Holyhead Towing Company Limited 00871758 false 2023-04-01 2024-03-31 2024-03-31 The principal activity of the company is the hire of vessels for, civil engineering projects, support of offshore energy projects, dredging support, marine towage, and other non-conventional marine work. Digita Accounts Production Advanced 6.30.9574.0 true true true true true true true Class 1 Class 2 Class 3 false true false true true true false true 00871758 2023-04-01 2024-03-31 00871758 2024-03-31 00871758 bus:OrdinaryShareClass1 2024-03-31 00871758 bus:OrdinaryShareClass2 2024-03-31 00871758 core:CurrentFinancialInstruments 2024-03-31 00871758 core:CurrentFinancialInstruments core:WithinOneYear 2024-03-31 00871758 core:CurrentFinancialInstruments core:WithinOneYear 2 2024-03-31 00871758 core:FurnitureFittingsToolsEquipment 2024-03-31 00871758 core:MotorVehicles 2024-03-31 00871758 core:OtherPropertyPlantEquipment 2024-03-31 00871758 core:VehiclesPlantMachinery 2024-03-31 00871758 core:OtherProvisionsContingentLiabilities 2024-03-31 00871758 bus:FRS102 2023-04-01 2024-03-31 00871758 bus:Audited 2023-04-01 2024-03-31 00871758 bus:FullAccounts 2023-04-01 2024-03-31 00871758 bus:RegisteredOffice 2023-04-01 2024-03-31 00871758 bus:CompanySecretaryDirector2 2023-04-01 2024-03-31 00871758 bus:Director4 2023-04-01 2024-03-31 00871758 bus:Director5 2023-04-01 2024-03-31 00871758 bus:Director7 2023-04-01 2024-03-31 00871758 bus:OrdinaryShareClass1 2023-04-01 2024-03-31 00871758 bus:OrdinaryShareClass2 2023-04-01 2024-03-31 00871758 bus:Consolidated 2023-04-01 2024-03-31 00871758 bus:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 00871758 core:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 00871758 countries:Europe 2023-04-01 2024-03-31 00871758 countries:OtherCountriesRegions 2023-04-01 2024-03-31 00871758 core:ReportableOperatingSegment1 2023-04-01 2024-03-31 00871758 core:ReportableOperatingSegment2 2023-04-01 2024-03-31 00871758 core:ReportableOperatingSegment3 2023-04-01 2024-03-31 00871758 core:FurnitureFittingsToolsEquipment 2023-04-01 2024-03-31 00871758 core:MotorVehicles 2023-04-01 2024-03-31 00871758 core:OtherPropertyPlantEquipment 2023-04-01 2024-03-31 00871758 core:PlantMachinery 2023-04-01 2024-03-31 00871758 core:VehiclesPlantMachinery 2023-04-01 2024-03-31 00871758 core:OtherProvisionsContingentLiabilities 2023-04-01 2024-03-31 00871758 core:OtherRelatedParties 2023-04-01 2024-03-31 00871758 core:Subsidiary1 2023-04-01 2024-03-31 00871758 core:Subsidiary1 1 2023-04-01 2024-03-31 00871758 core:Subsidiary1 countries:EnglandWales 2023-04-01 2024-03-31 00871758 core:Subsidiary2 2023-04-01 2024-03-31 00871758 core:Subsidiary2 1 2023-04-01 2024-03-31 00871758 core:Subsidiary2 countries:Guernsey 2023-04-01 2024-03-31 00871758 core:Subsidiary3 2023-04-01 2024-03-31 00871758 core:Subsidiary3 1 2023-04-01 2024-03-31 00871758 core:Subsidiary3 countries:EnglandWales 2023-04-01 2024-03-31 00871758 core:Subsidiary4 2023-04-01 2024-03-31 00871758 core:Subsidiary4 1 2023-04-01 2024-03-31 00871758 core:Subsidiary4 countries:Cyprus 2023-04-01 2024-03-31 00871758 core:UKTax 2023-04-01 2024-03-31 00871758 1 2023-04-01 2024-03-31 00871758 countries:EnglandWales 2023-04-01 2024-03-31 00871758 2023-03-31 00871758 core:CostValuation 2023-03-31 00871758 core:FurnitureFittingsToolsEquipment 2023-03-31 00871758 core:MotorVehicles 2023-03-31 00871758 core:OtherPropertyPlantEquipment 2023-03-31 00871758 2022-04-01 2023-03-31 00871758 2023-03-31 00871758 bus:OrdinaryShareClass1 2023-03-31 00871758 bus:OrdinaryShareClass2 2023-03-31 00871758 core:CurrentFinancialInstruments 2023-03-31 00871758 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 00871758 core:CurrentFinancialInstruments core:WithinOneYear 2 2023-03-31 00871758 core:FurnitureFittingsToolsEquipment 2023-03-31 00871758 core:MotorVehicles 2023-03-31 00871758 core:OtherPropertyPlantEquipment 2023-03-31 00871758 core:VehiclesPlantMachinery 2023-03-31 00871758 countries:Europe 2022-04-01 2023-03-31 00871758 countries:OtherCountriesRegions 2022-04-01 2023-03-31 00871758 core:ReportableOperatingSegment1 2022-04-01 2023-03-31 00871758 core:Subsidiary1 1 2022-04-01 2023-03-31 00871758 core:Subsidiary2 1 2022-04-01 2023-03-31 00871758 core:Subsidiary3 1 2022-04-01 2023-03-31 00871758 core:Subsidiary4 1 2022-04-01 2023-03-31 00871758 core:UKTax 2022-04-01 2023-03-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 00871758

