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REGISTERED NUMBER: 02298865 (England and Wales)









STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

SHIPCO TRANSPORT LIMITED

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Statement of Income and Retained Earnings 11

Balance Sheet 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


SHIPCO TRANSPORT LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: M Jaepelt
K H Jepsen



SECRETARY: Mrs A L Baker



REGISTERED OFFICE: Essex House
8 The Shrubberies
George Lane
South Woodford
London
E18 1BD



REGISTERED NUMBER: 02298865 (England and Wales)



INDEPENDENT AUDITORS: Caton Fry & Partners Limited (Statutory Auditor)
Essex House
7-8 The Shrubberies
George Lane
South Woodford
London
E18 1BD



BANKERS: National Westminster Bank Plc
32 East Street
Barking
Essex
IG11 8AB

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

REVIEW OF BUSINESS
Primary activities
The primary activities of Shipco Transport Ltd are worldwide shipping services.

Development in activities and finances
Operating profits before interests and taxes for the year is GBP 1,797,314, and the profit for the year amounts to GBP 1,411,548.

Equity totals GBP 1,435,918 as at 31.12.2023.

The cargo volume decreased in 2023 and freight rates dropped heavily.

Profit/loss for the year in relation to the expected developments
The financial results are lower than expected. The Board of Directors finds them very satisfactory due to market circumstances.

Outlook
The board of Directors expects a positive result in 2024 but not at the same level as in 2023. The global cargo volumes are significantly down from previous years and freight rates are close to historical low levels, thus impacting financial results throughout the industry. The situation around the Red Sea and increase in vessel capacity does create uncertainty in the shipping industry and our financial performance.

Key figures

2023 2022 2021 2020 2019
Revenue 15,581,546 31,062,999 27,707,149 10,333,449 9,818,821
Gross Profit 3,540,190 7,932,640 6,662,629 1,553,527 1444,446
Operating profit 1,797,314 6,232,921 5,002,334 270,310 167,677
Net financial 57,649 31,691 21,236 21,590 22,115
Profit/(loss) before tax 1,854,963 6,264,612 5,023,570 291,900 189,766
Profit/(loss) for the year 1,411,548 5,214,914 3,921,479 236,131 152,447
Balance Sheet total 1,695,063 5,526,435 4,212,022 590,092 604,775
Equity 1,435,918 5,274,270 4,209,358 587,879 601,478
Average number of employees 36 34 32 30 29

Ratios:
Gross margin (%) 22.7 25.5 24.0 15.2 14.7
Net margin (%) 9.1 16.8 14.2 2.3 1.6
Return on equity (%) 10.5 27.5 40.9 9.9 5.6
Equity ratio (%) 84.7 95.4 99.9 99.6 99.5

Key performance indicators means factors by reference to which the development, performance or position of the company can be measured effectively. (CA06 s.414C (4) -(6) as amended by SI 2013.1970).

Definitions:
Gross margin (%): Gross profit x 100 / Revenue
Net margin (%): Profit/loss for the year x 100 / Revenue
Return on equity (%): Profit and loss for the year x 100/ Average equity
Equity ratio (%): Equity x 100 / Balance sheet total

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Customers
Shipco is a well-known global NVOCC and working through the World-Wide Alliance network to support our customers on global trade lanes. The customer base consists of forwarding/logistics companies, who we service for years through own or partner offices. We continue to develop online tools and platforms for ease of business.

Suppliers
Our suppliers are predominantly global shipping lines as well as national transportation companies. We continue to build relationships with these vendors to be able to provide customers with a superior service.

Shareholders
Our shares are owned 100% by our holding company being Shipco Transport Holding A/S, a Danish entity owned by Scan Group.

Group relations
Please refer to notes 19, 20 and 21 in the consolidated financial statements for a specification of the group relations.

Strategy:
We want to grow our business by enhancing our customer experience at competitive pricing. This is supported through continuous IT tools/process optimization and integrations as well as developing our workforce through training, talent management and career development.

PRINCIPAL RISKS AND UNCERTAINTIES
Credit risk
The company's credit risk arises primarily through trade debtors. The amounts presented in the balance sheet are net of bad debt provisions. A bad debt provision is recognised by the entity when there is objective evidence that a debtor has become impaired - for example where the customer enters into bankruptcy proceedings.

Liquidity risk
In order to maintain liquidity and to ensure that the company has sufficient funds available for ongoing operations and to meet its obligations, the company places surplus funds in a high-interest-bearing account. The company also has an agreed overdraft facility in the event that short-term finance is required.

Financial instruments
The company does not have excessive exposure to risks in respect of price, credit, liquidity, and cash flow risk. The company's financial instruments are largely traded in the functional currency, being sterling and the company does not use hedge accounting in respect of its financial instruments.

Interest rate exposures have a limited effect on the company due to the financial soundness of Group. Consequently, no agreement is made on hedging interest exposure.


SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

EVENTS AFTER THE BALANCE SHEET DATE
No events have occurred or been recorded between the balance sheet date and the date of presentation of these financial statements, which would influence the evaluation of this annual report.

ON BEHALF OF THE BOARD:





M Jaepelt - Director


18 March 2024

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the provision of freight services.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 5,250,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

M Jaepelt
K H Jepsen

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 judgements 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, Caton Fry & Partners Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M Jaepelt - Director


18 March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SHIPCO TRANSPORT LIMITED

Opinion
We have audited the financial statements of Shipco Transport Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Material uncertainty 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 in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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.

In connection with our audit of the financial statements, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SHIPCO TRANSPORT LIMITED


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SHIPCO TRANSPORT LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- the nature of the industry and sector, control environment and business performance including the design of the Group's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;
- results of our enquiries of management, about their own identification and assessment of the risks of irregularities;
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the matters discussed among the audit engagement team including how and where fraud might occur in the financial statements and any potential indicators of fraud.

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

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

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

As a result of performing the above, we identified job revenue and associated costs as key audit areas related to the potential risk of fraud. We therefore reviewed and implemented detailed testing of recognition of job revenue and the associated costs arising due to the acceptance of the shipment.

Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SHIPCO TRANSPORT LIMITED

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Edward Caton FCA ATII ASFA (Senior Statutory Auditor)
for and on behalf of Caton Fry & Partners Limited (Statutory Auditor)
Essex House
7-8 The Shrubberies
George Lane
South Woodford
London
E18 1BD

18 March 2024

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 15,581,546 31,062,999

Cost of sales 12,041,356 23,130,359
GROSS PROFIT 3,540,190 7,932,640

Administrative expenses 1,742,876 1,699,719
OPERATING PROFIT 5 1,797,314 6,232,921

Interest receivable and similar income 57,649 31,691
PROFIT BEFORE TAXATION 1,854,963 6,264,612

Tax on profit 6 443,415 1,049,698
PROFIT FOR THE FINANCIAL
YEAR

1,411,548

5,214,914

Retained earnings at beginning of year 5,274,370 3,959,456

Dividends 7 (5,250,000 ) (3,900,000 )

RETAINED EARNINGS AT END OF
YEAR

1,435,918

5,274,370

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 59,986 34,830

CURRENT ASSETS
Debtors 9 2,685,129 3,738,530
Cash at bank 1,533,227 6,123,832
4,218,356 9,862,362
CREDITORS
Amounts falling due within one year 10 2,583,279 4,370,757
NET CURRENT ASSETS 1,635,077 5,491,605
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,695,063

5,526,435

PROVISIONS FOR LIABILITIES 12 9,243 2,163
NET ASSETS 1,685,820 5,524,272

CAPITAL AND RESERVES
Called up share capital 13 249,902 249,902
Retained earnings 14 1,435,918 5,274,370
SHAREHOLDERS' FUNDS 1,685,820 5,524,272

The financial statements were approved by the Board of Directors and authorised for issue on 18 March 2024 and were signed on its behalf by:




M Jaepelt - Director



K H Jepsen - Director


SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,603,170 6,507,701
Tax paid (956,291 ) (1,107,326 )
Net cash from operating activities 646,879 5,400,375

Cash flows from investing activities
Purchase of tangible fixed assets (45,133 ) (14,403 )
Interest received 57,649 31,691
Net cash from investing activities 12,516 17,288

Cash flows from financing activities
Equity dividends paid (5,250,000 ) (3,900,000 )
Net cash from financing activities (5,250,000 ) (3,900,000 )

(Decrease)/increase in cash and cash equivalents (4,590,605 ) 1,517,663
Cash and cash equivalents at
beginning of year

2

6,123,832

4,606,169

Cash and cash equivalents at end of
year

2

1,533,227

6,123,832

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,854,963 6,264,612
Depreciation charges 19,976 20,287
Finance income (57,649 ) (31,691 )
1,817,290 6,253,208
Decrease in trade and other debtors 1,053,402 3,046,426
Decrease in trade and other creditors (1,267,522 ) (2,791,933 )
Cash generated from operations 1,603,170 6,507,701

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 1,533,227 6,123,832
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 6,123,832 4,606,169


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank 6,123,832 (4,590,605 ) 1,533,227
6,123,832 (4,590,605 ) 1,533,227
Total 6,123,832 (4,590,605 ) 1,533,227

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Shipco Transport Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover represents net invoiced sales of services, excluding value added tax.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Improvements to property - 25% on cost
Fixtures and fittings - 25% on cost
Computer equipment - 25% on cost

Financial instruments
Basic financial instruments are recognised at the amortised cost using the effective interest method, except for investments in non-convertible preference and non-puttable preference and ordinary shares, which are measured at fair value, with changes recognised in profit and loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value, with changes recognised in profit and loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All exchange differences are taken to the Profit and Loss account.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Profit and Loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Sea Freight - Imports 9,543,138 23,887,587
Sea Freight - Exports 6,038,408 7,175,412
15,581,546 31,062,999

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. TURNOVER - continued

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 9,114,871 23,665,733
Europe 222,543 378,306
Rest of the World 6,244,132 7,018,960
15,581,546 31,062,999

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,526,089 1,347,246
Social security costs 132,004 127,620
Other pension costs 36,803 30,184
1,694,896 1,505,050

The average number of employees during the year was as follows:
2023 2022

Selling and distribution 29 27
Administration 3 3
Claims 4 4
36 34

2023 2022
£    £   
Directors' remuneration - -

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

5. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 19,977 20,286
Auditor's remuneration 18,572 18,050
Auditors' remuneration for non audit work 1,545 1,815
Foreign exchange differences 9,917 94,700
Operating lease rentals - Plant and machinery 1,820 1,820
- Land and buildings 30,000 30,000
Interest income receivable from group undertakings recognised with
interest receivable and similar income

21,000

21,000

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 436,335 1,050,199

Deferred tax 7,080 (501 )
Tax on profit 443,415 1,049,698

UK corporation tax has been charged at 23.52% (2022 - 19%).

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

6. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,854,963 6,264,612
Profit multiplied by the standard rate of corporation tax in the UK
of 23.521% (2022 - 19%)

436,306

1,190,276

Effects of:
Expenses not deductible for tax purposes 6,604 4,288
Capital allowances in excess of depreciation (6,566 ) -
Depreciation in excess of capital allowances - 35
General provision not deductible for tax purposes - (144,400 )
Deferred Tax on origination and reversal of timing differences 7,080 (501 )
Corporation Tax standard rate rounding difference due to hybrid rate
(9

)

-
Total tax charge 443,415 1,049,698

7. DIVIDENDS
2023 2022
£    £   
Interim 5,250,000 3,900,000

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. TANGIBLE FIXED ASSETS
Improvements Fixtures
to and Computer
property fittings equipment Totals
£    £    £    £   
COST
At 1 January 2023 158,568 22,763 37,196 218,527
Additions 18,125 17,852 9,156 45,133
At 31 December 2023 176,693 40,615 46,352 263,660
DEPRECIATION
At 1 January 2023 142,994 17,918 22,785 183,697
Charge for year 8,100 4,838 7,039 19,977
At 31 December 2023 151,094 22,756 29,824 203,674
NET BOOK VALUE
At 31 December 2023 25,599 17,859 16,528 59,986
At 31 December 2022 15,574 4,845 14,411 34,830

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,405,896 2,120,792
Amounts owed by group undertakings 956,122 1,351,822
VAT 311,090 254,863
Prepayments 12,021 11,053
2,685,129 3,738,530

An interest-bearing loan of £700,000 by Shipco Transport Limited to an associated company Scan Real Estate Limited was renewed in 2020 for a further term and remained outstanding at 31 December 2023. The terms of the loan is such that interest is payable at 3% per annum and interest of £21,000 (2022 - £21,000) was received during the year. The loan has been classified as amounts falling due within one year as the loan is repayable on demand.

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 1,772,279 2,596,860
Tax 166,784 686,740
Social security and other taxes 39,586 40,444
Amounts owed to group undertakings 494,103 929,404
Accruals 110,527 117,309
2,583,279 4,370,757

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Between one and five years 1,120 1,820
In more than five years 30,700 30,000
31,820 31,820

12. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 9,243 2,163

Deferred
tax
£   
Balance at 1 January 2023 2,163
Deferred tax asset movement 7,080
Balance at 31 December 2023 9,243

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
249,902 Ordinary shares £1 249,902 249,902

14. RESERVES
Retained
earnings
£   

At 1 January 2023 5,274,370
Profit for the year 1,411,548
Dividends (5,250,000 )
At 31 December 2023 1,435,918

Retained earnings account represents cumulative realised profits and losses, net of dividends and other distributions.

SHIPCO TRANSPORT LIMITED (REGISTERED NUMBER: 02298865)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

15. ULTIMATE PARENT COMPANY

The immediate parent undertaking of Shipco Transport Limited is Shipco Transport Holding A/S, a company incorporated in Denmark.

The ultimate parent undertaking of Shipco Transport Limited is A.S.Scan Holding A/S, a company incorporated in Denmark.

The group financial statements can be found at Scan Group A/S 18-20 Snorreesgade, DK-2300, Copenhagen, Denmark.

16. RELATED PARTY DISCLOSURES

The company also trades i.e. imports and exports with non wholly owned group members worldwide. As the transactions and balances with each individual entity are not material to the understanding of financial statements the amounts have been aggregated as follows:

- Sales to non wholly owned group members: £74,621 (2022 - £188,033);
- Purchases non wholly owned group members: £73,760 (2022 - £346,253);
- Amounts due from non wholly owned group members: £23,466 (2022 - £28,746); and
- Amounts due to non wholly owned group members: £Nil (2022 - £11,348).