Company registration number SC622823 (Scotland)
U SEA LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
U SEA LIMITED
COMPANY INFORMATION
Directors
Mr C J Gault
Ms A G J Leiper
Mr D W Leiper
Mr A Smith
(Appointed 7 June 2024)
Mr G Busquet
(Appointed 7 June 2024)
Mr M Bouziane
(Appointed 7 June 2024)
Mr W F Gault
(Appointed 7 June 2024)
Mr J M Stephen
(Appointed 7 June 2024)
Ms S S West
(Appointed 7 June 2024)
Secretary
Brodies Secretarial Services Limited
Company number
SC622823
Registered office
Brodies House
31-33 Union Grove
Aberdeen
AB10 6SD
Auditor
Murray Taylor Audit Limited
10 Murray Lane
Montrose
Angus
DD10 8LF
U SEA LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 4
Independent auditor's report
5 - 7
Income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 33
U SEA LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The results for the year and financial position of the company are shown in the annexed financial statements.

 

The financial statements for the year show that the group achieved a post-tax profit of £1,913,921 compared to the post-tax profit of £3,518,490 achieved in 2022.

 

The turnover for the year is £47,974,693 compared to the prior period of £46,796,233. Shareholder funds have increased from £14,495,379 to £16,859,300. Trading conditions continue to be tough, but the directors are satisfied with the performance achieved.

Principal risks and uncertainties

The company's operations expose it to a variety of financial risks that include the effects of changes in debt, market prices, credit risk, liquidity risk, interest rate risk and exchange risk. The company directors closely monitor those risks on an ongoing basis to seek to limit any adverse conditions which may affect the financial performance of the company.

Promoting the success of the company

The board of U Sea Limited have a legal responsibility under Section 172 of the Companies Act 2006 to act in a way which will promote the company’s success for the benefit of its members as a whole and to have regard as to how our decisions will affect our stakeholders.

 

Every member of staff is important and critical to the continued success of the company. Regular management meetings and a heavy investment in both time and money to training ensures that staffs needs and concerns are constantly addressed, and a highly skilled work-force is maintained.

 

We are committed to providing customers with the best service possible and maintaining strong, long-term relationships. Customer satisfaction is monitored by customer contact.

 

The company has responsibility to a vast number of suppliers who place their trust in U Sea Limited, and we continue to develop strong relationships with them through regular communication.

On behalf of the board

Mr D W Leiper
Director
31 October 2024
U SEA LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company and group continued to be that of a holding company.

Results and dividends

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

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

Directors

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

Mr C J Gault
Ms F M Gault
(Resigned 7 June 2024)
Ms A G J Leiper
Mr D W Leiper
Ms A Stephen
(Resigned 7 June 2024)
Mr D West
(Resigned 7 June 2024)
Mr A Smith
(Appointed 7 June 2024)
Mr G Busquet
(Appointed 7 June 2024)
Mr M Bouziane
(Appointed 7 June 2024)
Mr W F Gault
(Appointed 7 June 2024)
Mr J M Stephen
(Appointed 7 June 2024)
Ms S S West
(Appointed 7 June 2024)
Financial instruments
Foreign currency risk

Due to the level of export sales, the company uses derivative financial instruments, by using forward exchange contracts to purchase Euros, and this is certainly one of the biggest risks that the company faces. However the directors closely monitor the exchange rate for any significant adverse conditions and therefore can take appropriate action when necessary.

Future developments

After a successful trading year, the company directors' are confident that they can continue to overcome external market pressures by offering a high quality service, maintaining good relationships with customers and continuing to be competitive with prices offered to customers and suppliers.

Auditor

The auditor, Murray Taylor Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

U SEA LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Energy and carbon report

The UK Greenhouse and gas emissions and energy use data is for the period 1 January 2023 to 31 December 2023.

Energy
CO2
Intensity
Ratios
Comsumption
Emissions
t CO2e per
t CO2e per
UK Energy Use
kW
t CO2e
turnover
employee
U Sea Limited
1,029,319
221
45
2
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

Measures taken to improve energy efficiency

The group recognises the importance of energy efficiency and has implemented a number of initiatives to monitor, manage and reduce energy usage. The directors will continue to monitor the initiatives so that energy consumption can be reduced where possible.