Holyhead Towing Company Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2024

 

Holyhead Towing Company Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Statement of Income and Retained Earnings

9

Balance Sheet

10

Notes to the Financial Statements

11 to 25

 

Holyhead Towing Company Limited

Company Information

Directors

M B Gould

J R Burns

J M Meade

A Darroch

Company secretary

M B Gould

Registered office

Newry Beach Yard
Holyhead
Anglesey
LL65 1YB

Auditors

Aston Hughes Limited
Chartered Accountants and Statutory Auditors
Selby Towers
29 Princes Drive
Colwyn Bay
Conwy
LL29 8PE

 

Holyhead Towing Company Limited

Strategic Report for the Year Ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

Principal activity

The principal activities of the company are the hire of vessels for, civil engineering projects, support of offshore energy projects, dredging support, marine towage, and other non-conventional marine work.

Fair review of the business

Despite the uncertainties caused by the Parent Company Shareholders’ decision to sell the Company, it is a tribute to the dedication, perseverance, and skill of Holyhead Towing Company personnel that the Company has increased turnover with a profit of £1.37M. Excessively long delivery times for essential spares has adversely affected profitability.

The Company operates worldwide and is now well in excess of its pre-pandemic levels of trading. The outlook for 2024-2025 is very positive with a high level of confirmed charters from pre-existing and new customers. The effects of Brexit remain a challenge, but the Company has been able to trade in Europe successfully, and indications are that it will continue to do so.

Vessel values continue to be accounted for on the basis of cost less depreciation, but the market value is very significantly in excess of net book value as evidenced by previous independent valuations and sales of vessels.

Key performance indicators

Divisional EBITDA (defined as earnings before interest, tax, depreciation, and amortization) is a key financial measure and is the principal focus of performance review by management during the year. Vessel utilization both individually, and on an overall basis and vessel profitability on an individual basis, are the key operational indicators for the Company. These are monitored closely by the Board both at an actual and forecast level. Divisional EBITDA for the year was £3.85M, (2023 – £4.78M). Vessel utilisation in the year was 86% (2023 - 82%).

 

Holyhead Towing Company Limited

Strategic Report for the Year Ended 31 March 2024

Principal risks and uncertainties

Trading risks and uncertainties

A significant proportion of the Company’s turnover arises from oil industry related activities particularly in the Gulf. There are several associated risks including the effect of oil price movements, political instability in the region, environmental risks, and customer related risks. However, Towing has been operating in the region for many years building up significant knowledge and expertise to react to any significant changes in the region, taking any necessary actions in a timely manner. The greatest risk for the coming year is the continuing worldwide economic uncertainty caused by such regional challenges as Ukraine and in the Red Sea. Nonetheless, as previously mentioned, the Company has still been able to make a good recovery in a difficult market.


Liquidity Risks
Historically, the Company’s profits are mostly retained so that opportunities can be exploited when they arise.

Currency Risks
As a result of the world-wide nature of the Company’s operations, a significant percentage of the Company’s income is received in US dollars and Euros. Where foreign currency surpluses are foreseen, appropriate actions are taken including, where necessary, selling forward those foreign currency surpluses.
 

