Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-312022-12-31truefalsetrue2022-01-01No description of principal activity00truefalse SC404769 2022-01-01 2022-12-31 SC404769 2021-01-01 2021-12-31 SC404769 2022-12-31 SC404769 2021-12-31 SC404769 2021-01-01 SC404769 c:CompanySecretary1 2022-01-01 2022-12-31 SC404769 c:Director1 2022-01-01 2022-12-31 SC404769 c:Director1 2022-12-31 SC404769 c:Director2 2022-01-01 2022-12-31 SC404769 c:Director3 2022-01-01 2022-12-31 SC404769 c:Director3 2022-12-31 SC404769 c:Director4 2022-01-01 2022-12-31 SC404769 c:Director4 2022-12-31 SC404769 c:RegisteredOffice 2022-01-01 2022-12-31 SC404769 d:Buildings d:LongLeaseholdAssets 2022-01-01 2022-12-31 SC404769 d:Buildings d:LongLeaseholdAssets 2022-12-31 SC404769 d:Buildings d:LongLeaseholdAssets 2021-12-31 SC404769 d:PlantMachinery 2022-01-01 2022-12-31 SC404769 d:PlantMachinery 2022-12-31 SC404769 d:PlantMachinery 2021-12-31 SC404769 d:PlantMachinery d:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 SC404769 d:MotorVehicles 2022-01-01 2022-12-31 SC404769 d:MotorVehicles 2022-12-31 SC404769 d:MotorVehicles 2021-12-31 SC404769 d:MotorVehicles d:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 SC404769 d:OfficeEquipment 2022-01-01 2022-12-31 SC404769 d:OfficeEquipment 2022-12-31 SC404769 d:OfficeEquipment 2021-12-31 SC404769 d:OfficeEquipment d:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 SC404769 d:OtherPropertyPlantEquipment 2022-01-01 2022-12-31 SC404769 d:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 SC404769 d:CurrentFinancialInstruments 2022-12-31 SC404769 d:CurrentFinancialInstruments 2021-12-31 SC404769 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 SC404769 d:CurrentFinancialInstruments d:WithinOneYear 2021-12-31 SC404769 d:ShareCapital 2022-12-31 SC404769 d:ShareCapital 2021-12-31 SC404769 d:ShareCapital 2021-01-01 SC404769 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 SC404769 d:RetainedEarningsAccumulatedLosses 2022-12-31 SC404769 d:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 SC404769 d:RetainedEarningsAccumulatedLosses 2021-12-31 SC404769 d:RetainedEarningsAccumulatedLosses 2021-01-01 SC404769 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 SC404769 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2021-12-31 SC404769 d:FinancialAssetsAmortisedCost 2022-12-31 SC404769 d:FinancialAssetsAmortisedCost 2021-12-31 SC404769 d:FinancialLiabilitiesAmortisedCost 2022-12-31 SC404769 d:FinancialLiabilitiesAmortisedCost 2021-12-31 SC404769 c:OrdinaryShareClass1 2022-01-01 2022-12-31 SC404769 c:OrdinaryShareClass1 2022-12-31 SC404769 c:OrdinaryShareClass1 2021-12-31 SC404769 c:OrdinaryShareClass2 2022-01-01 2022-12-31 SC404769 c:OrdinaryShareClass2 2022-12-31 SC404769 c:OrdinaryShareClass2 2021-12-31 SC404769 c:FRS102 2022-01-01 2022-12-31 SC404769 c:Audited 2022-01-01 2022-12-31 SC404769 c:FullAccounts 2022-01-01 2022-12-31 SC404769 c:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 SC404769 d:Subsidiary1 2022-01-01 2022-12-31 SC404769 d:Subsidiary1 1 2022-01-01 2022-12-31 SC404769 d:Subsidiary2 2022-01-01 2022-12-31 SC404769 d:Subsidiary2 1 2022-01-01 2022-12-31 SC404769 d:Subsidiary3 2022-01-01 2022-12-31 SC404769 d:Subsidiary3 1 2022-01-01 2022-12-31 SC404769 d:WithinOneYear 2022-12-31 SC404769 d:WithinOneYear 2021-12-31 SC404769 d:BetweenOneFiveYears 2022-12-31 SC404769 d:BetweenOneFiveYears 2021-12-31 SC404769 d:MoreThanFiveYears 2022-12-31 SC404769 d:MoreThanFiveYears 2021-12-31 SC404769 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-12-31 SC404769 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2021-12-31 SC404769 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2022-12-31 SC404769 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2021-12-31 SC404769 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2022-12-31 SC404769 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2021-12-31 SC404769 c:Consolidated 2022-12-31 SC404769 c:ConsolidatedGroupCompanyAccounts 2022-01-01 2022-12-31 SC404769 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 SC404769 d:AcceleratedTaxDepreciationDeferredTax 2021-12-31 SC404769 d:TaxLossesCarry-forwardsDeferredTax 2022-12-31 SC404769 d:TaxLossesCarry-forwardsDeferredTax 2021-12-31 SC404769 2 2022-01-01 2022-12-31 SC404769 6 2022-01-01 2022-12-31 SC404769 8 2022-01-01 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure
Registered number: SC404769













