Caseware UK (AP4) 2023.0.135 2023.0.135 2023-11-302023-11-30truetruetruetrue2022-12-0199true314000301000falseThe hire and supply of cranes, lifting equipment and labour106truefalsefalse SC049538 2022-12-01 2023-11-30 SC049538 2021-12-01 2022-11-30 SC049538 2023-11-30 SC049538 2022-11-30 SC049538 2021-12-01 SC049538 1 2022-12-01 2023-11-30 SC049538 c:Exceptional 2022-12-01 2023-11-30 SC049538 c:Exceptional 2021-12-01 2022-11-30 SC049538 d:Director1 2022-12-01 2023-11-30 SC049538 d:Director3 2022-12-01 2023-11-30 SC049538 d:Director4 2022-12-01 2023-11-30 SC049538 d:Director5 2022-12-01 2023-11-30 SC049538 d:RegisteredOffice 2022-12-01 2023-11-30 SC049538 c:Buildings 2022-12-01 2023-11-30 SC049538 c:Buildings 2023-11-30 SC049538 c:Buildings 2022-11-30 SC049538 c:Buildings c:OwnedOrFreeholdAssets 2022-12-01 2023-11-30 SC049538 c:PlantMachinery 2022-12-01 2023-11-30 SC049538 c:PlantMachinery 2023-11-30 SC049538 c:PlantMachinery 2022-11-30 SC049538 c:PlantMachinery c:OwnedOrFreeholdAssets 2022-12-01 2023-11-30 SC049538 c:MotorVehicles 2022-12-01 2023-11-30 SC049538 c:MotorVehicles 2023-11-30 SC049538 c:MotorVehicles 2022-11-30 SC049538 c:MotorVehicles c:OwnedOrFreeholdAssets 2022-12-01 2023-11-30 SC049538 c:OtherPropertyPlantEquipment 2022-12-01 2023-11-30 SC049538 c:OwnedOrFreeholdAssets 2022-12-01 2023-11-30 SC049538 c:CurrentFinancialInstruments 2023-11-30 SC049538 c:CurrentFinancialInstruments 2022-11-30 SC049538 c:Non-currentFinancialInstruments 2023-11-30 SC049538 c:Non-currentFinancialInstruments 2022-11-30 SC049538 c:CurrentFinancialInstruments c:WithinOneYear 2023-11-30 SC049538 c:CurrentFinancialInstruments c:WithinOneYear 2022-11-30 SC049538 c:Non-currentFinancialInstruments c:AfterOneYear 2023-11-30 SC049538 c:Non-currentFinancialInstruments c:AfterOneYear 2022-11-30 SC049538 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2023-11-30 SC049538 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2022-11-30 SC049538 e:UnitedKingdom 2022-12-01 2023-11-30 SC049538 e:UnitedKingdom 2021-12-01 2022-11-30 SC049538 c:ShareCapital 2023-11-30 SC049538 c:ShareCapital 2022-11-30 SC049538 c:ShareCapital 2021-12-01 SC049538 c:SharePremium 2022-12-01 2023-11-30 SC049538 c:SharePremium 2023-11-30 SC049538 c:SharePremium 2022-11-30 SC049538 c:SharePremium 2021-12-01 SC049538 c:CapitalRedemptionReserve 2022-12-01 2023-11-30 SC049538 c:OtherMiscellaneousReserve 2023-11-30 SC049538 c:OtherMiscellaneousReserve 2022-11-30 SC049538 c:OtherMiscellaneousReserve 2021-12-01 SC049538 c:RetainedEarningsAccumulatedLosses 2022-12-01 2023-11-30 SC049538 c:RetainedEarningsAccumulatedLosses 2023-11-30 SC049538 c:RetainedEarningsAccumulatedLosses 2021-12-01 2022-11-30 SC049538 c:RetainedEarningsAccumulatedLosses 2022-11-30 SC049538 c:RetainedEarningsAccumulatedLosses 2021-12-01 SC049538 d:OrdinaryShareClass1 2022-12-01 2023-11-30 SC049538 d:OrdinaryShareClass1 2021-12-01 2022-11-30 SC049538 d:OrdinaryShareClass1 2023-11-30 SC049538 d:OrdinaryShareClass1 2022-11-30 SC049538 d:FRS102 2022-12-01 2023-11-30 SC049538 d:Audited 2022-12-01 2023-11-30 SC049538 d:FullAccounts 2022-12-01 2023-11-30 SC049538 d:PrivateLimitedCompanyLtd 2022-12-01 2023-11-30 SC049538 c:WithinOneYear 2023-11-30 SC049538 c:WithinOneYear 2022-11-30 SC049538 c:HirePurchaseContracts c:WithinOneYear 2023-11-30 SC049538 c:HirePurchaseContracts c:WithinOneYear 2022-11-30 SC049538 c:HirePurchaseContracts c:BetweenOneFiveYears 2023-11-30 SC049538 c:HirePurchaseContracts c:BetweenOneFiveYears 2022-11-30 SC049538 c:HirePurchaseContracts c:MoreThanFiveYears 2023-11-30 SC049538 c:HirePurchaseContracts c:MoreThanFiveYears 2022-11-30 SC049538 2 2022-12-01 2023-11-30 SC049538 4 2022-12-01 2023-11-30 SC049538 c:AcceleratedTaxDepreciationDeferredTax 2023-11-30 SC049538 c:AcceleratedTaxDepreciationDeferredTax 2022-11-30 SC049538 c:OtherDeferredTax 2023-11-30 SC049538 c:OtherDeferredTax 2022-11-30 SC049538 c:PlantMachinery c:LeasedAssetsHeldAsLessee 2023-11-30 SC049538 c:PlantMachinery c:LeasedAssetsHeldAsLessee 2022-11-30 SC049538 f:PoundSterling 2022-12-01 2023-11-30 xbrli:shares iso4217:GBP xbrli:pure
Registered number: SC049538