Cashflow Risks
The Company monitors cashflows very closely with short term and annual forecasts produced on a regular basis so that appropriate corrective action can be taken in a timely manner.

Interest Rate Risks
The Company has no long term borrowings and therefore has no exposure to movements in interest rates.

Credit Risks
The Company has a very active Credit Management System and, where appropriate, advance payments of charter are received, and guarantees may be secured.
 

Approved and authorised by the Board on 26 July 2024 and signed on its behalf by:
 

.........................................
M B Gould
Company secretary and director

 

Holyhead Towing Company Limited

Directors' Report for the Year Ended 31 March 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors of the company

The directors who held office during the year were as follows:

M B Gould - Company secretary and director

J R Burns

J M Meade

A Darroch

Strategic report

In accordance with section 414C (11) of the Companies Act 2006 (Strategic and Directors report) regulations 2013 the company's strategic report information required by schedule 7 of the large and medium-size companies and groups (Accounts and reports) regulations 2008 is noted in the strategic report.

Financial risk management objectives and policies

Information concerning price risk, credit risk, liquidity risk and cash flow risk affecting company have been set out in the strategic report.

Future developments

Forecast utilisation rates for the existing Towing Fleet look promising, and the Directors have produced a vessel development programme which, given the appropriate investment by new Owners, would substantially boost the Company’s profits. It is to be hoped that a sale will be completed shortly, but in the meantime, it is very much business as usual from a committed Board and Management Team.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Aston Hughes Limited as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved and authorised by the Board on 26 July 2024 and signed on its behalf by:
 

.........................................
M B Gould
Company secretary and director

 

Holyhead Towing Company Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 enable them to ensure that the financial statements comply with the Companies Act 2006 and in accordance with Financial Reporting Standard 102 'the Financial Reporting Standard applicable in the UK and Republic of Ireland' . 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.

 

Holyhead Towing Company Limited

Independent Auditor's Report to the Members of Holyhead Towing Company Limited

Opinion

We have audited the financial statements of Holyhead Towing Company Limited (the 'company') for the year ended 31 March 2024, which comprise the Statement of Income and Retained Earnings, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 March 2024 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 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 director's 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 original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Holyhead Towing Company Limited

Independent Auditor's Report to the Members of Holyhead Towing Company Limited

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

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

 

Holyhead Towing Company Limited

Independent Auditor's Report to the Members of Holyhead Towing Company Limited

We considered the nature of the of the company’s industry and control environment and reviewed policies and procedures relating to fraud and compliance with laws and regulations. We also enquired with management about their own identification and assessment of the risk of irregularities.

The audit team discussed areas that may exist within the organisation for fraud or non-compliance with laws and regulations. We identified and assessed the design and effectiveness of controls management has in place. Where we considered the risks identified may have a direct material effect on the financial statements or operations of the company audit procedures were carried out.

To address the risks identified we discussed matters with key management and inspected board minutes. We have undertaken further enquiries into environmental and health and safety controls, reviewed risk registers and reviewed contracts.

The engagement team challanged assumptions and judgements made by management in its significant accounting estimates which included vessel depreciation.

In common with all audits under ISA's (UK) we are also required to perform specific procedures to respond to the risk of fraud and error through management override of controls and in response we incorporated testing of journal entries within the main accounting system and the manual entries made in the client financial reporting system.

Despite the audit being planned and conducted in accordance with ISA's (UK) there remains an unavoidable risk that misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and by their very nature, any instances of fraud or irregularity likely involve collusion, forgery, intentional representations or the override of controls.

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

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.

......................................
Gareth Lowe BSc ACA (Senior Statutory Auditor)
For and on behalf of Aston Hughes Limited, Statutory Auditor

Selby Towers
29 Princes Drive
Colwyn Bay
Conwy
LL29 8PE

26 July 2024

 

Holyhead Towing Company Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 March 2024

Note

2024
£

2023
£

Turnover

3

19,552,481

18,933,429

Cost of sales

 

(17,119,790)

(16,616,621)

Gross profit

 

2,432,691

2,316,808

Administrative expenses

 

(1,546,595)

(503,430)

Other operating income

4

480,000

480,000

Operating profit

6

1,366,096

2,293,378

Interest payable and similar charges

7

-

(70,262)

 

-

(70,262)

Profit before tax

 

1,366,096

2,223,116

Taxation

11

(378,372)

(271,647)

Profit for the financial year

 

987,724

1,951,469

Retained earnings brought forward

 

