Company registration number SC221499
GROAQUA LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
GROAQUA LIMITED
CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page
Balance sheet
1
Notes to the financial statements
2 - 10
GROAQUA LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
20,763
14,208
Tangible assets
5
181,172
197,160
Investments
6
40,202
40,200
242,137
251,568
Current assets
Stocks
751,414
1,023,079
Debtors
9
1,938,605
2,391,455
Cash at bank and in hand
338,125
845,445
3,028,144
4,259,979
Creditors: amounts falling due within one year
Loans and overdrafts
200,000
Taxation and social security
401,014
386,230
Other creditors
10
2,107,528
3,278,438
2,508,542
3,864,668
Net current assets
519,602
395,311
Total assets less current liabilities
761,739
646,879
Provisions for liabilities
11
(44,121)
(36,513)
Net assets
717,618
610,366
Capital and reserves
Allotted, called up and fully paid
2,001
2,001
Profit and loss reserves
715,617
608,365
Total equity
717,618
610,366
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 31 January 2024 and are signed on its behalf by:
Mr SE Justinussen
Director
Company registration number SC221499 (Scotland)
GROAQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
GroAqua Limited is a private company limited by shares incorporated in Scotland. The registered office is 1 Longman Drive, Inverness, IV1 1SU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
With effect from 17 April 2023, then name of the company was changed from Sterner Aquatech UK Limited to Groaqua Limited.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for fish farming and water quality equipment goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover is recognised to the extent that it is probably that the economic benefits will flow to the company and the turnover can be reliably measured.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
3 years straight line
Development costs
10 years straight line
GROAQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 3 -
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% and 25% straight line
Fixtures and fittings
20% straight line
Computers
20% straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
GROAQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 4 -
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. 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 which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
GROAQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 5 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
GROAQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 6 -
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.16
Amounts recoverable on long-term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less accounts received as progress payments on account. Excess progress payments are included in creditors as payments on accounts.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
31
28
GROAQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Intangible fixed assets
Software
Development costs
Total
£
£
£
Cost
At 1 January 2023
31,000
31,000
Additions
14,482
14,482
At 31 December 2023
14,482
31,000
45,482
Amortisation and impairment
At 1 January 2023
16,792
16,792
Amortisation charged for the year
4,827
3,100
7,927
At 31 December 2023
4,827
19,892
24,719
Carrying amount
At 31 December 2023
9,655
11,108
20,763
At 31 December 2022
14,208
14,208
5
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
20,567
23,397
62,466
270,209
376,639
Additions
8,388
7,783
30,738
46,909
Disposals
(4,320)
(2,149)
(21,753)
(28,222)
At 31 December 2023
20,567
27,465
68,100
279,194
395,326
Depreciation and impairment
At 1 January 2023
11,744
16,629
42,338
108,768
179,479
Depreciation charged in the year
2,611
2,936
7,853
43,974
57,374
Eliminated in respect of disposals
(3,456)
(1,791)
(17,452)
(22,699)
At 31 December 2023
14,355
16,109
48,400
135,290
214,154
Carrying amount
At 31 December 2023
6,212
11,356
19,700
143,904
181,172
At 31 December 2022
8,823
6,768
20,128
161,441
197,160
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
40,202
40,200
GROAQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Fixed asset investments (Continued)
- 8 -
Movements in fixed asset investments
Shares in subsidiaries and associates
£
Cost or valuation
At 1 January 2023
40,200
Additions
2
At 31 December 2023
40,202
Carrying amount
At 31 December 2023
40,202
At 31 December 2022
40,200
7
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Sterner Aquatech UK Limited
1 Longman Drive, Inverness, IV1 1SU
Dormant
Ordinary
100.00
8
Associates
Details of the company's associates at 31 December 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Craine Communications Ltd
3 Rhuvaal Road, Oban, Scotland, PA34 4BT
Wireless Communications
B Ordinary 1p Shares
25.00
During the year no dividends or other distributions have been received from the associate.
