Cobo Tankers & Services Limited

	Page
Balance Sheet	1
Notes to the Financial Statements	2—5

1. General Information

Cobo Tankers & Services Limited is a private company, limited by shares, incorporated in England & Wales, registered number 11286028 . The registered office is Suite 24c Josephs Well, Hanover Walk, Leeds, LS3 1AB.

The presentational currency is Pounds sterling.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

These financial statements have been prepared on a going concern basis.

The company is currently appealing a decision by HMRC in relation to customs duty and import VAT. The assessed liability is significant and is subject to ongoing legal proceedings. Payment has been deferred under hardship relief while the appeal is ongoing, and interest continues to accrue.

The company does not currently have sufficient cash resources to settle the assessed liability in full. If the appeal is unsuccessful, the company would seek to agree an instalment arrangement with HMRC and would expect to continue receiving support from its parent company as part of normal trading arrangements.

The director has considered the circumstances and believe it remains appropriate to prepare the financial statements on a going concern basis. However, he notes that a material uncertainty exists which may cast significant doubt on the company’s ability to continue as a going concern, in the event the liability crystallises and suitable funding arrangements cannot be secured.

Further details are provided in note 10 – Contingent Liabilities.

The financial statements do not include any adjustments that would be required if the company were unable to continue as a going concern.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

2.4. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to profit and loss account over its estimated economic life of 10 years.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	20% Straight Line with nil residual value
Motor Vehicles	25% Reducing Balance with nil residual value
Fixtures & Fittings	20% Straight Line with nil residual value

2.6. Stocks and Work in Progress

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Stock is recognised when it arrives in the UK and the risks and rewards of ownership transfer to the company at that point. Prior to this, any stock items invoiced by the supplier are included within prepayments.

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Cobo Tankers & Services Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.7. Foreign Currencies

Monetary 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 ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.8. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the profit and loss account because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

3. Average Number of Employees

The average number of employees, during the year was: 4 (2023: 4)

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 January 2024	1,500

As at 31 December 2024	1,500

Amortisation
As at 1 January 2024	800
Provided during the period	150

As at 31 December 2024	950

Net Book Value
As at 31 December 2024	550

As at 1 January 2024	700

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Cobo Tankers & Services Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

5. Tangible Assets

	Plant & Machinery	Motor Vehicles	Fixtures & Fittings	Total
	£	£	£	£
Cost
As at 1 January 2024	10,427	15,000	8,438	33,865
Additions	-	-	3,260	3,260

As at 31 December 2024	10,427	15,000	11,698	37,125

Depreciation
As at 1 January 2024	6,458	469	1,727	8,654
Provided during the period	985	3,633	1,894	6,512

As at 31 December 2024	7,443	4,102	3,621	15,166

Net Book Value
As at 31 December 2024	2,984	10,898	8,077	21,959

As at 1 January 2024	3,969	14,531	6,711	25,211

6. Stocks

	2024	2023
	£	£
Stock	1,822,999	1,057,351

7. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	1,453,227	1,244,914
Prepayments and accrued income	39,025	34,782
Amounts owed by group undertakings	122,157	42,125

	1,614,409	1,321,821

8. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	505,679	172,382
Corporation tax	11,332	-
Other taxes and social security	441,188	573,323
Other creditors	(357 )	3,101
Accruals and deferred income	16,505	16,460
Amounts owed to group undertakings	2,698,748	1,920,032

	3,673,095	2,685,298

9. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	1	1

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Cobo Tankers & Services Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

10. Contingent Liabilities

Following a post-Brexit review of certain aspects of the company’s outward processing and customs reporting, HMRC issued a decision on 15 November 2024 (the “Duty Decision”) asserting that the company owes £1,417,482 in import duty and VAT. The company is strongly contesting this decision on legal and factual grounds, with support from its professional advisers.

HMRC has granted hardship relief, allowing the company to defer payment until the appeal is concluded. However, interest will continue to accrue and would become payable if the appeal is unsuccessful.

Subsequent to the year end, HMRC issued a further penalty of £1,500, which is also being disputed.

The potential outcomes of the dispute range from no liability arising (if the appeal is successful), to the full amount, including interest and penalties, becoming payable (if unsuccessful). The matter is at an early stage and is expected to take over a year from the date of approval of these financial statements to resolve.

Given the inherent uncertainties the director considers that the liability is not sufficiently probable or reliably measurable to warrant a provision. Accordingly, the matter is disclosed as a contingent liability.

11. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2024	2023
	£	£
Not later than one year	12,925	12,953
Later than one year and not later than five years	15,442	6,623

	28,367	19,576

12. Audit Information

The auditors report on the financial statements of Cobo Tankers & Services Limited for the year ended 31 December 2024 was unqualified. However the auditor drew attention to the following by way of emphasis:

We draw attention to note 2 to the financial statements, which outlines the director's assessment of the company’s ability to continue as a going concern. This assessment includes consideration of a significant contingent liability relating to customs duty and import VAT, as described more fully in note 10 – Contingent Liabilities.

Should the company be unsuccessful in its appeal, there is a material uncertainty as to how the resulting liability would be funded. This may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

The auditor's report was signed by Rachel Davis BA FCA (Senior Statutory Auditor) for and on behalf of Just Audit Limited , Statutory Auditor.

Just Audit Limited

Strelley Hall, Main Street

Strelley

Nottingham

NG8 6PE

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		550		700
Tangible Assets	5		21,959		25,211

			22,509		25,911
CURRENT ASSETS
Stocks	6	1,822,999		1,057,351
Debtors	7	1,614,409		1,321,821
Cash at bank and in hand		315,063		345,022

		3,752,471		2,724,194
Creditors: Amounts Falling Due Within One Year	8	(3,673,095 )		(2,685,298 )

NET CURRENT ASSETS (LIABILITIES)			79,376		38,896

TOTAL ASSETS LESS CURRENT LIABILITIES			101,885		64,807

PROVISIONS FOR LIABILITIES
Deferred Taxation			(3,948 )		(3,948 )

NET ASSETS			97,937		60,859

CAPITAL AND RESERVES
Called up share capital	9		1		1
Profit and Loss Account			97,936		60,858

SHAREHOLDERS' FUNDS			97,937		60,859