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Seko Logistics Group Limited
Registered number: 08735136
Annual Report
For the year ended 31 December 2021
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SEKO LOGISTICS GROUP LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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SEKO LOGISTICS GROUP LIMITED
CONTENTS
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Independent Auditor's Report
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Consolidated Statement of Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Consolidated Analysis of Net Debt
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Notes to the Financial Statements
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SEKO LOGISTICS GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The directors present their Strategic Report for Seko Logistics Group Limited (the "Company") and its subsidiary undertakings (together referred to as the "Group") for the year ended 31 December 2021.
Principal activity
Seko Logistics Group Limited are the industry's leading provider of customer-focused supply chain management solutions.
Business review and financial key performance indicators
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We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end.
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Company as a whole, these being turnover, gross profit, operating profit and profit before tax.
The directors are pleased with the results for the year ended 31 December 2021, the business adapted well to the challenges and changes in the industry and global supply chain, following Brexit and covid-19. The Company’s focus on retaining our staff during Covid, client retention, gaining new customers and developing and enhancing services to help our clients with post Brexit legislation changes, allowed the company to grow substantially as the lockdowns eased and as competitors struggled to meet post Brexit demands from clients.
The Market price of Ocean containers and Air Freight increased dramatically, and this combined with strong customer retention, wallet share gain from existing clients and new client wins, the business was able to grow revenue by more than £131m (111%) from 2020. The business managed costs effectively and has grown profit before tax to £12.6m which is a 103% increase over 2020.
The Group Strategy continues to be aggressive growth and will continue to invest IT systems, staff retention and investing in further staff to support growth and delivering a high service level for our clients.
The YTD May results of 2022 have continued to be very strong, Revenue YTD May is £125m which is an increase of 69% compared to prior year. Profit before tax at May YTD is £7.8m which is 3.8m (93%) increase on prior year.
The Company is forecasting to report an annual profit in excess of £17m for full year 2022.
The Company is well positioned for its further expected growth over next 5 years.
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SEKO LOGISTICS GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Principal risks and uncertainties
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The Group’s activities expose it to a variety of financial risks. The Company’s overall risk management therefore seeks to mitigate potential adverse consequences arising from the unpredictability of financial markets.
Competitive pressures as well as the current economic climate present an ongoing risk to the Group. This may result in a reduction in the prices which the Group is able to charge for its services. The Group manages this risk by focusing on customer service delivery, by developing and implementing innovative new services, alongside a greater value-added offering for its key clients. Strong relationships with customers are key to the Group's success.
Market risk
The Group’s sales are primarily denominated in Sterling, although invoices are also issued in US Dollars and Euros. The Group is therefore exposed to the movement in exchange rates on sales and purchases that are denominated in other currencies. This risk is assessed on an ongoing basis. The Group does not use derivative financial instruments to manage currency exposure and, as such, no hedge accounting is applied.
Credit risk
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit checks are performed on all customers requiring credit. The receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. We aim to mitigate liquidity risk by managing cash generation by our operations and applying cash collection targets.
The withdrawal of the United Kingdom from the European Union
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New trading arrangements between the United Kingdom and the European Union took effect on 31 December 2020. In general, tariffs and quotas on trade have not been introduced, although administrative complications and regulatory restrictions have reduced the freedom of cross-border trade. The Company is carefully monitoring the practical application of the new trading arrangements by regulatory authorities, to better understand what the eventual impact on its business will be. The process of determining these effects is ongoing, and has also been delayed by the suspension of certain sectors of economic activity in response to the COVID-19 pandemic.
The COVID-19 pandemic continues to affect the UK and global economies however the recent lifting of social restrictions by the government means the directors anticipate the UK and global economies to return to growth in due course. It is not possible to predict how quickly and to what degree this may happen. The priorities of the directors remain to comply with any remaining regulatory requirements to the fullest extent possible, and to maintain the safety and well-being of the Company's personnel.
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SEKO LOGISTICS GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Section 172(1)(a) to (f) of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders in their decision making, to this effect the board of directors of Seko Logistics Group Limited consider that they have acted in such a way that would be most likely to promote the success of the company for the benefit of its members as a whole.
