Company registration number:
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
The principal activity of the company is that of a holding company and the principal activities of the group are those of owning and operating vessels (Shipping) and diversified farming enterprises (Farming Group).
The group operates a cattle farm in the United Kingdom and a cattle ranch in the USA. The group has a branch in Wyoming in the United States of America. The performance of the group's main trade has been reviewed below and excludes a review on trade from other group entities which is deemed insignificant.
Results on vessels trading showed an increase in gross profit from £13,015,738 in 2023 to £18,020,960 in 2024. This activity is expected to continue for the foreseeable future since the tanker market is strong. In terms of key performance indicators this represented an increase in the gross profit ratio from 36.5% to 45.2% due to impairment reversal. Without the impairment reversals in both years then the gross profit margin remain consistent.
The shipping company generated profit for the year of £6,052,988 compared to a profit of £1,604,258 in 2023. This was mainly as a result of a reversal of a vessel impairment in the period, compared to a impairment charge in 2023. This also contributed to the increase margin as explained above.
Turnover generated by the group's farming interests has maintained consistent in the year at £1,284,271 (2023: £1,295,180) with a gross profit of £676,897 (2023 - as restated: £684,005) recorded for the year under review.
The farming group recorded a loss after taxation for the year of £122,451 (2023: £247,485), which is largely driven by the increase in fair value of cattle prices.
During the previous year, the Board of Pritchard-Gordon Tankers Limited contracted the build of two new vessels which are due to be delivered in 2025 and in the current year, the board had contracted one further build for a new vessel which is due to be delivered in 2026.
The principal risks faced by the group are as follows:
Charter rate risk Charter rate risk is the risk that the group could be adversely affected by falling market charter rates. In order to mitigate this risk, the directors seek to employ the group's vessels on both long and medium term time charters and short term spot charter arrangements. Credit risk Credit risk is the risk that a counterparty could default on its contractual obligations resulting in a financial loss to the group. The group is exposed to credit risk to the extent of its trade receivables and cash at bank and seeks to reduce this risk by trading with large, reputable multinational companies and placing deposits with blue chip financial institutions. Liquidity risk Liquidity risk is the risk that the group will encounter difficulties meeting financial obligations. The group's directors seek to reduce this risk by maintaining sufficient cash reserves, adopting prudent liquidity risk management policies and following strict cash flow budgets.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
Foreign exchange risk
The group is subject to foreign exchange risk as certain transactions, assets and liabilities are denominated in currencies other than sterling. The group's directors seek to monitor and control these risks as part of their on-going financial forecasting and liability management. War in Ukraine The Company has assessed its potential exposure to the conflict in Ukraine and the economic sanctions imposed. Due to the location, structure and nature of operations, the Company is not considered to be materially exposed to the ongoing Russia and Ukraine conflict.
Due to currency fluctuations and the impact this has on the results of the Group, Management consider cash and cash equivalents to be the key performance indicator of the Group. The Group carefully manages its cash flows by following strict cash flow budgets and detailed long-term cash forecasting.
The Group has decreased its cash and cash equivalents balance from £16,210,706 to £10,123,788 in the year, with the decrease mainly as a result of the instalments paid on vessels under construction.
The following disclosures describe how the Directors have had regards to the matters set out in the section 172 (1) (a) to (f) and forms the Directors statement required under section 414CZA of the Companies Act 2006. This reporting requirement is made in accordance with the corporate governance requirements identified the in Companies (Miscellaneous Reporting) Regulation 2018, which apply to company reporting on financial years starting on or after 1 January 2019.
The matters set out in section 172(1) (a) to (f) are that a Director must act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: (a) the likely consequences of any decision in the long term; (b) the interests of the Group's employees; (c) the need to foster the Group's business relationships with suppliers, customers and others; (d) the impact of the Group's operations on the community and the environment; (e) the desirability of the Group maintaining a reputation for high standards of business conduct; and (f) the need to act fairly between members of the Group.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
The Group continuously interacts with a variety of stakeholders important to its success, such as the customers, suppliers, personnel and government bodies.
