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Registration number: 06467166

G.P.S Marine Holdings Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

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

 

G.P.S Marine Holdings 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

Consolidated Income Statement

12

Consolidated Statement of Comprehensive Income

13

Consolidated Statement of Financial Position

14

Statement of Financial Position

15

Consolidated Statement of Changes in Equity

16

Statement of Changes in Equity

17

Consolidated Statement of Cash Flows

18

Notes to the Financial Statements

19 to 37

 

G.P.S Marine Holdings Limited

Company Information

Directors

J B Spencer

G J Spencer

D J J Spencer

J F G Spencer

Company secretary

J B Spencer

Registered office

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

Auditor

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

 

G.P.S Marine Holdings 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 group is that of marine towage, dredging and marine and civil engineering.

Fair review of the business

GPS Marine Contractors Ltd remained the principal operating company of the Group during financial year 2023 and operations on the Rivers Thames and 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 Ltd, but were, in fact, performed by GPS Marine Contractors Ltd. 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 with cargo from long term business was markedly more. GPS Marine Contractors Ltd 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, with a resulting seriously elevated amount of repair, maintenance and modification work having to be undertaken for the craft to be able to work beyond 2023. While much of this expenditure has been capitalised and will be written off over the coming survey cycles, a significant proportion of these costs has been taken to the P&L account. A similar situation will prevail into 2024 as craft on 6 year survey cycles that were last surveyed in 2018 fall due for major survey.

GPS Marine Contractors Ltd.’s construction activity ceased during 2021, and all construction activity in 2023 was undertaken by the GPS Marine and Civil Services Ltd joint venture. During 2022 GPS Marine Holdings Ltd reduced its shareholding in GPS Marine and Civil Services Ltd by 10% to 40% to facilitate bringing a specialist civil engineering commercial director into the business as a minority shareholder. During 2023 GPS Marine and Civil Services Ltd managed to grow its turnover to £9.5m and delivered a profit margin of 28%. GPS Marine and Civil Services Ltd.’s result will be brought into the consolidated accounts at its shareholding of 40%.


 

G.P.S Marine Holdings Limited

Strategic Report for the Year Ended 31 December 2023

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.

The two Dutch subsidiaries that were set up during 2018, continued to serve to provide access to the European market during 2023, whilst only trading with GPS Marine Contractors Ltd, as had originally been envisaged. The subsidiaries were profitable, albeit that profits in these subsidiaries were effectively generated through the trading activities of GPS Marine Contractors Ltd.

LRN Engineering operated from the main GPS Marine premises at Upnor during 2023 but due to restructuring at one of its major clients the company undertook less work than in previous years and produced a loss of just under £24,500 on turnover of just under £182,000.

 

RESULTS AND PERFORMANCE

Turnover during 2023 increased from 2022 levels, due to activity arising from the Silvertown Link project. Turnover, at £14.8M was up by 13.3% on 2022. However, profit before tax fell to £150k from £2m last year. The Group’s financial performance in 2023 was fine until the end of the Silvertown project. After the project and with no new project to move on to the vessels then underwent the then due special survey. This took several vessels out of revenue streams whilst this work was undertaken. Additionally the group suffered a substantial bad debt in the year of £417,388 due to Green Biofuels going into administration.

During 2023, shareholders’ funds decreased to £14.08M from £14.32M a year earlier. Total debt decreased to £3,48M from £4,18M in 2022 as full year of repayments has occurred with no new loans having been taken out.

 

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

Financial KPIs

Unit

2023

2022

Turnover

£ 000

14.79

13.05

Gross profit

%

22.11

23.73

Return on Capital employed

%

(.88)

15.25

Non-financial KPIs

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

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

 

G.P.S Marine Holdings 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.

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.

 

G.P.S Marine Holdings 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 Ltd 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 Ltd.’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.
 

KEY PERFORMANCE INDICATORS

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.

 

 

G.P.S Marine Holdings 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 Limited.

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.

