Company registration number 01048185 (England and Wales)
SEQUANA MARITIME LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SEQUANA MARITIME LIMITED
COMPANY INFORMATION
Directors
Mrs K J Coleman
Mr M R Coleman
Secretary
M R Coleman
Company number
01048185
Registered office
200 Court Road
Eltham
London
SE9 4EW
Auditor
Gravita II LLP
Aldgate Tower
2 Leman Street
London
E1 8FA
Business address
200 Court Road
Eltham
London
SE9 4EW
SEQUANA MARITIME LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 31
SEQUANA MARITIME LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their Strategic Report for the year ended 31 December 2023.

Principal activities and review of the business

The principal activity of the group remains that of ship owning, the operation of time chartered vessels, and performing ship and cargo brokerage for third party clients.

 

The group’s results for the year show a pre-tax profit of £3.7m (2022: £3.1m). All Dry Bulk cargo markets experienced reduced earnings through 2023 with a consequential decline in margins. In our Handy-size sector time charter rates fluctuated and exposure to the spot market was often difficult. Rates were unpredictable with owners always aiming to maintain higher levels and holding out until the last minute. The general downward drift was interrupted by spikes which were not always easy to avoid.

 

Trading conditions were not conducive to expansion but in terms of cargo volumes and number of voyages executed we managed to maintain our position. Market share remained roughly the same as in 2022.

Shipping

Imperial’s shipping operations contributed a gross profit of £3.1m in the year (2022: £6.4m), from its chartered voyages. The main market for southbound voyages continues to be Egypt where the country’s financial position remained fragile. The lack of availability of dollars restricted trade in all segments with sawn timber having less priority than some other imported goods which are considered to be more essential. Sawmills and traders have struggled to deal with the consequences and, in some cases, have been forced to adopt new approaches. Traders without cashflow have been unable to confirm business until advance payments are received which is often at very last minute. Traders with cash are in short supply. Some of the main sawmills (all of which have experienced a drop in selling prices against a rising cost base) have been forced to sit on stocks until sales materialise and have not moved goods in more usual regular flows. The result for the shipping companies is that the final cargo loaded on the vessel is seldom the one which was planned for. The lack of predictability has led to inefficiencies with, for example, more ports being used to fulfil the loading as ships search around for the available cargo. Ship-operators are doing themselves no favours by reducing freight prices to entice last minute parcels to load but the tactic is often unavoidable.

The customer base is changing since Sawmills have, in some cases, experimented in dealing with new clients who have the attraction of being cash buyers. Some of these may be transferring their experience of other markets to the timber trade which is not always easy to accommodate.

 

The northbound trade from Eastern Mediterranean has remained fairly constant over 2023 except for the shipment of windmill blades and towers. This segment dropped due to more competition from multi-purpose and smaller deadweight vessels which are no longer being employed in the container trades. It will be difficult for this segment to re-emerge under such conditions.

 

Timberland suffered a year of reduced earnings due to commercial conflict which saw the vessel remain in Alexandria for one month without income and with the loss of high-earning business. The results for Midlife Shipping Ltd have diminished accordingly.

 

The arbitration between Imperial and one of its counterparties is making slow progress with no resolution anticipated in the near future.

 

Chartering commissions earned by Sequana from brokerage transactions with third parties dropped back as expected but only according to the general decline in the time charter rates on which they are based. The actual number of transactions remained at a high level and were maintained by a very active broking department.

 

Commissions earned by Sequana from its freight forwarding business to West Africa remain weak with no change in market conditions from last year.

 

SEQUANA MARITIME LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future developments

During 2024 Imperial is generally benefiting from several longer-term charters which cover multiple voyages. These charters are useful when trying to avoid the aforementioned market spikes, but such events are by their nature unpredictable and have been of a shorter duration than expected. Our timings have been somewhat fortuitous in this respect, but we are cautious of taking too many longer positions when a negative sentiment is pervasive.

 

Cash flow management remains an engaging exercise. Freight payment arrears remain a challenge.

