REGISTERED NUMBER: 02226135 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 28th February 2023 |
for |
MMS Ship Repair and Dry Dock Co. Ltd |
REGISTERED NUMBER: 02226135 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 28th February 2023 |
for |
MMS Ship Repair and Dry Dock Co. Ltd |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Contents of the Consolidated Financial Statements |
for the year ended 28th February 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 | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
MMS Ship Repair and Dry Dock Co. Ltd |
Company Information |
for the year ended 28th February 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Princes House |
Wright Street |
Hull |
East Yorkshire |
HU2 8HX |
BANKERS: | Virgin Money |
214 Holderness Road |
Kingston Shopping Centre |
Hull |
HU9 2AA |
SOLICITORS: |
Essex House |
Hull |
HU1 1XH |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Group Strategic Report |
for the year ended 28th February 2023 |
The directors present their strategic report of the company and the group for the year ended 28th February 2023. |
REVIEW OF BUSINESS |
The key performance indicators of turnover, turnover growth and net profit before taxation communicate the financial performance of the group as a whole. |
The key performance indicators for the last four years are as follows: |
2023 | 2022 | 2021 | 2020 |
£ |
Turnover | 7,020,459 | 5,457,068 | 5,713,731 | 6,333,238 |
Turnover Growth | 28.64% | -4.49% | -9.78% | 22.89% |
Profit before tax | 727,942 | 184,202 | 635,843 | 952,470 |
Profit before tax margin | 10.37% | 3.38% | 11.13% | 15.04% |
The significant increase in group turnover was mainly due to improved contribution by the subsidiary operating the offshore supply vessel fleet. |
As expected the turnover of the subsidiary increased by 85.5% due to having all vessels fully operational throughout the financial year resulting in a company profit of £274,057 (2022 Loss £351,591) |
The main trading company operating the ship repair and dry dock facility continued to perform well with turnover up 10.4% although with some reduction in gross margin due to increased wages costs. Some essential yard and dry dock repairs were carried out in the final quarter resulting in a reduced company profit of £454,060 (2022: £535,793) |
The directors are pleased to report a substantial increase in group profit compared with the previous financial year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds and finance the company's operations. |
Price risk |
Due to the well located and varied operations of the group, there is a minimal amount of price risk. |
Foreign exchange risk |
The group has a small amount of exposure to foreign exchange risks. These are considered to be an immaterial amount in the company's transactions. |
Credit risk |
The group has little experience of material bad debts in general and therefore does not consider credit risk to be significant. |
Liquidity risk |
The group's liquidity risk is managed by ensuring sufficient funds are available to meet amounts due and does not consider that liquidity poses a significant risk. |
Interest rate and cash flow risk |
The group had a favourable cash balance during the year and therefore does not consider that interest rates or cash flow pose a significant risk. |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Group Strategic Report |
for the year ended 28th February 2023 |
FUTURE DEVELOPMENTS |
The ship repair and dry dock facility is continuing to perform well as the market gains momentum. Oil and gas fields in the North Sea are seeing buoyant times once again as the Russia and Ukraine conflict has pushed countries to explore, develop and carry out secondary recovery of existing oil and gas fields. More vessels operating in the North Sea has increased docking enquiries. In addition there is an increasing number of offshore wind support vessels operating in the North Sea and the location of the MMS facility is ideal for attracting work. |
With the UK general cargo fleet also increasing due to improved freight rates and government incentives the directors expect the company to benefit from increased demand. |
The offshore support vessel fleet operation continues to build strong relationships with main customers who have confidence in the reliability of the company to provide three very well maintained vessels with regular crews. Having a back up maintenance facility within the group is also a great assurance for customers. The fleet mainly works out of the home port of Grimsby but has also operated from Lowestoft, the Thames, Scotland and UK west coast when required to. |
The directors are anticipating further growth and contribution from this subsidiary company. |
ON BEHALF OF THE BOARD: |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Report of the Directors |
for the year ended 28th February 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 28th February 2023. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the year under review were those of ship repairing, maintenance and fabrication, marine engineering, workboat building and hire of vessels. |
DIVIDENDS |
An interim dividend of £20.20202 per share was paid on 28th February 2023. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 28th February 2023 will be £ 2,000 . |
FUTURE DEVELOPMENTS |
These details have been provided in the company's strategic report. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st March 2022 to the date of this report. |