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 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.

U SEA LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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 company 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 company is aware of that information.

On behalf of the board
Mr D W Leiper
Director
31 October 2024
U SEA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF U SEA LIMITED
- 5 -
Opinion

We have audited the financial statements of U Sea Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 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:

U SEA LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF U SEA LIMITED
- 6 -
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 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 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.

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the seafood sector.

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including relevant legislation such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

 

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulation

U SEA LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF U SEA LIMITED
- 7 -

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

 

•performed analytical procedures to identify any unusual or unexpected relationships;

 

•tested journal entries to identify unusual transactions;

 

•investigated the rationale behind significant or unusual transaction

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

 

•agreeing financial statement disclosures to underlying supporting documentation;

 

•enquiring of management as to actual and potential litigation and claims;

 

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.

R J Sim F.C.C.A. (Senior Statutory Auditor)
For and on behalf of Murray Taylor Audit Limited
Chartered Certified Accountants
Statutory Auditor
10 Murray Lane
Montrose
Angus
DD10 8LF
31 October 2024
U SEA LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Revenue
3
47,974,693
46,796,233
Cost of sales
(40,260,828)
(38,110,453)
Gross profit
7,713,865
8,685,780
Administrative expenses
(5,054,263)
(4,363,362)
Other operating income
200,880
186,734
Operating profit
4
2,860,482
4,509,152
Share of results of associates
(27,562)
(139,017)
Investment income
7
27,922
8,383
Finance costs
8
(16,034)
(49,471)
Profit before taxation
2,844,808
4,329,047
Tax on profit
9
(930,887)
(810,557)
Profit for the financial year
1,913,921
3,518,490
Profit for the financial year is all attributable to the owners of the parent company.
U SEA LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
1,913,921
3,518,490
Other comprehensive income
-
-
Total comprehensive income for the year
1,913,921
3,518,490
Total comprehensive income for the year is all attributable to the owners of the parent company.
U SEA LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Non-current assets
Goodwill
10
8,024,639
8,559,615
Other intangible assets
10
1,300,583
1,371,333
Total intangible assets
9,325,222
9,930,948
Property, plant and equipment
11
4,660,446
4,275,572
Investments
12
(195,216)
(167,655)
13,790,452
14,038,865
Current assets
Inventories
15
515,894
497,556
Trade and other receivables
16
8,884,788
8,744,928
Cash and cash equivalents
1,610,569
1,688,337
11,011,251
10,930,821
Current liabilities
17
(6,750,372)
(7,227,842)
Net current assets
4,260,879
3,702,979
Total assets less current liabilities
18,051,331
17,741,844
Non-current liabilities
18
(788,482)
(2,557,676)
Provisions for liabilities
Deferred tax liability
20
403,549
238,789
(403,549)
(238,789)
Net assets
16,859,300
14,945,379
Equity
Called up share capital
23
4,186,181
4,186,181
Retained earnings
12,673,119
10,759,198
Total equity
16,859,300
14,945,379
The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
31 October 2024
Mr D W Leiper
Director
Company registration number SC622823 (Scotland)
U SEA LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Non-current assets
Investments
12
20,100,000
20,100,000
Current assets
-
-
Current liabilities
17
(2,146,719)
(2,150,799)
Net current liabilities
(2,146,719)
(2,150,799)
Total assets less current liabilities
17,953,281
17,949,201
Non-current liabilities
18
-
(2,142,763)
Net assets
17,953,281
15,806,438
Equity
Called up share capital
23
4,186,181
4,186,181
Retained earnings
13,767,100
11,620,257
Total equity
17,953,281
15,806,438

