Caseware UK (AP4) 2022.0.179 2022.0.179 The principal activity of the Company is the provision of support activities for petroleum and natural gas extraction. TGT Oilfield Services UK Limited (the 'Company') is a private company limited by shares registered in Scotland under the Companies Act. The address of the registered office is 21-25 Commerce Street, Aberdeen, Scotland, AB11 5FE. The Company's registered number is SC427554. The principal activity of the Company is the provision of support activities for petroleum and natural gas extraction.The Directors have prepared the financial statements on a going concern basis. Further details on this decision are set out at note 2.2. 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. At the Balance Sheet date, the Company has net current liabilities of $2,131,210 (2022 - $1,858,097) and net liabilities of $184,042 (2022 - $243,638). At the Balance Sheet date the Company has net amounts payable to group undertakings of $4,257,163 (2022 - $3,527,572). TGT Oilfield Services DMCC, a related undertaking, has confirmed in writing that it will not demand repayment of its liabilities due from the Company (which amount to $13,671,428) until such time as the Company is in a position to repay them. In addition to this, the Company's parent undertaking, Diagnostica Holding Limited, has confirmed in writing that it will make available sufficient funds to enable the Company to continue for at least twelve months from the date the financial statements of the Company for the year ended 31 December 2023 have been signed by the Directors. Management have also prepared forecast trading and cash flow budgets to June 2025 which support the going concern basis of preparation of the financial statements. The geopolitical situation developing in Ukraine / Russia has now put a strain on international relations, and whilst we believe the impact of this is minimal to our business, we have considered the global impact this is having on logistics, supply chains and costs alike. As such the Directors have put in place a special task force focused on ensuring our operations remain unaffected and our local teams continue to operate in compliance with all local laws, regulations, and sanctions. The Board of Directors confirm their assumption that the Company is a going concern, and no significant uncertainty exists in this respect. This assumption is based on budgets and ongoing group support.2023-05-259931550114255639461315106694482023-12-31Tangible 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. 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. Depreciation is provided on the following basis: Plant & machinery - 20% Fixtures & fittings - 33% Computer equipment - 33% 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 the Statement of Comprehensive Income.28242558214821820779313592023-01-0122falsefalsetrue30 SC427554 2023-01-01 2023-12-31 SC427554 2022-01-01 2022-12-31 SC427554 2023-12-31 SC427554 2022-12-31 SC427554 c:Director1 2023-01-01 2023-12-31 SC427554 c:Director2 2023-01-01 2023-12-31 SC427554 c:Director2 2023-12-31 SC427554 c:RegisteredOffice 2023-01-01 2023-12-31 SC427554 c:Agent1 2023-01-01 2023-12-31 SC427554 d:PlantMachinery 2023-01-01 2023-12-31 SC427554 d:PlantMachinery 2023-12-31 SC427554 d:PlantMachinery 2022-12-31 SC427554 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC427554 d:FurnitureFittings 2023-01-01 2023-12-31 SC427554 d:FurnitureFittings 2023-12-31 SC427554 d:FurnitureFittings 2022-12-31 SC427554 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC427554 d:OfficeEquipment 2023-01-01 2023-12-31 SC427554 d:OfficeEquipment 2023-12-31 SC427554 d:OfficeEquipment 2022-12-31 SC427554 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC427554 d:ComputerEquipment 2023-01-01 2023-12-31 SC427554 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC427554 d:CurrentFinancialInstruments 2023-12-31 SC427554 d:CurrentFinancialInstruments 2022-12-31 SC427554 d:CurrentFinancialInstruments 6 2023-12-31 SC427554 d:CurrentFinancialInstruments 6 2022-12-31 SC427554 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 SC427554 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 SC427554 d:UKTax 2023-01-01 2023-12-31 SC427554 d:UKTax 2022-01-01 2022-12-31 SC427554 d:ForeignTax 2023-01-01 2023-12-31 SC427554 d:ForeignTax 2022-01-01 2022-12-31 SC427554 d:ShareCapital 2023-12-31 SC427554 d:ShareCapital 2022-12-31 SC427554 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 SC427554 d:RetainedEarningsAccumulatedLosses 2023-12-31 SC427554 d:RetainedEarningsAccumulatedLosses 2022-12-31 SC427554 c:OrdinaryShareClass1 2023-01-01 2023-12-31 SC427554 c:OrdinaryShareClass1 2023-12-31 SC427554 c:OrdinaryShareClass1 2022-12-31 SC427554 c:FRS102 2023-01-01 2023-12-31 SC427554 c:Audited 2023-01-01 2023-12-31 SC427554 c:FullAccounts 2023-01-01 2023-12-31 SC427554 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 SC427554 d:WithinOneYear 2023-12-31 SC427554 d:WithinOneYear 2022-12-31 SC427554 d:BetweenOneFiveYears 2023-12-31 SC427554 d:BetweenOneFiveYears 2022-12-31 SC427554 6 2023-01-01 2023-12-31 SC427554 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 SC427554 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 SC427554 d:TaxLossesCarry-forwardsDeferredTax 2023-12-31 SC427554 d:TaxLossesCarry-forwardsDeferredTax 2022-12-31 SC427554 d:RetirementBenefitObligationsDeferredTax 2023-12-31 SC427554 d:RetirementBenefitObligationsDeferredTax 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure



