Improved marketing efforts for LRN Engineering Ltd, both direct to potential clients and by setting up and developing a website for the business, combined with a better outlook from its main customers is hoped to return LRN Engineering to profitability in 2024. Moving forward, with further investment by GPS Marine in its workshops at Upnor, with a view to putting them at the disposal of LRN Engineering, it is anticipated that LRN’s capabilities will be significantly enhanced. Notwithstanding its financial performance, LRN Engineering 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
Company secretary and director

 

G.P.S Marine Holdings Limited

Directors' Report for the Year Ended 31 December 2023

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

Directors of the group

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

During the year the company declared and paid interim dividends of £270,000 (2022: £360,000). No final dividend is proposed.

Directors' liabilities

The group maintains Directors' and Officers' liability insurance for Directors and Officers as permitted by section 233 of the Companies Act 2006.

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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Disclosure of information in the strategic report

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

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

.........................................
J B Spencer
Company secretary and director

 

G.P.S Marine Holdings 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 group and the company and of the profit or loss of the group 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

 

G.P.S Marine Holdings Limited

Independent Auditor's Report to the Members of
G.P.S Marine Holdings Limited

Opinion

We have audited the financial statements of G.P.S Marine Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 group's and the company's affairs as at 31 December 2023 and of the group's 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group'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.

 

G.P.S Marine Holdings Limited

Independent Auditor's Report to the Members of
G.P.S Marine Holdings Limited

Opinion on other matter 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company 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 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.

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 Group and the 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), UK corporate taxation laws, environmental legislation, health and safety legislation, anti-bribery legislation, data protection legislation, UK and international maritime regulations including SOLAS, MARPOL regulations and international Hazardous Materials Convention . These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.

 

G.P.S Marine Holdings Limited

Independent Auditor's Report to the Members of
G.P.S Marine Holdings Limited

We understood how the Group is complying with relevant legislation by making enquiries of management. 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

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 auditor's report.

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
Kent
TN13 1YL

25 September 2024

 

G.P.S Marine Holdings Limited

Consolidated Income Statement for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

14,793,512

13,045,862

Cost of sales

 

(11,522,114)

(9,950,571)

Gross profit

 

3,271,398

3,095,291

Administrative expenses

 

(3,341,334)

(1,530,502)

Other operating income

4

78,486

25,081

Operating profit

6

8,550

1,589,870

Income from shares in associate undertaking

 

349,600

419,747

Other interest receivable and similar income

1,765

-

Interest payable and similar expenses

7

(328,562)

(156,402)

   

22,803

263,345

Profit before tax

 

31,353

1,853,215

Tax on profit

11

(154,311)

(614,536)

(Loss)/profit for the financial year

 

(122,958)

1,238,679

Profit/(loss) attributable to:

 

Owners of the company

 

(116,121)

1,221,471

Minority interests

 

(6,837)

17,208

 

(122,958)

1,238,679

 

G.P.S Marine Holdings Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

(Loss)/profit for the year

(122,958)

1,238,679

Foreign currency translation gains/(losses)

156,565

(407,852)

Total comprehensive income for the year

33,607

830,827

Total comprehensive income attributable to:

Owners of the company

40,444

813,619

Minority interests

(6,837)

17,208

33,607

830,827

 

G.P.S Marine Holdings Limited

Consolidated Statement of Financial Position as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

139,466

339,151

Tangible assets

13

15,088,418

15,224,138

Investments

14

719,395

429,794

 

15,947,279

15,993,083

Current assets

 

Stocks

15

218,076

136,611

Debtors

16

3,382,134

4,346,649

Cash at bank and in hand

 

1,462,653

1,381,849

 

5,062,863

5,865,109

Creditors: Amounts falling due within one year

18

(3,087,089)

(3,334,625)

Net current assets

 

1,975,774

2,530,484

Total assets less current liabilities

 

17,923,053

18,523,567

Creditors: Amounts falling due after more than one year

18

(2,826,967)

(3,322,551)

Provisions for liabilities

19

(1,014,286)

(882,823)

Net assets

 

14,081,800

14,318,193

Capital and reserves

 

Called up share capital

21

199

199

Revaluation reserve

1,033,343

1,033,343

Retained earnings

13,037,887

13,267,443

Equity attributable to owners of the company

 

