Company registration number 14101069 (England and Wales)
STARLINKS GLOBAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
STARLINKS GLOBAL LIMITED
COMPANY INFORMATION
Directors
B Chapman
O S K Almoayyed
B Badami
G Blythe
A I Khamdan
Company number
14101069
Registered office
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
STARLINKS GLOBAL LIMITED
CONTENTS
Page
Directors' report
1 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
STARLINKS GLOBAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company is that of freight and transportation services.

Results and dividends

The results for the year are set out on page 7.

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:

B Chapman
O S K Almoayyed
B Badami
G Blythe
A I Khamdan
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the year end were equivalent to XX day's purchases, based on the average daily amount invoiced by suppliers during the year.

Financial instruments
Liquidity risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade receivables are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

STARLINKS GLOBAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Business relationships

Customers

Engagement with our customers enables us to understand our customers’ needs and empowers us to deliver relevant solutions whilst retaining existing customers and attracting new ones.

 

Employees

Our employees are fundamental in delivering the customer experience and the key to our business success.

 

Suppliers

Engagement with our supply chain ensures that we are able to supply our customers with the services they desire whilst maintaining supply security as far as possible.

 

Government

Policies and regulatory changes may provide opportunities or pose risks to our operations.

Future developments

Starlinks Global continues to drive revenue growth in FY24, increasing its client base and continuing to expand its range of service offerings to clients. Starlinks Global continues to focus on delivering excellent customer service aided by the continued investment in its colleagues, IT systems / applications and infrastructure.

Statement of directors' responsibilities

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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

 

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 of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

STARLINKS GLOBAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
B Chapman
Director
23 July 2024
STARLINKS GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STARLINKS GLOBAL LIMITED
- 4 -
Opinion

We have audited the financial statements of Starlinks Global Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

STARLINKS GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STARLINKS GLOBAL LIMITED (CONTINUED)
- 5 -
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 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, included within the directors' report, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities and 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.

 

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and the risk of fraud in revenue recognition.

STARLINKS GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STARLINKS GLOBAL LIMITED (CONTINUED)
- 6 -

Our procedures to respond to risks identified included the following:

 

 

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

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Moss BSc F.C.A. (Senior Statutory Auditor)
For and on behalf of JS. Audit Limited
26 July 2024
Chartered Accountants
Statutory Auditor
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
STARLINKS GLOBAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
8 month
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Revenue
4
11,341,947
1,274,993
Cost of sales
(9,189,405)
(1,039,017)
Gross profit
2,152,542
235,976
Other operating income
-
1,328
Administrative expenses
(2,651,120)
(979,570)
Operating loss
5
(498,578)
(742,266)
Finance costs
8
(192,304)
(38,143)
Loss before taxation
(690,882)
(780,409)
Income tax
9
171,236
156,524
Loss and total comprehensive loss for the year
(519,646)
(623,885)
STARLINKS GLOBAL LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
Non-current assets
Property, plant and equipment
10
24,336
12,554
Deferred tax asset
18
327,760
156,524
352,096
169,078
Current assets
Trade and other receivables
11
4,174,640
1,329,140
Cash and cash equivalents
703,347
86,890
4,877,987
1,416,030
Current liabilities
Trade and other payables
17
4,844,333
2,208,898
Net current assets/(liabilities)
33,654
(792,868)
Non-current liabilities
Borrowings
13
1,529,186
-
0
Net liabilities
(1,143,436)
(623,790)
Equity
Called up share capital
20
95
95
Accumulated Loss
(1,143,531)
(623,885)
Total equity
(1,143,436)
(623,790)
The financial statements were approved by the board of directors and authorised for issue on 23 July 2024 and are signed on its behalf by:
B Chapman
Director
Company registration number 14101069
STARLINKS GLOBAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Accumulated Loss
Total
Notes
£
£
£
Balance at 11 May 2022
-
-
0
-
Period ended 31 December 2022:
Loss and total comprehensive loss for the period
-
(623,885)
(623,885)
Transactions with owners in their capacity as owners:
Issue of share capital
20
95
-
95
Balance at 31 December 2022
95
(623,885)
(623,790)
Year ended 31 December 2023:
Loss and total comprehensive loss for the year
-
(519,646)
(519,646)
Balance at 31 December 2023
95
(1,143,531)
(1,143,436)
STARLINKS GLOBAL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
828,115
138,564
Interest paid
(192,304)
(38,143)
Net cash inflow from operating activities
635,811
100,421
Investing activities
Purchase of property, plant and equipment
(19,354)
(13,626)
Net cash used in investing activities
(19,354)
(13,626)
Financing activities
Proceeds from issue of shares
-
0
95
Net cash (used in)/generated from financing activities
-
95
Net increase in cash and cash equivalents
616,457
86,890
Cash and cash equivalents at beginning of year
86,890
-
0
Cash and cash equivalents at end of year
703,347
86,890
STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Starlinks Global Limited is a private company limited by shares incorporated in England and Wales. The registered office is James House, Stonecross Business Park, Yew Tree Way, Warrington, Cheshire, WA3 3JD. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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

