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Registered Number:
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 30 APRIL 2025
The directors present their Strategic Report for the 16 month period ended 30 April 2025.
Principal activity The Company acts as a non-trading holding company to the Group. The Group’s trading activities are carried out by the subsidiary undertaking S E A Transport Limited. The Group trades as “SEA Transport”. The principal activity of the Group headed by S E A Transport Holdings Limited is that of the provision of maritime haulage and other port services, to a customer base including freight forwarders, shipping lines, and direct UK customers. Services cover haulage of full container loads, consolidation and haulage of part container loads, warehousing and storage, and other related ancillary areas. The Group considers itself to be a leading service provider, underpinned by best-in-class use of technology, and a strong customer focused culture and ethos. SEA Transport was established as a family run business in the year 2000, growing initially from a base in Ipswich serving the nearby ‘Port of Felixstowe’. After sustained successful growth, in 2021, the business expanded its operations via commitment to a materially larger warehousing facility within the Felixstowe port boundary. In October 2022 SEA Transport received investment from an Investment Fund. This fund exited during the financial period, on 10 April 2025, with ownership changing back to previous management whom remained present within the Group during the Investment Fund ownership period.
The Group’s accounting period, as presented in these accounts, covers a 486-day period from 1 January 2024 to 30 April 2025.
We aim to present a balanced and proportionate review of the development and performance of the Group during the period and its position as at 30 April 2025. Our review is consistent with the size and relatively noncomplex nature of our business. Within this period, at a headline level, the Group reported turnover of £20.2m, Gross Margin of £3.5m or 17.3%, Operating Profit of £3.6m, and an ‘adjusted Operating profit’ of £0.1m, the latter being the Group’s primary performance measure in line with the definition within the investment case model. In August 2024 the Group expanded its operations through opening a new facility in Northampton. The addition of the new, well located, office alongside increased fleet size and customer contracts was planned to enable the Group to grow both top line revenue and profitability. The investment was monitored closely and planned financial performance did not translate into actuals, leading the Directors to a decision to close the depot. This closure was substantially completed prior to 30 April 2025 and finalised on 3 May 2025. Losses reported by the Group during the period ended 30 April 2025 in relation to this depot totalled £0.2m and will be non-recurring in future periods. The results relating to this depot have been classified as discontinued operations in the consolidated statement of comprehensive income. The directors are satisfied with the performance of the Group during the period. The change in ownership on 10 April 2025 paved the way for a strategic pivot and adjustment of focus in line with the challenging market backdrop seen in the haulage sector. The Group is now targeting capitalisation on the quality of its core services through the maintenance of long-term customer relationships alongside onboarding of new customers. This enabled the directors to deliver structural changes to the overheads of the Group, delivering significant fixed cost reductions in a short time frame after the period end. Growth targets are now set on lower risk options rather than higher risk, expensive, alternatives that have been pursued in previous years limiting the risk of losses. With this in mind, the directors remain optimistic about the future of the Group.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2025
The Group's principal financial instruments are trade debtors and trade creditors arising directly from operations. The Group's policy is to finance working capital through retained earnings and, where required, external finance facilities. The directors believe the principal risks and uncertainties to be as follows:
Liquidity and cash flow risk The Group is well supported by an established CID facility, which provides comfortable headroom for future trading, growth, and expansion. Forward looking cash flow and headroom positions are monitored regularly. Markets Market conditions have been volatile in recent years, with the geopolitical climate and tariff changes recently driving more extreme peaks and troughs to trading. The Group maintains a healthy balance of owned trucks and employed drivers, to subcontractor resources. This ensures the Group does not carry unnecessary cost in weaker markets but can scale quickly when volumes are stronger. The Group regularly conducts sensitivity analysis on its forward-looking financial projections and ensures a range of market conditions can be managed appropriately. Fuel Price Fuel prices have also been volatile over recent years. The Group operates a clear fuel surcharge mechanism with customers, to ensure impacts of volatile fuel pricing are minimised. Credit Risk The Group regularly reviews its credit positions with customers. These positions are largely supported by credit insurance which significantly limits Group exposure to bad debts. The Group has a strong history on credit control, and bad debts have been extremely minimal over recent years. Customer Concentrations The Group continues to provide best in class service to existing customers to ensure strong customer retention. The Group also continues to work hard to onboard new customers to ensure that reliance on any single existing customer is minimised.