14,071,429

14,300,985

Minority interests

 

10,371

17,208

Shareholders' funds

 

14,081,800

14,318,193

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

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

J B Spencer
Company secretary and director

Company registration number: 06467166

 

G.P.S Marine Holdings Limited

Statement of Financial Position as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

13

5,965,618

5,569,036

Investments

14

827,056

827,056

 

6,792,674

6,396,092

Current assets

 

Debtors

16

8,184,479

9,522,816

Cash at bank and in hand

 

697,250

845,166

 

8,881,729

10,367,982

Creditors: Amounts falling due within one year

18

(1,582,925)

(1,435,792)

Net current assets

 

7,298,804

8,932,190

Total assets less current liabilities

 

14,091,478

15,328,282

Creditors: Amounts falling due after more than one year

18

(2,822,708)

(3,313,847)

Provisions for liabilities

19

(1,835,442)

(1,680,957)

Net assets

 

9,433,328

10,333,478

Capital and reserves

 

Called up share capital

21

199

199

Revaluation reserve

1,033,343

1,033,343

Retained earnings

8,399,786

9,299,936

Shareholders' funds

 

9,433,328

10,333,478

The company made a loss after tax for the financial year of £630,150 (2022 - profit of £375,994).

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

.........................................
J B Spencer
Company secretary and director

Company registration number: 06467166

 

G.P.S Marine Holdings Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

Non- controlling interests
£

Total equity
£

At 1 January 2023

199

1,033,343

13,267,443

14,300,985

17,208

14,318,193

Loss for the year

-

-

(116,121)

(116,121)

(6,837)

(122,958)

Other comprehensive income

-

-

156,565

156,565

-

156,565

Total comprehensive income

-

-

40,444

40,444

(6,837)

33,607

Dividends

-

-

(270,000)

(270,000)

-

(270,000)

At 31 December 2023

199

1,033,343

13,037,887

14,071,429

10,371

14,081,800

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

Non- controlling interests
£

Total equity
£

At 1 January 2022

199

1,033,343

12,796,117

13,829,659

-

13,829,659

Profit for the year

-

-

1,221,471

1,221,471

17,208

1,238,679

Other comprehensive income

-

-

(407,852)

(407,852)

-

(407,852)

Total comprehensive income

-

-

813,619

813,619

17,208

830,827

Dividends

-

-

(360,000)

(360,000)

-

(360,000)

Acquisition of non-controlling interest, increase in equity

-

-

17,707

17,707

-

17,707

At 31 December 2022

199

1,033,343

13,267,443

14,300,985

17,208

14,318,193

 

G.P.S Marine Holdings Limited

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

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 January 2023

199

1,033,343

9,299,936

10,333,478

Loss for the year

-

-

(630,150)

(630,150)

Dividends

-

-

(270,000)

(270,000)

At 31 December 2023

199

1,033,343

8,399,786

9,433,328

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 January 2022

199

1,033,343

9,283,942

10,317,484

Profit for the year

-

-

375,994

375,994

Dividends

-

-

(360,000)

(360,000)

At 31 December 2022

199

1,033,343

9,299,936

10,333,478

 

G.P.S Marine Holdings Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

(Loss)/profit for the year

 

(122,958)

1,238,679

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

1,334,967

1,028,869

Foreign exchange difference in consolidation

156,565

(408,905)

Loss/(profit) on disposal of tangible assets

5

60,362

(678,533)

Loss from sales of investment properties

5

-

116,262

Loss from disposals of investments

5

-

20,012

Finance income

(1,765)

-

Finance costs

328,562

156,402

Income from associates

 

(349,600)

(419,747)

Income tax expense

11

154,311

614,536

 

1,560,444

1,667,575

Working capital adjustments

 

Increase in stocks

 

(81,465)

(14,002)

Decrease/(increase) in trade and other debtors

 

964,515

(1,672,440)

(Decrease)/increase in trade and other creditors

 

(50,969)

838,410

Cash generated from operations

 

2,392,525

819,543

Income taxes paid

 