There has been some stability in sentiment in Egypt buoyed by announcements of major government projects, but general conditions are depressed, and inflation is high. Devaluation of the local currency has continued but downward movements are predictable. Many trades in Egypt have relied on the supply of dollars from the unofficial Black Market but dollar traders have closed doors after pressure from the authorities. Commodity traders are looking for new ways to do business and somehow, they manage to adapt their models, but this often demands more flexibility and sacrifice from those with whom they engage. Shipping is no exception.

 

We continue to rely on the willingness of one of our collaborative shipping partners and vessel suppliers to support our operations by exercising tolerance of delayed inward payments. Our predictions of better cash flows have not materialised as anticipated. Improvement is always around the corner, but the bend is a long one. We are actively putting in place measures which will offer some security against due debts, but these are not quick fix solutions. We are, however, confident that the consequences of cash flow pressure can be managed, mitigated and resolved in the medium term.

Financial Risk Management

The directors have identified the need to manage the group’s material financial risks which are principally liquidity risk, foreign exchange risk and going concern risk as follows:

 

The group finances its business from a combination of cash flow arising from its operations. Liquidity risk is the risk that the group will encounter difficulties in meeting its obligations. This risk is managed by ensuring that regular reviews of the group’s cash flow are undertaken so that the group can meet its obligations in order to continue to finance its operations and investments.

 

The group’s activities are principally conducted in US dollars as well as Euros. The directors closely monitor the group’s exposure. The directors have considered the use of derivative instruments when commercially appropriate to assist in managing such risks. No such instruments were held by the group at any time during the year or at the year end.

 

A potential financial risk also exists in respect of funding requirements over the short to medium term. The directors review the group’s funding requirements on a regular basis and maintain on-going monitoring in respect of trading performance and future working capital requirements. This risk is discussed in more detail in Note 1.4 Going Concern.

 

On behalf of the board

Mr M R Coleman
Director
23 January 2025
SEQUANA MARITIME LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of voyage based chartering and commission chartering

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors have not recommended payment of a further dividend.

Directors

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

Mrs K J Coleman
Mr M R Coleman
Statement of disclosure to auditor

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

Strategic report

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

Audit exemptions for subsidiaries

The Companies & Limited Liability Partnerships (Accounts & Audit Exemptions & Change of Accounting Framework) Regulations 2012 (S1 2012/2301) amends the Companies Act 2006 from 1 October 2012 in relation to statutory audit requirements.

 

Sequana Maritime Limited has agreed to guarantee all the liabilities of Midlife Shipping Limited and of Tyrusland Limited (subsidiaries of Imperial Shipping Limited) at 31 December 2023; both companies have claimed the audit exemption from mandatory audit that is permitted by these regulations.

On behalf of the board
Mr M R Coleman
Director
23 January 2025
SEQUANA MARITIME LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

SEQUANA MARITIME LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEQUANA MARITIME LIMITED
- 5 -

Qualified Opinion

We have audited the financial statements of Sequana Maritime Limited (the 'parent company') and its subsidiaries ('the group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the Basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

As explained in Note 12 to the financial statements, as at the reporting date the Group has a trade debtor balance owed by a principal trading partner of £1.77m (net of a provision brought forward of £2.57m) and a loan balance owed by that partner of £5.65m. Recovery of these balances is dependant upon the continuing trading of this partner and also the relaxation of US $ foreign currency controls by the Egyptian authorities. Whilst the directors remain confident of the full recovery of these balances, in 2024 the net trading exposure to this partner has reduced by some £140k, whilst the loan balance remains unchanged. We were unable to obtain sufficient appropriate audit evidence about the recoverability of these balances because it is not possible to forecast with any degree of certainty how the Egyptian authorities will deal with the ongoing US $ currency problems and thus the possible future impact on the ability of this trading partner to continue to trade in this jurisdiction. Consequently, we were unable to determine whether any adjustments to these amounts were necessary. In addition, were any adjustments to these amounts to be required, the strategic report would also need to be amended.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 qualified opinion.