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,303,841
1,083,270
Amounts owed by group undertakings
1,059
835,894
Other debtors
633,705
472,291
1,938,605
2,391,455
GROAQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
10
Other creditors falling due within one year
2023
2022
£
£
Trade creditors
268,696
277,926
Amounts owed to group undertakings
531,789
839,108
Other creditors
819,691
1,469,852
Accruals and deferred income
487,352
691,552
2,107,528
3,278,438
11
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
12
44,121
36,513
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
44,121
36,513
2023
Movements in the year:
£
Liability at 1 January 2023
36,513
Credit to profit or loss
(3,922)
Effect of change in tax rate - profit or loss
11,530
Liability at 31 December 2023
44,121
13
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Mark D Sanderson BSc CA
Statutory Auditor:
MacKenzie Kerr Limited
Date of audit report:
1 February 2024
GROAQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
14
Financial commitments, guarantees and contingent liabilities
There is a floating charge over the assets and undertakings of the company in favour of the company's bankers, Virgin Money UK Plc.
15
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
184,567
278,867
16
Related party transactions
The company has taken advantages of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
17
Parent company
Groaqua Limited is a wholly owned subsidiary of Groaqua Pf and its registered office is 9 Kambsenni, Kambsadalur, Fuglafjorour, Faroe Islands, FO 530.
18
Non-audit services provided by auditor
In common with many businesses of our size and nature we use our auditor to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
2023-12-312023-01-01false01 February 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMr S E JustinussenMr J PetersenMr GF MacLennanfalseSC2214992023-01-012023-12-31SC2214992023-12-31SC2214992022-12-31SC221499core:ComputerSoftware2023-12-31SC221499core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-31SC221499core:ComputerSoftware2022-12-31SC221499core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-31SC221499core:PlantMachinery2023-12-31SC221499core:FurnitureFittings2023-12-31SC221499core:ComputerEquipment2023-12-31SC221499core:MotorVehicles2023-12-31SC221499core:PlantMachinery2022-12-31SC221499core:FurnitureFittings2022-12-31SC221499core:ComputerEquipment2022-12-31SC221499core:MotorVehicles2022-12-31SC221499core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-31SC221499core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-31SC221499core:CurrentFinancialInstruments2023-12-31SC221499core:CurrentFinancialInstruments2022-12-31SC221499core:ShareCapital2023-12-31SC221499core:ShareCapital2022-12-31SC221499core:RetainedEarningsAccumulatedLosses2023-12-31SC221499core:RetainedEarningsAccumulatedLosses2022-12-31SC221499bus:Director12023-01-012023-12-31SC221499core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-31SC221499core:ComputerSoftware2023-01-012023-12-31SC221499core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-31SC221499core:PlantMachinery2023-01-012023-12-31SC221499core:FurnitureFittings2023-01-012023-12-31SC221499core:ComputerEquipment2023-01-012023-12-31SC221499core:MotorVehicles2023-01-012023-12-31SC2214992022-01-012022-12-31SC221499core:ComputerSoftware2022-12-31SC221499core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-31SC2214992022-12-31SC221499core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-31SC221499core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-31SC221499core:ExternallyAcquiredIntangibleAssets2023-01-012023-12-31SC221499core:PlantMachinery2022-12-31SC221499core:FurnitureFittings2022-12-31SC221499core:ComputerEquipment2022-12-31SC221499core:MotorVehicles2022-12-31SC221499core:Subsidiary112023-01-012023-12-31SC22149912023-01-012023-12-31SC221499core:WithinOneYear2023-12-31SC221499core:WithinOneYear2022-12-31SC22149912023-12-31SC22149922023-12-31SC221499bus:PrivateLimitedCompanyLtd2023-01-012023-12-31SC221499bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-31SC221499bus:FRS1022023-01-012023-12-31SC221499bus:Audited2023-01-012023-12-31SC221499bus:Director22023-01-012023-12-31SC221499bus:CompanySecretary12023-01-012023-12-31SC221499bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP