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REGISTERED NUMBER: 02198182 (England and Wales)









PORT OF BOSTON LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024






PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


PORT OF BOSTON LIMITED

COMPANY INFORMATION
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024







DIRECTORS: M A V Gatehouse
A Lawrence
L B Lynch
A S R Littlejohn
S W Marshall





SECRETARY: A C Brown





REGISTERED OFFICE: Dock Office
The Dock
Boston
Lincolnshire
PE21 6BN





REGISTERED NUMBER: 02198182 (England and Wales)





AUDITORS: WP Audit Services LLP
Chartered Accountant & Statutory Auditor
Chancery House
30 St Johns Road
Woking
Surrey
GU21 7SA

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

STRATEGIC REPORT
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

The directors present their strategic report for the period 1 October 2023 to 30 June 2024.

REVIEW OF BUSINESS
The company operates as a general cargo port at Boston. It runs shipping agencies and has rail transport and logistic services.

It should be noted that the current period to 30 June 2024 is a shortened period spanning 9 months compared to the prior year accounts to 30 September 2023. The below comparisons have not been pro-rated but have been analysed with the knowledge that a decrease of 25% is equivalent to a nil movement.

This period, turnover generated has decreased by 16% (2023: increased by 5%), which is a decrease of £1.1m (2023: increase of £0.33m). However, due to the shortened period, the current year decrease actually shows a growth in sales had the trend continued for a full 12 months. This improvement is mainly attributable to an increase in activity at the port following a higher level of disruption in the prior period linked to ongoing disruption from the Environment Agency. The gross profit margin has increased to 52% (2023: 45%).

Profit before tax, after adjusting for management charges has decreased marginally, to £1.71m from £1.80m. Overall the stability of profit levels is positive given the current economic climate and cost of living crisis, as well as the fact that these accounts have only recorded 9 months of profits, compared with 12 months in the prior period.

The market value of the company's property interest has increased to £17.5m (2023: £15m), of which £1.84m is recorded in the parent company accounts, and £15.63m is recorded in these accounts.

The defined benefit pension scheme remains in a surplus position, and as such no liability has been recorded.

The Board consider both net profit before tax and EBITDA (excluding management charges) to be key KPI's. Net profit before tax and management charges has been discussed above, and EBITDA (excluding management charges) has decreased to £2.15m (2023: £2.25m). This is a decrease of 4%, but given the shortened period, this is a strong result for the port given the current economic environment and ongoing disruption arising from the works being undertaken by the Environment Agency.

Strategy
The Board will continue to keep costs under control and develop existing income streams.

New opportunities will be sought where these will make a return for the company.

PRINCIPAL RISKS AND UNCERTAINTIES
The Board consider the potential reduction in global economic activity levels to be a key risk, along with the ongoing crisis in Ukraine, due to a potential reduction in volumes handled by UK ports. In order to mitigate this risk the Board continue to diversify cargoes, strictly manage its cost base, including capital expenditure, and monitor cashflow.

The impact of the defined benefit pension scheme obligations is somewhat uncertain, the ability to control this scheme is limited and subject to fluctuating market conditions. As a result there is a risk to future cash flow. However at present the scheme is in a surplus position.

Health and safety risks are inherent in the company's business, hence the Board ensure strict policies and procedures are enforced amongst the team.

ON BEHALF OF THE BOARD:





M A V Gatehouse - Director


21 March 2025

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

The directors present their report with the financial statements of the company for the period 1 October 2023 to 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of the operation of a commercial dock.

DIVIDENDS
The total distribution of dividends from Port of Boston Limited for the period ending 30 June 2024 was £600k (2023: Nil)

DIRECTORS
The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.

M A V Gatehouse
A Lawrence
L B Lynch

Other changes in directors holding office are as follows:

A S R Littlejohn and S W Marshall were appointed as directors after 30 June 2024 but prior to the date of this report.

