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Registration number: 04047142

GPS Marine Contractors Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

Brebners
Chartered Accountants & Statutory Auditor
1 Suffolk Way
Sevenoaks
Kent
TN13 1YL

 

GPS Marine Contractors Limited

Contents

Company Information

1

Strategic Report

2 to 6

Directors' Report

7

Statement of Directors' Responsibilities

8

Independent Auditor's Report

9 to 11

Statement of Income and Retained Earnings

12

Statement of Financial Position

13

Notes to the Financial Statements

14 to 23

 

GPS Marine Contractors Limited

Company Information

Directors

J B Spencer

G J Spencer

D J J Spencer

J F G Spencer

Registered office

GPS Marine House
Upnor Road
Lower Upnor
Rochester
Kent
ME2 4UY

Auditor

Brebners
Chartered Accountants & Statutory Auditor
1 Suffolk Way
Sevenoaks
TN13 1YL

 

GPS Marine Contractors Limited

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the company is that of marine towage, dredging and marine and civil engineering.

Fair review of the business

The directors present their strategic report for the year ended 31 December 2023.
REVIEW OF THE BUSINESS

GPS Marine Contractors Limited remained the principal operating company of the Group during financial year 2023 and operations on the Rivers Thames with Medway formed the largest part of the business by turnover.

During 2023 the A C Bennett fleet and the contracts held by A C Bennett & Sons Ltd were integrated with the GPS Marine fleet and GPS Marine operations, albeit that 2 contracts continued to be nominally performed by Alan C Bennett & Sons Limited, but were, in fact, performed by GPS Marine Contractors Limited. The tug GPS Arcadia, formally the “Christian” within the A C Bennett fleet, finally returned to service in July 2023 following extensive repairs, modifications, and completion of the majority of the work required for special survey, which technically fell due in April 2024.

During 2023 the additional business delivered through the acquisition of Alan C Bennett & Sons Ltd proved very useful in maintaining utilisation levels in the river fleet during the periods when there was little or no work from the Silvertown Tunnel Project and this firmly cemented GPS Marine’s position as the largest multi-cargo barge transport contractor on the Thames and Medway.

The tonnage of cargo carried on the Thames and Medway during 2023 was substantially greater than in 2022, at just over 1,253,000 tonnes, during the year the tonnage of cargo from major projects was about the same as in 2022, but the tonnage of cargo from long term business was markedly more. GPS Marine Contractors Limited continued to be involved the Tideway Tunnel Project during 2023, but at hugely reduced levels of activity compared with previous years. During 2023 various elements of the river Thames fleet were from time to time laid up as demand for the services provided by the business fluctuated.

In 2017 and 2018 many special and docking surveys were brought forward to ensure craft availability through the Tideway contract. Although some effects of this were felt in 2022, the consequences of this were much more acutely felt during 2023 as the barges built in 2017 and 2018 and many more craft with 5 and 6 year survey cycles started to come to the end of their cycles and major surveys had to be undertaken, involving a constant stream of dockings.

GPS Marine Contractors Limited’s construction activity ceased during 2021, and all construction activity in 2023 was undertaken by the GPS Marine and Civil Services Ltd joint venture.

Dredging activity in 2023 was restricted to a single campaign at Purfleet which was again successful and made a positive contribution to the year’s result.

The workboat market continued to improve during 2023 such that, despite the GPS Avenger undergoing special survey for 46 days during the year, average utilisation of the group’s workboats was just over 80%. In addition, rates continued to firm, further improving the viability of the group’s small fleet of workboats.

Utilisation of the GPS Marine fleet of pontoon barges improved significantly during 2023 to an average of 77% with rates similar to those being achieved during 2022.