Material uncertainty relating to going concern

We draw attention to note 1.4 to the financial statements concerning the Company’s (and Group's) ability to continue as a going concern. As explained in note 1.4 the Group’s forecasts depend upon factors which are inherently uncertain in the current economic environment. These conditions along with other matters as set forth in note 1.4 indicate that a material uncertainty exists that may cast significant doubt on the Company’s (and Group's) ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Company (and Group) were unable to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

SEQUANA MARITIME LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEQUANA MARITIME LIMITED
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the recoverability of trade and loan balances totalling £7.42m at 31 December 2023. We have concluded that where the other information refers to these balances or related balances such as profit before tax, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the Group and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

Arising solely from the limitation on the scope of our work relating to specific debtor balances, referred to above:

 

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

Responsibilities of directors

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

SEQUANA MARITIME LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEQUANA MARITIME LIMITED
- 7 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

The extent to which the audit was considered capable of detecting irregularities including fraud.

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

 

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

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

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

SEQUANA MARITIME LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEQUANA MARITIME LIMITED
- 8 -

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Ian Hughes ACA (Senior Statutory Auditor)
For and on behalf of Gravita II LLP
24 January 2025
Chartered Accountants
Statutory Auditor
Aldgate Tower
2 Leman Street
London
E1 8FA
SEQUANA MARITIME LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
2
39,723,486
50,564,227
Cost of sales
(34,241,776)
(38,688,156)
Gross profit
5,481,710
11,876,071
Administrative expenses
(1,768,561)
(8,770,101)
Operating profit
3
3,713,149
3,105,970
Interest receivable and similar income
-
0
133
Amounts written off investments
7
(656)
-
Profit before taxation
3,712,493
3,106,103
Tax on profit
8
-
0
42,781
Profit for the financial year
17
3,712,493
3,148,884
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(650,734)
847,588
Total comprehensive income for the year
3,061,759
3,996,472
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
SEQUANA MARITIME LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,769,606
2,575,855
Current assets
Debtors
12
17,561,521
17,671,072
Cash at bank and in hand
244,610
30,304
17,806,131
17,701,376
Creditors: amounts falling due within one year
13
(8,891,596)
(12,638,228)
Net current assets
8,914,535
5,063,148
Total assets less current liabilities
10,684,141
7,639,003
Provisions for liabilities
Deferred tax liability
14
286,467
303,088
(286,467)
(303,088)
Net assets
10,397,674
7,335,915
Capital and reserves
Called up share capital
16
79,920
79,920
Capital redemption reserve
17
28,080
28,080
Profit and loss reserves
17
10,289,674
7,227,915
Total equity
10,397,674
7,335,915
The financial statements were approved by the board of directors and authorised for issue on 23 January 2025 and are signed on its behalf by:
23 January 2025
Mr M R Coleman
Director
Company registration number 01048185 (England and Wales)
SEQUANA MARITIME LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
228,050
234,778
Investments
10
6,200,000
6,200,000
6,428,050
6,434,778
Current assets
Debtors
12
2,607,100
2,656,568
Cash at bank and in hand
236,915
11,797
2,844,015
2,668,365
Creditors: amounts falling due within one year
13
(5,861,761)
(5,711,371)
Net current liabilities
(3,017,746)
(3,043,006)
Net assets
3,410,304
3,391,772
Capital and reserves
Called up share capital
16
79,920
79,920
Capital redemption reserve
17
28,080
28,080
Profit and loss reserves
17
3,302,304
3,283,772
Total equity
3,410,304
3,391,772

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £18,532 (2022 - £294,754 profit).

