Company Registration No. SC063205 (Scotland)
MARITIME CRAFT SERVICES (CLYDE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
MARITIME CRAFT SERVICES (CLYDE) LIMITED
COMPANY INFORMATION
Directors
Ms Kuyt
Mr M Kuyt
Mrs Y Orr
Secretary
Mrs Y Orr
Company number
SC063205
Registered office
Maritime House
69-71 Main Road
FAIRLIE
KA29 0AD
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
MARITIME CRAFT SERVICES (CLYDE) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
MARITIME CRAFT SERVICES (CLYDE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The directors present their strategic report for the year ended 31 October 2023.

Fair review of the business

The principal activity of the company continued to be that of ship owners, ship charterers, ship brokers and other maritime related services. During 2023 the company had vessels in the UK, Europe & the Middle East.

 

In line with company strategy to periodically upgrade and modernise the fleet, the company received strong commercial offers and subsequently sold two vessels in June and three vessels in August 2023. The funds received from the sales were used to reduce debt levels and reinvested in additional tonnage: a second hand multi-purpose vessel delivered in June 2023, deposit for a newbuild Damen multi-cat and deposits for three newbuild SWATH design CTVs.

Principal risks and uncertainties

Principal risks and uncertainties faced by the company are the current global economic market conditions and fluctuating exchange rates. The company is exposed in its trading operations to the risk of changes in foreign currency exchange rates. The main currencies in which the company operates are the Pound, US Dollar, and the Euro. This risk is monitored on a regular basis. Oil price movements are also a concern as they are likely to impact the level of activity in Middle East. Longer term contracts reduce exposure to this risk.

 

Other potential risks include interest rate risks, availability of credit and restrictions on movement of people.

 

Brexit continues to pose a risk to the company, not only with market fluctuations. We have also found when tendering for some EU based projects, that they will not accept UK flagged vessels.

 

The directors continually review and identify business risk to manage these and minimise business exposure.

Key performance indicators

The company uses the level of enquiries for future contracts as the main key performance indicator to monitor its activities. Other key performance indicators of the company are profitability and vessel utilisation, both of which, have been commented on in the fair review of the business.

On behalf of the board

Ms Kuyt
Director
29 March 2024
MARITIME CRAFT SERVICES (CLYDE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 October 2023.

Principal activities

The principal activity of the company continued to be that of ship owners, ship charterers, ship brokers and other maritime related services.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to €126,322. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Ms Kuyt
Mr M Kuyt
Mrs Y Orr
Post reporting date events

On 14 March 2024, the company entered into a loan agreement of 15,815,958, accruing interest at a rate of 6.8% per annum. Interest and principal are re-paid on a monthly basis until maturity being 14 August 2029.

Future developments

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and foreign currency risk (as applicable).

Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

MARITIME CRAFT SERVICES (CLYDE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
Going Concern

The company has reported a profit after tax of €2,003,545, has net current liabilities of €4,023,471 and net assets of €19,644,866 for the year ended 31 October 2023.

 

The financial statements have been prepared on a going concern basis following a detailed assessment of the company’s liquidity, current trading and future outlook. The directors assessment involved preparing cash flow projections that cover the period to October 2027. A key assumption underpinning the projections are the company having continued access to sufficient funding facilities from the Company’s Lender’s.

 

On the 14 March 2024, the Company completed a re-financing exercise that consolidated its term bank loans into one lender. The new loan is for a 5 year term with a maturity date of 14 August 2029.

 

The projections assume that the Company will introduce new vessels to the fleet during 2025 with build funding in place to support the financing of the builds.

 

The directors understand that the projections are by their nature inherently uncertain, however the directors are satisfied the company can navigate the impact of any plausible downside scenarios on the company’s cashflow requirements from its existing loan facilities.

 

The net current liability position of €4m (FY22 - €3.5m) reflects the presentation of the company’s revolving credit facility of €5.1m (FY-22 €4.4m) within short term creditors which the directors anticipate having continued access to for a minimum period of 12 months from the date of authorising the financial statements.