 

GPS Marine Contractors Limited

Strategic Report for the Year Ended 31 December 2023

RESULTS AND PERFORMANCE

Turnover in 2023 has increased, partly due to activity arising from the Silvertown Link project. Profit has fallen due to the periodic repair schedule for the vessels which has resulted in them spending part of the year in dry dock. Turnover, at £14.6M was up by 12.5% on 2022 and profit before tax fell by £125K. The Company’s financial performance in 2023 was boosted by the Silvertown project in the first half of the year but when this finished turnover reduced in the second half which was compounded by the repair schedule resulting in a lower overall profit then in 2022.

During 2023, shareholders’ funds increased from £1.9 M to £2.4 M.
 

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

14,618,572

12,776,400

Gross Profit Percentage

%

16

17

Return on capital employed

%

25

38

The company seeks to ensure that responsible business practice is fully integrated into the management of all its operations and into the culture of all its operations and into the culture of all parts of its business. It believes the the consistent adoption of reasonable business practice is essential for operational excellence and maintain compliance within the industry sector which in turn ensures the delivery of its core objectives of sustained profitability.

The directors consider there are collectively numerous non-financial performance indicators but that individually none are key.

 

GPS Marine Contractors Limited

Strategic Report for the Year Ended 31 December 2023

Principal risks and uncertainties

The business has established itself as the largest operator of tugs and barges on the Thames and Medway, and its position as the most diverse and capable marine contractor on the Thames and Medway is strengthened by the vastly improved construction sector offering through its interest in, and the continued development of GPS Marine and Civil Services Ltd. Because of the continued development of GPS Marine and Civil Services Ltd, it has begun to become an important charterer of craft operated by GPS Marine Contractors Ltd. During 2023 the contract for the transport of spoil from the Silvertown Tunnel Project was completed, but no major projects, other than the Lower Thames Crossing, are the horizon, and it is unlikely that this project will deliver a significant amount of business for GPS Marine Contractors.

Continually rising interest rates during in 2023 saw interest payments relative to vessel financing in December almost identical to those in January, despite debt being reduced by £750,000.

The looming general election in 2024 seemed to dampen the appetite for investment in the UK during 2023 which seems to have weighed on demand across the economy. The absence of any major projects that are likely to make use of river transport on the Thames and Medway is a concern for future growth, but is a vindication of the decision to increase long term business through the acquisition of Alan C Bennett & sons Ltd.

Despite some major employers trying to make their employees return to the office, home working continues to keep footfall in London low, and this continued to suppress construction and demolition markets in the capital during 2023. Historically, GPS Marine has benefitted from major projects associated with the commercial development of riparian sites and public investment in new infrastructure. Any reduction in major project activity makes the development of long-term business more important for the company going forward.

The risks first highlighted in the 2017 strategic report relating to difficulties in increasing long term freight business on the Thames and the business having too few clients persist despite the new clients and business generated through the purchase of Alan C Bennett & Sons Ltd, although the prospect of two wharves being reactivated by companies that want to work with GPS Marine from 2024 / 2025 gives some cause for optimism.

The longer that the BoE maintains base rate at 5.25% prolongs the financial strain imposed on business, which means that client credit continues to be a significant concern, especially given credit insurers reluctance to insure significant players in the construction sector. The directors continue to note a tendency amongst smaller suppliers not to give credit and for most suppliers to be working on ever tighter credit terms. Clients continue to stretch or simply ignore agreed payment terms and demand ever longer credit terms. These factors are an obvious consequence of the pressures facing the economy, but their effect is to squeeze cash flow, which creates risk for the business.

 

GPS Marine Contractors Limited

Strategic Report for the Year Ended 31 December 2023

FINANCIAL INSTRUMENTS

Price Risk, Credit Risk, Liquidity Risk and Cash Flow Risk.

During 2023, rates charged for the services provided by the company in the Thames and Medway have remained stable but, even so, the effect of reduced fuel prices has countered cost increases due to inflation. The main emphasis during 2023 was to keep utilisation levels of operational vessels high and, despite some craft being laid up for periods during the year, utilisation levels in 2023, were above expectations, and higher than in 2022.

