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Registration number: SC370985

Phoenix Drilling Ltd.

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2021

 

Phoenix Drilling Ltd.

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

Accountants' Report

11

 

Phoenix Drilling Ltd.

Company Information

Director

Mr Stephen Hugh Glover

Registered office

Unit 4B
Gateway Business Park
Beancross Road
Grangemouth
FK3 8WX

Accountants

Yates & Co CA
Unit 4B
Gateway Business Park
Beancross Road
Grangemouth
FK3 8WX

 

Phoenix Drilling Ltd.

(Registration number: SC370985)
Balance Sheet as at 31 December 2021

Note

2021
£

2020
£

Fixed assets

 

Tangible assets

5

749,436

763,168

Current assets

 

Stocks

6

640,618

450,082

Debtors

7

514,645

596,541

Cash at bank and in hand

 

22,887

26,385

 

1,178,150

1,073,008

Creditors: Amounts falling due within one year

8

(1,316,231)

(1,186,308)

Net current liabilities

 

(138,081)

(113,300)

Total assets less current liabilities

 

611,355

649,868

Creditors: Amounts falling due after more than one year

8

(379,534)

(488,748)

Provisions for liabilities

(74,250)

(63,889)

Net assets

 

157,571

97,231

Capital and reserves

 

Called up share capital

100

100

Revaluation reserve

-

172,721

Retained earnings

157,471

(75,590)

Shareholders' funds

 

157,571

97,231

For the financial year ending 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 24 August 2022
 

 

Phoenix Drilling Ltd.

(Registration number: SC370985)
Balance Sheet as at 31 December 2021

.........................................
Mr Stephen Hugh Glover
Director

 

Phoenix Drilling Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

1

General information

The company is a private company limited by share capital, incorporated in Scotland.

2

Accounting policies

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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 operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Phoenix Drilling Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

Reducing balance at 10%

Fixtures and fittings

Reducing balance at 10%

Motor vehicles

Reducing balance at 25%

Computer Equipment

Straight line at 33%

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Raw materials and consumables are stated at the lower of cost and net residual value.

The cost of raw materials and consumables includes short life assets such as tools and equipment used in the drilling process. At each reporting date, these assets are assessed for impairment. If the assets are impaired, the carrying amount is reduced to the net residual value and the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Phoenix Drilling Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual
arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any
contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

 

3

Employees and Directors

The average number of persons employed by the company (including the director) during the year, was 43 (2020 - 42).

Directors' remuneration

The director's remuneration for the year was as follows:

2021
£

2020
£

Remuneration

11,000

10,267

Contributions paid to money purchase schemes

143

121

11,143

10,388

4

Taxation

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

2021
 £

2020
 £

UK corporation tax

15,461

(23,352)

Deferred tax

10,362

15,551

Tax on profit

25,823

(7,801)

 

Phoenix Drilling Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

5

Tangible assets

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Cost or valuation

At 1 January 2021

22,739

1,089,866

18,963

297,704

Additions

1,092

94,000

459

47,442

At 31 December 2021

23,831

1,183,866

19,422

345,146

Depreciation

At 1 January 2021

10,059

466,321

17,393

172,331

Charge for the year

3,443

109,084

925

43,273

At 31 December 2021

13,502

575,405

18,318

215,604

Carrying amount

At 31 December 2021

10,329

608,461

1,104

129,542

At 31 December 2020

12,680

623,545

1,570

125,373

Total
£

Cost or valuation

At 1 January 2021

1,429,272

Additions

142,993

At 31 December 2021

1,572,265

Depreciation

At 1 January 2021

666,104

Charge for the year

156,725

At 31 December 2021

822,829

Carrying amount

At 31 December 2021

749,436

At 31 December 2020

763,168

Revaluation

The fair value of the company's Plant and machinery was revalued on 31 December 2015. An independent valuer was not involved. .
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £771,470 (2020 - £677,471).

 

Phoenix Drilling Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

6

Stocks

2021
£

2020
£

Raw materials and consumables

640,618

450,082

7

Debtors

Current

2021
£

2020
£

Trade debtors

514,495

573,039

Other debtors

150

23,502

 

514,645

596,541

 

Phoenix Drilling Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

8

Creditors

Creditors: amounts falling due within one year

Note

2021
£

2020
£

Due within one year

 

Loans and borrowings

9

610,837

665,098

Trade creditors

 

180,191

183,136

Taxation and social security

 

446,011

312,688

Other creditors

 

79,192

25,386

 

1,316,231

1,186,308

Creditors: amounts falling due after more than one year

Note

2021
£

2020
£

Due after one year

 

Loans and borrowings

9

379,534

488,748

9

Loans and borrowings

2021
£

2020
£

Non-current loans and borrowings

Bank borrowings

117,155

177,527

Hire purchase contracts

262,379

311,221

379,534

488,748

2021
£

2020
£

Current loans and borrowings

Bank borrowings

73,745

73,745

Bank overdrafts

405,121

461,551

Hire purchase contracts

131,971

129,802

610,837

665,098

 

Phoenix Drilling Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

10

Leasing agreements

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

2021
 £

2020
 £

Within one year

24,382

24,913

Between one and five years

47,709

35,333

72,091

60,246

11

Related party transactions

Creditors include the following amounts which are owed to individuals who were directors of the company during the year:

2021
 £

2020
 £

Mr Stephen Hugh Glover

68,064

17,736

 

68,064

17,736

The maximum balance outstanding during the year amounted to £68,064.

The directors current accounts are repayable on demand.

 

Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Phoenix Drilling Ltd.
for the Year Ended 31 December 2021

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Phoenix Drilling Ltd. for the year ended 31 December 2021 as set out on pages 2 to 10 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to the Board of Directors of Phoenix Drilling Ltd., as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Phoenix Drilling Ltd. and state those matters that we have agreed to state to the Board of Directors of Phoenix Drilling Ltd., as a body, in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Phoenix Drilling Ltd. and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Phoenix Drilling Ltd. has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Phoenix Drilling Ltd.. You consider that Phoenix Drilling Ltd. is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Phoenix Drilling Ltd.. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Yates & Co CA
Unit 4B
Gateway Business Park
Beancross Road
Grangemouth
FK3 8WX

24 August 2022