FINANCIAL INSTRUMENTS
The company's principal financial instruments comprise bank balances and trade creditors. The main purpose of each of these instruments is to raise funds for the company's ongoing operations.

Due to the nature of the financial instruments used by the company there is not considered to be significant exposure to price risk, foreign exchange risk or interest rate risk.

The company's approach to managing other risks applicable to the financial instruments concerned is explained below:

Bank Balances
The liquidity risk is managed by maintaining a balance between the various elements of working capital. At present, neither interest rate risk, nor foreign exchange risk are considered significant in relation to these instruments.

Trade Creditors
Liquidity risk is managed by ensuring there are sufficient funds available from working capital to meet amounts as they fall due.

DISCLOSURE IN THE STRATEGIC REPORT
Certain disclosures related to performance, KPIs and business risks and uncertainties have been disclosed in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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;
-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.

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





M A V Gatehouse - Director


21 March 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PORT OF BOSTON LIMITED

Opinion
We have audited the financial statements of Port of Boston Limited (the 'company') for the period ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the period 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.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 Report of the Directors.

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:
- 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PORT OF BOSTON LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PORT OF BOSTON LIMITED


Auditors' 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 a Report of the Auditors 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Objectives
The objectives of our audit in respect of 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 to those assessed risks; and
- to respond appropriately to instances of fraud or suspected fraud identified during the audit.

However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Audit Approach
Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the Company and considered that the most significant are the Health & Safety at Work (and associated HSE regulations), Companies Act 2006, FRS 102, and UK taxation legislation
- We obtained an understanding of how the Company complies with these requirements by discussions with management and those charged with governance, as well a review of relevant correspondence and certifications.
- We assessed the risk of material misstatement of the financial statements and how it might occur (including the risk of material misstatement due to fraud), by holding discussions with management and those charged with governance. We used our knowledge of the Company and the industry in which it operates to determine if management's explanations were consistent with our own conclusions.
- Based on our understanding developed from the above, we designed specific appropriate audit procedures to identify instances of non-compliance with the key laws and regulations which may result in potential fraud. This included making enquiries of management and those charged with governance, investigating unusual or unexpected relationships or movements in figures disclosed in the accounts and remaining alert for any transactions that appeared to be outside the normal course of business. Furthermore, as required by auditing standards, and taking into account our overall knowledge of the control environment, we have performed procedures to address the risks of management override of controls and the risk of fraudulent revenue recognition. Procedures such as a review of journal entries and assessing estimates for management bias have enabled us to conclude in this area.

No instances of fraud, non-compliance or suspected non-compliance with laws and regulations were identified from the above procedures.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control environment relevant to the audit, in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the Company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PORT OF BOSTON LIMITED


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Context of the ability of the audit to detect fraud or breaches of law or regulation
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 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.

In addition, as with any audit, there remains a risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. 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 noncompliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Stephanie Williams (Senior Statutory Auditor)
for and on behalf of WP Audit Services LLP
Chartered Accountant & Statutory Auditor
Chancery House
30 St Johns Road
Woking
Surrey
GU21 7SA

26 March 2025

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

INCOME STATEMENT
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

Period
1.10.23
to Year Ended
30.6.24 30.9.23
Notes £'000 £'000

REVENUE 4 5,856 6,955

Cost of sales (2,794 ) (3,824 )
GROSS PROFIT 3,062 3,131

Administrative expenses (1,853 ) (2,140 )
1,209 991

Other operating income - 277
OPERATING PROFIT 6 1,209 1,268

Interest receivable and similar income 16 6
Other finance income 18 66 72
1,291 1,346

Interest payable and similar expenses 8 (61 ) (64 )
PROFIT BEFORE TAXATION 1,230 1,282

Tax on profit 9 (275 ) (153 )
PROFIT FOR THE FINANCIAL PERIOD 955 1,129

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

Period
1.10.23
to Year Ended
30.6.24 30.9.23
Notes £'000 £'000

PROFIT FOR THE PERIOD 955 1,129


OTHER COMPREHENSIVE INCOME
Actuarial gain / (loss) 313 127
Revaluation surplus / (deficit) on
revaluation of fixed assets 2,455 164
Deferred tax on pension movement
Effect of asset ceiling on pension (379 ) (265 )
Income tax relating to components of other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME FOR THE
PERIOD, NET OF INCOME TAX