The financial statements were approved by the board of directors and authorised for issue on 23 January 2025 and are signed on its behalf by:
23 January 2025
Mr M R Coleman
Director
Company registration number 01048185 (England and Wales)
SEQUANA MARITIME LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
79,920
28,080
3,231,443
3,339,443
Year ended 31 December 2022:
Profit for the year
-
-
3,148,884
3,148,884
Other comprehensive income:
Currency translation differences
-
-
847,588
847,588
Total comprehensive income
-
-
3,996,472
3,996,472
Balance at 31 December 2022
79,920
28,080
7,227,915
7,335,915
Year ended 31 December 2023:
Profit for the year
-
-
3,712,493
3,712,493
Other comprehensive income:
Currency translation differences
-
-
(650,734)
(650,734)
Total comprehensive income
-
-
3,061,759
3,061,759
Balance at 31 December 2023
79,920
28,080
10,289,674
10,397,674
SEQUANA MARITIME LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
79,920
28,080
2,989,018
3,097,018
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
294,754
294,754
Balance at 31 December 2022
79,920
28,080
3,283,772
3,391,772
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
18,532
18,532
Balance at 31 December 2023
79,920
28,080
3,302,304
3,410,304
SEQUANA MARITIME LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
770,024
583,580
Income taxes paid
(16,621)
(348,449)
Net cash inflow from operating activities
753,403
235,131
Investing activities
Purchase of tangible fixed assets
(795)
(829,416)
Proceeds from disposal of tangible fixed assets
655
-
Proceeds from disposal of investments
(656)
-
Interest received
-
0
133
Net cash used in investing activities
(796)
(829,283)
Net increase/(decrease) in cash and cash equivalents
752,607
(594,152)
Cash and cash equivalents at beginning of year
30,304
134,169
Effect of foreign exchange rates
(538,301)
490,287
Cash and cash equivalents at end of year
244,610
30,304
SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Sequana Maritime Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 200 Court Road, Eltham, London, SE9 4EW200 Court Road, Eltham, London, SE9 4EW.

 

The group consists of Sequana Maritime Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

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

 

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

SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Sequana Maritime Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

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

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At 31 December 2023, the Group had net current assets of £8.91m (2022: £5.06m) having recorded a profit after tax of £3.1m (2022: £4.0m).

Note 12 also discloses a debtor due to the company from a related party of approximately £1.03m (2022: £1.09m) where the timing of full recoverability is not possible to predict with any certainty.

The directors have reviewed the 2024 draft group management accounts to November 2024 as well as preparing financial forecasts for 2025 on the basis of various trading and working capital assumptions. Based on its forecasting exercise the directors have concluded that the group will be profitable in 2024 and 2025. Forecasting for the group’s ongoing shipping operations is not an exact science with actual outturns being impacted by the general economic situation globally and especially the war in Ukraine and more recently the events in the Middle East which impacts upon time charter rates beyond the control of individual ship owning groups. In addition, although the directors remain confident that the trading balance and loans (Note 12) made to a principal trading partner remain fully recoverable, there can be no certainty as to the timing of this.

The forecast results do not include any further provision against outstanding trade debtors or loans advanced and nor do they forecast a significant reduction in the balance owed to the SOL group (£2.6m at the balance sheet date but currently around £5.2m). The directors have concluded that the group remains reliant upon the continued support of the SOL group to enable it to continue trading as forecast. Relations with the SOL group remain excellent and the trading balance remains consistent with the prior period. There remains a charge on the balance owed to them (the debt being secured on a fellow subsidiary’s ship) and should the SOL group seek repayment of the outstanding balance then currently the vessel would likely need to be sold or new external finance sought. Currently the directors have no indication that the SOL group will seek repayment of the outstanding balance until the group are able to make repayment without causing any financial distress.

Based on the factors outlined above the directors have concluded that the company (and group) will be able to realise its assets and discharge its liabilities in the normal course of business for the foreseeable future. The directors have therefore continued to adopt the going concern basis in preparing these financial statements.

Although the directors are satisfied that adopting the going concern basis is appropriate, there can be no certainty that the outcome of the matters discussed above will be as forecast by the directors. Therefore, there exists a material uncertainty that may cast a significant doubt upon the company’s (and group’s) ability to continue as a going concern and to meet its liabilities as they fall due.

The financial statements do not include any adjustments to the value of balance sheet assets, or provision for further liabilities which would result should the going concern concept not be valid.

1.5
Turnover

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

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

Shipping

 

i. Chartered vessels

Contracts are made in the spot market for the use of a vessel for a specific voyage for a specified charter rate. If a charter agreement exists and collection of the related revenue is reasonably assured, revenue is recognised when the vessels have been fully loaded and have departed for their ultimate destination.

