Humber Ports Holding Limited - Limited company accounts 23.2

REGISTERED NUMBER: 08590484 (England and Wales)

Humber Ports Holding Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31st March 2023

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

J Benton

S W Benton

R Beales

P Gostling

REGISTERED OFFICE:

Lancaster Approach

North Killingholme

Immingham

N E Lincolnshire

DN40 3JZ

REGISTERED NUMBER:

08590484 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

Humber Ports Holding Limited - Strategic Report for Year Ending 31st March 2023

Principal Activity

The principal activity of the year was that of haulage.

Review of the Business

The directors of the business aim to present a fair review of the last years trade and factors that have influenced the years trade as well as the uncertainties we face with the haulage sector moving forward.

The company's core business is that of supplying haulage to European Shipping Lines & Freight forwarders that ship cargo from Europe into the UK via the main ports situated on the North and south Banks of the Humber estuary. The company provides delivery & distribution across the UK for these goods, which is predominantly delivered via shipping containers, as well as European ferry trailers imported into the UK.

The company asset & labour policy allows the company to be more flexible and able to react more quickly to market as it changes. With the current number spot/short term rentals trucks and matching the same number of agency labour allows the company to down scale or upscale depending on customers' demands and control cost and reducing cost & overheads when required

We accept that there will always be low and high points throughout the year due to seasonal demands, but with our long-term customer commitments of volumes and our asset & labour policy allows us to react quickly to these demands and controls our cost in a more cost-effective manner and this has shown in 2023 results.

Principal Risks and Uncertainties

The current risk and uncertainty relate to supply and cost of fuel & energy due to the ongoing conflict in Ukraine and long delays in raw materials needed for manufacturing.

The Directors have a strong management team with wealth of experience with the haulage & logistics sector, all management have implemented and managed the restructure well to support the continue grow and development of the business.

Whilst we can try and forecast issues, the business is still subject to outside influences beyond our control and will continue to monitor closely to ensure that the company continues mitigate/recover additional cost when required:

-

Rising fuel & energy cost;

-

Increase in labour cost - as result of increased cost living;

-

Reduced Labour market - Due to Brexit and UK Settlement status and aging work force within the Transport sector;

-

Ongoing capital investment to meet changing environmental standard and legislation;

-

Supply and cost increase of New Equipment;

-

Port/Terminal Delays as a result of Brexit and customers procedures;

-

Competitive market prices;

-

Bad Debt.

These risks are being addressed by:

-

Monthly Fuel Surcharge adjustment;

-

Working closely with customers to understand their requirement to offer alternative/competitive solutions;

-

Investing in employees & technologies to increase productivity and reduce downtime;

-

Credit insurance policy for all customers to cover bad debt.

Key Performance Indicators

The group key performance indicators during the year are:-

-

Turnover

-

Operating profit

-

Truck utilisation

Turnover and operating profitability are as stated on the Income Statement in these accounts. These performance indicators are monitored by the directors at all times throughout the year and form a basis for decision making.

Performance overview

The Directors are pleased with results achieved in the current climate and are continuing to manage the wider effects in rising energy prices and manufacturing.

The Directors are confident that the company has continued to grow and are continually looking at new technologies and solutions within the transport industry to make the company more efficient and sustainable to give the company a competitive edge within a competitive market place.

ON BEHALF OF THE BOARD:

J Benton - Director

15th January 2024

The directors present their report with the financial statements of the company and the group for the year ended 31st March 2023.

DIVIDENDS

Ordinary dividends of £54,000 were paid in the year. The Directors do not recommend the payment of a final dividend.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st April 2022 to the date of this report.

J Benton

S W Benton

Other changes in directors holding office are as follows:

R Beales - appointed 20th October 2022

P Gostling - appointed 21st October 2022

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The group has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J Benton - Director

15th January 2024

Opinion

We have audited the financial statements of Humber Ports Holding Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st March 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 Financial Reporting Standard 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 of the parent company affairs as at 31st March 2023 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 Auditors' 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 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 in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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.

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 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.

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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 Statement of Directors' Responsibilities set out on page four, 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 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 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 either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with relevant regulators and the company's legal advisors.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our 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 a Report of the Auditors 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.

Matthew Fox FCCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

16th January 2024

TURNOVER

13,663,247

12,495,402

Cost of sales

7,982,623

7,350,210

GROSS PROFIT

5,680,624

5,145,192

Administrative expenses

5,346,568

4,915,147

334,056

230,045

Other operating income

41,444

256,975

OPERATING PROFIT

4

375,500

487,020

Interest receivable and similar income

1

-

375,501

487,020

Interest payable and similar expenses

5

112,113

81,152

PROFIT BEFORE TAXATION

263,388

405,868

Tax on profit

6

70,017

120,058

PROFIT FOR THE FINANCIAL YEAR

193,371

285,810

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

193,371

285,810

Profit attributable to:

Owners of the parent

193,371

285,810

Total comprehensive income attributable to:

Owners of the parent

193,371

285,810

FIXED ASSETS

Tangible assets

9

1,891,934

2,191,957

Investments

10

-

-

1,891,934

2,191,957

CURRENT ASSETS

Stocks

11

27,834

31,428

Debtors

12

1,976,175

2,450,563

Cash at bank and in hand

287,266

13,970

2,291,275

2,495,961

CREDITORS

Amounts falling due within one year

13

3,353,516

3,399,820

NET CURRENT LIABILITIES

(1,062,241

)

(903,859

)

TOTAL ASSETS LESS CURRENT LIABILITIES

829,693

1,288,098

CREDITORS

Amounts falling due after more than one year

14

(445,886

)

(1,113,679

)

PROVISIONS FOR LIABILITIES

18

(241,317

)

(171,300

)