SUBSEA TECHNOLOGY & RENTALS LIMITED






ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

COMPANY INFORMATION


Directors
E Grant (resigned 14 January 2022)
S Johnstone 
S Steele (appointed 17 March 2022)
S Bannerman (appointed 10 April 2023)




Company secretary
Stronachs Secretaries Limited



Registered number
SC404769



Registered office
28 Albyn Place

Aberdeen

AB10 1YL




Independent auditor
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

CONTENTS



Page
Group strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Consolidated statement of comprehensive income
8
Consolidated balance sheet
9
Company balance sheet
10
Consolidated statement of changes in equity
11
Company statement of changes in equity
12
Consolidated statement of cash flows
13 - 14
Consolidated analysis of net debt
15
Notes to the financial statements
16 - 35


 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
This report details the consolidated results for Subsea Technology & Rentals Limited, for the year ended 31 December 2022.

Business review
 
STR is a key supplier of subsea technologies, products, and equipment to the offshore renewable and oil and gas industries. The STR group operates from bases in Aberdeen, Great Yarmouth, Houston, Singapore and Perth (Australia). 
In January 2022, Baird Capital invested in the STR group and PNC Bank provided a £17m funding facility, providing additional financial resource to support the development of the business.  During 2022 the STR Group made record levels of investment in core rental equipment, increased production capacity on the STR developed and manufactured technology and invested in improved operational facilities including a new Centre for Innovation and Technology.  The STR Group invested heavily during 2022 in the recruitment of additional personnel to support the growth of the business and continued the development of its core policies and processes including the development of it’s ESG Vision. 
The business performed well in all its core markets and geographies, with all regions experiencing a growth in business.  The offshore renewables and oil and gas were buoyant during 2022.  As a result, the STR Group experienced a 23% increase in revenue to £24m and a 270% increase in PBT to £7.5m   

Principal risks and uncertainties
 
The principal risks and uncertainties facing the Company and Group are as follows –
Credit risk - The Company and Group's credit risk is primarily attributable to trade debtors. The amounts presented in the balance sheet are net of any allowances or provisions for doubtful debtors. The majority of the Company and Group's business is undertaken with large companies with strong credit ratings. Management continually reviews the status of outstanding trade debtors to ensure that the trade debtor risk is commensurate with the volume and nature of the business.
Liquidity risk - The Company and Group's management review cash flow and funding facilities to ensure there is sufficient working capital in place to support the business.

Financial key performance indicators
 
The financial key performance indicators which the directors use to monitor are revenue, EBITDA, asset utilisation and cash flow generation.

Other key performance indicators
 
Other key performance indicators include health and safety and quality improvements, CCRs, sales metrics, asset turnaround time and ESG metrics.   


This report was approved by the board and signed on its behalf.



................................................
S Bannerman
Director

Date: 28 September 2023

Page 1

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Results and dividends

The profit for the year, after taxation, amounted to £6,506,849 (2021 - £2,699,157).

There were dividends of £nil paid during the year (2021 - £nil).

Directors

The directors who served during the year were:

E Grant (resigned 14 January 2022)
S Johnstone 
S Steele (appointed 17 March 2022)

Future developments

The offshore renewable and oil and gas markets are expected to expand over the foreseeable future. The limit of the PNC funding facility has been increased to allow STR to continue to invest significant additional funds in core assets and allow STR to take advantage of the anticipated growth in the STR core markets. 

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditor

Subsequent to 31 December 2022 Ernest & Young LLP have been appointed as the statutory auditor in accordance with the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
S Bannerman
Director

Date: 28 September 2023

Page 2

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022

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;

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 Company'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 2006They 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.

