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REGISTERED NUMBER: 04303303 (England and Wales)










TELS GLOBAL UK LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST OCTOBER 2024






TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024










Page

Company Information 1

Strategic Report 2 to 5

Report of the Director 6

Report of the Independent Auditors 7 to 10

Income Statement 11

Other Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Cash Flow Statement 15

Notes to the Cash Flow Statement 16

Notes to the Financial Statements 17 to 23


TELS GLOBAL UK LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST OCTOBER 2024







DIRECTOR: M Ivanova





REGISTERED OFFICE: Prospect House Suite 22
2 Athenaeum Road
Whetstone
London
N20 9AE





REGISTERED NUMBER: 04303303 (England and Wales)





AUDITORS: Thomas Coombs Limited
Statutory Auditor
Chartered Accountants
3365 The Pentagon
Century Way
Thorpe Park
Leeds
West Yorkshire
LS15 8ZB

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST OCTOBER 2024


The director presents her strategic report for the year ended 31st October 2024.

REVIEW OF BUSINESS
The company director reports turnover of £74,623,203 for the year representing a fall in revenues of 15.1% from 2023. The director is satisfied with the company's performance for the financial period taking into consideration the major global uncertainties with the business. The market for freight forward services remains highly competitive. To maintain its position, the company ensures its pricing remain competitive.

During 2024, the company maintained the gross profit margin at 2.1% despite difficult trading conditions worldwide due to macroeconomic factors and political situations in several markets.

The fall in sales comes posed by the UK leaving the European Union, trade barriers with EU, the Russia-Ukraine conflict, and the threat of tariffs. The sanctions imposed by the EU and Russia's government legislation acts have resulted in a drop in trade volume.

It is important to note that some key accounts - resident of Russia closed the contract with the company due to new legislation act imposed by Tax Inspection of Russia based on Decree of the President of the Russian Federation No. 585 as of 8 August 2023 on the suspension by the Russian Federation of certain provisions of international treaties of the Russian Federation on taxation.

IMPACT FROM THE RISKS RELATED TO THE COVID-19 PANDEMIC, RUSSIA-UKRAINE CONFLICT
The company initially faced challenges due to the pandemic, which affected its operations, however, the demand for transportation quickly rebounded as products requiring transport were replaced and new products emerged. As the pandemic situation improved, the company's overall turnover recovered swiftly.

The disruption caused by the Russia-Ukraine conflict, along with the ongoing COVID-19 restrictions and supply chain uncertainties, extended into 2024. This highlighted the importance of transportation services and the need to develop new routes for various types of freight.

Despite these challenges, the company's freight services have continued to recover. Throughout the year, the company attracted new customers and maintained strong relationships with existing ones.

The company's top priority has been to ensure the health and safety of its employees while ensuring business continuity. The company has implemented a strategy of investing in its team, systems, and clients to address new requirements and manage the uncertain and changing environment.

Despite the difficult geopolitical situation, the company plans to increase its volume of services, turnover, and establish strong cooperation with customers by securing new contracts.

The 2025 financial year will inevitably be impacted by the ongoing Russia-Ukraine conflict, the UK's departure from the EU, and other environmental challenges. The outlook for 2025 is uncertain, however, the company believes that its continued investment, operational strategy, and strong financial position will lead to satisfactory results in the future. The director is proud of the dedicated, professional, and talented employees who are the company's greatest asset.

The company will continue to concentrate its efforts on achieving maximum growth in its operation. The company aims to improve efficiency in all areas of its operations through more disciplined cost control.


TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST OCTOBER 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The main risk facing the company is maintaining its turnover and gross profit margin. To mitigate this risk, the company focuses on building strong relationships with haulage carriers and providing excellent customer service to expand its customer base. The ongoing conflict in Ukraine also poses uncertainty as the company operates in and around that region, however, the impact has been minimal so far as alternative routes that avoid the area have been readily available.

In addition to these risks, the company is exposed to foreign exchange risk and customer credit risk. The company has established a risk and financial management framework to mitigate its exposure to these risks and protect its performance. Financial risk management objectives and policies are managed at a group level to minimize the potential negative impacts of market fluctuations and support value creation.

