Norbulk Shipping U.K. Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01675237

NORBULK SHIPPING U.K. LIMITED

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2020

Page

Balance Sheet

1

Notes to the Financial Statements

2

FIXED ASSETS

Tangible assets

4

578,323

528,729

Investments

5

999

1,001

579,322

529,730

CURRENT ASSETS

Debtors

6

1,328,420

1,352,013

Cash at bank and in hand

235,660

77,936

1,564,080

1,429,949

CREDITORS

Amounts falling due within one year

7

379,558

239,407

NET CURRENT ASSETS

1,184,522

1,190,542

TOTAL ASSETS LESS CURRENT LIABILITIES

1,763,844

1,720,272

PROVISIONS FOR LIABILITIES

(15,843

)

(5,423

)

PENSION LIABILITY

11

(1,468,000

)

-

NET ASSETS

280,001

1,714,849

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Retained earnings

279,001

1,713,849

SHAREHOLDERS' FUNDS

280,001

1,714,849

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 30 April 2021 and were signed on its behalf by:

Peter Jan Karlsen - Director

1.	STATUTORY INFORMATION

Norbulk Shipping U.K. Limited is a private company, limited by shares, incorporated and registered in England and Wales. The company's registered office is Artillery House, 35 Artillery Lane, London, E1 7LP.

The financial statements are presented in Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of 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. There were no material departures from this standard.

Going Concern

The financial statements have been prepared on a going concern basis notwithstanding the impact of the Covid-19 pandemic, which on initial assessment is considered limited as the vessels managed under contract continued to operate. The company has sufficient net current assets to meet obligations as they fall due, therefore the directors have concluded that it is appropriate to prepare the financial statements on a going concern basis.

Preparation of consolidated financial statements

The financial statements contain information about Norbulk Shipping U.K. Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. The directors consider there are no such significant judgements

Turnover

Turnover represents recharged expenses marked up. The company's policy is to recognise the income relating to recharged expenses in the period to which they relate. The recharge expenses are in relation to providing crew management to a variety of ships.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Land and buildings

-

2% on cost

Plant and machinery etc

-

33.3% on cost and 15% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Government grants

Government grants of a capital nature are taken to a separate deferred income account and released to the profit and loss account in accordance with the company's depreciation policy over the useful economic life of the asset concerned. Grants of a revenue nature are taken to the profit and loss account in the year in which the expenditure is incurred.

Government grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.

Grants related to the purchase of assets are recognised on a systematic basis over the useful economic life of the underlying assets acquired with the grant.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans to and from related parties and investments in non-puttable ordinary shares.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured: at fair value with changes recognised in profit and loss if the shares are publicly traded or their fair value can be measured reliably or at cost less impairment for all other investments.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Cash and cash equivalents includes cash at banks and in hand.

Taxation

Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred taxation is measured on a non-discounted basis at the average tax rates that would apply when the timing differences are expected to reverse, based on tax rates and laws that have been enacted by the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date.

All transfers between foreign currency bank accounts are reflected in the accounts at the average monthly rates applicable to the date of transfer. Where this policy results in an exchange gain or loss on the transaction, this has been taken to the profit and loss account.

Pension costs and other post-retirement benefits

The company operates a closed defined benefit scheme for employees. The assets of the scheme are held separately from those of the company. The contributions to the scheme are charged to the profit and loss account so as to spread the cost of pensions over the service life of employees. Variations from the regular cost are spread over the average expected remaining working lives of the current members of the scheme.

Since 1996 the company has also operated a defined contribution pension scheme in respect of all new employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Operating lease commitments

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 57 (2019 - 58 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 May 2019

631,652

1,052,115

1,683,767

Additions

-

95,746

95,746

At 30 April 2020

631,652

1,147,861

1,779,513

DEPRECIATION

At 1 May 2019

138,590

1,016,448

1,155,038

Charge for year

5,133

41,019

46,152

At 30 April 2020

143,723

1,057,467

1,201,190

NET BOOK VALUE

At 30 April 2020

487,929

90,394

578,323

At 30 April 2019

493,062

35,667

528,729

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 May 2019

28,226

Disposals

(2

)

At 30 April 2020

28,224

PROVISIONS

At 1 May 2019

and 30 April 2020

27,225

NET BOOK VALUE

At 30 April 2020

999

At 30 April 2019

1,001

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Amounts owed by group undertakings

1,001,494

1,037,918

Other debtors

326,926

314,095

1,328,420

1,352,013

There are no repayment terms attached to the amounts owed by group undertakings, however, it is not expected the balances will be repaid in full within 12 months of the year end. The group company balances are expected to reduce each year through intercompany payments.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

29,914

46,047

Amounts owed to group undertakings

2,632

3,073

Taxation and social security

93,904

112,880

Other creditors

253,108

77,407

379,558

239,407

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020

2019

£

£

Between one and five years

37,102

58,596

9.	SECURED DEBTS

The Glasgow City Heritage Trust holds a standard security over the company and all of its assets in respect of a grant received.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

We draw your attention to note 6 in the financial statements which describes the repayment basis of intercompany debtors. Our opinion is not modified in this respect.

Elaine Dyer BA CA (Senior Statutory Auditor)

for and on behalf of Martin Aitken & Co Ltd

11.	EMPLOYEE BENEFIT OBLIGATIONS

The company operates a closed defined benefit pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. A full actuarial valuation was carried out at 31 December 2018 and has been updated to 30 April 2020 by a qualified actuary, independent of Norbulk Shipping U.K. Limited.

The actuarial valuation at 31 December 2018 showed a deficit of £2,010,000 with the most recent section 28 report at 30 April 2020 disclosing a defined benefit liability of £1,468,000. Notwithstanding the most recent valuation, the company agreed with the trustees of Norbulk Shipping U.K. Limited Pension and Life Assurance Plan to eliminate the deficit over a period ending February 2035 by the payment of annual contribution of £30,806, increasing at 3% per annum.

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 April 2020 and 30 April 2019:

2020

2019

£

£

Walter Woodage

Balance outstanding at start of year

65,246

65,405

Amounts repaid

(31

)

(159

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

65,215

65,246

The loan is interest free and repayable on demand.

13.	RELATED PARTY DISCLOSURES

2020

2019

£

£

Norbulk Shipping Company Limited

706,863

708,366

Caledonian Marine Services Limited

292,666

328,812

Combe Shipping

90,990

39,202

The amounts owed to the company are interest free and have no fixed repayment terms.

14.	FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and to assist with the preparation of the financial statements.

15.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party of Norbulk Shipping U.K. Limited is a discretionary trust.

The parent company is Norbulk Shipping Company Limited, a company registered in 14 Par La Ville Road, Hamilton, Bermuda.