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

1.2
Going concern

At the balance sheet date the company had net liabilities of £true1,143,436. The company meets its funding requirements through the provision of loans from a parent undertaking. Management has prepared and considered financial forecasts and has received confirmation from the parent undertaking that it will continue to provide financial support for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue represents amounts receivable for freight and transportation services, including other fees and charges, net of VAT, provided by the balance sheet date.

 

The company recognises revenue when the customer's goods enter the network and their order is accepted. The billing process is usually completed the week after the period to which it relates. There are a range of payment terms across the current client base.

 

Import VAT and duties included in sales invoices to customers and incurred on behalf of customers are not treated as revenue.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
33.33% per annum straight line basis
Computers
33.33% per annum straight line basis

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 recognised in the income statement.

1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

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.

1.6
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

 

Included in cash and cash equivalents are funds nominally held in the personal bank account of a director and in a company controlled by that director. The directors consider that the substance of these funds is that they are under the control of the company and are therefore presented in cash and cash equivalents.

1.7
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.8
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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 inventories or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12
Retirement benefits

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

STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Adoption of new and revised standards and changes in accounting policies

In the current year, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period or future periods:

IFRS 17
Insurance contracts
Amendments to IFRS 17
Initial application of IFRS 17 & IFRS 9 - Comparative Information
Amendments to IAS1 and IFRS Practice Statement 2
Disclosure of Accounting Policies
Amendments to IAS 8
Definition of Accounting Estimates
Amendments to IAS 12
Deferred Tax related to Assets and Liabilities arising from a single transaction
Standards issued (but not yet effective) by the IASB International Accounting Standards Board but not endorsed by the UK Endorsement Board

At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective.

Amendments to IAS 1
Classificaiton of Liabilities as Current or Non-current
Amendments to IAS 1
Non-current Liabilities with Covenants
IFRS 16
Lease liability in a sale and leaseback

The directors do not expect that the adoption of these standards noted above will have a material impact on the financial statements of the company in future periods.

3
Critical accounting estimates and judgements

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements
Deferred tax

The deferred tax asset has been recognised because the directors believe it is probable that it will be recovered in the foreseeable future. This assessment is based on management's long-term expectations and review of forecasts, which reflect expected future trading profits of the company.

STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Critical accounting estimates and judgements
(Continued)
- 15 -
Cash and cash equivalents

Cash and cash equivalents includes amounts where the directors have judged that the substance should be reflected rather than the legal form (see note 1.6).

 

A bank account held in the director's personal name, B Chapman, received advances and transfers of £2,088,661 (2022: £1,534,694) and made net payments of £2,174,230 (2022: £1,449,125). The amount held at the balance sheet date was £nil (2022: £85,569).

 

A bank account held by a company owned by the director, B Chapman, received advances and sales receipts of £2,609,871 (2022: £565,244) and made payments and transfers of £2,611,097 (2022: £564,018). The balance held at the balance sheet date was £nil (2022: £1,226).

The directors consider there to be no key areas of estimation uncertainty.

4
Revenue
2023
2022
£
£
Revenue analysed by class of business
Freight and transportation
11,341,947
1,274,993
2023
2022
£
£
Revenue analysed by geographical market (end destination)
UAE
2,983,382
414,690
Saudi Arabia
2,916,364
503,200
Rest of the World
5,442,201
357,103
11,341,947
1,274,993

All revenue is from contracts with customers and is recognised at a point in time.

 

No revenue was recognised in the year that related to performance obligations satisfied in the previous period. No performance obligations were outstanding at the year end.

