Registration number:
Holyhead Boatyard Limited
for the Year Ended 31 March 2024
Holyhead Boatyard Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account and Statement of Retained Earnings |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Holyhead Boatyard Limited
Company Information
Directors |
J M Meade M B Gould A Darroch I A Gray S M Graves |
Company secretary |
M B Gould |
Registered office |
|
Auditors |
|
Holyhead Boatyard 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 activity of the company is the provision of administrative services to the other companies in the Group. The principal activities of those other companies include the hire of vessels for civil engineering projects, support of offshore energy projects, dredging support, marine towage, and other non-conventional marine work, and the building, repairing and refitting of vessels and marine engineering.
Fair review of the business
Despite the uncertainties caused by the Holyhead Boatyard Company Shareholders’ decision to sell the Company, it is a tribute to the dedication, perseverance, and skill of the Holyhead Group’s personnel that the Group increased its turnover with a profit of £2.3M.
The Group operates worldwide and has delivered another excellent trading performance with positive prospects of work in 2024-25. The effects of Brexit remain a challenge, but the Group has been able to trade in Europe successfully, and indications are that it will continue to do so.
Towing Division
The Towing Division continues to benefit from significant marine-based infrastructure upgrading work and the outlook for 2024-2025 is very positive with a high level of confirmed charters from pre-existing and new customers. Forecast utilisation rates for the existing Towing Fleet look promising, and the Division made a profit of £1.37M.
Vessel values continue to be accounted for on the basis of their 2016 valuation less depreciation over 26 years from build date, and, given the increase in costs and shortage of materials for newbuild vessels, the market value is very significantly in excess of net book value as evidenced by previous independent valuations and sales of vessels.
Holyhead Marine Division
The Holyhead Marine Services Team has performed well to achieve an increased turnover and a profit of £0.93M.
There was a positive contribution from both the boat building and the boat maintenance sectors. A healthy order book, covering at least the next two years, should enable the Company to maintain healthy levels of profitability.
Holyhead Boatyard Limited
Strategic Report for the Year Ended 31 March 2024
Principal risks and uncertainties
Towing Division Trading Risks
Vessel utilization and profitability both individually, and on an overall basis is the key indicator for the Towing Division. These are monitored closely by the Board both at an actual and forecast level. A significant proportion of the Towing Division’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, the Division has been operating in the region for many years building up significant knowledge and expertise, and closely monitoring the situation to ensure that any necessary actions can be taken 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.
Marine Division Trading Risks
Whilst the Company's forward order book is at a healthy level, the business model for a significant part of the turnover is transactional in nature. However, because of the long lead times involved, any necessary remedial action can be taken in a timely manner. Boatbuilding contracts can extend over many months, or even years, and the final profitability may be uncertain until near the end of the contract. The Company adopts a conservative approach, and only recognizes profits when they can be assessed with reasonable certainty. Full provision is made for losses on all contracts in the year in which the loss is first foreseen.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
EBITDA (defined as earnings before interest, tax, depreciation and amortization) |
£ '000,000 |
4.47 |
5.90 |
Vessel utilisation |
% |
86.00 |
82.00 |
Liquidity Risks
Financial instruments are used to fund vessels appropriate to the Company's business opportunities and are tailored to be repaid from a vessel's charter income well within the life of the vessel. Historically, Group profits are mostly retained so that opportunities can be exploited when they arise. Financial agreements for working capital, and loan repayments, are in place with the Company’s Lenders to provide a stable financial platform with sufficient headroom for the operations of the Group.
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.
Holyhead Boatyard Limited
Strategic Report for the Year Ended 31 March 2024
Cashflow Risks
The Group 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 Group’s borrowings are on a fixed interest basis.
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
......................................... |
Holyhead Boatyard Limited
Directors' Report for the Year Ended 31 March 2024
The directors present their report and the for the year ended 31 March 2024.
Directors of the group
The directors who held office during the year were as follows:
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
The focus for the coming year is to continue the strong recovery. 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.
Going concern
The Group's forecasts and projections, taking into account reasonably possible changes in trading performance, show that the Group is able to operate within the level of its current facilities. The current facilities and related covenants are agreed through to 2025.
The Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements.
Disclosure of information to the auditor
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Holyhead Boatyard Limited
Directors' Report for the Year Ended 31 March 2024
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
......................................... |
Holyhead Boatyard 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 group and the company and of the profit or loss of the group 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 UK 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Holyhead Boatyard Limited
Independent Auditor's Report to the Members of Holyhead Boatyard Limited
Opinion
We have audited the financial statements of Holyhead Boatyard Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Profit and Loss Account and Statement of Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 group's and the parent company's affairs as at 31 March 2024 and of the group's 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 group 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 Boatyard Limited
Independent Auditor's Report to the Members of Holyhead Boatyard 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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 7], 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 Boatyard Limited
Independent Auditor's Report to the Members of Holyhead Boatyard 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.
