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REGISTERED NUMBER: SC429928 (Scotland)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

ENERQUIP LIMITED

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Contents of the Financial Statements
for the Year Ended 31 December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Financial Statements 14


ENERQUIP LIMITED

Company Information
for the Year Ended 31 December 2023







DIRECTORS: J P Duncan
A Polson
S H D Cowie
A M G Robins





REGISTERED OFFICE: 5 Carden Place
Aberdeen
AB10 1UT





REGISTERED NUMBER: SC429928 (Scotland)





AUDITORS: AJB Scholes Ltd
8 Albert Street
Kirkwall
Orkney
KW15 1HP

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Strategic Report
for the Year Ended 31 December 2023


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

FAIR REVIEW OF BUSINESS
In the year ended 31 December 2023 the company achieved a turnover of £18.9m (2022: £12.3m) and a profit before tax of £3.8m (2022: £2.4m). Net assets at the balance sheet date were £2.7m (2022: £2.6M). The movement was in line with the expectations of the directors.

PRINCIPAL RISKS AND UNCERTAINTIES
The company face a variety of risks and uncertainties, both foreseeable and unforeseeable. The board consider the main risks to be:

Unpredictability of the oil and gas market
The demand for our products is influenced by both the condition of the oil and gas market, and the oil price. The significant volatility we have seen in recent years is likely to continue with the transition to green energy amid growing worldwide concern about climate change. Low oil and gas prices impact the expenditure plans of our key clients and therefore the demand for our services which could limit our profitability and growth. The company manages its risk by constantly monitoring the status of the oil and gas market and have put in place a strategy to diversify both its client base, ensuring that it services national oil companies, international oil companies and independent clients including other service companies, and the geographical basins in which we operate.

Political risks
Recent global economic conditions have had a significant impact on countries whose economies are exposed to the downturn in commodity pricing, placing greater pressure on governments to find alternative means of raising revenue and increasing the risk of social and labour unrest. The company manages this risk by regularly reviewing current and future operations and new opportunities in locations where political risk is considered to be a key factor in the commercial success of the operations. This is notable for actual and potential operations in the Middle East.

Product development risks
Our success depends, in part, on the continued successful development of our products and the acceptance of those products by our clients. To manage this risk we maintain an active dialogue with all of our customers to understand their business requirements and employ rigorous product development control processes to ensure that our products meet the needs of our clients.

Financial and treasury risks
The company undertakes transactions in multiple currencies and manages working capital positions across a number of different markets and geographical areas. The company actively monitors, evaluates and manages these currencies, working capital and cash flow to ensure all financial commitments are met as they fall due.

KEY PERFORMANCE INDICATORS
The directors consider the key performance indicators of the business to be turnover (2023: £18.9m; 2022: £12.3m), gross margin (2023: 38.3%; 2022: 37.6%) and EBITDA (2023: £3.9m; 2022: £2.5m).

ON BEHALF OF THE BOARD:





A M G Robins - Director


20 September 2024

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

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.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the manufacture, supply and maintenance of torque machinery.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £2,800,000 (2022 - £nil).

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

J P Duncan
A Polson
S H D Cowie
A M G Robins

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.

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.

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Report of the Directors
for the Year Ended 31 December 2023


AUDITORS
The auditors, AJB Scholes Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:




A M G Robins - Director


20 September 2024

Report of the Independent Auditors to the Members of
Enerquip Limited


Qualified opinion on financial statements

We have audited the financial statements of Enerquip Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the cash flow statement 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

- give a true and fair view of the state of the company's affairs at 31 December 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 qualified opinion
We were not appointed as auditor of the company until after 31 December 2022 and thus did not observe the counting of physical stock held at the 31 December 2022. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31 December 2022, which was stated in the balance sheet at £1,179,820, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to the stock balance to be required, the strategic report would also need to be amended.

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 qualified 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 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £1,179,820 held at 31 December 2022. We have concluded that where the other information refers to the stock or related balances such as cost of sales, it may be materially misstated for the same reason.