The directors measure the performance of the Group principally by the yardstick of an ‘adjusted operating profit’ measure in line with the definition within the investment case model. For the year ended 30 April 2025, we report an adjusted operating profit measure in the period of £0.1m.
Elsewhere, the directors use a series of Key Performance Indicators (KPI’s), to monitor the development and efficiency of the business. Financially these measures include turnover, gross profit, and gross margin %, and operationally we also constantly monitor our asset utilisations, service levels, and adherence to industry compliance standards to underpin our O-license status. The directors are satisfied with performance in the period against these KPI, however these are not disclosed here due to their commercially sensitive nature.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2025
In determining the appropriate basis of preparation of the Annual Financial Statements, the directors are required to consider whether the Group and the Company can continue in operational existence for the foreseeable future, that is for at least 12 months from the date of signing this report.
The directors make this assessment based on sensitised forward-looking cash headroom forecasts, with revenue projections based on historical trends as well as current and forecast market conditions. The Group headroom positions as at 30 April 2025 are robust, with the Company well supported by material capacity available within its CID facility, in respect of which the Group is dependent on to meet its working capital requirements. In addition, the directors also generated a downside scenario with reduced sales levels. The directors are confident that even on low case trading scenarios, the Group will retain robust headroom positions over the coming 12-month period. In addition, the Group has also identified further mitigating actions that could be taken should the need arise. The directors also acknowledge the net current liabilities position of the Group, but conclude this poses no immediate impact to the going concern status of the entity. As to the Company’s net current liabilities position, the Company owes its subsidiary undertakings £789,124 and in respect of which those subsidiary undertakings have each committed to not asking for repayment of any amounts that they are owed by the Company within 12 months from the date of signing the accounts. The directors have also considered the impact of the ownership transition on the Group’s operations and strategic direction. The Group returned to the ownership of the previous leadership team on 10 April 2025, who had remained actively involved in the business throughout the period of Investment Fund ownership. Given their continued operational involvement and long-standing knowledge of the business, the directors consider the transition to be orderly and stabilising, and do not believe it poses a material threat to the Group’s ability to continue as a going concern. After reviewing the Group’s forecasts and projections, the directors have a reasonable expectation that the Group and the Company has adequate resources to continue in operational existence for the foreseeable future. Through this assessment, and with the Group well supported by its banking partners, the directors are satisfied to continue to report on a Going Concern basis.
The Group is well supported by reputable banking partners. Whilst market conditions have been historically proven to fluctuate significantly, the directors utilise the benefits of this support to maintain focus on longer-term aspirations.
We will continue to invest in our systems, infrastructure, and people to allow us to continue to provide strong service, innovation, and productivity to support our future growth.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2025
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 APRIL 2025
The Directors present their report and the financial statements for the period ended 30 April 2025.
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments 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 Group will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation, amounted to £2,751,987 (2023 - loss £1,756,818).
The Directors do not recommend the payment of a dividend.
The Directors who served during the period were:
F J Connolly (resigned 29 May 2024)
T C Cormack (resigned 29 May 2024) A C Liljendahl (resigned 20 August 2024) R J Morson (appointed 29 May 2024, resigned 24 October 2024) A Milner (appointed 29 May 2024, resigned 10 April 2025)
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S E A TRANSPORT HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2025
Disclosures which have been included in the Strategic report of the Company include the principal activities of the Company, review of business performance, key performance indicators, principal risks and uncertainties, going concern, and future outlook narrative. These will not be duplicated in this Directors report.