2,389

26
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD

3,344

1,155

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

BALANCE SHEET
30 JUNE 2024

2024 2023
Notes £'000 £'000 £'000 £'000
FIXED ASSETS
Property, plant and equipment 10 21,461 18,742

CURRENT ASSETS
Debtors 11 11,419 11,367
Cash at bank 35 124
11,454 11,491
CREDITORS
Amounts falling due within one year 12 2,280 2,684
NET CURRENT ASSETS 9,174 8,807
TOTAL ASSETS LESS CURRENT LIABILITIES 30,635 27,549

CREDITORS
Amounts falling due after more than one year 13 (2,959 ) (3,311 )

PROVISIONS FOR LIABILITIES 15 (739 ) (645 )
NET ASSETS 26,937 23,593

CAPITAL AND RESERVES
Called up share capital 16 - -
Revaluation reserve 17 5,471 3,016
Retained earnings 17 21,466 20,577
SHAREHOLDERS' FUNDS 26,937 23,593

The financial statements were approved by the Board of Directors and authorised for issue on 21 March 2025 and were signed on its behalf by:





M A V Gatehouse - Director


PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£'000 £'000 £'000 £'000
Balance at 1 October 2022 - 19,586 2,852 22,438

Changes in equity
Total comprehensive income - 991 164 1,155
Balance at 30 September 2023 - 20,577 3,016 23,593

Changes in equity
Total comprehensive income - 889 2,455 3,344
Balance at 30 June 2024 - 21,466 5,471 26,937

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

1. STATUTORY INFORMATION

Port of Boston Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The figures in the financial statements are rounded to pounds thousands.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated

As a result of the restructure which occurred in June 2024, the company's accounting period has been shortened to 9 months, in line with the group's new accounting period end.

These statements are prepared under the historical cost convention, as modified by the recognition of certain assets measured at fair value and liabilities at discounted net present value.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in a separate accounting policy within these financial statements.

The directors believe that the company is experiencing good levels of sales growth and profitability, and that it is well placed to manage its business risks successfully. Accordingly they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned companies within the group.

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

3. ACCOUNTING POLICIES - continued

Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical judgements in applying the Group’s accounting policies

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

(i) Useful economic lives of tangible assets:
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) Impairment of debtors:
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors, and historical experience.

(iii) Defined benefit pension scheme:
The company has an obligation to pay pension benefits to certain former employees. The cost of these benefits and the present value of the obligation depends on a number of factors, including life expectancy, asset valuations and the discount rate on corporate bonds. Management estimates these factors, with the assistance of a qualified actuary, in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

(iv) Pension liability and discount factors
The company has an obligation to pay pension benefits to certain former employees via a multi employer scheme. This liability has been treated as a defined contribution liability as the contributions required are set.

These long term liabilities are fair valued to net present value, for which a discount factor is calculated. The discount factor is based on current and predicted inflation and interest rates applicable to the company. The factor is reviewed annually based on inflation and interest rates and adjusted where there are material changes. Subsequent changes to the applicable discount factor are applied prospectively and recognised directly in profit and loss, as a change to the estimate.

(v) Revaluation of property
In accordance with FRS 102, freehold properties are included at their fair value in the financial statements. This valuation is prepared by an external expert on an annual basis, based on value in use, and movements in the value are recognised in the revaluation reserve. Where a property is valued at lower than the original cost this is considered to be a permanent diminution and is charged to the profit and loss account.

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

3. ACCOUNTING POLICIES - continued

Turnover
Turnover represents amounts receivable in respect of port services provided to third parties and income from freehold properties, excluding value added tax where applicable. Turnover is recognised in line with the provision of the service.

