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REGISTERED NUMBER: 08110758 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

MDE CONSULTANTS LTD

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 7

Report of the Independent Auditors 9

Income Statement 12

Other Comprehensive Income 13

Balance Sheet 14

Statement of Changes in Equity 15

Cash Flow Statement 16

Notes to the Cash Flow Statement 17

Notes to the Financial Statements 18


MDE CONSULTANTS LTD

COMPANY INFORMATION
for the Year Ended 31 DECEMBER 2023







DIRECTORS: S M Bjustveit
T C Nixon
J A Wathne





REGISTERED OFFICE: 61 Queen Square
Bristol
BS1 4JZ





REGISTERED NUMBER: 08110758 (England and Wales)





AUDITORS: Burnside
Chartered Accountants
and Statutory Auditor
61 Queen Square
Bristol
BS1 4JZ

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

STRATEGIC REPORT
for the Year Ended 31 DECEMBER 2023

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

BUSINESS REVIEW
The principal activity of the company is the provision of manpower and project support services to the global oil and gas industry.

The company is based in Bristol, UK with branch offices in Mozambique, Korea and Denmark. MDE Group AS also have entities in Norway, Dubai and Singapore, which are utilised by MDE Consultants Ltd in delivering services to clients.


MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

STRATEGIC REPORT
for the Year Ended 31 DECEMBER 2023

FINANCIAL REVIEW
The results of the company, as set out on pages 12 to 26 show a loss on ordinary activities before taxation of £328,278, which has decreased from a profit of £277,616 before taxation in 2022.

The company's turnover has decreased in the year by approximately £11.7 million from £25,321,701 in 2022 to £13,583,315 in 2023.

The Oil and Gas industry has been negatively affected by the low price of oil in recent years and the major threat to the business continues to be this downturn. During this period fewer new projects commenced and companies in the sector have reduced hiring or have frozen recruitment altogether, leading to a decline in demand for recruitment services. MDE has been affected by projects which have been cancelled or postponed during the year, leading to a loss of revenue during 2023.

To address these challenges and mitigate losses, MDE will reassess its business strategy, diversify its client base, streamline operations, optimise costs and adapt to changing market conditions.

Business environment

Since 2006 MDE Group has been involved in the provision and management of specialist engineering, technical and support personnel to major clients around the world. With a sole focus on projects and operations in the Oil & Gas sector. MDE specialise in two main areas; firstly, recruitment and manpower services, and secondly, full management of consultant mobilisation and in-country services. We provide fully integrated technical service teams and project services support to best supplement our clients' teams worldwide including;

- Recruitment of specialist Oil and Gas engineers
- International payroll
- Visa services / alien card registration
- Management of vaccinations
- Mobilisation and shipping
- Travel booking and management
- Hotel bookings and management
- Accommodation provision and management
- Mobilisation / demobilisation management
- Provision of vehicles, highway passes and fuel couponing
- Meet and greet, airport transfers and local taxis
- Group transportation and shuttle buses
- International licence conversion and defensive driving courses
- PPE quotation and provision
- Schooling advice and enrolment
- Medical insurance
- Workman's compensation
- Orientation and in-country services (banking, insurance etc.)
- Local 24-hour emergency helplines and global travel assist services
- Evacuation planning
- HSE induction / site induction
- Training organisation
- Miscellaneous services - translation services, office equipment procurement, courier service.

Strategy

The company will continue to seek and work with clients who are proceeding with their projects around the world.

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

STRATEGIC REPORT
for the Year Ended 31 DECEMBER 2023


The company will continue to build lasting relationships with these companies, which has resulted in the company becoming preferred supplier for the majority of their existing clients. It will also look to build these relationships with new companies that fit with its strategic profile.

Financial performance

Summary of Key Performance Indicators ("KPIs")


Operations 2023 2022
£'000000 £'000000
Turnover 13,583 25,322
Gross Profit 2,456 3,241
Gross Profit Margin 18.07% 12.80%
Operating (Loss)/Profit (284 ) 410


The directors monitor the progress of the company by reference to certain financial and non-financial key performance indicators in the following areas:

Sales targets and margins

Turnover achieved £13.583 million against a target of £25.277 million.
Gross Margin Profit achieved £2.5 million against a target of £3.9 million.
Gross Margin was 18.07% against a target of 15.51%.