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 and profit recognition on contracts.
A number of entities in the group are either not subject to an audit, or are audited by another auditor. We have designed and performed audit procedures on the relevant components to provide reasonable assurance for the group financial statements.
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 ISAs (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.
Holyhead Boatyard Limited
Independent Auditor's Report to the Members of Holyhead Boatyard Limited
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.
......................................
For and on behalf of
Selby Towers
29 Princes Drive
Conwy
LL29 8PE
Holyhead Boatyard Limited
Consolidated Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Interest payable and similar charges |
( |
( |
|
(268,968) |
(521,470) |
||
Share of loss of joint venture |
- |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
|
Retained earnings brought forward |
15,766,508 |
12,675,724 |
|
Retained earnings carried forward |
17,861,755 |
15,766,508 |
Holyhead Boatyard Limited
(Registration number: 00724907)
Consolidated Balance Sheet as at 31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
253,462 |
253,462 |
|
Capital redemption reserve |
44,731 |
44,731 |
|
Other reserves |
50,180 |
50,180 |
|
Retained earnings |
17,861,755 |
15,766,508 |
|
Equity attributable to owners of the company |
18,210,128 |
16,114,881 |
|
Shareholders' funds |
18,210,128 |
16,114,881 |
Approved and authorised by the
......................................... |
Holyhead Boatyard Limited
(Registration number: 00724907)
Balance Sheet as at 31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
- |
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
- |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
253,462 |
253,462 |
|
Capital redemption reserve |
44,731 |
44,731 |
|
Retained earnings |
6,776,316 |
7,197,329 |
|
Shareholders' funds |
7,074,509 |
7,495,522 |
The company made a loss after tax for the financial year of £421,013 (2023 - profit of £7,183,268).
Approved and authorised by the
......................................... |
Holyhead Boatyard Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Profit from disposals of investments |
- |
( |
|
Finance costs |
|
|
|
Share of loss/(profit) of equity accounted investees |
- |
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in trade debtors |
( |
( |
|
Increase in trade creditors |
|
|
|
Increase/(decrease) in provisions |
|
( |
|
(Decrease)/increase in deferred income, including government grants |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Dividend income |
- |
|
|
Proceeds from disposal of investments in joint ventures and associates |
- |
|
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Repayment of other borrowing |
- |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 April |
|
|
|
Cash and cash equivalents at 31 March |
2,461,116 |
1,848,170 |
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The nature of the Company's and the Group's operations principal activities are set out in the strategic report.
These financial statements were authorised for issue by the
The address of its registered office is:
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'.
Except for;
Departure from requirements of FRS 102
The group has departed para 30.7 of FRS 102 requiring the transaction to be reported at the spot exchange rate at the date of the transaction. Instead the group 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.
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.
The functional currency of Holyhead Boatyard Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the group operates. The consolidated financial statements are also presented in pounds sterling.
Summary of disclosure exemptions
In accordance with FRS 102, the company has taken advantage of the exemptions from the following disclosure requirements:
- Exemptions from paragraph 33.1A from disclosing transactions entered into between two or more wholly owned members of a group..
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2024.
No Profit and Loss Account and Statement of retained earnings is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a loss after tax for the financial year of £421,013 (2023 - profit of £7,183,268).
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Jointly controlled entities are accounted for using the equity method.
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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Vessel hire contracts are generally stated on a rate per day basis and income is recognised in accordance with the contract terms.
Contract revenue recognition
For ongoing maintenance contracts and vessel building contracts, revenue represents the value of work done up to the period end taking account of any anticipated losses on contracts. Profit is recognised on vessel build contracts when the stage of completion of a vessel is sufficiently advanced to provide strong evidence of the likely profitability. Profit on maintenance contracts is recognised when separate elements of the contracts have been completed.
Government grants
Government grants in respect of capital expenditure are credited to the profit and loss account over the estimated useful life of the relevant fixed assets. The grants shown in the balance sheet represent the total grants receivable to date less the amount so far credited to the profit and loss account.
Grants relating to revenue shall be recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Foreign currency transactions and balances
Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred 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 group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as 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 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.
Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.
Current tax assets and current liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Tangible assets
Tangible assets are initially stated in the statement of financial position 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 Boatyard 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, other than land and properties under construction over their estimated useful lives taking into account expected residual values at the end of the depreciation period, as follows:
Asset class |
Depreciation method and rate |
Freehold buildings |
50 years |
Vessels and floating equipment |
15 - 26 years |
Plant and machinery |
5 - 15 years |
Motor vehicles |
5 years |
Impairment of fixed assets
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment impairment losses are recognised in the income statements as described below;
An asset is impaired when there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less cost to sell and its value in use.