Levels of utilisation in the offshore and project support sector outside the UK were much improved during 2023 than in 2022 and rates continued to strengthen, possibly due to the effect of increased demand and some older tonnage being sold out of the NW European market.

Credit risk was significant in 2023 due to inflation and high interest rates. In October 2023 Green Biofuels Ltd went into administration with huge debts to HMRC that determined that unsecured creditors would receive nothing from the administration process and, as a result, GPS Marine Contractors Limited suffered a net loss of £417,000. Because the debt had been built up over a long period the loss had negligible effect on the operation of the business or cash flow. Some suppliers ceased trading during the year, and a further £150,000 was written off in respect of a claim against a client for bottom damage to some barges that will not be settled. Because of the increased cost of credit insurance, and a clear reluctance by insurers to insure businesses in the construction, demolition and maritime sectors the directors determined that it no longer benefitted the business to pay for credit insurance to mitigate the risk of clients failing to pay valid invoices, and instead more reliance is being placed on the credit ratings of clients and Freight Demurrage and Defence insurance which is provided by GPS Marine Contractors Limited’s P&I Club

Liquidity risk was greater in 2023 due to tight fiscal policy, a stagnant economy and persistent (but slowly falling) inflation which combined caused clients to continue to take longer to pay their bills. It is anticipated that while non-payment and late payment will continue to constitute significant risks to liquidity during 2024, lower inflation and an eventual easing of fiscal policy may reduce these risks somewhat by the end of 2024.
The directors maintained total independence from the major aggregate and building materials clients during 2023 and intend to continue to do so throughout 2024. With no major contract work in sight, the emphasis in 2024 will be on maintaining and developing established long-term contracts, developing new long term freight business with both new and existing strategic partners. As was the case in 2023, and has been since 2017, in 2024 all non-Thames specific equipment will continue to be traded through the Landfall Marine Contractors BV pool structure to ensure maximum diversity across different projects, markets and types of business, to manage the risks outlined above and minimise their effects. This strategy is crucial to positioning the business well for 2025 and beyond, when all current and known major project work eventually ceases.
 

BUSINESS ENVIRONMENT

With the exception of the short period of higher activity during north bound tunnelling on the Silvertown Link Project, in 2024 the river Thames micro-economy, where the Company carries out most of its activity, continues to be much as it was during 2023. The directors are confident that underlying freight volumes will hold up during 2024 and 2025 and may be added to by new long term business that is likely to emanate from the two safeguarded wharves that clients hope to reactivate in 2024 / 5. Dredging activity is expected to continue to be subdued during 2024 and 2025, and is unlikely to pick up unless the regulatory regime is relaxed and dredgings disposal costs reduce.

The directors expect that the market for workboats and pontoons in the offshore wind, dredging and marine construction sectors outside the core Thames / Medway market will remain firm in 2024 and 2025. The distance towage market in early 2024 has been robust, continuing a trend first seen in 2021
 

 

GPS Marine Contractors Limited

Strategic Report for the Year Ended 31 December 2023

STRATEGY

The directors will continue to focus on increasing core, long term business on the Thames and Medway will and existing relationships and new strategic partnerships. As deemed necessary elements of the existing fleet will be modified to better meet known future demand and to develop opportunities in light freight and in the European inland market.

The firm market for offshore workboats and pontoons will be a focus for development. While it is unlikely that the workboat fleet will be expanded, it may be improved with the introduction of newer and larger craft. As a hedge against rapid decarbonisation of the small ship sector, and to protect the business against labour shortages and increasing labour regulation the directors intend to focus on the development of the pontoon fleet, which can be exploited both through the Landfall pool and the activities of GPS Marine and Civil Services Ltd.

The directors will continue to work collaboratively with Landfall Marine Contractors BV as this approach has delivered positive results for the company’s workboat and pontoon fleets by providing good access to European maritime markets.

LRN Engineering, a fellow subsidiary company has enhanced the ability of GPS Marine to service its own fleet and maintain high levels of operational reliability.
 