Cash collected and debtor book

Cash collected during the year on net sales (excluding VAT) amounted to £16.531 million.
Trade Debtors at the year-end amounted to £1.679 million compared to £3.125 million as at 31 December 2022.

Average Debtor days increased from approximately 45 days in 2022 to 59 days in 2023.

The directors believe the company has faced significant challenges resulting in a net loss, despite our best efforts, we experienced a shortfall in profitability.

Non-financial KPIs

Health and safety
Staff welfare
Environmental
Client satisfaction


MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

STRATEGIC REPORT
for the Year Ended 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The continued success of the company is subject to a number of risks. The principal risks that the directors consider the business faces are as follows:

Market conditions
The recruitment industry witnessed unprecedented shifts in market dynamics, particularly within the oil and gas sector, which significantly impacted our revenue streams. Economic uncertainties and fluctuations in demand led to reduced client hiring activities and increased competition.

Operational performance
Our operational performance was affected by several factors, including higher-than-anticipated costs associated with talent acquisition, increased overhead expenses, and fluctuations in demand for specialised skills within the industry. We recognize the need to optimise our operational processes and improve efficiency.

Client relationships
While we maintained strong relationships with our existing clients, we faced challenges in acquiring new business and expanding our client base. Client budget constraints and project delays contributed to a decrease in contract volumes and placements.

Strategic initiatives
Despite the loss incurred, we remained focused on executing strategic initiatives aimed at driving long-term growth and sustainability. These initiatives include diversifying our service offerings, expanding into emerging markets, investing in technology and automation, and optimising our cost structure.

Looking ahead, we remain cautiously optimistic about the future prospects of our company. We see opportunities for growth in sectors experiencing resurgence and are confident in our ability to adapt to evolving market conditions. By leveraging our expertise, fostering innovation, and delivering exceptional service, we aim to restore profitability and create value for our stakeholders.

Skilled labour
The focus on UK recruitment will mean more involvement in IR35 changes. This has meant that MDE had to slightly change the recruitment focus from mainly contractor placement to a mixture of permanent and contractor placements. We will achieve this through the recruitment of skilled permanent recruiters, while recruiting into permanent led markets, such as manufacturing and renewables. The positive to such a change will mean that MDE will generate strong gross profit percentages in future financial years while increasing the cashflow headroom of the business.

Financial risks
The company has continued to trade in a diverse and difficult market and in 2023 has made a loss. The company has had the support of its parent entity. The group will continue to support the UK business throughout 2024.

Customer concentration
The introduction of a large client in 2022, focused on offshore maintenance of the North Sea assets, has seen a rapid decline in 2023.


MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

STRATEGIC REPORT
for the Year Ended 31 DECEMBER 2023

The focus on global shifting towards renewable sources of energy has meant that MDE have continued to invest heavily in establishing a dedicated internal renewables recruitment team, which will allow MDE to spread recruitment services over a number of energy industries thus reducing the reliance on Oil & Gas sales in future years. We also continue to look to widen our supply into this core European market via our established Danish branch office and we will continue to work with our other branches around the world.

Health and safety
The company has a strict health and safety policy and ensure all labour has the appropriate training in place and arrange regular training updates when required.

ON BEHALF OF THE BOARD:





S M Bjustveit - Director


1 May 2024

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

REPORT OF THE DIRECTORS
for the Year Ended 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

POST BALANCE SHEET EVENTS
There have been no significant events affecting the company since the year end.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

S M Bjustveit
T C Nixon
J A Wathne

GOING CONCERN
The financial statements have been prepared on a going concern basis. The directors have reviewed and considered relevant information, including the annual budget and future cash flows, in making their assessment. Based on these assessments the directors have concluded that they can continue to adopt the going concern basis in preparing the financial statements.