Page 3

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SUBSEA TECHNOLOGY & RENTALS LIMITED
 

Opinion


We have audited the financial statements of Subsea Technology & Rentals Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2022, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 December 2022 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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or 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.


Page 4

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SUBSEA TECHNOLOGY & RENTALS LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditor's report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and 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.


Page 5

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SUBSEA TECHNOLOGY & RENTALS LIMITED (CONTINUED)

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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the Group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements.

The laws and regulations we considered in this context were the Companies Act 2006 and UK Taxation
legislation.

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the
greatest potential for fraud in the following areas:

timing and completeness of revenue recognition
compliance with relevant laws and regulations which may impact on the financial statements and those that the Group needs to comply with for the purpose of trading
management judgements applied in calculating provisions
management override of controls to manipulate the Group’s key performance indicators to meet targets.

We discussed these risks with client management, designed audit procedures to address these risks including:

reviewed internal documentation and correspondence with regulators for evidence or irregularities
testing a sample of sales transactions to source documents and review of recognition of income around the year end
consideration of the assumptions applied whether the judgements applied in calculation of provisions were appropriate
reviewed areas of judgement and tested a sample of journal entries for indicators of management bias
performed analytical procedures to identify any unusual or unexpected relationships which may be an indication of material misstatement due to fraud

Because of 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. 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 Auditor's report.


Page 6

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SUBSEA TECHNOLOGY & RENTALS LIMITED (CONTINUED)

Use of our report
 

This report is made solely to the Group's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Group'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 Group and the Group's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Derek Mair (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

28 September 2023
Page 7

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
24,177,366
19,632,242

Cost of sales
  
(9,177,946)
(11,580,412)

Gross profit
  
14,999,420
8,051,830

Administrative expenses
  
(7,157,102)
(5,247,168)

Other operating income
 5 
46,271
82,386

Operating profit
 6 
7,888,589
2,887,048

Interest receivable and similar income
 10 
6,587
8

Interest payable and similar expenses
 11 
(423,621)
(90,120)

Profit before tax
  
7,471,555
2,796,936

Tax on profit
 12 
(964,706)
(97,779)

Profit for the financial year
  
6,506,849
2,699,157

Other comprehensive income for the year
  

Currency translation differences
  
191,164
191

Other comprehensive income for the year
  
191,164
191

Total comprehensive income for the year
  
6,698,013
2,699,348

Profit for the year attributable to:
  

Owners of the parent company
  
(6,506,849)
(2,699,157)

  
(6,506,849)
(2,699,157)

The notes on pages 16 to 35 form part of these financial statements.

Page 8

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
REGISTERED NUMBER:SC404769

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 13 
2,285
5,717

Tangible assets
 14 
15,503,566
9,394,634

  
15,505,851
9,400,351

Current assets
  

Stocks
 16 
1,908,421
2,095,289

Debtors: amounts falling due within one year
 17 
12,680,212
6,331,392

Cash at bank and in hand
 18 
935,162
1,421,166

  
15,523,795
9,847,847

Creditors: amounts falling due within one year
 19 
(10,558,078)
(5,474,643)

Net current assets
  
 
 
4,965,717
 
 
4,373,204

Total assets less current liabilities
  
20,471,568
13,773,555

Net assets
  
20,471,568
13,773,555


Capital and reserves
  

Called up share capital 
 22 
972,222
972,222

Profit and loss account
  
19,499,346
12,801,333

  
20,471,568
13,773,555


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
S Bannerman
Director

Date: 28 September 2023

The notes on pages 16 to 35 form part of these financial statements.

Page 9

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
REGISTERED NUMBER:SC404769

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 13 
2,092
5,348

Tangible assets
 14 
14,269,550
8,390,568

Investments
 15 
866
866

  
14,272,508
8,396,782

Current assets
  

Stocks
 16 
1,908,421
2,095,289

Debtors: amounts falling due within one year
 17 
12,732,091
6,910,665

Cash at bank and in hand
 18 
67,288
970,030

  
14,707,800
9,975,984

Creditors: amounts falling due within one year
 19 
(9,526,741)
(4,883,003)

Net current assets
  
 
 
5,181,059
 
 
5,092,981

Total assets less current liabilities
  
19,453,567
13,489,763

  

  

Net assets
  
19,453,567
13,489,763


Capital and reserves
  

Called up share capital 
 22 
972,222
972,222

Profit and loss account
  
18,481,345
12,517,541

  
19,453,567
13,489,763


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
S Bannerman
Director

Date: 28 September 2023

The notes on pages 16 to 35 form part of these financial statements.

