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Registered number:
FOR THE YEAR ENDED 31 MARCH 2026
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SKYNET INTERNATIONAL HOLDING LIMITED
CONTENTS
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SKYNET INTERNATIONAL HOLDING LIMITED
COMPANY INFORMATION
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SKYNET INTERNATIONAL HOLDING LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The directors present their strategic report of the company and the group for the year ended 31 March 2026.
Business review SkyNet International Holding Limited operates as part of the global SkyNet network, providing international express courier and logistics solutions to business and retail customers. As an international holding company, the group's primary focus is on cross-border e-commerce fulfilment and express freight, servicing markets across Europe, the Middle East, Africa and the Asia-Pacific region. The group's principal operating subsidiaries are based in Germany, the United Kingdom and Hong Kong, with a new operation established in Australia during the year. FY2026 was a year of significant progress. Against a backdrop of structural change in the international parcel market, management drove growth through the expansion of the group's international operations — led by Hong Kong — while restructuring the United Kingdom operation onto a more efficient and profitable footing. Together these actions delivered a marked improvement in trading performance: turnover grew by 34%, gross profit grew by 38%, and the group moved close to breakeven at operating level, narrowing its operating loss by 90% and reducing its overall loss for the year by 49%. The company itself is an investment holding company and does not trade. It carries the debt associated with the acquisition of the group's operating businesses, and the interest on this debt is reflected in the consolidated profit and loss account. This financing cost accounts for substantially all of the group's residual loss for the year. The group loss for the year was £3,132,883 (2025: £6,177,959). The consolidated balance sheet reflects the investment in, and goodwill arising on, the group's subsidiaries, together with the associated acquisition debt. This continues to present the group in a net liability position of £24,584,479 (2025: £21,344,907). The group forms part of a larger worldwide group and its liabilities are supported by group funding, as set out in the going concern disclosures within the Directors' report. Market and operating environment The international parcel market has been reshaped by the rapid expansion of ultra-low-cost online platforms such as SHEIN and TEMU. These businesses have generated enormous volumes of cross-border e-commerce, particularly from China and the wider Asia-Pacific region, while placing sustained downward pressure on pricing and yields across the industry. In the United Kingdom, the ongoing cost-of-living environment continued to weigh on consumer confidence and discretionary spending across the market, adding to the competitive pressure on pricing and yields. Rather than resisting these shifts, the group has repositioned to participate in them. Through its Hong Kong operation, the group has established itself as a logistics and fulfilment partner to several of the world's largest online marketplaces, converting a market-wide structural threat into the group's principal source of growth. Constrained availability of air freight capacity was a significant feature of the year, with fewer scheduled flights and reduced belly-hold space on key export lanes limiting options and placing upward pressure on carriage costs. Towards the end of the financial year, the escalation of conflict in the Middle East added a further layer of uncertainty over routings and capacity. While this did not have a material impact on the group's performance, the associated uncertainty weighed on customer demand more broadly and, together with the continuing Russia–Ukraine war, disrupted certain air and land freight corridors. The group manages these pressures through route diversification, load consolidation and, where appropriate, the recovery of fuel and war-risk surcharges.
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SKYNET INTERNATIONAL HOLDING LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The group's growth during the year was driven by the continued expansion of its international operations. The Hong Kong operation was the principal engine of this growth: it traded profitably towards the end of the year and established itself as a logistics and fulfilment partner to several of the world's largest online marketplaces. During the same period the group launched its Australian operation, marking its formal entry into the Asia-Pacific market and providing a foothold on emerging trade lanes.
