Company registration number 14474916 (England and Wales)
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
COMPANY INFORMATION
Directors
W Salloum
(Appointed 10 November 2022)
M Toft
(Appointed 6 November 2023)
A Salloum
(Appointed 10 January 2023)
Company number
14474916
Registered office
6th Floor
Manfield House
1 Southampton Street
London
WC2R 0LR
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The Company is a newly established shipping company headquartered in London. Founded in 2022, the company specialises in operating roll-on/roll-off (RoRo) vessels, catering primarily to new car manufacturers. Polaris Autoliners was launched to address a gap in the shipping industry, providing a reliable alternative during a period of limited shipping options. Despite entering a historically challenging market, The Company has quickly established a strong foothold, leveraging excellent customer relationships to achieve early success.

 

In its first period of operations, the Company has made an impressive start. The company achieved gross revenue of approximately $111m with a profit before tax of $14.6m (13%). This strong performance reflects the company’s ability to capitalise on market opportunities and establish a solid foundation for future growth.

The Company had £2m cash in hand at the year end and accordingly the directors are satisfied with the position of the company at that date.

The last three years have seen a resurgence in the PCTC (pure car and truck carrier) market, which has allowed new entrants like Polaris Autoliners to succeed by offering superior service and building strong customer relationships.

Principal risks and uncertainties

Competitive risks

The car carrier industry is characterised by intense competition to secure contracts and profitable rates. The Company tries to minimise this risk by entering in medium term contracts with its customers.

Legislative risks

In the UK and Europe, the main legislative risks are EU competition law, employment law, tax law, UK Bribery Act.

New regulations such as the Emissions Trading System (ETS), Carbon Intensity Indicator (CII), and FuelEU Maritime rules are becoming increasingly important. Compliance with these regulations will likely result in higher costs and necessitate further investment in the fleet.

Market risk

After several years of limited supply growth, the market is now seeing an increase in vessel deliveries, and demand growth is expected to stabilise. This could lead to increased competition and potential pressure on rates.

Supply Chain Disruptions

Ongoing disruptions in the global supply chain are expected to persist, which could impact the company’s operations and service reliability.

Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.

The Company manages its cash flow in order to maximise interest income and minimise interest expense, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision for doubtful debts is made where necessary. The Company does not suffer from significant bad debt.

POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

The Company’s key financial performance indicators during the year were as follows:

 

2023

 

US$ m

 

 

Turnover

111

Profit for the financial year

11

Total shareholders’ fund

11

Cash and cash equivalents

2

 

Other performance indicators

There were no non-financial KPIs used to monitor business performance in the year.

Promoting the success of the company

Under s172 of the Companies Act 2006 directors of UK companies have a duty to promote the success of their company for the benefit of the members as a whole and, in doing so, have regard to:

 

 

The Directors consider the following areas to be of key importance in fulfilment of their duty:

 

On behalf of the board

M Toft
Director
21 October 2024
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The company was formed on 10 November 2022 and commenced to trade on that date. The company changed its name from Salloum Logistics Limited on 23 December 2022. The principal activity of the company is that of shipping vehicles.

Results and dividends

The results for the period are set out on page 8.

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

Directors

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

W Salloum
(Appointed 10 November 2022)
M Toft
(Appointed 6 November 2023)
A Salloum
(Appointed 10 January 2023)
Financial instruments
Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Foriegn 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

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

 

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

Future developments

Polaris Autoliners Ltd. is well-positioned for continued growth. The company’s strong reputation and status as a relatively new entrant without an older legacy fleet provide significant competitive advantages. Polaris Autoliners plans to expand its cargo operations and is also considering investments in modern, cost-effective, and environmentally friendly vessels. By maintaining its focus on growth, sustainability, and customer satisfaction, the company aims to strengthen its market position and achieve its long-term strategic goals.

Auditor

Alliotts LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in the UK in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

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

On behalf of the board
M Toft
Director
21 October 2024
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POLARIS AUTOLINERS LIMITED
- 5 -
Opinion

We have audited the financial statements of Polaris Autoliners Limited (the 'company') for the period ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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:

POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POLARIS AUTOLINERS LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POLARIS AUTOLINERS LIMITED (CONTINUED)
- 7 -

To address the risk of fraud through management bias and override of controls, we:

Audit response to risks identified

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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.