Port of Boston Limited has also received an amount in relation to the maintenance of buoys. The company is expected to maintain the buoys for the foreseeable future, therefore turnover is recognised over a period of 50 - 120 years, based on the terms of the agreements in place. As the future expenditure over this period is uncertain, the income is being released to the profit and loss account evenly over the life of the agreement.

Post of Boston limited has also received other income in relation to services to be provided over several years. Each of these amounts is being recognised in profit or loss over the period of the services to be provided. As the future expenditure over this period is uncertain, the income is being released to the profit and loss account evenly over the life of the agreement.

The company recognises revenue when the following conditions are satisfied:

- the company has transferred to the buyer the significant risks and and rewards of ownership of the goods;
- the company retains neither continuing managerial involvement to the degree associated with ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probably that the economic benefits associated with the transaction can be measured reliably.

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery - Straight line over 2 - 25 years
Fixtures and fittings - Straight line over 3 - 5 years
Motor vehicles - Straight line over 4 - 5 years

In accordance with FRS 102, freehold properties are included in the financial statements at their fair values, provided by an external expert on an annual basis. When the value of a property is revalued above cost the aggregate surplus or deficit on revaluation is transferred to the revaluation reserve. When the value of a property is revalued below cost, and this is considered to be a permanent diminution in value, the difference is charged to the profit and loss account.

All other tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

No depreciation is provided on the company's land and buildings interest because they are currently held at value.

Impairment of assets
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Debtors
Short term debtors are measured at transaction price, less any impairment.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Operating leases
At inception the Company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is a finance lease or an operating lease based on the substances of the arrangement.

Leases that do no transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated. Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Deferred tax assets, including unrelieved tax losses, are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits.

Current or deferred taxation assets and liabilities are not discounted.

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

3. ACCOUNTING POLICIES - continued

Foreign currencies
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of transactions.

At each period-end foreign currency monetary items are translated using the closing rate. Non-monetary items are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation of
period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

Foreign exchange gains and losses that relate to derivatives, borrowings, cash and cash equivalents are presented in the profit and loss account within other income and finance costs. All other foreign exchange gains and losses are presented in the profit and loss account within administrative expenses.

Pension costs and other post-retirement benefits
(i) Defined benefit pension plan
The company operates a defined benefit pension scheme. This scheme is however closed to new members, and standard ongoing contributions to the scheme have been frozen. The scheme is dealt with in accordance with FRS 102 Post-Employment Benefits.

The cost of providing benefits is determined using the projected unit method, with an FRS 102: Employee Benefits report being carried out at each balance sheet date.

Current service cost is recognised in operating costs in the period in which the defined benefit obligation increases as a result of employee services.

Actuarial gains and losses are recognised in full in the period in which they occur in the statement of recognised income and expense.

The retirement benefit obligations recognised in the balance sheet represent the present value of the defined benefit obligations, as reduced by the fair value of scheme assets and any unrecognised past service cost.

The expected return on scheme assets and the unwinding of the discount on defined benefit obligations are recognised within interest income and expense respectively.

(ii) Multi-employer defined benefit pension plan
The company participates in a multi-employer defined benefit pension scheme. Where the company is unable to determine its share of the assets and liabilities on a consistent and reliable basis it accounts for the scheme as a defined contribution scheme.

(iii) Defined contribution pension plan
The company also operates a defined contribution pension scheme for employees. A defined contribution plan is a plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. Pension costs are charged to the profit and loss account as they fall due. The amount charged to the profit and loss account in respect of pension costs is the contributions payable in the year.

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

3. ACCOUNTING POLICIES - continued

Provisions for liabilities
Provisions are recognised when the Company has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

The Company recognises a provision for annual leave accrued by employees for services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months, measured at the salary cost payable for the period of absence.

Impairment of financial assets
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when 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 of the investment have been affected.