DISCLOSURE IN THE STRATEGIC REPORT
The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 requires a Strategic Report to be prepared. Where mandatory disclosures in the Report of the Directors are considered by the directors to be of strategic importance these have been included within the Strategic Report rather than in the Report of the Directors.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

REPORT OF THE DIRECTORS
for the Year Ended 31 DECEMBER 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Burnside, were appointed during the year and will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S M Bjustveit - Director


1 May 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MDE CONSULTANTS LTD

Opinion
We have audited the financial statements of MDE Consultants Ltd (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement, Notes to the Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MDE CONSULTANTS LTD


Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities set out on page seven, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MDE CONSULTANTS LTD


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 a Report of the Auditors 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:

An understanding of the legal and regulatory framework applicable to the entity was obtained from management and those charged with governance of the entity, and the audit engagement team was confirmed to have the appropriate competence and capabilities to identify non-compliance with such a framework.

No significant instances of fraud, non-compliance with laws and regulations or other irregularities were communicated to the engagement team by management or those charged with governance, and no particular audit areas or legislation were identified that gave rise to any significant risks of material misstatement in respect of such irregularities.

Due to the size and nature of the entity, its susceptibility to material misstatement resulting from fraud, non-compliance with laws and regulations, or other irregularities is considered to be low, and the audit approach was appropriately planned so as to address this risk.

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 Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Steven Coombe FCA (Senior Statutory Auditor)
for and on behalf of Burnside
Chartered Accountants
and Statutory Auditor
61 Queen Square
Bristol
BS1 4JZ

1 May 2024

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

INCOME STATEMENT
for the Year Ended 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 13,583,315 25,321,701

Cost of sales 11,127,549 22,080,414
GROSS PROFIT 2,455,766 3,241,287

Administrative expenses 2,739,665 2,830,798
OPERATING (LOSS)/PROFIT 5 (283,899 ) 410,489


Interest payable and similar expenses 6 44,379 132,873
(LOSS)/PROFIT BEFORE TAXATION (328,278 ) 277,616

Tax on (loss)/profit 7 9,245 57,491
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(337,523

)

220,125

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

OTHER COMPREHENSIVE INCOME
for the Year Ended 31 DECEMBER 2023

2023 2022
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (337,523 ) 220,125


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(337,523

)

220,125

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 23,253 29,505

CURRENT ASSETS
Debtors 9 2,368,109 3,927,179
Cash at bank and in hand 808,762 1,387,854
3,176,871 5,315,033
CREDITORS
Amounts falling due within one year 10 2,385,970 3,755,483
NET CURRENT ASSETS 790,901 1,559,550
TOTAL ASSETS LESS CURRENT
LIABILITIES

814,154

1,589,055

PROVISIONS FOR LIABILITIES 13 - 7,378
NET ASSETS 814,154 1,581,677

CAPITAL AND RESERVES
Called up share capital 14 700 1,000
Share premium 15 9,000 9,000
Capital redemption reserve 15 300 -
Retained earnings 15 804,154 1,571,677
SHAREHOLDERS' FUNDS 814,154 1,581,677

The financial statements were approved by the Board of Directors and authorised for issue on 1 May 2024 and were signed on its behalf by:





S M Bjustveit - Director


MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 DECEMBER 2023

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 January 2022 1,000 1,351,552 9,000 - 1,361,552

Changes in equity
Total comprehensive income - 220,125 - - 220,125
Balance at 31 December 2022 1,000 1,571,677 9,000 - 1,581,677

Changes in equity
Reduction in share capital (300 ) - - 300 -
Total comprehensive income - (337,523 ) - - (337,523 )
Purchase of own shares - (430,000 ) - - (430,000 )
Balance at 31 December 2023 700 804,154 9,000 300 814,154

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

CASH FLOW STATEMENT
for the Year Ended 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 339,251 331,486
Interest paid (44,379 ) (132,873 )
Tax paid (93,882 ) (60,326 )
Net cash from operating activities 200,990 138,287

Cash flows from investing activities
Purchase of tangible fixed assets (14,972 ) (13,705 )
Net cash from investing activities (14,972 ) (13,705 )

