M & S Logistics Limited
Annual Report and Financial Statements
For the year ended 31 December 2021
Company Registration No. 03597897 (England and Wales)
M & S Logistics Limited
Company Information
Directors
D. R. Kew
L. M. Verwey
R. N. Surman
Company number
03597897
Registered office
Hope Street Chapel
Hope Street
Sandbach
Cheshire
CW11 1BA
Auditor
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
M & S Logistics Limited
Contents
Page
Strategic report
1
Directors' report
2 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group and company balance sheets
10 - 11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 37
M & S Logistics Limited
Strategic Report
For the year ended 31 December 2021
Page 1
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
The principal activity of the group continued to be that of tank container operators.
The results for the year and the financial position at the year end were considered satisfactory by the directors who expect continued growth in the foreseeable future.
The results for the Group show a pre-tax profit of £8,
276,305
(2020: £1,842,978) and turnover of £113,
558,809
(2020: £69,604,159).
Principal risks and uncertainties
The management of the business and its operations are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to the global economic climate and the demand for tank equipment.
Future developments
The road map for 2022 and beyond includes increasing the fleet of tank containers, expanding our global presence and build systems and process to enable the company to manage growth.
The directors acknowledge that current market conditions remain uncertain, but they are determined and are committed to developing the group and drive growth.
Section 172 (1) statement
The success of the company is reliant on our committed team of employees, how we service our clients and the reliance on our suppliers to deliver a good service. The directors satisfy their duty to promote the long term success of the company while taking into account the key stakeholders and matter as listed in Section 172(1)(a) to (f) of the Companies Act 2006.
The directors take all of our stakeholders into consideration when making strategic decision. This is evident in the M&S Core Values and Behaviours statement that is part of how we operate day to day: “We have one important value and that is relationship". M&S Logistics strive to build the best possible relationships with our employees, customers, supplier and shareholders by behaving in such a way that is honest, ethical, caring for the environment around us and accountable for our actions.
L. M. Verwey
Director
27 September 2022
M & S Logistics Limited
Directors' Report
For the year ended 31 December 2021
Page 2
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company and group continued to be that of tank container operators.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £302,000 (2020: £64,000). The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J. J. Risbridger
(Resigned 26 February 2021)
W. Gill
(Resigned 7 January 2021)
D. R. Kew
L. M. Verwey
R. N. Surman
Auditor
The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
M & S Logistics Limited
Directors' Report (Continued)
For the year ended 31 December 2021
Page 3
Energy and carbon report
During the financial year, in the UK, the Group consumed energy and produced CO2 emissions as follows:
2021
2020
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
38,530
32,123
- Electricity purchased
22,427
24,069
60,957
56,192
2021
2020
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
7.06
5.91
- Fuel consumed for owned transport
7.00
4.97
14.06
10.88
Scope 2 - indirect emissions
- Electricity purchased
4.76
5.61
Total gross emissions
18.82
16.49
Intensity ratio
Tonnes CO2e per full-time employee
0.42
-
In quantifying and reporting the above data, t
he group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per
full time employee.
We have installed smart meters across
our
sites
to actively monitor energy consumption.
We have reduced our paper use by moving to paperless systems and recycling waste paper in our offices with a result in a reduction in our carbon footprint in 2021 in this area and we are monitoring on an ongoing basis to reduce wastage where possible in the future.
M & S Logistics Limited
Directors' Report (Continued)
For the year ended 31 December 2021
Page 4
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies 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
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Matters included in the Strategic Report
The
true
group
has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the
group
's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of
risk management and future developments
.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
On behalf of the board
L. M. Verwey
Director
27 September 2022
M & S Logistics Limited
Independent Auditor's Report
To the Members of M & S Logistics Limited
Page 5
Opinion
We have audited the
financial statements of
M & S Logistics Limited
(the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Group Statement of Comprehensive Income, the Group Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements,
including
significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2021 and of the group's profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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 UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the
group's and
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.
M & S Logistics Limited
Independent Auditor's Report (Continued)
To the Members of M & S Logistics Limited
Page 6
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the Strategic Report and the Directors'
R
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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 identifie
d
material misstatements in the Strategic Report and the Directors'
R
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors'
R
esponsibilities
S
tatement
,
the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine
is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the
financial statements
, the
directors are
responsible for assessing the
group's and parent
company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors
either
intend
to liquidate the
group or the parent company
or to cease operations, or have no realistic alternative but to do so.
M & S Logistics Limited
Independent Auditor's Report (Continued)
To the Members of M & S Logistics Limited
Page 7
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group’s internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
-
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
M & S Logistics Limited
Independent Auditor's Report (Continued)
To the Members of M & S Logistics Limited
Page 8
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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
.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
-
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
-
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
-
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
-
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
-
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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
for no purpose other than to draw to the attention of
the company’s members those matters we are required to
include
in an auditor's report
addressed to them
. To the fullest extent permitted by law, we do not accept or assume responsibility to any
party
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.
Steven Rushmer (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
27 September 2022
Chartered Accountants
Orbital House
Statutory Auditor
20 Eastern Road
Romford
Essex
RM1 3PJ
M & S Logistics Limited
Group Statement of Comprehensive Income
For the year ended 31 December 2021
Page 9
2021
2020
Notes
£
£
Turnover
3
113,558,809
69,604,159
Cost of sales
(89,891,507)
(57,563,687)
Gross profit
23,667,302
12,040,472
Administrative expenses
(14,996,958)
(10,047,361)
Other operating income
321,319
439,723
Operating profit
4
8,991,663
2,432,834
Share of results of associates and joint ventures
-
(713)
Interest receivable and similar income
8
1,702
6,036
Interest payable and similar expenses
9
(717,060)
(629,155)
Gain on disposal of associate
10
33,976
Profit before taxation
8,276,305
1,842,978
Taxation
11
(1,116,842)
(264,881)
Profit for the financial year
7,159,463
1,578,097
Profit for the financial year is all attributable to the owners of the parent company.