Disclosures which have been included in the Strategic report of the Company are limited to the principal activity of the Company, and business performance comment. This is felt proportionate given the non-trading nature of the Company.
There have been no significant events affecting the Group since the period end.
The auditor, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF S E A TRANSPORT HOLDINGS LIMITED
We have audited the financial statements of S E A Transport Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 30 April 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
We draw attention to Note 2.3 to the financial statements, which describes the directors’ assessment of the Group’s and the Company’s ability to continue as a going concern. As disclosed in that note, during the financial period the Group underwent an ownership transition, with the Investment Fund that acquired the Group in October 2022 exiting on 10 April 2025 and ownership returning to the previous leadership team, who had remained actively involved throughout the period of the Fund’s ownership. The directors have assessed the impact of this transition, together with the Group’s cash flow forecasts, financing arrangements and headroom positions, in concluding that the going concern basis of preparation remains appropriate. Our opinion is not modified in respect of this matter.
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S E A TRANSPORT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF S E A TRANSPORT HOLDINGS LIMITED (CONTINUED)
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 Group's or the parent 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.
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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S E A TRANSPORT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF S E A TRANSPORT HOLDINGS LIMITED (CONTINUED)
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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S E A TRANSPORT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF S E A TRANSPORT HOLDINGS LIMITED (CONTINUED)
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 Group 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:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience and through discussions and enquiries of the Directors and management (as required by accounting standards), inspection of the Group's regulatory and legal correspondence and discussed with the Directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as most likely to have such an effect; health and safety, anti-bribery and corruption, human rights and employment law, GDPR and operator license regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspect of relevant legal documentation, review of Board minutes, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's Report.
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S E A TRANSPORT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF S E A TRANSPORT HOLDINGS LIMITED (CONTINUED)
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.
for and on behalf of
Statutory Auditor
Fitzroy House
Crown Street
Suffolk
IP1 3LG
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 APRIL 2025
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2025
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CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2025
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CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 22 to 47 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 30 APRIL 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 22 to 47 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 APRIL 2025
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 APRIL 2025
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 APRIL 2025
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2025
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 30 APRIL 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
S E A Transport Holdings Limited (the "Company") is a private company limited by shares and incorporated in England and Wales. The registered office address is Office at 82 Shed, Dock Road, Felixstowe, Suffolk, IP11 3BW. The principal activity of the Company is that of Group management services and an investment holding company. The principal activity of the Group is that of freight transport by road.
The Company's functional and presentational currency is Sterling (£).
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The Parent Company is included in the consolidated financial statements, and is considered to be a qualifying entity under FRS 102 paragraphs 1.8 to 1.12. The disclosure exemption from preparing a separate Parent Company statement of cash flows has been applied.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
2.Accounting policies (continued)
In determining the appropriate basis of preparation of the Annual Financial Statements, the directors are required to consider whether the Group and the Company can continue in operational existence for the foreseeable future, that is for at least 12 months from the date of signing this report.
The directors make this assessment based on sensitised forward-looking cash headroom forecasts, with revenue projections based on historical trends as well as current and forecast market conditions. The Group headroom positions as at 30 April 2025 are robust, with the Company well supported by material capacity available within its CID facility, in respect of which the Group is dependent on to meet its working capital requirements. In addition, the directors also generated a downside scenario with reduced sales levels. The directors are confident that even on low case trading scenarios, the Group will retain robust headroom positions over the coming 12-month period. In addition, the Group has also identified further mitigating actions that could be taken should the need arise. The directors also acknowledge the net current liabilities position of the Group, but conclude this poses no immediate impact to the going concern status of the entity. As to the Company’s net current liabilities position, the Company owes its subsidiary undertakings £789,124 and in respect of which those subsidiary undertakings have each committed to not asking for repayment of any amounts that they are owed by the Company within 12 months from the date of signing the accounts. The directors have also considered the impact of the ownership transition on the Group’s operations and strategic direction. The Group returned to the ownership of the previous leadership team on 10 April 2025, who had remained actively involved in the business throughout the period of Investment Fund ownership. Given their continued operational involvement and long-standing knowledge of the business, the directors consider the transition to be orderly and stabilising, and do not believe it poses a material threat to the Group’s ability to continue as a going concern. After reviewing the Group’s forecasts and projections, the directors have a reasonable expectation that the Group and the Company has adequate resources to continue in operational existence for the foreseeable future. Through this assessment, and with the Group well supported by its banking partners, the directors are satisfied to continue to report on a Going Concern basis.