 

Voyage expenses, primarily consisting of port, canal and bunker expenses that are unique to a particular charter, are paid by the shipping companies under voyage charter arrangements. All voyage expenses are recognised in line with the related revenue. Ship management and commissions are expenses as incurred.

 

ii. Vessels chartered by the group

Revenue is recognised when the vessels have been fully loaded and have departed for their ultimate destination.

 

Voyage expenses, primarily consisting of port, canal and bunker expenses that are unique to a particular charter, are paid by the the relevant group company under voyage charter arrangements. All voyage expenses are recognised in line with the related revenue. Commissions are expenses as incurred.

 

iii. Time chartered vessels

Contracts are entered into for the use of a shipping company vessel for a fixed period of time at a specified daily charter hire rate. Revenue is recognised as it is earned rateably over the duration of the time charter period.

 

Voyage expenses, primarily consisting of port, canal and bunker expenses that are unique to a particular charter, are paid by the directly by the charterer under time charter arrangements, except for commissions and ship management fees, which are always paid by the shipping companies.

 

iv. Bareboat time chartered vessels

Contracts are entered into for the use of a vessel for a fixed period of time at a specified daily charter hire rate. Revenue is recognised as it is earned rateably over the duration of the time charter period.

 

Voyage expenses, primarily consisting of port, canal and bunker expenses that are unique to a particular charter, are paid for directly by the charterer under the time charter arrangements, except for commissions, which are always paid by the shipping companies.

1.6
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:

Freehold land and buildings
over 50 years
Office equipment
over 5 years or 25% reducing balance
Fixtures and fittings
over 3 years or 15% reducing balance
Ships
between 3 and 10 years

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

SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life. Subsequent expenditure which results in improvements or new fixtures is capitalised over the remaining expected useful life of the ship, while dry docking costs are expensed over a period to the next scheduled docking (usually 3 years).

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include 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.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.11
Equity instruments

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

1.12
Taxation

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

Current tax

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

Deferred tax

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

 

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

SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.13
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.

1.14
Retirement benefits

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

1.15
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.

 

The assets and liabilities of subsidiary undertakings with a presentational currency other than sterling are translated at the closing exchange rate whilst the profit and loss accounts are translated using the average rate for the year. Gains and losses arising on these translations are taken to reserves, net of exchange differences on related foreign currency borrowings.

2
Turnover

The total turnover of the group derives from its principal activity of shipping services outside the UK.

 

3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(227,065)
480,835
Depreciation of owned tangible fixed assets
693,956
800,369
Bad and doubtful debts
-
6,237,411
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
58,550
12,700
Audit of the financial statements of the company's subsidiaries
32,663
14,679
91,213
27,379
SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Shipping and chartering
7
7
7
7
Administration
2
2
2
2
Directors
2
2
2
2
Total
11
11
11
11

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
670,967
777,332
670,967
777,332
Social security costs
75,735
91,138
75,735
91,138
Pension costs
42,704
41,222
42,704
41,222
789,406
909,692
789,406
909,692
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
45,000
122,000
Company pension contributions to defined contribution schemes
24,000
12,000
69,000
134,000
7
Amounts written off investments
2023
2022
£
£
Loss on disposal of financial assets held at cost
(656)
-
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
4,420
Over provision in prior years
-
0
(47,201)
Total current tax
-
0
(42,781)
SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 23 -