-

(374,800)

Net cash flow from operating activities

 

2,392,525

444,743

Cash flows from investing activities

 

Interest received

1,765

-

Acquisition of subsidiaries

 

-

(716,215)

Acquisitions of tangible assets

(1,069,087)

(2,351,058)

Proceeds from sale of tangible assets

 

9,163

920,104

Dividend from associate

 

60,000

70,000

Net cash flows from investing activities

 

(998,159)

(2,077,169)

Cash flows from financing activities

 

Interest paid

(328,562)

(156,402)

Proceeds from bank borrowing draw downs

 

(788,673)

1,409,858

Receipts from finance lease debtors

 

134,734

-

Payments to finance lease creditors

 

(45,856)

(47,323)

Dividends paid

(270,000)

(360,000)

Net cash flows from financing activities

 

(1,298,357)

846,133

Net increase/(decrease) in cash and cash equivalents

 

96,009

(786,293)

Cash and cash equivalents at 1 January 2023

 

1,366,452

2,152,745

Cash and cash equivalents at 31 December 2023

 

1,462,461

1,366,452

 

G.P.S Marine Holdings 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 group 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.

 

G.P.S Marine Holdings Limited

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

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December each year.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Income Statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The group made a loss for the year ended 31 December 2023 of £122,958 but had net assets of £14,081,800 including cash at bank of £1,462,653 at that date.

The group traded profitably during the year and continues to do so in the current year. The group has strong cash reserves and retained earnings. The directors anticipate continuing profitability in the coming year.

The directors are of the opinion that the group has sufficient working capital to ensure that the group can meet its liabilities as they fall due, and as such the directors believe that the group will be able to continue to meet its financial obligations, as and when they fall due. Therefore the financial statements have been prepared on the going concern basis.

Revenue recognition

Revenue represents the fair value of amounts received and receivable for services provided net of discounts, rebates and value added tax.Turnover is recognised in the period that work is undertaken and is determined by the contract agreed with each customer. This is based on the tonnage of waste transported in the given period or other work undertaken in the period as determined by the underlying contract.

 

G.P.S Marine Holdings Limited

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

Government grants

Grants relating to revenue are recognised in profit and loss on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

Capital grants are recognised using the accrual method with the amount of the grant included with liabilities and released to profit and loss over the life of the asset for which the grant was provided.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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 group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated 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. Vessel surveys are capitalised as incurred except where they are relating to routine repairs and maintenance.

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

Furniture, fittings and equipment

25% Reducing balance

Motor vehicles

25% Reducing balance

Plant, machinery and vessels

5% straight line and 15% to 25% reducing balance

Freehold Buildings

2% Straight line

Leasehold Improvements

Over the life of the lease

 

G.P.S Marine Holdings Limited

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

Vessel survey costs / dry docking

Over 5 to 6 years

The directors consider the residual value of freehold buildings to be such that no depreciation charge arises.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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.

 

G.P.S Marine Holdings Limited

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

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 group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.

Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.

 

G.P.S Marine Holdings Limited

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

3

Turnover

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

2023
£

2022
£

Provision of services

14,793,512

13,045,862

The analysis of the group's turnover for the year by market is as follows:

2023
£

2022
£

UK

12,485,345

10,491,904

Europe

2,308,167

2,553,958

14,793,512

13,045,862

4

Other operating income

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

2023
£

2022
£

Management charges

49,755

-

Rent receivable

28,731

25,081

78,486

25,081

5

Other gains and losses

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

2023
£

2022
£

(Loss)/gain on disposal of tangible assets

(60,362)

678,533

Loss from disposals of subsidiaries and associates

-

(20,012)

(60,362)

658,521

 

G.P.S Marine Holdings Limited

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

6

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

1,135,282

925,424

Amortisation expense

199,685

103,445

Foreign exchange losses/(gains)

161,415

(437,512)

Operating lease expense - plant and machinery

8,533

6,801

Loss/(profit) on disposal of property, plant and equipment

60,362

(678,533)