WELDEX (INTERNATIONAL) OFFSHORE LIMITED







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

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 

COMPANY INFORMATION


Directors
DM McGilvray 
CA McGilvray 
MJ McGilvray 
IM McGilvray 




Registered number
SC049538



Registered office
18-20 Harbour Road

Inverness

IV1 1UA




Independent auditors
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 

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 principal activity of the company during the year was the hire and supply of cranes, lifting equipment and labour.
The company has traded profitably and the Directors are pleased with the results.
The profit for the year, before taxation, amounted to £2,345k (2022 - £822k). As at 30 November 2023 the company had net assets of £25,124k (2022 - £41,870k).
The company is the largest crawler crane hire company in the UK. The crane fleet includes cranes ranging from 40t to 1,350t capacity.
By continuing to reinvest in its fleet the company 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 company is well placed to provide services to the renewable, oil and gas and construction sectors.

Principal risks and uncertainties
 
Competition - the company 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 company's principal financial instruments are bank balances and hire purchase funding. These are used to raise funds for the company's capital expenditure requirements and to finance the company'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
£millions
Gross profit margin
55
56
Gross profit/ turnover (%)




Non-financial



Employee numbers
99
106
Number of employees


Page 1
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 

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


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





MJ McGilvray
Director
Date: 30 August 2024

Page 2
 

 
WELDEX (INTERNATIONAL) OFFSHORE 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 £2,345k (2022 - profit £822k).

Ordinary dividends were paid amounting to £18,957k (2022 - £nil). The directors do not recommend payment of a further dividend.

Directors

The directors who served during the year were:

DM McGilvray 
CA McGilvray 
MJ McGilvray 
IM McGilvray 

Future developments

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

Disclosure of information to auditors

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's auditors are unaware; 

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's auditors are aware of that information.

Post balance sheet events

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

Auditors

The auditorsAnderson Anderson & Brown Audit LLPare 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 2018.

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





MJ McGilvray
Director

Date: 30 August 2024

Page 3
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023

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

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

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

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

make judgements and accounting estimates that are reasonable and prudent;

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

Page 4
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 

Opinion


We have audited the financial statements of Weldex (international) Offshore Limited (the 'company') for the year ended 30 November 2023, which comprise the Statement of comprehensive income, the Balance sheet, the 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 company's affairs as at 30 November 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Other information


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


We have nothing to report in this regard.


Page 5
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED

 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE LIMITED (CONTINUED)

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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the 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 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.


Page 6
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED

 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE LIMITED (CONTINUED)

Auditors' 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 Auditors' 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.


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 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 company's key performance indicators to meet targets;
Timing and completeness of revenue recognition;
Management judgemental applied in calculating estimates and provisions; and
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading.

Our audit procedures to respond 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 provisions 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 Auditors' report.


Page 7
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED

 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE 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 Auditors' 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 LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023
2022
Note
£000
£000

  

Turnover
 4 
26,634
21,771

Cost of sales
  
(10,888)
(9,502)

Gross profit
  
15,746
12,269

Administrative expenses
  
(10,213)
(9,845)

Exceptional items
 13 
(1,689)
-

Operating profit
 5 
3,844
2,424

Interest receivable and similar income
  
8
-

Interest payable and expenses
 10 
(1,507)
(1,602)

Profit before tax
  
2,345
822

Tax on profit
 11 
(134)
(216)

Profit for the financial year
  
2,211
606

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

The notes on pages 12 to 26 form part of these financial statements.