M & S Logistics Limited
Group and Company Balance Sheets
As at 31 December 2021
31 December 2021
Page 10
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
13
178,490
223,512
172,358
223,512
Tangible assets
14
19,597,234
15,674,318
19,506,703
15,632,753
Investments
15
739,480
483,005
19,775,724
15,897,830
20,418,541
16,339,270
Current assets
Debtors
18
27,052,030
16,903,167
25,660,753
17,723,707
Cash at bank and in hand
7,799,034
4,109,652
6,034,401
2,528,779
34,851,064
21,012,819
31,695,154
20,252,486
Creditors: amounts falling due within one year
19
(34,093,409)
(24,810,201)
(32,878,274)
(25,440,399)
Net current assets/(liabilities)
757,655
(3,797,382)
(1,183,120)
(5,187,913)
Total assets less current liabilities
20,533,379
12,100,448
19,235,421
11,151,357
Creditors: amounts falling due after more than one year
20
(7,275,177)
(6,739,419)
(7,252,079)
(6,712,549)
Provisions for liabilities
Deferred tax liability
24
(2,214,058)
(1,192,972)
(2,214,058)
(1,192,972)
Net assets
11,044,144
4,168,057
9,769,284
3,245,836
Capital and reserves
Called up share capital
26
100
100
100
100
Other reserves
27
39,793
21,169
Profit and loss reserves
27
11,004,251
4,146,788
9,769,184
3,245,736
Total equity
11,044,144
4,168,057
9,769,284
3,245,836
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the year was £6,825,448 (2020 - £1,079,574 profit).
M & S Logistics Limited
Group and Company Balance Sheets (Continued)
As at
31 December 2021
31 December 2021
Page 11
The financial statements were approved by the board of directors and authorised for issue on 23 September 2022 and are signed on its behalf by:
23 September 2022
L. M. Verwey
Director
Company Registration No. 03597897
M & S Logistics Limited
Group Statement of Changes in Equity
For the year ended 31 December 2021
Page 12
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2020
100
55,234
2,632,691
2,688,025
Period ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
1,578,097
1,578,097
Dividends
12
-
-
(64,000)
(64,000)
Currency translation differences on overseas subsidiaries
-
(34,065)
-
(34,065)
Balance at 31 December 2020
100
21,169
4,146,788
4,168,057
Period ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
7,159,463
7,159,463
Dividends
12
-
-
(302,000)
(302,000)
Currency translation differences on overseas subsidiaries
-
18,624
-
18,624
Balance at 31 December 2021
100
39,793
11,004,251
11,044,144
M & S Logistics Limited
Company Statement of Changes in Equity
For the year ended 31 December 2021
Page 13
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2020
100
2,230,162
2,230,262
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
1,079,574
1,079,574
Dividends
12
-
(64,000)
(64,000)
Balance at 31 December 2020
100
3,245,736
3,245,836
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
6,825,448
6,825,448
Dividends
12
-
(302,000)
(302,000)
Balance at 31 December 2021
100
9,769,184
9,769,284
M & S Logistics Limited
Group Statement of Cash Flows
For the year ended 31 December 2021
Page 14
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
9,109,632
2,892,820
Interest paid
(717,060)
(629,155)
Income taxes paid
(171,914)
(43,256)
Net cash inflow from operating activities
8,220,658
2,220,409
Investing activities
Purchase of intangible assets
(33,654)
(129,503)
Purchase of tangible fixed assets
(1,655,033)
(80,804)
Proceeds on disposal of tangible fixed assets
15,456
14,829
Proceeds on disposal of investments
-
8
Interest received
1,702
6,036
Net cash used in investing activities
(1,671,529)
(189,434)
Financing activities
Issue of preference shares
-
26,870
Payment of finance leases obligations
(2,452,987)
(1,858,513)
Dividends paid to equity shareholders
(302,000)
(64,000)
Net cash used in financing activities
(2,754,987)
(1,895,643)
Net increase in cash and cash equivalents
3,794,142
135,332
Cash and cash equivalents at beginning of year
4,109,652
3,702,721
Effect of foreign exchange rates
(104,760)
271,599
Cash and cash equivalents at end of year
7,799,034
4,109,652
M & S Logistics Limited
Notes to the Financial Statements
For the year ended 31 December 2021
Page 15
1
Accounting policies
Company information
M & S Logistics Limited
(“the Company”)
is a company
limited by shares
domiciled and incorporated in
England and Wales
.
The registered office is
Hope Street Chapel, Hope Street, Sandbach, Cheshire, CW11 1BA.
The Group consists of M & S Logistics Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest
pound
.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated financial statements incorporate those of M & S Logistics Limited and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All financial statements are made up to 31 December 2021
.
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.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.
1.3
Going concern
In preparing the financial statements, the directors have considered the appropriateness of the going concern basis of accounting. The financial statements show that the group has net assets of £
11,044,144
and at the reporting date and made a profit for the year of £
7,159,463
and that the parent company has net assets of £
9,769,284
and at the reporting date and made a profit for the year of £
6,825,448
.
