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Registered number: SC380577













WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED






ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

COMPANY INFORMATION


Directors
DM McGilvray 
MJ McGilvray 
IM McGilvray 
WF Caplan (resigned 27 September 2023)
J Arrowsmith (resigned 9 December 2021)
N Fraser (resigned 9 December 2021)
D Bennett (appointed 9 December 2021, resigned 27 September 2023)
K Cockwill (appointed 9 December 2021, resigned 27 September 2023)




Company secretary
MJ McGilvray



Registered number
SC380577



Registered office
18-20 Harbour Road

Inverness

IV1 1UA




Independent auditor
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Consolidated statement of comprehensive income
10
Consolidated balance sheet
11 - 12
Company balance sheet
13
Consolidated statement of changes in equity
14
Company statement of changes in equity
15
Consolidated statement of cash flows
16
Consolidated analysis of net debt
17
Notes to the financial statements
18 - 36


 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2022

Introduction
 
The directors present their strategic report for the year ended 30 November 2022.

Business review
 
The company acts as a holding company which owns 100% of the share capital Weldex (International) Offshore Limited. The principal activity of the group during the year was the hire and supply of cranes, lifting equipment and labour.  
The trading company has traded profitably and the Directors are pleased with the results.
Weldex (International) Offshore Limited’s profit before taxation amounted to £822k (2021 – loss of £1,250k).   The consolidated group loss before taxation for the year amounted to £4,548k (2021 - £6,491k).  The group loss is a reflection of the financing structure in place, however subsequent to the year end the group has carried out a restructuring exercise which has strengthened the balance sheet. As at 30 November 2022, the group had net liabilities of £42,449k (2021 - £37,685k). 
The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations for a period of at least 12 months from the date of approval of these financial statements. In arriving at their opinion, the directors have considered the financial forecasts and expected cashflows for the group over the relevant period under consideration. The group also retains the support of it's principal finance providers. 
The group contains the largest crawler crane hire company in the UK with a crane fleet including cranes ranging from 40t to 1,350t capacity. By continuing to reinvest in its fleet the group ensures that it has a very modern fleet of cranes allowing it to offer clients the most up to date equipment.
The directors believe the group is well placed to provide services to the renewable, oil and gas and construction sectors.

Principal risks and uncertainties
 
Competition - the group continually invests in new equipment to ensure it can offer clients a wide range of the most up to date equipment, thereby ensuring it stays ahead of its competitors.
Liquidity risk - the group's principal financial instruments are bank balances and hire purchase funding. These are used to raise funds for the group's capital expenditure requirements and to finance the group's ongoing operations.
Credit risk - trade debtors are monitored daily to ensure limits are adhered to. Clear policies are in place for new clients.

Page 1
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022

Financial key performance indicators
 
A range of financial and non-financial key performance Indicators are reviewed by the board including those relating to turnover, gross margin and employee numbers.
 

2022
2021
Measure




Financial



Turnover
21.8
19.0
£millons
Gross profit margin
59
55
Gross profit/ turnover (%)




Non-financial



Employee numbers
106
115
Number of employees



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





................................................
MJ McGilvray
Director

Date: 16 November 2023

Page 2
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2022

The directors present their report and the financial statements for the year ended 30 November 2022.

Results and dividends

The loss for the year, before taxation, amounted to £4,548k (2021 - loss £6,491k).

The directors do not recommend the payment of a dividend for the year ended 30 November 2022 (2021 - £nil).

Directors

The directors who served during the year were:

DM McGilvray 
MJ McGilvray 
IM McGilvray 
WF Caplan (resigned 27 September 2023)
J Arrowsmith (resigned 9 December 2021)
N Fraser (resigned 9 December 2021)
D Bennett (appointed 9 December 2021, resigned 27 September 2023)
K Cockwill (appointed 9 December 2021, resigned 27 September 2023)

Future developments

The directors continue to look for opportunities to grow the business where possible.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the group's auditor is unaware; and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditor is aware of that information.

