Company registration number 05537137 (England and Wales)
STRAUSS LOGISTICS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
11 De Grey Square
De Grey Road
Colchester
Essex
CO4 5YQ
STRAUSS LOGISTICS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 25
STRAUSS LOGISTICS LIMITED
COMPANY INFORMATION
- 1 -
Directors
N Bhagat
Mrs K Pandya
Secretary
Mr D C Pandya
Company number
05537137
Registered office
31 Godfrey Crescent
Takeley
Bishops Stortford
Hertfordshire
United Kingdom
CM22 6FU
Auditor
TC Group
11 De Grey Square
De Grey Road
Colchester
Essex
CO4 5YQ
STRAUSS LOGISTICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present the strategic report for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of the wholesaling of petroleum products to intermediaries and end users in Southern Africa. The company's footprint in the region covers Zimbawe, Zambia, Malawi and South Africa.
Review of the business
The financial year under review remained tough, with the Company operating under a complex and dynamic economic environment characterised by high volatility in prices of refined petroleum products coupled with supply constraints in the regions that we operate in. Zimbabwe continues to be our largest market and 2023 saw the country hold its harmonized elections in August. There was also a number of significant policy changes as the authorities pushed to stabilise the local currency. The multi-currency regime was extended by another five years to 2030. During the period under review, the economy in Zimbabwe recorded positive growth with export earnings increasing by 10% to USD 7.2 billion. Month-on-month blended inflation closed the year at 4.7% compared to 0.1% in January 2023.
The trading environment in the period under review remained challenging driven by higher competition resulting in lower margins whilst volumes sold remained static.
The trading environment continues to be constrained by: -
Principal risks and uncertainties
The process of risk acceptance and management is addressed through policies and internal controls. All policies are approved by the Board and are continuously reviewed by management. Compliance with regulations, legal and ethical standards is a high priority for the Company.
The Company trades primarily in Zimbabwe, which continues to be subject to political and economic uncertainties. The lack of capital and liquidity in the money markets continues to have a negative impact on the country's economy. The resultant risks can be outlined as follows: -
Liquidity constraints
Capital constraints
Lack of foreign currency
Development and performance
Zimbabwe’s economy is forecast to continue its growth in 2024 with increased investments in sectors that have high fuel usage. This increase is expected to further stimulate growth in the downstream manufacturing sector thereby creating jobs and demand in the economy. We believe that the Company will continue to maintain existing levels of trade and/or register a marginal increase. We expect margins to increase slightly as supplies improve and completion decreases due to higher working capital requirements.
STRAUSS LOGISTICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Key performance indicators
Due to the volatility of market that the Company is operating in coupled with the risks and uncertainties outlined above, the Directors of the Company are of the opinion that any meaningful K.P.I.'s would be very difficult to ascertain and of little use.
Other information and explanations
The fiscal year 2023 was marked by a challenging economic environment, primarily due to the substantial depreciation of the Zimbabwean Dollar. This eventually led to the introduction of a new currency, the Zimbabwe Gold (ZIG). The significant currency depreciation experienced during the year continued to constrict market liquidity as industries grappled with reduced access to finance in either Zimbabwean Dollars or USD.
Mrs K Pandya
Director
20 February 2025
STRAUSS LOGISTICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
N Bhagat
Mrs K Pandya
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mrs K Pandya
Director
20 February 2025
STRAUSS LOGISTICS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
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:
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 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.
STRAUSS LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF STRAUSS LOGISTICS LIMITED
- 6 -
Opinion
We have audited the financial statements of Strauss Logistics Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, 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 31 December 2023 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
STRAUSS LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF STRAUSS LOGISTICS LIMITED
- 7 -
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 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 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.
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
STRAUSS LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF STRAUSS LOGISTICS LIMITED
- 8 -
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance 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: https://www.frc.org.uk/auditorsresponsibilities .This description forms part of our auditor’s report.
STRAUSS LOGISTICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF STRAUSS LOGISTICS LIMITED
- 9 -
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Jacqueline Frost ACA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
27 February 2025
Office: Colchester
STRAUSS LOGISTICS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Year
Year
ended
ended
31 December
31 December
2023
2022
Notes
$
$
Turnover
3
234,467,907
245,369,533
Cost of sales
(233,799,696)
(244,258,884)
Gross profit
668,211
1,110,649
Administrative expenses
(296,910)
(395,193)
Other operating income
74,503
10,000
Operating profit
4
445,804
725,456
Interest receivable and similar income
8
151,382
29,524
Interest payable and similar expenses
9
(889)
Profit before taxation
597,186
754,091
Tax on profit
10
(143,234)
(153,459)
Profit for the financial year
453,952
600,632
The profit and loss account has been prepared on the basis that all operations are continuing operations.