To minimize exchange rate risk, the company strives to match receipts and payments in pounds and euros as closely as possible. It also uses foreign exchange contracts to hedge these exposures. Credit risk is primarily managed through strict credit checks on new customers and regular monitoring of existing customers.

Liquidity risk is managed by monitoring the balance sheet position on a daily basis and actively managing available funds. The company ensures that it has sufficient cash reserves in the short and long term to meet financial obligations and support its operations and growth ambitions.

The company remains vigilant for new opportunities and is focused on positioning itself to capitalize on them. The director is confident that the company will be able to react accordingly to ensure continued success.

The company operates in highly competitive markets with fierce competition in terms of product/service innovations and price conditions. To stay competitive, the company is committed to investing in research and development, ensuring its services are well-positioned in terms of quality, customer relationships, innovation, and performance.

FINANCIAL KEY PERFORMANCE INDICATORS
The management team of the company has identified the key performance indicators (KPIs) that are most relevant for monitoring business performance. Below are the KPIs and their respective percentages as determined by the management team:

2024 2023 Change
£'000 £'000 %
Revenue 74,623 87,847 (15.1 )
Gross profit 1,596 1,748 (8.7 )
Gross Profit % 2.1% 2.0% -
Profit/(Loss) Before Tax 309 269 14.9
OPEX Margin 2.0% 1.7% -


The gross profit percentage remained, as expected, at 2%.


TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST OCTOBER 2024

DEVELOPMENT AND PERFORMANCE
The company has grown organically over the past years in spite of sanctions and global world processes; therefore, further growth is expected during 2025, due to the ability to provide a wide suite of services as transport agents. Our expectation for 2025 is based on the termination of the contracts with clients-resident of Russia and due to our risk-management policy and due-diligence procedure.

The company remains at the forefront of obtaining time critical solutions and will continue to invest in training and IT systems to ensure it continues to do so.

Based on the market analysis and plan in 2025 the Company expects to achieve the following results:
- Sales volume increase by 3.0%
- Gross Profit - decline by 6.2% mainly due to drop of sales volume.
- Gross profit margin - 1.9% which is -0.19 pp vs 2024
- OPEX - in total -1.2% vs prior year driving by decreasing of employee at Belarus' office representative and almost the same level as % of NSR (1.9%)
- Net profit growth - at the level of £109k.

We expect to restore our position in 2026.

Section 172 of the Companies Act requires the director to act in a way that they consider would be most likely to promote the success of the company. In doing so, the director must take into consideration the interests of various stakeholders of the company (including employees, customers, suppliers, shareholders and others), the impact of the company's operations on the community and the environment and take a long-term view of the likely consequences of decisions they make as well as maintaining a reputation for high standards of business conduct.

The management of the company has a constructive dialogue with the various stakeholders of the business either directly or through the management structure. The company considers the stakeholders to be employees, customers, suppliers (including subcontractors), shareholders, and others and the director considers the long-term consequences of decisions made both on the company as well as on the community and the environment.

The company operates policies that ensure to focus on maintaining a reputation of high standards of business, whilst the regular communication with employees as well as the health and safety focus should provide long-term benefits for all stakeholders. These policies include but are not limited to carrying out monthly and quarterly review meetings, presentations of results of the company, regular meeting with key customers.

EMPLOYEES
The company places a high value on its employees and aims to keep them informed and involved in the business. Various methods of communication are used, including newsletters, bulletins, participation in meetings, and management briefings. The company regularly consults employees or their representatives, especially when making decisions that may impact their interests.

Employee development and career opportunities are key priorities for the company. It strives to bring its purpose to life by providing growth opportunities to every employee.

Throughout the year, the company conducted an employee survey called MyVoice, which provided employees with the opportunity to provide feedback. The results of the survey were shared with team leaders, who worked with their teams to address any areas of improvement. This allowed the company to monitor employee engagement and take action based on the feedback received, continuously improving engagement and participation.


TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST OCTOBER 2024

FUTURE DEVELOPMENT
The company has a strong reputation and is well-established, and despite the challenging commercial environment, the director anticipates an improved performance in the coming year.