Post balance sheet events

Subsequent to the year end, the company with the support of its bankers, undertook a restructuring exercise which resulted in the settlement of all Unsecured fixed rate shareholder loan notes payable by the parent company and related accrued loan note interest. As a result, the McGilvray family became the sole controlling party of the group and parent company.

Auditor

The auditor, Anderson Anderson & Brown Audit LLPis deemed to be reappointed in accordance with section 386 of the Companies Act 1985 by virtue of an elective resolution passed by the members on 17 December 2019.

Page 3
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022

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





................................................
MJ McGilvray
Director

Date: 16 November 2023

Page 4
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 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; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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 5
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Weldex (International) Offshore Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2022, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the 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 30 November 2022 and of the group's loss 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 6
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS 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 reportOur 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 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the group'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 7
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS 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 and parent company 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 Employment, Health and Safety and Taxation legislation plus the Companies Act 2006.
We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:
 
Management override of controls to manipulate the group and parent company's key performance indicators to meet targets;
Timing and completeness of revenue recognition;
Management judgement applied in calculating estimates and provisions; and
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading.

Our audit procedures in response to these risks included:

Testing of journal entries and other adjustments for appropriateness;
Evaluating the business rationale of significant transactions outside the normal course of business;
Reviewing judgements made by management in their calculation of accounting estimates and provision for potential management bias;
Enquiries of management about litigation and claims and inspection of relevant correspondence;
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non compliance with laws and regulations; and
Performing a disclosure checklist on the financial statements to ensure Companies Act 2006 requirements are satisfied.


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 8
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED (CONTINUED)

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 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





James Pirrie (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

16 November 2023
Page 9
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2022

2022
2021
Note
£000
£000

  

Turnover
 4 
21,771
18,960

Cost of sales
  
(9,502)
(8,590)

Gross profit
  
12,269
10,370

Administrative expenses
  
(11,850)
(11,574)

Other operating income
 5 
-
78

Operating profit/(loss)
 6 
419
(1,126)

Interest payable and expenses
 10 
(4,967)
(5,365)

Loss before taxation
  
(4,548)
(6,491)

Tax on loss
 11 
(216)
(3,205)

Loss for the financial year
  
(4,764)
(9,696)

(Loss) for the year attributable to:
  

Owners of the parent company
  
(4,764)
(9,696)

There was no other comprehensive income for 2022 (2021 - £nil).

The notes on pages 18 to 36 form part of these financial statements.

Page 10
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED

REGISTERED NUMBER:SC380577

CONSOLIDATED BALANCE SHEET
AS AT 30 NOVEMBER 2022

2022
2021
Note
£000
£000

Fixed assets
  

Intangible assets
 12 
11,340
12,830

Tangible assets
 13 
86,967
95,480

  
98,307
108,310

Current assets
  

Stocks
 15 
253
257

Debtors: amounts falling due within one year
 16 
4,906
3,831

Cash at bank and in hand
 17 
786
2,615

  
5,945
6,703

Creditors: amounts falling due within one year
 18 
(14,343)
(17,404)

Net current liabilities
  
 
 
(8,398)
 
 
(10,701)

Total assets less current liabilities
  
89,909
97,609

Creditors: amounts falling due after more than one year
 19 
(117,840)
(120,992)

Provisions for liabilities
  

Deferred taxation
 23 
(14,518)
(14,302)

  
 
 
(14,518)
 
 
(14,302)

Net liabilities
  
(42,449)
(37,685)


Capital and reserves
  

Called up share capital 
 24 
10
10

Share premium account
 25 
951
951

Profit and loss account
 25 
(43,410)
(38,646)

Equity attributable to owners of the parent company
  
(42,449)
(37,685)


Page 11
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED

REGISTERED NUMBER:SC380577

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 NOVEMBER 2022

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




................................................
MJ McGilvray
Director

Date: 16 November 2023

The notes on pages 18 to 36 form part of these financial statements.

