Company registration number 03320915 (England and Wales)
PROSAFE OFFSHORE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PROSAFE OFFSHORE LIMITED
COMPANY INFORMATION
Directors
R W McNeel
R D Stewart
Secretary
LC Secretaries Limited
Company number
03320915
Registered office
First Floor
Templeback
10 Temple Back
Bristol
United Kingdom
BS1 6FL
Auditor
Azets Audit Services
37 Albyn Place
Aberdeen
AB10 1JB
United Kingdom
PROSAFE OFFSHORE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
PROSAFE OFFSHORE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company during the year was the provision of management services including technical supervision, procurement and manning services, operational support and contract administration services for offshore semi-submersible support rigs.

Business review

The profit for the company for the year ended 31 December 2023 was £1,399,000 (2022: £1,904,000). On 31 December 2023 the net assets were £12,026,000 (2022: £10,627,000).

Principal risks and uncertainties

The wider Prosafe Group's principal risks and uncertainties are around any change in the global oil price which may affect operators demand for the semi-submersible rigs provided by Prosafe SE.

Key performance indicators

The financial key performance indicators are set out below:

 

2023             2022

Turnover            £8,856k            £8,084k

Operating profit        £1,419k            £1,933k

Operating margin        16%            24%    

Profit before tax        £1,399k            £1,904k

Future developments

Volatility in oil prices are likely to continue to impact on the Prosafe SE Group's future activity and performance. Higher energy prices are currently supporting improved customer demand for the semi-submersible rigs operated by the Group. This in turn will impact the activities undertaken by the company on behalf of the Group.

Going concern

The Company's revenue is wholly derived from its trade with other entities within the Group headed by Prosafe SE ("the Group"). The Board and management have prepared the Group's annual financial statements for 2023 on a going concern basis. The Company remains essential to Group operations with the Company being utilised for such operations through to atleast 31 December 2025. Thus, the Company adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the board

R D Stewart
Director
6 August 2024
PROSAFE OFFSHORE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

 

Certain information including in respect of the company's principal activity, is not shown in the directors' report because it is shown in the strategic report instead under S414C(11).

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

R W McNeel
R D Stewart
Political donations

The company made no political disclosures during the year.

Financial instruments

Details of the company's financial instruments are disclosed in notes 11, 12 and 13 of the financial statements.

Statement of disclosure to auditor

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

Auditor

Pursuant to section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and Azets Audit Services will therefore continue in office.

On behalf of the board
R D Stewart
Director
6 August 2024
PROSAFE OFFSHORE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible 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), including FRS 101 Reduced Disclosure Framework

 

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PROSAFE OFFSHORE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROSAFE OFFSHORE LIMITED
- 4 -
Opinion

We have audited the financial statements of Prosafe Offshore Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

PROSAFE OFFSHORE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROSAFE OFFSHORE LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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'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.

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

PROSAFE OFFSHORE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROSAFE OFFSHORE LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Matthew Allan (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
6 August 2024
Chartered Accountants
Statutory Auditor
37 Albyn Place
Aberdeen
United Kingdom
AB10 1JB
PROSAFE OFFSHORE LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£000
£000
Turnover
3
8,856
8,084
Operating expenses
(7,437)
(6,151)
Operating profit
4
1,419
1,933
Interest payable and similar expenses
7
(20)
(29)
Profit before taxation
1,399
1,904
Tax on profit
8
-
0
-
0
Profit for the financial year
1,399
1,904

Turnover and operating profit arises from continuing operations in the United Kingdom.

The notes on pages 11 to 20 form part of these financial statements.

PROSAFE OFFSHORE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£000
£000
Profit for the year
1,399
1,904
Total comprehensive income for the year
1,399
1,904

The notes on pages 11 to 20 form part of these financial statements.