Page 10

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
972,222
12,801,333
13,773,555


Comprehensive income for the year

Profit for the year
-
6,506,849
6,506,849

Currency translation differences
-
191,164
191,164


At 31 December 2022
972,222
19,499,346
20,471,568


The notes on pages 16 to 35 form part of these financial statements.


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2021
972,222
10,101,985
11,074,207


Comprehensive income for the year

Profit for the year
-
2,699,157
2,699,157

Currency translation differences
-
191
191


At 31 December 2021
972,222
12,801,333
13,773,555


The notes on pages 16 to 35 form part of these financial statements.

Page 11

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
972,222
12,517,541
13,489,763


Comprehensive income for the year

Profit for the year
-
5,963,804
5,963,804


At 31 December 2022
972,222
18,481,345
19,453,567


The notes on pages 16 to 35 form part of these financial statements.


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2021
972,222
10,360,758
11,332,980


Comprehensive income for the year

Profit for the year
-
2,156,783
2,156,783


At 31 December 2021
972,222
12,517,541
13,489,763


The notes on pages 16 to 35 form part of these financial statements.

Page 12

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
6,506,849
2,699,157

Adjustments for:

Amortisation of intangible assets
3,432
3,402

Depreciation of tangible assets
2,648,089
4,674,606

Profit on disposal of tangible assets
(294,446)
-

Interest paid
423,621
90,120

Interest received
(6,587)
(8)

Taxation charge
964,706
97,779

Decrease/(increase) in stocks
186,868
(108,470)

(Increase) in debtors
(7,014,278)
(1,233,980)

(Decrease)/increase in creditors
(2,292,170)
2,269,636

Increase/(decrease) in provisions
-
(37,575)

Corporation tax (paid)
(377,137)
(727,724)

Foreign exchange
191,164
191

Foreign exchange on consolidation of fixed assets
(103,434)
-

Net cash generated from operating activities

836,677
7,727,134


Cash flows from investing activities

Purchase of intangible fixed assets
-
(9,119)

Purchase of tangible fixed assets
(9,034,167)
(7,660,464)

Sale of tangible fixed assets
675,026
808,985

Interest received
6,587
8

Net cash from investing activities

(8,352,554)
(6,860,590)
Page 13

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


2022
2021

£
£



Cash flows from financing activities

New secured loans
7,453,494
-

Interest paid
(423,621)
(90,120)

Net cash used in financing activities
7,029,873
(90,120)

Net (decrease)/increase in cash and cash equivalents
(486,004)
776,424

Cash and cash equivalents at beginning of year
1,421,166
644,742

Cash and cash equivalents at the end of year
935,162
1,421,166


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
935,162
1,421,166

935,162
1,421,166


The notes on pages 16 to 35 form part of these financial statements.

Page 14

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022




At 1 January 2022
Cash flows
At 31 December 2022
£

£

£

Cash at bank and in hand

1,421,166

(486,004)

935,162

Debt due within 1 year

(1,615,000)

(5,838,494)

(7,453,494)


(193,834)
(6,324,498)
(6,518,332)

The notes on pages 16 to 35 form part of these financial statements.

Page 15

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Subsea Technology and Rentals Limited is a private limited company incorporated in the United Kingdom. The registered office is 28 Albyn Place, Aberdeen, United Kingdom, AB10 1YL.
The principal activity of the Company and Group is the provision of subsea technologies, products and equipment to the offshore renewable and oil and gas industries.

2.Accounting policies

 
2.1

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 judgment in applying the Group's accounting policies (see note 3).

The Group 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.

Parent Company disclosure exemptions

In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:
No Statement of cash flows has been presented for the parent Company;

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

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 Balance sheet, 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.

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the Group has adequate working capital and investment funding to execute its operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The business has prepared detailed financial projections for the next 2 years and has funding in place post the year end to deliver and support these projections.
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.  

Page 16

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 17

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

  
2.8

Pensions

Defined contribution pension plan
The Group contributes to 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 Consolidated statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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 balance sheet 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 balance sheet 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 balance sheet date.

  
2.11

Research and development costs

Research and development expenditure is written off to the Profit and Loss account in the year in which it is incurred.