(a) The likely consequences of any decision in the long-term
The key decisions taken during 2021 related to the ongoing operational management and promotion of the Company. The long-term effect of such decisions is always considered, in order to ensure that the operations of the Company are sustainable into the future.
(b) The interests of the Company’s employees
The Directors consider the employees as one of the key stakeholders within the Group. The Company takes steps to communicate and consult with employees in order to ensure that as far as possible, employees are engaged, involved and informed about decisions which affect them. Decisions taken by the directors to protect and promote the best interests of the company also inherently protect the interests of its employees.
(c) The need to foster the Company’s business relationships with suppliers, customers and others
The Directors recognise that the success of the Company is reliant on the stakeholders of the business and, to this effect, the Company engages with these stakeholder groups, we look to ensure our suppliers have the same core values as the Group and that suppliers adhere to the SEKO Anti-Bribery and Corruption policy as well as the Seko anti-slavery and human trafficking statement, details of which are available on the Company’s website: https://www.sekologistics .com/us/about/resources/
There is a large and diverse customer base, the Group follows client first approach. At SEKO, we place our clients, at the heart of every working day and our employees are focused on delivering service excellence.
(d) The impact of the Company’s operations on the community and environment
The Company is conscious of both its social and environmental impact, and the directors seek opportunities to limit the environmental footprint of the operations of the company wherever this is practically and commercially feasible. The Directors take very seriously their responsibility of ensuring the Group is a good corporate citizen. Business creates wealth that, through taxes, delivers the investment which, if properly managed by politicians, leads to a fairer and more prosperous society. In 2021, the UK Group contributed taxes, within the UK, whether borne by the Group or collected on behalf on HMRC of £39.6m (2020: £53.8m). We are proud of the part we play in our industry’s contribution through its economic activity.
(e) The desirability of the company maintaining a reputation for high standards of business conduct
In order to ensure that the business maintains its reputation and integrity, the board promotes a corporate culture based on sound ethical values and behaviours which are essential to maximise shareholder value. The SEKO code of conduct and Ethics policy, SEKO anti-trust policy and SEKO Anti-Corruption and Foreign Corrupt Practices Act Policy are available on the companies website: https://www.sekologistics .com/us/about/resources/
Seko provide an anonymous hotline, as well as good practice in terms of corporate governance, it also provides employees with a process to raise any suspected wrong doings, misconduct or illegal acts that they have witnessed or become aware of. This reconfirms the Group commitment to promoting the highest possible standards of openness, integrity and accountability across the business.
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SEKO LOGISTICS GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Section 172 statement (continued)
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(f) The need to act fairly as between members of the Company
The Company is wholly owned by Seko Global Logistics Network LLC, and key decisions of the Company are supervised by that shareholder. Information is shared effectively to ensure that the shareholder is engaged.
This report was approved by the board and signed on its behalf by:
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SEKO LOGISTICS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The directors present their annual report and the audited consolidated financial statements for Seko Logistics Group Limited (the 'Company') for the year ended 31 December 2021.
Seko Logistics Group Limited are the industry's leading provider of customer-focused supply chain management solutions.
The profit for the year, after taxation, amounted to £10,307,640 (2020: profit of £5,018,325).
The directors do not recommend the payment of a dividend (2020: £nil).
The directors who served during the year and up to the date of this report were:
Directors' responsibilities statement
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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.
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Company and the Group 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 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.
Seko Logistics Group Limited has provided to all directors limited indemnities in respect of the cost of defending claims against them and third party liabilities. These are all third party indemnity provisions for the purpose of the Companies Act 2006 and are all currently in force.
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SEKO LOGISTICS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Greenhouse gas emissions, energy consumption and energy efficiency action
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Energy consumption used to calculate emissions (kWh)
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Scope 1 emissions in metric tonnes CO2e
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Scope 2 emissions in metric tonnes CO2e
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Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2020 UK Government's Conversion Factors for Company Reporting.
Measures taken to improve energy efficiency
The business did not undertake any energy efficiency activities during the year. However, the Group is mindful of its environmental obligations and will examine opportunities to reduce energy consumption and therefore carbon emissions in the year ahead.
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Matters covered in the Group Strategic Report
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As permitted by paragraph 1A of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulation 2008 certain matters which are required to be disclosed in the Directors’ Report have been omitted as they are included in the Strategic Report. These matters relate to the business review, principal risks and uncertainties and financial key performance indicators.