The Group strives to strike the right balance between engagement and communication. Furthermore the Group works within the limitations of what can be disclosed to the various stakeholders with regards to maintaining confidentiality of market and/or commercially sensitive information. The Key Stakeholder groups and how the Company has interacted with them is as follows: Customers - New charterers who wish to conduct business with the Company are screened for evidence of anti-bribery and anti-corruption offences in accordance with the Bribery Act 2010 in the UK. They are also screened for inclusion on the US, EU and UK Sanction Lists. The Company does not trade with any entity known to be in breach of any anti-bribery or anti-corruption regulations, nor does it trade with any businesses that are on the US, EU or the UK Sanction Lists. The Group ensures that sales of its livestock are conducted through recognised auction houses wherever possible. The Group is dedicated to delivering focused and comprehensive coverage to its clients, providing solutions and ensuring rapid response to their needs as a service provider. Suppliers - We have developed long standing relationships with key suppliers, ensuring that all suppliers meet the high standards of service and operation set by the Group. Personnel - The Group considers its employees its most important asset and strives to ensure that its offices, farms and vessels are safe, rewarding and enjoyable workplaces. The Group will continue to invest in capital as it human believes maintaining low staff turnover across the entire workforce is a key driver of efficiency and rates of productivity. Governmental bodies - The Group is impacted by local governmental organisations in the UK, and to a extent limited by worldwide trading of its fleet. Enquiries are dealt with both on an ad hoc basis and through regular reporting.
The Group defines principal decisions as both those that have long-term strategic impact and are material to the Company, but also those that are significant to its key stakeholder groups. In making the following principal decisions, the Board considered the outcome from its stakeholder engagement, the need to maintain a reputation for high standards of business conduct and the need to act fairly between the members of the Company.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
The directors present their report and the financial statements for the year ended 30 June 2024.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £6,658,710 (2023 - loss £1,115,353).
During the year the company paid a dividend on ordinary shares of £1,292,000 (2023: £892,000).
The directors who served during the year were:
The Group has a branch operation in Wyoming in the United States of America.
In accordance with the requirements of the Companies (Directors’ Report) and Limited Liabilities (Energy and Carbon Report) Regulations 2018 the Directors would like to disclose the following information for the year ended 30 June 2024.
The Group's UK energy consumption was estimated to be 16,675kg of CO2 (2023: 16,745kg of CO2) and 71,524 kWh (2023: 71,823 kWh) during the year. This equates to 138.8 kWk (2023: 139.3 kWk) per square metre of floor space occupied by the group in the UK. This figure comprises kWh of electricity units used, gas consumed and LPG consumed.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
The Group has zero tolerance approach to Slavery and Human Trafficking and is committed to preventing acts of Slavery from occurring within its business, its supply chain or any agents employed by the business, and impose the same high standards on its contractors, suppliers and other business partners.
The Group confirms it would terminate its relationships with individuals or organisations working on its behalf it they are found to be in breach of this policy.
The Group has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the group's Strategic Report the Group's Strategic Report Information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Report) Regulations 2008. This includes information that would have been included in the business review, future developments and details of the principal risks and uncertainties.
Following the year-end, a portion of the ranch land in Wyoming sustained damage due to a fire. At this point, a reliable estimate of the impact cannot be determined; however, the directors believe that this incident will not significantly affect the and valuation. There was no loss of livestock or damage to any farm buildings.
