Company registration number 01457246 (England and Wales)
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
COMPANY INFORMATION
Director
M Bahr
Secretary
Mr M Varley
Company number
01457246
Registered office
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
Auditor
BG Audit LLP
Statutory Auditors
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
Business address
Brinor House
Bridge Road
LEVINGTON
IP10 0NE
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The director presents the strategic report for the year ended 30 April 2024.
Fair review of the business
I aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. My review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties we face.
During the year ending 30th April 2024 we have looked to continue to invest in our warehouse centre and deep sea operations. Due to our good location to Felixstowe Port we can increase the services we offer on container shipping / trucking / warehousing, European Shipments continue, albeit at a reduced level due to the red tape levelled by EU and UK. As some customers repositioned their business to Holland, we are going to invest into this market now as well.
Principal risks and uncertainties
As for many businesses of our size, the business environment in which we operate continues to be challenging. However we are covered with the financial strengths of Brinor Holdings Ltd and good operations.
Costs for importers and exporters have increased again. New customs regulations on the European market is causing friction and incurring higher costs, which ultimately the consumer is paying for. Brexit will continue to challenge the European market as it is harder for our customer to stay in that market. Currently, margins are ok.
I do not feel that there are any other key risks or uncertainties facing the company at this time.
Development and performance
We will continue to provide a good level of service. Business will be tighter due to the known world affairs, but we are well placed to handle the given circumstances.
Key performance indicators
I consider that the company's key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being gross margin, net profit before tax, net assets and gearing.
The following KPI's are some of the tools used by management to monitor the operating performances of the business:
2024 2023
Gross profit margin 14.24% 14.64%
Net profit margin 1.27% 2.81%
Position of the business at the year end
The financial position at the year-end is strong, with the reserves at £2,411,903. The company has continued to offer a range of services and investments and will offer a good and solid service to our customer.
M Bahr
Director
18 December 2024
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
The director presents his annual report and financial statements for the year ended 30 April 2024.
Principal activities
The company's activities are organised into the following operations:
- Niche markets and upnormal loads
- Domestic and international transport
- Warehousing and distribution
- Customs clearance
- Deep sea import and export container shipping
Director
The director's interest in the shares of the holding company was as stated below:
M Bahr
Results and dividends
The results for the year are set out on page 7.
Future developments
As for many businesses of our size, the business environment in which we operate continues to be challenging. However we are covered with the financial strengths of Brinor Holdings Ltd and good operations.
Auditor
The auditors, BG Audit LLP Statutory Auditors, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
(a) so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and
(b) he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.
On behalf of the board
M Bahr
Director
18 December 2024
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
- 4 -
Opinion
We have audited the financial statements of Brinor International Shipping and Forwarding Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director 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 auditor's report thereon. The director is 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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to operating licence requirements relating to its transport business, and considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that impact directly on the preparation of the financial statements including the Companies Act, and UK tax legislation.
We considered managements incentives and opportunities for fraudulent adjustments to the financial statements including override of controls and determined that the principal risks were related to inappropriate journal entries or fraudulent transactions that would result in the manipulation of profits.
Audit procedures included:
Making enquiries of management for known or suspected instances of fraud or non-compliance with laws and regulations.
Consideration of management’s procedures for detecting and preventing fraud, including controls.
Reviewing journal entries to identify material or unusual transactions
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.