For assets carried at cost less impairment the impairment loss is the difference between the assets carrying amount and best estimate of the amount that would be received for the asset if it were sold at the reporting date.
Where indicators exist of a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the reversed recoverable value does not lead to a revised carrying amount being higher than the carrying value had the asset impairment not been recognised.
Investments
Initial recognition of investment in associates or a joint ventures is recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the date of acquisition and the investor’s share of the investee’s profit or loss is recognised in the investor’s profit or loss.
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 group will not be able to collect all amounts due according to the original terms of the receivables.
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
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 group 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. Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Provisions
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group 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 group 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.
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Critical accounting judgements and key sources of estimation uncertainty
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 judgement and key source of estimation uncertainty is considered to be;
Critical accounting judgments
The following judgments, apart from those involving estimates, have had the most significant effect on amounts recognised in the financial statements.
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 Group expenses the surveys as the expenditure is incurred because the nature of the emergent work is uncertain.
Critical accounting estimates
The group 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.
Profit recognition on work performed under contract.
Profit is recognised on vessel build contracts when the stage of completion of a vessel is sufficiently advanced to provide strong evidence of the likely profitability. Profit on maintenance contracts is recognised when separate elements of the contracts have been completed.
Discounts
Discounts are agreed with some customers, the group estimates a liability for potential discounts based on the level of activity with those customers.
Deferred tax;
In group companies where the tax write down values are greater than the net book value of plant and machinery deferred tax asset are not recognised as their recovery is uncertain, in group companies where the tax write down values are lower than the net book value deferred tax liabilities are recognised.
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Revenue |
2024 |
2023 |
||
£ |
£ |
||
Vessel hire |
19,269,800 |
18,916,200 |
|
Sales of Services - Vessel building and maintenance under contract |
8,778,818 |
6,528,807 |
|
Other income including Government grants |
36,473 |
57,036 |
|
28,085,091 |
25,502,043 |
The analysis of the group's turnover for the year by market is as follows;
2024 |
2023 |
||
£ |
£ |
||
UK and Europe |
12,854,850 |
10,366,644 |
|
Rest of World |
15,199,516 |
15,106,113 |
|
28,054,366 |
25,472,757 |
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2024 |
2023 |
|
Gain on disposal of Tangible assets |
|
|
Gain from disposals of investments |
- |
|
2,538 |
356,762 |
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Foreign exchange gains |
( |
( |
Profit on disposal of property, plant and equipment |
( |
( |
Government grants |
The amount of grants recognised in the financial statements was £
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
- |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Boat repair and engineering |
|
|
Administration and support |
|
|
Vessel crews |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
441,454 |
411,786 |
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
46,479 |
26,400 |
Other fees to auditors |
||
Taxation compliance services |
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
- |
|
378,372 |
271,647 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax expense in the income statement |
|
|
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Increase from effect of joint-ventures and associates results reported net of tax |
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
( |
|
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
Tax decrease arising from group relief |
( |
- |
Tax increase arising from overseas tax suffered/expensed |
- |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
( |
Total tax charge |
|
|
The amount of double taxation relief at the balance sheet date is £378,372 (2023: £443,336).
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Timing differences on plant and machinery |
- |
|
- |
|
2023 |
Asset |
Liability |
Timing differences on plant and machinery |
- |
|
- |
|
There are £517,918 of unused tax losses (2023 - £643,566) for which no deferred tax asset is recognised in the balance sheet.
A deferred tax asset has not been recognised in respect of those subsidiaries where the tax written down value of assets is in excess of the net book value of those assets. The unrecognised deferred tax asset, in respect of these timing differences at the balance sheet date is £1,759,380 (2023: £2,175,801).
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
|
Cost or valuation |
|||||
At 1 April 2023 |
|
|
|
|
|
Additions |
- |
- |
|
|
|
Disposals |
- |
- |
( |
- |
( |
At 31 March 2024 |
|
|
|
|
|
Depreciation |
|||||
At 1 April 2023 |
|
|
|
|
|
Charge for the year |
|
- |
|
|
|
Eliminated on disposal |
- |
- |
( |
- |
( |
At 31 March 2024 |
|
|
|
|
|
Carrying amount |
|||||
At 31 March 2024 |
|
- |
|
|
|
At 31 March 2023 |
|
- |
|
|
|
Restriction on the title and pledged as security
All fixed assets have been pledged as security for bank loans and overdrafts provided to the company and the group.
Included within the net book value of land and buildings above is £1,885,167 (2023 - £1,939,285) in respect of freehold land and buildings.