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

2023
2022
£
£
Profit before taxation
3,712,493
3,106,103
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
872,436
590,160
Tax effect of expenses that are not deductible in determining taxable profit
30,227
731,923
(Tax effect of utilisation of tax losses not previously recognised) / Carried forward
(637,775)
(183,810)
Permanent capital allowances in excess of depreciation
162,830
146,623
Under/(over) provided in prior years
-
0
(47,201)
Foreign exchange differences
273
-
0
Adjustment for profits falling within the tonnage tax regime
(283,644)
(721,741)
Timing difference on provisions
(17,165)
(563,155)
Tax under the tonnage tax scheme
-
0
4,420
Loan relationship credits
(60,968)
-
0
NTLR debits
808
-
NTLR credits
(67,022)
-
Taxation charge/(credit)
-
(42,781)
SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
9
Tangible fixed assets
Group
Freehold land and buildings
Office equipment
Fixtures and fittings
Ships
Total
£
£
£
£
£
Cost
At 1 January 2023
250,000
42,305
416,662
9,858,946
10,567,913
Additions
-
0
795
-
0
-
0
795
Disposals
-
0
(4,784)
-
0
-
0
(4,784)
Exchange adjustments
-
0
-
0
(17,938)
(543,631)
(561,569)
At 31 December 2023
250,000
38,316
398,724
9,315,315
10,002,355
Depreciation and impairment
At 1 January 2023
39,994
20,797
413,398
7,517,869
7,992,058
Depreciation charged in the year
1,666
4,712
490
687,088
693,956
Eliminated in respect of disposals
-
0
(4,129)
-
0
-
0
(4,129)
Exchange adjustments
-
0
-
0
(17,938)
(431,198)
(449,136)
At 31 December 2023
41,660
21,380
395,950
7,773,759
8,232,749
Carrying amount
At 31 December 2023
208,340
16,936
2,774
1,541,556
1,769,606
At 31 December 2022
210,006
21,508
3,264
2,341,077
2,575,855
Company
Freehold land and buildings
Office equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
250,000
42,305
91,354
383,659
Additions
-
0
795
-
0
795
Disposals
-
0
(4,784)
-
0
(4,784)
At 31 December 2023
250,000
38,316
91,354
379,670
Depreciation and impairment
At 1 January 2023
39,994
20,797
88,090
148,881
Depreciation charged in the year
1,666
4,712
490
6,868
Eliminated in respect of disposals
-
0
(4,129)
-
0
(4,129)
At 31 December 2023
41,660
21,380
88,580
151,620
Carrying amount
At 31 December 2023
208,340
16,936
2,774
228,050
At 31 December 2022
210,006
21,508
3,264
234,778
SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
10
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
11
-
0
-
0
6,200,000
6,200,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
6,200,000
Carrying amount
At 31 December 2023
6,200,000
At 31 December 2022
6,200,000
SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
11
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Elder Shipping Limited**
*
Ordinary
100.00
Older Shipping Limited**
*
Ordinary
100.00
Senior Shipping Limited**
*
Ordinary
100.00
Veteran Shipping Limited**
*
Ordinary
100.00
Midlife Shipping Limited**
*
Ordinary
100.00
Antique Shipping Limited**
*
Ordinary
100.00
Doyen Shipping Limited**
*
Ordinary
100.00
Medro Shipping Limited**
*
Ordinary
100.00
Vikingland Limited***
*
Ordinary
100.00
Vegaland Limited***
*
Ordinary
100.00
Tyrusland Limited***
*
Ordinary
100.00
Thebeland Limited***
*
Ordinary
100.00
Imperial Shipping Limited
*
Ordinary
100.00
Primal Shipping Limitd**
*
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

*
200 Court Road, Eltham, London, SE9 4EW

 

**These companies are wholly owned by Imperial Shipping Limited

***These companies are wholly owned by Medro Shipping Company Limited

Audit Exemption

Certain subsidiary companies have taken the exemption in section 479A of the Companies Act 2006 (the Act) from the requirements in the Act for their individual accounts to be audited. These companies are:

 

Midlife Shipping Limited

Tyrusland Limited

 

SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
8,866,225
12,083,125
18,653
37,343
Amounts owed by group undertakings
-
-
1,240,990
1,015,127
Other debtors
6,820,247
4,281,018
1,128,416
1,127,051
Prepayments and accrued income
1,830,252
1,262,132
174,244
432,250
17,516,724
17,626,275
2,562,303
2,611,771
Amounts falling due after more than one year:
Deferred tax asset (note 14)
44,797
44,797
44,797
44,797
Total debtors
17,561,521
17,671,072
2,607,100
2,656,568

Group trade debtors are stated after provisions for impairment of £8.61m (2022: £10.08m).

 

Included within amounts owed by group undertakings are trade receivable balances that are unsecured, interest free and repayable on demand.

