Company registration number 15133619 (England and Wales)
POLARIS LIBERTY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
POLARIS LIBERTY LIMITED
COMPANY INFORMATION
Directors
Mr W Salloum
(Appointed 12 September 2023)
Mr M Toft
(Appointed 6 November 2023)
Company number
15133619
Registered office
6th Floor
Manfield House
1 Southampton Street
London
WC2R 0LR
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
POLARIS LIBERTY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 20
POLARIS LIBERTY LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the period ended 31 December 2024.

Review of the business

The PCTC (Pure Car and Truck Carrier) segment remained robust throughout 2024, with continued high demand for PCTCs.

Earnings for 2024 were in line with expectations, and operating expenditure closely aligned with the budget, with no significant variances or unexpected costs.

Principal risks and uncertainties

Competitive risks

With a substantial global order book and increasing competition, it is anticipated that freight rates will decline and stabilise over the coming years. Additionally, there is some uncertainty regarding overall car sales volumes, particularly in Western Europe.

Legislative risks

In the UK and Europe, key legislative risks include compliance with EU competition law, employment legislation, tax regulations, and the UK Bribery Act.

New environmental regulations such as the EU Emissions Trading System (ETS), Carbon Intensity Indicator (CII), and FuelEU Maritime rules are also becoming increasingly significant. Adhering to these frameworks will likely lead to higher operating costs and require further investment in the fleet to remain compliant.

Market risk

Following several years of limited supply growth, the market is now experiencing a rise in vessel deliveries. With demand growth expected to level off, this may result in increased competition and downward pressure on charter rates.

Supply Chain Disruptions

Global supply chain disruptions remain ongoing and are expected to continue in the short to medium term. These disruptions may affect the Company’s operations and the reliability of its service offerings.

Liquidity risk

Liquidity risk refers to the possibility of the Company encountering difficulty in meeting its financial obligations as they fall due.

The Company actively manages its cash flow to optimise interest income and minimise interest expense, while ensuring sufficient liquidity is maintained to meet operational requirements and obligations.

Key performance indicators

The Company’s key financial performance indicators during the period were as follows:

 

2024

 

US$ m

 

 

Turnover

17.0

Profit for the financial period

2.9

Total shareholders’ fund

2.8

Cash and cash equivalents

0.5

POLARIS LIBERTY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 2 -

On behalf of the board

.............................................
Mr M Toft
Director
Date: .............................................
POLARIS LIBERTY LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and financial statements for the period ended 31 December 2024.

Principal activities

The Company was formed on 12 September 2023 and commenced trading on that date. The principal activity of the company was that of owning, operating and leasing a Roll on Roll off vessel.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr W Salloum
(Appointed 12 September 2023)
Mr M Toft
(Appointed 6 November 2023)
Auditor

Alliotts LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

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

POLARIS LIBERTY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr M Toft
Director
11 July 2025
POLARIS LIBERTY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POLARIS LIBERTY LIMITED
- 5 -
Opinion

We have audited the financial statements of Polaris Liberty Limited (the 'company') for the period ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

POLARIS LIBERTY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POLARIS LIBERTY LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

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:

 

POLARIS LIBERTY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POLARIS LIBERTY LIMITED (CONTINUED)
- 7 -

To address the risk of fraud through management bias and override of controls, we:

Audit response to risks identified

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Nicolaou FCCA (Senior Statutory Auditor)
For and on behalf of Alliotts LLP, Statutory Auditor
Chartered Accountants
Manfield House
1 Southampton Street
London
WC2R 0LR
14 July 2025
POLARIS LIBERTY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 8 -
Period
ended
31 December
2024
Notes
$
Turnover
17,013,001
Cost of sales
(12,226,019)
Gross profit
4,786,982
Administrative expenses
(272,810)
Operating profit
3
4,514,172
Interest receivable and similar income
6
19,074
Interest payable and similar expenses
7
(1,591,606)
Profit before taxation
2,941,640
Tax on profit
8
(182,955)
Profit for the financial period
2,758,685

The profit and loss account has been prepared on the basis that all operations are continuing operations.

POLARIS LIBERTY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
Notes
$
$
Fixed assets
Tangible assets
9
25,734,038
Current assets
Debtors
10
712,451
Cash at bank and in hand
526,325
1,238,776
Creditors: amounts falling due within one year
11
(24,214,002)
Net current liabilities
(22,975,226)
Net assets
2,758,812
Capital and reserves
Called up share capital
13
127
Profit and loss reserves
2,758,685
Total equity
2,758,812
The financial statements were approved by the board of directors and authorised for issue on 11 July 2025 and are signed on its behalf by:
Mr M Toft
Director
Company registration number 15133619 (England and Wales)
POLARIS LIBERTY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
$
$
$
Period ended 31 December 2024:
Profit and total comprehensive income
-
2,758,685
2,758,685
Issue of share capital
13
127
-
127
Balance at 31 December 2024
127
2,758,685
2,758,812
POLARIS LIBERTY LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 11 -
2024
Notes
$
$
Cash flows from operating activities
Cash generated from operations
16
27,584,144
Interest paid
(1,591,606)
Net cash inflow from operating activities
25,992,538
Investing activities
Purchase of tangible fixed assets
(14,021,271)
Interest received
19,074
Net cash used in investing activities
(14,002,197)
Financing activities
Proceeds from issue of shares
127
Payment of finance leases obligations
(11,464,143)
Net cash used in financing activities
(11,464,016)
Net increase in cash and cash equivalents
526,325
Cash and cash equivalents at beginning of period
-
0
Cash and cash equivalents at end of period
526,325
POLARIS LIBERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Polaris Liberty Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, Manfield House, 1 Southampton Street, London, WC2R 0LR.