STRAUSS LOGISTICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Year
Year
ended
ended
31 December
31 December
2023
2022
$
$
Profit for the year
453,952
600,632
Other comprehensive income
-
-
Total comprehensive income for the year
453,952
600,632
STRAUSS LOGISTICS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
$
$
$
$
Fixed assets
Tangible assets
11
71,305
100,268
Current assets
Debtors
12
59,248,267
49,378,122
Cash at bank and in hand
1,212,321
2,205,716
60,460,588
51,583,838
Creditors: amounts falling due within one year
13
(56,946,854)
(48,545,958)
Net current assets
3,513,734
3,037,880
Total assets less current liabilities
3,585,039
3,138,148
Provisions for liabilities
Deferred tax liability
15
17,852
24,913
(17,852)
(24,913)
Net assets
3,567,187
3,113,235
Capital and reserves
Called up share capital
17
140
140
Profit and loss reserves
3,567,047
3,113,095
Total equity
3,567,187
3,113,235
The financial statements were approved by the board of directors and authorised for issue on 20 February 2025 and are signed on its behalf by:
N Bhagat
Mrs K Pandya
Director
Director
Company registration number 05537137 (England and Wales)
STRAUSS LOGISTICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
$
$
$
Balance at 1 January 2022
140
2,512,463
2,512,603
Period ended 31 December 2022:
Profit and total comprehensive income
-
600,632
600,632
Balance at 31 December 2022
140
3,113,095
3,113,235
Period ended 31 December 2023:
Profit and total comprehensive income
-
453,952
453,952
Balance at 31 December 2023
140
3,567,047
3,567,187
STRAUSS LOGISTICS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash absorbed by operations
20
(3,596,533)
(16,706,507)
Interest paid
(889)
Income taxes paid
(130,989)
(85,793)
Net cash outflow from operating activities
(3,727,522)
(16,793,189)
Investing activities
Purchase of tangible fixed assets
(1,290)
(114,034)
Interest received
151,382
29,524
Net cash generated from/(used in) investing activities
150,092
(84,510)
Financing activities
Repayment of borrowings
2,584,035
6,824,970
Net cash generated from financing activities
2,584,035
6,824,970
Net decrease in cash and cash equivalents
(993,395)
(10,052,729)
Cash and cash equivalents at beginning of year
2,205,716
12,258,445
Cash and cash equivalents at end of year
1,212,321
2,205,716
STRAUSS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information
Strauss Logistics Limited is a private company limited by shares incorporated in England and Wales. The registered office is 31 Godfrey Crescent, Takeley, Bishops Stortford, Hertfordshire, United Kingdom, CM22 6FU.
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 US dollars which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on release of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Commission income is recognised when all entitlement conditions have been met.
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.
STRAUSS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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:
Fixtures and fittings
10% on cost
Computers
10% on cost
Motor vehicles
25% on cost
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.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
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.
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.
STRAUSS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
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.
STRAUSS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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 profit and loss account, 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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Foreign exchange
Transactions in currencies other than US dollars 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 directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
In the opinion of the directors there are no significant judgements or areas of estimation uncertainty.