At the time of approving the financial statements, the directors
consider that there is adequate cash and assets within the group to support the group and the parent company in paying their liabilities as they fall due. Therefore the director
have a reasonable expectation that the company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover represents amounts receivable
from tank container operations provided net of value added tax. Turnover is recognised on dispatch of the tank container and its goods.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 16
1.5
Intangible fixed assets - goodwill
Goodwill and n
egative goodwill arose on acquisition of
subsidiary undertakings
and
is
written off to the profit and loss account in the year of acquisition.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
4 to 5 years
Licences
5 years
1.7
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
10% - 33% straight line
Tank containers
5% - 6.67% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the
profit and loss account
.
1.8
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit or loss.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 17
1.9
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible
and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 18
1.11
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's
balance sheet
when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
m
ethod.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price
and subsequently are carried at amortised cost. Financial liabilities are derecognised when the contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 19
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss
so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
d
asset are consumed.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 20
1.16
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.18
The company accrues for all reasonably expected sales related costs for which no invoice has been received at the time that income is recognised. These accruals are reviewed continually and any variance on the accrued amount versus the actual costs received is written off upon closure of the related job file.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 21
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Amortisation charge
The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 1
3
for the carrying amount of the intangible assets and note 1.5 and 1.6 for the useful economic lives for each class of asset.
Depreciation charge
The annual depreciation charge for property, plant and equipment 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, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 1
4
for the carrying amount of the property, plant and equipment and note 1.7 for the useful economic lives for each class of asset.
Provisions for bad debts
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the ageing profile of debtors
, knowledge of customer performance
and historical experience. See note
18
for the net carrying amount of the debtors and associated impairment provision.
Accrued job costs
The company makes an estimate of the costs to which it is committed for jobs that are open and ongoing at the year end. When assessing the costs to accrue, management considers various factors including historical experience, budgets, knowledge of regional factors and changes in the marketplace. These estimates are included in accruals at the year end, see note 19.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 22
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Tank operating revenue
113,492,203
69,474,675
Costs recovered
66,606
129,484
113,558,809
69,604,159
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
6,480,760
5,379,079
Europe
18,805,953
12,025,972
Rest of World
88,272,096
52,199,108
113,558,809
69,604,159
2021
2020
£
£
Other significant revenue
Interest income
1,702
6,036
Grants received
283,596
373,521
Management fees receivable
36,768
36,768
Sales commission
955
29,434
4
Operating profit
2021
2020
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
1,452,347
(127,492)
Government grants
(283,596)
(373,521)
Depreciation of owned tangible fixed assets
157,241
153,947
Depreciation of tangible fixed assets held under finance leases
943,442
698,519
Profit on disposal of tangible fixed assets
(8,341)
(4,605)
Amortisation of intangible assets
78,676
121,509
Release of negative goodwill
-
827
Operating lease charges
1,086,934
1,309,557
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £1,452,347 (2020 - £127,492).
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 23
5
Auditors' remuneration
2021
2020
Fees payable to the company's auditor and its associates:
£
£
For audit services
Audit of the financial statements of the group and company
45,300
26,445
Audit of the company's subsidiaries
22,295
16,168
67,595
42,613
For other services
All other non-audit services
7,649
6,892
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2021
2020
2021
2020
Number
Number
Number
Number
All employees
179
133
45
42
Their aggregate remuneration comprised:
Group
Company
2021
2020
2021
2020
£
£
£
£
Wages and salaries
8,574,141
6,233,031
2,415,477
1,676,749
Social security costs
728,202
475,736
263,263
175,985
Pension costs
134,760
104,731
68,709
48,095
9,437,103
6,813,498
2,747,449
1,900,829
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 24
7
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
380,766
311,488
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
219,096
181,670
8
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
1,702
1,500
Other interest income
-
4,536
Total income
1,702
6,036
9
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,444
711
Interest on finance leases and hire purchase contracts
715,616
628,444
717,060
629,155
10
Fair value gains and losses
2021
2020
£
£
Gain on disposal of fixed asset investments
-
33,976
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 25
11
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
1,031
2,118
Foreign current tax on profits for the current period
95,540
37,427
Total current tax
96,571
39,545
Deferred tax
Origination and reversal of timing differences
1,020,271
225,336
Total tax charge
1,116,842
264,881
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
8,276,305
1,842,978
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
1,572,498
350,166
Tax effect of expenses that are not deductible in determining taxable profit
2,124
194
Tax effect of income not taxable in determining taxable profit
(3,002)
(11,595)
Unutilised tax losses carried forward
21,590
Permanent capital allowances in excess of depreciation
(267,843)
(128)
Effect of overseas tax rates
(11,004)
(11,438)
Tax losses utilised
(194,493)
(53,966)
Other adjustments
(3,028)
(8,352)
Tax expense for the year
1,116,842
264,881
The company has estimated tax losses carried forward of £
nil
(2020: £977,795) at the year end available for offset against future trading profits.