Nicholas Nicolaou FCCA
Senior Statutory Auditor
For and on behalf of Alliotts LLP
22 October 2024
Chartered Accountants
Manfield House
Statutory Auditor
1 Southampton Street
London
WC2R 0LR
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
Period
ended
31 December
2023
Notes
$
Turnover
3
110,719,384
Cost of sales
(95,193,090)
Gross profit
15,526,294
Administrative expenses
(680,299)
Operating profit
4
14,845,995
Interest receivable and similar income
8
2,061
Interest payable and similar expenses
9
(192,105)
Profit before taxation
14,655,951
Tax on profit
10
(3,464,831)
Profit for the financial period
11,191,120

The profit and loss account has been prepared on the basis that all operations are continuing operations.

POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
Notes
$
$
Fixed assets
Tangible assets
11
1,722
Current assets
Debtors
12
36,640,952
Cash at bank and in hand
2,130,694
38,771,646
Creditors: amounts falling due within one year
13
(27,582,121)
Net current assets
11,189,525
Net assets
11,191,247
Capital and reserves
Called up share capital
15
127
Profit and loss reserves
11,191,120
Total equity
11,191,247
The financial statements were approved by the board of directors and authorised for issue on 21 October 2024 and are signed on its behalf by:
M Toft
Director
Company registration number 14474916 (England and Wales)
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
$
$
$
Balance at 10 November 2022
-
0
-
0
-
Period ended 31 December 2023:
Profit and total comprehensive income
-
11,191,120
11,191,120
Issue of share capital
15
127
-
127
Balance at 31 December 2023
127
11,191,120
11,191,247
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
2023
Notes
$
$
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
2,347,947
Interest paid
(192,105)
Net cash inflow/(outflow) from operating activities
2,155,842
Investing activities
Purchase of tangible fixed assets
(1,809)
New loans
(25,527)
Interest received
2,061
Net cash used in investing activities
(25,275)
Financing activities
Proceeds from issue of shares
127
Net cash generated from/(used in) financing activities
127
Net increase in cash and cash equivalents
2,130,694
Cash and cash equivalents at beginning of period
-
0
Cash and cash equivalents at end of period
2,130,694
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Polaris Autoliners Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, Manfield House, 1 Southampton Street, London, WC2R 0LR.

1.1
Reporting period

The financial statements have been prepared from the date of incorporation 10 November 2022 for the 13 month period to 31 December 2023. This accounting date has been adopted in order to align the company with its parent company.

1.2
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 US dollars 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.

1.3
Going concern

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

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for transportation 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.

Revenue from contracts for the provision of transportation services is recognised by reference to the stage of completion of the transportation when the stage of completion, costs incurred and costs to complete can be estimated reliably.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Computers
Straight line over 3 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period 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.

POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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.

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

1.7
Cash 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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset, with 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.

Basic financial assets

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

Other financial assets

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

POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.9
Equity instruments

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

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

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 leases asset are consumed.

POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

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

 

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

 

Critical judgements

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

 

Leases

The company has entered into commercial property leases as a lessee to obtain the use of property, plant, and equipment (vessels). The classification of such leases as a operating or finance lease requires the company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

 

Key sources of estimation uncertainty

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

 

Impairment of receivables

The company makes an estimate of the recoverable value of trade and other receivables. When assessing iimpairment of trade and other receivables, management considers factors including the current credit rating of the receivable, the ageing profile of receivables and historical experience.

 

3
Turnover and other revenue
2023
$
Turnover analysed by class of business
Shipping income
110,719,384
2023
$
Turnover analysed by geographical market
United Kingdom
12,903,116
European Union
89,753,312
Rest of World
8,062,956
110,719,384
2023
$
Other revenue
Interest income
2,061
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 17 -
4
Operating profit
2023
Operating profit for the period is stated after charging:
$
Exchange losses
119,628
Depreciation of owned tangible fixed assets
87
Operating lease charges
33,319
5
Auditor's remuneration
2023
Fees payable to the company's auditor and associates:
$
For audit services
Audit of the financial statements of the company
44,000
6
Employees

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

2023
Number
Directors
2

Their aggregate remuneration comprised:

2023
$
Wages and salaries
154,764
Social security costs
16,867
Pension costs
4,618
176,249
7
Directors' remuneration
2023
$
Remuneration for qualifying services
154,764
8
Interest receivable and similar income
2023
$
Interest income
Interest on bank deposits
2,061
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
8
Interest receivable and similar income
(Continued)
- 18 -
2023
Investment income includes the following:
$
Interest on financial assets not measured at fair value through profit or loss
2,061
9
Interest payable and similar expenses
2023
$
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
192,105
10
Taxation
2023
$
Current tax
UK corporation tax on profits for the current period
3,464,831

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2023
$
Profit before taxation
14,655,951
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
3,663,988
Tax effect of expenses that are not deductible in determining taxable profit
32,675
Change in unrecognised deferred tax assets
420
Effect of change in corporation tax rate
(223,772)
Group relief
(8,480)
Taxation charge for the period
3,464,831
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 19 -
11
Tangible fixed assets
Computers
$
Cost
At 10 November 2022
-
0
Additions
1,809
At 31 December 2023
1,809
Depreciation and impairment
At 10 November 2022
-
0
Depreciation charged in the period
87
At 31 December 2023
87
Carrying amount
At 31 December 2023
1,722
12
Debtors
2023
Amounts falling due within one year:
$
Trade debtors
17,603,551
Corporation tax recoverable
10,968
Amounts owed by group undertakings
1,048,049
Other debtors
61,229
Prepayments and accrued income
2,399,642
21,123,439
2023
Amounts falling due after more than one year:
$
Amounts owed by group undertakings
15,517,513
Total debtors
36,640,952
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
13
Creditors: amounts falling due within one year
2023
$
Trade creditors
7,410,428
Amounts owed to group undertakings
60,000
Corporation tax
3,475,799
Other taxation and social security
19,762
Other creditors
8,550,712
Accruals and deferred income
8,065,420
27,582,121
14
Retirement benefit schemes
2023
Defined contribution schemes
$
Charge to profit or loss in respect of defined contribution schemes
4,618

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.

15
Share capital
2023
2023
Ordinary share capital
Number
$
Issued and fully paid
Ordinary shares of £1 each
100
127

100 £1 Ordinary shares were issued during the period at par value.

 

16
Operating lease commitments
Lessee

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

2023
$
Within one year
20,130,000
Between two and five years
24,805,000
44,935,000
POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 21 -
17
Group guarantees

The company entered into a financing arrangement during the period. The asset financed together with the associated loan has been transferred to a group company. The company has pledged its bank balance as security for this loan with the liability held by another group company. As at the period end the debt owed by the group company amounted to $15.6m.

18
Related party transactions
Transactions with related parties

During the period the company entered into the following transactions with related parties:

Sales
2023
$
Other related parties
45,494,003

The following amounts were outstanding at the reporting end date:

2023
Amounts due to related parties
$
Other related parties
8,550,712

The following amounts were outstanding at the reporting end date:

2023
Amounts due from related parties
$
Entities with control, joint control or significant influence over the company
82,135
Entities over which the entity has control, joint control or significant influence
16,483,427
19
Directors' transactions

During the period a director received loans totalling £20,000. (US$ 25,463). These loans are incurring interest at a rate of 2%. p.a. The balance due at the end of the period, excluding accrued interest was £20,000. (US$ 25,463).

 

 

20
Ultimate controlling party

The immediate and ultimate parent company is Salloum Holdings Limited, a company registered in England and Wales, with a registered office of 6th Floor, Manfield House, 1 Southampton Street, WC2R 0LR. Salloun Holdings prepares group accounts which include the Company.

The Ultimate controlling party is Mr W Salloum.

POLARIS AUTOLINERS LIMITED
(FORMERLY SALLOUM LOGISTICS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 22 -
21
Cash generated from/(absorbed by) operations
2023
$
Profit for the period after tax
11,191,120
Adjustments for:
Taxation charged
3,464,831
Finance costs
192,105
Investment income
(2,061)
Depreciation and impairment of tangible fixed assets
87
Movements in working capital:
Increase in debtors
(36,604,457)
Increase in creditors
24,106,322
Cash generated from/(absorbed by) operations
2,347,947
22
Analysis of changes in net funds
10 November 2022
Cash flows
31 December 2023
$
$
$
Cash at bank and in hand
-
2,130,694
2,130,694
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