 

Included with Other Debtors (Company and Group) is approximately £1.03m (2022: £1.09m) (repayable on demand) owed by a related party. The balance is stated after provisions for impairment of £2.3m (2022: £2.2m). The related party is itself reliant upon the recovery of amounts it has advanced to another company to be able to make repayments to Sequana. This other company has a history of loss making and whilst the directors believe that the net debt outstanding will eventually be recovered it is highly unlikely to be received within 12 months of formal approval of these financial statements. Currently it is not possible to predict with any certainty the timing of full recoverability of the debt.

 

Included within Trade Debtors (Group) is approximately £1.77m (2022: £2.24m) due from a trading partner who also owes the group a loan balance of £5.65m (2022: £2.92m) (included in Other Debtors). The trade debtor balance is stated after provisions for impairment of £2.57m (2022: £2.57m). The group has continued to trade with this partner in 2024 but, although receiving monies for some current 2024 voyages, the overall net trading balance has only decreased by around £140k. At the date of approval of these financial statements, the loan balance outstanding remains at £5.65m with no repayments having been received. The amount of these balances outstanding is not in dispute and the directors remain confident that full settlement will be received. Currently however it is not possible to predict with any certainty the timing of the full recovery of the outstanding balances.

SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
13
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
4,550,837
9,130,195
32,801
53,375
Amounts owed to group undertakings
-
0
-
0
5,307,129
5,146,047
Other taxation and social security
96,509
7,274
96,509
7,274
Other creditors
2,838,217
940,541
13,262
15,712
Accruals and deferred income
1,406,033
2,560,218
412,060
488,963
8,891,596
12,638,228
5,861,761
5,711,371

Included within amounts owed to group undertakings are trade payable balances that are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

14
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
286,467
303,088
-
-
Timing differences on provisions
-
-
44,797
44,797
286,467
303,088
44,797
44,797
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Timing differences on provisions
-
-
44,797
44,797
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 January 2023
258,291
(44,797)
Credit to other comprehensive income
(16,621)
-
Liability/(Asset) at 31 December 2023
241,670
(44,797)
SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,704
41,222

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

16
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
79,920
79,920
79,920
79,920
17
Reserves
Capital redemption reserve

Capital redemption reserve represents the nominal value of shares repurchased and still held by the company.

Profit and loss reserves

Profit and loss reserves represents accumulated comprehensive income for the year and prior periods less dividends paid.

18
Financial commitments, guarantees and contingent liabilities

Loss of cargo

 

The P&I claim against Imperial Shipping regarding a 2021 voyage previously reported is still ongoing. The case will likely be going to arbitration in 2025, however no date has yet been set. The outcome is not certain, and currently although the directors remain confident of success it is not possible to predict with any accuracy what award could be made against the company should we be unsuccessful in the arbitration hearing. As a result, no provision for this has been made in the financial statements.

 

Subsidiary exemptions

 

The following subsidiary companies have taken advantage of the exemption in section 479A of the Companies Act 2006:

 

Midlife Shipping Limited

Tyrusland Limited

 

In order for these subsidiary companies to take this audit exemption, the company has guaranteed all outstanding liabilities totalling $434k of those subsidiary companies at 31 December 2023 until those liabilities are satisfied in full.

SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
19
Related party transactions
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Other related parties
937,281
924,829

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
1,089,251
1,088,711
Company
Other related parties
1,089,251
1,088,711
20
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,712,493
3,148,884
Adjustments for:
Taxation charged/(credited)
-
0
(42,781)
Finance costs
-
0
-
Investment income
-
0
(133)
Depreciation and impairment of tangible fixed assets
693,956
800,369
Other gains and losses
656
-
Movements in working capital:
Decrease/(increase) in debtors
109,551
(4,444,261)
(Decrease)/increase in creditors
(3,746,632)
1,121,502
Cash generated from operations
770,024
583,580
SEQUANA MARITIME LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
21
Analysis of changes in net debt - group
2023
£
Opening net funds
Cash and cash equivalents
30,304
Changes in net debt arising from:
Cash flows of the entity
752,607
Changes in market value and exchange rates
(538,301)
Closing net funds as analysed below
244,610
Closing net funds
Cash and cash equivalents
244,610
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