12
Dividends
2021
2020
£
£
Final paid
302,000
64,000
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 26
13
Intangible fixed assets
Group
Goodwill
Negative goodwill
Software
Licences
Total
£
£
£
£
£
Cost
At 1 January 2021
25,829
(22,310)
378,196
206,150
587,865
Additions
7,347
26,307
33,654
At 31 December 2021
25,829
(22,310)
385,543
232,457
621,519
Amortisation and impairment
At 1 January 2021
25,829
(22,310)
222,746
138,088
364,353
Amortisation charged for the year
42,944
35,732
78,676
At 31 December 2021
25,829
(22,310)
265,690
173,820
443,029
Carrying amount
At 31 December 2021
119,853
58,637
178,490
At 31 December 2020
155,450
68,062
223,512
Company
Software
Licences
Total
£
£
£
Cost
At 1 January 2021
378,196
206,150
584,346
Additions
26,307
26,307
At 31 December 2021
378,196
232,457
610,653
Amortisation and impairment
At 1 January 2021
222,746
138,088
360,834
Amortisation charged for the year
41,729
35,732
77,461
At 31 December 2021
264,475
173,820
438,295
Carrying amount
At 31 December 2021
113,721
58,637
172,358
At 31 December 2020
155,450
68,062
223,512
Negative goodwill arose on acquisition of the purchase of M & S Logistics BV.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 27
14
Tangible fixed assets
Group
Fixtures, fittings & equipment
Tank containers
Total
£
£
£
Cost
At 1 January 2021
342,810
18,805,450
19,148,260
Additions
132,475
4,898,239
5,030,714
Disposals
(36,251)
(11,175)
(47,426)
At 31 December 2021
439,034
23,692,514
24,131,548
Depreciation and impairment
At 1 January 2021
244,326
3,229,616
3,473,942
Depreciation charged in the year
60,790
1,039,893
1,100,683
Eliminated in respect of disposals
(36,120)
(4,191)
(40,311)
At 31 December 2021
268,996
4,265,318
4,534,314
Carrying amount
At 31 December 2021
170,038
19,427,196
19,597,234
At 31 December 2020
98,484
15,575,834
15,674,318
Company
Fixtures, fittings & equipment
Tank containers
Total
£
£
£
Cost
At 1 January 2021
200,978
18,805,450
19,006,428
Additions
57,777
4,898,239
4,956,016
Disposals
(36,251)
(11,175)
(47,426)
At 31 December 2021
222,504
23,692,514
23,915,018
Depreciation and impairment
At 1 January 2021
144,059
3,229,616
3,373,675
Depreciation charged in the year
35,058
1,039,893
1,074,951
Eliminated in respect of disposals
(36,120)
(4,191)
(40,311)
At 31 December 2021
142,997
4,265,318
4,408,315
Carrying amount
At 31 December 2021
79,507
19,427,196
19,506,703
At 31 December 2020
56,919
15,575,834
15,632,753
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
14
Tangible fixed assets
(Continued)
Page 28
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
The depreciation charge in respect of such assets amounted
to £
943,442
(
2020
: £698,519) for the year.
Group
Company
2021
2020
2021
2020
£
£
£
£
Tank containers
16,429,667
14,228,252
16,429,667
14,228,252
15
Fixed asset investments
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Investments in subsidiaries
16
739,480
483,005
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2021
483,005
Additions
256,475
At 31 December 2021
739,480
Carrying amount
At 31 December 2021
739,480
At 31 December 2020
483,005
The investments in subsidiaries are all stated at cost.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 29
16
Subsidiaries
Details of the company's subsidiaries at 31 December 2021 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
M & S Logistic (Shanghai) Co Ltd
a
Tank container operator
Ordinary
100.00
-
M & S Logistics BV
b
Tank container operator
Ordinary
100.00
-
M & S Logistics LLC
c
Tank container operator
Ordinary
100.00
-
M & S Logistics Pte Ltd
d
Tank container operator
Ordinary
100.00
-
Multistar Leasing Limited
e
Tank container hire and managment
Ordinary
100.00
-
M & S Logistics France SAS
f
Tank container operator
Ordinary
100.00
-
M & S Tank Logistics (Pty) Limited
g
Tank container operator
Ordinary
100.00
-
M & S Logistics Do Brasil Organizacao Logistica De Transporte De Carga Ltda
h
Tank container operator
Ordinary
100.00
-
M&S Logistics Co. LLC
i
Tank container operator
Ordinary
100.00
-
M&S Logistics (TH) Company Limited
j
Tank container operator
Ordinary
98.00
2.00
MS Tank Logistics Private Ltd
k
Tank container operator
Ordinary
99.99
-
M&S Logistics Korea Ltd
l
Tank container operator
Ordinary
100.00
-
Registered office addresses:
a
Room 909, 9th Floor, One Prime No.1361, North Sichuan Road, Hongkou District, Shanghai, 200080, China
b
Alexander Bellstraat 16, 3261 LX Oud-Beijerland, Netherlands
c
9307 Broadway Street, Suite 407, Pearland Texas 77584-9767, USA
d
200 Cantonment Road, 13-07 Southpoint, Singapore 089763, Singapore
e
Hope Street Chapel, Hope Street, Sandbach, Cheshire, CW11 1BA, UK
f
59 rue La Boétie, 75008 Paris, France
g
1st Floor 19 Louis Gradner Street, Foreshore, Cape Town 8000, South Africa
h
Av Antonio Artioli 670, Swiss Park, CEP 13049-263, Campinas, Brazil
i
19th Floor, Office no: 1908 Fahidi Heights - Office Tower, (Formerly Al Mussalla Tower), UAE
j
Unit 1803, 18th Floor Liberty Square Building 287 Silom Road, Silom, Bangrak, Bangkok 10500, Thailand
k
Pl No.E 1407 Bandra West, 301 Delux Court Premises, R V Bambardekar Rd, Mumbai, Maharashtra 400050, India
l
19 Saemunan-ro 5-gil, Jongno-gu, Seoul, Republic of Korea
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 30
17
Financial instruments
Group
Company
2021
2020
2021
2020
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
25,005,059
15,803,948
23,748,992
16,750,844
Equity instruments measured at cost less impairment
-
-
739,480
483,005
Carrying amount of financial liabilities
Measured at amortised cost
40,962,478
31,432,252
39,964,353
32,152,948
18
Debtors
Group
Company
2021
2020
2021
2020
Amounts falling due within one year:
£
£
£
£
Trade debtors
24,455,525
15,447,986
22,591,213
14,217,682
Corporation tax recoverable
116,408
81,825
Amounts due from group undertakings
492
25,095
641,590
892,924
Other debtors
561,026
351,836
596,476
1,691,920
Prepayments and accrued income
1,911,700
1,071,729
1,749,649
921,181
27,045,151
16,896,646
25,660,753
17,723,707
Amounts falling due after more than one year:
Deferred tax asset (note 24)
6,879
6,521
Total debtors
27,052,030
16,903,167
25,660,753
17,723,707
Trade debtors are shown net of provisions for bad debts of for the group of £482,368 (2020: £335,256) and for the company of £481,430 (2020: £333,579).
