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Registered number: SC380577














WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED





ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

COMPANY INFORMATION


Directors
DM McGilvray 
MJ McGilvray 
IM McGilvray 
WF Caplan (resigned 27 September 2023)
D Bennett (resigned 27 September 2023)
K Cockwill (resigned 27 September 2023)




Company secretary
MJ McGilvray



Registered number
SC380577



Registered office
18-20 Harbour Road

Inverness

IV1 1UA




Independent auditor
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
10
Company balance sheet
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14 - 15
Consolidated analysis of net debt
16
Notes to the financial statements
17 - 36


 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 30 November 2023.

Business review
 
The parent company acts as a holding company which owns 100% of the share capital Weldex (International) Offshore Limited. The principal activity of the group during the year was the hire and supply of cranes, lifting equipment and labour.  
The trading company has traded profitably and the Directors are pleased with the results.
Weldex (International) Offshore Limited’s profit before taxation amounted to £2,345k (2022 - profit of £822k).   The consolidated group profit before taxation for the year amounted to £11,885k (2022 - loss of £4,548k).  
The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations for a period of at least 12 months from the date of approval of these financial statements. In arriving at their opinion, the directors have considered the financial forecasts and expected cashflows for the group over the relevant period under consideration. The group also retains the support of it's principal finance providers. 
The group contains the largest crawler crane hire company in the UK with a crane fleet including cranes ranging from 40t to 1,350t capacity. By continuing to reinvest in its fleet the group ensures that it has a very modern fleet of cranes allowing it to offer clients the most up to date equipment.
The directors believe the group is well placed to provide services to the renewable, oil and gas and construction sectors.

Principal risks and uncertainties
 
Competition - the group continually invests in new equipment to ensure it can offer clients a wide range of the most up to date equipment, thereby ensuring it stays ahead of its competitors.
Liquidity risk - the group's principal financial instruments are bank balances and hire purchase funding. These are used to raise funds for the group's capital expenditure requirements and to finance the group's ongoing operations.
Credit risk - trade debtors are monitored daily to ensure limits are adhered to. Clear policies are in place for new clients.

Financial key performance indicators
 
A range of financial and non-financial key performance Indicators are reviewed by the board including those relating to turnover, gross margin and employee numbers.
 

2023
2022
Measure




Financial



Turnover
26.6
21.8
£millons
Gross profit margin
55
56
Gross profit/ turnover (%)




Non-financial



Employee numbers
99
106
Number of employees


Page 1

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023


This report was approved by the board on 30 August 2024 and signed on its behalf.





MJ McGilvray
Director

Page 2

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023

The directors present their report and the financial statements for the year ended 30 November 2023.

Results and dividends

The profit for the year, before taxation, amounted to £11,855k (2022 - £4,548k).

The directors do not recommend the payment of a dividend for the year ended 30 November 2023 (2022 - £nil).

Directors

The directors who served during the year were:

DM McGilvray 
MJ McGilvray 
IM McGilvray 
WF Caplan (resigned 27 September 2023)
D Bennett (resigned 27 September 2023)
K Cockwill (resigned 27 September 2023)

Future developments

The directors continue to look for opportunities to grow the business where possible.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the group's auditor is unaware; and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditor

The auditor, Anderson Anderson & Brown Audit LLPis deemed to be reappointed in accordance with section 386 of the Companies Act 1985 by virtue of an elective resolution passed by the members on 17 December 2019.

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





MJ McGilvray
Director

Date: 30 August 2024

Page 3

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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 for the group's financial statements and then 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 group will continue in business.

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

Page 4

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Weldex (International) Offshore Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 of the parent company's affairs as at 30 November 2023 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's 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 United Kingdom, including the Financial Reporting Council'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 group's or the parent 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.


