The director presents the strategic report for the year ended 31 December 2023.
The principal activity of the company and group continued to be that of an international shipping agency. The directors are of the view that these activities will continue for the foreseeable future.
The group made an operating profit of £243k (2022: £380k profit). The directors do not recommend the payment of a dividend.
The average number of employees for the group was 195 (2022: 165). The average number of employees (including directors) employed by the company during the year was 10 (2022: 9).
The mission of the Group is to make shipping easy. The Group has the vision to become the leading provider of ship services in the world. The Group operates with a set of strong core values:
Service and commitment
Integrity & respect
Easy to do business with
Continuous innovation
Safe and responsible
The strategy is to continue to push for organic growth. The Group has a competitive advantage through its system, and a unique value proposition and aims to leverage its strong client portfolio to expand the range of services that it provides to its client base.
The group's principal financial instruments comprise bank balances, trade creditors, trade debtors and trade balances with related entities. The main purpose of the instruments is to raise funds to finance the group's operations. Due to the nature of the financial instruments used by the group there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
Trade debtors are managed in respect of credit and cash flow risk by ensuring that both credit limits, and amounts outstanding are regularly monitored.
There are various trade balances that are denominated in foreign currencies, and therefore subject to foreign exchange fluctuations. Significant currency fluctuations are a risk to the group, as adverse movements could lead to a significant cost to the group. Foreign exchange movements are monitored by management, considering the financial effect on the group.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
The financial period to 31 December 2023 was in line with 2022 with S5 maintaining its existing client base backdrop of increased competition at both regional and global level.
The conflict between Russia and Ukraine has had marginal impact on the business with less than 3% of activities conducted in the region. S5 continues to be extremely vigilant and deploys a number of tools that ensure the risk of servicing clients, ports and entities in the affected region is minimised. Extra care is taken to ensure the company does not breach any international restrictions and sanctions.
Both revenue and costs decreased compared to 2022 due to lower FX hedging and structural re-organisation.
The company continues to implement revenue maximisation and cost control programs by running back office operations in low cost regions in Asia, while maintaining client management expertise and senior executives in Europe. This structure continues to enable the company to deliver better value processing services to its existing and new clients.
The key financial highlights are as follows:
|
|
| Dec 23 | Dec 22 |
Turnover |
|
| £4,354,008 | £5,759,322 |
Operating Profit Margin before exceptional item |
|
| 5.57% | 6.59% |
Profit (loss) before Tax before exceptional item |
|
| £311,667 | £710,011 |
The company and the industry have recovered from the affects of the global pandemic.
As has been mentioned above the conflict between Russia and Ukraine has had a marginal impact on operations and activities of the company and the company continues to carefully monitor, assess and adhere to all international regulations in relation to the region.
The other principal risks and uncertainties to the business are described as regulatory compliance, technological infrastructure, cyber security, disaster recovery, exchange rate movements, Health & Safety and some economic and trading uncertainty in relation to Brexit. The risks stated below are considered by management as the most important to mitigate:
Risk
| Impact on group
| Mitigation
|
Fraud & impropriety by staff or an operating partner | Due to the high volumes of cash thru put, the risk and impact of fraud will be very high, not only on the liquidity of the company, but also the company’s ability to fulfil its global obligations.
| Management have implement strict rules and procedures across the whole company in relation to Banking and approvals. Additionally, Treasury and compliance teams have been created to ensure the policy is implement and adequate Internal control systems are in place.
|
Exposure to fluctuations in foreign exchange
| Foreign exchange market fluctuations continue due to uncertainty surrounding import and export tariffs involving the China-US trade relations and Brexit.
| Management closely monitor the movements in foreign exchange rates and will take corrective actions where necessary.
|
Advancements in technology
| Technological advancement The threat of technological change rendering aspects of our current service offering obsolete.
| Management continue to review and invest in current and new infrastructure to ensure that the group is best placed to provide shipping information to their customers. |
Cyber security/crime | There has been a general increase in cybercrime that has prompted various governments to issue new regulations to tackle data breaches.
Breach of data security could impact on the reputation of the group resulting in user numbers to decrease. | Security measures such as end to end use encryption and data storage are reviewed on a regular basis by IT technicians to ensure data breaches are prevented.
Maintain current arching solutions so lost data can be recovered quickly and efficiently.
Key information retained in multiple systems and locations. |
Risk
| Impact on group
| Mitigation
|
Legal and regulatory impact | Legal or regulatory breach by the Group resulting in fines and sanctions and ultimately loss of ability to operate.
Examples could include non-compliance with the Bribery Act.
| Maintain current training programme to ensure all staff are fully aware of business obligations.