 

Based on the above factors the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the board
Ms Kuyt
Director
29 March 2024
MARITIME CRAFT SERVICES (CLYDE) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -

The directors are responsible for preparing the Strategic Report, Directors' Report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MARITIME CRAFT SERVICES (CLYDE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MARITIME CRAFT SERVICES (CLYDE) LIMITED
- 5 -
Opinion

We have audited the financial statements of Maritime Craft Services (Clyde) Limited (the 'company') for the year ended 31 October 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and 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 FRS 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:

 

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

MARITIME CRAFT SERVICES (CLYDE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MARITIME CRAFT SERVICES (CLYDE) LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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:

 

Responsibilities of directors

As explained more fully in the Directors’ responsibilities statement set out on page 3, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

MARITIME CRAFT SERVICES (CLYDE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MARITIME CRAFT SERVICES (CLYDE) LIMITED
- 7 -
Extent to which the audit is considered capable of detecting irregularities, including fraud

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 assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

 

MARITIME CRAFT SERVICES (CLYDE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MARITIME CRAFT SERVICES (CLYDE) LIMITED
- 8 -

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 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 Hamilton (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
29 March 2024
Chartered Accountants
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
MARITIME CRAFT SERVICES (CLYDE) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
Notes
Turnover
3
21,794,262
20,068,052
Cost of sales
(11,971,766)
(10,708,573)
Gross profit
9,822,496
9,359,479
Administrative expenses
(8,783,511)
(8,230,800)
Gain on disposal of tangible fixed assets
2,938,968
147,636
Operating profit
4
3,977,953
1,276,315
Interest receivable and similar income
7
154,908
230,902
Interest payable and similar expenses
8
(1,551,241)
(1,111,829)
Profit before taxation
2,581,620
395,388
Tax on profit
9
(578,075)
127,225
Profit and total comprehensive income for the financial year
2,003,545
522,613

The profit and loss account has been prepared on the basis that all operations are continuing operations.

 

There are no items of other comprehensive income in the current or prior financial period.

MARITIME CRAFT SERVICES (CLYDE) LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
Fixed assets
Tangible assets
11
47,277,786
53,155,527
Current assets
Stocks
12
51,758
107,347
Debtors
13
6,738,079
7,955,559
Cash at bank and in hand
3,332,421
1,911,011
10,122,258
9,973,917
Creditors: amounts falling due within one year
14
(14,145,729)
(13,497,515)
Net current liabilities
(4,023,471)
(3,523,598)
Total assets less current liabilities
43,254,315
49,631,929
Creditors: amounts falling due after more than one year
15
(13,897,802)
(22,732,770)
Provisions for liabilities
Deferred tax liability
17
9,711,647
9,227,704
(9,711,647)
(9,227,704)
Net assets
19,644,866
17,671,455
Capital and reserves
Called up share capital
19
8,621
8,621
Capital redemption reserve
20
20,115
20,115
Other reserves
20
230,208
761,907
Profit and loss reserves
20
19,385,922
16,880,812
Total equity
19,644,866
17,671,455
The financial statements were approved by the board of directors and authorised for issue on 29 March 2024 and are signed on its behalf by:
Ms Kuyt
Director
Company Registration No. SC063205
MARITIME CRAFT SERVICES (CLYDE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
Balance at 1 November 2021
8,621
20,115
1,129,496
15,990,610
17,148,842
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
-
522,613
522,613
Transfer between reserves
-
-
(367,589)
367,589
-
Balance at 31 October 2022
8,621
20,115
761,907
16,880,812
17,671,455
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
-
2,003,545
2,003,545
Dividends
10
-
-
-
(126,322)
(126,322)
Tax movement on other reserves
-
-
96,188
-
0
96,188
Transfer between reserves
-
-
(627,887)
627,887
-
Balance at 31 October 2023
8,621
20,115
230,208
19,385,922
19,644,866
MARITIME CRAFT SERVICES (CLYDE) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
2023
2022
Notes
Cash flows from operating activities
Cash generated from operations
25
8,746,481
4,227,855
Income taxes paid
(517,283)
(118,729)
Net cash inflow from operating activities
8,229,198
4,109,126
Investing activities
Purchase of tangible fixed assets
(10,118,556)
(114,532)
Proceeds on disposal of tangible fixed assets
14,646,200
1,906,510
Net cash generated from investing activities
4,527,644
1,791,978
Financing activities
Interest paid
(1,543,767)
(880,927)
Proceeds from bank borrowings
459,308
-
0
Repayment of bank loans
(9,611,282)
(5,883,015)
Dividends paid
(126,322)
-
0
Net cash used in financing activities
(10,822,063)
(6,763,942)
Net increase/(decrease) in cash and cash equivalents
1,934,779
(862,838)
Cash and cash equivalents at beginning of year
1,397,642
2,260,480
Cash and cash equivalents at end of year
3,332,421
1,397,642
Relating to:
Cash at bank and in hand
3,332,421
1,911,011
Bank overdrafts included in creditors payable within one year
-
0
(513,369)
MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
1
Accounting policies
Company information

Maritime Craft Services (Clyde) Limited is a private company limited by shares incorporated in Scotland. The registered office is Maritime House, 69-71 Main Road, FAIRLIE, KA29 0AD. The company's registered number is SC063205.