Page 12
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED

REGISTERED NUMBER:SC380577

COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2022

2022
2021
Note
£000
£000

Fixed assets
  

Investments
 14 
57,746
57,746

  
57,746
57,746

Current assets
  

Debtors: amounts falling due within one year
 16 
1,074
1,227

Cash at bank and in hand
 17 
14
6

  
1,088
1,233

Creditors: amounts falling due within one year
 18 
(1,057)
(1,055)

Net current assets
  
 
 
31
 
 
178

Total assets less current liabilities
  
57,777
57,924

  

Creditors: amounts falling due after more than one year
 19 
(97,991)
(94,617)

  

Net liabilities
  
(40,214)
(36,693)


Capital and reserves
  

Called up share capital 
 24 
10
10

Share premium account
 25 
951
951

Profit and loss account brought forward
  
(37,654)
(34,270)

Loss for the year

  

(3,521)
(3,384)

Profit and loss account carried forward
  
(41,175)
(37,654)

  
(40,214)
(36,693)


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




................................................
MJ McGilvray
Director

Date: 16 November 2023

The notes on pages 18 to 36 form part of these financial statements.

Page 13
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 December 2020
10
951
(28,950)
(27,989)



Loss for the year
-
-
(9,696)
(9,696)



At 1 December 2021
10
951
(38,646)
(37,685)



Loss for the year
-
-
(4,764)
(4,764)


At 30 November 2022
10
951
(43,410)
(42,449)


The notes on pages 18 to 36 form part of these financial statements.

Page 14
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 December 2020
10
951
(34,270)
(33,309)



Loss for the year
-
-
(3,384)
(3,384)



At 1 December 2021
10
951
(37,654)
(36,693)



Loss for the year
-
-
(3,521)
(3,521)


At 30 November 2022
10
951
(41,175)
(40,214)


The notes on pages 18 to 36 form part of these financial statements.

Page 15
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2022

2022
2021
£000
£000

Cash flows from operating activities

Loss for the financial year
(4,764)
(9,696)

Adjustments for:

Amortisation of intangible assets
1,492
1,492

Depreciation of tangible assets
7,229
7,482

Gain on disposal of tangible assets
(174)
(438)

Government grants
-
(78)

Interest paid
4,967
5,364

Taxation charge
216
3,205

Decrease in stocks
4
10

(Increase) in debtors
(1,075)
(299)

(Decrease) in creditors
(2,155)
(1,635)

Foreign exchange
(26)
(53)

Net cash generated from operating activities

5,714
5,354


Cash flows from investing activities

Purchase of tangible fixed assets
(1,264)
(4,931)

Sale of tangible fixed assets
2,722
6,240

Government grants received
-
78

Net cash from investing activities

1,458
1,387

Cash flows from financing activities

Repayment of/new finance leases
(8,302)
(9,895)

Interest paid
(1,601)
(1,998)

Net cash used in financing activities
(9,903)
(11,893)

Net (decrease) in cash and cash equivalents
(2,731)
(5,152)

Cash and cash equivalents at beginning of year
131
5,283

Cash and cash equivalents at the end of year
(2,600)
131


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
786
2,615

Bank overdrafts
(3,386)
(2,484)

(2,600)
131


The notes on pages 18 to 36 form part of these financial statements.

Page 16
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 NOVEMBER 2022




At 1 December 2021
Cash flows
At 30 November 2022
£000

£000

£000

Cash at bank and in hand

2,615

(1,829)

786

Bank overdrafts

(2,484)

(902)

(3,386)

Debt due after 1 year

(56,100)

-

(56,100)

Finance leases

(37,088)

8,302

(28,786)


(93,057)
5,571
(87,486)

The notes on pages 18 to 36 form part of these financial statements.

Page 17
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

1.


General information

Weldex (International) Offshore Holdings Limited is a private company incorporated, domiciled and registered in Scotland in the UK. The registered number is SC380577 and the registered address is 18-20 Harbour Road, Inverness, Scotland, IV1 1UA.

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 judgement in applying the group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

  
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 group reported a loss before tax of £4,548k (2021 - £6,491k) and as at 30 November 2022 has net liabilities of £42,233k (2021 - £37,685k). These results are a reflection of the financing structure of the group and the directors remain confident that the underlying business is trading successfully. Subsequent to the year end, the parent company underwent a restructuring exercise which has strengthened the balance sheet. 
The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations for a period of at least 12 months from the date of approval of these financial statements. In arriving at their opinion, the directors have considered the financial forecasts and expected cashflows for the group over the relevant period under consideration. The group also retains the support of its principal finance providers. 
The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements. 