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 31
19
Creditors: amounts falling due within one year
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Obligations under finance leases
22
3,245,266
2,682,996
3,241,597
2,682,996
Trade creditors
6,767,297
5,988,396
5,155,442
5,449,501
Amounts owed to group undertakings
6,977,615
7,161,834
7,977,196
8,670,730
Corporation tax payable
53,806
12,740
Other taxation and social security
186,302
104,628
-
-
Other creditors
264,382
154,679
1,941
Accruals and deferred income
16,598,741
8,704,928
16,504,039
8,635,231
34,093,409
24,810,201
32,878,274
25,440,399
20
Creditors: amounts falling due after more than one year
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Obligations under finance leases
22
7,252,079
6,712,549
7,252,079
6,712,549
Other borrowings
21
23,098
26,870
7,275,177
6,739,419
7,252,079
6,712,549
21
Loans and overdrafts
Group
Company
2021
2020
2021
2020
£
£
£
£
Preference shares
23,098
26,870
Payable after one year
23,098
26,870
The preference shares are repayable on winding up at an amount equal to the capital value invested. The preference shareholder is entitled to an annual dividend of THB 1 = £0.02 per 100 shares per annum which totals THB 102 = £2.
31
when sufficient profits are made by M&S Logistics (TH) Company Limited.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 32
22
Finance lease obligations
Group
Company
2021
2020
2021
2020
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
3,245,266
2,682,996
3,241,597
2,682,996
In two to five years
7,190,410
6,505,022
7,190,410
6,505,022
In over five years
61,669
207,527
61,669
207,527
10,497,345
9,395,545
10,493,676
9,395,545
Net obligations under finance lease and hire purchase contracts relate to the financing of tank containers. These loans are secured by fixed charges over the assets concerned.
23
Provisions for liabilities
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Deferred tax liabilities
24
2,214,058
1,192,972
2,214,058
1,192,972
24
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and movements thereon:
Liabilities
Liabilities
Assets
Assets
2021
2020
2021
2020
Group
£
£
£
£
Accelerated Capital Allowances
2,214,058
1,192,972
-
-
Provision
-
-
6,879
6,521
2,214,058
1,192,972
6,879
6,521
Liabilities
Liabilities
Assets
Assets
2021
2020
2021
2020
Company
£
£
£
£
Accelerated Capital Allowances
2,214,058
1,192,972
-
-
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
24
Deferred taxation
(Continued)
Page 33
Group
Company
2021
2021
Movements in the year:
£
£
Liability at 1 January 2021
1,186,451
1,192,972
Charge to profit or loss
1,020,271
1,021,086
Foreign exchange movement
457
-
Liability at 31 December 2021
2,207,179
2,214,058
T
he deferred tax liability
set out above
is expected to reverse
in future accounting periods
and relates to accelerated capital allowances
.
25
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
134,760
104,731
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
26
Share capital
Group and company
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 50p each
200
200
100
100
27
Reserves
Other reserves
Other reserves relate to currency translation differences on overseas subsidiaries.
Profit and loss reserves
The profit and loss reserves which is an accumulation of profits or losses over time across the group and parent company.
28
Capital commitments
At 31 December 20
21
, the company was committed to purchasing 1
00
tanks at $1
8,500
each, which at the balance sheet closing exchange rate equated to £
1,399,924
.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 34
29
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2021
2020
2021
2020
£
£
£
£
Within one year
1,042,931
736,632
711,722
440,807
Between two and five years
2,426,294
866,210
1,856,822
227,425
3,469,225
1,602,842
2,568,544
668,232
30
Directors' transactions
Group
The group related party relationships and transactions are same as those for the company which have been disclosed.
Dividends to directors
Dividends totalling £
135,900
(2020: £28,800) were paid in the year in respect of shares held by the company's directors.
Transactions with directors
At the year end, there is an amount of £
nil
(20
20
: £2,900) owed to the company by J. Risbridger, who was a director
for part
of the year
.
At the year end, there is an amount of £
nil
(2020: £2,709) owed by the company to W. Gill, who was a director
for part
of the year.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 35
31
Related party transactions
Group
The group takes advantage of the exemption available in FRS 102 whereby it has not disclosed transactions with any wholly owned subsidiary undertaking disclosed in note 16.
The following companies are related parties as they are all fellow subsidiaries of Sterlingwood Limited: Multistar Container Transport Limited, Multistar Container Transport (Pty) Limited
,
Multistar Tank Leasing Company LLC
and Islanmore Estates (Pty) Limited.
Transactions and balances with these companies are as follows:
Multistar Container Transport Limited:
During the year, a management charge was invoiced by the group in respect of employment and administration costs incurred on behalf of Multistar Container Transport Limited of £
45,062
(2020: £111,816). In addition, purchases of £
5,463,019
(2020: £5,049,669) were made from Multistar Container Transport Limited. All transactions occurred at market rate. At the year end, there is a net amount due to Multistar Container Transport Limited of £
6,783,611
(2020: £6,781,916).
Multistar Tank Leasing Company LLC:
An administration fee of £
44,125
(2020: £46,996) was paid to Multistar Tank Leasing Company LLC during the year. At the year end, there is an amount due to Multistar Tank Leasing Company LLC of £
28,002
(2020: £71,166).
Multistar Container Transport (Pty) Limited::
At the year end, there is an amount owed by Multistar Container Transport Transport Pty Limited of £15,925 (2020: £nil).
Islanmore Estates (Pty) Limited:
An administration fee of £21,733 (2020: 8,098) was paid to Islanmore Estates (Pty) Limited during the year. At the year end, there is an amount due to Islanmore Estates (Pty) Limited of £59,609 (2020: £nil).
Sterlingwood Limited, the parent company:
At the year end, there is a net amount due
to
Sterlingwood Limited of £1
66,0
00 (2020:
due from:
£100).
Transactions with other related parties are as follows:
M & S Shipping (Pty) Ltd, a company related by virtue of significant influence:
Sales amounting to £
nil
(2020: £930,477) were made and purchases amounting to £
nil
(2020: £618,547) which include an office retainer charge of £
nil
(2020: £537,554) were made during the year. At the year end, there is a net amount owed by M & S Shipping (Pty) of £
1,482,221
(2020: £
1,478,686
).
Embado Limited, a company related by virtue of control by a close family member:
Purchases amounting to
£
19,413
(2020:
£
3,235
) were made during the year.
Tangreen Commodities Limited
, a company under common
directorship
:
During the year,
sales
of
£
269,259
(2020:
£
211,924
)
were made
to
Tangreen Commodities Limited
.
At the year end,
there is an amount
owed
by Tangreen Commodities Limited of £
727,096
(2020:
£
285,854).
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
31
Related party transactions
(Continued)
Page 36
Company
The company takes advantage of the exemption available in FRS 102 whereby it has not disclosed transactions with any wholly owned subsidiary undertaking disclosed in note 16.
The following companies are related parties as they are all fellow subsidiaries of Sterlingwood Limited: Multistar Container Transport Limited.
Transactions and balances with these companies are as follows:
Multistar Container Transport Limited:
During the year, a management charge was invoiced by the company in respect of employment and administration costs incurred on behalf of Multistar Container Transport Limited of £45,062 (2020: £49,220). At the year end, there is a net amount due from Multistar Container Transport Limited of £nil (2020: £21,374).
Sterlingwood Limited, the parent company:
At the year end, there is a net amount due to Sterlingwood Limited of £166,000 (2020: due from £100).
Transactions with other related parties are as follows:
M & S Shipping (Pty) Ltd, a company related by virtue of significant influence:
Purchases amounting to £74,888 (2020: £618,547) which include an office retainer charge of £nil (2020: £537,554) were made during the year. At the year end, there is a net amount owed by M & S Shipping (Pty) of £1,654,480 (2020: £1,629,113).
Embado Limited, a company related by virtue of control by a close family member:
Purchases amounting to £19,413 (2020: £3,235) were made during the year.
Tangreen Commodities Limited, a company under common directorship:
During the year, sales of £269,259 (2020: £211,924) were made to Tangreen Commodities Limited. At the year end, there is an amount owed by Tangreen Commodities Limited of £727,096 (2020: £285,854).
32
Controlling party
The immediate and ultimate parent company is Sterlingwood Limited, a company registered in the British Virgin Islands and does not prepare group financial statements.
The ultimate controlling party is the Quinn Trust which owns 100% of the share capital of Sterlingwood Limited.