For all other financial assets, objective evidence of impairment could include:
- significant financial difficulty of the issuer or counterparty; or
- breach of contract, such as a default or delinquency in interest or principal payments; or
- it becoming probably that the borrower will enter bankruptcy or financial re-organisation; or
- the disappearance of an active market for that financial asset because of financial difficulties.

For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the company's past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 30 days, as well as observable changes in national or local economic conditions that correlate with default on receivables.

For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off re credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss.

For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreased and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date of the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

4. REVENUE

An analysis of turnover by class of business is given below:

20242023
£'000£'000
Property rental248341
Port services5,6086,614
5,8566,955

5. EMPLOYEES AND DIRECTORS
Period
1.10.23
to Year Ended
30.6.24 30.9.23
£'000 £'000
Wages and salaries 1,834 2,595
Social security costs 169 240
Other pension costs 65 93
2,068 2,928

The average number of employees during the period was as follows:
Period
1.10.23
to Year Ended
30.6.24 30.9.23

Operations 68 69
Administration 5 7
73 76

Period
1.10.23
to Year Ended
30.6.24 30.9.23
£    £   
Directors' remuneration - -

The directors are remunerated by the holding company Victoria Group Holdings Limited.

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period
1.10.23
to Year Ended
30.6.24 30.9.23
£'000 £'000
Depreciation - owned assets 487 582
Profit on disposal of fixed assets (25 ) (8 )
Auditors' remuneration for audit services 4 4
Other non- audit services 2 3

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

7. EXCEPTIONAL ITEMS
Period
1.10.23
to Year Ended
30.6.24 30.9.23
£'000 £'000
Exceptional items 26 102

There has been a change to the company's discount factor, resulting from the weighting of recent years' inflation levels. As a result, the discounted net present value of future payments due under the PNPF obligations has been reassessed, and an amount of £26k has been credited to the Profit and Loss Account.

8. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.10.23
to Year Ended
30.6.24 30.9.23
£'000 £'000
Bank interest 3 4
Other interest 58 60
61 64

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the period was as follows:
Period
1.10.23
to Year Ended
30.6.24 30.9.23
£'000 £'000
Current tax:
UK corporation tax 181 -
Over/under provision in prior
year - (1 )
Total current tax 181 (1 )

Deferred tax 94 154
Tax on profit 275 153

UK corporation tax has been charged at 25% (2023 - 22.01%).

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

9. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period
1.10.23
to Year Ended
30.6.24 30.9.23
£'000 £'000
Profit before tax 1,230 1,282
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
22.008%)

308

282

Effects of:
Expenses not deductible for tax purposes (1 ) 1
Capital allowances in excess of depreciation (108 ) (126 )
Pension scheme adjustment (17 ) (30 )
Deferred tax movement 94 154
Loss relief from group (1 ) (128 )
Total tax charge 275 153

Tax effects relating to effects of other comprehensive income

1.10.23 to 30.6.24
Gross Tax Net
£'000 £'000 £'000
Actuarial gain / (loss) 313 - 313
Revaluation surplus / (deficit) on
revaluation of fixed assets 2,455 - 2,455
Deferred tax on pension movement
Effect of asset ceiling on pension (379 ) - (379 )
2,389 - 2,389

2023
Gross Tax Net
£'000 £'000 £'000
Actuarial gain / (loss) 127 - 127
Revaluation surplus / (deficit) on
revaluation of fixed assets 164 - 164
Deferred tax on pension movement
Effect of asset ceiling on pension (265 ) - (265 )
26 - 26

The items shown within other comprehensive income above have no impact on the tax charge in the Profit and Loss Account. The deferred tax on the pension liability is included within the value of the pension scheme obligation.

It has been agreed that companies in the Victoria Group will not compensate each other for tax losses. The Victoria Group consists of Victoria Ports Limited, Victoria Group Holdings Limited, Victoria Wharves Limited, Port of Boston Limited, Sharpness Dock Limited and Seaham Harbour Dock Company.

