Company Registration No. 02332841 (England and Wales)
HEMISPHERE FREIGHT SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Affinia
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
HEMISPHERE FREIGHT SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr A Perrin
Mr D Norris
Mr D Salt
Mr L Perrin
Mr C Perrin
Secretary
Mrs T Perrin
Company number
02332841
Registered office
Hemisphere House
53-65 White House Road
Ipswich
Suffolk
UK
IP1 5PB
Auditor
Affinia (Colchester)
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
HEMISPHERE FREIGHT SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of total comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
HEMISPHERE FREIGHT SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Review of the business

During the year turnover decreased by 15.1% (2023: decrease by 22.07%) and the company achieved a gross profit margin of 36.9% (2023: 28.7%).

 

Profit before tax has decreased to £345,234 from £1,548,672.

Principal risks and uncertainties

The main risk to the company continues to be the general condition of the economy but the directors are confident that the company is well placed to deal with any issues as they arise, given the increased strength of the company's balance sheet.

Development and performance

The company's aim is to continue to achieve growth in terms of market share and profitability in future years.

Key performance indicators

Given the straight forward nature of the business, the company's directors are of the opinion that a more detailed analysis, using key performance indicators, is not necessary to understand the development, performance or position of the business.

Future developments

The company now holds certification with ISO 9001 after stringent review of its internal quality management procedures.

 

ISO 9001 is an internationally recognized Quality Management System (QMS) standard that is designed to streamline operations, reduce costs, satisfy more customers and promote effective relationships between the company and its stakeholders and supply chain.

On behalf of the directors

Mr A Perrin
Director
13 March 2025
HEMISPHERE FREIGHT SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of a haulage and logistics provider.

Directors

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

Mr A Perrin
Mr D Norris
Mr D Salt
Mr L Perrin
Mr C Perrin
Results and dividends

The results for the year are set out on page 8.

The reported profit before tax for the year amounted to £345,234 (2023: £1,548,672). Dividends of £350,000 (2023: £165,800) have been paid to Perrin Group Holdings Limited.

Auditor

The auditor, Affinia (Colchester), are deemed to be reappointed under section 487(2) of the Companies Act 2006.

 

Each of the persons who is a director at the date of approval of this report confirm that:

 

 

 

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.

HEMISPHERE FREIGHT SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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. It has done so in respect of future developments and post balance sheet events.

On behalf of the board
Mr A Perrin
Director
13 March 2025
HEMISPHERE FREIGHT SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 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.

HEMISPHERE FREIGHT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HEMISPHERE FREIGHT SERVICES LIMITED
- 5 -
Opinion

We have audited the financial statements of Hemisphere Freight Services Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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:

Basis for opinion

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.

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.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

HEMISPHERE FREIGHT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HEMISPHERE FREIGHT SERVICES LIMITED
- 6 -
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:

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. 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.

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 company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

HEMISPHERE FREIGHT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HEMISPHERE FREIGHT SERVICES LIMITED
- 7 -

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:

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 or collusion.

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.

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.

Shaun Roberts
Senior Statutory Auditor
For and on behalf of Affinia (Colchester)
14 March 2025
Chartered Accountants
Statutory Auditor
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
HEMISPHERE FREIGHT SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
42,132,317
49,627,237
Cost of sales
(26,552,094)
(35,385,418)
Gross profit
15,580,223
14,241,819
Administrative expenses
(15,147,209)
(12,627,760)
Operating profit
5
433,014
1,614,059
Interest payable and similar expenses
8
(87,780)
(65,387)
Profit before taxation
345,234
1,548,672
Tax on profit
9
-
0
(206,703)
Profit for the financial year
345,234
1,341,969

The income statement has been prepared on the basis that all operations are continuing operations.

HEMISPHERE FREIGHT SERVICES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
4,907,718
3,064,060
Current assets
Stocks
30,099
44,263
Debtors
12
12,181,611
8,454,542
Cash at bank and in hand
221,073
2,387,770
12,432,783
10,886,575
Creditors: amounts falling due within one year
13
(11,269,607)
(7,799,722)
Net current assets
1,163,176
3,086,853
Total assets less current liabilities
6,070,894
6,150,913
Creditors: amounts falling due after more than one year
14
(991,895)
(1,067,148)
Provisions for liabilities
Deferred tax liability
17
442,949
442,949
(442,949)
(442,949)
Net assets
4,636,050
4,640,816
Capital and reserves
Called up share capital
20
20,200
20,200
Profit and loss reserves
4,615,850
4,620,616
Total equity
4,636,050
4,640,816

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 13 March 2025 and are signed on its behalf by:
Mr A Perrin
Director
Company registration number 02332841 (England and Wales)
HEMISPHERE FREIGHT SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
20,200
3,444,447
3,464,647
Year ended 30 June 2023:
Profit and total comprehensive income
-
1,341,969
1,341,969
Dividends
10
-
(165,800)
(165,800)
Balance at 30 June 2023
20,200
4,620,616
4,640,816
Year ended 30 June 2024:
Profit and total comprehensive income
-
345,234
345,234
Dividends
10
-
(350,000)
(350,000)
Balance at 30 June 2024
20,200
4,615,850
4,636,050
HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information

Hemisphere Freight Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hemisphere House, 53-65 White House Road, Ipswich, Suffolk, UK, IP1 5PB.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Perrin Group Holdings Limited. These consolidated financial statements are available online from Companies House.