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
- 6 -
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.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Roger Beaton F.C.A. (Senior Statutory Auditor)
For and on behalf of BG Audit LLP
18 December 2024
Statutory Auditor
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
STATEMENT OF TOTAL COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
14,219,487
16,789,542
Cost of sales
(12,195,341)
(14,331,709)
Gross profit
2,024,146
2,457,833
Administrative expenses
(1,899,618)
(2,002,882)
Operating profit
4
124,528
454,951
Interest receivable and similar income
8
60,696
26,194
Interest payable and similar expenses
9
(4,885)
(8,615)
Profit before taxation
180,339
472,530
Taxation
10
(49,002)
(74,729)
Profit for the financial year
131,337
397,801
Other comprehensive income
Tax relating to other comprehensive income
1,600
Total comprehensive income for the year
132,937
397,801
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,086,955
1,149,607
Investments
13
722
722
1,087,677
1,150,329
Current assets
Debtors
15
2,613,834
3,154,814
Cash at bank and in hand
1,818,892
1,280,365
4,432,726
4,435,179
Creditors: amounts falling due within one year
16
(2,874,602)
(2,665,903)
Net current assets
1,558,124
1,769,276
Total assets less current liabilities
2,645,801
2,919,605
Creditors: amounts falling due after more than one year
17
(32,670)
(84,300)
Provisions for liabilities
19
(201,228)
(256,339)
Net assets
2,411,903
2,578,966
Capital and reserves
Called up share capital
21
50,000
50,000
Revaluation reserve
21,562
26,360
Profit and loss reserves
2,340,341
2,502,606
Total equity
2,411,903
2,578,966
The financial statements were approved and signed by the director and authorised for issue on 18 December 2024
M Bahr
Director
Company Registration No. 01457246
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
50,000
26,360
2,104,805
2,181,165
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
397,801
397,801
Balance at 30 April 2023
50,000
26,360
2,502,606
2,578,966
Year ended 30 April 2024:
Profit for the year
-
-
131,337
131,337
Other comprehensive income:
Tax relating to other comprehensive income
-
1,600
1,600
Total comprehensive income for the year
1,600
131,337
132,937
Dividends
11
-
-
(300,000)
(300,000)
Transfers
-
(6,398)
6,398
-
Balance at 30 April 2024
50,000
21,562
2,340,341
2,411,903
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,203,932
55,986
Interest paid
(4,885)
(8,615)
Income taxes paid
(104,782)
(97,408)
Net cash inflow/(outflow) from operating activities
1,094,265
(50,037)
Investing activities
Purchase of tangible fixed assets
(192,847)
(158,177)
Proceeds on disposal of tangible fixed assets
2,250
7,500
Interest received
60,696
26,194
Net cash used in investing activities
(129,901)
(124,483)
Financing activities
Payment of finance leases obligations
(125,837)
(124,973)
Dividends paid
(300,000)
Net cash used in financing activities
(425,837)
(124,973)
Net increase/(decrease) in cash and cash equivalents
538,527
(299,493)
Cash and cash equivalents at beginning of year
1,280,365
1,579,858
Cash and cash equivalents at end of year
1,818,892
1,280,365
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information
Brinor International Shipping and Forwarding Limited is a private company limited by shares incorporated in England and Wales. The company number is 01457246. The registered office is 7 Three Rivers Business Park, Felixstowe Road, Foxhall, IPSWICH, IP10 0BF. The business address is Brinor House, Bridge Road, Levington IP10 0NE.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for services net of VAT and trade discounts.
Domestic and international transport work is recognised in the accounts when the first collection has taken place.
Deep Sea import work is recognised on the basis of the date that the vessel arrives in the UK. Deep Sea export work is recognised on the basis of the date that the vessel leaves the UK.
Warehousing work is invoiced based on the period of storage.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25 - 33 % reducing balance / 10% on cost
Fixtures, fittings & equipment
15% reducing balance
Motor vehicles
25% reducing balance
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.
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash at bank and in hand
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, 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.
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.
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.13
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 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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Shipping and forwarding sales
14,219,487
16,789,542
2024
2023
£
£
Turnover analysed by geographical market
UK Sales
11,172,310
13,863,990
European Sales
3,047,177
2,925,552
14,219,487
16,789,542
2024
2023
£
£
Other revenue
Interest income
60,696
26,194
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(2,708)
(65,482)
Fees payable to the company's auditor for the audit of the company's financial statements
10,795
9,995
Depreciation of owned tangible fixed assets
183,654
214,834
Depreciation of tangible fixed assets held under finance leases
64,588
98,068
(Loss)/profit on disposal of tangible fixed assets
5,007
(7,238)
Operating lease charges
481,180
472,840
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
10,795
9,995
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
International haulage/shipping/warehousing
78
81
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,707,731
2,799,389
Social security costs
255,202
272,574
Pension costs
72,420
70,721
3,035,353
3,142,684
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
12,651
12,487
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
60,391
26,011
Other interest income
305
183
Total income
60,696
26,194
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
60,391
26,011
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
4,885
8,615
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
102,513
104,782
Deferred tax
Origination and reversal of timing differences
(53,511)
(30,053)
Total tax charge
49,002
74,729
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
(Continued)
- 18 -
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:
2024
2023
£
£
Profit before taxation
180,339
472,530
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
45,085
92,096
Tax effect of expenses that are not deductible in determining taxable profit
2,317
(3,433)
Effect of change in corporation tax rate
(6,624)
Depreciation on assets not qualifying for tax allowances
1,600
Capital Allowances at enhanced rate
(7,310)
Taxation for the year
49,002
74,729
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of Trailers
(1,600)
-
11
Dividends
2024
2023
£
£
Interim paid to Parent Company
300,000
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
12
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 May 2023
2,748,517
304,473
48,580
3,101,570
Additions
191,759
1,088
192,847
Disposals
(30,550)
(2,145)
(32,695)
At 30 April 2024
2,909,726
303,416
48,580
3,261,722
Depreciation and impairment
At 1 May 2023
1,668,940
252,376
30,647
1,951,963
Depreciation charged in the year
227,755
16,004
4,483
248,242
Eliminated in respect of disposals
(23,293)
(2,145)
(25,438)
At 30 April 2024
1,873,402
266,235
35,130
2,174,767
Carrying amount
At 30 April 2024
1,036,324
37,181
13,450
1,086,955
At 30 April 2023
1,079,577
52,097
17,933
1,149,607
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
106,570
294,200
The company applied the transitional arrangements of Section 35 of FRS102 and used a previous valuation as the deemed costs for certain trailers. The trailers are being depreciated from the valuation date. As the assets are depreciated or sold an appropriate transfer is made from the revaluation reserve to retained earnings.