FUTURE DEVELOPMENTS

Through working collaboratively with new and established cargo interests, the development of new freight flows from safeguarded wharves on the Thames remains a long-term aim and focus of attention and effort. The directors will continue to work to develop long term sustainable business and to develop any major project opportunities that arise. The business will also seek to take full advantage of improvements in the offshore market for workboats and pontoons.

Efforts will continue to broaden the business’ core income streams and to reduce dependence on major projects, which are likely to be few and far between in the coming 3 - 5 years. The business will aim to further strengthen and consolidate its position in the Thames, while simultaneously continuing to develop its involvement with EU markets through the relationship with Landfall Marine Contractors BV and its construction offering through GPS Marine and Civil Services Ltd.
 

Approved by the Board on 25 September 2024 and signed on its behalf by:

.........................................
J B Spencer
Director

 

GPS Marine Contractors Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors of the company

The directors who held office during the year were as follows:

J B Spencer

G J Spencer

D J J Spencer

J F G Spencer

Dividends

No interim dividends were declared or paid in the year. No final dividend is proposed.

Directors' liabilities

The company maintains Directors and officers liability insurance for directors and officers as permitted by sector 233 of the Companies Act 2006.
 

Disclosure of information in the strategic report

The business review and financial risk management policies have been reported in Strategic Report.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the director on 25 September 2024 and signed by:



 

.........................................
J B Spencer
Director

 

GPS Marine Contractors Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.

 

GPS Marine Contractors Limited

Independent Auditor's Report to the Members of GPS Marine Contractors Limited
for the Year Ended 31 December 2023

Opinion

We have audited the financial statements of GPS Marine Contractors Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, 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 profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

GPS Marine Contractors Limited

Independent Auditor's Report to the Members of GPS Marine Contractors Limited
for the Year Ended 31 December 2023

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 8), 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.

 

GPS Marine Contractors Limited

Independent Auditor's Report to the Members of GPS Marine Contractors Limited
for the Year Ended 31 December 2023

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

Based on our understanding of the company and the maritime and civil engineering industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006) and UK corporate taxation laws and environmental legislation, health and safety legislation, anti-bribery legislation, data protection legislation, international maritime regulations. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.

We understood how the company is complying with relevant legislation by making enquiries of management and those responsible for legal and compliance procedures. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.

We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.

Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.

The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.

The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission, misrepresentation or forgery.

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 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.

......................................
Martin Widdowson (Senior Statutory Auditor)
For and on behalf of

Brebners, Statutory Auditor
1 Suffolk Way
Sevenoaks
TN13 1YL

25 September 2024

 

GPS Marine Contractors Limited

Statement of Income and Retained Earnings for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

14,618,572

12,776,400

Cost of sales

 

(12,295,026)

(10,586,357)

Gross profit

 

2,323,546

2,190,043

Administrative expenses

 

(1,801,241)

(1,486,651)

Other operating income

4

74,294

25,081

Operating profit

6

596,599

728,473

Interest payable and similar charges

7

11

(97)

 

11

(97)

Profit before tax

 

596,610

728,376

Taxation

11

(132,258)

(81,351)

Profit for the financial year

 

464,352

647,025

Retained earnings brought forward

 

1,901,808

1,254,783

Retained earnings carried forward

 

2,366,160

1,901,808

 

GPS Marine Contractors Limited

Statement of Financial Position as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

12

205,549

196,344

Current assets

 

Stocks

13

207,587

119,619

Debtors

14

4,048,558

4,248,997

Cash at bank and in hand

 

511,449

332,122

 

4,767,594

4,700,738

Creditors: Amounts falling due within one year

16

(2,601,589)

(2,971,757)

Net current assets

 

2,166,005

1,728,981

Total assets less current liabilities

 

2,371,554

1,925,325

Provisions for liabilities

17

(5,295)

(23,418)

Net assets

 

2,366,259

1,901,907

Capital and reserves

 

Called up share capital

99

99

Retained earnings

2,366,160

1,901,808

Shareholders' funds

 

2,366,259

1,901,907

Approved and authorised by the Board on 25 September 2024 and signed on its behalf by:

 

......................................................................