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 a period of at least twelve months from the date these financial statements are signed. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

The company has three distinct revenue streams of import, export and domestic sales as described below:

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.

HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -

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:

Improvements to leasehold property
10 to 20 years
Plant & machinery
20% to 50% Straight Line
Fixtures, fittings & equipment
15% to 30% Straight Line
Motor vehicles
16.67% to 25% Straight Line

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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

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

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.

HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

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

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.

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.

1.9
Equity instruments

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

1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax 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.

HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.11
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.

1.12
Retirement benefits

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

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.

HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Job accruals

This relates to jobs which are yet to be invoiced. These costs are estimated by management based on the assumed total cost. Any job accrued for which does not clear within twelve months is written off.

3
Turnover

An analysis of the company's turnover is as follows:

2024
2023
as restated
£
£
Turnover analysed by class of business
Rendering of services
42,132,317
49,627,237
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,612,593
8,057,005
Overseas
31,519,724
41,570,232
42,132,317
49,627,237
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
18,750
16,000
For other services
Other assurance services
3,100
2,500
Taxation compliance services
3,000
1,150
6,100
3,650
HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(5,608)
81,382
Depreciation of owned tangible fixed assets
310,134
241,373
Depreciation of tangible fixed assets held under finance leases
383,042
247,695
Profit on disposal of tangible fixed assets
(50,000)
(3,907)
Operating lease charges
1,401,692
848,564
6
Employees

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

2024
2023
Number
Number
Number of distribution staff
53
55
Number of administrative staff
101
73
Number of management staff
13
20
Total
167
148

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
6,512,935
5,627,526
Social security costs
616,845
533,936
Pension costs
324,160
579,888
7,453,940
6,741,350
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
469,000
423,400
Company pension contributions to defined contribution schemes
159,423
350,077
628,423
773,477
HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
127,500
105,000
Company pension contributions to defined contribution schemes
18,517
88,847
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
87,780
65,387
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
72,318
Adjustments in respect of prior periods
-
0
20,688
Total current tax
-
0
93,006
Deferred tax
Origination and reversal of timing differences
-
0
113,697
Total tax charge
-
0
206,703
HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 18 -

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

2024
2023
£
£
Profit before taxation
345,234
1,548,672
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
86,309
294,248
Tax effect of expenses that are not deductible in determining taxable profit
(17,006)
3,894
Gains not taxable
-
0
(742)
Unutilised tax losses carried forward
59,742
-
0
Adjustments in respect of prior years
-
0
20,688
Effect of change in corporation tax rate
-
0
5,278
Group relief
37,781
-
0
Permanent capital allowances in excess of depreciation
(166,826)
(230,360)
Deferred tax adjustment
-
0
113,697
Taxation charge for the year
-
206,703
10
Dividends
2024
2023
£
£
Final paid
350,000
165,800
HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
11
Tangible fixed assets
Improvements to leasehold property
Plant & machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
1,600,504
1,712,786
936,014
1,547,137
5,796,441
Additions
502,317
134,926
1,259,102
696,224
2,592,569
Disposals
-
0
(109,000)
-
0
(252,750)
(361,750)
At 30 June 2024
2,102,821
1,738,712
2,195,116
1,990,611
8,027,260
Depreciation and impairment
At 1 July 2023
574,815
1,169,096
264,542
723,928
2,732,381
Depreciation charged in the year
102,573
185,717
75,895
328,991
693,176
Eliminated in respect of disposals
-
0
(109,000)
-
0
(197,015)
(306,015)
At 30 June 2024
677,388
1,245,813
340,437
855,904
3,119,542
Carrying amount
At 30 June 2024
1,425,433
492,899
1,854,679
1,134,707
4,907,718
At 30 June 2023
1,025,689
543,690
671,472
823,209
3,064,060

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant & machinery
253,436
318,422
Fixtures, fittings & equipment
93,104
136,814
Motor vehicles
988,007
794,204
1,334,547
1,249,440
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
7,227,184
5,581,192
Amounts owed by group undertakings
2,496,301
2,002,502
Other debtors
310,137
163,893
Prepayments and accrued income
2,147,989
706,955
12,181,611
8,454,542
HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
2,473,040
130,000
Obligations under finance leases
16
393,796
395,200
Trade creditors
7,343,882
6,261,270
Corporation tax
72,318
72,318
Other taxation and social security
183,076
147,461
Government grants
18
4,609
4,609
Other creditors
300,903
278,387
Accruals and deferred income
497,983
510,477
11,269,607
7,799,722

The company is subject to a debenture dated 19 July 2006 in favour of National Westminster plc. There exists a fixed and floating charge over the undertaking and all property and assets

 

Hire purchase and finance lease agreements are secured on the assets concerned.