Continuing management and reporting.
Maintain adequate levels of insurance cover. |
In view of these risks and uncertainties, the directors are aware that the development of the company may be affected by factors outside their control.
Staff welfare and their safety as well the company’s’ commitment to maintaining its environmental responsibilities remain at the forefront of all our planning and strategic development.
On behalf of the board
The director presents his annual report and financial statements for the year ended 31 December 2023.
The results for the year are set out on page 9.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
On the 23rd April 2024, Norton Lilly NCA Inc (NLI) became the majority shareholder by acquiring 70% of the shareholding in the immediate parent company First Dutch Maritime B.V. from Maritime Services 1 B.V.
The directors consider that the group is well placed to develop its activities in the foreseeable future. The group will continue to develop the S5 brand and provide international shipping agency services.
The auditor, Gravita II LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
We have audited the financial statements of S5 Agency World Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Material uncertainty related to going concern - overdrawn client money bank account
We draw attention to note 1.4 of the financial statements concerning the group's and parent company's ability to continue as a going concern. We have considered the adequacy of the disclosures made in notes 1.4 and 16 to the financial statements concerning the fact that as at the balance sheet date £1.7m has been funded by overdrawn client accounts, and that, if the various loans to related entities that are being funded by these overdrawn client accounts and/or the group and parent company fails to cover the balance in full, then the bank has a right to offset this balance against monies in other designated client accounts. We have not been able to ascertain whether any breach of contract has occurred.
These conditions, along with other matters explained in note 1.4 of the financial statements, indicate the existence of a material uncertainty which may cause significant doubt over the group's and parent company's ability to continue as a going concern. Our opinion is not modified in this respect.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the group and parent company through discussions with directors and other management, and from our commercial knowledge and experience of the international shipping agency sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group and parent company, including the Companies Act 2006;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence;
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the group and parent company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
understanding the business model as part of the control and business environment;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the group and parent company's remuneration policy.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
enquiring with the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The income statement has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £44,174 (2022 - £582,043 profit).
S5 Agency World Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Suite 17, Beaufort Court, Admirals Way, London, E14 9XL.
The group consists of S5 Agency World Ltd and all of its subsidiaries, as set out in note 14.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. The functional currency of the subsidiary is rupee and the reporting currency for the Group is sterling. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company S5 Agency World Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
S5 Agency World (India) Private Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of S5 Agency World (India) Private Limited. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
As explained in note 16, the group has overdrawn client accounts totalling £1,678,027 as at the balance sheet date.
As at the balance sheet date the group has assets of £1,630,127 (2022: £1,471,376) and made a profit of £158,751 (2022: profit of £473,790) during the year ended 31 December 2023. The Directors have reviewed the 16 months management accounts for the period ended 30 April 2025 which shows a loss of £1.812m. The Directors have concluded that the group are forecasted to make a profit for the 18 months period to 30 June 2026.
The financial statements are prepared on a going concern basis on the assumption that the Group (‘S5AW’) will continue in operational existence for the foreseeable future. The validity of this depends upon the future funding and business plan set out in the signed shareholders agreement dated 23 April 2024.
On 23 April 2024, there was a restructuring of the group which resulted in having a new majority shareholder, Norton Lilly NCA Inc (‘NLI’) injecting additional cash funds of $16.1m and capitalising existing loans of approx. $9m in the Wambersie B.V Group.
Of the $16.1m cash injection in the group, the directors have confirmed that $4.1m will be injected into the S5AW Group over a period of 12 months and they will continue to review the working capital requirements of the business. The shareholders agreement sets out terms for further funding of $8m cash should there be a need for additional support within the wider group.
Norton Lilly NCA Inc (70%) and Maritime Services 1 B.V. (30%) are the shareholders of the S5 Agency World Limited (‘S5AW’) Group and Wambersie B.V. Group.
The majority shareholder together with its wider group of companies have presence in multiple regions and it is engaged in ship agency services, logistics, brokerage, vessel planning and other marine activities which enhance and will benefit the growth S5AW Group business.
Having considered the above, the Directors are of the opinion that the Group (and parent) are reliant upon the continuing support of its shareholders to enable it to continue trading and to discharge its liabilities as they arise.
Taking all this into account, the Directors consider the going concern basis to be appropriate and have prepared the financial statements on this basis.
The financial statements do not include any adjustments to the value of the balance sheet assets or provision for further liabilities which would result should the going concern concept not be valid.
Turnover represents fees receivable for services provided as a shipping agent net of VAT.
Revenue from contracts for the provision of shipping agency services is recognised at the time of departure of the ship from the port.