TGT Oilfield Services UK Limited

Registered number: SC427554
Annual Report
For the year ended 31 December 2023

 
TGT OILFIELD SERVICES UK LIMITED
 
 
COMPANY INFORMATION


Directors
Andraos Sayeh 
Saad Bargach 




Registered number
SC427554



Registered office
21-25 Commerce Street

Aberdeen

AB11 5FE




Independent auditor
Mazars LLP
Chartered Accountants & Statutory Auditor

Capital Square

58 Morrison Street

Edinburgh

EH3 8BP




Bankers
HSBC
99-101 Lord Street

Liverpool

L2 6PG





 
TGT OILFIELD SERVICES UK LIMITED
 

CONTENTS



Page
Directors' Report
 
1 - 2
Independent Auditor's Report
 
3 - 6
Statement of Comprehensive Income
 
7
Balance Sheet
 
8
Notes to the Financial Statements
 
9 - 23


 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The Directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The Directors are responsible for preparing the 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 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent; and

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

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company is the provision of support activities for petroleum and natural gas extraction.

Going concern

The Directors have prepared the financial statements on a going concern basis. Further details on this decision are set out at note 2.2.

Directors

The Directors who served during the year and up to the date of this report were:

Andraos Sayeh 
Saad Bargach (appointed 25 May 2023)

- 1 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Economic impact of global events

UK businesses are currently facing many uncertainties such as the consequences of Brexit, COVID-19, environmental sustainability and geopolitical events such as the Russian invasion of Ukraine. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working. 
The Directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The Directors have taken account of these potential impacts in their going concern assessment.
The Company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.

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 Directors are aware, there is no relevant audit information of which the Company's auditor is unaware, and

the Directors 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's auditor is aware of that information.

Auditor

The auditor, Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

This report has been prepared in accordance with the small companies regime of the Companies Act 2006. 

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





Andraos Sayeh
Director

Date: 15 April 2024

- 2 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TGT OILFIELD SERVICES UK LIMITED
 

Opinion

We have audited the financial statements of TGT Oilfield Services UK Limited (the ‘Company’) for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet 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:

give a true and fair view of the state of the Company’s affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

- 3 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TGT OILFIELD SERVICES UK LIMITED
 

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 the audit:
 
the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In 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 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, or returns adequate for our audit have not been received from branches not visited by us; or
the 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; or 
the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the Directors' Report and from the requirement to prepare a Strategic Report.
- 4 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TGT OILFIELD SERVICES UK LIMITED
 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 1, 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 intend either to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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 financial statements.
 
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
 
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. 

Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation and the Companies Act 2006. 
- 5 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TGT OILFIELD SERVICES UK LIMITED
 

In addition, we evaluated the Directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the occurrence assertion for third party revenue and the valuation and accuracy assertions for intercompany revenue) and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the Directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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.

Use of the audit 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.