Page 9
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED

REGISTERED NUMBER:SC049538

BALANCE SHEET
AS AT 30 NOVEMBER 2023

2023
2022
Note
£000
£000

Fixed assets
  

Tangible assets
 14 
71,529
84,668

  
71,529
84,668

Current assets
  

Stocks
 15 
242
253

Debtors: amounts falling due within one year
 16 
5,194
5,956

Cash at bank and in hand
 17 
3,976
772

  
9,412
6,981

Creditors: amounts falling due within one year
 18 
(3,564)
(15,411)

Net current assets/(liabilities)
  
 
 
5,848
 
 
(8,430)

Total assets less current liabilities
  
77,377
76,238

Creditors: amounts falling due after more than one year
 19 
(37,601)
(19,850)

Provisions for liabilities
  

Deferred tax
 22 
(14,652)
(14,518)

  
 
 
(14,652)
 
 
(14,518)

Net assets
  
25,124
41,870


Capital and reserves
  

Called up share capital 
 23 
25
25

Share premium account
 24 
515
515

Capital redemption reserve
 24 
815
815

Profit and loss account
 24 
23,769
40,515

  
25,124
41,870


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 12 to 26 form part of these financial statements.

Page 10
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 

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


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

£000
£000
£000
£000
£000


At 1 December 2021
25
515
815
39,909
41,264



Total comprehensive income for the year
-
-
-
606
606



At 1 December 2022
25
515
815
40,515
41,870



Total comprehensive income for the year
-
-
-
2,211
2,211

Dividends: Equity capital
-
-
-
(18,957)
(18,957)


At 30 November 2023
25
515
815
23,769
25,124


The notes on pages 12 to 26 form part of these financial statements.

Page 11
 

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

1.


General information

Weldex (International) Offshore Limited (the `company`) is a private company incorporated, domiciled and registered in Scotland. The registered number is SC049538 and the registered address is 18-20 Harbour Road, Inverness, Scotland, IV1 1UA. 
The principle activity of the business is the hire and supply of cranes, lifting equipment and labour.

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 management to exercise judgement in applying the company's accounting policies (see note 3).

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Weldex (International) Offshore Holdings Limited as at 30 November 2023 and these financial statements may be obtained from 18-20 Harbour Road, Inverness, Scotland, IV1 1UA.

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months, following the date of approval of these financial statements. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has 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 12
 

 
WELDEX (INTERNATIONAL) OFFSHORE 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 company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

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

 
2.6

Operating leases: the company 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 company 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.

 
2.8

Interest income

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

Page 13
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 

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

2.Accounting policies (continued)

 
2.9

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.

 
2.10

Borrowing costs

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

 
2.11

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in 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 company in independently administered funds.

 
2.12

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 operates and generates income.

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

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

 
2.13

Exceptional items

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

Page 14
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 

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

2.Accounting policies (continued)

 
2.14

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 company 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.

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 basis
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.

 
2.15

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.

 
2.16

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.

 
2.17

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.

Page 15
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 

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

2.Accounting policies (continued)

 
2.18

Creditors

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

 
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.20

Financial instruments

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

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

Basic financial assets

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

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

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.
 
Page 16
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 

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

2.Accounting policies (continued)


2.20
Financial instruments (continued)


Financial liabilities

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

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

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

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

Derecognition of financial instruments

Derecognition of financial assets

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

Derecognition of financial liabilities

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

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 17
 

 
WELDEX (INTERNATIONAL) OFFSHORE 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 company'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.
It is company policy to review annually; the assets residual value, useful life and depreciation method. Appropriate adjustments will be made if there is a significant change since the last reporting date.
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 year is attributable to the company's principal activity.

Analysis of turnover by country of destination:

2023
2022
£000
£000

United Kingdom
26,634
21,771

26,634
21,771


Page 18
 

 
WELDEX (INTERNATIONAL) OFFSHORE 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
6,683
6,865

Profit on disposal of tangible fixed assets
121
174

Hire of land and buildings - rentals payable under operating leases
30
30

Foreign exchange losses/(gains)
60
(26)


6.


Auditors' remuneration

2023
2022
£000
£000

Fees payable to the company's auditors for the audit of the company's financial statements
31
27
The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.


7.


Employees

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


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 19
 

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

8.