PROSAFE OFFSHORE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£000
£000
£000
£000
Non-current assets
Property, plant and equipment
10
45
349
Right-of-use assets
10
371
528
416
877
Current assets
Trade and other receivables
11
6,126
6,352
Cash and cash equivalents
7,576
4,801
13,702
11,153
Current liabilities
12
(1,805)
(912)
Net current assets
11,897
10,241
Total assets less current liabilities
12,313
11,118
Non-current liabilities
12
(204)
(408)
Provisions for liabilities
Other provisions
15
(83)
(83)
Net assets
12,026
10,627
Equity
Called up share capital
17
-
0
-
0
Retained earnings
12,026
10,627
Total equity
12,026
10,627
The financial statements were approved by the board of directors and authorised for issue on 6 August 2024 and are signed on its behalf by:
R D Stewart
Director
Company registration number 03320915
PROSAFE OFFSHORE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Retained earnings
Total
£000
£000
£000
Balance at 1 January 2022
-
8,723
8,723
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,904
1,904
Balance at 31 December 2022
-
0
10,627
10,627
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,399
1,399
Balance at 31 December 2023
-
0
12,026
12,026
PROSAFE OFFSHORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Prosafe Offshore Limited is a private company limited by shares incorporated, domiciled and registered in England in the UK. The registered number is 03320915 and the registered address is First Floor Templeback, 10 Temple Back, Bristol, United Kingdom, BSI 6FL.

 

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements.

1.1
Accounting convention

The financial statements have been prepared in accordance with applicable accounting standards and under the historic cost accounting rules.

 

In preparing these financial statements, the company has applied the recognition, measurement and disclosure requirements of UK-adopted international accounting standards, making amendments where necessary in order to comply with the the Companies Act 2006. The company has also taken advantage of the available FRS 101 disclosure exemptions in relation to the following:

 

 

The company's ultimate parent, Prosafe SE includes the company in its consolidated financial statements. The financial statements of Prosafe SE are prepared in accordance with International Financial Reporting Standards and are available to the public and may be obtained from Forusparken 2, 4064 Stravanger, Norway.

 

The consolidated financial statements of Prosafe SE include the disclosures required by IFRS 7 Financial Instruments: Disclosure and IFRS 13 Fair Value Measurements, both relating to financial instruments and IFRS 2 Share-Based Payments in respect of group settled share-based payments. As a consequence, the company has also taken the exemption under FRS 101 not to include the equivalent disclosures.

 

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.

PROSAFE OFFSHORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern

The financial statements for the Company have been prepared on a going concern basis which the directors believe to be appropriate for the following reasons.true

 

The Company's profit before tax for the year was £1,399,000 and cash held at 31 December 2023 was £7,576,000. The principal activity of the Company relates to the provision of management services to related companies in the Prosafe SE group and is forecast to continue at a similar level in the next twelve months. Costs incurred by the Company are likely to vary based on activity but are contracted to be recovered, together with a margin, through the Company earning management fee income.

 

In relation to the wider Prosafe SE group operation ('the Group), the Board of Directors has a reasonable expectation that the Group have adequate resources to continue in operational existence for the foreseeable future. The Group had substantial investments in 2023 due to the mobilisation of vessels for new contracts, a special periodic survey, and contract compliance works that commenced in 2023. A private placement was successfully done in May 2023 to fund the shortfall in liquidity needed for these investments. At the end of 2023 a second private placement, followed by a subsequent offering, was conducted to mitigate a risk of covenant breach and potential liquidity shortfall from Q1 2024. Future financing needs and compliance with the financial covenants will depend on the timing, location and terms of potential future contract awards and amount of associated mobilisation, modification and working capital required. Management is using a forecast model to monitor and forecast the Group's performance and liquidity situation on a rolling 12-month basis with the credit facilities maturing on 31 December 2025.

 

The circumstances do not represent a material uncertainity that may cast significant doubt on the Company's ability to continue as a going concern and, therefore, to continue realising its assets and discharging its liabilities in the normal course of business.

1.3
Turnover

Turnover, which excludes value added tax, is attributable to one continuing activity, the provision of management services in relation to offshore accomodation.

 

Turnover is recognised at an amount that reflects the consideration to which the company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer; the company identifies the contract with the customer, identifies the separable performance obligations in the contract; determines the overall transaction (contract) price, allowing (if applicable) for estimates of variable consideration and the time value of money; allocates the transaction price across the separable performance obligations on the basis of the relative entire contract (or on specific performance obligations if more appropriate); and recognises turnover when, or as, each performance obligation is satisfied in a matter that reflects the transfer of control of the goods or services promised to the customer. The variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds and any other contingent events. Such estimates are determined using the expected value method and are only recognised when they are highly probable. If any uncertainty exists with respect to a potential refund of the variable consideration received, this consideration is recognised as deferred income until the uncertainty is resolved.

 

Where the company acts as an agent, turnover is recognised on a net basis to reflect commissions or fees earned. The company typically acts as agent in respect of the supply of third party procurement and crewing personnel when it does not control the specified good or service (or a right to receive a good or service) before it is transferred to the customer.