Cash flows from financing activities
Change in amount owed to/from directors 4,679 (5,354 )
Repurchase of own shares (430,000 ) -
Movement on invoice discounting facility (339,789 ) (359,885 )
Net cash from financing activities (765,110 ) (365,239 )

Decrease in cash and cash equivalents (579,092 ) (240,657 )
Cash and cash equivalents at
beginning of year

2

1,387,854

1,628,511

Cash and cash equivalents at end of
year

2

808,762

1,387,854

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

NOTES TO THE CASH FLOW STATEMENT
for the Year Ended 31 DECEMBER 2023

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
(Loss)/profit before taxation (328,278 ) 277,616
Depreciation charges 21,224 31,269
Finance costs 44,379 132,873
(262,675 ) 441,758
Decrease in trade and other debtors 1,659,252 1,082,985
Decrease in trade and other creditors (1,057,326 ) (1,193,257 )
Cash generated from operations 339,251 331,486

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 808,762 1,387,854
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,387,854 1,628,511


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 1,387,854 (579,092 ) 808,762
1,387,854 (579,092 ) 808,762
Total 1,387,854 (579,092 ) 808,762

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 DECEMBER 2023

1. STATUTORY INFORMATION

MDE Consultants Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The directors are of the opinion that there are no estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

Turnover
Turnover represents income from the supply of recruitment, relocation and in-country project services provision, excluding value added tax. Income is recognised as the contract activity progresses to reflect the company's partial performance of its contractual obligations.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 33% on cost
Fixtures and fittings - 33% on cost
Computer equipment - 33% on cost

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

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 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, which include trade and other debtors, amounts due from group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. 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.

Basic financial liabilities, including trade and other creditors and amounts due to group undertakings are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents
Cash and cash equivalents 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.

Going concern
The financial statements have been prepared on a going concern basis. The directors have reviewed and considered relevant information, including the annual budget and future cash flows, in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse condition, and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the financial statements.

3. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 10,892,186 15,681,951
Overseas 2,691,129 9,639,750
13,583,315 25,321,701

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 DECEMBER 2023

4. EMPLOYEES AND DIRECTORS

20232022
£   £   
Wages and salaries8,875,1779,194,751
Social security costs845,6541,091,524
Other pension costs619,519548,547
10,340,35011,765,994

The average number of employees during the year was as follows:
20232022
Management74
Finance47
Support55
Recruitment1319
Direct130137
159172

2023 2022
£    £   
Directors' remuneration 117,469 117,132
Directors' pension contributions to money purchase schemes 10,958 10,917

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

The directors are of the opinion that there are no key management personnel other than the directors.

The comparative figures have been restated to include the cost of wages and salaries and related employment costs included within cost of sales, not previously included.

5. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 21,224 31,269
Auditors' remuneration 13,500 16,500
Foreign exchange differences (107,169 ) (435,007 )

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 DECEMBER 2023

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 44,379 17,242
Other trading interest - 115,631
44,379 132,873

7. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 72,945 59,055
Tax re previous years 48,539 -
Total current tax 121,484 59,055

Deferred tax (112,239 ) (1,564 )
Tax on (loss)/profit 9,245 57,491

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
(Loss)/profit before tax (328,278 ) 277,616
(Loss)/profit multiplied by the standard rate of corporation tax in
the UK of 25% (2022 - 19%)

(82,070

)

52,747

Effects of:
Expenses not deductible for tax purposes 905 -
Capital allowances in excess of depreciation (1,345 ) (767 )
Adjustments to tax charge in respect of previous periods 48,539 -
Deferred tax provided at 25% not 19% - 1,837
Deferred tax not previously recognised (12,263 ) 3,674
Overseas tax payable less relief 55,479 -
Total tax charge 9,245 57,491

At 31 December 2023 the company had trading tax losses of £408,791 (2022: £Nil) available for carry forward for offset against future trading profits.