Trailers included within plant and machinery were revalued to their open market value of £102,490 at 30 April 2013. Valuations were independently obtained from RTJ Trailers Limited and Adeon Trailers Service, suppliers specialising in trailer repair and servicing.
The net book value of the revalued assets held at the 30 April 2024 is £29,687 (2023: £36,397)
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
12
Tangible fixed assets
(Continued)
- 20 -
2024
2023
£
£
Cost
70,275
90,375
Accumulated depreciation
(69,337)
(89,125)
Carrying value
938
1,250
13
Fixed asset investments
2024
2023
£
£
Listed investments
722
722
14
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,148,130
2,759,202
Equity instruments measured at cost less impairment
722
722
Carrying amount of financial liabilities
Measured at amortised cost
2,369,562
2,108,426
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,063,469
2,676,695
Amounts owed by group undertakings
20,422
Other debtors
65,767
59,695
Prepayments and accrued income
465,704
395,612
2,594,940
3,152,424
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
18,894
2,390
Total debtors
2,613,834
3,154,814
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
18
47,722
121,929
Trade creditors
1,909,205
1,717,580
Amounts owed to group undertakings
240,203
Corporation tax
102,513
104,782
Other taxation and social security
435,197
536,995
Other creditors
11,742
14,009
Accruals and deferred income
128,020
170,608
2,874,602
2,665,903
Hire purchase liabilities of £47,722 (2023: £121,929) are secured on the assets to which they relate.
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
32,670
84,300
Hire purchase liabilities of £32,670 (2023: £84,300) are secured on the assets to which they relate.
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
47,722
121,929
In two to five years
32,670
84,300
80,392
206,229
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
194,041
247,552
Revaluations
7,187
8,787
201,228
256,339
2024
Movements in the year:
£
Liability at 1 May 2023
256,339
Credit to profit or loss
(53,511)
Credit to equity
(1,600)
Liability at 30 April 2024
201,228
The net deferred tax liability expected to reverse in the year ended 30th April 2025 is £12,874. This primarily relates to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation, offset by expected tax deductions when payments are made to utilise provisions.
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
72,420
70,721
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
22
Financial commitments, guarantees and contingent liabilities
The bank has given a guarantee on behalf of the company to the value of £90,000 to HM Revenue & Customs.
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
439,033
445,367
Between two and five years
871,433
1,302,133
1,310,466
1,747,500
24
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
12,775
12,609
Other information
The company has taken advantage of the exemptions conferred by FR102 not to make disclosures concerning companies wholly owned within the group. Group accounts are available from 7 Three Rivers Business Park, Felixstowe Road, Foxhall, Ipswich, IP10 0BF.
A Director of the company charged the company rent totalling £3,600 (2023: £3,600).
25
Directors' transactions
During the year the director was advanced £46,572 and repaid £46,877. Interest of £305 was charged in respect of the overdrawn balance.
26
Ultimate controlling party
The company is controlled by M. Bahr, who is a director and the shareholder of the parent company.
The ultimate parent company is Brinor Holdings Limited a company incorporated in England and Wales.
BRINOR INTERNATIONAL SHIPPING AND FORWARDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
131,337
397,801
Adjustments for:
Taxation charged
49,002
74,729
Finance costs
4,885
8,615
Investment income
(60,696)
(26,194)
Loss/(gain) on disposal of tangible fixed assets
5,007
(7,238)
Depreciation and impairment of tangible fixed assets
248,242
312,902
Movements in working capital:
Decrease in debtors
540,980
545,538
Increase/(decrease) in creditors
285,175
(1,250,167)
Cash generated from operations
1,203,932
55,986
28
Analysis of changes in net funds
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
1,280,365
538,527
1,818,892
Obligations under finance leases
(206,229)
125,837
(80,392)
1,074,136
664,364
1,738,500
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