Highland Storage Shipping Limited
Financial Statements
For the year ended 31 December 2023
Pages for Filing with Registrar
Company Registration No. 11577893 (England and Wales)
Highland Storage Shipping Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 6
Highland Storage Shipping Limited
Balance Sheet
As at 31 December 2023
Page 1
2023
2022
Notes
$
$
$
$
Current assets
Stock
83,145
89,472
Debtors
4
860,062
848,521
Cash at bank and in hand
943,022
684,591
1,886,229
1,622,584
Creditors: amounts falling due within one year
5
(1,372,944)
(1,028,907)
Net current assets
513,285
593,677
Capital and reserves
Called up share capital
6
64,340
64,340
Profit and loss reserves
448,945
529,337
Total equity
513,285
593,677
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 17 September 2024 and are signed on its behalf by:
A H Farley
Director
Company Registration No. 11577893
Highland Storage Shipping Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 2
1
Accounting policies
Company information
Highland Storage Shipping Limited is a private company limited by shares incorporated in England and Wales. The registered office is 15 Appold Street, London, EC2A 2HB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are prepared in US dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest dollar.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
As at the date of approval of the financial statements, the directors are continuing to assess the current uncertainties within the global economic climate and its potential impact on the company’s activities. The main factor is the leases and the charter customer’s ability to meet the payments as they fall due, however, from review of the customer’s finances there does not appear to be any material uncertainty around their ability to meet these liabilities.true
The vessel has been on charter since March 2019 and has operated continuously since that date, used as a storage unit. Addenda have been previously signed to extend the time and bareboat charters in respect of its vessel. The extensions currently expire in March 2025. The Directors consider it is reasonable to assume that there will be a requirement to extend this charter for a further period of time. However, this vessel forms a relatively small part of a much larger refinery operation for the Charterer. The future of the refinery is under review by its management and by politicians and as such there is a material uncertainty in respect of the extension of the charter which may impact the ability of the company to continue as a going concern. Notwithstanding this, the directors consider it appropriate to prepare the financial statements on a going concern basis as they believe that the extension is likely to be exercised, although there can be no certainty in this respect.
1.3
Turnover
Turnover represents hire fees and is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Hire turnover from providing services under operating lease commitments is recognised in the accounting period in which the services are rendered. For fixed-price contracts, turnover is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously. This is determined based on the actual days of hire relative to the total expected days of hire .
Highland Storage Shipping Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 3
1.4
Stock
Inventories which primarily consist of lubricants, are stated at the lower of cost and net realisable value. Cost is determined on a first-in, first-out method.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and 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.
1.6
Financial instruments
Basic financial instruments are measured at amortised cost. The company has no other financial instruments or basic financial instruments measured at fair value.
1.7
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.
1.8
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.
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.
Highland Storage Shipping Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 4
1.9
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.
1.10
Foreign exchange
Transactions in currencies other than US dollars 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 are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
22
25
3
Dividends
2023
2022
2023
2022
Per share
Per share
Total
Total
$
$
$
$
Ordinary
Final paid
8.00
400,000
The proposed final dividend for the year ended 31 December 2023 is:
2023
2022
Per share
Total
Total
$
$
$
Ordinary
4.00
200,000
The proposed final dividend is subject to approval by shareholders and has not been included as a liability in these financial statements.
Highland Storage Shipping Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 5
4
Debtors
2023
2022
Amounts falling due within one year:
$
$
Trade debtors
43,146
728,582
Other debtors
748,792
87,312
Prepayments and accrued income
68,124
32,627
860,062
848,521
5
Creditors: amounts falling due within one year
2023
2022
$
$
Trade creditors
254,226
228,634
Amounts owed to group undertakings
945,091
2,060
Corporation tax
60,445
31,665
Other taxation and social security
30,950
32,317
Accruals and deferred income
82,232
734,231
1,372,944
1,028,907
6
Called up share capital
2023
2022
$
$
Ordinary share capital
Issued and fully paid
50,000 Ordinary of £1 each
64,340
64,340
64,340
64,340
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Statutory Auditor:
Moore Kingston Smith LLP
Highland Storage Shipping Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 6
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
$
$
13,640,150
13,009,100
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2023
2022
$
$
19,496,800
21,299,000
9
Events after the reporting date
On the 26th of March 2024 directors declared and approved a dividend payment of $200,000 relating to financial year ended 31 December 2023.
There were no other post year end events which occurred up to date of signing of accounts.
10
Related party transactions
The Company has taken advantage of the exemption available in section 33.1a of FRS 102 not to disclose transactions or balances with wholly owned subsidiaries which form part of the Australis Shipping Inc. group.
11
Parent company
The company is controlled by virtue of its entire shareholding by Australis Shipping Inc, a company registered in the Marshall Islands.