The results of the Company are set out in the Statement of Comprehensive Income above. The financial position of the Group and Company, its liquidity position and its cash flows are reflected in the Statement of Financial Position.
Potential sources of uncertainty noted by the directors include the withdrawal of the United Kingdom from the European Union, and Coronavirus and the COVID-19 pandemic. The directors have a reasonable expectation that the Group and Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
The Group does not foresee significant changes in trading levels or margins for the foreseeable future.
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SEKO LOGISTICS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Company continues and that the appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware; and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.
Post balance sheet events
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There have been no significant events affecting the Group and Company since the year end.
The auditor, Mazars LLP, 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 by:
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SEKO LOGISTICS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEKO LOGISTICS GROUP LIMITED
Opinion
We have audited the financial statements of Seko Logistics Group Limited (the 'parent Company’) and its subsidiaries (the 'Group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and the Company Statements of Financial Position, the Consolidated and the Company Statements of Changes in Equity, the Consolidated Statement of Cash Flows, the Consolidated Analysis of Net Debt and notes to the financial statements, 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 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 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.
Basis for opinion
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 and the Company 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 and 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.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
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SEKO LOGISTICS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEKO LOGISTICS GROUP LIMITED
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the 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 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 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 Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the 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.
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SEKO LOGISTICS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEKO LOGISTICS GROUP LIMITED
Responsibilities of Directors
As explained more fully in the directors' responsibilities statement set out on page 5, 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 and the 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 intend either to liquidate the Group and the parent Company or to cease operations, or have no realistic alternative but to do so.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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. Based on our understanding of the Group and the Parent Company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.
Based on our understanding of the Group and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, non-compliance with implementation of government support schemes relating to COVID-19.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
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SEKO LOGISTICS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEKO LOGISTICS GROUP LIMITED
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as insert here the direct laws and regulations you identified, being those which have a direct effect on the determination of material amounts and disclosures in the financial statements. This will include the primary law under which the financial statements are prepared (i.e. the law stated in the “Opinion” section of the auditor’s report above and may include other areas such as tax and pension laws and regulations. The following list is for illustrative purposes only and should be tailored carefully to match what is documented on your audit file: tax legislation, pension legislation, the Companies Act 2006.
In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to list the balances/classes of transaction where you identified a fraud risk relating to a significant accounting estimate, revenue recognition (which we pinpointed to the assertion of cut-off), and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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.
Use of the audit report
This report is made solely to the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the company's members as a body for our audit work, for this report, or for the opinions we have formed.
Gerhard Bonthuys (Senior statutory auditor)
for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
2nd Floor
6 Sutton Plaza
Sutton
Surrey
SM1 4FS
30 August 2022
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SEKO LOGISTICS GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
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Interest receivable and similar income
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Interest payable and similar charges
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Profit for the financial year
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Other comprehensive income
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Total comprehensive income for the year
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Profit for the year attributable to:
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Owners of the parent Company
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The Consolidated Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
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The notes on pages 20 to 42 form part of these financial statements.
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SEKO LOGISTICS GROUP LIMITED
REGISTERED NUMBER: 08735136
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Capital redemption reserve
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Equity attributable to owners of the parent Company
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Total shareholders' equity
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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SEKO LOGISTICS GROUP LIMITED
REGISTERED NUMBER: 08735136
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
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Investments in subsidiaries
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Total shareholders' equity
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The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £621,233 (2020: loss of £593,731).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 42 form part of these financial statements.
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SEKO LOGISTICS GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
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Capital redemption reserve
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Equity attributable to owners of parent Company
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Total shareholders' equity
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 20 to 42 form part of these financial statements.