The market, particularly in the UK, remains uncertain due to factors such as oil price volatility and the impact of the Russia-Ukraine conflict on international freight and oil markets. When the pandemic began, the company took measures to reduce costs and improve cash flow where possible. The company expects to continue improving its market position, but this is contingent on overall economic recovery and global stability.

The company faces price risk related to uncertainty in the business environment, utilities, and operating costs influenced by external factors. After careful consideration, the director has determined that the company has sufficient resources to continue operating for at least the next 12 months from the date of financial statement approval, therefore, the director believes it is appropriate to prepare the financial statements on a going concern basis.

To meet day-to-day working capital requirements, the company relies on cash reserves to fulfill obligations to suppliers and takes advantage of financial instruments provided by commercial banks to pursue new opportunities.

Based on the sanctions imposed by EU against Russia as well as against Belarus and taking into consideration that sanctions will not be relieved or ceased in the future, management has decided to decrease the activity at Belarus' representative office.

ON BEHALF OF THE BOARD:





M Ivanova - Director


30th April 2025

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31ST OCTOBER 2024


The director presents her report with the financial statements of the company for the year ended 31st October 2024.

CHANGE OF NAME
The company passed a special resolution on 12th June 2024 changing its name from T.E.L.S Transeuropean Logistic Services Limited to TELS Global UK Limited.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of Transport agents.

DIVIDENDS
No dividends will be distributed for the year ended 31st October 2024.

DIRECTOR
M Ivanova held office during the whole of the period from 1st November 2023 to the date of this report.

FINANCIAL INSTRUMENTS
The financial statements comprise of borrowings such as secured loans, advance receipts in respect of the ordinary activities of the group, cash and liquid resources, finance leases and various other items such as trade debtors and trade creditors that also arise directly from its operations.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is 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 she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Thomas Coombs Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M Ivanova - Director


30th April 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TELS GLOBAL UK LIMITED


Opinion
We have audited the financial statements of TELS Global UK Limited (the 'company') for the year ended 31st October 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31st October 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TELS GLOBAL UK LIMITED


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 Director.

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

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page six, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TELS GLOBAL UK 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.

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:

Based on our understanding of the entity and industries in which it operates, we identified the principal risks of non-compliance with laws and regulations related to ISO certifications and data protection. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, tax legislation and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls, and ensuring these controls operated as intended. We determined the principal risks were related to posting journal entries to manipulate profits, and management bias in accounting estimates.

To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures to identify any unusual or unexpected relationships.
- Identified and tested journal entries and identified any significant transactions that were unusual or outside the normal course of business.
- Investigated the rationale behind significant or unusual transactions.
- Challenged assumptions and judgements made by management in determining significant accounting estimates.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to:
- Agreeing financial statements disclosures to underlying supporting documentation.
- Discussions with management of known or suspected instances of non-compliance with laws and regulations.
- Reading the minutes of meetings of those charged with governance.
- Reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TELS GLOBAL UK LIMITED


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.




Thomas Bond (Senior Statutory Auditor)
for and on behalf of Thomas Coombs Limited
Statutory Auditor
Chartered Accountants
3365 The Pentagon
Century Way
Thorpe Park
Leeds
West Yorkshire
LS15 8ZB

30th April 2025

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

INCOME STATEMENT
FOR THE YEAR ENDED 31ST OCTOBER 2024

2024 2023
Notes £    £   

TURNOVER 3 74,623,203 87,846,674

Cost of sales 73,027,701 86,098,936
GROSS PROFIT 1,595,502 1,747,738

Administrative expenses 1,479,121 1,490,839
OPERATING PROFIT 5 116,381 256,899

Interest receivable and similar income 192,563 11,931
PROFIT BEFORE TAXATION 308,944 268,830

Tax on profit 6 97,710 70,859
PROFIT FOR THE FINANCIAL YEAR 211,234 197,971

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST OCTOBER 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 211,234 197,971


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 211,234 197,971

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

BALANCE SHEET
31ST OCTOBER 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 7 14,152 190,122
Investments 8 551,575 65
565,727 190,187