M & S Logistics Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 37
33
Cash generated from group operations
2021
2020
£
£
Profit for the year after tax
7,159,463
1,578,097
Adjustments for:
Share of results of associates and joint ventures
-
713
Taxation charged
1,116,842
264,881
Finance costs
717,060
629,155
Investment income
(1,702)
(6,036)
Gain on disposal of tangible fixed assets
(8,341)
(4,605)
Amortisation and impairment of intangible assets
78,676
121,509
Depreciation and impairment of tangible fixed assets
1,100,683
852,466
Foreign exchange gains on cash equivalents
299,176
(689,651)
Gain on sale of investments
-
(33,976)
Movements in working capital:
(Increase) in debtors
(10,032,097)
(2,216,780)
Increase in creditors
8,679,872
2,397,047
Cash generated from operations
9,109,632
2,892,820
34
Analysis of changes in net debt - group
1 January 2021
Cash flows
New finance leases
Exchange rate movements
31 December 2021
£
£
£
£
£
Cash at bank and in hand
4,109,652
3,794,142
-
(104,760)
7,799,034
Borrowings excluding overdrafts
(26,870)
-
-
3,772
(23,098)
Obligations under finance leases
(9,395,545)
2,452,987
(3,375,681)
(179,106)
(10,497,345)
(5,312,763)
6,247,129
(3,375,681)
(280,094)
(2,721,409)
2021-12-31
2021-01-01
false
CCH Software
CCH Accounts Production 2022.100
J. J. Risbridger
J. J. Risbridger
D. R. Kew
W. Gill
D. R. Kew
03597897
2021-01-01
2021-12-31
03597897
bus:Director5
2021-01-01
2021-12-31
03597897
bus:Director6
2021-01-01
2021-12-31
03597897
bus:Director7
2021-01-01
2021-12-31
03597897
bus:Director2
2021-01-01
2021-12-31
03597897
bus:Director4
2021-01-01
2021-12-31
03597897
bus:Director1
2021-01-01
2021-12-31
03597897
bus:Director3
2021-01-01
2021-12-31
03597897
bus:RegisteredOffice
2021-01-01
2021-12-31
03597897
core:CapitalRedemptionReserve
core:RestatedAmount
2019-12-31
03597897
core:OtherMiscellaneousReserve
core:RestatedAmount
2019-12-31
03597897
core:ShareCapital
bus:Consolidated
2021-12-31
03597897
core:ShareCapital
bus:Consolidated
2020-12-31
03597897
core:ShareCapital
2021-12-31
03597897
core:ShareCapital
2020-12-31
03597897
core:OtherMiscellaneousReserve
bus:Consolidated
2021-12-31
03597897
core:OtherMiscellaneousReserve
bus:Consolidated
2020-12-31
03597897
core:OtherMiscellaneousReserve
2021-12-31
03597897
core:OtherMiscellaneousReserve
2020-12-31
03597897
2021-12-31
03597897
bus:Consolidated
2021-12-31
03597897
bus:Consolidated
2021-01-01
2021-12-31
03597897
bus:Consolidated
2020-01-01
2020-12-31
03597897
2020-01-01
2020-12-31
03597897
bus:Consolidated
2020-12-31
03597897
2020-12-31
03597897
core:FurnitureFittings
bus:Consolidated
2021-12-31
03597897
core:MotorVehicles
bus:Consolidated
2021-12-31
03597897
core:FurnitureFittings
bus:Consolidated
2020-12-31
03597897
core:MotorVehicles
bus:Consolidated
2020-12-31
03597897
core:FurnitureFittings
2021-12-31
03597897
core:MotorVehicles
2021-12-31
03597897
core:FurnitureFittings
2020-12-31
03597897
core:MotorVehicles
2020-12-31
03597897
bus:Consolidated
2019-12-31
03597897
core:Goodwill
2021-01-01
2021-12-31
03597897
core:IntangibleAssetsOtherThanGoodwill
2021-01-01
2021-12-31
03597897
core:FurnitureFittings
2021-01-01
2021-12-31
03597897
core:MotorVehicles
2021-01-01
2021-12-31
03597897
core:OwnedAssets
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:OwnedAssets
bus:Consolidated
2020-01-01
2020-12-31
03597897
core:LeasedAssets
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:LeasedAssets
bus:Consolidated
2020-01-01
2020-12-31
03597897
core:NetGoodwill
2020-12-31
03597897
core:Goodwill
bus:Consolidated
2021-12-31
03597897
core:NegativeGoodwill
bus:Consolidated
2021-12-31
03597897
core:ComputerSoftware
bus:Consolidated
2021-12-31
03597897
core:PatentsTrademarksLicencesConcessionsSimilar
bus:Consolidated
2021-12-31
03597897
core:Goodwill
bus:Consolidated
2020-12-31
03597897
core:NegativeGoodwill
bus:Consolidated
2020-12-31
03597897
core:ComputerSoftware
bus:Consolidated
2020-12-31
03597897
core:PatentsTrademarksLicencesConcessionsSimilar
bus:Consolidated
2020-12-31
03597897
core:ComputerSoftware
2021-12-31
03597897
core:PatentsTrademarksLicencesConcessionsSimilar
2021-12-31
03597897
core:ComputerSoftware
2020-12-31
03597897
core:PatentsTrademarksLicencesConcessionsSimilar
2020-12-31
03597897
core:UKTax
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:UKTax
bus:Consolidated
2020-01-01
2020-12-31
03597897
core:ForeignTax
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:ForeignTax
bus:Consolidated
2020-01-01
2020-12-31
03597897
bus:Consolidated
1
2021-01-01
2021-12-31
03597897
bus:Consolidated
1
2020-01-01
2020-12-31
03597897
bus:Consolidated
2
2021-01-01
2021-12-31
03597897
bus:Consolidated
2
2020-01-01
2020-12-31
03597897
core:Goodwill
bus:Consolidated
2020-12-31
03597897
core:NegativeGoodwill
bus:Consolidated
2020-12-31
03597897
core:ComputerSoftware
bus:Consolidated
2020-12-31
03597897
core:PatentsTrademarksLicencesConcessionsSimilar
bus:Consolidated
2020-12-31
03597897
bus:Consolidated
2020-12-31
