Company Registration No. 06237623 (England and Wales)
RMS PORTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RMS PORTS LIMITED
COMPANY INFORMATION
Directors
I. D. Parsons
G. M. Hindley
J. S. Saunt
M. Wilson
S. Bentley
(Appointed 1 January 2023)
Company number
06237623
Registered office
Boothferry Terminal
Bridge Street
Goole
East Yorkshire
DN14 5SS
Auditor
Dutton Moore
Aldgate House
1-4 Market Place
Hull
HU1 1RS
RMS PORTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Independent auditor's report
4 - 6
Group profit and loss account
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 32
RMS PORTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activities of the group are freight forwarding, stevedoring, ships agency, haulage, warehousing, logistics and port and customs clearance.

Dividends
Interim dividends were paid amounting to £2,440,138 (2022: £3,154,127). The directors do not recommend payment of a final dividend (2022: nil).
Fair review of the business

The business continued to make good progress in 2023 across all of its operations. The group generated profit before tax of £3,432,315 during the year and finished the year with net assets of £7,666,143 having made additions to fixed assets during the year of £342,041.

 

Our emphasis throughout has been to provide our customers with excellent customer service and adding value wherever possible.

 

As ever we would like to thank our customers for their continued support and our staff for their continued hard work.

 

We operate as a team throughout the business and across its locations, and we place the wellbeing, health and safety of our people at the top of our priority list. By doing so we enjoy great stability, flexibility and the benefits of long-term experience.

 

Key performance indicators

KPIs are used by the directors on a weekly, monthly, quarterly and annual basis to monitor the performance of the group. Key measures include revenue and contribution by product offering, tonnages handled and EBITDA, in addition to key measures relating to cash generation and available facility headroom. The EBITDA adjusted for non-recurring items for the group as a whole in 2023 was £3.7m (2022: £4.3m) and tonnages handled for the year were 1.24m tonnes (2022: 1.42m tonnes). The directors also used qualitative KPIs to monitor service quality and customer satisfaction as measures of performance and progress. The emphasis has increasingly shifted towards quality of earnings.

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to some risks. The key risk is the performance of the UK and European economies.

Financial instruments
The group's principal financial instruments comprise bank balances, invoice financing facilities, loans, asset finance agreements, trade debtors and trade creditors. The main purpose of these instruments is to raise funds for the company's operations and to finance the working capital.
Due to the nature of the financial instruments used by the group there is limited exposure to price risk. With regard to debt instruments, these have variable and fixed interest rates but the capital repayments are fixed. The company manages liquidity risk by ensuring that there are sufficient funds to meet the payments as they fall due.
Trade debtors are managed in respect of the credit offered to customers and are regularly monitored for amounts outstanding for both time and credit limits. The trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet payments as they fall due.
RMS PORTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future development and performance

We will continue our strategy of exploring new markets, developing new customer relationships and our IT systems, in addition to careful cost control and driving continuous operational improvements.

On behalf of the board

S. Bentley
Director
23 September 2024
RMS PORTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Directors

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

I. D. Parsons
G. M. Hindley
J. S. Saunt
M. Wilson
S. Bentley
(Appointed 1 January 2023)
Qualifying third party indemnity provisions

Qualifying third party indemnity provisions as defined by Section 234 of the Companies Act were in place throughout the year.

Statement of directors' responsibilities

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

On behalf of the board
S. Bentley
Director
23 September 2024
RMS PORTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RMS PORTS LIMITED
- 4 -
Opinion

We have audited the financial statements of RMS Ports Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

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:

RMS PORTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RMS PORTS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group and parent 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 group or the parent 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, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

 

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit has been properly planned and performed in accordance with auditing standards (ISAs (UK)).

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.

RMS PORTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RMS PORTS LIMITED
- 6 -

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.