The Statutory Auditors BDO LLP resigned on 22 April 2024 and Menzies LLP were appointed. Menzies will be proposed for re-appointment for the next financial year in accordance with section 485 of Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GILES W. PRITCHARD-GORDON & CO. LIMITED
We have audited the financial statements of Giles W. Pritchard-Gordon & Co. Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GILES W. PRITCHARD-GORDON & CO. LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GILES W. PRITCHARD-GORDON & CO. LIMITED (CONTINUED)
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 Auditors' 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 Group 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 parent company and group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act,Corporate and VAT legislation, Employments taxes, Health Safety and the Bribery Act 2010, as well as those related to the shipping and farming activities. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the parent company and group is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
°Posting of unusual journals and complex transactions;
°Risk of fictitious employees.
°Risk of manipulation of the fair value of the Group's assets
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GILES W. PRITCHARD-GORDON & CO. LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Magna House
18-32 London Road
TW18 4BP
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 40 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 40 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Giles W. Pritchard-Gordon & Co. Limited is a private company, limited by shares, domiciled in England and Wales with registration number 01136375. The registered office is disclosed on the company information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Functional and presentation currency
Transactions and balances
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Voyage charter income is recognised using the percentage of completion method with voyages calculated on a discharge-to-discharge basis. Full provision is made for any losses on voyages in progress at the reporting date. Time charter income is recognised on a time apportioned basis. Depreciation is provided so as to write off the valuation of the owned fleet over the estimated useful life of each vessel, being twenty-five years from the date of completion of the build. For the vessels held under the finance leases, the depreciation is calculated over the remaining lease term. Freehold land and buildings are stated at fair value less any subsequent accumulated depreciation. All other assets are stated at cost less accumulated depreciation.
Fixed assets other than the fleet, are depreciated at the following annual rates :-
Depreciation is provided on the following basis:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Bloodstock is stated at the lower of cost and net realisable value. Inventories in respect of bunkers are valued at the lower of cost and net realisable value. Cost is calculated on a first in, first out basis. No recognition is made for inventories of lubricants, deck, engine and cabin stores and provisions remaining on board the vessels at the reporting date.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
The surplus arising on the revaluation of freehold land, buildings and the fleet is taken to other comprehensive income. Any revaluation surplus in relation to an asset disposed of in the year is released to retained earnings. Differences between the depreciation calculated based on the historical cost and the revalued amount is also released to retained earnings. Differences between the depreciation calculated based on the historical cost and the revalued amount is also released to retained earnings.
Assets held under finance lease agreements are capitalised in the statement of financial position and depreciated over the shorter of their estimated useful economic life and the lease. Where the lease includes an option to purchase the vessel, the vessel is depreciated over the vessel's estimated useful life. The capital element of finance lease repayments outstanding is included in payables. Interest is calculated to produce a constant periodic rate of charge on the outstanding balance.
Rentals payable under operating leases are charged to the income statement on a straight-line basis over the period of the lease. Rent free periods are straight-lined over the period of the lease.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The company uses an interest rate swap to hedge its exposure to movements in interest rates.
Derivative financial instruments are initially recognised at fair value at the date a derivative contract is entered into and remeasured to their fair value at each reporting date. Changes in the fair value of derivative financial instruments are recognised as an income or expense in the Statement of Comprehensive Income as they arise. The fair value of interest rate swap contracts are determined by calculating the present value of the estimated future cash flows based on observable yield curves.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Preference shares carry non-discretionary dividend obligations and are classified as liabilities. The dividends on these preference shares are taken to the income statement as finance expense.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
In the process of applying the group's accounting policies, the directors have made the following accounting judgements which have the most significant effect on the amounts recognised in the financial statements: Asset impairment testing The group reviews its non-current assets for impairment at each reporting date. If events or circumstances indicate that the carrying value may not be recoverable, the value is adjusted to the recoverable amount, determined by independent valuations where available. Allowances for trade and other receivables The company reviews its individual significant receivables at each reporting date to assess whether an allowance should be made for recoverability. In determining this allowance, judgement by management is required in the estimation of the amount and timings of future cash flows. Such significant accounting estimates estimations are based on assumptions of a number of factors and actual results may differ, resulting in future changes to the allowance. The key assumptions concerning the future and other sources of estimation uncertainty at the end of the reporting period are: Residual values and estimated remaining lives The carrying value of owned vessels is depreciated over their expected useful life of 25 years from the date of build to an estimated residual value. Changes in the remaining useful life of the vessels and the residual value, would result in an adjustment to the current value of the future rate of depreciation through profit or loss. Valuation of freehold land and buildings Freehold land and buildings is stated at valuation, which is reviewed by the directors at each reporting date. In order to assess valuation, management uses valuations from independent valuers in its assessment. The last valuation was carried out on 30 June 2022. Valuation of derivative financial instruments The Directors use their judgement in selecting a suitable valuation technique for derivative financial instruments. All derivative financial instruments are valued at market rate provided by the counterparty.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
13.Tangible fixed assets (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
13.Tangible fixed assets (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Other investments
The Company directly holds a 25% investment in Draw Worldwide Limited which is incorporated in England. The investment has been accounted for at cost on the grounds that the group does not exercise significant influence over the investee company. The company's result for the year ended 31 October 2023 was a profit of £49,848 (2022: profit £44,946) and net assets at 31 October 2023 were £197,098 (2022: £203,777).
