A.Hartrodt (UK) Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 00951778 (England and Wales)
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Company Information
Directors
A Russ
F Wenzel
Secretary
N Woodward
Company number
00951778
Registered office
Hartrodt House
Green Man Lane
Hatton Cross
Middlesex
TW14 0PZ
Auditor
Moore Kingston Smith LLP
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Bankers
HSBC Bank Plc (Hayes)
2 Station Road
Hayes
Middlesex
UB3 4BY
Commerzbank AG
Valentinskamp 91
20354 Hamburg
Germany
Solicitors
Lightfoots
The Old Red Lion
1-3 High Street
Thame
Oxon
OX9 2BX
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 29
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Strategic Report
For the year ended 31 December 2023
Page 1

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

The core business of the company continues to be international air, sea and road freight transport, operating from offices in London and Liverpool.

73% of the business is sea freight related, 16% air freight and 11% road freight.

The reduction of turnover of £9.93m in 2023 compared to £17.68m in 2022 is related to general market conditions as rates on a global basis reduced to prior Pre-Covid levels.

Despite this, we achieved very satisfactory profits due to effective cost management.

Principal risks and uncertainties

The company did not encounter any major claims in 2023, all reasonable business risks are attempted to be minimised through control mechanisms.

 

The company and its employees work hard to comply with the required standards imposed by Governments, Regulatory Authorities and relevant international and local codes. They are committed to minimising such business risks through internal controls and staff training, making use of training external to the group where necessary.

 

The Directors consider the company's main commercial and financial risks to be:

 

 

Claims for international freight forwarding activities are insured with an appropriate insurer to minimise the risk to the company together with employing appropriate internal controls.

 

The company maintains foreign currency bank accounts to minimise exposure to exchange risks and is able to finance and operate the business without the help of 3rd parties such as banks.

 

Development and performance

In 2024 the company will keep focussing mainly on sea- and airfreight shipments and aim to increase volumes especially to and from Asia.

 

It is expected that turnover and profitability in 2024 will remain similar to 2023 however the global economic environment with some markets entering a recession might have a negative impact on our business and the overall business climate in the UK.

 

 

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 2

On behalf of the board

A Russ
Director
28 March 2024
A.Hartrodt (UK) Limited
Directors' Report
For the year ended 31 December 2023
Page 3

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

Principal activities

The principal activity of the company continued to be that of a shipping, forwarding and air cargo agent.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

A Russ
F Wenzel
Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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

On behalf of the board
A Russ
Director
28 March 2024
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Directors' Responsibilities Statement
For the year ended 31 December 2023
Page 4

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Independent Auditor's Report
To the Members of a.hartrodt (UK) Limited
Page 5
Opinion

We have audited the financial statements of a.hartrodt (UK) Limited (the 'company') for the year ended 31 December 2023 which comprise the Profit And Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Independent Auditor's Report (Continued)
To the Members of a.hartrodt (UK) Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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 or the Directors' Report.

 

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

 

Responsibilities of directors

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

 

In preparing the financial statements, the directors are responsible for assessing the 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.

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Independent Auditor's Report (Continued)
To the Members of a.hartrodt (UK) Limited
Page 7
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Independent Auditor's Report (Continued)
To the Members of a.hartrodt (UK) Limited
Page 8

Explanation as to what extent the audit was considered 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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 or intentional misrepresentations, or through collusion.

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 for no purpose other than to draw to the attention of the company's members those matters which we are required to include in an Auditor's report addressed to them. 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.

Jonathan Seymour (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
28 March 2024
Chartered Accountants
Statutory Auditor
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
A.Hartrodt (UK) Limited
Profit and Loss Account
For the year ended 31 December 2023
Page 9
2023
2022
Notes
£
£
Turnover
3
9,931,583
17,680,499
Cost of sales
(7,420,271)
(14,576,371)
Gross profit
2,511,312
3,104,128
Administrative expenses
(1,820,823)
(1,762,994)
Other operating income
65,526
23,629
Operating profit
4
756,015
1,364,763
Interest receivable and similar income
46,529
18,175
Interest payable and similar expenses
7
(1,681)
-
0
Profit before taxation
800,863
1,382,938
Tax on profit
8
(76,420)
(170,606)
Profit for the financial year
724,443
1,212,332