Anna Marshall (Senior statutory auditor)

  
for and on behalf of

Mazars LLP
Chartered Accountants and Statutory Auditor 
Capital Square
Edinburgh
EH3 8BP

15 April 2024
- 6 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
$
$

  

Revenue
  
8,992,837
9,347,756

Intercompany revenue
  
938,713
2,077,807

Cost of sales
  
(5,178,369)
(4,841,475)

Intercompany cost of sales
  
(4,282,946)
(5,827,973)

Gross profit
  
470,235
756,115

Other operating income
 3 
32,162
45,811

Operating profit
  
502,397
801,926

Tax on profit
 5 
(442,801)
(63,989)

Profit for the financial year
  
59,596
737,937

There was no other comprehensive income for 2023 (2022 - $Nil).

The notes on pages 9 to 23 form part of these financial statements.

- 7 -

 
TGT OILFIELD SERVICES UK LIMITED
REGISTERED NUMBER: SC427554

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
$
$

Fixed assets
  

Tangible fixed assets
 6 
1,678,142
1,082,146

Investments
 7 
650,000
650,000

  
2,328,142
1,732,146

Current assets
  

Stocks
 8 
22,491
39,851

Debtors: amounts falling due within one year
 9 
18,577,041
13,282,509

Cash and cash equivalents
  
714,776
1,095,706

  
19,314,308
14,418,066

Creditors: amounts falling due within one year
 10 
(21,445,518)
(16,276,163)

Net current liabilities
  
 
 
(2,131,210)
 
 
(1,858,097)

Provisions for liabilities
  

Deferred tax
 11 
(380,974)
(117,687)

  
 
 
(380,974)
 
 
(117,687)

Net liabilities
  
(184,042)
(243,638)


Capital and reserves
  

Called up share capital 
 12 
2,650,761
2,650,761

Profit and loss account
 13 
(2,834,803)
(2,894,399)

  
(184,042)
(243,638)


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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




Andraos Sayeh
Director

Date: 15 April 2024

The notes on pages 9 to 23 form part of these financial statements.

- 8 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

TGT Oilfield Services UK Limited (the 'Company') is a private company limited by shares registered in Scotland under the Companies Act. The address of the registered office is 21-25 Commerce Street, Aberdeen, Scotland, AB11 5FE. The Company's registered number is SC427554.
The principal activity of the Company is the provision of support activities for petroleum and natural gas extraction.

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 Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The Company's functional currency is GBP and its presentational currency is USD. Monetary amounts in these financial statements are rounded to the nearest $.

The following principal accounting policies have been applied:

 
2.2

Going concern

At the Balance Sheet date, the Company has net current liabilities of $2,131,210 (2022 - $1,858,097) and net liabilities of $184,042 (2022 - $243,638). At the Balance Sheet date the Company has net amounts payable to group undertakings of $4,257,163 (2022 - $3,527,572). TGT Oilfield Services DMCC, a related undertaking, has confirmed in writing that it will not demand repayment of its liabilities due from the Company (which amount to $13,671,428) until such time as the Company is in a position to repay them.  In addition to this, the Company's parent undertaking, Diagnostica Holding Limited, has confirmed in writing that it will make available sufficient funds to enable the Company to continue for at least twelve months from the date the financial statements of the Company for the year ended 31 December 2023 have been signed by the Directors. Management have also prepared forecast trading and cash flow budgets to June 2025 which support the going concern basis of preparation of the financial statements.
The geopolitical situation developing in Ukraine / Russia has now put a strain on international relations, and whilst we believe the impact of this is minimal to our business, we have considered the global impact this is having on logistics, supply chains and costs alike. As such the Directors have put in place a special task force focused on ensuring our operations remain unaffected and our local teams continue to operate in compliance with all local laws, regulations, and sanctions.
The Board of Directors confirm their assumption that the Company is a going concern, and no significant uncertainty exists in this respect. This assumption is based on budgets and ongoing group support.

- 9 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional currency is GBP. This differs from the presentational currency which is USD. The reason for the difference is that the Company is part of a group which has USD as the presentational currency.

Transactions and balances

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

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.

- 10 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

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 the Statement of Comprehensive Income 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 Statement of Comprehensive Income in the same period as the related expenditure.

 
2.7

Finance costs

Finance costs are charged to the Statement of Comprehensive Income 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.

 
2.8

Pensions

Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

- 11 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income 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 operates and generates 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.

 
2.10

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.