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.

The financial statements are prepared in euros, 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 modified to include vessels carried at deemed cost. The principal accounting policies adopted are set out below.

1.2
Going concern

The company has reported a profit after tax of €2,003,545, has net current liabilities of €4,023,471 and net assets of €19,644,866 for the year ended 31 October 2023.true

 

The financial statements have been prepared on a going concern basis following a detailed assessment of the company’s liquidity, current trading and future outlook. The directors assessment involved preparing cash flow projections that cover the period to October 2027. A key assumption underpinning the projections are the company having continued access to sufficient funding facilities from the Company’s Lender’s.

 

On the 14 March 2024, the Company completed a re-financing exercise that consolidated its term bank loans into one lender. The new loan is for a 5 year term with a maturity date of 14 August 2029.

 

The projections assume that the Company will introduce new vessels to the fleet during 2025 with build funding in place to support the financing of the builds.

 

The directors understand that the projections are by their nature inherently uncertain, however the directors are satisfied the company can navigate the impact of any plausible downside scenarios on the company’s cashflow requirements from its existing loan facilities.

 

The net current liability position of €4m (FY22 - €3.5m) reflects the presentation of the company’s revolving credit facility of €5.1m (FY-22 €4.4m) within short term creditors which the directors anticipate having continued access to for a minimum period of 12 months from the date of authorising the financial statements.

 

Based on the above factors the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable for vessel hire and other maritime related services net of VAT and trade discounts. Turnover for vessel hire is recognised on an accruals basis.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost or deemed cost and subsequently measured at cost or deemed cost, net of depreciation and any impairment losses. An explanation of assets held at deemed cost is outlined in note 11.

MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -

Depreciation is provided at rates calculated to write off the cost or deemed cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold land and buildings
2% - Straight line
Vessels
5% - 14.3% - Straight line
Office equipment
10% - Straight line

Assets in the course of construction are not depreciated until they come into use.

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 the profit and loss account.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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 the profit and loss account.

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 the profit and loss account.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

The cost of stock is calculated on a first in, first out basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
1.8
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 trade and other 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the profit and loss account.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit and loss account.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 trade and other creditors and bank loans, are initially recognised at transaction price. 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.

MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.12
Retirement benefits

The pension scheme contributions are in respect of defined contribution schemes, the assets of which are held separately from those of the company. The pension cost charge represents the contributions payable for the year.

1.13
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into Euros at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Useful economic life and residual value of vessels

Vessels are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed on a periodic basis and may vary depending on a number of factors. In re-assessing useful lives, factors such as market trends, vessel durability and vessel demand are taken into account. Residual value assessments consider issues such as future market conditions, the remaining useful life of the asset and projected disposal value. The carrying amount of vessels at the reporting end date is set out at note 11.

Carrying value of vessels

In addition to performing an assessment over the useful lives and residual values of vessels, the directors periodically review the fleet for any indicators of impairment, This involves an assessment of the recoverable amount of each vessel, being the higher of the anticipated fair value less cost to sell and its value in use.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
Turnover analysed by class of business
Revenue from maritime related services
21,794,262
20,068,052
2023
2022
Turnover analysed by geographical market
UK
6,102,393
4,403,243
UAE
2,615,311
5,513,041
Europe
10,461,247
2,866,363
Rest of world
2,615,311
7,285,405
21,794,262
20,068,052
MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
4
Operating (profit)/loss
2023
2022
Operating (profit)/loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
141,169
(625,715)
Fees payable to the company's auditor for the audit of the company's financial statements
24,000
23,000
Depreciation of owned tangible fixed assets
4,289,065
4,763,150
Profit on disposal of tangible fixed assets
(2,938,968)
(147,636)
Operating lease charges
18,131
1,346,078
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Crew
49
52
Administration
16
17
Total
65
69

Their aggregate remuneration comprised:

2023
2022
Wages and salaries
3,338,389
3,233,610
Social security costs
343,157
354,340
Pension costs
224,469
97,415
3,906,015
3,685,365
6
Directors' remuneration
2023
2022
Remuneration for qualifying services
182,747
159,979
Company pension contributions to defined contribution schemes
12,466
6,101
195,213
166,080

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
7
Interest receivable and similar income
2023
2022
Interest income
Foreign exchange gains on bank loans
154,908
230,902
8
Interest payable and similar expenses
2023
2022
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,551,241
1,111,829
9
Taxation
2023
2022
Current tax
UK corporation tax on profits for the current period
214,155
584,594
Adjustments in respect of prior periods
(216,211)
131,650
Total current tax
(2,056)
716,244
Deferred tax
Origination and reversal of timing differences
256,662
(487,343)
Changes in tax rates
-
0
(153,898)
Adjustment in respect of prior periods
323,469
(202,228)
Total deferred tax
580,131
(843,469)
Total tax charge/(credit)
578,075
(127,225)
MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
9
Taxation
(Continued)
- 20 -

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
Profit before taxation
2,581,620
395,388
Expected tax charge based on the standard rate of corporation tax in the UK of 22.52% (2022: 19.00%)
581,381
75,124
Tax effect of expenses that are not deductible in determining taxable profit
44,610
812
Adjustments in respect of prior years
(216,211)
132,372
Other differences
100,260
-
0
Deferred tax adjustments in respect of prior years
323,469
(202,228)
Foreign exchange differences
-
0
(7,532)
Fixed asset differences
(778,997)
118,882
Foreign exchange differences in prior years
(4,249)
(722)
Chargeable gains/(losses)
(74,293)
(90,035)
Remeasurement of deferred tax for changes in tax rates
15,933
(153,898)
Adjustment to brought forward values
785,468
-
0
Other tax adjustments, reliefs and transfers
(199,296)
-
0
Taxation charge/(credit) for the year
578,075
(127,225)

A change in the UK Corporation tax rate to 25% took effect from 1 April 2023. This change has had a consequential effect on the company's tax charge with the standard rate of tax in the current year reflective of a marginal tax rate arising from the company's period straddling the 19% and 25% tax rates. Deferred tax has been calculated at 25%.

10
Dividends
2023
2022
Final paid
126,322
-
0
MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
11
Tangible fixed assets
Freehold land and buildings
Assets under construction
Vessels
Office equipment
Total
Cost or valuation
At 1 November 2022
1,535,759
-
0
78,475,786
199,080
80,210,625
Additions
-
0
6,128,010
3,990,546
-
0
10,118,556
Disposals
-
0
-
0
(17,507,226)
-
0
(17,507,226)
At 31 October 2023
1,535,759
6,128,010
64,959,106
199,080
72,821,955
Depreciation and impairment
At 1 November 2022
236,820
-
0
26,643,406
174,872
27,055,098
Depreciation charged in the year
28,739
-
0
4,236,118
24,208
4,289,065
Eliminated in respect of disposals
-
0
-
0
(5,799,994)
-
0
(5,799,994)
At 31 October 2023
265,559
-
0
25,079,530
199,080
25,544,169
Carrying amount
At 31 October 2023
1,270,200
6,128,010
39,879,576
-
0
47,277,786
At 31 October 2022
1,298,939
-
0
51,832,380
24,208
53,155,527

Included with tangible fixed assets above are vessels with a carrying value of €31,417,819 (2022: €42,737,224) which are pledged as security over bank borrowings.

 

Included in assets under construction are three vessels expected to be delivered in 2025 and one which was delivered in November 2023.

In accordance with the transitional provisions of FRS 102, an election was made to revalue vessels owned by the company at the date of transition to their fair value and to treat these values as deemed cost from the transition date. The date of transition was 1 November 2014.

 

If vessels were stated on an historical cost basis rather than a deemed cost basis, the total amounts included would have been as follows:

2023
2022
Cost
76,357,266
83,839,275
Accumulated depreciation
(24,720,203)
(27,538,308)
Carrying value
51,637,063
56,300,967
12
Stocks
2023
2022
Finished goods and goods for resale
51,758
107,347
MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
13
Debtors
2023
2022
Amounts falling due within one year:
Trade debtors
6,284,274
7,584,066
Other debtors
381,419
211,515
Prepayments and accrued income
72,386
159,978
6,738,079
7,955,559
14
Creditors: amounts falling due within one year
2023
2022
Notes
Bank loans and overdrafts
16
8,434,978
9,562,433
Trade creditors
4,924,869
2,764,356
Corporation tax
65,255
584,594
Other taxation and social security
-
0
75,919
Accruals and deferred income
720,627
510,213
14,145,729
13,497,515

Bank loans and overdrafts carry a pledged security over vessels with a carrying value of €31,417,819 (2022: €42,737,224).