Page 18
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company'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.

 
2.5

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:

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.

 
2.6

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.

 
2.7

Leased assets: the group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 19
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

2.Accounting policies (continued)

 
2.8

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.

 
2.9

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.

 
2.10

Borrowing costs

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

 
2.11

Pensions

Defined contribution pension plan

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in profit or loss 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 group in independently administered funds.

Page 20
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

2.Accounting policies (continued)

 
2.12

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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.

  
2.13

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

 
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.

At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 21
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 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:

Freehold property
-
2%
per annum on cost
Plant and machinery - Cranes
-
7%
per annum on cost
Plant and machinery - Other
-
25%
per annum on reducing balance
Motor vehicles
-
25%
per annum on reducing balance basis

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

Stocks

Stocks 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. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

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.

 
2.18

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.

 
2.19

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 22
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

2.Accounting policies (continued)

 
2.20

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.

 
2.21

Financial instruments

The group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's Balance sheet when the group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. 
Page 23
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

2.Accounting policies (continued)


2.21
Financial instruments (continued)


Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Page 24
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the 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:
Fixed asset impairment
The carrying amounts of the group's assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit"(CGU)).
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Fixed asset depreciation
Depreciation is calculated using the straight line method for freehold property, and reducing balance for motor vehicles and plant & machinery, with the exception of Cranes which are depreciated using the straight line method.
Bad debt provision
Management estimates the bad debt provision by paying due consideration to the ageing of debt, the credit rating of customers and historical experience of customers under review.


4.


Turnover

All turnover in the current and prior period is attributable to the group's principal activity. 

Analysis of turnover by country of destination:

2022
2021
£000
£000

United Kingdom
21,771
18,960

21,771
18,960


Page 25
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

5.


Other operating income

2022
2021
£000
£000

Government grants receivable
-
78

-
78



6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2022
2021
£000
£000

Depreciation of tangible fixed assets
7,229
7,482

Foreign exchange (gain) / loss
(26)
(54)

Profit on disposal of tangible fixed assets
(174)
(438)

Amortisation of goodwill
1,492
1,492

Rentals payable under operating leases
30
30

Government grants released/received
-
(78)

5,855
6,422


7.


Auditor's remuneration

During the year, the group obtained the following services from the company's auditor:


2022
2021
£000
£000

Fees payable to the parent company's auditor for the audit of the consolidated and parent company's financial statements

6
5

Fees payable to the group's auditor and its associates in respect of:

Audit of financial statements of subsidiaries
27
24

Other services relating to taxation
9
8

Page 26
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

8.


Employees

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


Group
Group
2022
2021
£000
£000


Wages and salaries
6,370
6,583

Social security costs
716
697

Cost of defined contribution scheme
301
315

7,387
7,595


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


        2022
        2021
            No.
            No.







Operational
84
93



Administrative
22
22

106
115


9.


Directors' remuneration

2022
2021
£000
£000

Directors' emoluments
546
546

Group contributions to defined contribution pension schemes
19
19

565
565


During the year retirement benefits were accruing to 2 directors (2021 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £172k (2021 - £172k).

The value of the group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £9k (2021 - £9k).

Page 27
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

10.


Interest payable and similar expenses

2022
2021
£000
£000


Bank interest payable
104
35

Other interest payable
3,366
3,366

Finance leases and hire purchase contracts
1,497
1,964

4,967
5,365


11.


Taxation


2022
2021
£000
£000

Deferred tax


Origination and reversal of timing differences
216
(300)

Effects of tax rate change on opening balances
-
3,505

Total deferred tax
216
3,205


Taxation on profit on ordinary activities
216
3,205

Factors affecting tax charge for the year

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

2022
2021
£000
£000


Loss on ordinary activities before tax
(4,548)
(4,636)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
(864)
(881)

Effects of:


Expenses not deductible for tax purposes
591
209

Fixed asset differences
(6)
8

Chargeable gains/(losses)
9
-

Remeasurement of deferred tax for changes in tax rates
(85)
-

Dividends from UK companies
-
2,210

Deferred tax not recognised
571
1,658

Other permanent differences
-
1

Total tax charge for the year
216
3,205

Page 28
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
 
11.Taxation (continued)


Factors that may affect future tax charges

The March 2021 budget announced an increase to the main rate of corporation tax to 25% from April 2023. This increase in rate will have an impact on future tax charges. The deferred tax charge has been calculated based on the rate of 25%.