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

10. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£'000 £'000 £'000 £'000 £'000
COST OR VALUATION
At 1 October 2023 13,174 10,080 103 130 23,487
Additions - 727 4 21 752
Disposals - (854 ) - (2 ) (856 )
Revaluations 2,455 - - - 2,455
At 30 June 2024 15,629 9,953 107 149 25,838
DEPRECIATION
At 1 October 2023 - 4,691 51 3 4,745
Charge for period - 450 16 21 487
Eliminated on disposal - (854 ) - (1 ) (855 )
At 30 June 2024 - 4,287 67 23 4,377
NET BOOK VALUE
At 30 June 2024 15,629 5,666 40 126 21,461
At 30 September 2023 13,174 5,389 52 127 18,742

Land and buildings are included at a revalued amount, in accordance with FRS 102.

On 30 June 2024, the company's freehold interest was subject to an independent professional valuation (undertaken by Stratton Creber, a firm of surveyors), which was derived on the basis of market value, in accordance with FRS 102.

Revaluations have taken place to date, totalling £5,471,000 (2023: £3,016,000). The valuation for the entire dock site is £17,467,000 with £1,838,000 shown within the parent company's Balance Sheet.

The historic cost of this interest is £11,996,000 (2023 £11,996,000), £10,158,000 reflected in these accounts and £1,838,000 in the parent company accounts for Victoria Group Holdings Ltd..



11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£'000 £'000
Trade debtors 2,611 2,589
Provision for bad debts (48 ) (59 )
Amounts owed by group undertakings 8,410 8,389
Other debtors 1 3
Tax 305 377
Prepayments and accrued income 140 68
11,419 11,367

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£'000 £'000
Trade creditors 1,030 964
Social security and other taxes 63 65
Other creditors 421 448
Accruals and deferred income 766 1,207
2,280 2,684

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£'000 £'000
Other creditors - 1 to 5 years 878 1,105
Accruals and deferred income - 1 to 5 years 231 231
Other creditors - more than 5 years - 67
Accruals and deferred income - more than 5
years

1,850

1,908
2,959 3,311

14. SECURED DEBTS

An unlimited guarantee and set off agreement is in place between group companies, which includes Sharpness Dock Limited, Port of Boston Limited, Victoria Wharves Limited and Victoria Group Holdings Limited. A separate guarantee is in place between Seaham Harbour Dock Company & the Victoria group, amounting to a maximum limitation of £900,000.

In addition, there is an unlimited mortgage deed in place over the freehold, together with all buildings and fixtures (including trade fixtures) and fixed plant and machinery.There is also a fixed charge over all present and future book and other debts and a floating charge over all moveable plant and machinery, furniture and equipment by way of assignment. There is also a floating charge over the goodwill of the business (if any) and the full benefit of all licences and all guarantees.

15. PROVISIONS FOR LIABILITIES
2024 2023
£'000 £'000
Deferred tax 739 645

Deferred
tax
£'000
Balance at 1 October 2023 645
Accelerated capital allowances 94
Balance at 30 June 2024 739

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
2 Ordinary shares £1 2 2

The Ordinary shares have attached to them voting rights, dividend rights and capital distribution (including on winding up) rights, they do not confer any right of redemption.

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

17. RESERVES
Retained Revaluation
earnings reserve Totals
£'000 £'000 £'000

At 1 October 2023 20,577 3,016 23,593
Profit for the period 955 955
Revaluation of fixed assets - 2,455 2,455
Effect of asset ceiling on pension (379 ) - (379 )
Actuarial gain/(loss) 313 - 313
At 30 June 2024 21,466 5,471 26,937

18. EMPLOYEE BENEFIT OBLIGATIONS

The company operates a defined benefit scheme in the UK. Contributions are determined by the scheme actuary on the basis of triennial valuations. The scheme was closed to new members on 8 March 2001.

As of 31 March 2005 standard ongoing contributions to the scheme were frozen. In spite of the cessation of standard contributions to the scheme, contributions have been made in accordance with the actuary's recommendations.