15
Creditors: amounts falling due after more than one year
2023
2022
Notes
Bank loans and overdrafts
16
13,690,191
22,382,987
Directors' current accounts
207,611
349,783
13,897,802
22,732,770
16
Loans and overdrafts
2023
2022
Bank loans
22,125,169
31,432,051
Bank overdrafts
-
0
513,369
22,125,169
31,945,420
Payable within one year
8,434,978
9,562,433
Payable after one year
13,690,191
22,382,987
MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
16
Loans and overdrafts
(Continued)
- 23 -

Bank loans and overdrafts are secured by a bond and floating charge over the company's assets and ship mortgages over the vessels.

 

As per note 23, 15.8m of the above loan balance has been refinanced post year end. These amounts were originally subject to review at August 2024, however they have been shown as long term in order to best reflect the substance of the balances.

17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
Accelerated capital allowances
9,620,920
9,002,465
Short term timing differences
(48,468)
(72,702)
Capital gains
139,195
297,941
9,711,647
9,227,704
2023
Movements in the year:
Liability at 1 November 2022
9,227,704
Charge to profit or loss
580,131
Credit to equity
(96,188)
Liability at 31 October 2023
9,711,647
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes
224,469
97,415

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
Ordinary share capital
Issued and fully paid
7,500 Ordinary shares of £1 each
8,621
8,621
MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
20
Reserves
Capital redemption reserve

Capital redemption reserve represents amounts retained as fixed capital following redemption of share capital under companies legislation.

Other reserves

Other reserves represent the resulting surplus from the revaluation of vessels. The revaluation is being released over the remaining useful life of the vessels.

Profit and loss reserves

Profit and loss reserves represent accumulated comprehensive income or expenditure for the year and prior periods less dividends paid.

21
Financial commitments, guarantees and contingent liabilities

The company is party to a cross guarantee with a related party. The potential liability to the company under the cross guarantee at 31 October 2023 was €3.2m (2022 - €3.5m).

22
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
Within one year
18,131
18,361
Between two and five years
29,463
48,197
47,594
66,558
23
Events after the reporting date

On 14 March 2024 the company entered into a loan agreement of 15,815,958, accruing interest at a rate of 6.8% per annum. Interest and principal are re-paid on a monthly basis until maturity being 14th August 2029.

24
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
Aggregate compensation
216,226
187,397
Transactions with related parties

During the year the company entered into the following transactions with related parties:

MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
24
Related party transactions
(Continued)
- 25 -
Net repayments/(advances)
2023
2022
Key management personnel
142,172
318,774

 

2023
2022
Amounts due to related parties
Key management personnel
207,611
349,783
Other related parties
3,239,460
3,513,695
25
Cash generated from operations
2023
2022
Profit for the year after tax
2,003,545
522,613
Adjustments for:
Taxation charged/(credited)
578,075
(127,225)
Finance costs
1,551,241
1,111,829
Investment income
(154,908)
(484,450)
Gain on disposal of tangible fixed assets
(2,938,968)
(147,636)
Depreciation and impairment of tangible fixed assets
4,289,065
4,763,150
Movements in working capital:
Decrease/(increase) in stocks
55,589
(33,062)
Decrease/(increase) in debtors
1,217,480
(545,269)
Increase/(decrease) in creditors
2,145,362
(832,095)
Cash generated from operations
8,746,481
4,227,855

 

MARITIME CRAFT SERVICES (CLYDE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
26
Analysis of changes in net debt
1 November 2022
Cash flows
Exchange rate movements
31 October 2023
Cash at bank and in hand
1,911,011
1,421,410
-
3,332,421
Bank overdrafts
(513,369)
513,369
-
-
0
1,397,642
1,934,779
-
3,332,421
Borrowings excluding overdrafts
(31,432,051)
9,151,974
154,908
(22,125,169)
(30,034,409)
11,086,753
154,908
(18,792,748)
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