Page 5

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED (CONTINUED)

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 reportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the 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 the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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:


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 Directors' responsibilities statement set out on page 4, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED (CONTINUED)

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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the group and parent company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Employment, Health and Safety and Taxation legislation plus the Companies Act 2006.
We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:
 
Management override of controls to manipulate the group and parent company's key performance indicators to meet targets;
Timing and completeness of revenue recognition;
Management judgement applied in calculating estimates and provisions; and
Compliance with relevant laws and regulations which directly impact the financial statements and those that the group and parent company needs to comply with for the purpose of trading.

Our audit procedures in response to these risks included:

Testing of journal entries and other adjustments for appropriateness;
Evaluating the business rationale of significant transactions outside the normal course of business;
Reviewing judgements made by management in their calculation of accounting estimates and provision for potential management bias;
Enquiries of management about litigation and claims and inspection of relevant correspondence;
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non compliance with laws and regulations; and
Performing a disclosure checklist on the financial statements to ensure Companies Act 2006 requirements are satisfied.


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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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


Page 7

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED (CONTINUED)

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 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





James Pirrie (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

30 August 2024
Page 8

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023
2022
Note
£000
£000

  

Turnover
 4 
26,633
21,771

Cost of sales
  
(10,888)
(9,502)

Gross profit
  
15,745
12,269

Administrative expenses
  
(12,099)
(11,850)

Exceptional items
 12 
12,514
-

Operating profit
 5 
16,160
419

Interest receivable and similar income
 9 
8
-

Interest payable and similar expenses
 10 
(4,283)
(4,967)

Profit/(loss) before taxation
  
11,885
(4,548)

Tax on profit/(loss)
 11 
(134)
(216)

Profit/(loss) for the financial year
  
11,751
(4,764)

Profit/(loss) for the year attributable to:
  

Owners of the parent company
  
11,751
(4,764)

  
11,751
(4,764)

There was no other comprehensive income for 2023 (2022 - £nil).

The notes on pages 17 to 36 form part of these financial statements.

Page 9

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
REGISTERED NUMBER:SC380577

CONSOLIDATED BALANCE SHEET
AS AT 30 NOVEMBER 2023

2023
2022
Note
£000
£000

Fixed assets
  

Intangible assets
 13 
9,847
11,340

Tangible assets
 14 
73,464
86,967

  
83,311
98,307

Current assets
  

Stocks
 16 
242
253

Debtors: amounts falling due within one year
 17 
4,157
4,906

Cash at bank and in hand
 18 
3,980
786

  
8,379
5,945

Creditors: amounts falling due within one year
 19 
(2,823)
(14,343)

Net current assets/(liabilities)
  
 
 
5,556
 
 
(8,398)

Total assets less current liabilities
  
88,867
89,909

Creditors: amounts falling due after more than one year
 20 
(37,601)
(117,840)

Provisions for liabilities
  

Deferred taxation
 24 
(14,652)
(14,518)

  
 
 
(14,652)
 
 
(14,518)

Net assets/(liabilities)
  
36,614
(42,449)


Capital and reserves
  

Called up share capital 
 25 
192
10

Share premium account
 26 
68,081
951

Profit and loss account
 26 
(31,659)
(43,410)

  
36,614
(42,449)


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




MJ McGilvray
Director

Date: 30 August 2024

The notes on pages 17 to 36 form part of these financial statements.

Page 10

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
REGISTERED NUMBER:SC380577

COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023

2023
2022
Note
£000
£000

Fixed assets
  

Investments
 15 
57,746
57,746

  
57,746
57,746

Current assets
  

Debtors: amounts falling due within one year
 17 
764
1,074

Cash at bank and in hand
 18 
4
14

  
768
1,088

Creditors: amounts falling due within one year
 19 
(1,064)
(1,057)

Net current (liabilities)/assets
  
 
 
(296)
 
 
31

Total assets less current liabilities
  
57,450
57,777

  

Creditors: amounts falling due after more than one year
 20 
-
(97,991)

  

Net assets/(liabilities)
  
57,450
(40,214)


Capital and reserves
  

Called up share capital 
 25 
192
10

Share premium account
 26 
68,081
951

Profit and loss account brought forward
  
(41,175)
(37,654)

Profit/(loss) for the year

  

30,352
(3,521)

Profit and loss account carried forward
 26 
(10,823)
(41,175)

  
57,450
(40,214)


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




MJ McGilvray
Director

Date: 30 August 2024

The notes on pages 17 to 36 form part of these financial statements.