Directors' remuneration

2023
2022
£000
£000

Directors' emoluments
639
546

Company 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 company'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

Finance leases and hire purchase contracts
889
1,498

1,507
1,602


11.


Taxation


2023
2022
£000
£000

Deferred tax


Origination and reversal of timing differences
134
216

Total deferred tax

134
216


Taxation on profit on ordinary activities
134
216
Page 20
 

 
WELDEX (INTERNATIONAL) OFFSHORE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 23.01% (2022 -19%). The differences are explained below:

2023
2022
£000
£000


Profit on ordinary activities before tax
2,344
823


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.01% (2022 - 19%)
539
156

Effects of:


Expenses not deductible for tax purposes
46
4

Fixed asset differences
6
(6)

Chargeable gains/(losses)
-
9

Remeasurement of deferred tax for changes in tax rates
11
52

Movement in deferred tax not 
recognised
-
1

Group relief claimed
(468)
-

Total tax charge for the year
134
216


12.


Dividends

2023
2022
£000
£000


Dividends
18,957
-

18,957
-

Page 21
 

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

13.


Exceptional items

2023
2022
£000
£000


Restructuring costs
1,689
-

1,689
-


14.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Total

£000
£000
£000
£000



Cost or valuation


At 1 December 2022
2,781
127,576
482
130,839


Additions
-
-
117
117


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



At 30 November 2023

2,781
113,347
553
116,681



Depreciation


At 1 December 2022
874
45,028
269
46,171


Charge for the year
56
6,546
82
6,684


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



At 30 November 2023

930
43,907
315
45,152



Net book value



At 30 November 2023
1,851
69,440
238
71,529



At 30 November 2022
1,907
82,548
213
84,668

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

Page 22
 

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

15.


Stocks

2023
2022
£000
£000

Raw materials and consumables
242
253

242
253



16.


Debtors

2023
2022
£000
£000


Trade debtors
4,039
4,694

Amounts owed by group undertakings
1,055
1,055

Prepayments and accrued income
100
207

5,194
5,956


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


17.


Cash and cash equivalents

2023
2022
£000
£000

Cash at bank and in hand
3,976
772

Less: bank overdrafts
-
(3,386)

3,976
(2,614)



18.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Bank overdrafts
-
3,386

Trade creditors
1,248
1,336

Amounts owed to group undertakings
749
1,069

Other taxation and social security
415
205

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

Accruals and deferred income
1,152
478

3,564
15,411


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

Page 23
 

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

19.


Creditors: Amounts falling due after more than one year

2023
2022
£000
£000

Bank loans
37,601
-

Obligations under finance leases and hire purchase contracts
-
19,850

37,601
19,850



20.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£000
£000

Bank loans
37,601
-

37,601
-


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 company. The facility is due for renewal in September 2026.


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

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 company settled its obligations under finance leases and hire purchase agreements. 

Page 24
 

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

22.


Deferred taxation




2023
2022


£000

£000






At beginning of year
14,518
14,302


Charged to profit or loss
134
216



At end of year
14,652
14,518

The provision for deferred taxation is made up as follows:

2023
2022
£000
£000


Accelerated capital allowances
15,296
16,412

Tax losses
(644)
(1,894)

14,652
14,518


23.


Share capital

2023
2022
£000
£000
Allotted, called up and fully paid



24,742 (2022 - 24,742) Ordinary shares shares of £1.00 each
25
25



24.


Reserves

Share premium account

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

Capital redemption reserve

This reserve records the amounts which are transferred following the redemption or purchase of a company's own shares out of distributable profits.

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. 


25.


Guarantees and security

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

Page 25
 

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

26.


Pension commitments

The company 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).


27.


Commitments under operating leases

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

2023
2022
£000
£000


Not later than 1 year
30
30

30
30


28.


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 by the group headed by Weldex (International) Offshore Holdings Limited. 
During the year, the company recharged expenses of £1k (2022 - £2k) to entities under common ownership. At the year end the amounts outstanding were £nil (2022 - £nil).
During the year, the company also paid expenses of £30k (2022 - £30k) to entities under common ownership. At the year end the amounts outstanding were £nil (2022 - £nil).


29.


Post balance sheet events

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


30.


Controlling party

The company is a subsidiary undertaking of Weldex (International) Offshore Holdings Limited which is the immediate controlling party and is incorporated in Scotland.
The ultimate controlling party is the McGilvray family.
The only group in which the results of the company are consolidated is that headed by Weldex (International) Offshore Holdings Limited. The consolidated financial statements of this group are available to the public and may be obtained from 18-20 Harbour Road, Inverness, Scotland, IV1 1UA.


Page 26