 

Costs to obtain and to fulfil a contract are, subject to certain criteria, capitalised as a contract cost and amortised over the contract period.

PROSAFE OFFSHORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Property, plant and equipment

The cost of fixed assets is their purchase cost, together with any incidental costs of acquisition.

Depreciation is calculated so as to write off the cost of tangible fixed assets less their estimated residual values on a straight line basis over the expected useful economic lives of the assets concerned or their remaining useful lives if less. The principal annual rates used for this purpose are:

Leasehold improvements
20% per annum
Office equipment
20% - 40% per annum
Right of use assets
Over the term of the lease

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

1.5
Taxation
Current tax

Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or received) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date will result in an obligation to pay more, or right to pay less or to receive more, tax, with the following exceptions: Deferred tax assets are recognised only to the extent that the directors consider that is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax is measure on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

1.6
Provisions

A provision is recognised in the balance sheet when the Company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax ate that reflects risks specific to the liability.

1.7
Employee benefits

The company contributes to personal pension plans, whereby the pension costs are charged to the profit and loss account as they are incurred.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROSAFE OFFSHORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.8
Share-based payments

The parent company, Prosafe SE grants equity settled share-based payments to group employees, including certain employees of the company. The share options and deferred awards granted to any colleagues across the Prosafe SE Group are in respect of ordinary shares in the parent company.

 

The grant date fair value of equity-settled share-based payment arrangements is recognised as an expense over the vesting period of the awards and credited to equity. Prosafe SE is reimbursed by the Company for the value of the share-based payment expense relating to share options granted to colleagues employed by the Company. Amounts recharged by the parent are recognised as a recharge liability with a corresponding debit to equity.

 

The amount recognised as an expense is adjusted to reflect the number of awards for which the related service are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service at the vesting date. At each balance sheet date, the Group revises its estimates of the number of shares under options that are expected to become exercisable on the vesting date and recognises the impact of the revision of the estimates in profit or loss, with a corresponding adjustment to the equity over the remaining vesting period.

1.9
Leases

A lease is defined as a contract, or part of a contract, that conveys the right to use an asset for a period of time in exchange for consideration. A single model for all leases is employed with the exception of leases for low-value assets or for periods of twelve months or less which are expensed to the income statement. The single model requires lessees to recognise most leases within the balance sheet as lease liabilities. A corresponding right-of-use asset is recognised which represents the contractual right to use the leased asset for a period of time

 

The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the company by the end of the lease term or the cost of the right-of-use asset reflects that the company will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

 

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, there is a change in the company's estimate of the amount expected to be payable under a residual value guarantee, if the company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

1.10
Foreign exchange

Trading transaction denominated in foreign currencies are translated into sterling at the rate of exchange ruling when the transaction was entered into. Monetary assets and liabilities expressed in foreign currencies are translated to sterling at rates of exchange ruling at the end of the financial year.

1.11

Trade and other debtors

Trade and other debtors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any provision for expected credit losses. The company has applied the simplified approach to measuring the expected credit loss which uses a lifetime expected loss allowance.

PROSAFE OFFSHORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.12

Trade and other creditors

Trade and other creditors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

2
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Lease term

Judgement was required at lease inception to determine the minimum lease term of the company's new office lease, which was determined at five years. A further five year period, after a break clause option exercisable by the company, was not considered to be reasonably probably at lease inception.

3
Turnover
2023
2022
£000
£000
Turnover analysed by class of business
Rendering of services - Management services relating to offshore accommodation
7,989
6,524
Rendering of services - Manning services relating to offshore acommodation
867
1,560
8,856
8,084

All turnover is raised in the United Kingdom in both current and prior years. Revenue is recognised based on services provided in the month of billing.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£000
£000
Exchange losses/(gains)
527
(149)
Fees payable to the company's auditor for the audit of the company's financial statements
25
20
Depreciation of property, plant and equipment
430
487
PROSAFE OFFSHORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the company
25
20
6
Employees

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

2023
2022
Number
Number
Number of employees
27
26
2023
2022
£000
£000
Wages and salaries
3,714
3,204
Social security costs
388
418
Pension costs
248
220
4,350
3,842

In addition to the staff costs and headcount numbers disclosed above, the company employs, as agent, crew on behalf of other group entities, the costs of which are recharged. 29 crew (2022: 53) were engaged on this basis by the company in the year.