These developments underpinned the 34% increase in group turnover and the 38% increase in gross profit, with gross margin improving from 23.5% to 24.2%. Combined with a reduction in average headcount from 231 to 176 as the United Kingdom operation was restructured, this drove the group's operating result close to breakeven. The residual loss before taxation arises substantially from the interest cost on the acquisition debt carried by the holding company rather than from the group's underlying trading operations. The United Kingdom operation delivered a much-improved performance during the year following the restructuring and downsizing of its facility, which removed areas of overcapacity and reduced the cost base. Better capacity utilisation and disciplined cost control supported a return towards profitability. This was reinforced by a recovery in trading among the group's United Kingdom retail customers, with good growth in volumes from key accounts feeding through into the results of the UK operation. Principal risks and uncertainties Client and geographic concentration The group's growth is now concentrated in Rest of World trade lanes and, in particular, in fulfilment services provided to a small number of large online marketplaces. This exposes the group to the commercial decisions, pricing pressure and volume patterns of those clients. Management mitigates this through service diversification, close client engagement and the development of additional trade lanes. Yield and pricing pressure Intense competition from subsidised, high-volume e-commerce logistics models continues to compress industry pricing and yields. The group manages this by moving towards higher-value, time-definite and value-added services, and through continued cost discipline. Air freight capacity and cost Geopolitical disruption to key corridors has constrained air freight capacity and increased costs. The group manages this through route diversification, load consolidation and, where appropriate, the recovery of fuel and war-risk surcharges. Foreign exchange Operating across multiple currencies, the group is exposed to movements between sterling and the currencies of its overseas operations and suppliers. This exposure is monitored and managed at group level. Asset utilisation Fixed assets across the fleet, hubs and network carry the risk of under-utilisation during periods of transition, increasing unit costs. The group continues to right-size its cost base to align capacity with demand. Going concern and funding The group remains in a net liability position and reported a loss for the year. Its ability to continue as a going concern depends on continued group funding and on the maturing of the group's international growth strategy, as further described in the going concern disclosures within the Directors' report.
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SKYNET INTERNATIONAL HOLDING LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The group's strategy is to consolidate the gains delivered during FY2026 and to build a sustainable, profitable international network. Management will:
– deepen the group's position in cross-border e-commerce fulfilment through the Hong Kong operation, and develop Hong Kong further as a gateway for e-commerce flows into Africa; – grow the newly established Australian operation as the group's Asia-Pacific foothold, building on early momentum along the India–Australia trade lane; – complete the restructuring of the United Kingdom operation, refocusing it on profitable, higher-value segments rather than volume alone; – shift emphasis from low-margin standard export parcels towards premium express, time-critical freight and value-added fulfilment and returns services; and – continue to invest in tracking, automation, route optimisation and e-commerce integration to improve efficiency and reduce reliance on variable labour and fuel costs. Throughout, the group will apply a sharp focus on profitability rather than volume growth alone, prioritising operational focus on the profitable segments of the business.
The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the group as a whole.
Turnover increased by 34% to £59,319,591 (2025: £44,329,985), reflecting the group's repositioning towards Rest of World trade lanes. Cost of sales increased by 33% to £44,949,677 (2025: £33,915,511), broadly in line with the growth in activity. Gross profit increased by 38% to £14,369,914 (2025: £10,414,474), with gross margin improving to 24.1% (2025: 23.5%). The operating loss narrowed by 90% to £320,817 (2025: £3,330,886), and the loss for the year reduced by 49% to £3,132,883 (2025: £6,177,959). The group's net liability position was £24,584,479 (2025: £21,344,907), the movement reflecting the loss for the year. A key non-financial performance indicator for the group is average delivery time, which management monitors daily, aiming for an average of two to three days, which the directors consider an acceptable standard for the group's service offering.
Looking ahead to FY2027, the directors are cautiously optimistic. The strategic repositioning undertaken during the year has established a platform for growth in resilient, higher-volume international markets, and management's priority is to consolidate these gains, mature the Australian operation, complete the United Kingdom restructuring, and continue the group's progression towards operating profitability. While market conditions are expected to remain competitive and pricing pressure is likely to persist, the directors believe that efficiency gains, targeted service differentiation and the group's strengthened international network position it well for a continued recovery in performance. The group remains committed to sustainable, long-term growth built on operational resilience and innovation.