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

313,877

151,322

Interest on obligations under finance leases and hire purchase contracts

14,546

5,080

Interest expense on other finance liabilities

139

-

328,562

156,402

8

Staff costs

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

2023
£

2022
£

Wages and salaries

4,532,160

4,287,960

Social security costs

507,224

488,561

Pension costs, defined contribution scheme

77,271

72,825

Other employee expense

2,080

5,214

5,118,735

4,854,560

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

2023
No.

2022
No.

Operations staff

69

69

Administration and support

12

11

Directors

4

4

85

84

 

G.P.S Marine Holdings Limited

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

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Directors' remuneration administration

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

82,628

93,014

Company contributions to money purchase pension schemes

1,321

1,276

10

Auditor's remuneration

2023
£

2022
£

Audit of these financial statements

2,500

2,500

Audit of the financial statements of subsidiaries

12,000

12,000

14,500

14,500


 

Non audit fees payable to auditors
 

2023
£

2022
£

Value of benefits in kind for accountancy services

2,000

2,000

 

G.P.S Marine Holdings Limited

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

11

Taxation

Tax charged/(credited) in the consolidated income statement

2023
£

2022
£

Current taxation

UK corporation tax

22,848

95,026

Deferred taxation

Arising from origination and reversal of timing differences

131,463

519,510

Tax expense in the income statement

154,311

614,536

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher 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

31,353

1,853,215

Corporation tax at standard rate

7,368

352,111

Effect of revenues exempt from taxation

966

68

Deferred tax expense relating to changes in tax rates or laws

5,661

-

Deferred tax expense from unrecognised temporary difference from a prior period

131,463

519,510

Tax decrease from effect of capital allowances and depreciation

(79,451)

(352,644)

Tax increase from effect of unrelieved tax losses carried forward

134,142

79,502

Effect of associate profit recorded net of tax

(68,056)

(79,752)

Tax increase arising from overseas tax suffered/expensed

22,218

11,857

Effect of HMRC Settlement

-

83,884

Total tax charge

154,311

614,536

 

G.P.S Marine Holdings Limited

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

Deferred tax

Group

Deferred tax provision comprises

2023

Provision
£

Accelerated capital allowances

720,094

Revaluation of Freehold property

281,220

1,001,314

2022

Provision
£

Accelerated capital allowances

601,603

Revaluation of Freehold property

281,220

882,823

12

Intangible assets

Group

Goodwill on acquisition
 £

Cost or valuation

At 1 January 2023

442,596

At 31 December 2023

442,596

Amortisation

At 1 January 2023

103,445

Amortisation charge

199,685

At 31 December 2023

303,130

Carrying amount

At 31 December 2023

139,466

At 31 December 2022

339,151

 

G.P.S Marine Holdings Limited

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

13

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant, machinery and vessels
£

Total
£

Cost or valuation

At 1 January 2023

2,775,000

66,159

113,113

17,962,159

20,916,431

Additions

67,021

-

-

1,002,066

1,069,087

Disposals

-

-

(5,025)

(98,547)

(103,572)

At 31 December 2023

2,842,021

66,159

108,088

18,865,678

21,881,946

Depreciation

At 1 January 2023

-

57,072

89,725

5,545,496

5,692,293

Charge for the year

7,834

2,272

5,848

1,119,328

1,135,282

Eliminated on disposal

-

-

(4,131)

(29,916)

(34,047)

At 31 December 2023

7,834

59,344

91,442

6,634,908

6,793,528

Carrying amount

At 31 December 2023

2,834,187

6,815

16,646

12,230,770

15,088,418

At 31 December 2022

2,775,000

9,087

23,388

12,416,663

15,224,138

Freehold property is included at a revalued amount as estimated by the directors amounting to £2,775,000 based upon a professional valuation obtained in March 2022 which the directors believe to be appropriate at 31 December 2023. If the freehold property were included under the historic cost method the carrying value would have been £1,438,810 (2022: £1,451,986)

Included within the net book value of land and buildings above is £2,775,000 (2022 - £2,775,000) in respect of freehold land and buildings and £59,187 (2022 - £Nil) in respect of short leasehold land and buildings.
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2023
£