1.1
Reporting period

The Company extended its first accounting period so as to be co-terminus with its parent.

1.2
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable in respect of the time charter of its vessel. The income is accounted for on a daily basis, based on the agreed rate. Income is shown net of VAT and other sales related taxes.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Vessels
25% Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Vessels operated by the company are required to be drydocked for inspection and re-licencing at which point any required maintenance is carried out. The costs of dry docking are capitalised and depreciated over the period until the next scheduled dry docking. The Company acquired the vessel in the period and did not incur any dry dock costs in the period.

1.6
Impairment of fixed assets

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

POLARIS LIBERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -

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, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

POLARIS LIBERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

POLARIS LIBERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.9
Equity instruments

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

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Leases
As lessee

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

 

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

POLARIS LIBERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of judgements and estimation uncertainty

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

Depreciation rate

Vessels are depreciated over their useful economic lives. The directors have elected to use a reducing balance method as they believe that it will best match the pattern of consumption of economic benefits over the vessel's useful life. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

3
Operating profit
2024
Operating profit for the period is stated after charging:
$
Exchange losses
342
Depreciation of owned tangible fixed assets
9,287,233
4
Auditor's remuneration
2024
Fees payable to the company's auditor and associates:
$
For audit services
Audit of the financial statements of the company
15,018
5
Employees

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

2024
Number
Directors
2

No employees other than directors and the directors are remunerated by other companies in the group.

POLARIS LIBERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 17 -
6
Interest receivable and similar income
2024
$
Interest income
Interest on bank deposits
19,074
2024
Investment income includes the following:
$
Interest on financial assets not measured at fair value through profit or loss
19,074
7
Interest payable and similar expenses
2024
$
Other finance costs:
Interest on finance leases and hire purchase contracts
1,591,606
8
Taxation
2024
$
Current tax
UK corporation tax on profits for the current period
182,955

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2024
$
Profit before taxation
2,941,640
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
735,410
Tax effect of expenses that are not deductible in determining taxable profit
70,200
Tax at marginal rate
(120)
Foreign exchange differences
(3,225)
Tonnage tax adjustment
(619,310)
Taxation charge for the period
182,955
POLARIS LIBERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 18 -
9
Tangible fixed assets
Vessels
$
Cost
At 12 September 2023
-
0
Additions
35,021,271
At 31 December 2024
35,021,271
Depreciation and impairment
At 12 September 2023
-
0
Depreciation charged in the period
9,287,233
At 31 December 2024
9,287,233
Carrying amount
At 31 December 2024
25,734,038

The Company acquired a single vessel during the period which was the only addition in the period. The Company then entered entered into a sale and lease back arrangement. The Company has the right to acquire the vessel with a balloon payment at the end of the lease. At the date of the lease back arrangement the Company agreed to assign all rights relating to the vessel to the counterparty.

10
Debtors
2024
Amounts falling due within one year:
$
Amounts owed by group undertakings
127
Other debtors
355,480
Prepayments and accrued income
356,844
712,451
11
Creditors: amounts falling due within one year
2024
Notes
$
Obligations under finance leases
12
9,535,857
Trade creditors
90,882
Amounts owed to group undertakings
14,388,670
Corporation tax
182,955
Accruals and deferred income
15,638
24,214,002
POLARIS LIBERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 19 -
12
Finance lease obligations
2024
Future minimum lease payments due under finance leases:
$
Within one year
9,535,857

Finance lease payments represent rentals payable by the company in respect of the vessel. The current lease is due to finish in October 2025 when a balloon payment will be due. Payments due on the lease have been secured by the Company assigning the rights to use the vessel and to take over any contracts in respect of the vessel.

13
Share capital
2024
2024
Ordinary share capital
Number
$
Issued and fully paid
Ordinary Shares of £1 each
100
127

100 ordinary £1 shares were issued at the start of the period at par.

14
Related party transactions
Remuneration of key management personnel

No directors' remuneration are paid out of this company but rather remunerated by other companies in the group.

Transactions with related parties

The company has taken advantage of the exemption under FRS 102, para 33.1A, stating that details need not be given in respect of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly-owned by such a member.

2024
Amounts due to related parties
$
Other related parties
14,388,670

The following amounts were outstanding at the reporting end date:

2024
Amounts due from related parties
$
Entities with control, joint control or significant influence over the company
127
15
Ultimate controlling party

The immediate and ultimate parent company is Polaris International Holdings Limited, a company registered in England and Wales, with a registered office of 6th Floor, Manfield House, 1 Southampton Street, WC2R 0LR. Polaris International Limited prepares group accounts which include the Company.

The Ultimate controlling party is Mr W Salloum.

POLARIS LIBERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 20 -
16
Cash generated from operations
2024
$
Profit after taxation
2,758,685
Adjustments for:
Taxation charged
182,955
Finance costs
1,591,606
Investment income
(19,074)
Depreciation and impairment of tangible fixed assets
9,287,233
Movements in working capital:
Increase in debtors
(712,451)
Increase in creditors
14,495,190
Cash generated from operations
27,584,144
17
Analysis of changes in net debt
12 September 2023
Cash flows
New leases
31 December 2024
$
$
$
$
Cash at bank and in hand
-
526,325
-
526,325
Lease liabilities
-
11,464,143
(21,000,000)
(9,535,857)
-
11,990,468
(21,000,000)
(9,009,532)
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