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £2,146,844 (2022 - £2,146,975 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
31 October 2024
Mr D W Leiper
Director
Company registration number SC622823 (Scotland)
U SEA LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
4,186,181
7,240,708
11,426,889
Year ended 31 December 2022:
Profit and total comprehensive income
-
3,518,490
3,518,490
Balance at 31 December 2022
4,186,181
10,759,198
14,945,379
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,913,921
1,913,921
Balance at 31 December 2023
4,186,181
12,673,119
16,859,300
U SEA LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
4,186,181
9,473,282
13,659,463
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,146,975
2,146,975
Balance at 31 December 2022
4,186,181
11,620,257
15,806,438
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,146,843
2,146,843
Balance at 31 December 2023
4,186,181
13,767,100
17,953,281
U SEA LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
4,318,886
4,746,946
Interest paid
(16,034)
(49,471)
Income taxes paid
(1,307,288)
(876,408)
Net cash inflow from operating activities
2,995,564
3,821,067
Investing activities
Purchase of intangible assets
-
(1,415,000)
Purchase of property, plant and equipment
(687,704)
(2,483,592)
Proceeds on disposal of property, plant and equipment
1,000
-
Purchase of associates
(1)
-
Interest received
27,922
8,383
Net cash used in investing activities
(658,783)
(3,890,209)
Financing activities
Repayment of borrowings
(2,267,763)
(1,442,764)
Repayment of bank loans
(144,000)
589,849
Net cash used in financing activities
(2,411,763)
(852,915)
Net decrease in cash and cash equivalents
(74,982)
(922,057)
Cash and cash equivalents at beginning of year
1,685,551
2,607,608
Cash and cash equivalents at end of year
1,610,569
1,685,551
Relating to:
Cash at bank and in hand
1,610,569
1,688,337
Bank overdrafts included in creditors payable within one year
-
(2,786)
U SEA LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(4,080)
(4,211)
Interest paid
(6,634)
(11,860)
Net cash outflow from operating activities
(10,714)
(16,071)
Investing activities
Dividends received
2,153,477
2,158,835
Net cash generated from investing activities
2,153,477
2,158,835
Financing activities
Repayment of borrowings
(2,142,763)
(2,142,764)
Net cash used in financing activities
(2,142,763)
(2,142,764)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

U Sea Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Brodies House, 31-33 Union Grove, Aberdeen, AB10 6SD.

 

The group consists of U Sea 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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company U Sea 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.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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.

U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Sco-bere Seafood (Holdings) Limited, Seafood Ecosse Limited, Seafood Ecosse (Fraserburgh) Limited and U Sea Fishing Limited have been included in the group financial statements using the purchase method of accounting. Accordingly, the group income statement and statement of cash flows include the results and cash flows of Sco-bere Seafood (Holdings) Limited, Seafood Ecosse Limited, Seafood Ecosse (Fraserburgh) Limited and U Sea Fishing Limited for the year ended 31 December 2023. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

 

The group income statement and statement of cash flows also include the results and cash flows of Sco-bere Seafood (Holdings) Limited, Seafood Ecosse Limited, Seafood Ecosse (Fraserburgh) Limited and U Sea Fishing Limited for the year ended 31 December 2022.

 

The subsidiaries, Seafood Ecosse Spain have been omitted from the consolidation on the basis that it is immaterial.

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 statement of financial position 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.

1.4
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.

1.5
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.6
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.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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:

Intangible assets
5% on a straight line basis
1.8
Property, plant and equipment

Property, plant and equipment 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:

Freehold land and buildings
2% straight line basis
Plant and equipment
5%, 10% and 25% straight line basis
Fixtures and fittings
33% and 35% straight line basis
Motor vehicles
25% straight line basis
Property improvements
10% straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.9
Non-current 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.

U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

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.

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.

1.10
Impairment of non-current 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). 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.

 

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. 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.

U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.11
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
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.

1.13
Financial instruments

The group 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 group's statement of financial position 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.

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payables 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 payables 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.

U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

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

1.14
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.

1.15
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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.

1.16
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 non-current 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.

1.17
Retirement benefits

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

1.18
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 leased asset are consumed.

U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.19
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.