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 DECEMBER 2023

8. TANGIBLE FIXED ASSETS
Improvements Fixtures
to and Computer
property fittings equipment Totals
£    £    £    £   
COST
At 1 January 2023 15,941 33,426 122,905 172,272
Additions - - 14,972 14,972
Disposals - - (25,380 ) (25,380 )
At 31 December 2023 15,941 33,426 112,497 161,864
DEPRECIATION
At 1 January 2023 11,563 33,426 97,778 142,767
Charge for year 4,378 - 16,846 21,224
Eliminated on disposal - - (25,380 ) (25,380 )
At 31 December 2023 15,941 33,426 89,244 138,611
NET BOOK VALUE
At 31 December 2023 - - 23,253 23,253
At 31 December 2022 4,378 - 25,127 29,505

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,679,205 3,124,584
Other debtors 82,054 834
Directors' current accounts 1,512 6,191
Deferred tax asset 104,861 -
Prepayments 500,477 795,570
2,368,109 3,927,179

Deferred tax asset
2023
£   
Accelerated capital allowances (5,813 )
Tax losses carried forward 102,198
Other timing differences 8,476
104,861

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 DECEMBER 2023

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 291,756 647,400
Corporation tax 75,106 47,504
Social security and other taxes 387,934 559,384
VAT 145,902 563,334
Other creditors 174,660 288,494
Invoice discounting facility 1,118,689 1,458,478
Accruals and deferred income 191,923 190,889
2,385,970 3,755,483

The invoice discounting facility are amounts owed to HSBC Invoice Finance (UK) Ltd.

This amount is secured by means of a fixed and floating charge held over all of the company's assets and a legal assignment of contract monies. This charge is in favour of HSBC Bank plc.

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 127,948 -
Between one and five years 276,403 501,130
404,351 501,130

12. FINANCIAL INSTRUMENTS

2023 2022
£    £   
Financial assets measured at amortised cost
Trade debtors 1,679,205 3,124,584
Other debtors 82,054 834
Cash at bank 808,762 1,387,854


2023 2022
£    £   
Financial liabilities measured at amortised cost
Trade creditors 291,756 647,400
Other creditors 1,293,349 1,746,972
Accruals 191,923 190,889


MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 DECEMBER 2023

13. PROVISIONS FOR LIABILITIES
2022
£   
Deferred tax
Accelerated capital allowances 7,378

Deferred
tax
£   
Balance at 1 January 2023 7,378
Credit to Income Statement during year (112,239 )
Balance at 31 December 2023 (104,861 )

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
700 Ordinary share capital 1 700 1,000

During the year, the company re-purchased and cancelled 300 of its own ordinary shares of £1.00 each for a total consideration of £430,000.

15. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 January 2023 1,571,677 9,000 - 1,580,677
Deficit for the year (337,523 ) (337,523 )
SoCIE line item with acc967/32 - - 300 300
Purchase of own shares (430,000 ) - - (430,000 )
At 31 December 2023 804,154 9,000 300 813,454

16. PENSION COMMITMENTS

At the year end amounts totalling £33,906 (2022: £54,491) due to employee defined contribution pension schemes were included within creditors.

MDE CONSULTANTS LTD (REGISTERED NUMBER: 08110758)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 DECEMBER 2023

17. RELATED PARTY DISCLOSURES

During the year the company made sales of £324,568 (2022: £145,966) to fellow subsidiaries of the MDE Group AS group under common control and a balance of £84,234 (2022: £nil) was included in trade debtors at the year end. The company was also charged expenses of £381,120 (2022: £232,756) from fellow subsidiaries under common control and at the year end a balance of £128,396 (2022: £nil) was included in trade creditors.

At the year end date, the directors owed the company a total of £1,512 (2022: £6,191). These amounts were repaid shortly after the year-end. No interest was charged. Furthermore, shares were repurchased by the company from directors and close family members during the year amounting to £430,000 (2022: £nil).

18. POST BALANCE SHEET EVENTS

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

19. ULTIMATE CONTROLLING PARTY

The immediate parent company is MDE Group AS, a company incorporated in Norway which is the parent of the largest and smallest group of which the company is a member. Consolidated financial statements can be obtained from MDE Group AS, Kontorveien 15, Level 5, 4033 Stavanger, Norway.

The ultimate controlling party is S M Bjustveit.