Page 11

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 December 2021
10
951
(38,646)
(37,685)



Loss for the year
-
-
(4,764)
(4,764)



At 1 December 2022
10
951
(43,410)
(42,449)



Profit for the year
-
-
11,751
11,751

Shares issued during the year in exchange for Loan note debt
-
49,115
-
49,115

Reclassification from debt
182
18,015
-
18,197


At 30 November 2023
192
68,081
(31,659)
36,614


The notes on pages 17 to 36 form part of these financial statements.

Page 12

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 December 2021
10
951
(37,654)
(36,693)



Loss for the year
-
-
(3,521)
(3,521)



At 1 December 2022
10
951
(41,175)
(40,214)



Profit for the year
-
-
30,352
30,352

Shares issued during the year in exchange for Loan note debt
-
49,115
-
49,115

Reclassification from debt
182
18,015
-
18,197


At 30 November 2023
192
68,081
(10,823)
57,450


The notes on pages 17 to 36 form part of these financial statements.

Page 13

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023
2022
£000
£000

Cash flows from operating activities

Profit/(loss) for the financial year
11,751
(4,764)

Adjustments for:

Amortisation of intangible assets
1,492
1,492

Depreciation of tangible assets
7,048
7,229

Gain on disposal of tangible assets
(121)
(174)

Interest paid
4,283
4,967

Interest received
(8)
-

Taxation charge
134
216

Decrease in stocks
11
4

Decrease/(increase) in debtors
749
(1,075)

(Decrease) in creditors
(13,693)
(2,181)

Net cash generated from operating activities

11,646
5,714


Cash flows from investing activities

Purchase of tangible fixed assets
(117)
(1,264)

Sale of tangible fixed assets
6,692
2,722

Interest received
8
-

Net cash from investing activities

6,583
1,458
Page 14

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023


2023
2022

£000
£000



Cash flows from financing activities

New secured loans
37,601
-

Repayment of other loans
(18,957)
-

Repayment of finance leases
(28,786)
(8,302)

Interest paid
(1,507)
(1,601)

Net cash used in financing activities
(11,649)
(9,903)

Net increase/(decrease) in cash and cash equivalents
6,580
(2,731)

Cash and cash equivalents at beginning of year
(2,600)
131

Cash and cash equivalents at the end of year
3,980
(2,600)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,980
786

Bank overdrafts
-
(3,386)

3,980
(2,600)


The notes on pages 17 to 36 form part of these financial statements.

Page 15

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 NOVEMBER 2023





At 1 December 2022
Cash flows
Other non-cash changes
At 30 November 2023
£000

£000

£000

£000

Cash at bank and in hand

786

3,194

-

3,980

Bank overdrafts

(3,386)

3,386

-

-

Debt due after 1 year

(56,100)

18,957

37,143

-

Finance leases

(28,786)

28,786

-

-

Bank loan due after 1 year

-

(37,601)

-

(37,601)


(87,486)
16,722
37,143
(33,621)

The notes on pages 17 to 36 form part of these financial statements.

Page 16

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

1.


General information

Weldex (International) Offshore Holdings Limited (the `parent company`) is a private company incorporated, domiciled and registered in Scotland in the UK. The registered number is SC380577 and the registered address is 18-20 Harbour Road, Inverness, Scotland, IV1 1UA.
The principle activity of the group is the hire and supply of cranes, lifting equipment and labour. The parent company's principle activity is solely to operate as a holding company. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

  
2.2

Basis of Consolidation

The consolidated financial statements present the results of the company and its own subsidiaries (the `group`) as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. 
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. 

