Fairhaven Shipping Company (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 15, Falmouth Wharves, North Parade, Falmouth, Cornwall, TR11 2TF.
Following the previous accounting period, the decision was made to extend the current accounting period from 31 May 2023 to 30 November 2023. As such, the 2023 accounting period runs from 1 June 2022 to 30 November 2023. This decision was made on a commercial basis to ensure the accounts showed a fair view of the company's performance.
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 £.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Marine Asset Management Limited. These consolidated financial statements are available from its registered office: Unit 15 Falmouth Wharves, North Parade, Falmouth, Cornwall, United Kingdom, TR11 2TF.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity ; such gains and loss es are recognised in profit or loss.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, 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 creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
In the application of the company’s accounting policies, the director is 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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Freehold land and buildings are measured at open market value by the director, being their fair value at each reporting date. Determining the open market value of freehold land and buildings requires an estimation of their market value compared with sales values of similar properties in the area.
The company currently has only the one director.
The average monthly number of persons (including directors) employed by the company during the year was:
Land and buildings with a carrying amount of £3,500,000 were revalued on 30 June 2016. The directors have continued to operate on the basis that the value has not materially changed since this valuation.
The revaluation surplus is disclosed in note 10.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the
carrying amounts would have been approximately £720,676 (2022 - £720,676) excluding additions of £167,554 made in 2023 accounting period.
The bank loan is secured on the assets of the company. The bank loan is repayable within five years.
The other long term loan is secured on the property of the company.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
The deferred tax liability represents the potential tax payable if the property was ever sold. The potential tax liability is based on the fair value of the property as reflected in the accounts.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The company has taken advantage of the exemption in section 33 of FRS 102 from disclosing transactions or balances between wholly owned group entities.
As at 30 November 2023, the company had monies owed to them of £94,567 (2022: £0) from companies where the director holds an interest.
During the period, the company incurred costs of £150,000 (2022: £167,000) from companies where the director holds an interest.