3
Turnover and other revenue
2023
2022
$
$
Turnover analysed by class of business
Sale of petroleum products
234,467,907
245,369,533
STRAUSS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 19 -
2023
2022
$
$
Turnover analysed by geographical market
Africa
234,467,907
245,369,533
2023
2022
$
$
Other revenue
Interest income
151,382
29,524
4
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
$
$
Exchange (gains)/losses
(45,144)
6,309
Depreciation of owned tangible fixed assets
30,253
22,991
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
$
$
For audit services
Audit of the financial statements of the company
6,312
5,772
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management
2
2
Other
1
1
Total
3
3
STRAUSS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 20 -
Their aggregate remuneration comprised:
2023
2022
$
$
Wages and salaries
182,141
242,877
Social security costs
14,293
24,587
Pension costs
3,521
3,245
199,955
270,709
7
Directors' remuneration
2023
2022
$
$
Remuneration for qualifying services
62,264
109,558
Company pension contributions to defined contribution schemes
1,630
1,617
63,894
111,175
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
8
Interest receivable and similar income
2023
2022
$
$
Interest income
Interest on bank deposits
151,382
29,524
2023
2022
Investment income includes the following:
$
$
Interest on financial assets not measured at fair value through profit or loss
151,382
29,524
9
Interest payable and similar expenses
2023
2022
$
$
Other finance costs:
Other interest
889
STRAUSS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
10
Taxation
2023
2022
$
$
Current tax
UK corporation tax on profits for the current period
150,295
130,095
Adjustments in respect of prior periods
43
Total current tax
150,295
130,138
Deferred tax
Origination and reversal of timing differences
(7,061)
23,321
Total tax charge
143,234
153,459
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
$
$
Profit before taxation
597,186
754,091
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
149,297
143,277
Tax effect of expenses that are not deductible in determining taxable profit
3,352
10,139
Adjustments in respect of prior years
43
Effect of change in corporation tax rate
(9,415)
Taxation charge for the period
143,234
153,459
STRAUSS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
11
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
$
$
$
$
Cost
At 1 January 2023
18,416
23,752
112,533
154,701
Additions
1,290
1,290
At 31 December 2023
18,416
25,042
112,533
155,991
Depreciation and impairment
At 1 January 2023
16,713
16,570
21,150
54,433
Depreciation charged in the year
502
1,618
28,133
30,253
At 31 December 2023
17,215
18,188
49,283
84,686
Carrying amount
At 31 December 2023
1,201
6,854
63,250
71,305
At 31 December 2022
1,703
7,182
91,383
100,268
12
Debtors
2023
2022
Amounts falling due within one year:
$
$
Trade debtors
47,588,786
41,060,816
Other debtors
4,065,409
4,001,283
Prepayments and accrued income
7,594,072
4,316,023
59,248,267
49,378,122
13
Creditors: amounts falling due within one year
2023
2022
Notes
$
$
Other borrowings
14
33,342,125
30,758,090
Trade creditors
12,922,535
11,315,551
Corporation tax
150,295
130,989
Other taxation and social security
6,013
5,673
Other creditors
1,225,423
79,320
Accruals and deferred income
9,300,463
6,256,335
56,946,854
48,545,958
STRAUSS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
14
Loans and overdrafts
2023
2022
$
$
Loans from group undertakings
33,342,125
30,758,090
Payable within one year
33,342,125
30,758,090
The loans from group undertakings are interest-free, repayable on demand and are not secured.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
$
$
Accelerated capital allowances
17,852
24,913
2023
Movements in the year:
$
Liability at 1 January 2023
24,913
Credit to profit or loss
(7,061)
Liability at 31 December 2023
17,852
The deferred tax liability set out above is expected to reverse within nine years and relates to accelerated capital allowances that are expected to mature within the same period.
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
$
$
Charge to profit or loss in respect of defined contribution schemes
3,521
3,245
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.
STRAUSS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
$
$
Issued and fully paid
Ordinary shares of $1.40 each
100
100
140
140
18
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
$
$
Aggregate compensation
154,445
232,363
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
$
$
$
$
Other related parties
138,494,673
117,992,382
6,058,066
8,142,034
2023
2022
Amounts due to related parties
$
$
Other related parties
35,544,586
32,122,542
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
$
$
Other related parties
32,476,785
30,664,873
19
Ultimate controlling party
The company's immediate parent company is Chancellor Investment Management Limited, a company incorporated in Mauritius.
STRAUSS LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Ultimate controlling party
(Continued)
- 25 -
The company's ultimate controlling party is the Vedani Trust, a discretionary trust registered in BVI.
20
Cash absorbed by operations
2023
2022
$
$
Profit for the year after tax
453,952
600,632
Adjustments for:
Taxation charged
143,234
153,459
Finance costs
889
Investment income
(151,382)
(29,524)
Depreciation and impairment of tangible fixed assets
30,253
22,991
Movements in working capital:
Increase in debtors
(9,870,145)
(16,660,470)
Increase/(decrease) in creditors
5,797,555
(794,484)
Cash absorbed by operations
(3,596,533)
(16,706,507)
21
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
$
$
$
Cash at bank and in hand
2,205,716
(993,395)
1,212,321
Borrowings excluding overdrafts
(30,758,090)
(2,584,035)
(33,342,125)
(28,552,374)
(3,577,430)
(32,129,804)
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