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SKYNET INTERNATIONAL HOLDING LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The directors confirm that they have considered broader matters when performing their duties, specifically with regard to promoting the success of the group for the benefit of shareholders as a whole. In developing the group's strategy, the directors and senior management team consistently engage with employees, customers and suppliers, as well as shareholders, to develop the right outcomes. Specific examples include:
∙Review of business unit long-term projections and KPIs to ensure that investment and focus continue to be directed to the right areas for the long-term as well as short-term prospects of the group;
∙Annual strategy and operating reviews with major suppliers to discuss ongoing relationship and service levels;
∙Regular engagement with employees through regular feedback sessions and detailed discussions with a smaller “Management Forum” group;
∙Market research discussions with customers to ascertain their priority and focus areas as these evolve and develop;
∙Ensuring the highest standards of business conduct are upheld through maintenance of a risk register, clear and updated HR policies and well documented objective and performance review processes.
This report was approved by the board and signed on its behalf.
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SKYNET INTERNATIONAL HOLDING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The directors present their report and the financial statements for the year ended 31 March 2026.
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 judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙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 group'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 loss for the year, after taxation, amounted to £3,132,883 (2025: £6,177,959).
No dividends will be distributed for the year ended 31 March 2026.
The directors who served during the year were:
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SKYNET INTERNATIONAL HOLDING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The financial statements have been prepared on a going concern basis.
The group recorded a loss after tax for the year ended 31 March 2026 of £3,132,883 (2025: £6,177,959), a reduction of 49% year on year. At the balance sheet date the group was in a net liability position, with total liabilities exceeding total assets by £24,584,479 (2025: £21,344,907). This net liability position arises principally from acquisition-related debt and from intra-group funding provided by the group's parent, rather than from the group's underlying trading operations, which moved close to breakeven at operating level during the year. The improvement in the group's result reflects the corrective actions taken during the year. Group turnover grew by 34% and gross profit by 38%, while the restructuring and downsizing of the United Kingdom operation reduced the cost base and improved capacity utilisation. The group's Hong Kong operation traded profitably towards the end of the year, having established itself as a logistics and fulfilment partner to several of the world's largest online marketplaces, and the group launched its Australian operation as a foothold in the Asia-Pacific market. Trading in the United Kingdom stabilised in the second half of the year under a new management team, supported by a recovery in trading among the group's United Kingdom retail customers. The broader macroeconomic environment across the United Kingdom and continental Europe remained fragile throughout the year, with elevated inflation, interest-rate pressure and subdued consumer sentiment continuing to weigh on retail activity and, in turn, on demand from the group's e-commerce customer base. Towards the end of the financial year, the escalation of conflict in the Middle East added a further layer of macroeconomic uncertainty; while this did not have a material impact on the group's performance, the associated uncertainty weighed on customer demand more broadly. Notwithstanding these conditions, the group's restructuring programme is expected to deliver further cost savings and additional cash flow headroom in the year ahead. Accordingly, the directors believe that the group has adequate financial resources to continue in operation for the foreseeable future and accordingly the annual financial statements have been prepared on a going concern basis. The directors are satisfied that the group has access to sufficient borrowing facilities to meet its foreseeable cash requirements. The directors are not aware of any new material changes that may adversely impact the group. The directors are also not aware of any material non-compliance with statutory or regulatory requirements or of any pending changes to legislation which may affect the group. Cash flow forecasts reflect current trading trends, the corrective actions taken during the year and the anticipated benefits of the United Kingdom restructuring programme. Having reviewed these forecasts, the directors are satisfied that the group will be able to meet its obligations as they fall due. A significant proportion of the group's liabilities comprises amounts owed to the immediate parent company, SkyNet South Africa (Pty) Ltd. Although these amounts are repayable on demand, there is no fixed repayment schedule and the directors do not expect them to be called in a manner that would affect the group's ability to continue in operation. The ultimate parent company, SkyNet Worldwide Express Holdings (Pty) Ltd, has confirmed in writing its intention to provide such financial support as is necessary to enable the group to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements. Having considered these factors, together with the support available from group companies, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing these financial statements.
The engagement of the group with suppliers, customers and others is detailed in the Section 172(1) statement in the Strategic report.
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SKYNET INTERNATIONAL HOLDING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Intensity ratio 0.00205
The methodology used in the calculation of these disclosures was based on the HM Government Environmental Reporting Guidelines 2019 and the Greenhouse Gas Reporting conversion factors of 2026. Consumption data was extracted from supplier invoices across all sites. The intensity ratio has been calculated by applying metric tonnes equivalent per £ turnover (tCO2e/£).