Douglas Baker FCCA (Senior Statutory Auditor)
For and on behalf of Dutton Moore
24 September 2024
Chartered Accountants
Statutory Auditor
Aldgate House
1-4 Market Place
Hull
HU1 1RS
RMS PORTS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
27,723,040
29,557,866
Cost of sales
(20,913,536)
(22,408,829)
Gross profit
6,809,504
7,149,037
Administrative expenses
(4,598,737)
(4,207,368)
Other operating income
3
-
33,624
Operating profit
4
2,210,767
2,975,293
Interest receivable and similar income
9
12,153
26,524
Interest payable and similar expenses
10
(258,748)
(252,851)
Profit on disposal of freehold land and buildings
1,468,143
776,143
Profit before taxation
3,432,315
3,525,109
Tax on profit
11
(636,122)
(783,096)
Profit for the financial year
2,796,193
2,742,013
Other comprehensive income
-
-
Total comprehensive income for the year
2,796,193
2,742,013
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
RMS PORTS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
13
2,205,875
2,830,372
Tangible assets
14
8,379,597
9,932,291
Investments
15
(25,870)
(22,537)
10,559,602
12,740,126
Current assets
Stocks
17
111,684
169,655
Debtors
18
4,688,929
5,010,050
Cash at bank and in hand
1,088,881
1,499,963
5,889,494
6,679,668
Creditors: amounts falling due within one year
19
(4,228,076)
(6,476,173)
Net current assets
1,661,418
203,495
Total assets less current liabilities
12,221,020
12,943,621
Creditors: amounts falling due after more than one year
20
(3,294,597)
(4,168,350)
Provisions for liabilities
Deferred tax liability
23
(1,260,280)
(1,324,198)
(1,260,280)
(1,324,198)
Net assets
7,666,143
7,451,073
Capital and reserves
Called up share capital
24
759,584
764,584
Share premium account
25
1,979,463
1,979,463
Capital redemption reserve
25
1,272,810
1,267,810
Own shares held in treasury
25
(65,985)
-
0
Profit and loss reserves
25
3,720,271
3,439,216
Total equity
7,666,143
7,451,073
The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
23 September 2024
S. Bentley
Director
RMS PORTS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
13
153,660
205,445
Tangible assets
14
-
0
104
Investments
15
11,196,785
11,196,785
11,350,445
11,402,334
Current assets
Debtors
18
21,547,536
16,277,433
Cash at bank and in hand
8,212
24,997
21,555,748
16,302,430
Creditors: amounts falling due within one year
19
(19,396,060)
(16,757,292)
Net current assets/(liabilities)
2,159,688
(454,862)
Total assets less current liabilities
13,510,133
10,947,472
Creditors: amounts falling due after more than one year
20
(1,784,610)
(2,027,966)
Net assets
11,725,523
8,919,506
Capital and reserves
Called up share capital
24
759,584
764,584
Share premium account
25
1,979,463
1,979,463
Capital redemption reserve
25
1,272,810
1,267,810
Own shares held in treasury
25
(65,985)
-
0
Profit and loss reserves
25
7,779,651
4,907,649
Total equity
11,725,523
8,919,506

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £5,387,140 (2022: £3,159,091 profit).

The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
23 September 2024
S. Bentley
Director
Company registration number 06237623 (England and Wales)
RMS PORTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Capital redemption reserve
Own shares held in treasury
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
764,584
1,979,463
1,267,810
-
0
3,851,330
7,863,187
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
-
2,742,013
2,742,013
Dividends
12
-
-
-
-
(3,154,127)
(3,154,127)
Balance at 31 December 2022
764,584
1,979,463
1,267,810
-
0
3,439,216
7,451,073
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
-
2,796,193
2,796,193
Dividends
12
-
-
-
-
(2,440,138)
(2,440,138)
Purchase of own shares into treasury
25
-
-
-
(205,710)
-
(205,710)
Sale of own shares from treasury
25
-
-
-
139,725
-
139,725
Redemption of shares
24, 25
-
-
5,000
-
-
5,000
Reduction of shares
24, 25
(5,000)
-
-
-
(75,000)
(80,000)
Balance at 31 December 2023
759,584
1,979,463
1,272,810
(65,985)
3,720,271
7,666,143
RMS PORTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Capital redemption reserve
Own shares held in treasury
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
764,584
1,979,463
1,267,810
-
0
4,902,685
8,914,542
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
3,159,091
3,159,091
Dividends
12
-
-
-
-
(3,154,127)
(3,154,127)
Balance at 31 December 2022
764,584
1,979,463
1,267,810
-
0
4,907,649
8,919,506
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
-
5,387,140
5,387,140
Dividends
12
-
-
-
-
(2,440,138)
(2,440,138)
Purchase of own shares into treasury
25
-
-
-
(205,710)
-
(205,710)
Sale of own shares from treasury
25
-
-
-
139,725
-
139,725
Redemption of shares
24, 25
-
-
5,000
-
-
5,000
Reduction of shares
24, 25
(5,000)
-
-
-
(75,000)
(80,000)
Balance at 31 December 2023
759,584
1,979,463
1,272,810
(65,985)
7,779,651
11,725,523
RMS PORTS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
2,024,735
4,496,424
Interest paid
(258,748)
(252,851)
Income taxes paid
(214,981)
(725,640)
Net cash inflow from operating activities
1,551,006
3,517,933
Investing activities
Purchase of intangible assets
(51,087)
(22,832)
Purchase of tangible fixed assets
(342,041)
(699,567)
Proceeds from disposal of tangible fixed assets
2,516,483
1,543,950
Interest received
15,486
4,706
Net cash generated from investing activities
2,138,841
826,257
Financing activities
Purchase of own shares
(75,000)
-
0
Purchase of treasury shares
(205,710)
-
0
Sale of treasury shares
139,725
-
0
Repayment of bank loans
(715,798)
(1,234,784)
Payment of finance leases obligations
(804,008)
(734,155)
Dividends paid to equity shareholders
(2,440,138)
(3,154,127)
Net cash used in financing activities
(4,100,929)
(5,123,066)
Net decrease in cash and cash equivalents
(411,082)
(778,876)
Cash and cash equivalents at beginning of year
1,499,963
2,278,839
Cash and cash equivalents at end of year
1,088,881
1,499,963
RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