The Company directly holds a 22.5% investment in Heavy Lift Projects Limited which is incorporated in Scotland. The investment in Heavy Lift Projects Limited has been accounted for at cost on the grounds that the group does not exercise significant influence over the investee company. The company's result for the year ended 31 December 2023 was a loss of £302,615 (2022: £37,371) and net assets at 31 December 2023 were £2,460,578 (2022: £2,763,193). An impairment of £989,053 has been recognised as at 30 June 2024. On 15 March 2022 the Company acquired £100,000 of shares in Britannia's Gold Limited and acquired £100,000 in loan notes in BGL Neptune Limited which had conversion rights. Due to the performance of the operations subsequently, the full investment cost of £200,000 had previously been impaired. On 26 September 2023, BGL Neptune Limited was formally liquidated and the loan notes converted into shares in Britannia's Gold Limited. N.P. Henry, a director of the Company, is also a director of Britannia's Gold Limited and BGL Neptune Limited.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
A deferred tax asset of £12,692 (2023: £5,545) has been recognised in respect of excess depreciation over capital allowances. A deferred tax rate of 25% has been used to determine the deferred tax balance (2023: 25%).
A deferred tax asset of £1,996,089 (2023: £2,136,970) in respect of taxable losses carried forward has not been recognised on the grounds of uncertainty of sufficient taxable profits in the foreseeable future against which the asset could be offset.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Revaluation reserve
Profit and loss account
A prior period restatement has been made of £215,535 to reclassify the fair value movement of the biological assets from cost of sales to split on the face of the statement of comprehensive income. The reallocation was made to reflect the true nature of the cost incurred. There is no profit effect in relation to this adjustment.
The deferred tax on the revaluation of the fixed assets was materially misstated by £284,395 as a result of an error on the acquisition costs and no consideration of indexation. The effect of this adjustment as at 30 June 2022 & 30 June 2023 has resulted in a decrease of the deferred tax liability by £284,395 and an increase in the revaluation reserve by the same amount. A further restatement has also been made as on transition to FRS102 and initial recognition of the deferred tax on the revaluation of the fixed assets was recognised in the P&L reserve and therefore a prior period reclassification of this balance has been made to the revaluation reserve. The effect of this adjustment as at 30 June 2022 & 30 June 2023 has resulted in an increase to the P&L reserve by £1,189,370 and decrease in the revaluation reserve by the same amount. The derivative instrument within one year and more than one year was previously split out on the face of the Statement of Financial Position which has resulted in a restatement to net current assets of £351,925. There is no profit or net asset effect in relation to this adjustment.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Balances and transactions between the Group, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note.
Each shareholder received dividends in the year in proportion to their shareholding as disclosed in note 21.
No individual shareholder owns a controlling interest in the company.
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