03597897
core:ComputerSoftware
2020-12-31
03597897
core:PatentsTrademarksLicencesConcessionsSimilar
2020-12-31
03597897
2020-12-31
03597897
core:Goodwill
core:ExternallyAcquiredIntangibleAssets
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:NegativeGoodwill
core:ExternallyAcquiredIntangibleAssets
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:ComputerSoftware
core:ExternallyAcquiredIntangibleAssets
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:PatentsTrademarksLicencesConcessionsSimilar
core:ExternallyAcquiredIntangibleAssets
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:ExternallyAcquiredIntangibleAssets
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:ComputerSoftware
core:ExternallyAcquiredIntangibleAssets
2021-01-01
2021-12-31
03597897
core:PatentsTrademarksLicencesConcessionsSimilar
core:ExternallyAcquiredIntangibleAssets
2021-01-01
2021-12-31
03597897
core:ExternallyAcquiredIntangibleAssets
2021-01-01
2021-12-31
03597897
core:Goodwill
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:NegativeGoodwill
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:ComputerSoftware
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:PatentsTrademarksLicencesConcessionsSimilar
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:ComputerSoftware
2021-01-01
2021-12-31
03597897
core:PatentsTrademarksLicencesConcessionsSimilar
2021-01-01
2021-12-31
03597897
core:FurnitureFittings
bus:Consolidated
2020-12-31
03597897
core:MotorVehicles
bus:Consolidated
2020-12-31
03597897
core:FurnitureFittings
2020-12-31
03597897
core:MotorVehicles
2020-12-31
03597897
core:FurnitureFittings
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:MotorVehicles
bus:Consolidated
2021-01-01
2021-12-31
03597897
core:Subsidiary1
2021-01-01
2021-12-31
03597897
core:Subsidiary2
2021-01-01
2021-12-31
03597897
core:Subsidiary3
2021-01-01
2021-12-31
03597897
core:Subsidiary4
2021-01-01
2021-12-31
03597897
core:Subsidiary5
2021-01-01
2021-12-31
03597897
core:Subsidiary6
2021-01-01
2021-12-31
03597897
core:Subsidiary7
2021-01-01
2021-12-31
03597897
core:Subsidiary8
2021-01-01
2021-12-31
03597897
core:Subsidiary9
2021-01-01
2021-12-31
03597897
core:Subsidiary10
2021-01-01
2021-12-31
03597897
core:Subsidiary11
2021-01-01
2021-12-31
03597897
core:Subsidiary12
2021-01-01
2021-12-31
03597897
core:Subsidiary1
1
2021-01-01
2021-12-31
03597897
core:Subsidiary2
2
2021-01-01
2021-12-31
03597897
core:Subsidiary3
3
2021-01-01
2021-12-31
03597897
core:Subsidiary4
4
2021-01-01
2021-12-31
03597897
core:Subsidiary5
5
2021-01-01
2021-12-31
03597897
core:Subsidiary6
6
2021-01-01
2021-12-31
03597897
core:Subsidiary7
7
2021-01-01
2021-12-31
03597897
core:Subsidiary8
8
2021-01-01
2021-12-31
03597897
core:Subsidiary9
9
2021-01-01
2021-12-31
03597897
core:Subsidiary10
10
2021-01-01
2021-12-31
03597897
core:Subsidiary11
11
2021-01-01
2021-12-31
03597897
core:Subsidiary12
12
2021-01-01
2021-12-31
03597897
core:CurrentFinancialInstruments
2021-12-31
03597897
core:CurrentFinancialInstruments
2020-12-31
03597897
core:CurrentFinancialInstruments
bus:Consolidated
2021-12-31
03597897
core:CurrentFinancialInstruments
bus:Consolidated
2020-12-31
03597897
core:Non-currentFinancialInstruments
bus:Consolidated
2021-12-31
03597897
core:Non-currentFinancialInstruments
bus:Consolidated
2020-12-31
03597897
core:Non-currentFinancialInstruments
2021-12-31
03597897
core:Non-currentFinancialInstruments
2020-12-31
03597897
core:CurrentFinancialInstruments
core:WithinOneYear
bus:Consolidated
2021-12-31
03597897
core:CurrentFinancialInstruments
core:WithinOneYear
bus:Consolidated
2020-12-31
03597897
core:CurrentFinancialInstruments
core:WithinOneYear
2021-12-31
03597897
core:CurrentFinancialInstruments
core:WithinOneYear
2020-12-31
03597897
core:Non-currentFinancialInstruments
core:AfterOneYear
bus:Consolidated
2021-12-31
03597897
core:Non-currentFinancialInstruments
core:AfterOneYear
bus:Consolidated
2020-12-31
03597897
core:Non-currentFinancialInstruments
core:AfterOneYear
2021-12-31
03597897
core:Non-currentFinancialInstruments
core:AfterOneYear
2020-12-31
03597897
core:WithinOneYear
bus:Consolidated
2021-12-31
03597897
core:WithinOneYear
bus:Consolidated
2020-12-31
03597897
core:WithinOneYear
2021-12-31
03597897
core:WithinOneYear
2020-12-31
03597897
core:BetweenTwoFiveYears
bus:Consolidated
2021-12-31
03597897
core:BetweenTwoFiveYears
bus:Consolidated
2020-12-31
03597897
core:BetweenTwoFiveYears
2021-12-31
03597897
core:BetweenTwoFiveYears
2020-12-31
03597897
core:MoreThanFiveYears
bus:Consolidated
2021-12-31
03597897
core:MoreThanFiveYears
bus:Consolidated
2020-12-31
03597897
core:MoreThanFiveYears
2021-12-31
03597897
core:MoreThanFiveYears
2020-12-31
03597897
bus:PrivateLimitedCompanyLtd
2021-01-01
2021-12-31
03597897
bus:FRS102
2021-01-01
2021-12-31
03597897
bus:Audited
2021-01-01
2021-12-31
03597897
bus:ConsolidatedGroupCompanyAccounts
2021-01-01
2021-12-31
03597897
bus:FullAccounts
2021-01-01
2021-12-31
xbrli:pure
xbrli:shares
iso4217:GBP