Depreciation is provided on the following basis:

Plant & machinery
-
20%
Fixtures & fittings
-
33%
Computer equipment
-
33%

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 the Statement of Comprehensive Income.

 
2.11

Valuation of investments

Investments in associates are measured at cost less accumulated impairment.

- 12 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

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 the Statement of Comprehensive Income.

 
2.13

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.

 
2.14

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.

 
2.15

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.

  
2.16

Intercompany recharges

Costs relating to business support, technical support and marketing costs incurred by other group entities on behalf of the Company (including its branches, subsidiaries and associates) are recharged to the Company and recognised in the Statement of Comprehensive Income within intercompany cost of sales in the period to which the service relates.
Any costs that relate to services provided to the Company’s subsidiaries and associates are further recharged by the Company to the appropriate entity and recognised in the Statement of Comprehensive Income within intercompany revenue in the period to which the service relates. This revenue includes any additional coordination fee due to the Company. This is in line with the group’s transfer pricing policy.

- 13 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company 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 the Statement of Comprehensive Income in the year that the Company 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.

 
2.18

Financial instruments

The Company 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 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 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 Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

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

- 14 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

Impairment of financial assets (continued)
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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans 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. Discounting is omitted where the effect of discounting is immaterial.

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. Discounting is omitted where the effect of discounting is immaterial.

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 Company 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 Company 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 Company's contractual obligations expire or are discharged or cancelled.

- 15 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Other operating income

2023
2022
$
$

Other income
32,162
-

R&D tax credits
-
45,811

32,162
45,811



4.


Employees

No Directors received any remuneration in the current or prior year.

The average monthly number of employees during the year was 30 (2022 - 22).

- 16 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Taxation


2023
2022
$
$

Corporation tax


Corporation tax
151,581
-

Adjustments in respect of previous periods
(5,751)
(167,820)

Other
55,783
-


201,613
(167,820)


Double taxation relief
(57,151)
-


144,462
(167,820)

Foreign tax


Foreign tax on income for the year
57,151
110,685

Foreign tax in respect of prior periods
(22,099)
3,437

35,052
114,122

Total current tax
179,514
(53,698)

Deferred tax


Origination and reversal of timing differences
263,287
117,687

Total deferred tax
263,287
117,687


Taxation on profit on ordinary activities
442,801
63,989
- 17 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
5.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 -19%). The differences are explained below:

2023
2022
$
$


Profit on ordinary activities before tax
502,397
801,926


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 -19%)
118,164
152,366

Effects of:


Expenses not deductible for tax purposes
1,110
210

Fixed asset differences
(45)
(647)

Other tax adjustments, relief and transfers
281,505
26,851

Foreign tax credits
-
110,685

R&D expenditure credits
(7,565)
-

Adjustments in respect of prior year
(25,916)
(180,248)

Exchange differences
(1,934)
15,865

Deferred tax not recognised
5,525
(78,426)

Income not taxable for tax purposes
-
(8,704)

Remeasurement of deferred tax for changes in tax rates
15,254
47,067

Exchange difference arising on movement between opening and closing spot rates
920
-

RDEC
55,783
-

Other permanent differences
-
(21,030)

Total tax charge for the year
442,801
63,989


Factors that may affect future tax charges

The Company has taxable losses of $Nil (2022 - $506,895) which can be used to offset any future taxable profits.
Deferred tax is provided for at 25% as that was the substantively enacted rate at the reporting date.

- 18 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Tangible fixed assets





Plant & machinery
Fixtures & fittings
Computer equipment
Total

$
$
$
$



Cost


At 1 January 2023
5,332,139
29,067
43,065
5,404,271


Additions
7,250
17,639
13,677
38,566


Transfers from group entities
2,286,205
-
-
2,286,205


Disposals
(270,102)
-
-
(270,102)


Transfers to group entities
(1,766,917)
-
-
(1,766,917)



At 31 December 2023

5,588,575
46,706
56,742
5,692,023



Depreciation


At 1 January 2023
4,249,993
29,067
43,065
4,322,125


Charge for the year
595,376
2,066
13,677
611,119


Transfers from group entities
791,881
-
-
791,881


Disposals
(241,805)
-
-
(241,805)


Transfers to group entities
(1,469,439)
-
-
(1,469,439)



At 31 December 2023

3,926,006
31,133
56,742
4,013,881



Net book value



At 31 December 2023
1,662,569
15,573
-
1,678,142



At 31 December 2022
1,082,146
-
-
1,082,146

- 19 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Fixed asset investments





Investments in associates

$



Cost 


At 1 January 2023
650,000



At 31 December 2023
650,000




The Company held a 49% shareholding in TGT Oilfield Services LLC.