12,057,168

10,105,699

Retained earnings carried forward

 

13,044,892

12,057,168

 

Holyhead Towing Company Limited

(Registration number: 00871758)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

2,410,906

2,667,092

Investments

13

88

88

 

2,410,994

2,667,180

Current assets

 

Debtors

14

20,998,234

19,090,898

Cash at bank and in hand

 

760,568

2,005,487

 

21,758,802

21,096,385

Creditors: Amounts falling due within one year

16

(10,610,763)

(11,617,161)

Net current assets

 

11,148,039

9,479,224

Total assets less current liabilities

 

13,559,033

12,146,404

Provisions for liabilities

17

(424,905)

-

Net assets

 

13,134,128

12,146,404

Capital and reserves

 

Called up share capital

89,236

89,236

Retained earnings

20

13,044,892

12,057,168

Shareholders' funds

 

13,134,128

12,146,404

Approved and authorised by the Board on 26 July 2024 and signed on its behalf by:
 

.........................................
J R Burns
Director

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital incorporated in England and Wales. The company registered number is 00871758.

The address of its registered office is:
Newry Beach Yard
Holyhead
Anglesey
LL65 1YB

These financial statements were authorised for issue by the Board on 26 July 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Departure from requirements of FRS 102

The company has departed from para 30.7 of FRS 102 requiring a transaction to be reported at the spot exchange rate at the date of a transaction. Instead the company uses a standard exchange rate which is updated periodically. The company adopts this policy to allow operational performance to be assessed in a more consistent manner. The use of a standard exchange rate, while having no impact on net profit, contributed to a smaller exchange rate gain of £289,745 (2023: £1,082,534), though with a commensurately lower turnover, than would have been the case had the FRS 102 standard accounting treatment been applied.

Summary of disclosure exemptions

In accordance with FRS 102, the company has taken advantage of the exemptions from the following disclosure requirements:

- Section 7 'Statement of Cashflow' - Presentation of a Statement of Cashflow and related notes and disclosures.

- Section 11 'Basic Financial Instruments' & Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest, income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value change recognised in profit and loss and in other comprehensive income.

- Section 33 'Related Party Disclosures' - Compensation for key management personnel, and the disclosure exemptions from paragraph 33.1A from disclosing transactions entered into between two or more members of a group.

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Group accounts not prepared

The company has claimed exemption from preparing group accounts in accordance with Section 400 of the Companies Act 2006, as the company's accounts are included in the group accounts of a larger group. The name of the parent company is Holyhead Boatyard Limited..

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information including budgets and future cashflows in making their assessment. Based on these assessments the directors have concluded there is a reasonable expectation that the group and company have adequate resources to continue in operational existence for the foreseeable future.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
- The amount of revenue can be reliably measured and;
- It is probable that future economic benefits will flow to the entity.

Finance income and costs policy

When the interest is due and there is a reasonable expectation that the income will be received.
On the due date when dividends are declared as receivable.

Foreign currency transactions and balances

Transactions in foreign currencies are recorded at a standard exchange rate, the profit or loss on exchange is recorded once the balance has been settled, monetary assets and liabilities denominated in foreign currencies are re-translated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Depreciation

Depreciation is charged so as to write off the cost of assets, taking into account anticipated residual value of assets, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and equipment

15-26 years

Motor vehicles

5 years straight line

Investments

Investments in subsidiaries and associated undertakings are recorded a cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Critical accounting judgements and key sources of estimation uncertainty

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

In the application of the Company’s accounting policies which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 and are reviewed and updated regularly. The critical accounting judgements and key source of estimation uncertainty are considered to be;

Critical accounting judgements

The following judgements, apart from those involving estimates, have had the most significant effect on amounts recognised in the financial statments.

Assessment of the carrying value of vessels
Following an impairment review and change in accounting method in 2020 vessels are depreciated on a straight line basis over their remaining useful economic life. The directors consider that the current book value of the vessel are prudent, however, directors will continue to monitor the position closely.

Periodic vessel surveys
Vessels are required to complete periodic surveys, capitalisation of these costs is permitted under the financial reporting standard, however, the Company expenses the surveys as the expenditure is incurred because he nature of the emergent work is uncertain.

Deferred tax assets;
The tax write down values are greater than the net book value for the plant and machinery, deferred tax asset is not recognised because the timing difference is not projected to reverse based on current activities in the foreseeable future.

