Company registration number 07156267 (England and Wales)
OFFSHORE PAINTING SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
OFFSHORE PAINTING SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr D Jones
Mr P Jones
Company number
07156267
Registered office
7 Leckwith Road
Aintree
Liverpool
Merseyside
L31 8BX
Auditor
Robinson Rice Associates Limited
Chartered Accountants &
Chartered Tax Advisors
30 Crosby Road North
Crosby
Merseyside
L22 4QF
OFFSHORE PAINTING SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
OFFSHORE PAINTING SERVICES LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the Period ended 31 December 2023.
Review of the business
OPS has continued to go from strength to strength, having set a growth plan in 2022 and all targets were completed in this year.
The company key activities are supply of technicians and training to the renewable industry onshore and offshore.
The company performed in line with directors’ expectation with the fast-growing renewables sector.
Principal risks and uncertainties
The principal risks affecting the Company are the seasonal nature of the industry, competition from both UK and international contractors, long-term competitiveness and the attraction and retention of experienced personnel
The renewable sector continues to grow with most European countries committed to increasing the energy generated from more wind power and environmentally sustainable energy solutions, with a particular focus on offshore capacity. This is being led by the UK through the government’s industrial strategy and offshore wind sector deal. There are also an increasing number of opportunities outside of Europe as countries such as the US, Taiwan and Japan follow a similar path
The directors believe the Company’s market exposure is mitigated through diversification across customers and services provided. The directors continue to monitor the industry activity levels.
Key performance indicators
The main KPI for the company are Turnover, Gross Profit, EBITDA and the retention of key staff member. These are detailed below
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Profit before tax for the company | | |
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Mr D Jones
Director
5 September 2024
OFFSHORE PAINTING SERVICES LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the Period ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of painting contractors.
Results and dividends
The results for the Period are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the Period and up to the date of signature of the financial statements were as follows:
Mr D Jones
Mr P Jones
Post reporting date events
After the year end there is a reorganisation taking place where the Buildings will be separated into a new company.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr D Jones
Director
5 September 2024
OFFSHORE PAINTING SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
OFFSHORE PAINTING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OFFSHORE PAINTING SERVICES LIMITED
- 4 -
Opinion
We have audited the financial statements of Offshore Painting Services Limited (the 'company') for the Period ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the Period 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial Period 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.
OFFSHORE PAINTING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OFFSHORE PAINTING SERVICES LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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
Our audit response is based on:
- Enquiry of management, those charged with governance around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
- Testing systems and procedures to identify any weaknesses
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
OFFSHORE PAINTING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OFFSHORE PAINTING SERVICES LIMITED
- 6 -
We draw your attention to the fact that corresponding figures are unaudited.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Ms Beverley Rice FCA
Senior Statutory Auditor
For and on behalf of Robinson Rice Associates Limited
5 September 2024
Chartered Accountants
Statutory Auditor
Chartered Accountants &
Chartered Tax Advisors
30 Crosby Road North
Crosby
Merseyside
L22 4QF
OFFSHORE PAINTING SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 7 -
31 December
Year
ended
ended
2023
31 August
2022
Notes
£
£
Turnover
3
16,181,399
9,335,486
Cost of sales
(12,169,265)
(6,327,069)
Gross profit
4,012,134
3,008,417
Administrative expenses
(1,736,306)
(929,304)
Other operating income
7,315
5,472
Operating profit
4
2,283,143
2,084,585
Interest payable and similar expenses
7
(132,031)
(56,886)
Profit before taxation
2,151,112
2,027,699
Tax on profit
8
(583,441)
(388,593)
Profit for the financial Period
1,567,671
1,639,106
The profit and loss account has been prepared on the basis that all operations are continuing operations.