RMS Ports Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Boothferry Terminal, Bridge Street, Goole, East Yorkshire, DN14 5SS.

 

The group consists of RMS Ports Limited and all of its subsidiaries.

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.

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
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company RMS Ports Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates made up to 31 December 2023.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.3
Going concern

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

1.4
Turnover

Turnover 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.

RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Computer software
5 years on cost
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently freehold land and buildings measured at deemed cost from 2012, net of depreciation and any impairment losses.

Freehold land is not depreciated. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold buildings
10 - 50 years on cost
Leasehold improvements
Over the term of the lease
Plant and equipment
2 - 25 years on cost
Fixtures and fittings
2 - 25 years on cost
Motor vehicles
2 - 10 years on cost

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 profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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).

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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.

1.10
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.

1.11
Financial instruments

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial assets

Basic financial assets are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised at transaction price.

RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
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 group’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 if, and only if, there is 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.

1.14
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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
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
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
27,723,040
29,557,866
RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 19 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
27,723,040
29,557,866
2023
2022
£
£
Other operating income
Rent receivable
-
33,624
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
340,178
416,293
Depreciation of tangible fixed assets held under finance leases
506,965
357,356
Rental income
-
(33,624)
Amortisation of grants receivable
(1,642)
(6,400)
Profit on disposal of plant and machinery
(748)
(91,577)
Amortisation of goodwill
572,712
572,712
Amortisation of capital computer software
102,872
111,386
Operating leases
1,947,144
1,728,814
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,500
6,750
Audit of the financial statements of the company's subsidiaries
56,000
52,250
62,500
59,000
RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Operational staff
87
93
-
-
Directors and administration
55
63
14
16
Total
142
156
14
16

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,655,925
5,943,664
992,859
984,642
Social security costs
581,789
652,490
119,023
128,097
Pension costs
225,146
247,143
90,189
103,369
6,462,860
6,843,297
1,202,071
1,216,108

In the year, the group incurred redundancy costs of £76,480 (2022: nil). These costs are not included in the totals above.

7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
620,700
505,247
Company pension contributions to defined contribution schemes
21,956
28,826
642,656
534,073
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
235,745
201,250
Company pension contributions to defined contribution schemes
7,752
17,308

The key management personnel are considered to be the directors.

RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
8
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
225,146
247,143

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

9
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest
15,486
4,606
Income from fixed asset investments
Income from participating interests - joint ventures
(3,333)
21,918
Total income
12,153
26,524
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank loans, overdrafts and invoice financing arrangements
165,621
154,906
Interest on hire purchase contracts
85,984
84,688
Other interest
7,143
13,257
258,748
252,851
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
701,192
312,962
Adjustments in respect of prior periods
(1,458)
(13,896)
Total current tax
699,734
299,066
Deferred tax
Origination and reversal of timing differences
(63,612)
484,030
Total tax charge
636,122
783,096
RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 22 -