FINANCIAL INSTRUMENTS |
The group's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds and finance the group's operations. |
Revenue Maintenance |
The group actively markets and manages its services to focus on revenue building and maintenance which can contribute to the future profits of the business. |
Risks and uncertainties |
These details have been provided in the group's strategic report. |
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. |
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Report of the Directors |
for the year ended 28th February 2023 |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Sadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
MMS Ship Repair and Dry Dock Co. Ltd |
Opinion |
We have audited the financial statements of MMS Ship Repair and Dry Dock Co. Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 28th February 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 28th February 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. |
Report of the Independent Auditors to the Members of |
MMS Ship Repair and Dry Dock Co. Ltd |
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, 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. |
Report of the Independent Auditors to the Members of |
MMS Ship Repair and Dry Dock Co. Ltd |
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 as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the manufacturing sector; |
- we 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, UK tax legislation, and data protection, anti-bribery, employment, environmental, health and safety legislation along with industry specific regulations and requirements. |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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 as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 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 set out in note 2 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 HMRC, relevant regulators, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware 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. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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. |
Report of the Independent Auditors to the Members of |
MMS Ship Repair and Dry Dock Co. Ltd |
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. |
for and on behalf of |
Statutory Auditors |
Princes House |
Wright Street |
Hull |
East Yorkshire |
HU2 8HX |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Consolidated |
Statement of Comprehensive |
Income |
for the year ended 28th February 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 7,020,459 | 5,457,068 |
Cost of sales | 4,482,574 | 3,631,841 |
GROSS PROFIT | 2,537,885 | 1,825,227 |
Administrative expenses | 1,650,757 | 1,510,417 |
887,128 | 314,810 |
Other operating income | - | 51,598 |
OPERATING PROFIT | 5 | 887,128 | 366,408 |
Interest receivable and similar income | 2,418 | 4 |
889,546 | 366,412 |
Interest payable and similar expenses | 6 | 161,604 | 182,210 |
PROFIT BEFORE TAXATION | 727,942 | 184,202 |
Tax on profit | 7 | 438,605 | (51,772 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
289,337 |
235,974 |
Profit attributable to: |
Owners of the parent | 289,337 | 235,974 |
Total comprehensive income attributable to: |
Owners of the parent | 289,337 | 235,974 |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Consolidated Balance Sheet |
28th February 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 7,592,915 | 8,079,943 |
Investments | 11 | - | - |
7,592,915 | 8,079,943 |
CURRENT ASSETS |
Stocks | 12 | 3,782,304 | 3,772,355 |
Debtors | 13 | 807,382 | 836,691 |
Cash at bank | 885,059 | 1,195,378 |
5,474,745 | 5,804,424 |
CREDITORS |
Amounts falling due within one year | 14 | 1,538,514 | 2,694,859 |
NET CURRENT ASSETS | 3,936,231 | 3,109,565 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
11,529,146 |
11,189,508 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(3,166,512 |
) |
(3,556,006 |
) |
PROVISIONS FOR LIABILITIES | 19 | (898,992 | ) | (457,197 | ) |
NET ASSETS | 7,463,642 | 7,176,305 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100 | 100 |
Retained earnings | 7,463,542 | 7,176,205 |
SHAREHOLDERS' FUNDS | 7,463,642 | 7,176,305 |
The financial statements were approved by the Board of Directors and authorised for issue on 1st November 2023 and were signed on its behalf by: |
R S Langton - Director |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Company Balance Sheet |
28th February 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 361,534 | 520,763 |
The financial statements were approved by the Board of Directors and authorised for issue on |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Consolidated Statement of Changes in Equity |
for the year ended 28th February 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st March 2021 | 100 | 6,942,231 | 6,942,331 |
Changes in equity |
Dividends | - | (2,000 | ) | (2,000 | ) |
Total comprehensive income | - | 235,974 | 235,974 |
Balance at 28th February 2022 | 100 | 7,176,205 | 7,176,305 |
Changes in equity |
Dividends | - | (2,000 | ) | (2,000 | ) |
Total comprehensive income | - | 289,337 | 289,337 |
Balance at 28th February 2023 | 100 | 7,463,542 | 7,463,642 |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Company Statement of Changes in Equity |
for the year ended 28th February 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st March 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28th February 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28th February 2023 |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Consolidated Cash Flow Statement |