OFFSHORE PAINTING SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
31 December
Year
ended
ended
2023
31 August
2022
£
£
Profit for the Period
1,567,671
1,639,106
Other comprehensive income
-
-
Total comprehensive income for the Period
1,567,671
1,639,106
OFFSHORE PAINTING SERVICES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
31 August 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,322,321
1,139,854
Investments
11
100
100
1,322,421
1,139,954
Current assets
Debtors
13
3,007,468
4,113,613
Cash at bank and in hand
3,052,653
953,613
6,060,121
5,067,226
Creditors: amounts falling due within one year
14
(1,864,215)
(1,864,819)
Net current assets
4,195,906
3,202,407
Total assets less current liabilities
5,518,327
4,342,361
Creditors: amounts falling due after more than one year
15
(34,602)
(490,953)
Provisions for liabilities
Deferred tax liability
17
108,030
43,384
(108,030)
(43,384)
Net assets
5,375,695
3,808,024
Capital and reserves
Called up share capital
20
2
2
Profit and loss reserves
5,375,693
3,808,022
Total equity
5,375,695
3,808,024
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 5 September 2024 and are signed on its behalf by:
Mr D Jones
Director
Company registration number 07156267 (England and Wales)
OFFSHORE PAINTING SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2021
2
2,238,916
2,238,918
Year ended 31 August 2022:
Profit and total comprehensive income
-
1,639,106
1,639,106
Dividends
9
-
(70,000)
(70,000)
Balance at 31 August 2022
2
3,808,022
3,808,024
Period ended 31 December 2023:
Profit and total comprehensive income
-
1,567,671
1,567,671
Balance at 31 December 2023
2
5,375,693
5,375,695
OFFSHORE PAINTING SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
3,807,124
815,343
Interest paid
(132,031)
(56,886)
Income taxes paid
(578,563)
(98,277)
Net cash inflow from operating activities
3,096,530
660,180
Investing activities
Purchase of tangible fixed assets
(460,993)
(426,677)
Proceeds from disposal of tangible fixed assets
12,866
Proceeds from disposal of subsidiaries
(100)
Repayment of loans
(86,041)
30,702
Net cash used in investing activities
(534,168)
(396,075)
Financing activities
Repayment of bank loans
(391,315)
(106,507)
Payment of finance leases obligations
(72,090)
32,696
Dividends paid
(70,000)
Net cash used in financing activities
(463,405)
(143,811)
Net increase in cash and cash equivalents
2,098,957
120,294
Cash and cash equivalents at beginning of Period
953,446
833,152
Cash and cash equivalents at end of Period
3,052,403
953,446
Relating to:
Cash at bank and in hand
3,052,653
953,613
Bank overdrafts included in creditors payable within one year
(250)
(167)
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information
Offshore Painting Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7 Leckwith Road, Aintree, Liverpool, Merseyside, L31 8BX.
1.1
Reporting period
The accounts presented show a 16 month period of accounts to align with the calendar year. The comparatives are only for 12 months so consideration should be given to the fact that they are not the same length period
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.5
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% on cost
Plant and equipment
33% on cost
Fixtures and fittings
20% on cost
Computers
33% on cost
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. 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 which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover
2022
£
£
Turnover analysed by class of business
Painting and Repairs
14,636,021
8,467,760
Training
1,545,378
867,726
16,181,399
9,335,486
2022
£
£
Turnover analysed by geographical market
UK
10,117,430
7,397,335
Europe
5,996,573
1,938,151
Rest of world
67,396
-
16,181,399
9,335,486
4
Operating profit
2022
Operating profit for the period is stated after charging:
£
£
Exchange losses
2,959
480
Research and development costs
79,764
13,979
Fees payable to the company's auditor for the audit of the company's financial statements
8,900
Depreciation of owned tangible fixed assets
265,370
97,678
Loss on disposal of tangible fixed assets
290
4,581
Operating lease charges
105,824
113,197
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2022
Number
Number
98
109
Their aggregate remuneration comprised:
2022
£
£
Wages and salaries
6,509,459
3,581,665
Social security costs
731,841
420,097
Pension costs
118,342
56,499
7,359,642
4,058,261
6
Directors' remuneration
2022
£
£
Remuneration for qualifying services
350,000
260,000
Company pension contributions to defined contribution schemes
3,557
2,337
353,557
262,337
Remuneration disclosed above include the following amounts paid to the highest paid director:
2022
£
£
Remuneration for qualifying services
175,000
130,000
Company pension contributions to defined contribution schemes
1,779
1,169
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 19 -
7
Interest payable and similar expenses
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
43,810
38,189
Other finance costs:
Interest on finance leases and hire purchase contracts
8,102
3,814
Other interest
80,119
14,883
132,031
56,886
8
Taxation
2022
£
£
Current tax
UK corporation tax on profits for the current period
482,302
372,264
Adjustments in respect of prior periods
36,494
6,316
Total current tax
518,796
378,580
Deferred tax
Origination and reversal of timing differences
64,645
10,013
Total tax charge
583,441
388,593
The actual charge for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:
2022
£
£
Profit before taxation
2,151,112
2,027,699
Expected tax charge based on the standard rate of corporation tax in the UK of 22.46% (2022: 19.00%)
483,204
385,263
Tax effect of expenses that are not deductible in determining taxable profit
48,134
6,841
Permanent capital allowances in excess of depreciation
15,609
(9,536)
Under/(over) provided in prior years
36,494
6,025
Taxation charge for the period
583,441
388,593
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
9
Dividends
2022
£
£
Interim paid
70,000
10
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 September 2022
883,657
136,896
118,345
19,843
365,004
1,523,745
Additions
36,249
76,890
18,781
6,338
322,735
460,993
Disposals
(39,798)
(39,798)
At 31 December 2023
919,906
213,786
137,126
26,181
647,941
1,944,940
Depreciation and impairment
At 1 September 2022
118,912
106,424
14,273
144,282
383,891
Depreciation charged in the Period
19,487
51,543
10,270
7,303
176,767
265,370
Eliminated in respect of disposals
(26,642)
(26,642)
At 31 December 2023
19,487
170,455
116,694
21,576
294,407
622,619
Carrying amount
At 31 December 2023
900,419
43,331
20,432
4,605
353,534
1,322,321
At 31 August 2022
883,657
17,984
11,921
5,570
220,722
1,139,854
There are motor vehicle included in fixed assets held under HP agreements and are therefore used as security in respect of this liability. The total liability outstanding at the year end is £48,543 for assets with a NBV of £105,664
Post year end a reorganisation is taking place and the Buildings which are shown at a cost of £919,906 will be separated into a separate company.