CURRENT ASSETS
Debtors 9 3,401,749 4,224,261
Cash at bank and in hand 10,740,652 19,861,097
14,142,401 24,085,358
CREDITORS
Amounts falling due within one year 10 11,453,828 21,213,777
NET CURRENT ASSETS 2,688,573 2,871,581
TOTAL ASSETS LESS CURRENT LIABILITIES 3,254,300 3,061,768

PROVISIONS FOR LIABILITIES 12 - 18,702
NET ASSETS 3,254,300 3,043,066

CAPITAL AND RESERVES
Called up share capital 13 3 3
Retained earnings 14 3,254,297 3,043,063
SHAREHOLDERS' FUNDS 3,254,300 3,043,066

The financial statements were approved by the director and authorised for issue on 30th April 2025 and were signed by:





M Ivanova - Director


TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST OCTOBER 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1st November 2022 3 2,845,092 2,845,095

Changes in equity
Total comprehensive income - 197,971 197,971
Balance at 31st October 2023 3 3,043,063 3,043,066

Changes in equity
Total comprehensive income - 211,234 211,234
Balance at 31st October 2024 3 3,254,297 3,254,300

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST OCTOBER 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (8,652,651 ) 9,912,645
Tax paid (108,021 ) (66,693 )
Net cash from operating activities (8,760,672 ) 9,845,952

Cash flows from investing activities
Purchase of tangible fixed assets (826 ) (968 )
Purchase of fixed asset investments (551,510 ) (65 )
Sale of fixed asset investments - 3,755
Interest received 192,563 11,931
Net cash from investing activities (359,773 ) 14,653

(Decrease)/increase in cash and cash equivalents (9,120,445 ) 9,860,605
Cash and cash equivalents at beginning of year 2 19,861,097 10,000,492

Cash and cash equivalents at end of year 2 10,740,652 19,861,097

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST OCTOBER 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 308,944 268,830
Depreciation charges 176,796 235,451
Finance income (192,563 ) (11,931 )
293,177 492,350
Decrease in trade and other debtors 822,510 1,333,664
(Decrease)/increase in trade and other creditors (9,768,338 ) 8,086,631
Cash generated from operations (8,652,651 ) 9,912,645

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st October 2024
31/10/24 1/11/23
£    £   
Cash and cash equivalents 10,740,652 19,861,097
Year ended 31st October 2023
31/10/23 1/11/22
£    £   
Cash and cash equivalents 19,861,097 10,000,492


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/11/23 Cash flow At 31/10/24
£    £    £   
Net cash
Cash at bank and in hand 19,861,097 (9,120,445 ) 10,740,652
19,861,097 (9,120,445 ) 10,740,652
Total 19,861,097 (9,120,445 ) 10,740,652

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024


1. STATUTORY INFORMATION

TELS Global UK 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.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

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

At the time of signing these accounts, having considered the economic climate, the directors expectations and intentions for the next 12 months, and the availability of working capital, the directors are of the opinion that the company will remain viable for the foreseeable future and accordingly these financial statements have been prepared on the going concern basis.

Turnover and revenue recognition
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

The company recognises revenue when the outcome of a transaction can be estimated reliably, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Asset ClassDepreciation rate
Fixtures, fittings and equipment 25% Reducing balance basis
Motor vehicles 25% Reducing balance basis
Software/Computer equipment 20% - 33.3% Straight line basis

Investments in subsidiaries and associates
Investments in subsidiary and associate undertakings are recognised at cost.

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024


2. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into transactions in ‘basic’ financial instruments which result in the recognition of assets and liabilities; these include trade and other debtors and creditors, bank balances, loans from banks and other third parties, and loans to related parties. These are recognised in the company’s balance sheet when it becomes party to the contractual provisions of the instrument.

Basic financial assets (other than those classified as payable within one year) are initially measured at cost and are subsequently carried at cost or amortised cost using the effective interest method, less any impairment losses.

Basic financial assets classed as receivable within one year are not amortised. Basic financial liabilities (other than those classified as payable within one year) are initially measured at present
value of future cash flows and subsequently at amortised cost using the effective interest method.
Basic financial liabilities classed as payable within one year are not amortised.

Financial assets and liabilities are offset, with the net amount reported 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.

Taxation
Taxation for the year 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 or deferred taxation assets and liabilities are not discounted.