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- 15 -
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|
SEKO LOGISTICS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
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Total shareholders' equity
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Comprehensive loss for the year
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Total comprehensive loss for the year
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Comprehensive loss for the year
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Total comprehensive loss for the year
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The notes on pages 20 to 42 form part of these financial statements.
|
- 16 -
|
|
SEKO LOGISTICS GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
Cash flows from operating activities
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Profit for the financial year
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Amortisation of intangible assets
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Depreciation of tangible assets
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Profit on disposal of tangible assets
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Increase/(decrease) in creditors
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Net cash used in operating activities
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Net cash used in investing activities
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Cash flows from financing activities
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Repayment of finance leases
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Interest paid on finance lease obligations
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Net cash used in financing activities
|
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Net decrease in cash and cash equivalents
|
|
|
- 17 -
|
|
SEKO LOGISTICS GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
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Cash and cash equivalents at beginning of year
|
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
|
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- 18 -
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|
SEKO LOGISTICS GROUP LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2021
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Repayment of finance leases
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The notes on pages 20 to 42 form part of these financial statements.
|
- 19 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Seko Logistics Group Limited (the "Company”) is a private company, limited by shares and incorporated in England and Wales. The address of its registered office is 30 Old Bailey, London, EC4M 7AU and the principal place of business is Minton Place, Victoria Street, Windsor, SL4 1EG.
The principal activity of the Group and Company is that of providing customer-focused supply chain management solutions.
2.Accounting policies
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|
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Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
These financial statements have been presented in Pounds Sterling and are rounded to the nearest pound, as this is the Group and Company’s functional currency, being the currency of the primary economic environment in which the Group and Company operate.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The results of the Company are set out in the Statement of Comprehensive Income above. The financial position of the Group and Company, its liquidity position and its cash flows are reflected in the Statement of Financial Position.
Potential sources of uncertainty noted by the directors include the withdrawal of the United Kingdom from the European Union, and Coronavirus and the COVID-19 pandemic. The directors have a reasonable expectation that the Group and Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
- 20 -
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|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
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|
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Foreign currency translation
|
Functional and presentation currency
The Group and Company's functional and presentational currency is Pounds Sterling.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the date of the transaction.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of Comprehensive Income.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Consolidated Statement of Comprehensive Income within 'cost of sales'.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts for the rendering of services in the normal course of business, net of discounts and other sales-related taxes.
Turnover from freight forwarding services
The provision of freight forwarding services include air freight and sea freight. Turnover is earned when the Group acts as a freight consolidator in respect of air freight services, and as a non-vessel operating common carrier in respect of sea freight services. In both cases, the Group acts as an indirect carrier and therefore revenue is recognised when the services are rendered, which coincide with the date of arrival of shipments (for import freight) and the date of departure of shipments (for export freight).
|
|
|
Interest receivable and similar income
|
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
- 21 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
|
|
|
Current and deferred taxation
|
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
- 22 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
|
|
|
Business combinations and goodwill
|
Business combinations are accounted for by applying the purchase method.
The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination.
Contingent consideration is initially recognised at estimated amount where the consideration is probable and can be measured reliably. Where (i) the contingent consideration is not considered probable or cannot be reliably measured but subsequently becomes probable and measurable or (ii) contingent consideration previously measured is adjusted, the amounts are recognised as an adjustment to the cost of the business combination.
On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Intangible assets are only recognised separately from goodwill where they are separable and arise from contractual or other legal rights. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.
Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the Group’s interest in the identifiable net assets, liabilities and contingent liabilities acquired.
On acquisition, goodwill is allocated to cash-generating units (‘CGU’s’) that are expected to benefit from the combination.
Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. No reversals of impairment are recognised.
- 23 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
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.
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined, which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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 bases:
Amortisation charges for the year is included within 'administrative expenses'.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
- 24 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
|
|
|
Investments in subsidiary undertakings
|
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments are tested for impairment where an indication of impairment exists at the same reporting date.
At each reporting date, the Group reviews the carrying value of its 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.
The recoverable amount of an asset is the higher of fair value less costs to sell and value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. The present value calculation involves estimating the future cash inflows and outflows to be derived from continuing use of the asset, and from its ultimate disposal, applying an appropriate discount rate to those future cash flows.
Where the recoverable amount of an asset is less than the carrying amount, an impairment loss is recognised immediately in the Statement of Comprehensive Income.
An impairment loss recognised for all assets is reversed in a subsequent year if, and only if, the reasons for the impairment loss have ceased to apply.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
- 25 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
|
|
|
Financial instruments (continued)
|
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
- 26 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
The UK government has offered a range of financial support packages to help companies, including government backed financing arrangements, furlough schemes, deferment of VAT payments and, for some sectors, business rates holidays, of the offered schemes, the Group used the furlough scheme and deferral of VAT payments. The income from the furlough scheme has been recognised within 'Other operating income'. They are recognised when the entity has reasonable assurance that they will comply with the conditions attaching the grant, and that the grant will be received.