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

2023
2022
£
£
Profit before taxation
3,432,315
3,525,109
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
858,079
669,771
Tax effect of expenses that are not deductible in determining taxable profit
8,802
(3,920)
Adjustments in respect of prior years
(1,458)
(6,739)
Effect of change in corporation tax rate
(44,107)
-
Group relief
(335)
(7,157)
Depreciation in excess of capital allowances
102,611
(314,237)
Deferred tax adjustments in respect of prior years
(63,612)
484,030
Amortisation of goodwill
143,178
108,815
Profit on disposal of freehold land and buildings
(367,036)
(147,467)
Taxation charge
636,122
783,096
12
Dividends
2023
2022
£
£
Interim paid on Ordinary shares
2,440,138
3,154,127
RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Intangible fixed assets
Group
Goodwill
Computer software
Total
£
£
£
Cost
At 1 January 2023
11,463,155
678,119
12,141,274
Additions
-
0
51,087
51,087
At 31 December 2023
11,463,155
729,206
12,192,361
Amortisation and impairment
At 1 January 2023
8,838,228
472,674
9,310,902
Amortisation charged for the year
572,712
102,872
675,584
At 31 December 2023
9,410,940
575,546
9,986,486
Carrying amount
At 31 December 2023
2,052,215
153,660
2,205,875
At 31 December 2022
2,624,927
205,445
2,830,372
Company
Computer software
£
Cost
At 1 January 2023
678,119
Additions
51,087
At 31 December 2023
729,206
Amortisation and impairment
At 1 January 2023
472,674
Amortisation charged for the year
102,872
At 31 December 2023
575,546
Carrying amount
At 31 December 2023
153,660
At 31 December 2022
205,445
RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
14
Tangible fixed assets
Group
Freehold buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
5,196,628
499,013
12,347,395
513,288
571,034
19,127,358
Additions
-
0
5,522
250,713
78,106
7,700
342,041
Disposals
(1,359,631)
-
0
(167,269)
(1,010)
(62,738)
(1,590,648)
At 31 December 2023
3,836,997
504,535
12,430,839
590,384
515,996
17,878,751
Depreciation and impairment
At 1 January 2023
1,463,840
208,274
6,638,329
413,078
471,546
9,195,067
Depreciation charged in the year
122,434
51,027
610,553
34,395
28,734
847,143
Eliminated in respect of disposals
(354,274)
-
0
(147,910)
(17)
(40,855)
(543,056)
At 31 December 2023
1,232,000
259,301
7,100,972
447,456
459,425
9,499,154
Carrying amount
At 31 December 2023
2,604,997
245,234
5,329,867
142,928
56,571
8,379,597
At 31 December 2022
3,732,788
290,739
5,709,066
100,210
99,488
9,932,291
Company
Plant and equipment
£
Cost
At 1 January 2023 and 31 December 2023
3,751
Depreciation and impairment
At 1 January 2023
3,647
Depreciation charged in the year
104
At 31 December 2023
3,751
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
104
RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Tangible fixed assets
(Continued)
- 25 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
3,596,535
4,329,987
-
0
-
0

Included in freehold land and buildings is freehold land of £1,192,000 (2022: £1,570,350) which is not depreciated.

 

In 2012 freehold land and buildings were valued at £5,270,000 on an open market value with vacant possession basis by Clark Weightman Limited. This valuation on transition to FRS 102 has been taken to be deemed cost of the freehold land and buildings and have been depreciated from 2012.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
11,186,785
11,186,785
Investments in joint ventures
(25,870)
(22,537)
10,000
10,000
(25,870)
(22,537)
11,196,785
11,196,785
Movements in fixed asset investments
Group
Shares in joint ventures
Cost
£
At 1 January 2023
(22,537)
Additions
(3,333)
At 31 December 2023
(25,870)
Carrying amount
At 31 December 2023
(25,870)
At 31 December 2022
(22,537)
Movements in fixed asset investments
Company
Shares in subsidiaries
Cost
£
At 1 January 2023 and 31 December 2023
11,196,785
Carrying amount
At 31 December 2023
11,196,785
At 31 December 2022
11,196,785
RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
16
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
RMS Europe Group Limited
England
Intermediate holding company
Ordinary
100.00
-
RMS Offshore Services Limited
England
Dormant
Ordinary
-
100.00
RMS Trent Limited
England
Dormant
Ordinary
-
100.00
RMS Goole Limited
England
Port operator
Ordinary
-
100.00
RMS Grimsby Limited
England
Port operator
Ordinary
-
100.00
RMS Trent Ports Limited
England
Port operator
Ordinary
-
100.00
Flixborough Wharf Limited
England
Port owner
Ordinary
-
100.00
RMS Hull Limited
England
Port operator
Ordinary
100.00
-
Humber Human Resources Limited
England
Dormant
Ordinary
100.00
-
RMS Group Holdings Limited
England
Dormant
Ordinary
100.00
-
Precision Stevedores Limited
England
Provision of agency labour
Ordinary
50.00
-
RMS Group Logistics Limited
England
Dormant
Ordinary
100.00
-