- 23 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
2.Accounting policies (continued)
- 24 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
2.Accounting policies (continued)
- 25 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.
Amortisation is provided on the following bases:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance or straight line basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
- 26 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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 Balance Sheet when the Group 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.
- 27 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
2.Accounting policies (continued)
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially
- 28 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
2.Accounting policies (continued)
recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Valuation of Goodwill The Directors have considered whether there are indicators of impairment of the acquired goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future performance of the Group. Valuation of Fixed asset investment In determining whether there are indicators of impairment of the Company's investment in S E A Transport Investments Limited, the Directors have taken into consideration both internal and external sources of information in reaching such a decision including the economic viability and expected future financial performance of the investment. Useful economic life of Tangible fixed assets The useful economic life of tangible fixed assets is based on estimates made by the Directors. These are reviewed annually for any revisions needed. Recognition of Deferred tax asset The Directors have made the judgment not to recognise a net deferred tax asset due to there being uncertainty over the timing and extent of its utilisation. Dilapidation provision Details are provided in note 24 to the financial statements.
- 29 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
- 30 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
- 31 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
- 32 -
|
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
- 33 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
- 34 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
- 35 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
13.Taxation (continued)
The Group has estimated corporation tax losses amounting to £2,272,489 available to carry forward and offset against future trading profits.
The Company has estimated corporation tax losses amounting to £367,827 available to carry forward and offset against future trading profits. The Company has not recognised a deferred tax asset due to there being uncertainty over the timing and extent of its utilisation.
- 36 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
- 37 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
- 38 -
|
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
- 39 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
Indirect subsidiary undertaking (continued)
- 40 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
- 41 -
|
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
Included in bank overdrafts is £973,618 (2023 - £1,049,717) due to the sales financing company which is secured on the debts to which it relates.
The CBILS bank loan of £40,000 (2023 - £93,333) is unsecured. Obligations under finance leases and hire purchase contracts of £1,690,370 (2023 - £2,438,131) are secured on the assets to which they relate. Other loans are secured by a debenture, containing a fixed and floating charge over the property and undertakings of the Company.
- 42 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
- 43 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
24.Deferred taxation (continued)
- 44 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
Share premium account
Profit and loss account
- 45 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £96,053 (2023 - £50,567). Contributions amounting to £11,197 (2023 - £10,443) were payable to the scheme at the balance sheet date and are included in other creditors.
- 46 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2025
In August 2024 the Group expanded its operations through opening a new facility in Northampton. The addition of the new, well located, office alongside increased fleet size and customer contracts was planned to enable the Group to grow both top line revenue and profitability. The investment was monitored closely and planned financial performance did not translate into actuals, leading the Directors to a decision to close the depot. This closure was substantially completed prior to 30 April 2025 and finalised on 3 May 2025. Losses reported by the Group during the period ended 30 April 2025 in relation to this depot totalled £0.2m and will be non-recurring in future periods. The results relating to this depot have been classified as discontinued operations in the consolidated statement of comprehensive income.
The ultimate controlling party was Enact III (GP) LP, acting as General Partner to Enact III LP and Enact III Co-investment LP, until 10 April 2025. The ultimate controlling party has been C M Smith and F R Smith since 10 April 2025.
- 47 -
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