for the year ended 28th February 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 421,791 | 544,397 |
Interest paid | (160,549 | ) | (177,990 | ) |
Interest element of hire purchase payments paid |
(1,055 |
) |
(4,220 |
) |
Tax (paid)/received | 3,190 | - |
Net cash from operating activities | 263,377 | 362,187 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (8,341 | ) | (110,000 | ) |
Sale of tangible fixed assets | 105,039 | - |
Interest received | 2,418 | 4 |
Net cash from investing activities | 99,116 | (109,996 | ) |
Cash flows from financing activities |
Capital repayments in year | (432,195 | ) | (462,256 | ) |
Amount introduced by directors | - | 151,304 |
Amount withdrawn by directors | (238,617 | ) | - |
Equity dividends paid | (2,000 | ) | (2,000 | ) |
Net cash from financing activities | (672,812 | ) | (312,952 | ) |
Decrease in cash and cash equivalents | (310,319 | ) | (60,761 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,195,378 |
1,256,139 |
Cash and cash equivalents at end of year | 2 | 885,059 | 1,195,378 |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 28th February 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 727,942 | 184,202 |
Depreciation charges | 389,605 | 394,815 |
Loss on disposal of fixed assets | 725 | - |
Finance costs | 161,604 | 182,210 |
Finance income | (2,418 | ) | (4 | ) |
1,277,458 | 761,223 |
Increase in stocks | (9,949 | ) | (1,349,527 | ) |
Decrease in trade and other debtors | 29,309 | 216,896 |
(Decrease)/increase in trade and other creditors | (875,027 | ) | 915,805 |
Cash generated from operations | 421,791 | 544,397 |
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 28th February 2023 |
28/2/23 | 1/3/22 |
£ | £ |
Cash and cash equivalents | 885,059 | 1,195,378 |
Year ended 28th February 2022 |
28/2/22 | 1/3/21 |
£ | £ |
Cash and cash equivalents | 1,195,378 | 1,256,139 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/3/22 | Cash flow | At 28/2/23 |
£ | £ | £ |
Net cash |
Cash at bank | 1,195,378 | (310,319 | ) | 885,059 |
1,195,378 | (310,319 | ) | 885,059 |
Debt |
Finance leases | (15,833 | ) | 15,833 | - |
Debts falling due within 1 year | (416,362 | ) | 26,868 | (389,494 | ) |
Debts falling due after 1 year | (3,556,006 | ) | 389,494 | (3,166,512 | ) |
(3,988,201 | ) | 432,195 | (3,556,006 | ) |
Total | (2,792,823 | ) | 121,876 | (2,670,947 | ) |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Notes to the Consolidated Financial Statements |
for the year ended 28th February 2023 |
1. | STATUTORY INFORMATION |
MMS Ship Repair and Dry Dock Co. Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Short leasehold | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Catamaran Support Vessel | - |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
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. |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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 profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss 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. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Repairs, maintenance and build | 4,671,503 | 4,241,157 |
Hire of vessels | 2,348,956 | 1,215,911 |
7,020,459 | 5,457,068 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,206,474 | 2,071,848 |
Social security costs | 243,875 | 213,525 |
Other pension costs | 49,746 | 49,502 |
2,500,095 | 2,334,875 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Sales and administration | 12 | 10 |
Operational | 47 | 47 |
The average number of employees by undertakings that were proportionately consolidated during the year was 10 (2022 - 13 ) . |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration | 42,086 | 42,085 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 290,381 | 294,301 |
Depreciation - owned assets | 373,726 | 331,815 |
Depreciation - assets on hire purchase contracts | 15,879 | 63,000 |
Loss on disposal of fixed assets | 725 | - |
Auditors' remuneration | 8,885 | 7,750 |
Foreign exchange differences | (1,062 | ) | (187 | ) |
Formation costs | 175 | - |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 160,549 | 177,990 |
Hire purchase interest | 1,055 | 4,220 |
161,604 | 182,210 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | (3,190 | ) | - |
Deferred taxation | 441,795 | (51,772 | ) |
Tax on profit | 438,605 | (51,772 | ) |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge/(credit) 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 | 727,942 | 184,202 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
138,309 |
34,998 |
Effects of: |
Expenses not deductible for tax purposes | 3,253 | 1,539 |
Capital allowances in excess of depreciation | (67,652 | ) | (111,626 | ) |
Adjustments to tax charge in respect of previous periods | 82,739 | (51,772 | ) |
Losses carried forward | 67,176 | 75,089 |
Loss on sale of fixed assets | 138 | - |
Depreciation on non-qualifying assets | 2,075 | - |
Effective change in tax provision rate | 215,757 | - |
R&D credit | (3,190 | ) | - |
Total tax charge/(credit) | 438,605 | (51,772 | ) |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Interim Ordinary | 2,000 | 2,000 |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Short | Long | to | Plant and |
leasehold | leasehold | property | machinery |
£ | £ | £ | £ |
COST |
At 1st March 2022 | 640,092 | 105,764 | 469,902 | 1,305,794 |