J B Spencer

Director

Company registration number: 04047142

 

GPS Marine Contractors Limited

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

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
GPS Marine House
Upnor Road
Lower Upnor
Rochester
Kent
ME2 4UY

The principal activity of the company is that of marine towage, dredging and marine and civil engineering.

2

Accounting policies

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Summary of disclosure exemptions

The company has taken advantage of the disclosure exemption from requirements of section 7 permitted by FRS 102 not to prepare a statement of cash flows.

Going concern

The company had net assets at 31 December 2023 of £2,462,992 and cash at bank £511,449.

The company's management accounts show the company has continued to trade profitably subsequent to 31 December 2023 and the forecasts prepared by the director's demonstrate that the company has sufficient working capital for a period exceeding 12 months from the date of approval of the financial statements.

On the basis of the above and after making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the director continues to adopt the going concern basis in preparing the financial statements.

 

GPS Marine Contractors Limited

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

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:
 

Revenue recognition

Revenue is recognised in the period that work is undertaken and is determined by the contract agreed with each customer, excluding sales taxes. This is based on the tonnage of waste transported in the given period or the work undertaken in the period as determined by the underlying contract.

Tax

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% reducing balance

Furniture, fittings and equipment

25% reducing balance

Motor vehicles

25% reducing balance

Leasehold improvement

Over the life of the lease

 

GPS Marine Contractors Limited

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

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Finance leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Assets held under hire purchase contracts are capitalised at the lesser of fair value or present value of minimum lease payments in the statement of financial position. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. A corresponding liability is recognised at the same value in the statement of financial position. The asset is then depreciated over its useful life.

The minimum lease payments are apportioned between the finance charge recognised in the income statement and the reduction of the outstanding liability using the effective interest method. The finance charge in each period is allocated so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

GPS Marine Contractors Limited

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

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2023
£

2022
£

Provision of services

14,618,572

12,776,400

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
 £

2022
 £

Management charge

49,755

-

Rent receivable

24,539

25,081

74,294

25,081

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2023
 £

2022
 £

Gain/loss on disposal of property, plant and equipment

(731)

499

6

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

56,922

65,454

Operating lease expense - plant and machinery

8,533

6,801

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

-

16

Interest on obligations under finance leases and hire purchase contracts

(150)

81

Interest expense on other finance liabilities

139

-

(11)

97

 

GPS Marine Contractors Limited

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

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

4,459,772

4,140,755

Social security costs

507,224

481,904

Pension costs, defined contribution scheme

75,183

73,100

Other employee expense

2,080

5,214

5,044,259

4,700,973

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Operations

65

70

Administration and support

12

9

Management

4

4

81

83

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

296,331

309,540

Contributions paid to money purchase schemes

3,746

3,917

300,077

313,457

During the year the number of directors who were receiving benefits was as follows:

2023
 No.

2022
 No.

Accruing benefits under money purchase pension scheme

4

4

In respect of the highest paid director:

2023
£

2022
£

Remuneration

83,949

84,290

10

Auditor's remuneration

2023
 £

2022
 £

Audit of the financial statements

10,000

10,000

 

GPS Marine Contractors Limited

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


 

11

Taxation

Tax charged/(credited) in the income statement

2023
£

2022
£

Current taxation

UK corporation tax

150,381

83,884

Deferred taxation

Arising from origination and reversal of timing differences

(18,123)

(2,533)

Tax expense in the income statement

132,258

81,351

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 23.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

596,610

728,376

Corporation tax at standard rate

140,203

138,391

Increase in UK and foreign current tax from adjustment for prior periods

-

83,884

Tax increase from effect of capital allowances and depreciation

9,213

8,131

Effect of expense not deductible in determining taxable profit (tax loss)