14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
162,500
292,500
Obligations under finance leases
16
778,698
719,341
Government grants
18
50,697
55,307
991,895
1,067,148

The company is subject to a debenture dated 19 July 2006 in favour of National Westminster plc. There exists a fixed and floating charge over the undertaking and all property and assets

 

Hire purchase and finance lease agreements are secured on the assets concerned.

15
Loans and overdrafts
2024
2023
£
£
Bank loans
292,500
422,500
Bank overdrafts
2,343,040
-
0
2,635,540
422,500
Payable within one year
2,473,040
130,000
Payable after one year
162,500
292,500
HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
452,270
452,382
In two to five years
843,174
763,768
1,295,444
1,216,150
Less: future finance charges
(122,950)
(101,609)
1,172,494
1,114,541

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
442,949
442,949
There were no deferred tax movements in the year.

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

18
Government grants
2024
2023
£
£
Arising from government grants
55,306
59,916
Included in the financial statements as follows:
Current liabilities
4,609
4,609
Non-current liabilities
50,697
55,307
55,306
59,916
HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
18
Government grants
(Continued)
- 22 -

The balance within deferred income relates to a grant received from Suffolk County Council in 2016 as a contribution towards capital expenditure in setting up a new site. The project was supported by New Anglia Local Enterprise Partnership through the Growing Business Fund.

 

The conditions of the grant stipulate that the jobs created must last at least one year and that any disposal of assets funded will require a repayment of part of the grant dependant on the date of disposal and proceeds received.

 

No issues have arisen to require any repayment to be made of this grant and the grant is being amortised over the life of the project.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
324,160
579,888

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.

 

The number of directors to whom retirement benefits are accruing is 5 and the aggregate value of company contributions was £79,424 of which £18,517 related to the highest paid director.

HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
'A' Ordinary shares of £1 each
20,100
20,100
20,200
20,200
'B' Ordinary shares of £1 each
100
100
-
-

The A Ordinary shares prescribe the right to attend and vote at any general meetings, receive dividends and participate in distribution on winding up of the company.

 

The B Ordinary shares do not entitle the holders to receive notice of or vote at any general meeting, on winding up of the company rights to repayment of capital is equal.

21
Financial commitments, guarantees and contingent liabilities

The company is subject to an unlimited intercompany guarantee and debenture dated 19 July 2006 in favour of National Westminster plc between the company, Hawk Express Limited and Perrin Group Holdings Limited.

 

At the balance sheet date the total liabilities secured amounted to £3,953,333 (2023: £2,849,617).

 

These amounts are not represented within the financial statements of the company but are included within the consolidated financial statements of the group.

22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
517,209
557,688
Between two and five years
575,046
1,080,655
1,092,255
1,638,343
23
Events after the reporting date

On 2nd August 2024, the company entered into an operating lease for rental of a warehouse in Felixstowe. The lease has a term of 15 years at an annual rental of £2,455,192. payments are not due to commence for 12 months from the date of the agreement.

24
Related party transactions

The company is subject to an unlimited intercompany guarantee and debenture dated 19 July 2006 in favour of National Westminster plc between the company, Hawk Express Limited and Perrin Group Holdings Limited.

HEMISPHERE FREIGHT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
25
Ultimate controlling party

The parent company of Hemisphere Freight Services Limited is Perrin Group Holdings Limited.

The ultimate controlling party is Mr A Perrin who holds the majority of shares in the parent company.

The results of Hemisphere Freight Services Limited are consolidated within the group accounts of Perrin Group Holdings Limited. The registered office of Perrin Group Holdings Limited is Hemisphere House, 53-65 White House Road, Ipswich, Suffolk, England, IP1 5PB and the financial statements of the group are available through Companies House for public inspection.

26
Prior period adjustment

It was identified that internally generated sales & Cost of sales had been included in the financial statements. An adjustment has been made in 2024 & 2023 to correct the sales & cost of sales balances, this has no effect on gross profit or any other figures in the financial statements.

Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2023
£
Total adjustments
-
Profit as previously reported
1,341,969
Profit as adjusted
1,341,969
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