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

A.Hartrodt (UK) Limited
Statement of Comprehensive Income
For the year ended 31 December 2023
Page 10
2023
2022
£
£
Profit for the year
724,443
1,212,332
Other comprehensive income
Actuarial loss on defined benefit pension schemes
(97,000)
(556,175)
Total comprehensive income for the year
627,443
656,157
A.Hartrodt (UK) Limited
Balance Sheet
As at 31 December 2023
31 December 2023
Page 11
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,017,307
1,034,365
Investments
10
150,022
150,022
1,167,329
1,184,387
Current assets
Debtors
12
3,556,388
3,995,410
Cash at bank and in hand
785,039
652,695
4,341,427
4,648,105
Creditors: amounts falling due within one year
13
(1,473,358)
(2,424,537)
Net current assets
2,868,069
2,223,568
Total assets less current liabilities
4,035,398
3,407,955
Provisions for liabilities
Deferred tax liability
14
(17,489)
(17,489)
(17,489)
(17,489)
Net assets excluding pension liability
4,017,909
3,390,466
Defined benefit pension liability
15
-
0
-
0
Net assets
4,017,909
3,390,466
Capital and reserves
Called up share capital
16
1,000,000
1,000,000
Profit and loss reserves
3,017,909
2,390,466
Total equity
4,017,909
3,390,466
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
A Russ
Director
Company Registration No. 00951778
A.Hartrodt (UK) Limited
Statement of Changes in Equity
For the year ended 31 December 2023
Page 12
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1,000,000
1,734,309
2,734,309
Year ended 31 December 2022:
Profit for the year
-
1,212,332
1,212,332
Other comprehensive income:
Actuarial losses on defined benefit plans
-
(556,175)
(556,175)
Total comprehensive income for the year
-
656,157
656,157
Balance at 31 December 2022
1,000,000
2,390,466
3,390,466
Year ended 31 December 2023:
Profit for the year
-
724,443
724,443
Other comprehensive income:
Actuarial losses on defined benefit plans
-
(97,000)
(97,000)
Total comprehensive income for the year
-
627,443
627,443
Balance at 31 December 2023
1,000,000
3,017,909
4,017,909
A.Hartrodt (UK) Limited
Statement of Cash Flows
For the year ended 31 December 2023
Page 13
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
245,154
290,015
Interest paid
(1,681)
-
0
Income taxes paid
(147,606)
(221,676)
Net cash inflow from operating activities
95,867
68,339
Investing activities
Purchase of tangible fixed assets
(8,052)
(3,682)
Interest received
44,529
15,175
Net cash generated from investing activities
36,477
11,493
Net increase in cash and cash equivalents
132,344
79,832
Cash and cash equivalents at beginning of year
652,695
572,863
Cash and cash equivalents at end of year
785,039
652,695
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 14
1
Accounting policies
Company information

a.hartrodt (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hartrodt House, Green Man Lane, Hatton Cross, Middlesex, TW14 0PZ.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of a. hartrodt (GmbH & Co) KG a company incorporated in Germany. These consolidated financial statements are available from its registered office, Högerdamm 35, 20097 Hamburg, Germany.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

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

1.3
Turnover

Turnover consists of charges for shipping, forwarding and air cargo services and is recognised net of VAT. Import sales are recognised when goods clear Customs at the destination port. Export sales are recognised on the date items are shipped.

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 15
1.4
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:

Freehold buildings and building improvements
50 years straight line
Land and buildings Leasehold
50 years straight line
Fixtures, fittings & equipment
8 - 10 years straight line
Computer equipment
4 years straight line

Freehold land is not depreciated.

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.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.6
Impairment of fixed assets

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

1.7
Cash at bank and in hand

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

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 assets are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

 

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 16
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 17
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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.

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 18
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
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.

1.12
Retirement benefits

The company operates both a defined benefit scheme which is closed to new employees and future accrual, and a defined contribution stakeholder pension scheme.

 

For defined benefit schemes the amounts charged to operating profit are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the profit and loss account if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown as a net amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in the statement of comprehensive income.

 

Defined benefit schemes are funded, with the assets of the scheme held separately from those of the company in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined benefit asset or liability, calculated in accordance with the requirements of FRS 102 and net of the related deferred tax, is presented separately after other net assets on the face of the balance sheet. Any plan surplus is restricted to the extent that it is considered recoverable through reduced contributions in the future or through refunds from the plan.

 

For defined contribution schemes the amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 19
1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

1.14
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling as provided by the parent company and are not materially different to the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
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.

Critical judgements

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

Defined benefit scheme

The company has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors including: life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors using a qualified actuary in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See note 15 for the disclosures, including assumptions, relating to the defined benefit pension scheme.