11
Fixed asset investments
2022
Notes
£
£
Investments in subsidiaries
12
100
100
12
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
12
Subsidiaries
(Continued)
- 21 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
OPS Wind Limited
UK
Ordinary Shares
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
OPS Wind Limited
100
13
Debtors
2022
Amounts falling due within one year:
£
£
Trade debtors
2,801,421
3,845,935
Corporation tax recoverable
6,224
Other debtors
88,550
173,783
Prepayments and accrued income
117,497
87,671
3,007,468
4,113,613
14
Creditors: amounts falling due within one year
2022
Notes
£
£
Bank loans and overdrafts
16
151,733
146,574
Obligations under finance leases
13,942
26,072
Trade creditors
659,210
754,482
Corporation tax
482,302
548,294
Other taxation and social security
174,531
150,500
Deferred income
18
94,201
50,891
Other creditors
136,142
22,812
Accruals and deferred income
152,154
165,194
1,864,215
1,864,819
The loan was secured on all freehold and leasehold property with fixed and floating charges. However the loan was cleared in January 2024 and charges removed.
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 22 -
15
Creditors: amounts falling due after more than one year
2022
Notes
£
£
Bank loans and overdrafts
16
396,391
Obligations under finance leases
34,602
94,562
34,602
490,953
16
Loans and overdrafts
2022
£
£
Bank loans
151,483
542,798
Bank overdrafts
250
167
151,733
542,965
Payable within one year
151,733
146,574
Payable after one year
396,391
The loans of £151,483 were secured by fixed and floating charges over assets. However, the loans were cleared January 2024 and the charges removed.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
Balances:
£
£
Accelerated capital allowances
108,030
43,384
Movements in the Period:
£
Liability at 1 September 2022
43,384
Charge to profit or loss
64,646
Liability at 31 December 2023
108,030
The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 23 -
18
Deferred income
2022
£
£
Other deferred income
94,201
50,891
19
Retirement benefit schemes
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
118,342
56,499
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2022
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
2
2
2
2
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
£
£
Within one year
4,125
20,625
22
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Dividends totalling £0 (2022 - £70,000) were paid in the Period in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
-
-
43,795
43,795
-
-
42,245
42,245
-
86,040
86,040
OFFSHORE PAINTING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
22
Directors' transactions
(Continued)
- 24 -
23
Ultimate controlling party
The parent company is OEG Renewables Group Limited, a UK company registered office Manor Offices Portland Port Business Centre, Castletown, Portland, Dorset, United Kingdom, DT5 1PB
The ultimate controlling party is OEG Global Limited, registered office Yarmouth Business Park, Thamesfield Way, Great Yarmouth, Norfolk, United Kingdom, NR31 0ER
24
Cash generated from operations
2022
£
£
Profit for the Period after tax
1,567,671
1,639,107
Adjustments for:
Taxation charged
583,441
388,593
Finance costs
132,031
56,886
Loss on disposal of tangible fixed assets
290
4,581
Depreciation and impairment of tangible fixed assets
265,370
97,678
Movements in working capital:
Decrease/(increase) in debtors
1,185,962
(1,807,580)
Increase in creditors
29,049
420,181
Increase in deferred income
43,310
15,897
Cash generated from operations
3,807,124
815,343
25
Analysis of changes in net funds
1 September 2022
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
953,613
2,099,040
3,052,653
Bank overdrafts
(167)
(83)
(250)
953,446
2,098,957
3,052,403
Borrowings excluding overdrafts
(542,798)
391,315
(151,483)
Obligations under finance leases
(120,634)
72,090
(48,544)
290,014
2,562,362
2,852,376
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