Registered office addresses (all UK unless otherwise indicated):

 

Boothferry Terminal, Bridge Street, Goole, DN14 5SS

17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Consumables
111,684
169,655
-
0
-
0
RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,302,790
3,304,817
24,400
13,497
Corporation tax recoverable
-
0
23,661
-
0
-
0
Amounts owed by group undertakings
-
-
21,228,740
15,978,740
Amounts owed by undertakings in which the company has a participating interest
116,944
95,041
100,000
96,460
Other debtors
598,707
754,583
138,365
157,603
Prepayments and accrued income
669,700
830,854
55,243
30,039
4,688,141
5,008,956
21,546,748
16,276,339
Deferred tax asset (note 23)
788
1,094
788
1,094
4,688,929
5,010,050
21,547,536
16,277,433
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
21
243,356
715,798
243,356
715,798
Obligations under finance leases
22
632,897
806,508
-
0
-
0
Payments received on account
-
0
963,406
-
0
-
0
Trade creditors
1,556,315
2,248,279
166,477
438,851
Amounts owed to group undertakings
-
0
-
0
18,870,583
15,512,846
Corporation tax payable
461,092
-
0
54,671
34,278
Other taxation and social security
204,299
198,228
32,119
37,463
Other creditors
70,120
199,061
6,667
5,865
Accruals and deferred income
1,059,997
1,344,893
22,187
12,191
4,228,076
6,476,173
19,396,060
16,757,292

Included in creditors amounts falling due within one year are secured creditors of £876,253 (2022: £2,485,712) in respect of the group and £243,356 (2022: £715,798) in respect of the parent company.

 

Finance lease obligations are secured on the assets to which they relate.

20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
21
1,784,610
2,027,966
1,784,610
2,027,966
Obligations under finance leases
22
1,509,987
2,140,384
-
0
-
0
3,294,597
4,168,350
1,784,610
2,027,966
RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Creditors: amounts falling due after more than one year
(Continued)
- 28 -

Included in creditors amounts falling due after more than one year are secured creditors of £3,294,597 (2022: £4,168,350) in respect of the group and £1,784,610 (2022: £2,027,966) in respect of the parent company.

 

Finance lease obligations are secured on the assets to which they relate.

21
Loans
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,027,966
2,743,764
2,027,966
2,743,764
Payable within one year
243,356
715,798
243,356
715,798
Payable after one year
1,784,610
2,027,966
1,784,610
2,027,966

The loans are secured by fixed and floating charges on the group's assets, together with a chattel mortgage over certain items of plant.

Last year £472,442 was repayable in monthly instalments at a variable rate equivalent to 2.85% over Bank of England Base Rate annually. The loan was fully repaid on 28 February 2023.

 

The remaining loan of £2,027,966 (2022: £2,271,322) was refinanced in 2022 for a further five years on similar repayment terms. The loan is repayable by monthly instalments of £20,280 and in 2027 the balance then due of £1,216,780 is to be refinanced again on similar repayment terms over a further period of five years. Interest is payable at a variable rate equivalent to 2.25% over Bank of England Base Rate.

22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
696,239
893,457
-
0
-
0
In two to five years
1,571,162
2,133,596
-
0
-
0
In over five years
65,211
174,859
-
0
-
0
2,332,612
3,201,912
-
-
Less: future finance charges
(189,728)
(255,020)
-
0
-
0
2,142,884
2,946,892
-
0
-
0

 

RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
23
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
1,260,280
1,324,198
788
1,094
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
-
-
788
1,094
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 January 2023
1,323,104
(1,094)
(Credit)/charge to profit or loss
(63,612)
306
Liability/(Asset) at 31 December 2023
1,259,492
(788)

 

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
700,917
700,917
700,917
700,917
B Ordinary shares of £1 each
58,667
63,667
58,667
63,667
759,584
764,584
759,584
764,584

During the year 5,000 B Ordinary shares were acquired by the company for £75,000 and then cancelled.