Additions | - | - | - | - |
Disposals | - | (105,764 | ) | - | - |
At 28th February 2023 | 640,092 | - | 469,902 | 1,305,794 |
DEPRECIATION |
At 1st March 2022 | 313,459 | - | 374,673 | 1,180,445 |
Charge for year | 5,625 | - | 22,376 | 66,044 |
At 28th February 2023 | 319,084 | - | 397,049 | 1,246,489 |
NET BOOK VALUE |
At 28th February 2023 | 321,008 | - | 72,853 | 59,305 |
At 28th February 2022 | 326,633 | 105,764 | 95,229 | 125,349 |
Fixtures | Catamaran |
and | Motor | Support |
fittings | vehicles | Vessel | Totals |
£ | £ | £ | £ |
COST |
At 1st March 2022 | - | 142,818 | 8,250,316 | 10,914,686 |
Additions | 8,341 | - | - | 8,341 |
Disposals | - | - | - | (105,764 | ) |
At 28th February 2023 | 8,341 | 142,818 | 8,250,316 | 10,817,263 |
DEPRECIATION |
At 1st March 2022 | - | 105,202 | 860,964 | 2,834,743 |
Charge for year | 965 | 19,584 | 275,011 | 389,605 |
At 28th February 2023 | 965 | 124,786 | 1,135,975 | 3,224,348 |
NET BOOK VALUE |
At 28th February 2023 | 7,376 | 18,032 | 7,114,341 | 7,592,915 |
At 28th February 2022 | - | 37,616 | 7,389,352 | 8,079,943 |
The net book value of tangible fixed assets includes £NIL (2022 - £ 121,167 ) in respect of assets held under hire purchase contracts. |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements |
Short | Long | to | Plant and |
leasehold | leasehold | property | machinery |
£ | £ | £ | £ |
COST |
At 1st March 2022 |
Additions |
Disposals | ( |
) |
At 28th February 2023 |
DEPRECIATION |
At 1st March 2022 |
Charge for year |
At 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
Fixtures | Catamaran |
and | Motor | Support |
fittings | vehicles | Vessel | Totals |
£ | £ | £ | £ |
COST |
At 1st March 2022 |
Additions |
Disposals | ( |
) |
At 28th February 2023 |
DEPRECIATION |
At 1st March 2022 |
Charge for year |
At 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
The net book value of tangible fixed assets includes £NIL (2022 - £ 121,167 ) in respect of assets held under hire purchase contracts. |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1st March 2022 |
and 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: North East Corner, Alexandra Dock, Hull, East Yorkshire, HU9 ITA |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
Registered office: North East Corner, Alexandra Dock, Hull, East Yorkshire, HU9 ITA |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) |
Loss for the year | ( |
) |
12. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 50,000 | 50,000 |
Work-in-progress | 3,732,304 | 3,722,355 |
3,782,304 | 3,772,355 |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 538,393 | 575,014 |
Amounts owed by group undertakings | - | - |
Other debtors | 300 | - |
VAT | 92,231 | 88,522 |
Prepayments | 176,458 | 173,155 |
807,382 | 836,691 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 389,494 | 416,362 |
Hire purchase contracts (see note 17) | - | 15,833 |
Trade creditors | 466,721 | 517,412 |
Social security and other taxes | 39,486 | 42,455 |
Other creditors | 15,253 | 6,063 |
Directors' current accounts | 257,960 | 496,577 | 157,960 | 396,577 |
Accruals and deferred income | 369,600 | 1,200,157 |
1,538,514 | 2,694,859 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) | 3,166,512 | 3,556,006 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 389,494 | 416,362 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 3,166,512 | 1,893,440 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 1,662,566 |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year | - | 16,888 |
Finance charges repayable: |
Within one year | - | 1,055 |
Net obligations repayable: |
Within one year | - | 15,833 |
Company |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year |
Finance charges repayable: |
Within one year |
Net obligations repayable: |
Within one year |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 253,193 | 253,193 |
Between one and five years | 890,105 | 922,105 |
In more than five years | 884,772 | 1,105,965 |
2,028,070 | 2,281,263 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts | - | 15,833 | - | 15,833 |
MMS Ship Repair and Dry Dock Co. Ltd (Registered number: 02226135) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred taxation | 898,992 | 457,197 | 350,831 | 258,305 |
Group |
Deferred |
tax |
£ |
Balance at 1st March 2022 | 457,197 |
Movement during the year | 441,795 |
Balance at 28th February 2023 | 898,992 |
Company |
Deferred |
tax |
£ |
Balance at 1st March 2022 |
Movement in year | 92,526 |
Balance at 28th February 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
At the year end the group owed £257,960 (2022: £496,577) to R. S. Langton, a director of the group. |
22. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £2,000 were paid to the directors . |
During the year, the company charged a management fee of £120,000 (2022 : £120,000) to MMS Offshore Renewable Services Limited, a wholly owned subsidiary of MMS Ship Repair and Dry Dock Co. Ltd. |
At the year end, the company was owed £730,331 (2022 : £617,896) from MMS Offshore Renewable Services Limited and was owed £175 (2022 : £0) from MMS Workboats Limited. |
During the year, the company traded on normal commercial terms with MMS Offshore Renewable Services Limited. The company made sales of £158,758 (2022 : £132,048) and purchases of £0 (2022 : £50,000) with MMS Offshore Renewable Services Limited. There were no sales or purchases made to or from MMS Workboats Limited. |
23. | ULTIMATE CONTROLLING PARTY |
The controlling party is R S Langton. |