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

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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 year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Provisions
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024


2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease.

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 81,253 31,992
Europe 21,757,657 21,139,269
Worldwide 52,784,293 66,675,413
74,623,203 87,846,674

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 383,629 380,871
Social security costs 76,136 88,685
459,765 469,556

The average number of employees during the year was as follows:
2024 2023

Administration and support 38 41

2024 2023
£    £   
Director's remuneration 71,518 87,429

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024


5. OPERATING PROFIT

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

2024 2023
£    £   
Depreciation - owned assets 176,796 235,451
Auditors' remuneration 9,975 9,500
Foreign exchange differences (3,865 ) (4,032 )

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 116,410 108,021

Deferred tax (18,700 ) (37,162 )
Tax on profit 97,710 70,859

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

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

2024 2023
£    £   
Profit before tax 308,944 268,830
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
25%)

77,236

67,208

Effects of:
Depreciation in excess of capital allowances 1,772 47,486
Effects of tax rate change - (6,673 )
Deferred Tax 18,702 (37,162 )
Total tax charge 97,710 70,859

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024


7. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1st November 2023 220,396 1,320,409 1,540,805
Additions 826 - 826
At 31st October 2024 221,222 1,320,409 1,541,631
DEPRECIATION
At 1st November 2023 202,353 1,148,330 1,350,683
Charge for year 4,717 172,079 176,796
At 31st October 2024 207,070 1,320,409 1,527,479
NET BOOK VALUE
At 31st October 2024 14,152 - 14,152
At 31st October 2023 18,043 172,079 190,122

8. FIXED ASSET INVESTMENTS
Shares in Investments
group in
undertakings associates Totals
£    £    £   
COST
At 1st November 2023 - 65 65
Additions 551,510 - 551,510
At 31st October 2024 551,510 65 551,575
NET BOOK VALUE
At 31st October 2024 551,510 65 551,575
At 31st October 2023 - 65 65

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

TELS Global KZ, TOO
Registered office: Dom 404/67, Prospekt Seifullina Almaty, Almaty City, Kazakhstan
Nature of business: International transport
%
Class of shares: holding
Ordinary 99.99

Shanghai TELS Global International Logistics
Registered office: Room 2111, No 941, Jiaozhou Road, Putuo District, Changjiu Business Center, Szanghaj, China
Nature of business: International transport
%
Class of shares: holding
Ordinary 100.00

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024


8. FIXED ASSET INVESTMENTS - continued

Associated company

TELS Global CZ s.r.o.
Registered office: Pekarská 621/7, Jinonice, 155 00 Praha 5, Ceská republika
Nature of business: International transport
%
Class of shares: holding
Ordinary 18.81

9. DEBTORS
2024 2023
£    £   
Amounts falling due within one year:
Trade debtors 1,514,739 2,937,388
Amounts owed by group undertakings 184 -
Amounts owed by associates 14,724 -
Other debtors 609,015 1,279,385
Prepayments and accrued income 7,830 7,488
2,146,492 4,224,261

Amounts falling due after more than one year:
Other debtors 1,255,257 -

Aggregate amounts 3,401,749 4,224,261

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 9,657,717 20,668,275
Amounts owed to related party 1,055,675 -
Amounts owed to group undertakings 540,405 -
Corporation Tax 116,410 108,021
Social security and other taxes 9,146 13,934
Other creditors 36,920 40,761
Accruals and deferred income 37,555 382,786
11,453,828 21,213,777

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 63,118 56,789

12. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax - 18,702

TELS GLOBAL UK LIMITED (REGISTERED NUMBER: 04303303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024


12. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1st November 2023 18,702
Provided during year (18,702 )
Balance at 31st October 2024 -

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
3 Ordinary Shares of £1 each £1 3 3

14. RESERVES
Retained
earnings
£   

At 1st November 2023 3,043,063
Profit for the year 211,234
At 31st October 2024 3,254,297

15. RELATED PARTY DISCLOSURES

During the year the company reiceved an amount of £3,435,314 from an associated company, whilst also paying an amount of £86,387.

During the year the company received an amount of £12,627,313 from a related party, whilst also paying an amount of £15,657,186.