 

None of the Directors received any director's remuneration for provision of qualifying services to the company during the financial year (2022: £nil).

 

The Directors also hold office in other company undertakings. Emoluments paid to Directors by other group companies for services to those companies are disclosed within their financial statements.

7
Finance costs
2023
2022
£000
£000
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
20
29
PROSAFE OFFSHORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
8
Taxation

The charge for the year can be reconciled to the profit per the income statement as follows:

2023
2022
£000
£000
Profit before taxation
1,399
1,904
Expected tax charge based on a corporation tax rate of 25.00% (2022: 19.00%)
350
362
Company relief received for nil consideration
(350)
(362)
Taxation charge for the year
-
-
9
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
£000
£000
In respect of:
Property, plant and equipment
49
-
0
Recognised in:
Operating expenses
49
-
PROSAFE OFFSHORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
10
Property, plant and equipment
Leasehold improvements
Office equipment
Right of use assets
Total
£000
£000
£000
£000
Cost
At 1 January 2023
168
2,097
866
3,131
Additions
-
0
-
0
18
18
At 31 December 2023
168
2,097
884
3,149
Accumulated depreciation and impairment
At 1 January 2023
57
1,859
338
2,254
Charge for the year
37
218
175
430
Impairment loss (profit or loss)
41
8
-
0
49
At 31 December 2023
135
2,085
513
2,733
Carrying Amount
At 31 December 2023
Owned assets
33
12
-
45
Right-of-use assets
-
-
371
371
33
12
371
416
At 31 December 2022
Owned assets
111
238
-
349
Right-of-use assets
-
-
528
528
111
238
528
877

More information on impairment movements in the year is given in note 9.

11
Trade and other receivables
2023
2022
£000
£000
Amounts owed by fellow group undertakings
5,226
6,146
Other receivables
112
77
Prepayments and accrued income
788
129
6,126
6,352
PROSAFE OFFSHORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
12
Liabilities
Current
Non-current
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Trade and other payables
13
1,530
601
-
0
-
0
Taxation and social security
50
100
-
-
Lease liabilities
14
225
211
204
408
1,805
912
204
408
13
Trade and other payables
2023
2022
£000
£000
Trade payables
130
129
Amounts owed to fellow group undertakings
129
67
Accruals and deferred income
1,271
405
1,530
601
14
Lease liabilities
2023
2022
£000
£000
Current liabilities
225
211
Non-current liabilities
204
408
429
619
15
Provisions for liabilities
2023
2022
£000
£000
At 31 December 2022
83
83

The provision relates to estimated dilapidation and reinstatement costs for the company's leased office premises. The effect of discounting is not material.

PROSAFE OFFSHORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
248
220

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

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
2 Ordinary shares of £1 each
2
2
2
2
2
2
2
2
18
Share-based payments

In 2022, the Prosafe SE Group initiated a long-term incentive program where executive management and selected employees, including certain employees of the company, were granted options to subscribe for ordinary shares of Prosafe SE. Additional options were granted in 2023.

 

The options granted in will vest equally over 24, 36 and 48 months from commencement date, respectively. Any options not exercised 48 or 60 months (2022: 60 months) after the commencement date will be cancelled.

 

The fair value of an option granted was estimated using the Black Scholes option pricing model and the transactions are accounted for as equity-settled share-based payment. The Company reimbursed Prosafe SE for the share-based payment expense in the year, which amounted to £287,000 (2022: £275,000).

 

The Group options outstanding at 31 December 2023 had an exercise price in the range of NOK 83.0 to NOK 109.13 (2022: 83.0 to NOK 237.5) and remaining contractual life in the range of 3.1 years to 3.8 years (2022: 4.1 years to 4.6 years).

 

There were no options exercised in both 2022 and 2023.

19
Related party transactions

The company, as a wholly owned company member, has taken advantage of the exemption under FRS 101 from disclosing transactions with wholly owned related parties that are part of the Prosafe SE Company.

20
Controlling party

At the year end, the company was a subsidiary of Prosafe SE which was the immediate parent company.

 

The ultimate parent company at the year end, and at the date of approval of these financial statements, is Prosafe SE, incorporated in Norway. The registered address is Forusparken 2, 4064 Stavanger, Norway.

 

The Prosafe SE consolidated financial statements of the Company are available to the public and may be obtained from Forusparken 2, 4064 Stavanger, Norway.

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