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the parent company and group have adequate working capital to execute its operations for a period of at least 12 months from the date of approval of these financial statements. In arriving at their opinion, the directors have considered the financial forecasts and expected cashflows of the parent company and group over the relevant period under consideration.
The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the parent company and group have adequate resources to continue in operational existence for the foreseeable future. As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements. 

Page 17

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

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

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

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Leased assets: the group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 18

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.12

Pensions

Defined contribution pension plan

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the group in independently administered funds.

Page 19

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.14

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the group but are presented separately due to their size or incidence.

  
2.15

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

 
2.16

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 20

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)


2.16
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
per annum on cost
Plant and machinery - Cranes
-
7%
per annum on cost
Plant and machinery - Other
-
25%
per annum on reducing balance
Motor vehicles
-
25%
per annum on reducing balance basis

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.18

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.19

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.20

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the group's cash management.

 
2.21

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 21

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.22

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.23

Financial instruments

The group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's Balance sheet when the group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

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

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. 

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Page 22

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)


2.23
Financial instruments (continued)


Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Page 23

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported during the year for revenue and costs. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgements and estimates have had the most significant impact on amounts recognised in the financial statements:
Fixed asset impairment
The carrying amounts of the group's assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the `cash-generating unit` (`CGU`)).
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Fixed asset depreciation
Depreciation is calculated using the straight line method for freehold property, and reducing balance for motor vehicles and plant & machinery, with the exception of Cranes which are depreciated using the straight line method.
Bad debt provision
Management estimates the bad debt provision by paying due consideration to the ageing of debt, the credit rating of customers and historical experience of customers under review.


4.


Turnover

All turnover in the current and prior period is attributable to the group's principal activity. 

Analysis of turnover by country of destination:

2023
2022
£000
£000

United Kingdom
26,633
21,771

26,633
21,771


Page 24

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£000
£000

Depreciation of tangible fixed assets
7,048
7,229

Foreign exchange (gain) / loss
60
(26)

Profit on disposal of tangible fixed assets
121
174

Amortisation of goodwill
1,492
1,492

Rentals payable under operating leases
30
30


6.


Auditor's remuneration

2023
2022
£000
£000

Fees payable to the parent company's auditor for the audit of the consolidated and parent company's financial statements
6
6

Fees payable to the group's auditor and its associates in respect of:

Audit of financial statements of subsidiaries
31
27

Other services relating to taxation
8
9


7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2023
2022
£000
£000


Wages and salaries
6,282
6,370

Social security costs
671
716

Cost of defined contribution scheme
314
301

7,267
7,387


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Operational
77
84



Administrative
22
22

99
106

Page 25

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

8.


Directors' remuneration

2023
2022
£000
£000

Directors' emoluments
639
546

Group contributions to defined contribution pension schemes
19
19

658
565


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £203k (2022 - £172k).

The value of the group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £9k (2022 - £9k).


9.


Interest receivable

2023
2022
£000
£000


Other interest receivable
8
-

8
-


10.


Interest payable and similar expenses

2023
2022
£000
£000


Bank interest payable
618
104

Other loan interest payable
2,776
3,366

Finance leases and hire purchase contracts
889
1,497

4,283
4,967

Page 26

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

11.


Taxation


2023
2022
£000
£000



Total current tax

-
-

Deferred tax


Origination and reversal of timing differences
134
216

Total deferred tax

134
216


Tax on profit/(loss)
134
216

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of23.01% (2022 -19%). The differences are explained below:

2023
2022
£000
£000


Profit/(loss) on ordinary activities before tax
11,885
(4,548)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.01% (2022 - 19%)
2,735
(864)

Effects of:


Expenses not deductible for tax purposes
663
591

Fixed asset differences
89
(6)

Chargeable gains/(losses)
-
9

Remeasurement of deferred tax for changes in tax rates
228
(85)

Non-taxable release of preferrence share dividend forgiven
(3,333)
-

Deferred tax not recognised
(2,728)
571

Disallowable interest
2,480
-

Total tax charge for the year
134
216

Page 27

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

12.