As part of shipping agency services, the company is requested by its clients to provide them with foreign exchange (FX) conversion rates to settle the relevant shipping costs. As the company itself is not an FX provider, to obtain foreign currencies it enters into transactions with various FX providers. Under the company's agreements with these providers, the company has agreed preferential competitive rates which are beneficial to its clients and the business.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the profit or loss.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension 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. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
The assets and liabilities of overseas subsidiary undertakings are translated at the closing exchange rate while the profit and loss accounts are translated using the average rate for the period. Gains and losses arising on these translations are taken to other comprehensive income, net of exchange differences on related foreign currency borrowings.
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Note 1.5 sets out the Company's criteria for revenue recognition. In making its judgement regarding the timing of recognition, management considers the detailed criteria for the recognition of revenue from the sale of services set out in FRS 102 section 23, and in particular, whether the Company has transferred to the buyer the significant risks and rewards of ownership of the goods. When this criteria is not met, revenue arising from the rendering of services is recognised only to the extent of the expenses recognised that are recoverable.
The group 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.
Provisions are recognised when the group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. This obligation may be legal or constructive deriving from regulations, contracts, normal practices or public commitments that lead third parties to reasonably expect that the group will assume certain responsibilities. The amount of the provision is determined based on the best estimate of the outflow of resources required to settle the obligation, taking into account all available information.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
An increase to the UK Corporation Tax rates was substantially enacted as part of the Finance Bill 2021 on 10 June 2021; the main of tax increased from 19% to 25% on 1 April 2023. The deferred tax assets reflects this rate.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
These financial statements are separate company financial statements for S5 Agency World Limited.
Details of the company's subsidiaries at 31 December 2023 are as follows:
Registered office addresses (all UK unless otherwise indicated):
Fixed asset investments comprise equity shares in the above entity that is not publicly traded.
Trade debtors disclosed above are measured at amortised cost.
Trade debtors are stated after provisions for impairment of £139,110 (2022: £133,171).
Included within other debtors are rent deposits of £126,975 (2022: £45,207), that are unsecured, interest free and are payable, with any remaining lease payments, in the event of a failure to comply with the covenants and obligations of the agreement.
Included in amounts owed to group undertakings are trade balance with entities in the group which are not owned by S5 Agency World Limited and therefore not part of the consolidated financial statements.
Company
Included within other debtors is a rent deposit of £6,250 (2022: £6,250), that is secured, interest free and is payable, with any remaining lease payments, in the event of a failure to comply with the covenants and obligations of the agreement.
Included within amounts owed by group undertakings is a trade balance of £466,816 (2022: £409,153) due from company's subsidiary, S5 Agency World India Pvt Limited. The remainder of the balance relates to other entities in the group which are not owned by S5 Agency World Limited
Included within amounts owed to group undertakings are trade balances with entities in the group which are not owned by S5 Agency World Limited and therefore not part of the consolidated financial statements.
Company
Included within amounts owed to group undertakings are trade balances with entities in the group which are not owned by S5 Agency World Limited and therefore not part of the consolidated financial statements.
Overdrawn client accounts and the company overdraft facility
The company has various contracts with customers whereby funds are received in advance and some clients pay after the service has been provided. The client monies are placed in separate designated bank accounts and there is no mixing of client funds. These funds are used to pay for expenses relating to the customers activities which is managed on behalf of the customers by the company.
As at the balance sheet date, there were overdrawn client account and company overdraft balances of £1,678,027 (2022: £1,104,543) which included the following:
Loans of £1,552,343 (2022: £823,312) made to related entities during the year.
Other overdrawn balances of £125,684 (2022: £281,231) relating to settlements for closing down various client accounts.
There are corresponding Trade Debtors balances for these two amounts noted above.
As at 30 April 2025, the overdrawn total client account balance was £2,268,786,
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in future against which the reversal of temporary differences can be deducted. Recognition therefore involves judgement regarding the future financial performance of the company.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
There is a single class of Ordinary shares. There are no restrictions on the distribution of dividends and repayment of capital.
Retained earnings represent accumulated comprehensive income for the year and prior periods less dividends paid.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
The company has established agreements with its regional shipping partners and their customers. Rebates are collected from these regional partners and subsequently paid to the customers, subject to various terms and conditions.
The company initially accrued rebates payable to customers and charged these costs to the income statement. However, these accrued rebate costs have been reversed, as they should have been offset against the rebates liability rather than being charged to the income statement.
The rebates invoices recognised in the income statement should have been offset against the rebate creditor therefore an adjustment has been made to increase turnover and reduce the rebates liability.