Report of the Independent Auditors to the Members of
Enerquip Limited


Opinions on other matters prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 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 respect solely of the limitation on our work relating to stock, described above:

- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
- we were unable to determine whether adequate accounting records had been maintained.

Except for the matter described in the basis for qualified opinion section of our report, 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 director's 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:

- 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.



Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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
Enerquip Limited


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:

Extent to which the audit was considered capable of detecting irregularities, including fraud.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks,including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we considered the following:
· the nature of the industry and sector, and control environment;
· results of our enquiries of management;
· any matters we identified having obtained and reviewed the company's documentation of their policies and
procedures relating to:
· identifying, evaluating and complying with laws and regulations and whether they were aware of
any instances of non-compliance;
· detecting and responding to the risks of fraud and whether they have knowledge of any actual,
suspected or alleged fraud;
· the internal controls established to mitigate risks of fraud or non-compliance with laws and
regulations.
· the matters discussed among the audit engagement team.

As a result of these procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and irregularities. Income recognition, purchases and stock were key areas of focus. In
common with all audits under ISA's (UK), we are also required to perform specific procedures to respond to the risk
of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing
on provisions of those laws and regulations that had a direct effect on the determination of material amounts and
disclosures in the financial statements, such as tax legislation and relevant companies acts.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial
statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material
penalty. These include laws and regulations pertaining to employment regulations; and health and safety legislation.

In addition to the above, our procedures to respond to risks identified included the following:
· reviewing the financial statement disclosures and testing to supporting documentation to assess
compliance with provisions of relevant laws and regulations described as having a direct effect on the
financial statements;
· enquiring of management concerning actual potential litigation and claims;
· performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks
of material misstatement due to fraud;
· reading minutes of meetings of those charged with governance; and
· in addressing the risk of fraud through management override of controls, testing the appropriateness of
journal entries and other adjustments; assessing whether the judgements made in making accounting
estimates are indicative of a potential bias; and evaluating the business rationale of any significant
transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team
members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Report of the Independent Auditors to the Members of
Enerquip Limited


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

Other matters which we are required to address
In the previous accounting period the directors of the company took advantage of the audit exemption under S477 of the Companies Act. Therefore the prior period financial statements were not audited.

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.




Ryan Allan (Senior Statutory Auditor)
for and on behalf of AJB Scholes Ltd
8 Albert Street
Kirkwall
Orkney
KW15 1HP

20 September 2024

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Income Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 4 18,862,620 12,320,459

Cost of sales 11,635,557 7,687,664
GROSS PROFIT 7,227,063 4,632,795

Administrative expenses 3,425,240 2,475,677
3,801,823 2,157,118

Other operating income - 264,660
OPERATING PROFIT 6 3,801,823 2,421,778

Interest receivable and similar income 6,341 201
3,808,164 2,421,979

Interest payable and similar expenses 8 30,296 1,101
PROFIT BEFORE TAXATION 3,777,868 2,420,878

Tax on profit 9 926,509 (72,580 )
PROFIT FOR THE FINANCIAL YEAR 2,851,359 2,493,458

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 2,851,359 2,493,458


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,851,359

2,493,458

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 494,644 76,178
Investments 12 798 827
495,442 77,005

CURRENT ASSETS
Stocks 13 1,479,250 1,179,820
Debtors 14 11,764,079 7,898,168
Cash at bank and in hand 1,094,802 1,475,193
14,338,131 10,553,181
CREDITORS
Amounts falling due within one year 15 12,113,200 7,981,394
NET CURRENT ASSETS 2,224,931 2,571,787
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,720,373

2,648,792

CREDITORS
Amounts falling due after more than one
year

16

(18,333

)

(28,333

)

PROVISIONS FOR LIABILITIES 19 (48,723 ) (18,501 )
NET ASSETS 2,653,317 2,601,958

CAPITAL AND RESERVES
Called up share capital 20 200,000 200,000
Retained earnings 21 2,453,317 2,401,958
SHAREHOLDERS' FUNDS 2,653,317 2,601,958

