competing brokers dropping commission rates to attempt to gain market share, clients leaving the market for a period, overall market volatility and certain margins tied to the underlying market rates which is out of our control.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the Group’s policies approved by the Directors. The Group does not use derivative financial instruments for speculative purposes.
Foreign Exchange risk The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, principally in the US$ versus GBP exchange rate. The Group uses foreign exchange forward and options contracts to hedge these exposures. These contracts cover varying percentages of the Group’s forward income, depending on the Directors’ view of the exchange rate direction. Liquidity risk The Group mitigates this risk by the use of budgeting with particular emphasis on the planning and maintenance of cash balances. Credit risk The Group’s principal financial assets are bank balances and cash, debtors and investments. The Group’s credit risk is primarily attributable to its trade and other debtors. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The Group has no significant concentration of credit risk, with exposure spread over a large number of clients.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
As a group holdings company, Freight Investor (Holdings) Limited are committed to fulfilling our obligations under Section 172(1)(A) of the Companies Act 2006, which requires us to promote the success of the company. This report outlines our approach to in the execution of our duties, particularly in the context of our investments and subsidiaries in Denmark and the UK.
1. Stakeholder Consideration: Our primary responsibility is to act in the best interests of our stakeholders, which include shareholders, employees, customers, suppliers, and the communities in which we operate. We recognize that each stakeholder group plays a crucial role in our success, and we are committed to balancing their interests in our decision-making processes. 2. Investment Strategy: In managing our investments, we prioritize long-term value creation while mitigating risks and maximizing returns for our shareholders. Our investment strategy is guided by thorough due diligence, risk assessment, and adherence to ethical standards. We evaluate potential investments based on their alignment with our strategic objectives, financial viability, and potential impact on stakeholders. 3. Subsidiaries in Denmark and the UK: We acknowledge the unique challenges and opportunities presented by our subsidiaries in Denmark and the UK. While our UK subsidiary has demonstrated profitability and contributes positively to our overall financial performance, we continue our efforts to develop Danish subsidiary and remain committed to supporting it. 4. Stakeholder Engagement: We maintain open and transparent communication channels with our stakeholders to ensure their voices are heard and their interests are considered in our decision-making processes. This includes regular dialogue with shareholders, employee feedback mechanisms, and engagement with customers, suppliers, and local communities. By actively soliciting feedback and addressing concerns, we strive to foster trust, loyalty, and mutually beneficial relationships with all stakeholders. 5. Ethical Conduct and Corporate Governance: Ethical conduct and strong corporate governance are integral to our operations and essential for maintaining stakeholder trust and confidence. We adhere to high ethical standards, promote transparency, and comply with all relevant laws, regulations, and industry standards. Our board of directors oversees our corporate governance practices and ensures that decisions are made in the best interests of the company and its stakeholders. In conclusion, the directors of Freight Investor (Holdings) Limited are committed to promoting the success of the company for the benefit of its stakeholders, as required by Section 172(1)(A) of the Companies Act 2006. We recognise the importance of considering the interests of all stakeholders in our decision-making processes, particularly in managing our investments and subsidiaries in Denmark and the UK. By prioritizing stakeholder engagement, ethical conduct, and long-term value creation, we aim to create sustainable growth and maximize value for our shareholders while fulfilling our broader responsibilities to society.
This report was approved by the board on 24 April 2024 and signed on its behalf.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
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.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙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 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the Group is that of commodity derivatives broking. The Group performs this activity in the United Kingdom, Denmark and via its branch in the USA.
The profit for the year, after taxation, amounted to £274,261 (2022 - £5,746,215).
The directors have highlighted in the strategic report on pages 1 to 4, a review of current year results, future
outlook expectations, risks and key performance indicators for the company.