12.


Intangible assets

Group





Goodwill

£000



Cost


At 1 December 2021
29,831



At 30 November 2022

29,831



Amortisation


At 1 December 2021
17,000


Charge for the year on owned assets
1,492



At 30 November 2022

18,492



Net book value



At 30 November 2022
11,339



At 30 November 2021
12,832



Page 29
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

13.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Total

£000
£000
£000
£000



Cost or valuation


At 1 December 2021
2,781
137,825
425
141,031


Additions
-
1,161
103
1,264


Disposals
-
(4,127)
(46)
(4,173)



At 30 November 2022

2,781
134,859
482
138,122



Depreciation


At 1 December 2021
818
44,478
255
45,551


Charge for the year on owned assets
56
3,519
55
3,630


Charge for the year on financed assets
-
3,599
-
3,599


Disposals
-
(1,584)
(41)
(1,625)



At 30 November 2022

874
50,012
269
51,155



Net book value



At 30 November 2022
1,907
84,847
213
86,967



At 30 November 2021
1,963
93,347
170
95,480

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2022
2021
£000
£000



Plant and machinery
52,855
66,906

52,855
66,906

Page 30
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

14.


Fixed asset investments

Company





Investments in subsidiary companies

£000



Cost or valuation


At 1 December 2021
57,746



At 30 November 2022
57,746





Subsidiary undertaking


The following was a subsidiary undertaking of the company:

Name

Registered office

Class of shares

Holding

Weldex (International) Offshore Limited
18-20 Harbour Road  Inverness  IV1 1UA
Ordinary
100%


15.


Stocks

Group
Group
2022
2021
£000
£000

Raw materials and consumables
253
257


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 31
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

16.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£000
£000
£000
£000


Trade debtors
4,694
2,764
-
-

Amounts owed by group undertakings
-
-
1,069
1,223

Other debtors
-
652
-
-

Prepayments and accrued income
212
415
5
4

4,906
3,831
1,074
1,227


Amounts owed by group undertakings are interest free and repayable on demand.


17.


Cash and cash equivalents

Group
Group
Company
Company
2022
2021
2022
2021
£000
£000
£000
£000

Cash at bank and in hand
786
2,615
14
6

Less: bank overdrafts
(3,386)
(2,484)
-
-

(2,600)
131
14
6



18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2022
2021
2022
2021
£000
£000
£000
£000

Bank overdrafts
3,386
2,484
-
-

Trade creditors
1,336
1,023
-
-

Amounts owed to group undertakings
-
-
1,055
1,055

Other taxation and social security
206
182
2
-

Obligations under finance lease and hire purchase contracts
8,937
10,712
-
-

Other creditors
-
2,692
-
-

Accruals and deferred income
478
311
-
-

14,343
17,404
1,057
1,055


Amounts owed to group undertakings are interest free and repayable on demand.

Page 32
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2022
2021
2022
2021
£000
£000
£000
£000

Unsecured fixed rate shareholder loan notes
37,903
37,903
37,903
37,903

Obligations under finance leases and hire purchase contracts
19,849
26,375
-
-

Accruals and deferred income
41,891
38,517
41,891
38,517

Share capital treated as debt
182
182
182
182

Share premium treated as debt
18,015
18,015
18,015
18,015

117,840
120,992
97,991
94,617


Disclosure of the terms and conditions attached to the non-equity shares is made in note 24.

The shareholder loan notes and preference shares bear interest at 6%. The loan notes are due for repayment within 12 months of the year end and have been settled in full.


20.