An actuarial triennial valuation was carried out for the defined benefit scheme as at 30 September 2023 using the projected unit method.

As at the date of the triennial valuation, and as at 30 June 2024, the value of the assets of the scheme is in excess of the value of the obligations. As a result of this surplus being irrecoverable by Port of Boston Limited, the value of scheme assets has been limited to an amount that results in obligations equating to the assets of the scheme. This has been reported as an effect of the asset ceiling.

The amounts recognised in the balance sheet are as follows:

Defined benefit
pension plans
2024 2023
£'000 £'000
Present value of funded obligations (3,578 ) (3,499 )
Fair value of plan assets 3,578 3,499
- -
Present value of unfunded obligations - -
Deficit - -
Net liability - -

The amounts recognised in profit or loss are as follows:

Defined benefit
pension plans
2024 2023
£'000 £'000
Current service cost - -
Net interest from net defined benefit
asset/liability

(66

)

(72

)
Past service cost - -
(66 ) (72 )

Actual return on plan assets 635 246

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

18. EMPLOYEE BENEFIT OBLIGATIONS - continued

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit
pension plans
2024 2023
£'000 £'000
Opening defined benefit obligation 3,499 3,648
Interest cost 138 181
Actuarial losses/(gains) 118 (134 )
Benefits paid (177 ) (196 )
3,578 3,499

Changes in the fair value of scheme assets are as follows:

Defined benefit
pension plans
2024 2023
£'000 £'000
Opening fair value of scheme assets 5,134 5,018
Contributions by employer - 66
Expected return 204 253
Actuarial gains/(losses) 431 (7 )
Benefits paid (177 ) (196 )
Effect of asset ceiling (2,014 ) (1,635 )
3,578 3,499

The amounts recognised in other comprehensive income are as follows:

Defined benefit
pension plans
2024 2023
£'000 £'000
Actuarial gains/(losses) 313 127
Effect of asset ceiling (379 ) (265 )
(66 ) (138 )

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Defined benefit
pension plans
2024 2023
Equities 25.50% 22.50%
Cash 2.70% 2.20%
Bonds 17.10% 21.80%
Alternative assets 10.50% 9.40%
Property 44.20% 44.10%
100.00% 100.00%

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

18. EMPLOYEE BENEFIT OBLIGATIONS - continued

The long-term expected rate of return on cash is determined by reference to the expected future returns on the scheme's cash deposits at the balance sheet date.

The long-term expected return on bonds is determined by reference to UK long dated government and corporate bond yields at the balance sheet date.

The long-term expected rate of return on equities is based on the rate of return on bonds with an allowance for out-performance.

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2024 2023
Discount rate 5.20% 5.40%
Increases to pensions in payment 3.70% 3.60%
Retail Price Inflation 3.20% 3.30%
Consumer Prices Index 2.80% 2.80%
Revaluation of deferred pensions 2.80% 2.80%

The assumed rates of pre-retirement and post-retirement mortality adopted in the 2024 disclosure valuations are from the S4 tables, with allowance for future improvements in line with the CMI 2023 projection basis (2023: S3PA tables and CMI 2022 projection basis).

No allowance has been made for members either to retire early or to take cash at retirement.

It has been assumed that no constructive obligation exists - an expectation from the members that a practice of granting additional benefits not promised in the benefit structure will continue.

The best estimate of the employer's contributions to be paid to the scheme during the accounting period 2024/25 is £Nil, as the requirement for contributions has now ceased.

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

18. - continued

Defined contribution scheme

Industry Wide Scheme - Pilots National Pension Fund

The Pilots National Pension Fund (PNPF) is an industry-wide defined benefits scheme. The most recent triennial actuarial valuation was carried out as at 31 December 2022, and this was approved in December 2023. This new valuation revealed a deficit falling short of that anticipated by the recovery plan put in place following the completion of the 2019 valuation. Despite the changes arising, no additional payments have been requested from the company, and the payments allocated per the initial recovery plan continue as planned. The next triennial valuation will take place in 2025.