NET ASSETS

142,490

3,119

CAPITAL AND RESERVES

Called up share capital

19

100

100

Retained earnings

20

142,390

3,019

SHAREHOLDERS' FUNDS

142,490

3,119

The financial statements were approved by the Board of Directors and authorised for issue on 15th January 2024 and were signed on its behalf by:

J Benton - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

101

101

101

101

CREDITORS

Amounts falling due within one year

13

1

1

NET CURRENT LIABILITIES

(1

)

(1

)

TOTAL ASSETS LESS CURRENT LIABILITIES

100

100

CAPITAL AND RESERVES

Called up share capital

19

100

100

SHAREHOLDERS' FUNDS

100

100

Company's profit for the financial year

54,000

40,000

The financial statements were approved by the Board of Directors and authorised for issue on 15th January 2024 and were signed on its behalf by:

J Benton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2021

100

(242,791

)

(242,691

)

Changes in equity

Dividends

-

(40,000

)

(40,000

)

Total comprehensive income

-

285,810

285,810

Balance at 31st March 2022

100

3,019

3,119

Changes in equity

Dividends

-

(54,000

)

(54,000

)

Total comprehensive income

-

193,371

193,371

Balance at 31st March 2023

100

142,390

142,490

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2021

100

-

100

Changes in equity

Dividends

-

(40,000

)

(40,000

)

Total comprehensive income

-

40,000

40,000

Balance at 31st March 2022

100

-

100

Changes in equity

Dividends

-

(54,000

)

(54,000

)

Total comprehensive income

-

54,000

54,000

Balance at 31st March 2023

100

-

100

Cash flows from operating activities

Cash generated from operations

1

(581,859

)

515,042

Interest paid

(112,113

)

(81,152

)

Net cash from operating activities

(693,972

)

433,890

Cash flows from investing activities

Purchase of tangible fixed assets

-

(573,070

)

Interest received

1

-

Net cash from investing activities

1

(573,070

)

Cash flows from financing activities

New loans in year

1,495,545

1,062,153

Capital repayments in year

(638,190

)

(921,064

)

Amount introduced by directors

218,846

140,000

Amount withdrawn by directors

(54,934

)

(138,215

)

Equity dividends paid

(54,000

)

(40,000

)

Net cash from financing activities

967,267

102,874

Increase/(decrease) in cash and cash equivalents

273,296

(36,306

)

Cash and cash equivalents at beginning of year

2

13,970

50,276

Cash and cash equivalents at end of year

2

287,266

13,970

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023

2022

£

£

Profit before taxation

263,388

405,868

Depreciation charges

300,023

250,349

Finance costs

112,113

81,152

Finance income

(1

)

-

675,523

737,369

Decrease in stocks

3,594

803

Decrease in trade and other debtors

310,476

343,054

Decrease in trade and other creditors

(1,571,452

)

(566,184

)

Cash generated from operations

(581,859

)

515,042

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st March 2023

31.3.23

1.4.22

£

£

Cash and cash equivalents

287,266

13,970

Year ended 31st March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

13,970

50,276

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.22

Cash flow

At 31.3.23

£

£

£

Net cash

Cash at bank and in hand

13,970

273,296

287,266

13,970

273,296

287,266

Debt

Finance leases

(1,390,006

)

564,130

(825,876

)

Debts falling due within 1 year

(90,031

)

(74,439

)

(164,470

)

Debts falling due after 1 year

(152,619

)

148,499

(4,120

)

(1,632,656

)

638,190

(994,466

)

Total

(1,618,686

)

911,486

(707,200

)

1.	STATUTORY INFORMATION

Humber Ports Holding Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The group financial statements consolidate the financial statements of Humber Ports Holding Limited and all its subsidiary undertakings drawn up to 31st March each year. No statement of comprehensive income is presented for Humber Ports Holding Limited as permitted by section 408 of the Companies Act 2006.

Going concern

These financial statements are prepared on a going concern basis. The directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future. The support of the group, headed by Samskip Holding B.V, the ultimate parent company, has been confirmed and therefore the directors are of the view that the company will be able to operate for at least the next 12 months.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.

Plant and machinery etc

20% on reducing balance

15% on reducing balance

17% on a straight line basis

10% on a straight line basis

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3.	EMPLOYEES AND DIRECTORS

2023

2022

£

£

Wages and salaries

3,981,815

3,674,513

Social security costs

407,596

346,595

Other pension costs

88,569

105,047

4,477,980

4,126,155

The average number of employees during the year was as follows:

2023

2022

Directors

4

2

Administrative staff

9

8

Other staff

94

76

107

86

2023

2022

£

£

Directors' remuneration

73,033

19,128

Directors' pension contributions to money purchase schemes

3,465

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2023

2022

£

£

Hire of plant and machinery

1,319,505

1,456,968

Depreciation - owned assets

300,023

250,349

Auditors' remuneration

22,500

1,250

Other non- audit services

1,000

750

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

£

£

HP Interest

23,797

24,151

Other loan interest

88,316

57,001

112,113

81,152

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2023

2022

£

£

Deferred tax

70,017

120,058

Tax on profit

70,017

120,058

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023

2022

£

£

Profit before tax

263,388

405,868

Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %)

50,044

77,115

Effects of:

Expenses not deductible for tax purposes

2,329

2,286

Losses utilised

785

(454

)

Change in rate

16,859

41,111

Total tax charge

70,017

120,058

The Chancellor of the Exchequer delivered his budget to parliament on 3 March 2021 in which he confirmed that the corporation tax rate would increase from the current rate of 19% to 25% from 1 April 2023 for companies with profits greater than £50,000. As the rate increase had been substantively enacted by the balance sheet date, deferred tax has been provided for in this set of financial statements at that rate.