Page 18

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.12

Foreign currency translation

Functional and presentation currency

The Group's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

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 profit or loss within 'other operating income'.

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.

 
2.13

Intangible assets

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.
Software costs are written over their estimated useful life of 2-4 years.

 
2.14

Tangible fixed assets

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.

Page 19

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.14
Tangible fixed assets (continued)

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:

Long-term leasehold property
-
5 years
Plant and machinery
-
3 - 7 years
Motor vehicles
-
4 years
Office equipment
-
2 - 6 years
Tenant's improvements
-
over the duration of the lease

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 profit or loss.

During the current year the depreciation basis for certain plant and machinery assets was changed to 3-7 years and tenant's improvements to the duration of the lease. The impact of the longer useful life has lead to a decrease in the depreciation charge and subsequent increase in fixed asset value at the year end of £2.7m in the current year. As the updated depreciation policy were implimented from 1 January 2022 the brought forward balances have not been affected.  

 
2.15

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

  
2.16

Stocks and work in progress

Stocks and work in progress are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in first out basis.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.18

Debtors

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.

 
2.19

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.

Page 20

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.20

Financial instruments

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.

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 balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet 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.

 
2.21

Creditors

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.

Page 21

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.22

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.23

Onerous leases

Where the unavoidable costs of a lease exceed the economic benefit expected to be received from it, a provision is made for the present value of the obligations under the lease.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements, requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Balance Sheet date and the amounts reported during the year for revenue and costs. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgements and estimates have had the most significant impact on amounts recognised in the financial statements.
Impairment of debtors
The Group makes an assessment of the recoverable value of trade debtors and other debtors. When assessing impairment of trade and other debtors, management consider various factors including the ageing profile of debtors and historical experience. 
See note 17 for the net carrying amount of the debtors and associated provisions. 
Impairment of stock
When calculating the stock provision, management considers the nature, condition and age profile of the stock, as well as applying assumptions around anticipated future usage based on past experience.  See note 16.
Carrying value of tangible assets 
Management apply judgement in assessment of the estimated useful life and residual value of fixed assets, particularly the rental fleet owned by the Group.  The resultant depreciation charged to the profit and loss account is an estimate of the economic lives of the assets.  See note 14.
 

Page 22

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Rendering of service and sale of goods
24,177,366
19,632,242

24,177,366
19,632,242


No geographical analysis of turnover has been provided as the directors believe this would be prejudicial to the interests of the Group.


5.


Other operating income

2022
2021
£
£

Research & development tax credit
40,069
-

Government grants receivable
6,202
82,386



6.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Exchange differences
(73,839)
(31,493)

Depreciation of tangible fixed assets
2,648,089
4,954,362

Amortisation of intangible assets
3,432
3,402


7.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor:


2022
2021
£
£

Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements
53,500
47,700

Page 23

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2022
2021
£
£


Wages and salaries
3,839,186
4,232,729

Social security costs
404,892
240,844

Cost of defined contribution scheme
182,878
90,442

4,426,956
4,564,015


The average monthly number of employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







Employees
88
64


9.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
-
193,000

-
193,000


For the year to 31 December 2022 all directors were remunerated through the immediate parent company Project Poseidon Bidco Limited.


10.


Interest receivable

2022
2021
£
£


Other interest receivable
6,587
8

6,587
8

Page 24

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Interest payable and similar expenses

2022
2021
£
£


Other interest payable
423,621
90,120

423,621
90,120


12.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
180,312
531,464


180,312
531,464

Foreign tax


Foreign tax on income for the year
118,860
-

118,860
-

Total current tax
299,172
531,464

Deferred tax


Origination and reversal of timing differences
665,534
(433,685)

Total deferred tax
665,534
(433,685)


Tax on profit
964,706
97,779
Page 25

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
6,769,581
2,254,562


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
1,286,220
428,367

Effects of:


Fixed asset differences
(19,121)
(18,132)

Expenses not deductible for tax purposes
6,449
4,551

Additional deduction for R&D expenditure
-
(60,418)

R&D expenditure credits
7,613
-

Additional deduction for land remediation expenditure
-
(2,666)

Adjustments to tax charge in respect of prior periods
75
-

Chargeable gains
9,284
7,788

Adjustments to tax charge in respect of
previous periods - deferred tax
(115)
-

Remeasurement of deferred tax for changes in tax rates
159,737
(261,711)

Group relief
(604,296)
-

Foreign tax
118,860
-

Total tax charge for the year
964,706
97,779

Page 26

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
12.Taxation (continued)


Factors that may affect future tax charges

Increase in the UK Corporation tax rate from 19% to 25% (19% effective from 1 April 2017, and 25% effective from 1 April 2023) have been substantively enacted. This will impact the company's future tax charge accordingly. The value of the deferred tax liability at the balance sheet date has been caclulated using the applicable rate when the liability is expected to be realised.