The financial statements were approved by the Board of Directors and authorised for issue on 20 September 2024 and were signed on its behalf by:





A M G Robins - Director


ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 200,000 1,908,500 2,108,500

Changes in equity
Dividends - (2,000,000 ) (2,000,000 )
Total comprehensive income - 2,493,458 2,493,458
Balance at 31 December 2022 200,000 2,401,958 2,601,958

Changes in equity
Dividends - (2,800,000 ) (2,800,000 )
Total comprehensive income - 2,851,359 2,851,359
Balance at 31 December 2023 200,000 2,453,317 2,653,317

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 24 2,408,324 (298,193 )
Interest paid (30,296 ) (1,101 )
Tax paid (60,316 ) -
Net cash from operating activities 2,317,712 (299,294 )

Cash flows from investing activities
Purchase of tangible fixed assets (489,074 ) (86,102 )
Interest received 6,341 201
Net cash from investing activities (482,733 ) (85,901 )

Cash flows from financing activities
Loan repayments in year (10,000 ) (10,000 )
Amount introduced by directors - 100,000
Amount withdrawn by directors (100,000 ) -
Movement on intercompany balances 1,451,753 2,099,301
Movement on associated balances (757,123 ) 757,123
Equity dividends paid (2,800,000 ) (2,000,000 )
Net cash from financing activities (2,215,370 ) 946,424

(Decrease)/increase in cash and cash equivalents (380,391 ) 561,229
Cash and cash equivalents at beginning of
year

25

1,475,193

913,964

Cash and cash equivalents at end of year 25 1,094,802 1,475,193

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Notes to the Financial Statements
for the Year Ended 31 December 2023


1. STATUTORY INFORMATION

Enerquip Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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 - in accordance with the property
Plant and machinery - Straight line over 3 years
Fixtures and fittings - Straight line over 3 years
Motor vehicles - Straight line over 4 years

Improvements to property are to be depreciated over the remaining lease term once completed.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

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.

3. CRITICAL ACCOUNTING 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.

Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

In categorising leases as finance leases or operating leases, management make judgement as to whether significant risks and rewards of ownership have transferred to the company as lessee.

In determining depreciation rates, management must consider and make judgements on the residual value of the assets and their residual lives in order to set depreciation rates.

Useful Economic life of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

4. TURNOVER

The turnover and 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 1,361,192 741,936
Rest of the world 17,501,428 11,578,523
18,862,620 12,320,459

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,591,846 2,767,213
Social security costs 387,799 265,071
Other pension costs 94,866 60,089
4,074,511 3,092,373

The average number of employees during the year was as follows:
2023 2022

Administration and support 15 10
Production 54 37
Management 3 4
72 51

2023 2022
£    £   
Directors' remuneration - 2,500

6. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 20,422 6,757
Other operating leases 192,709 184,098
Depreciation - owned assets 70,608 34,673
Loss on disposal of fixed assets - 5,097
Foreign exchange differences 177,744 (265,044 )

7. AUDITORS' REMUNERATION
2023 2022
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

17,000

-

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 30,296 1,101

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


9. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 868,491 (85,410 )
Adjustment re prior years 27,796 -
Total current tax 896,287 (85,410 )

Deferred tax 30,222 12,830
Tax on profit 926,509 (72,580 )

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

2023 2022
£    £   
Profit before tax 3,777,868 2,420,878
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

944,467

459,967

Effects of:
Expenses not deductible for tax purposes 10,231 3,352
Capital allowances in excess of depreciation (31,579 ) (13,414 )
Adjustments to tax charge in respect of previous periods 27,796 -
Tax credits on R&D expenditure - (535,315 )
Movement in deferred tax 30,222 12,830
Element of profit charged at 19% (54,628 ) -
Total tax charge/(credit) 926,509 (72,580 )