Assets obtained under finance lease obligations are capitalised in the Statement of Financial Position. The assets held under finance lease obligations are depreciated over their estimated useful lives or the lease term, whichever is shorter.
The interest element of these obligations is charged to the Statement of Comprehensive Income over the relevant period. The capital element of the future payments is treated as a liability.
Operating lease rentals are charged to profit or loss on a straight line basis over the period of the lease term.
Benefits receivable as operating lease incentives are recognised within the Statement of Comprehensive Income on a straight line basis over the lease term.
- 27 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
Critical accounting judgements and key sources of estimation uncertainty
|
In applying the Group’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised, if the revision affects only that year, or in the year of the revision and future years, if the revision affects both current and future years.
3.1 Critical judgements in applying the Company’s accounting policies
The critical judgements that the directors have made in the process of applying the Group’s accounting policies and that has the most significant effect on the amounts recognised in the statutory financial statements is discussed below.
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
3.2 Key sources of estimation uncertainty
The key assumption concerning the future, and other key sources of estimation uncertainty, that has a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year is discussed below.
(ii) Recoverability of debtors
The Group establishes a provision for debtors that are estimated not to be recoverable. When assessing recoverability the directors have considered factors such as the aging of the debtors, past experience of recoverability, and the credit profile of individual or groups of customers.
(iii) Determining residual values and useful economic lives of property, plant and equipment
The Company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.
- 28 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
|
|
|
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|
|
|
|
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|
Australia and New Zealand
|
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|
|
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|
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|
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|
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|
|
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|
|
|
The operating profit is stated after charging/(crediting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of tangible assets
|
|
|
|
|
Amortisation of intangible assets
|
|
|
|
|
Operating lease expense for office rent
|
|
|
|
|
|
|
|
- 29 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
Fees payable to the Group's auditor for the audit of the Group's annual financial statements
|
|
|
|
|
Fees payable to the Group's auditor in respect of:
|
|
|
|
|
Taxation compliance services
|
|
|
|
|
|
|
|
|
|
|
|
|
Staff costs were as follows:
|
|
|
|
|
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|
|
|
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|
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|
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|
|
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|
Cost of defined contribution scheme
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The average monthly number of employees, including the directors, during the year was as follows:
|
- 30 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
|
|
|
|
|
|
|
|
|
|
Company contributions to defined contribution pension schemes
|
|
|
|
|
|
|
|
|
|
The remuneration of directors included the following in respect of the highest paid director:
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension contributions to money purchase schemes
|
|
|
|
|
|
|
|
|
|
The directors are deemed to be the only key management personnel of the company.
|
|
|
Government grants receivable
|
|
|
|
|
|
|
|
|
|
Government grants receivable represents funds received under the Corona Virus Job Retention Scheme.
|
|
|
Interest receivable and similar income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest receivable from group companies
|
|
|
|
|
Other interest receivable
|
|
|
|
|
|
|
|
- 31 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
Interest payable and similar charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest payable on intercompany loan
|
|
|
|
|
Finance lease interest payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax on profits for the year
|
|
|
|
|
Adjustments in respect of previous periods
|
|
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|
|
|
|
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|
|
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|
|
Origination and reversal of timing differences
|
|
|
|
|
Adjustments in respect of prior years
|
|
|
|
|
|
|
|
|
|
|
|
|
- 32 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
12.Tax on profit (continued)
|
|
Factors affecting tax charge for the year
|
|
|
The tax assessed for the year is lower than (2020: higher than) the standard rate of corporation tax in the UK of19% (2020: 19%). The differences are explained below:
|
|
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|
Profit multiplied by standard rate of corporation tax in the UK of 19% (2020: 19%)
|
|
|
|
|
|
|
|
|
|
Non-tax deductible amortisation of goodwill and impairment
|
|
|
|
|
Expenses not deductible for tax purposes
|
|
|
|
|
Capital allowances for year in excess of depreciation
|
|
|
|
|
|
|
|
|
|
Adjustments to tax charge in respect of prior periods
|
|
|
|
|
Adjustments to tax charge in respect of prior periods - Deferred tax
|
|
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|
|
Remeasurement of deferred tax for changes in tax rates
|
|
|
|
|
Deferred tax not recognised
|
|
|
|
|
Total tax charge for the year
|
|
|
|
|
Factors that may affect future tax charges
|
The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.