Exceptional items

2023
2022
£000
£000


Restructuring costs
1,970
-

Redeemable Preference share dividend forgiven
(14,484)
-

(12,514)
-


13.


Intangible assets

Group





Goodwill

£000



Cost


At 1 December 2022
29,831



At 30 November 2023

29,831



Amortisation


At 1 December 2022
18,492


Charge for the year
1,492



At 30 November 2023

19,984



Net book value



At 30 November 2023
9,847



At 30 November 2022
11,339



Page 28

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

14.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Total

£000
£000
£000
£000



Cost or valuation


At 1 December 2022
2,781
134,859
482
138,122


Additions
-
-
117
117


Disposals
-
(14,229)
(46)
(14,275)



At 30 November 2023

2,781
120,630
553
123,964



Depreciation


At 1 December 2022
874
50,012
269
51,155


Charge for the year
56
6,910
82
7,048


Disposals
-
(7,667)
(36)
(7,703)



At 30 November 2023

930
49,255
315
50,500



Net book value



At 30 November 2023
1,851
71,375
238
73,464



At 30 November 2022
1,907
84,847
213
86,967

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£000
£000



Plant and machinery
-
52,855

-
52,855

Page 29

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

15.


Fixed asset investments

Company





Investments in subsidiary companies

£000



Cost or valuation


At 1 December 2022
57,746



At 30 November 2023
57,746





Subsidiary undertaking


The following was a subsidiary undertaking of the company:

Name

Registered office

Class of shares

Holding

Weldex (International) Offshore Limited
18-20 Harbour Road  Inverness  IV1 1UA
Ordinary
100%


16.


Stocks

Group
Group
2023
2022
£000
£000

Raw materials and consumables
242
253

242
253


Page 30

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

17.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000


Trade debtors
4,039
4,694
-
-

Amounts owed by group undertakings
-
-
748
1,069

Other debtors
13
-
13
-

Prepayments and accrued income
105
212
3
5

4,157
4,906
764
1,074


Amounts owed by group undertakings are interest free and repayable on demand.


18.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Cash at bank and in hand
3,980
786
4
14

Less: bank overdrafts
-
(3,386)
-
-

3,980
(2,600)
4
14



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Bank overdrafts
-
3,386
-
-

Trade creditors
1,248
1,336
-
-

Amounts owed to group undertakings
-
-
1,055
1,055

Other taxation and social security
415
206
-
2

Obligations under finance lease and hire purchase contracts
-
8,937
-
-

Accruals and deferred income
1,160
478
9
-

2,823
14,343
1,064
1,057


Amounts owed to group undertakings are interest free and repayable on demand.

Page 31

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Bank loans
37,601
-
-
-

Other loans
-
37,903
-
37,903

Obligations under finance leases and hire purchase contracts
-
19,849
-
-

Accruals and deferred income
-
41,891
-
41,891

Share capital treated as debt
-
182
-
182

Share premium treated as debt
-
18,015
-
18,015

37,601
117,840
-
97,991


Disclosure of the terms and conditions attached to the non-equity shares is made in note 25. During the year the non-equity shares were reclassified as equity. 



21.


Loans


Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Bank loans
37,601
-
-
-

Unsecured fixed rate shareholder loan notes
-
37,903
-
37,903

37,601
37,903
-
37,903


During the year, as part of a restructuring exercise, the parent company and group repaid the shareholder loan notes. The shareholder loan notes bore interest at 6%.
The bank loans represents an Asset Based Loan (`ABL`) received during the year. The ABL is secured over the fixed assets to which it relates and attracts an interest rate of 1.95% above the Bank of England base rate. The ABL operates on a rolling basis with no fixed repayment terms but a borrowing ceiling based on the market value of assets held by the group. The facility is due for renewal in September 2026.