2022
£

Plant and machinery

290,880

148,500

Motor vehicles

-

10,825

290,880

159,325

 

G.P.S Marine Holdings Limited

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

Company

Land and buildings
£

Plant, machinery and vessels
£

Total
£

Cost or valuation

At 1 January 2023

2,775,000

3,939,311

6,714,311

Additions

-

904,223

904,223

At 31 December 2023

2,775,000

4,843,534

7,618,534

Depreciation

At 1 January 2023

-

1,145,275

1,145,275

Charge for the year

-

507,641

507,641

At 31 December 2023

-

1,652,916

1,652,916

Carrying amount

At 31 December 2023

2,775,000

3,190,618

5,965,618

At 31 December 2022

2,775,000

2,794,036

5,569,036

 

G.P.S Marine Holdings Limited

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

14

Investments

Group

Investment in associated companies

2023
£

2022
£

Cost or Valuation

Group's share of profit or loss

719,395

429,794

Associates

£

At 1 January 2023

429,794

Share of associated undertaking profit

349,600

Dividends received

(60,000)

At 31 December 2023

429,794

Carrying Amount

At 31 December 2023

719,394

At 31 December 2022

429,794

Company

2023
£

2022
£

Investments in subsidiaries

827,056

827,056

Subsidiaries

£

Cost or valuation

At 1 January 2023

827,056

Carrying amount

At 31 December 2023

827,056

At 31 December 2022

827,056

 

G.P.S Marine Holdings Limited

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

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

GPS Marine Contractors Limited

Ordinary shares

100%

100%

GPS Marine Equipment Ltd

Ordinary shares

100%

100%

Thames Rhine Lloyd Ltd

Ordinary shares

100%

100%

GPS Marine Facilities Ltd

Ordinary shares

100%

100%

GPS Marine Holdings BV

Ordinary shares

100%

100%

GPS Marine Barges BV

Ordinary shares

100%

100%

Net Zero (River Logistics) Ltd

Ordinary shares

100%

100%

Ship Bunkering Services Ltd

Ordinary shares

100%

100%

LRN Engineering Limited

Ordinary shares

75%

75%

Alan C Bennett & Sons Limited

Ordinary shares

100%

100%

Associates

GPS MACS Holdings Limted

Ordinary shares

40%

0%

 

     

GPS Marine and Civil services Limited

Ordinary shares

40%

40%

 

     

M & C Plant Hire Limited

Ordinary shares

40%

0%

 

     

Land and Sea Uxo Sevices Limited

Ordinary shares

40%

0%

 

     

Tilt Engineering and Design Limited

Ordinary shares

40%

0%

 

     

The registered office for all subsidiaries except GPS Marine Holdings BV and GPS Marine Barges BV is; GPS Marine House, Upnor Road, Lower Upnor, Rochester, Kent ME2 4UY. The registered office for GPS Marine Holdings BV and GPS Marine Barges BV is at Scottstraat 12, 456BH Hulst, Netherlands.

The results of Net Zero (River Logistics) Ltd are excluded from the consolidated financial statements as they are immaterial to the group. All other subsidiary are reflected in the consolidation financial statements.

15

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Stock

218,076

136,611

-

-

 

G.P.S Marine Holdings Limited

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

16

Debtors

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Trade debtors

2,445,924

2,347,123

-

-

Amounts owed by group undertakings

-

-

8,184,330

9,469,869

Other debtors

85,084

13,419

149

2,947

Prepayments

851,126

1,936,107

-

-

Amount due from associated undertaking

-

50,000

-

50,000

3,382,134

4,346,649

8,184,479

9,522,816

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

17

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash at bank

1,462,653

1,381,849

697,250

845,166

Bank overdrafts

(192)

(15,397)

-

-

Cash and cash equivalents in statement of cash flows

1,462,461

1,366,452

697,250

845,166

 

G.P.S Marine Holdings Limited

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

18

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

22

651,172

857,416

646,536

837,774

Trade creditors

 

1,696,818

1,448,945

28,080

39,733

Amounts due to group undertakings

 