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 20
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sea freight (including related services)
8,063,266
15,070,521
Air freight (including related services)
1,512,046
2,327,600
Trucking
328,267
254,378
Management charges
28,000
28,000
9,931,583
17,680,499
Analysis per statutory database
9,931,579
17,680,499
Statutory database analysis does not agree to the trial balance by:
4
-
2023
2022
£
£
Other significant revenue
Interest income
46,529
18,175
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
4,755
16,185
Fees payable to the company's auditor for the audit of the company's financial statements
34,760
34,815
Depreciation of owned tangible fixed assets
25,110
25,064
Operating lease charges
5,659
11,009
5
Employees

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

2023
2022
Number
Number
Sea freight
13
13
Air freight
3
3
Administration and management
9
8
Total
25
24
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
5
Employees
(Continued)
Page 21

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,133,992
1,100,325
Social security costs
111,797
120,256
Pension costs
87,455
84,520
1,333,244
1,305,101
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
256,853
231,854
Company pension contributions to defined contribution schemes
10,267
5,022
267,120
236,876

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
256,853
231,854
Company pension contributions to defined contribution schemes
10,267
5,022
7
Interest payable and similar expenses
2023
2022
£
£
Other interest
1,681
-
0
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
76,313
170,606
Adjustments in respect of prior periods
107
-
0
Total current tax
76,420
170,606
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
8
Taxation
(Continued)
Page 22

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

2023
2022
£
£
Profit before taxation
800,863
1,382,938
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
200,216
262,758
Tax effect of expenses that are not deductible in determining taxable profit
1,524
1,403
Tax effect of income not taxable in determining taxable profit
(500)
(570)
Effect of change in corporation tax rate
(4,773)
-
0
Group relief
(554)
-
0
Under/(over) provided in prior years
497
(107)
Taxation on pension contributions
(123,544)
(97,221)
Fixed asset timing differences
4,054
3,843
Provisions
(500)
500
Taxation charge for the year
76,420
170,606
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 23
9
Tangible fixed assets
Freehold buildings and building improvements
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
888,643
218,393
90,184
43,126
1,240,346
Additions
-
0
-
0
7,555
497
8,052
At 31 December 2023
888,643
218,393
97,739
43,623
1,248,398
Depreciation and impairment
At 1 January 2023
84,180
21,840
60,421
39,540
205,981
Depreciation charged in the year
9,931
4,368
9,571
1,240
25,110
At 31 December 2023
94,111
26,208
69,992
40,780
231,091
Carrying amount
At 31 December 2023
794,532
192,185
27,747
2,843
1,017,307
At 31 December 2022
804,463
196,553
29,763
3,586
1,034,365

 

10
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
11
150,022
150,022
Movements in fixed asset investments
Shares in group undertakings
£
Cost
At 1 January 2023 & 31 December 2023
150,022
Carrying amount
At 31 December 2023
150,022
At 31 December 2022
150,022
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 24
11
Subsidiaries

Separate company financial statements are required to be prepared by law. Consolidated financial statements for the A. Hartrodt (GmbH & Co.) KG Group are prepared and publicly available.

These financial statements are separate company financial statements for A. Hartrodt (UK) Limited.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
A. Hartrodt (Ireland) Limited
Ireland
Ordinary share capital
100.00

The investments in subsidiaries are all stated at cost.

12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
931,371
2,146,310
Amounts owed by group undertakings
2,517,164
1,748,470
Other debtors
46,823
50,996
Prepayments and accrued income
61,030
49,634
3,556,388
3,995,410

Trade debtors disclosed above are measured at amortised cost.

13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
382,601
784,490
Amounts owed to group undertakings
70,032
62,613
Corporation tax
1,420
72,606
Other taxation and social security
359,982
496,479
Other creditors
202,170
91,218
Accruals and deferred income
457,153
917,131
1,473,358
2,424,537
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 25
14
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
23,489
23,489
Provisions
(6,000)
(6,000)
17,489
17,489
There were no deferred tax movements in the year.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
44,705
55,648

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Defined benefit schemes

The company operates a defined benefit pension arrangement called the A. Hartrodt (UK) Limited Retirement Benefits Scheme ("the Scheme"). The assets of the Scheme are held separately from those of the company being invested in a separately administered and managed fund. The scheme provides retirement benefits on the basis of members' final salary. The plan is administered by trustees who are responsible for ensuring that the plan is sufficiently funded to meet current and future obligations. The contributions are determined by a qualified independent actuary on the basis of triennial valuations using the projected unit method.