Page 32

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£000
£000

Within one year
-
8,937

Between 1-5 years
-
18,808

Over 5 years
-
1,041

-
28,786

Obligations under finance leases and hire purchase contracts were secured against the assets to which they related and bore interest at a range of 3% - 5%.
During the year, as part of a restructuring exercise, the group settled its obligations under finance leases and hire purchase agreements. 


23.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Financial assets

Financial assets measured at fair value through profit or loss
3,980
786
4
14

Financial assets that are debt instruments measured at amortised cost
4,039
4,694
749
1,069


Financial liabilities

Financial liabilities measured at amortised cost
(40,017)
(114,286)
(1,064)
(79,976)


Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.


Financial assets that are debt instruments measured at amortised cost is comprised of trade debtors.


Financial liabilities measured at amortised cost comprise of trade creditors, accruals and other creditors.

Page 33

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

24.


Deferred taxation


Group



2023


£000






At beginning of year
(14,518)


Charged to profit or loss
(134)



At end of year
(14,652)






The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£000
£000

Accelerated capital allowances
(15,296)
(16,412)

Tax losses carried forward
644
1,894

(14,652)
(14,518)

Page 34

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

25.


Share capital

2023
2022
£
£
Shares classified as equity

Allotted, called up and fully paid



651,630 (2022 - 611,631) A Ordinary shares of £0.01 each
6,516
6,116
288,370 (2022 - 288,370) B Ordinary shares of £0.01 each
2,884
2,884
60,000 (2022 - 60,000) C Ordinary shares of £0.01 each
600
600
18,196,846 (2022 - Nil) Redeemable Preference shares of £0.01 each
181,968
-

191,968

9,600

2022
£
Shares classified as debt

Allotted, called up and fully paid



Nil (2022 - 18,196,846) 6% Cumulative Redeemable Preference shares of £0.01 each
-
181,968


The A, B and C Ordinary shares rank pari passu except in an Event of Default as set out in the Company's Articles Of Association. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. 
The Redeemable Preference shares carry no entitlement to dividends or voting rights. The holders of the Redeemable Preference shares are entitled to distributions from the parent company (including on winding up). The Redeemable Preference shares are redeemable at the discretion of the company. 

During the year the parent company, in part, settled its shareholder loan note debt in exchange for 39,999 newly issued A Ordinary shares of £0.01 each.
During the year the terms of the 6% Cumulative Redeemable Preference shares were altered to remove the entitlement to a fixed dividend. The shares remain redeemable and have been re-named as Redeemable Preference shares. Upon this convention event the shares ceased to be debt instruments and were reclassified, along with its associated share premium to equity.  


26.


Reserves

Share premium account

This reserve records the amount above nominal value received in respect of the parent company's share capital.

Profit and loss account

This reserve records the accumulated distributable profits and losses made by the group and parent company net of distributions to shareholders. 

Page 35

 
WELDEX (INTERNATIONAL) OFFSHORE HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

27.


Pension commitments

The group operates a defined contribution pension plan. The total expense relating to these plans in the current year was £314k (2022 - £301k). Outstanding contributions accrued at the year end amounted to £nil (2022 - £nil).


28.


Commitments under operating leases

At 30 November 2023, the group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£000
£000

Not later than 1 year
30
30

30
30

29.


Related party transactions

The company has taken advantage of the exemption, in FRS 102 Section 33, from disclosing related party transactions with other companies that are wholly owned. 
During the period the group paid management charges of £80k (2022 - £76k) to entities under common ownership. At the year end amounts outstanding were £nil (2022 - £nil).
During the period the group paid expenses of £30k (2022 - £30k) to entities under common ownership. At the year end amounts outstanding were £nil (2022 - £nil).
During the period the group recharged expenses of £1k (2022 - £2k) to an entity under common ownership. At the year end £nil (2022 - £nil) was included in trade debtors.


30.


Guarantees and security

The bank retains a mixture of floating and fixed charges over the assets of the group.

31.


Post balance sheet events

There have been no significant events affecting the parent company or group since the year end.


32.


Controlling party

The parent company and group was under the control of the McGilvray family.


Page 36