Energy efficiency actions taken
We continue to invest in energy saving and renewable energy across the group and the current focus is on generating energy using solar panel technology.
The group has chosen in accordance with section 414C(11) of the Companies Act 2006 (strategic report and directors' report) Regulations 2013 to set out in the group's strategic report information required by the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 Schedule 7 to be contained in the directors' report.
There were no significant events after the balance sheet date, and up to the date of approval of these financial statements, that require adjustment to, or disclosure in, these financial statements.
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SKYNET INTERNATIONAL HOLDING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The auditor, Cooper Parry Group 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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SKYNET INTERNATIONAL HOLDING LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SKYNET INTERNATIONAL HOLDING LIMITED
We have audited the financial statements of SkyNet International Holding Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2026, which comprise the consolidated profit and loss account, the consolidated and company balance sheet, the consolidated and company statement of changes in equity, the consolidated statement of cash flows, the consolidated analysis of net funds 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).
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.
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SKYNET INTERNATIONAL HOLDING LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SKYNET INTERNATIONAL HOLDING LIMITED (CONTINUED)
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 year 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.
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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SKYNET INTERNATIONAL HOLDING LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SKYNET INTERNATIONAL HOLDING 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 gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates, and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. Our procedures in relation to fraud included but were not limited to: enquiries of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to 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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SKYNET INTERNATIONAL HOLDING LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SKYNET INTERNATIONAL HOLDING LIMITED (CONTINUED)
This report is made solely to the group'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 group'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 group and the group'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
Davidson House
1st floor
The Forbury
RG1 3EU
Date:
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SKYNET INTERNATIONAL HOLDING LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2026
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SKYNET INTERNATIONAL HOLDING LIMITED
REGISTERED NUMBER: 13618254
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2026
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 36 form part of these financial statements.
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SKYNET INTERNATIONAL HOLDING LIMITED
REGISTERED NUMBER: 13618254
COMPANY BALANCE SHEET
AS AT 31 MARCH 2026
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 36 form part of these financial statements.
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SKYNET INTERNATIONAL HOLDING LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2026
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SKYNET INTERNATIONAL HOLDING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2026
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SKYNET INTERNATIONAL HOLDING LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2026
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SKYNET INTERNATIONAL HOLDING LIMITED
CONSOLIDATED ANALYSIS OF NET FUNDS
FOR THE YEAR ENDED 31 MARCH 2026
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
SkyNet International Holding Limited is a private company, limited by shares, registered in England and Wales. The group's registered number and registered office address can be found on the general information page.
2.Accounting policies
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The financial statements are prepared in Pound Sterling (£), which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared on a going concern basis.
The group recorded a loss after tax for the year ended 31 March 2026 of £3,132,883 (2025: £6,177,959), a reduction of 49% year on year. At the balance sheet date the group was in a net liability position, with total liabilities exceeding total assets by £24,584,479 (2025: £21,344,907). This net liability position arises principally from acquisition-related debt and from intra-group funding provided by the group's parent, rather than from the group's underlying trading operations, which moved close to breakeven at operating level during the year. The improvement in the group's result reflects the corrective actions taken during the year. Group turnover grew by 34% and gross profit by 38%, while the restructuring and downsizing of the United Kingdom operation reduced the cost base and improved capacity utilisation. The group's Hong Kong operation traded profitably towards the end of the year, having established itself as a logistics and fulfilment partner to several of the world's largest online marketplaces, and the group launched its Australian operation as a foothold in the Asia-Pacific market. Trading in the United Kingdom stabilised in the second half of the year under a new management team, supported by a recovery in trading among the group's United Kingdom retail customers. The broader macroeconomic environment across the United Kingdom and continental Europe remained fragile throughout the year, with elevated inflation, interest-rate pressure and subdued consumer sentiment continuing to weigh on retail activity and, in turn, on demand from the group's e-commerce customer base. Towards the end of the financial year, the escalation of conflict in the Middle East added a further layer of macroeconomic uncertainty; while this did not have a material impact on the group's performance, the associated uncertainty weighed on customer demand more broadly. Notwithstanding these conditions, the group's restructuring programme is expected to deliver further cost savings and additional cash flow headroom in the year ahead. Accordingly, the directors believe that the group has adequate financial resources to continue in operation for the foreseeable future and accordingly the annual financial statements have been prepared on a going concern basis. The directors are satisfied that the group has access to sufficient borrowing facilities to meet its foreseeable cash requirements. The directors are not aware of any new material changes that may adversely impact the group. The directors are also not aware of any material non-compliance with statutory or regulatory requirements or of any pending changes to legislation which may affect the group. Cash flow forecasts reflect current trading trends, the corrective actions taken during the year and the anticipated benefits of the United Kingdom restructuring programme. Having reviewed these forecasts, the directors are satisfied that the group will be able to meet its obligations as they fall due.