 

The scheme was closed to new employees from 19 December 2001, although existing employees would continue to be eligible to join on completion of one year's service. The Scheme closed to further accrual from 30 June 2012 and, at this time, all remaining active members became deferred for the purposes of final salary accrual. As the scheme is closed to new employees, under the projected unit method, the current service cost will increase as the members of the scheme approach retirement.

 

A comprehensive actuarial valuation of the pension scheme, using the projected unit method, was carried out at 1 January 2023 by Atkin & Co, independent consulting actuaries.

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
15
Retirement benefit schemes
(Continued)
Page 26
2023
2022
Key assumptions
%
%
Discount rate
4.60
4.65
Mortality assumptions
2023
2022

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
21.4
21.1
- Females
23.9
23.8
Retiring in 20 years
- Males
22.6
22.4
- Females
25.3
25.2
2023
2022

Amounts recognised in the profit and loss account

£
£
Net interest on net defined benefit liability/(asset)
(2,000)
(3,000)
2023
2022

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(38,000)
662,000
Less: calculated interest element
144,000
97,000
Return on scheme assets excluding interest income
106,000
759,000
Actuarial changes related to obligations
63,000
(1,737,000)
Effect of changes in the amount of surplus that is not recoverable
(72,000)
1,534,175
Total costs
97,000
556,175
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
15
Retirement benefit schemes
(Continued)
Page 27

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

2023
2022
£
£
Present value of defined benefit obligations
3,202,000
3,097,000
Fair value of plan assets
(4,760,000)
(4,727,365)
Surplus in scheme
(1,558,000)
(1,630,365)
Restriction on scheme assets
1,558,000
1,630,365
Total liability recognised
-
-
2023

Movements in the present value of defined benefit obligations

£
Liabilities at 1 January 2023
3,097,000
Benefits paid
(100,000)
Actuarial gains and losses
63,000
Interest cost
142,000
At 31 December 2023
3,202,000

The defined benefit obligations arise from plans which are wholly or partly funded.

2023
£
Fair value of assets at 1 January 2023
4,727,000
Interest income
144,000
Return on plan assets (excluding amounts included in net interest)
(106,000)
Benefits paid
(100,000)
Contributions by the employer
95,000
At 31 December 2023
4,760,000

The actual return on plan assets was £114,000 (2022: -£662,000).

a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
15
Retirement benefit schemes
(Continued)
Page 28
2023
2022

Fair value of plan assets at the reporting period end

£
£
Equity instruments
828,000
1,856,000
Property
131,000
1,122,000
Bank
365,000
548,000
Bonds
3,512,000
802,000
Accrued contribution
-
399,365
4,836,000
4,727,365

 

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000,000
1,000,000
1,000,000
1,000,000
17
Financial commitments, guarantees and contingent liabilities

The company's bankers have given guarantees to H M Revenue & Customs on behalf of the company. As at 31 December 2023 these amounted to approximately £20,000.

18
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
8,824
1,156
Between two and five years
16,863
-
0
25,687
1,156
a.hartrodt (UK) Limited
A.Hartrodt (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 29
19
Related party transactions
Transactions with related parties

Group transactions

The company provides international air and ocean freight services in partnership with fellow members of the group controlled by A. Hartrodt (GmbH and Co) KG Transactions with the group are made on standard commercial terms.

 

The company has taken advantage of the exemption available not to disclose transactions entered into between two or more wholly owned subsidiary undertakings of the group.

20
Ultimate controlling party

The immediate and ultimate controlling parent undertaking and the smallest and largest group to consolidate these financial statements is a. hartrodt (GmbH & Co) KG a company incorporated in Germany. Copies of a. hartrodt (GmbH & Co) KG's consolidated financial statements are publicly available can be obtained from their registered office Högerdamm 35, 20097 Hamburg, Germany.

21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
724,443
1,212,332
Adjustments for:
Taxation charged
76,420
170,606
Finance costs
1,681
-
0
Investment income
(46,529)
(18,175)
Depreciation and impairment of tangible fixed assets
25,110
25,064
Pension scheme non-cash movement
(95,000)
(553,175)
Movements in working capital:
Decrease/(increase) in debtors
439,022
(450,429)
Decrease in creditors
(879,993)
(96,208)
Cash generated from operations
245,154
290,015
22
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
652,695
132,344
785,039
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