Critical accounting estimates

The company makes estimates concerning the future, the estimates are likely to vary from the related actual result, the following estimates are considered to be key areas of estimation uncertainty.

Discounts
Discounts are agreed with some customers, the entity estimates a liability for potential discounts based on the level of activity with those customers.
 

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

3

Turnover

The analysis of the company's turnover for the year by class of business is as follows:

2024
 £

2023
 £

Vessel chartering

19,552,481

18,933,429

The analysis of the company's turnover for the year by market is as follows:

2024
 £

2023
 £

Europe

5,749,189

5,261,616

Rest of world

13,803,292

13,671,813

19,552,481

18,933,429

4

Other operating income

Other operating income is derived from management fees 2024: £480,000 (2023: £480,000).

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
 £

2023
 £

Gain/loss on disposal of property, plant and equipment

2,600

8,865

6

Operating profit

Arrived at after charging/(crediting)

2024
 £

2023
 £

Depreciation expense

297,681

295,643

Foreign exchange gains

(289,745)

(1,082,534)

Profit on disposal of property, plant and equipment

(2,600)

(8,865)

Exceptional item - write off of intercompany debt

-

24,935

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

7

Interest payable and similar expenses

2024
 £

2023
 £

Interest on bank overdrafts and borrowings

-

11,304

Interest expense on other finance liabilities

-

58,958

-

70,262

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
 £

2023
 £

Wages and salaries

1,302,691

1,300,888

Social security costs

78,578

74,631

Pension costs, defined contribution scheme

127,546

88,890

Other employee expense

90,172

55,696

1,598,987

1,520,105

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

15

16

Other departments

8

6

23

22

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
 £

2023
 £

Remuneration

95,595

97,065

Contributions paid to money purchase schemes

21,801

20,955

117,396

118,020

During the year the number of directors who were receiving benefits were as follows:

2024
 No.

2023
 No.

Accruing benefits under money purchase pension scheme

1

1

10

Auditors' remuneration

2024
 £

2023
 £

Audit of the financial statements

21,829

17,200

Other fees to auditors

Taxation compliance services

2,000

2,000


 

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

11

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

378,372

271,647

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,366,096

2,223,116

Corporation tax at standard rate

341,524

422,392

Effect of expense not deductible in determining taxable profit (tax loss)

375

8,387

Effect of tax losses

-

(38,613)

Decrease in UK and foreign current tax from adjustment for prior periods

-

(192,120)

Tax increase from effect of capital allowances and depreciation

36,473

54,534

Tax increase arising from overseas tax suffered/expensed

-

17,067

Total tax charge

378,372

271,647


The amount of double taxation relief at the balance sheet date is £378,372 (2023: £443,336).

Deferred tax

Deferred tax assets and liabilities

A deferred tax asset has not been recognised in respect of delayed capital allowances where the tax written value of assets exceeds the net book value. The unrecognised deferred tax asset at the balance sheet date is £254,172 (2023: £217,049).

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

12

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 April 2023

198,487

99,443

13,637,966

13,935,896

Additions

-

41,495

-

41,495

Disposals

-

(35,886)

-

(35,886)

At 31 March 2024

198,487

105,052

13,637,966

13,941,505

Depreciation

At 1 April 2023

198,487

79,189

10,991,128

11,268,804

Charge for the year

-

10,742

286,939

297,681

Eliminated on disposal

-

(35,886)

-

(35,886)

At 31 March 2024

198,487

54,045

11,278,067

11,530,599

Carrying amount

At 31 March 2024

-

51,007

2,359,899

2,410,906

At 31 March 2023

-

20,254

2,646,838

2,667,092

Restriction on title and pledged as security

All fixed assets with a carrying amount of £2,410,906 (2023 - £2,667,092) have been pledged as security for bank loans and overdrafts provided to the company and the group.

13

Investments

2024
 £

2023
 £

Investments in subsidiaries

88

88

Subsidiaries

£

Cost or valuation

At 1 April 2023

88

Provision

Carrying amount

At 31 March 2024

88

At 31 March 2023

88

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

Turbine Transfers Limited

Newry Beach Yard, Holyhead Anglesey, LL65 1YB

England and Wales

Ordinary shares

100%

100%

Holyhead Towing (Guernsey) PCC Limited

PO Box 112, St Martins House, Le Bordage, St Peter Port, Guernsey, GY1 4EA

Guernsey

Ordinary shares

100%

100%

Church Bay Limited

Newry Beach Yard, Newry Beach, Holyhead, Anglesey, Wales, LL65 1YB

England and Wales

Ordinary (indirect)

100%

100%

Holyhead Towing Company (Cyprus) Ltd

Anastasis Sioukri & Olympia
Themis Tower, Floor 6
3035
Limassol

Cyprus

Ordinary

100%

100%

Holyhead Towing (Guernsey) PCC Limited is a protected cell company limited by shares and incorporated in Guernsey. In August 2023, Holyhead Towing Company (Guernsey) Limited, was converted to Holyhead Towing (Guernsey) PCC Limited.