5
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(70,878)
3,587
Fees payable to the company's auditor for the audit of the company's financial statements
9,700
6,650
Depreciation of property, plant and equipment
7,572
1,072
Impairment loss recognised on trade receivables
121,586
-
0
STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
6
Employees

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

2023
2022
Number
Number
Sales and operational staff
18
11
Admin, IT and finance staff
11
2
Total
29
13

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,821,882
660,341
Social security costs
189,958
67,390
Pension costs
22,985
8,695
2,034,825
736,426
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
120,833
58,705
Company pension contributions to defined contribution schemes
1,321
933
122,154
59,638

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

8
Finance costs
2023
2022
£
£
Interest payable on loan to parent undertaking
192,304
38,143
9
Income tax
2023
2022
£
£
Deferred tax
Origination and reversal of temporary differences
(171,236)
(156,524)
STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Income tax
(Continued)
- 17 -

The charge for the year can be reconciled to the loss per the income statement as follows:

2023
2022
£
£
Loss before taxation
(690,882)
(780,409)
Expected tax credit based on a corporation tax rate of 23.50% (2022: 19.00%)
(162,357)
(148,278)
Effect of expenses not deductible in determining taxable profit
1,572
139
Permanent capital allowances in excess of depreciation
(2,810)
(764)
Pre incorporation expenses not allowable
-
0
29,945
Effect of difference in corporation and deferred tax rates
(7,641)
(37,566)
Taxation credit for the year
(171,236)
(156,524)

A UK Corporation tax rate of 25% was announced in the Chancellor's Budget of 3 March 2021, and applied from 1 April 2023. Prior to this, the UK Corporation tax rate was 19%. Accordingly, the derived Corporation tax rate for the accounting period ended 31 December 2023 is 23.5%. Deferred tax has been calculated at 25%.

10
Property, plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 11 May 2022
-
0
-
0
-
Additions
-
0
13,626
13,626
At 31 December 2022
-
0
13,626
13,626
Additions
519
18,835
19,354
At 31 December 2023
519
32,461
32,980
Accumulated depreciation and impairment
At 11 May 2022
-
0
-
0
-
0
Charge for the year
-
0
1,072
1,072
At 31 December 2022
-
0
1,072
1,072
Charge for the year
130
7,442
7,572
At 31 December 2023
130
8,514
8,644
Carrying amount
At 31 December 2023
389
23,947
24,336
At 31 December 2022
-
12,554
12,554
STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
11
Trade and other receivables
2023
2022
£
£
Trade receivables
4,088,649
1,217,194
Provision for bad and doubtful debts
(121,586)
-
0
3,967,063
1,217,194
VAT recoverable
57,943
40,322
Other receivables
30,000
3,641
Prepayments
119,634
67,983
4,174,640
1,329,140
The ageing of the trade receivables are as follows:
2023
2022
£
£
Not overdue
3,160,553
836,172
0 to 3 months overdue
928,096
381,022
4,088,649
1,217,194

Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

 

12
Trade receivables - credit risk
Fair value of trade receivables
Impaired trade receivables

During the year impairment losses on trade receivables total £121,586 (2022: £nil) due to a customer going into administration.

Movement in the allowances for impairment of trade receivables
2023
2022
£
£
Balance at 1 January 2023 and at 31 December 2023
121,586
-
STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
13
Borrowings
Non-current
2023
2022
£
£
Borrowings:
Loans from parent undertaking
1,529,186
-

As at 31 December 2023, the company has borrowings with the parent company to finance working capital requirements. The loan carries interest at prevailing market rates and is repayable by 1 January 2025.

14
Fair value of financial liabilities

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

15
Financial Instruments
Financial risk management

The company's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and interest rate risk), credit risk and liquidity risk. The company uses different methods to measure the types of risks to which it is exposed. These methods include sensitivity analysis in the case of foreign exchange and price risk and ageing analysis for credit risk.

Foreign exchange risk

The company undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign exchange rate fluctuations.

 

Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities denominated in a foreign currency that is not the functional currency.

 

The carrying amounts of the company's foreign currency denominated monetary assets and liabilities at the reporting date are as follows:

Assets
Liabilites
2023
2022
2023
2022
£
£
£
£
Saudi Riyal
320,510
450,033
1,529,186
1,548,335
United Arab Emirates Dirham
168,954
-
2,356
-
United States Dollar
406
-
554,270
81,058
Euro
-
-
132,558
-
489,870
450,033
2,218,370
1,629,393
STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Financial Instruments
(Continued)
- 20 -
Credit risk

Credit risk refers to the risk that a customer will default on its contractual obligations resulting in financial loss to the company. The company has a strict code of credit, including obtaining agency credit information, confirming references and setting appropriate credit limits. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The company does not hold any collateral.

 

Generally trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a period greater than one year.

Price risk

The company is not exposed to any significant price risk.

 

Interest rate risk

The company is exposed to interest rate risk on the loan with its parent undertaking. The directors monitor changes in the interest rate and take appropriate action as and when deemed necessary.