1.20
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
Revenue
2023
2022
£
£
Revenue analysed by class of business
Wholesale of fish
47,974,693
46,796,233
2023
2022
£
£
Revenue analysed by geographical market
UK
4,996,168
4,260,409
Europe
42,978,525
42,535,824
47,974,693
46,796,233
2023
2022
£
£
Other revenue
Interest income
27,922
8,383
Grants received
29,143
22,821
U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(29,143)
(22,821)
Depreciation of owned property, plant and equipment
302,830
252,983
Profit on disposal of property, plant and equipment
(1,000)
-
Amortisation of intangible assets
605,726
578,643
Operating lease charges
540,307
439,975
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
-
-
Audit of the financial statements of the company's subsidiaries
19,000
19,000
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
121
104
-
-
20
20
-
-
Total
141
124
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,970,445
4,551,445
-
0
-
0
Social security costs
493,683
433,451
-
-
Pension costs
266,011
220,001
-
0
-
0
5,730,139
5,204,897
-
0
-
0
U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
7
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
19,783
4,128
Other interest income
8,139
4,255
Total income
27,922
8,383
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
19,783
4,128
8
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
6,634
11,860
Other finance costs:
Other interest
9,400
37,611
Total finance costs
16,034
49,471
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
766,127
779,726
Deferred tax
Origination and reversal of timing differences
89,353
30,831
Changes in tax rates
75,407
-
0
Total deferred tax
164,760
30,831
Total tax charge
930,887
810,557
U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 26 -

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
2,844,808
4,329,047
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
668,530
822,519
Tax effect of expenses that are not deductible in determining taxable profit
17,280
108,285
Tax effect of income not taxable in determining taxable profit
(7,664)
(4,336)
Group relief
(17,753)
(175,309)
Permanent capital allowances in excess of depreciation
105,734
28,567
Deferred tax adjustment
164,760
30,831
Taxation charge
930,887
810,557
10
Intangible fixed assets
Group
Goodwill
Intangible assets
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
10,699,519
1,415,000
12,114,519
Amortisation and impairment
At 1 January 2023
2,139,904
43,667
2,183,571
Amortisation charged for the year
534,976
70,750
605,726
At 31 December 2023
2,674,880
114,417
2,789,297
Carrying amount
At 31 December 2023
8,024,639
1,300,583
9,325,222
At 31 December 2022
8,559,615
1,371,333
9,930,948
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
11
Property, plant and equipment
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Property improvements
Total
£
£
£
£
£
£
Cost
At 1 January 2023
2,007,891
3,212,250
80,967
108,950
11,420
5,421,478
Additions
488,347
138,531
25,326
35,500
-
0
687,704
Transfers
(372,600)
372,600
-
0
-
0
-
0
-
0
At 31 December 2023
2,123,638
3,723,381
106,293
144,450
11,420
6,109,182
Depreciation and impairment
At 1 January 2023
276,528
731,198
68,278
69,902
-
0
1,145,906
Depreciation charged in the year
30,251
236,325
9,622
26,632
-
0
302,830
At 31 December 2023
306,779
967,523
77,900
96,534
-
0
1,448,736
Carrying amount
At 31 December 2023
1,816,859
2,755,858
28,393
47,916
11,420
4,660,446
At 31 December 2022
1,731,363
2,481,052
12,689
39,048
11,420
4,275,572
The company had no property, plant and equipment at 31 December 2023 or 31 December 2022.
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
100
100
20,100,000
20,100,000
Investments in associates
(355,316)
(327,755)
-
0
-
0
Unlisted investments
160,000
160,000
-
0
-
0
(195,216)
(167,655)
20,100,000
20,100,000
U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Fixed asset investments
(Continued)
- 28 -
Movements in non-current investments
Group
Shares in subsidiaries and associates
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
(327,655)
160,000
(167,655)
Additions
1
-
1
Valuation changes
(27,562)
-
(27,562)
At 31 December 2023
(355,216)
160,000
(195,216)
Carrying amount
At 31 December 2023
(355,216)
160,000
(195,216)
At 31 December 2022
(327,655)
160,000
(167,655)
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
20,100,000
Carrying amount
At 31 December 2023
20,100,000
At 31 December 2022
20,100,000
13
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sco-bere Seafood (Holdings) Limited
Scotland
Ordinary A and B
100.00
Seafood Ecosse Limited
Scotland
Ordinary A and B
100.00
Seafood Ecosse (Fraserburgh) Limited
Scotland
Ordinary
100.00
Seafood Ecosse Spain
C/TAJONAR, 12 Entreplanta, Pamplona (Navarra) Spain
Ordinary
100.00
U Sea Fishing Limited
England
Ordinary
100.00
14
Financial instruments
U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
15
Inventories
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
515,894
497,556
-
-
16
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade receivables
7,860,787
7,775,273
-
0
-
0
Amounts owed by group undertakings
899,276
775,942
-
-
Other receivables
100,829
171,785
-
0
-
0
Prepayments and accrued income
23,896
21,928
-
0
-
0
8,884,788
8,744,928
-
-
17
Current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
445,849
592,635
-
0
-
0
Other borrowings
19
2,717,764
2,842,764
2,142,764
2,142,764
Trade payables
2,313,192
1,798,788
-
0
-
0
Corporation tax payable
275,716
816,877
-
0
-
0
Other taxation and social security
243,078
214,562
-
-
Government grants
21
48,145
22,821
-
0
-
0
Other payables
64,310
59,451
-
0
-
0
Accruals and deferred income
642,318
879,944
3,955
8,035
6,750,372
7,227,842
2,146,719
2,150,799
18
Non-current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
19
-
0
2,142,763
-
0
2,142,763
Government grants
21
788,482
414,913
-
0
-
0
788,482
2,557,676
-
2,142,763
U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
19
Borrowings
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
445,849
589,849
-
0
-
0
Bank overdrafts
-
0
2,786
-
0
-
0
Other loans
2,717,764
4,985,527
2,142,764
4,285,527
3,163,613
5,578,162
2,142,764
4,285,527
Payable within one year
3,163,613
3,435,399
2,142,764
2,142,764
Payable after one year
-
0
2,142,763
-
0
2,142,763