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Subsidiary undertakings

Turbine Transfers Limited

The principal activity of Turbine Transfers Limited is not active.

Holyhead Towing (Guernsey) PCC Limited

The principal activity of Holyhead Towing (Guernsey) PCC Limited is that of an employment agency.

Church Bay Limited

The principal activity of Church Bay Limited is not active.

Holyhead Towing Company (Cyprus) Ltd

The principal activity of Holyhead Towing Company (Cyprus) Ltd is vessel hire.

14

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

4,625,068

4,106,192

Amounts owed by related parties

23

15,628,497

13,907,641

Other debtors

 

41,135

302,991

Prepayments

 

325,163

330,738

Corporation tax asset

11

378,371

443,336

   

20,998,234

19,090,898

15

Cash and cash equivalents

2024
 £

2023
 £

Cash on hand

29,312

32,216

Cash at bank

731,256

1,973,271

760,568

2,005,487

Bank overdrafts

-

(297,725)

Cash and cash equivalents

760,568

1,707,762

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

16

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

21

-

297,725

Trade creditors

 

1,695,620

1,310,094

Amounts due to related parties

23

6,822,639

7,564,575

Social security and other taxes

 

19,555

15,496

Other payables

 

384,463

256,711

Accrued expenses

 

1,306,750

1,725,860

Corporation tax liability

 

381,736

446,700

 

10,610,763

11,617,161

17

Provisions for liabilities

Other provisions
£

Total
£

Additional provisions

424,905

424,905

At 31 March 2024

424,905

424,905

A customer has paid a cancelation charge for two vessels, 50% will become re-payable if the contract commences within twelve months and those vessels are used on the contract.

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £127,546 (2023 - £88,890).

At the balance sheet date £8,412 of contributions were due by the company (2023 - £13,844).

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

19

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary of £1 each

8

8

8

8

Deferred of £1 each

89,228

89,228

89,228

89,228

 

89,236

89,236

89,236

89,236

20

Reserves

Profit and loss account

Represents the cumulative profits or losses net of dividends paid and other adjustments

21

Loans and borrowings

2024
 £

2023
 £

Current loans and borrowings

Bank overdrafts

-

297,725

Bank loans and overdrafts are secured.
There is a composite banking arrangement, under the terms of the agreement and the guarantees the bank is authorised to allow set-off for interest purposes and in certain circumstances to claim credit balances and apply them in reduction of liabilities including debit balances within the composite accounting arrangement. Assets of the Company are subject to a Cross-Company Guarantee securing the liabilities owed by all the other Group Companies with the exception of Church Bay Limited and Holyhead Towing Company (Cyprus) Limited. Holyhead Towing Cyprus Ltd guarantees the other Group companies’ obligations to ABN AMRO Asset Based Finance NV. All Group Companies are ultimately wholly owned by Holyhead Boatyard Limited.

22

Commitments

Other financial commitments

At the balance sheet date the company was committed to maintenence work on two vessels which has not been provided for in the financial statements.
The total amount of other financial commitments not provided in the financial statements was £Nil (2023 - £73,493).

 

Holyhead Towing Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

23

Related party transactions

Summary of transactions with joint ventures

Summary of transactions with other related parties

A company controlled by a director of the entity. The company is charged for maintenance work carried out by the related party.
 The balance owed to the company at the year end was £134,139 (2023: £nil), the total value of transaction during the year was £155,466 (2023: £173,620)
 

24

Parent and ultimate parent undertaking

The company's immediate parent is Holyhead Boatyard Limited, incorporated in England and Wales.

 The ultimate parent is Holyhead Boatyard Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is Holyhead Boatyard Limited. These financial statements are available upon request from Companies House

 

The address of Holyhead Boatyard Limited is:

Newry Beach Yard
Newry Beach
Holyhead
LL65 1YB