- 33 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
The Company does not have any intangible fixed assets in both the current and prior year.
|
- 34 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
The Company does not have any tangible fixed assets in both the current and prior year.
|
- 35 -
|
|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
Investments in subsidiary undertakings
|
|
|
Investments in subsidiary companies
|
|
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The following were subsidiary undertakings of the Company:
|
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Seko Logistics (London) Limited
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Seko Logistics Scotland Limited
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Seko Logistics Solutions Limited
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Seko Logistics (Southampton) Limited
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Seko Logistics (North) Limited
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Seko Omni-Channel Logistics Ltd
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Indigina Technologies Limited
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Information technology provider of supply chain solutions software
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- 36 -
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SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Subsidiary undertakings (continued)
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The aggregate of the share capital and reserves as at 31 December 2021 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
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Aggregate of share capital and reserves
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Seko Logistics (London) Limited
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Seko Logistics Scotland Limited
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Seko Logistics Solutions Limited
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Seko Logistics (Southampton) Limited
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Seko Logistics (North) Limited
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Seko Omni-Channel Logistics Ltd
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Indigina Technologies Limited
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- 37 -
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SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Payments received on account
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Amounts owed to group undertakings
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Other taxation and social security
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Finance lease obligations
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
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- 38 -
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|
SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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Charged to the Statement of Comprehensive Income
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Charged to the Statement of Comprehensive Income
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Fixed asset timing differences
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Short term timing differences
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Finance lease obligations
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The finance lease arrangements relate to fixtures and fittings and are secured by the assets to which they relate (note 14). There are no contingent rental, renewal or purchase option clauses.
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- 39 -
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SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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Financial assets measured at fair value through profit or loss
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Financial assets that are debt instruments measured at amortised cost
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Financial liabilities measured at amortised cost
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Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
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Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.
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Financial liabilities measured at amortised cost comprise invoice finance facility, trade creditors, amounts owed to group undertakings,finance lease obligations, other creditors and accruals.
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- 40 -
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SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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Allotted, called up and fully paid
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165 (2020: 165) Ordinary shares of £1.00 each
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The Company has one class of ordinary shares. Each share carries one voting right per share but no right to fixed income.
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Capital redemption reserve
This reserve represents the nominal value of the Group's repurchased share capital.
Profit and loss account
This reserve represents cumulative profits and losses of the Group.
Non-controlling interest
This reserve represents amounts of equity which are due to shareholders outside of the Group.
The Group operates a defined contribution pension plan for its employees. The assets of the scheme are held separately from those of the Group in an independent administered fund. The pension cost charged represents contributions payable by the company to the scheme and amounted to £300,283 (2020: £267,921). Contributions amounting to £2,859 (2020: £4,726) were outstanding at the reporting date.
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Operating lease commitments
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At 31 December the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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The Company has no operating lease commitments.
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- 41 -
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SEKO LOGISTICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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Related Party Transactions
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During the year the Group entered into the following transactions with related parties:
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Transactions with group undertakings
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Services rendered (by) group undertakings
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Services rendered to group undertakings
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Transactions with entities under the control of key management personnel
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Consultancy services from related entity
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Amounts due (to)/from group undertakings
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Included within creditors
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Post balance sheet events
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On 24 February 2022 Russian Forces entered Ukraine, resulting in Western Nation reactions including announcements of sanctions against Russia and Russian interests worldwide and an economic ripple effect on the global economy. The directors have carried out an assessment of the potential impact of Russian Forces entering Ukraine on the business, including the impact of mitigation measures and uncertainties, and have concluded that this is a non-adjusting post balance sheet event.
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Parent undertaking and ultimate controlling party
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The immediate parent company and ultimate parent company of the largest and smallest group in which the results of the Company are consolidated into was Seko Global Logistics Network LLC, a company incorporated in the United States of America.
- 42 -
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