Research and development above the tax line tax credit is treated as other income, see note 5. The tax charge for the period which has been caculated on the profits on ordinary activities before tax at the standard rate of corporation tax in the UK of 19% (2021 - 19%) prior to research and development and other adjustments.


13.


Intangible assets

Group and Company





Patents
Software
Total

£
£
£



Cost


At 1 January 2022
962
104,345
105,307



At 31 December 2022

962
104,345
105,307



Amortisation


At 1 January 2022
593
98,997
99,590


Charge for the year on owned assets
176
3,256
3,432



At 31 December 2022

769
102,253
103,022



Net book value



At 31 December 2022
193
2,092
2,285



At 31 December 2021
369
5,348
5,717



Page 27

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

14.


Tangible fixed assets

Group






Long-term leasehold property
Plant and machinery
Motor vehicles
Office equipment
Tenant's improvements
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2022
304,609
31,335,192
41,093
213,455
32,746
31,927,095


Additions
336,052
8,441,985
-
110,007
146,123
9,034,167


Disposals
-
(1,139,789)
-
-
-
(1,139,789)


Exchange adjustments
-
121,951
-
2,322
2,825
127,098



At 31 December 2022

640,661
38,759,339
41,093
325,784
181,694
39,948,571



Depreciation


At 1 January 2022
167,279
22,142,234
37,969
174,603
10,376
22,532,461


Charge for the year on owned assets
69,871
2,497,866
2,344
45,007
33,001
2,648,089


Disposals
-
(759,209)
-
-
-
(759,209)


Exchange adjustments
-
21,346
-
1,224
1,094
23,664



At 31 December 2022

237,150
23,902,237
40,313
220,834
44,471
24,445,005



Net book value



At 31 December 2022
403,511
14,857,102
780
104,950
137,223
15,503,566



At 31 December 2021
137,330
9,192,958
3,124
38,852
22,370
9,394,634

Page 28

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

           14.Tangible fixed assets (continued)


Company






Long-term leasehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£

Cost or valuation


At 1 January 2022
304,609
30,150,201
41,093
161,403
30,657,306


Additions
336,052
8,211,599
-
41,792
8,589,443


Disposals
-
(1,110,953)
-
-
(1,110,953)



At 31 December 2022

640,661
37,250,847
41,093
203,195
38,135,796



Depreciation


At 1 January 2022
167,279
21,917,109
37,968
144,382
22,266,738


Charge for the year on owned assets
69,871
2,268,015
2,344
16,486
2,356,716


Disposals
-
(757,208)
-
-
(757,208)



At 31 December 2022

237,150
23,427,916
40,312
160,868
23,866,246



Net book value



At 31 December 2022
403,511
13,822,931
781
42,327
14,269,550



At 31 December 2021
137,330
8,233,092
3,125
17,021
8,390,568






Page 29

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2022
866



At 31 December 2022
866





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Subsea Technology & Rentals Australia Pty Ltd
Unit 1, 30 Fallon Road, Landsdale, WA 6065
Ordinary
100%
STR Asia Pacific PTE Ltd
18 Tampines Industrial Crescent, #03-04, Singapore, 528605
Ordinary
100%
Subsea Technology & Rentals Inc
4543 Brittmoore Road, Houston, City of Houston, Texas, 77041
Ordinary
100%


16.


Stocks

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Raw materials and consumables
1,797,424
1,873,130
1,797,424
1,873,130

Work in progress (goods to be sold)
110,997
222,159
110,997
222,159

1,908,421
2,095,289
1,908,421
2,095,289


Page 30

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

17.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Trade debtors
6,257,447
4,647,111
3,407,830
2,551,983

Amounts owed by group undertakings
5,245,267
-
8,596,063
2,825,237

Other debtors
407,572
323,856
149,328
198,432

Prepayments and accrued income
344,923
269,964
153,867
244,552

Deferred taxation
425,003
1,090,461
425,003
1,090,461

12,680,212
6,331,392
12,732,091
6,910,665


Deferred arising on timing differences will be reversed over a period greater than one year. See note 21.