10. DIVIDENDS
2023 2022
£    £   
A Ordinary shares of 1 each
Interim 2,800,000 2,000,000

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


11. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 - 458,711 77,195 34,940 570,846
Additions 297,970 106,571 56,734 27,799 489,074
At 31 December 2023 297,970 565,282 133,929 62,739 1,059,920
DEPRECIATION
At 1 January 2023 - 410,810 48,918 34,940 494,668
Charge for year - 41,720 22,517 6,371 70,608
At 31 December 2023 - 452,530 71,435 41,311 565,276
NET BOOK VALUE
At 31 December 2023 297,970 112,752 62,494 21,428 494,644
At 31 December 2022 - 47,901 28,277 - 76,178

12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2023 827
Exchange revaluation (29 )
At 31 December 2023 798
NET BOOK VALUE
At 31 December 2023 798
At 31 December 2022 827

13. STOCKS
2023 2022
£    £   
Stocks 1,479,250 1,179,820

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 10,045,910 5,793,695
Other debtors 1,332,018 845,731
Tax 57,614 85,410
VAT 219,182 194,120
Prepayments and accrued income - 920,945
Prepayments 109,355 58,267
11,764,079 7,898,168

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 17) 10,000 10,000
Trade creditors 2,149,396 1,980,301
Amounts owed to group undertakings 5,204,969 3,877,255
Amounts owed to associates 124,039 757,123
Tax 808,175 -
Social security and other taxes 144,438 88,739
Other creditors 23,041 14,879
Directors' current accounts - 100,000
Accrued expenses 3,649,142 1,153,097
12,113,200 7,981,394

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 17) 18,333 28,333

17. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,000 10,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 18,333 28,333

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 225,000 301,990
Between one and five years 900,000 900,000
In more than five years 562,500 675,000
1,687,500 1,876,990

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 48,723 18,501

Deferred
tax
£   
Balance at 1 January 2023 18,501
Provided during year 30,222
Balance at 31 December 2023 48,723

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
182,000 A Ordinary 1 182,000 182,000
18,000 B Ordinary 1 18,000 18,000
200,000 200,000

21. RESERVES
Retained
earnings
£   

At 1 January 2023 2,401,958
Profit for the year 2,851,359
Dividends (2,800,000 )
At 31 December 2023 2,453,317

22. RELATED PARTY DISCLOSURES

ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


Entities that provide key management personnel services to the entity

During the year under review, a loan from Polson Properties Limited a company controlled by A Polson, in the amount of £500k was repaid in full. Polson Properties Limited is the landlord for the properties leased by the company. In the year under review rent of £185k was incurred (2022 - £181k). All such transactions are carried out at arms length and on market terms.

23. ULTIMATE CONTROLLING PARTY

The controlling party is Enerquip Group Limited.

The ultimate controlling party is the directors.

24. RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit for the financial year 2,851,359 2,493,458
Depreciation charges 70,608 34,672
Loss on disposal of fixed assets - 5,097
Loss/(gain) on revaluation of fixed assets 29 (85 )
Finance costs 30,296 1,101
Finance income (6,341 ) (201 )
Taxation 926,509 (72,580 )
3,872,460 2,461,462
Increase in stocks (299,430 ) (177,079 )
Increase in trade and other debtors (3,893,707 ) (4,910,143 )
Increase in trade and other creditors 2,729,001 2,327,567
Cash generated from operations 2,408,324 (298,193 )

25. 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 1,094,802 1,475,193
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 1,475,193 913,964


ENERQUIP LIMITED (REGISTERED NUMBER: SC429928)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


26. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 1,475,193 (380,391 ) 1,094,802
1,475,193 (380,391 ) 1,094,802
Debt
Debts falling due within 1 year (10,000 ) - (10,000 )
Debts falling due after 1 year (28,333 ) 10,000 (18,333 )
(38,333 ) 10,000 (28,333 )
Total 1,436,860 (370,391 ) 1,066,469