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
A significant proportion of the group's liabilities comprises amounts owed to the immediate parent company, SkyNet South Africa (Pty) Ltd. Although these amounts are repayable on demand, there is no fixed repayment schedule and the directors do not expect them to be called in a manner that would affect the group's ability to continue in operation. The ultimate parent company, SkyNet Worldwide Express Holdings (Pty) Ltd, has confirmed in writing its intention to provide such financial support as is necessary to enable the group to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements.
Having considered these factors, together with the support available from group companies, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing these financial statements.
The financial statements consolidate the financial statements of SkyNet International Holding Limited and all of its subsidiary undertakings (subsidiaries). All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The financial statements are for the year ended 31 March 2026. The comparative accounts relate to the year ended 31 March 2025.
Turnover comprises turnover recognised by the group in respect of international mailing services supplied during the year to corporate clients through an extensive network of UK branches and overseas affiliated entities, exclusive of Value Added Tax and trade discounts.
Income is recognised when services are supplied to customers such that risks and rewards of ownership have transferred to them. This is usually upon delivery of goods. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Interest expense is charged to the consolidated profit and loss account over the term of the debt using the effective interest method.
Goodwill
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the consolidated profit and loss account over its estimated economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following basis:
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Short-term leasehold property - 10% straight line Plant and machinery - 20 - 33% reducing balance Motor vehicles - 40% reducing balance Fixtures and fittings - 7.5 - 50% reducing balance
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Taxation for the year comprises current and deferred tax. Tax is recognised in the consolidated profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
The group operates a defined contribution pension scheme, contributions payable to the group's pension scheme are charged to the consolidated profit and loss account in the period to which they relate.
Rentals under operating leases are charged to the consolidated profit and loss account on a straight-line basis over the lease term.
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Financial assets and financial liabilities are recognised in the balance sheet when the group becomes a party to the contractual provisions of the instrument.
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the group will not be able to collect all amounts due. Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the group's cash management. Financial liabilities and equity instruments issued by the group are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs. Provisions are charged as an expense to the consolidated profit and loss account in the year that the group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the balance sheet.
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Useful economic lives of tangible The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates and the physical condition of the assets. Impairment of debtors The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other receivables, management considers factors including: the credit rating of the receivable, the ageing profile of receivables and historical experience.
The whole of the turnover is attributable to the one principal activity of the group.
Analysis of turnover by country of destination:
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
All directors of the group are remunerated from the immediate parent company being SkyNet South Africa (Pty) Ltd.
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements. The loss after tax of the parent company for the year was £
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 34
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Share premium
Foreign exchange reserve
Retained earnings
24.Other financial commitments
On 28 February 2023, SkyNet Worldwide Express Limited and Deltec International Courier Limited entered into a fixed charge over their accounts with Barclays Bank Plc.
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SKYNET INTERNATIONAL HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
The immediate parent company is SkyNet South Africa (Pty) Ltd. The ultimate parent company is SkyNet Worldwide Express Holdings (Pty) Ltd, whose address is 140 North Reef Road, Rietfontein 63-LR Germiston, Gauteng, 1401 South Africa. In the opinion of the directors, the group is controlled by the ultimate parent company.
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