Other short term borrowings of £2,142,764 are secured by floating charges over the whole property and undertakings of the company and the group (including uncalled capital) from time to time.

The other borrowings are repayable over 5 equal instalment and carry an annual interest charge of 0.25% per annum.

20
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
403,549
238,789
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
238,789
-
Charge to profit or loss
89,353
-
Effect of change in tax rate - profit or loss
75,407
-
Liability at 31 December 2023
403,549
-

The deferred tax liability set out above is expected to reverse within the next few years and relates to accelerated capital allowances that are expected to mature within the same period.

U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
21
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
836,627
437,734
-
-

Deferred income is included in the financial statements as follows:

Current liabilities
48,145
22,821
-
0
-
0
Non-current liabilities
788,482
414,913
-
0
-
0
836,627
437,734
-
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
266,011
220,001

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.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,186,181
4,186,181
4,186,181
4,186,181

The holders of the ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.

24
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of property, plant and equipment
-
483,472
-
-
U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
25
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,913,921
3,518,490
Adjustments for:
Share of results of associates and joint ventures
27,562
139,017
Taxation charged
930,887
810,557
Finance costs
16,034
49,471
Investment income
(27,922)
(8,383)
Gain on disposal of property, plant and equipment
(1,000)
-
Amortisation and impairment of intangible assets
605,726
578,643
Depreciation and impairment of property, plant and equipment
302,830
252,983
Movements in working capital:
Increase in inventories
(18,338)
(376,936)
(Increase)/decrease in trade and other receivables
(139,860)
6,674
Increase/(decrease) in trade and other payables
310,153
(306,750)
Increase in deferred income
398,893
83,180
Cash generated from operations
4,318,886
4,746,946
26
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
2,146,843
2,146,975
Adjustments for:
Finance costs
6,634
11,860
Investment income
(2,153,477)
(2,158,835)
Movements in working capital:
Decrease in trade and other payables
(4,080)
(4,211)
Cash absorbed by operations
(4,080)
(4,211)
U SEA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
27
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,688,337
(77,768)
1,610,569
Bank overdrafts
(2,786)
2,786
-
0
1,685,551
(74,982)
1,610,569
Borrowings excluding overdrafts
(5,575,376)
2,411,763
(3,163,613)
(3,889,825)
2,336,781
(1,553,044)
28
Analysis of changes in net debt - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Borrowings excluding overdrafts
(4,285,527)
2,142,763
(2,142,764)
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