 

Liquidity risk

Vigilant liquidity risk management requires the company to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.

 

The company manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.

16
Liquidity risk

The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.

1 year or less
Between 1 and 2 years
Between 2 and 5 years
Total
£
£
£
£
At 31 December 2022
Trade payables
294,152
-
-
294,152
Other payables
5,110
-
-
5,110
Amount owed to parent undertaking (8% interest)
123,867
133,776
1,692,813
1,950,456
423,129
133,776
1,692,813
2,249,718
At 31 December 2023
Trade payables
1,153,253
-
-
1,153,253
Other payables
73,950
-
-
73,950
Amount owed to parent undertaking (8% interest)
122,335
1,661,308
-
1,783,643
1,349,538
1,661,308
-
3,010,846
STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Liquidity risk
(Continued)
- 21 -

 

The maturity profile presented for the amount owed to parent undertaking reflects the parent's intentions at the year-end.

17
Trade and other payables
2023
2022
£
£
Trade payables
1,153,253
294,152
Amount owed to parent undertaking
-
0
1,548,335
Accruals
3,549,686
305,351
Social security and other taxation
67,444
55,950
Other payables
73,950
5,110
4,844,333
2,208,898
Deferred tax assets are expected to be recovered within one year
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

ACAs
Tax losses
Retirement benefit obligations
Total
£
£
£
£
Balance at 11 May 2022
-
0
-
0
-
0
-
0
Deferred tax movements in prior year
Charge/(credit) to profit or loss
3,117
(159,228)
(413)
(156,524)
Asset at 1 January 2023
3,117
(159,228)
(413)
(156,524)
Deferred tax movements in current year
Charge/(credit) to profit or loss
2,955
(174,039)
(152)
(171,236)
Asset at 31 December 2023
6,072
(333,267)
(565)
(327,760)

The deferred tax asset has been recognised because the directors believe it is probable that it will be recovered in the foreseeable future. This assessment is based on their review of forecasts which reflect expected future trading profits of the company.

STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,985
8,695

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.

 

At the balance sheet date the company had outstanding pension contributions to the scheme amounting to £5,279 (2022: £3,851).

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 1p each
7,000
7,000
70
70
Ordinary B1 shares of 1p each
1,800
1,800
18
18
Ordinary B2 shares of 1p each
700
700
7
7
9,500
9,500
95
95

The A ordinary shares have voting rights, dividend rights and rights to receive capital on a winding up.

 

The B1 and the B2 ordinary shares do not have voting rights, but have rights to dividends and rights to receive capital on a winding up.

21
Capital risk management

The company is not subject to any externally imposed capital requirements.

22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

2023
2022
£
£
Short-term employee benefits
136,253
66,448
Post-employment benefits
1,321
933
137,574
67,381
Other transactions with related parties
STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Related party transactions
(Continued)
- 23 -

During the year the company recharged salaries and pension costs amounting to £nil (2022: £198,541) to its parent company.

 

Included within creditors is an amount of £1,529,186 (2022: £1,548,335) due to the parent company. Interest paid in the year on the loan amounted to £192,304 (2022: £38,143).

Other information

During the year advances, transfers and payments were made in a bank account held in the director's personal name on behalf of the company. Please see note 2 for further details.

STARLINKS GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
23
Controlling party

The directors consider the ultimate parent company to be Ali Zaid Al Quraishi & Brothers Co, a company incorporated in Saudi Arabia, which does not prepare publicly available consolidated financial statements.

 

The immediate parent company is Starlinks for Support Services, a company incorporated in Saudi Arabia, which does not prepare publicly available consolidated financial statements. This is the immediate controlling party.

 

The directors consider that there is no ultimate controlling party.

24
Cash generated from operations
2023
2022
£
£
Loss for the year before income tax
(690,882)
(780,409)
Adjustments for:
Finance costs
192,304
38,143
Depreciation and impairment of property, plant and equipment
7,572
1,072
Movements in working capital:
Increase in trade and other receivables
(2,845,500)
(1,329,140)
Increase in trade and other payables
4,164,621
2,208,898
Cash generated from operations
828,115
138,564
25
Analysis of changes in net funds/(debt)
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
86,890
616,457
703,347
Borrowings excluding overdrafts
-
(1,529,186)
(1,529,186)
86,890
(912,729)
(825,839)
11 May 2022
Cash flows
31 December 2022
Prior year:
£
£
£
Cash at bank and in hand
-
86,890
86,890
-
86,890
86,890
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