8.


Stocks

2023
2022
$
$

Consumables
22,491
39,851



9.


Debtors

2023
2022
$
$


Trade debtors
1,353,320
846,244

Amounts owed by group undertakings (note 16)
16,330,264
11,940,503

Other debtors
81,742
160,527

Prepayments and accrued income
811,715
335,235

18,577,041
13,282,509


- 20 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Creditors: Amounts falling due within one year

2023
2022
$
$

Trade creditors
182,421
215,254

Amounts owed to group undertakings (note 16)
20,587,427
15,468,075

Corporation tax
44,342
-

Other taxation and social security
140,815
136,108

Other creditors
12,045
11,025

Accruals and deferred income
468,133
445,701

Withholding tax payable
10,335
-

21,445,518
16,276,163



11.


Deferred taxation




2023


$






At beginning of year
(117,687)


Charged to the Statement of Comprehensive Income
(263,287)



At end of year
(380,974)

The provision for deferred taxation is made up as follows:

2023
2022
$
$


Fixed asset timing differences
(419,536)
(270,537)

Short term timing differences
38,562
26,126

Losses and other deductions
-
126,724

(380,974)
(117,687)

- 21 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Share capital

2023
2022
$
$
Allotted, called up and partly paid



2,000,001 (2022 - 2,000,001) Ordinary shares of £1.00 each
2,650,761
2,650,761

The Company has one class of Ordinary shares which carry voting rights but no rights to fixed income.



13.


Reserves

Profit & loss account

This reserve includes all current and prior period retained profits and losses.
The movement in the current and prior years relates solely to the profits and losses made in the year.


14.


Pension commitments

The Company makes contributions to defined contribution schemes for certain employees. The assets are held separately from those of the Company in independently administered schemes. The pension cost charge represents contributions payable by the Company to the fund and amounted to $50,529 (2022 - $45,976).
Included within other creditors (note 10) are pension contributions outstanding of $12,045 (2022 - $11,025).


15.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
$
$



Not later than 1 year
33,686
18,815

Later than 1 year and not later than 5 years
14,517
2,719

48,203
21,534

- 22 -

 
TGT OILFIELD SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Related party transactions

The Company has taken advantage of the exemptions within FRS 102 and accordingly transactions between wholly owned companies within the group are not disclosed.
During the year, Company generated revenue of $938,713 (2022 - $1,828,209) from TGT Oilfield Services LLC and incurred $929,419 (2022 - $1,797,632) of expenses, included in intercompany cost of sales, on behalf of TGT Oilfield Services LLC. 
At the reporting date, $421,019 (2022 - $422,366) is due from TGT Oilfield Services LLC. These amounts are unsecured, interest free and repayable on demand, and are included in amounts owed by group undertakings.
At the reporting date, $31,137 (2022 - $Nil) is due to TGT Oilfield Services LLC. These amounts are unsecured, interest free and repayable on demand, and are included in amounts owed to group undertakings. 


17.


Ultimate parent undertaking and controlling party

Up to and including 28 December 2023, the ultimate parent undertaking and controlling party was TGT Oilfield Services Limited BVI, a company registered in the British Virgin Islands. Thereafter and from 29 December 2023 onwards, the entity's ownership was transferred to Diagnostica Holding Limited who now own 100%. The smallest and largest group of undertakings for which group financial statements have been drawn up is that headed by TGT Oilfield Services Limited BVI and then subsequently Diagnostica Holding Limited. Consolidated financial statements are available from the Company's registered office at 21-25 Commerce Street, Aberdeen, Scotland, AB11 5FE.
In the opinion of the Directors, the Company's ultimate controlling party is now Mr Omar Muneeb Rasheed Almasri by virtue of his shareholding in Diagnostica Holding Limited.

- 23 -