-

-

791,171

196,673

Social security and other taxes

 

283,459

209,793

-

-

Other payables

 

161,092

614,500

80,105

320,387

Accruals

 

277,898

196,998

37,033

41,225

Corporation tax liability

 

16,650

6,973

-

-

 

3,087,089

3,334,625

1,582,925

1,435,792

Due after one year

 

Loans and borrowings

22

2,826,967

3,322,551

2,822,708

3,313,847

19

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 January 2023

882,823

882,823

Increase/(decrease) in existing provisions

131,463

131,463

At 31 December 2023

1,014,286

1,014,286

Company

Deferred tax
£

Other provisions
£

Total
£

At 1 January 2023

846,829

834,128

1,680,957

Increase/(decrease) in existing provisions

154,485

-

154,485

At 31 December 2023

1,001,314

834,128

1,835,442

 

G.P.S Marine Holdings Limited

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

20

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £77,271 (2022 - £72,825).

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary 'A' Shares shares of £1 each

99

99

99

99

Ordinary 'B' Shares shares of £1 each

100

100

100

100

 

199

199

199

199

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

The ordinary 'B' shares are non voting and carry no right to participate in the assets of the company on winding up.

22

Loans and borrowings

Non-current loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Bank borrowings

2,674,146

3,239,657

2,674,146

3,239,657

Hire purchase obligations

152,821

82,894

148,562

74,190

2,826,967

3,322,551

2,822,708

3,313,847

Current loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Bank borrowings

571,981

795,143

571,981

795,143

Bank overdrafts

192

15,397

-

-

Hire purchase obligations

78,999

46,876

74,555

42,631

651,172

857,416

646,536

837,774

 

G.P.S Marine Holdings Limited

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

Bank loans and overdrafts are secured by a fixed charge over the group's freehold property and a fixed and floating charge over the assets and undertakings of the group and a fixed charge over certain barges and vessels. Liabilities arising under hire purchase contracts are secured on the assets concerned.

Group

Included in the loans and borrowings are the following amounts due after more than five years:

2023
£

2022
£

After more than five years payable by instalments

198,295

556,695

23

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

157,453

92,657

Later than one year and not later than five years

147,605

125,928

305,058

218,585

24

Dividends

Dividends paid

   

2023
£

 

2022
£

Dividend of £1,212 (2022 - £2,100) per Ordinary 'A' Shares

 

120,000

 

210,000

Dividend of £1,500 per Ordinary 'B' Shares

 

150,000

 

150,000

   

270,000

 

360,000

25

Contingent liabilities

The company has provided guarantees amounting to £1,720,000 (2022: £1,720,000) in respect of the bank liabilities of the subsidiary undertakings supported by a fixed and floating charge over the assets and undertakings of the company. No liability is expected to arise.

 

G.P.S Marine Holdings Limited

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

26

Analysis of changes in net debt

Group

At 1 January 2023
£

Financing cash flows
£

At 31 December 2023
£

Cash and cash equivalents

Cash

1,379,849

82,803

1,462,652

Overdrafts

(15,397)

15,205

(192)

1,364,452

98,008

1,462,460

Borrowings

Long term borrowings

(2,765,856)

137,184

(2,628,672)

Short term borrowings

(842,019)

191,039

(650,980)

(3,607,875)

328,223

(3,279,652)

 

(2,243,423)

426,231

(1,817,192)

27

Related party transactions

Exemption has been taken under FRS 102 paragraph 33.1A, not to disclose transactions or amounts falling due with companies that are wholly owned within the group.

During the year sales of £1,248,053 (2022: £839,426) were made to an associated undertaking. At 31 December 2023 an amount of £Nil (2021: £50,000) was due to the group from the associated undertaking.

During the year aggregate purchases of £407,642 (2022: £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 to the group from the undertakings.

The directors consider that the key management personnel of the group companies are the directors. Key management compensation payable amounts to £337,644 (2022: £313,457).

The dividends paid in the year as shown in note 25 were paid to the directors and a company over which a director exerts significant influence.

28

Control

Ultimate control vests with Mr J B Spencer.