18.


Cash and cash equivalents

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Cash at bank and in hand
935,162
1,421,166
67,288
970,030

935,162
1,421,166
67,288
970,030



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Bank loans
7,453,494
-
7,453,494
-

Trade creditors
1,361,358
2,886,951
990,750
2,475,049

Amounts owed to group undertakings
-
-
-
19,724

Corporation tax
-
77,889
-
77,889

Other taxation and social security
174,319
139,587
174,319
111,850

Other creditors
177,478
1,664,799
-
1,661,467

Accruals and deferred income
1,391,429
705,417
908,178
537,024

10,558,078
5,474,643
9,526,741
4,883,003


There is a debenture outstanding in favour of the Group's bank.
The loan is combined Loan and accounts receivable facility payable to PNC Business Credit. The loan interest is charged to the Bank of England base rate plus a margin of 2.25% and secured by a fixed charge over the Fixed Assets of the group.

Page 31

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

20.


Financial instruments

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
935,162
1,421,166
67,288
970,030

Financial assets that are debt instruments measured at amortised cost
12,392,218
3,864,675
9,955,135
6,290,230

13,327,380
5,285,841
10,022,423
7,260,260


Financial liabilities

Financial liabilities measured at amortised cost
(10,196,464)
(3,642,167)
(9,703,668)
(2,704,366)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts due from group undertakings and other debtors.


Financial liabilities measured at amortised cost comprise trade creditors, accruals, other creditors and amounts due to group undertakings.

Page 32

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

21.


Deferred taxation


Group



2022
2021


£

£






At beginning of year
1,090,461
656,776


Charged to profit or loss
(665,458)
433,685



At end of year
425,003
1,090,461

Company


2022
2021


£

£






At beginning of year
1,090,461
656,776


Charged to profit or loss
(665,458)
433,685



At end of year
425,003
1,090,461

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Short term timing differences
2,239
1,090,461
2,239
1,090,461

Fixed asset timing differences
422,764
-
422,764
-

425,003
1,090,461
425,003
1,090,461

Page 33

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

22.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



875,000 (2021 - 875,000) Ordinary A shares of £1.00 each
875,000
875,000
97,222 (2021 - 97,222) Ordinary B shares of £1.00 each
97,222
97,222

972,222

972,222

Ordinary A shares have priority over the Ordinary B shares in the event of a liquidation, capital reduction or exit.
The Company may declare or pay a dividend on the Ordinary A shares without declaring or paying a dividend on the Ordinary B shares, or pay or declare a dividend of differing amounts.  When a dividend is declared or paid on the Ordinary B shares, the Company at the same time shall declare or pay a dividend on each of the A Ordinary shares of an amount which is equal to or in excess of the amount per share paid on the Ordinary B shares.



23.


Pension commitments

The Group contributes to a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in independently administered funds. The pension charge represents contributions payable by the Group to the fund and are detailed in note 8.  There were no amounts outstanding at the balance sheet date (2021 - £nil).


24.


Capital commitments




At 31 December 2022 the Group and Company had capital commitments as follows:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Contracted for but not provided in these financial statements
3,532,203
1,068,912
3,532,203
936,335

Page 34

 
SUBSEA TECHNOLOGY & RENTALS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

25.


Commitments under operating leases

At 31 December 2022 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Land & Buildings

Not later than 1 year
344,461
126,735
145,860
126,735

Later than 1 year and not later than 5 years
1,009,645
574,060
506,940
574,060

Later than 5 years
263,227
326,333
263,227
326,333

1,617,333
1,027,128
916,027
1,027,128

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Other commitments

Not later than 1 year
18,647
17,176
1,696
1,891

Later than 1 year and not later than 5 years
42,028
44,523
2,403
-

60,675
61,699
4,099
1,891


26.


Related party transactions

The Company and Group have taken advantage of the exemption available in FRS 102 Section 33 to not disclose transactions with 100% owned subsidiaries. 
There were no related party transactions.
There were no dividends paid during the year.



27.


Controlling party

The company's controlling party and largest consolidated financial statements where Subsea Technology & Rentals Limited is included is that of Project Poseidon Topco Limited, a holding company incorporated in the UK. The financial statements can be obtained from Companies House.
The immediate parent is Project Poseidon Bidco Limited, a company incorporated in the UK. The financial statements can be obtained from Companies House.

Page 35