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Company
Land and buildings |
Total |
|
Cost or valuation |
||
At 1 April 2023 |
|
|
Transfers |
( |
( |
At 31 March 2024 |
- |
- |
Depreciation |
||
At 1 April 2023 |
|
|
Transfers |
( |
( |
At 31 March 2024 |
- |
- |
Carrying amount |
||
At 31 March 2024 |
- |
- |
At 31 March 2023 |
|
|
Included within the net book value of land and buildings above is £Nil (2023 - £209,000) in respect of freehold land and buildings.
Investments |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 April 2023 |
|
Provision |
|
Carrying amount |
|
At 31 March 2024 |
|
At 31 March 2023 |
|
Joint ventures |
Cost |
Provision |
Carrying amount |
At 31 March 2024 |
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Aggregate financial information of joint ventures
2024 |
2023 |
|
Profit or loss |
- |
(116,442) |
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 |
||||
|
Newry Beach Yard
England and Wales |
|
|
|
|
Newry Beach Yard
England and Wales |
|
|
|
|
Newry Beach Yard
England and Wales |
|
|
|
The company's interest in the joint venture was wholly disposed of on 28 March 2023.
Subsidiary undertakings |
Holyhead Marine Services Limited The principal activity of Holyhead Marine Services Limited is |
Holyhead Towing Company Limited The principal activity of Holyhead Towing Company Limited is |
Ynys Mon Windfarm Vessels Limited The principal activity of Ynys Mon Windfarm Vessels Limited is |
Turbine Transfers Limited and Church Bay Limited have claimed exemption from audit under S394A Companies Act 2006.
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group 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 |
||||
|
Newry Beach Yard
|
|
|
|
England and Wales |
||||
|
Newry Beach Yard, Newry Beach, Holyhead, Anglesey, Wales, LL65 1YB
|
|
|
|
England and Wales |
||||
|
Anastasis Sioukri & Olympia
|
|
|
|
Cyprus |
||||
|
PO Box 112, St Martins House, Le Bordage, St Peter Port, Guernsey, GY1 4EA |
|
|
|
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 Boatyard 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 |
Church Bay Limited The principal activity of Church Bay Limited is |
Holyhead Towing Company (Cyprus) Ltd The principal activity of Holyhead Towing Company (Cyprus) Ltd is |
Holyhead Towing (Guernsey) PCC Limited The principal activity of Holyhead Towing (Guernsey) PCC Limited is |
Debtors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
|
- |
|
Amounts owed by related parties |
- |
- |
|
|
|
Other debtors |
|
|
|
- |
|
Prepayments |
|
|
|
|
|
Gross amount due from customers for contract work |
|
|
- |
- |
|
Corporation tax asset |
|
|
- |
- |
|
|
|
|
|
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
- |
|
|
|
- |
|
Bank overdrafts |
- |
( |
- |
( |
Cash and cash equivalents in statement of cash flows |
2,461,116 |
1,848,170 |
25,083 |
(332,485) |
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
|
|
Trade creditors |
|
|
|
|
|
Amounts due to related parties |
- |
- |
|
|
|
Social security and other taxes |
|
|
|
|
|
Other payables |
|
|
- |
- |
|
Accruals |
|
|
|
|
|
Corporation tax liability |
381,736 |
446,700 |
- |
- |
|
Deferred income |
|
|
- |
- |
|
Payments received on account |
|
|
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
- |
|
- |
- |
|
Deferred income |
|
|
- |
- |
|
253,207 |
3,728,378 |
- |
- |
Deferred tax and other provisions |
Group
Warranties |
Deferred tax |
Other provisions |
Total |
|
At 1 April 2023 |
|
|
- |
|
Additional provisions |
|
( |
|
|
At 31 March 2024 |
|
|
|
|
|
Warrantee provision is an estimate of the costs which may be incurred on products dispatched but still within their warrantee period.
Other provisions - a customer has paid a cancellation charge for two vessels, 50% will become re-payable if the contract commences within twelve months and those vessels are used on the contract.
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
253,462 |
|
253,462 |
Reserves |
Group
Profit and loss account
Represents the cumulative profits or losses net of dividends paid and other adjustments.
Capital redemption reserve
Was created from the company repurchasing its own shares.
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Loans and borrowings |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
- |
|
- |
- |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
Bank overdrafts |
- |
|
- |
|
|
|
- |
|
Group
Bank borrowings
All fixed assets of the company and the group are secured against bank loans and borrowings. |
Holyhead Boatyard Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Commitments |
Group
Other financial commitments
The group has committed to contracts for services at the balance sheet date of £nil (2023; £263,000).
Financial instruments |
The carrying amount of group and company assets and liabilities classed as financial instruments are measured at undiscounted amounts receivable and payable.
Parent and ultimate parent undertaking |
Related party transactions |
Group
The Company has taken advantage of exemptions in FRS102 not to disclose related party transactions between wholly owned Group entities.
Summary of transactions with other related parties
Company
Summary of transactions with other related parties