The directors who served during the year were:
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FREIGHT INVESTOR (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The auditors, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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FREIGHT INVESTOR (HOLDINGS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FREIGHT INVESTOR (HOLDINGS) LIMITED
We have audited the financial statements of Freight Investor (Holdings) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
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.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FREIGHT INVESTOR (HOLDINGS) LIMITED (CONTINUED)
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FREIGHT INVESTOR (HOLDINGS) LIMITED (CONTINUED)
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:
In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered: • the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities; • the nature of the company, including its management structure and control systems (including the opportunity for management to override such controls); • management’s incentives and opportunities for fraudulent manipulation of the financial statements including the company’s remuneration and bonus policies and performance targets; and • the industry and environment in which it operates. We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006. Based on this understanding we identified the following matters as being of significance to the entity: • laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax and pension legislation and distributable profits legislation; • the timing of the recognition of commercial income; • compliance with legislation relating to GDPR, health and safety, operating licenses, solvency requirements and regulatory bodies; • management bias in selecting accounting policies and determining estimates; • inappropriate journal entries; • manipulation of specific performance measures to meet remuneration targets; • recoverability of debtors; and • the requirement to impair fixed assets and the amount of any such impairment. We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: • enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations and discussion with the same regarding any known or suspected instances of non- compliance and fraud; • enquiries with the same concerning any actual or potential litigation or claims; • inspection of relevant legal correspondence;
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FREIGHT INVESTOR (HOLDINGS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FREIGHT INVESTOR (HOLDINGS) LIMITED (CONTINUED)
• assessment of matters reported to management and the result of the subsequent investigation;
• obtaining an understanding of the relevant controls during the period and consideration of their implementation • obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year; • challenging assumptions made by management in their specific accounting policies and estimates, in particular in relation to depreciation of tangible fixed assets and impairment of investments; • identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or crediting revenue or cash; • assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding; • reviewing the financial statements for compliance with the relevant disclosure requirements; • performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud; • reviewing the minutes of Board meetings and correspondence with HMRC; and • evaluating the underlying business reasons for any unusual transactions. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
14th Floor
33 Cavendish Square
W1G 0PW
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FREIGHT INVESTOR (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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FREIGHT INVESTOR (HOLDINGS) LIMITED
REGISTERED NUMBER: 08443420
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 April 2024.
The notes on pages 18 to 39 form part of these financial statements.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
REGISTERED NUMBER: 08443420
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 18 to 39 form part of these financial statements.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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FREIGHT INVESTOR (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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FREIGHT INVESTOR (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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FREIGHT INVESTOR (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Company is a private company limited by shares, and is incorporated in England and Wales with the registered number 08443420. The registered office is 80 Cannon Street, London EC4N 6HL.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the 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. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
The directors consider that there are no other key management personnel other than the directors of the Company and its subsidiary company, Freight Investor Services Limited.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: - the amount of revenue can be measured reliably; - it is probable that the Group will receive the consideration due under the contract; - the stage of completion of the contract at the end of the reporting period can be measured reliably; and - the costs incurred and the costs to complete the contract can be measured reliably. Turnover represents the amounts receivable from customers and related undertakings excluding value added tax on commission earned from arranging the sale of freight derivatives. Also included within turnover are brand royalties, service fee income and secondment fee income. Commission on cleared trades is recognised in the month that the deal is agreed. Cleared trades that settle after the balance sheet date are treated as accrued income and is discounted using an appropriate market rate. All the other commissions are recognised in the month of settlement. Those commissions received in advance of settlement from customers are treated as deferred income. Fees received from brand royalties and services fees are recognised in accordance with approved contracts.
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.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, 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.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Page 24
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group makes estimates and assumptions concerning the future. Actual results may differ from these estimates. 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.
Page 26
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 27
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 28
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 29
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
12.Taxation (continued)
There were no factors that may affect future tax charges.
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 loss after tax of the parent Company for the year was £
Page 30
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 31
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 32
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 33
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 34
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 35
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Net obligations under finance leases and hire purchase contracts are secured over the assets which they relate to.
All net obligations under finance leases and hire purchase contracts are due within 5 years.
Page 36
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 37
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Foreign exchange reserve
Other reserves
Profit and loss account
The Group operates a defined contributions pension scheme. The assets of the scheme are held seperately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £245,184 (2022: £239,086). Contributions totalling £32,176 (2022: £29,677) were payable to the fund at the balance sheet date and are included in creditors.
Page 38
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FREIGHT INVESTOR (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
29.Other financial commitments
The company has entered into forward currency contracts amounting to £3,191,099 (2022: £NIL) as at the balance sheet date.
The Group considers J W Banaszkiewicz, a director, to be the ultimate controlling party by virtue of his 100% shareholding in the Company in both the current and prior year.
Page 39
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