 

Ordinary shares carry full voting rights and participation in income and capital distribution. B Ordinary shares carry full voting rights but no right to a dividend and have a right to participate in a capital distribution but with a restriction on proportion entitlement.

RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
25
Reserves
Share premium account

This represents the consideration received for shares issued above their nominal value net of transaction costs.

Capital redemption reserve

This represents the nominal value of shares repurchased by the company.

 

Own shares held in treasury

The company is authorised to purchase its own shares by its Articles of Association. In the year to 31 December 2023, the company purchased 13,714 of its Ordinary shares at £15 a share and held these shares in treasury to allow for the exit of shareholders from the business. The consideration paid for these shares was £205,710. Later in the year the company sold 9,315 at £15 a share of its Ordinary shares from the treasury to employees for a consideration of £139,725. The number of shares held in treasury at 31 December 2023 is 4,399 at £15 a share at a value of £65,985. The shares in treasury at the year end were acquired by employees after the year end at £15 a share.

 

Profit and loss reserves

This reserve represents cumulative retained profits and losses.

 

26
Financial commitments, guarantees and contingent liabilities

There is a fixed and floating charge over the company's assets.

 

The group is party to joint and several guarantees in respect of the borrowings. The net liability at 31 December 2023 was £2,027,966 (2022: £3,707,170).

27
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
1,919,235
1,836,052
56,869
24,933
Between two and five years
5,983,791
5,397,864
75,745
50,519
In over five years
2,338,575
3,429,181
-
-
10,241,601
10,663,097
132,614
75,452

The group has entered into commercial agreements which require a minimum payment to be made to the lessor on an annual basis until 31 December 2030. The minimum payments which are due to be paid over the remaining term of the commercial agreements at 31 December 2023 are £4,530,477 (2022: £4,754,537).

RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
28
Related party transactions

During the year, group companies made sales of £10,364 (2022: £13,413) and purchases of £1,206,876 (2022: £1,055,195) to a company of which a director is also a director and shareholder. A debtor balance of £2,028 (2022: £2,666) and a creditor balance of £101,790 (2022: £124,255) was due from/to the company at 31 December 2023.

 

During the year, group companies also made purchases of £26,056 (2022: £4,343) from a company of which a director is also a director and shareholder.

 

During the year, group companies made sales to a company in which the group’s parent company has a 50% shareholding of £32,179 (2022: £31,215). A combined balance of £22,600 (2022: £12,081) was owed to group companies at 31 December 2023.

 

During the year group companies also made purchases from a company in which the group’s parent company has a 50% shareholding of £1,223,084 (2022: £1,595,250). A combined balance of £50,557 (2022: £179,912) was owed to this company at 31 December 2023.

    

During the year costs of £99,414 (2022: £55,334) were paid to a company for the services of a director.

 

At 31 December 2023, directors owed the company £64,197 (2022: £61,917). In the year there was an additional loan to a director of £6,864 and repayments made by directors of £4,584. No interest is charged on advances made to directors.

 

29
Controlling party

No single party controls the company.

30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,796,193
2,742,013
Adjustments for:
Taxation charged
636,122
783,096
Finance costs
258,748
252,851
Investment income
(12,153)
(26,524)
Gain on disposal of tangible fixed assets
(748)
(91,577)
Gain on disposal of freehold land and buildings
(1,468,143)
(776,143)
Amortisation and impairment of intangible assets
675,584
684,098
Depreciation and impairment of tangible fixed assets
847,143
773,649
Movements in working capital:
Decrease/(increase) in stocks
57,971
(70,735)
Decrease in debtors
297,154
372,415
Decrease in creditors
(2,063,136)
(140,319)
Decrease in deferred income
-
(6,400)
Cash generated from operations
2,024,735
4,496,424
RMS PORTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
31
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,499,963
(411,082)
1,088,881
Borrowings excluding overdrafts
(2,743,764)
715,798
(2,027,966)
Obligations under finance leases
(2,946,892)
804,008
(2,142,884)
(4,190,693)
1,108,724
(3,081,969)
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