As at 31 December 2022, the scheme had assets with a market value of £247m (2019: £322m), representing 67% (2019: 67%) of the liabilities of the scheme, which amounted to £371m (2019: £481m). The scheme actuary has estimated the deficit as at 31 December 2022 as being £124m (2019: £159m).

The pension assets have been invested in a combination of portfolios to provide similar returns to equities over the longer term but with less volatility and hedging liabilities exposure to interest rate and inflation.

The valuation assumptions adopted by the actuary were as follows:

20232022
Inflation (CPI / RPI)2.20/3.00%2.30/3.20%
Rate of increase in pensionable salaries2.20%2.30%
Rate of increase for pensions in payment2.90%3.00%
Rate of increase for deferred pensions2.20%2.30%
Discount rate4.50%4.90%

The assumptions used by the actuary are the best estimates chosen from a range of possible actuarial assumptions, which may not necessarily be borne out, based on the timescales covered.

Life expectancies for members have been updated to reflect the latest standard actuarial mortality tables. These tables show that recent improvements in life expectancies across the UK are slowing down. Extensive analysis of the mortality experience and socio-economic status of the PNPF membership has been carried out to determine an appropriate assumption for how long PNPF members are expected to live, relative to the whole of the UK. This analysis suggests that PNPF members are that a male retiring aged 60 is expected to live to the age of approximately 87, which is broadly the same as at the 2019 valuation.

The trustees assessed the company's share of the deficit as at 31 December 2010 to be 1.408%, totalling £2.796m. Under the deficit recovery plan, the company has made payments towards the funding of the deficit over a 16 year period, starting in January 2013. Subsequently, as part of the 2019 review, an additional amount of £206k (discounted) was allocated to Port of Boston Limited.

Port of Boston Limited has recognised the liability that arises from the company's obligations to make contributions towards the funding of the deficit, adjusted for the time value of money, assuming a discount factor of 3.43% (2023: 3.40%). As at 30 June 2024, £1.166m (2023: £1.447m) is outstanding.

Under the terms of the PNPF scheme rules and the trustee powers, the company is exposed to actuarial risks associated with the current and former employees of other participating entities. As such, the company's share of the liabilities of the scheme is sensitive to changes in the overall membership composition of the scheme and the experience in rates of retirement, mortality, cash commutations, augmentations and increase in salaries.

Other risks associated with the company's share of the net liabilities of the scheme include potential challenges from participating bodies to the allocation of liabilities in relation to self employed members to sponsoring employers and the impact of participating bodies leaving the scheme (e.g. under Section 75 of the Pensions Act).

PORT OF BOSTON LIMITED (REGISTERED NUMBER: 02198182)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 OCTOBER 2023 TO 30 JUNE 2024

19. ULTIMATE PARENT COMPANY

Within the period there has been a change of ultimate parent company. The ultimate controlling party has changed, as of the 26 June 2024, to Victoria Group Investments Limited, a company incorporated in England.

Port of Boston Limited is a wholly owned subsidiary of Victoria Group Holdings Limited, who in turn is a wholly owned subsidiary of Victoria Ports Limited, who in turn is a wholly owned subsidiary of Victoria Group Investments Limited. Copies of the consolidated financial statements for Victoria Ports Limited to the 30 June 2024 are available from Companies House, Crown Way, Cardiff.

The first accounting period for Victoria Group Investments Limited ends on the 30 June 2025, after which consolidated financial statements will be available for that company going forwards.

20. ULTIMATE CONTROLLING PARTY

Up until the 26 June 2024, the director, M A V Gatehouse was considered to be the ultimate controlling party by virtue of his majority shareholding in the ultimate parent company.

However, within the period there has been a restructure. The restructure occurred on 26 June 2024, at which date Victoria Group Investments Limited, a company incorporated in England, acquired 100% of the share capital of Victoria Ports Limited.

The ultimate controlling party is now The Gatehouse Family Trust, by virtue of its majority shareholding.