Loans


Group
Group
Company
Company
2022
2021
2022
2021
£000
£000
£000
£000


Amounts falling due after more than 5 years

Unsecured fixed rate shareholder loan notes
37,903
37,903
37,903
37,903

37,903
37,903
37,903
37,903



21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2022
2021
£000
£000

Within one year
8,937
10,712

Between 1-5 years
18,808
21,359

Over 5 years
1,041
5,017

28,786
37,088

Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate and bear interest at a range of 3% - 5%.

Page 33
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

22.


Financial instruments

Group
Group
Company
Company
2022
2021
2022
2021
£000
£000
£000
£000

Financial assets

Financial assets measured at fair value through profit or loss
786
2,615
14
6

Financial assets that are debt instruments measured at amortised cost
4,694
2,764
-
-

5,480
5,379
14
6


Financial liabilities

Financial liabilities measured at amortised cost
(114,286)
(120,381)
(79,976)
(76,602)


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


Financial assets that are debt instruments measured at amortised cost is comprised of trade debtors.


Financial liabilities measured at amortised cost comprise of trade creditors, accruals and other creditors.


23.


Deferred taxation


Group



2022


£000






At beginning of year
14,302


Charged to profit or loss
(216)



At end of year
14,518

The provision for deferred taxation is made up as follows:

Group
Group
2022
2021
£000
£000

Accelerated capital allowances
16,412
16,888

Other
(1,894)
(2,586)

14,518
14,302

Page 34
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

24.


Share capital

2022
2021
£
£
Shares classified as equity

Allotted, called up and fully paid



611,631 (2021 - 611,631) A Ordinary shares shares of £0.01 each
6,116
6,116
288,370 (2021 - 288,370) B Ordinary shares shares of £0.01 each
2,884
2,884
60,000 (2021 - 60,000) C Ordinary shares shares of £0.01 each
600
600

9,600

9,600

2022
2021
£
£
Shares classified as debt

Allotted, called up and fully paid



18,196,846 (2021 - 18,196,846) 6% cumulative redeemable preference shares shares of £0.01 each
181,968
181,968


The A, B and C Ordinary shares rank pari passu except in an Event of Default as set out in the Company's Articles Of Association. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. 


25.


Reserves

Share premium account

This reserve records the amount above nominal value received in respect of the company's share capital.

Profit and loss account

This reserve records the accumulated distributable profits and losses made by the group and parent company net of distributions to shareholders. 


26.


Pension commitments

The group operates a defined contribution pension plan. The total expense relating to these plans in the current year was £301k (2021 - £315k). Outstanding contributions accrued at the year end amounted to £nil (2021 - £nil).


27.


Commitments under operating leases

At 30 November 2022, the group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2022
2021
£000
£000

Not later than 1 year
30
30
Page 35
 

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022

28.


Related party transactions

The company has taken advantage of the exemption, in FRS 102 Section 33, from disclosing related party transactions with other companies that are wholly owned. 
During the period the group recharged expenses of £2k (2021 - £4k) to an entity under common ownership. At the year end £nil (2021 - £nil) was included in trade debtors.
During the period the group paid rent of £30k (2021 - £30k) to entities under common ownership. At the year end amounts outstanding were £nil (2021 - £nil).
During the period the group paid management charges of £56k (2021 - £54k) to entities under common ownership. At the year end amounts outstanding were £nil (2021 - £nil).
During the period the group paid management charges of £20k (2021 - £20k) to entities under common ownership. At the year end amounts outstanding were £nil (2021 - £nil).
The company has no related undertakings other than its subsidiary as disclosed in note 14.


29.


Guarantees and security

The bank retains a floating charge over the freehold property of the group as at 30 November 2022.

30.


Post balance sheet events

Subsequent to the year end, the company with the support of its bankers, undertook a restructuring exercise which resulted in the settlement of all Unsecured fixed rate shareholder loan notes payable by the parent company and related accrued loan note interest. As a result, the McGilvray family became the sole controlling party of the group and parent company.


31.


Controlling party

The group and parent company was under the control of the McGilvray family and Dunedin LLP throughout the current and previous year. 
Subsequent to the year end, the McGilvray family became the sole controlling party of the group and parent company.

Page 36