965

356

Tax decrease arising from group relief

-

(146,878)

Changes in deferred tax

(18,123)

(2,533)

Total tax charge

132,258

81,351

 

GPS Marine Contractors Limited

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

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Accelerated Capital allowances

5,295

5,295

2022

Liability
£

Accelerated Capital allowances

23,418

23,418

12

Tangible assets

Leasehold improvements
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2023

-

66,159

113,113

617,600

796,872

Additions

67,021

-

-

-

67,021

Disposals

-

-

(5,025)

-

(5,025)

At 31 December 2023

67,021

66,159

108,088

617,600

858,868

Depreciation

At 1 January 2023

-

57,072

89,725

453,731

600,528

Charge for the year

7,834

2,272

5,848

40,968

56,922

Eliminated on disposal

-

-

(4,131)

-

(4,131)

At 31 December 2023

7,834

59,344

91,442

494,699

653,319

Carrying amount

At 31 December 2023

59,187

6,815

16,646

122,901

205,549

At 31 December 2022

-

9,087

23,388

163,869

196,344

13

Stocks

2023
£

2022
£

Other inventories

207,587

119,619

 

GPS Marine Contractors Limited

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

14

Debtors

2023
£

2022
£

Trade debtors

 

2,248,698

2,108,827

Amounts owed by group undertakings

23

938,912

201,207

Other debtors

 

9,822

2,856

Prepayments

 

851,126

1,936,107

 

4,048,558

4,248,997

Trade debtors are stated after a provision for diminution in value of £708,533 (2022: £13,786)

15

Cash and cash equivalents

2023
£

2022
£

Cash at bank

511,449

332,122

Bank overdrafts

(192)

(15,397)

Total

511,257

316,725

16

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

20

192

15,397

Trade creditors

 

1,660,425

1,333,618

Amounts due to group undertakings

23

411,042

996,990

Social security and other taxes

 

280,724

206,793

Other payables

 

25,540

294,098

Accruals

 

223,666

124,861

 

2,601,589

2,971,757

17

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

23,418

23,418

Increase (decrease) in existing provisions

(18,123)

(18,123)

At 31 December 2023

5,295

5,295

 

GPS Marine Contractors Limited

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

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £75,183 (2022 - £73,100).

19

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary Shares of £1 each

99

99

99

99

       

There are no restrictions on the distribution of dividends or the repayment of capital.

20

Loans and borrowings

Current loans and borrowings

2023
£

2022
£

Bank overdrafts

192

15,397

Bank overdrafts are secured by a fixed and floating charge over the assets and undertakings of the company and a right of set of against cost of bank.

21

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

204,453

139,657

Later than one year and not later than five years

335,605

313,928

Later than five years

27,417

74,417

567,475

528,002

The amount of non-cancellable operating lease payments recognised as an expense during the year was £285,500 (2022 - £194,344).

 

GPS Marine Contractors Limited

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

22

Financial guarantee contracts

The company has a guaranteed third party loans amounting to £941,000 (2022: £941,000). The guarantees are supported by a fixed and floating charge over the assets and undertakings of the company.

23

Related party transactions

The company has taken advantage of FRS 102 paragraph 33.1A not to disclosure transactions or amounts falling due with wholly owned undertakings.

During the year aggregate purchases of £407,559 (2202: £467,782) were made from companies over which various directors and their close family exert significant influence. At 31 December 2023 an amount of £58,129 (2022: £109,158) was due by Marine Contractors Limited.

24

Ultimate Parent company

The company is a wholly owned subsidiary of GPS Holdings Limited, which is also the ultimate parent undertaking and is the parent of the smallest and largest group preparing group accounts incorporating the results of the company. The registered address of GPS Marine Holdings Limited is GPS Marine House, Upnor Road, Lower Upnor, Rochester, Kent ME2 4UY.

25

Control

Ultimate control vests with Mr J B Spencer.