Registration number:
Global Tunnelling Experts UK Limited
for the Year Ended 31 December 2023
Global Tunnelling Experts UK Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Global Tunnelling Experts UK Limited
Company Information
Directors |
K Browning C Nielsen |
Registered office |
|
Auditors |
|
Global Tunnelling Experts UK 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 providing specialist key tunnelling personnel to the construction industry.
Fair review of the business
Company Profile
Global Tunnelling Experts UK Limited (GTU) is a fully owned subsidiary of Herrenknecht AG (HAG), world’s market leader in mechanized tunnel technology. GTU provides construction companies with qualified, specialist personnel for all jobs throughout all construction phases on tunnel construction sites. This includes operational job profiles for all aspects of mechanized tunnelling operations and the equipment they involve. In addition, GTU takes care of all the administrative aspects of providing personnel, from arranging visas, work permits and insurance cover, to organizing accommodation at the place of work. We are fast and reliable. Our mission is clear: we always provide our customers with the right personnel in the right place at the right time.
Business Strategy
GTU positions itself as an “all-in-one” service provider, which offers the entire life cycle of both the operational as well as the administrative and legal handling of the workforce deployment.
Financial Performance and Position
The turnover has decreased 38% due to the fact that our biggest project Hinkley Point C is reaching finalisation phase resulting in a decrease in manpower.
The gross profit decreased 22% what is in contrary to the revenue development. The increase in gross profit is related to a more profitable mix of projects.
The net profit decreased by 27% which is in relation to the decrease in revenue. Due to better project results and a stable overhead the net profit percentage as part of the revenue increased by 1.7%.
The net current assets shows a decrease of 20% due to a lower cash balance which is the result of dividends payments.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2023 |
2022 |
|
Turnover |
£ |
13,143,711 |
21,264,335 |
Gross profit |
£ |
3,450,794 |
4,419,240 |
Net profit |
£ |
1,486,763 |
2,035,294 |
Net assets |
£ |
4,074,430 |
5,118,448 |
Global Tunnelling Experts UK Limited
Strategic Report for the Year Ended 31 December 2023
Principal risks and uncertainties
The directors have reviewed the industry in which the company operates and they consider that there are no significant risks and uncertainties that need disclosing within this report.
Approved and authorised by the
|
Global Tunnelling Experts UK 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:
Message of the Board
As expected the financial year 2023 showed a decrease in revenue from £ 21.26 Mil last year towards £ 13.14 Mil this year. The decrease is related to the fact that our biggest project Hinkley Point C is coming to an end, resulted in a decrease in manpower during the year. The project will still generate revenue for 2024 but will not be on the excessive levels of the years before. In relation to less revenue the net profit also decreased from £ 2.04 towards £ 1.49 Mil. Due to better project results the net profit % increased from 9.6% towards 11.3%.
Financial instruments
Objectives and policies
Management has assessed and analyzed a number of risk areas which could have an impact on our business operations.
Risk management
Market risk
Market risk arises when a company is subject to adverse sales conditions due to either increased competition in the marketplace, adverse demand conditions within the market, or the inability to develop markets or position products to service targeted customers.
Due to the overall integration of GTU into Herrenknecht AG, world's market leader in mechanized tunnel technology (HAG), business operations and given the circumstance that HAG is among GTU's major customers, GTU is to a certain extent affected by the overall order situation at the level of HAG. However, on the one hand GTU is mediating this risk by developing its own brand reputation as a premium service provider in order to attract external third party customers from the tunnelling and construction peripherals. On the other hand, GTE strategically develops its product portfolio and market presence to new external business.
Liability and warranty risks
Liability refers to the legal liability of sellers to compensate buyers, users, and even bystanders, for damages or injuries suffered because of mal-services. The party bearing the service defect (warranty) risk is responsible for compensating buyers for any defective service purchased. Compensation can include replacement of the product, or a full refund.
As HAG holds the direct contract with the customer, HAG operates as the customer's first point of contact in case of any liability or warranty claims. In order to mitigate such risks, GTU has set strict personnel requirements in order to ensure that only personnel with sufficient experience is employed. GTU's project managers are performing local oversight on the service provision. Furthermore, GTU has an employer's liability insurance in place which will cover any potential claim from third parties.
Global Tunnelling Experts UK Limited
Directors' Report for the Year Ended 31 December 2023
Credit risk
Customer credit risk refers to the risk that counterparties may default on their contractual obligations and thus result in a loss to the company.
Due to HAG's outstanding financial power, the risk that HAG may default on its contractual obligations can be considered rather low. Credit risk of third party will always remain. By having the payment terms stated in the third party contracts and by actively monitoring the third party receivables GTU will manage to keep the risk at an acceptable level.
Foreign exchange risk
Foreign exchange risk is the risk associated with the possibility of profits being affected by fluctuations in exchange rates. This risk arises when prices are set in a currency different from the company's functional currency. The majority of GTU's business is running in GBP and therefore no foreign exchange risk exists. Part of the intercompany business is in EUR and therefore there will be an foreign exchange risk exposure. GTU will respond to this by keeping outstanding balances as low as possible and keeping options open for hedging.
Price risk
Price risk is the potential for the decline in the sales price which can occur due to a higher level of competition. GTU mitigates this risk by having contracts in place including fixed sales prices for the third party business. For the intercompany business there are also fixed agreed charge rates in place and therefore GTU consider this risk as rather low.
Liquidity risk
Liquidity risk is the potential that an entity will be unable to meet short or intermediate term obligations. In many cases, capital is locked up in assets that are difficult to convert to cash when it is required to pay current bills. GTU has at the moment a very high liquidity position and capital is not locked up into assets. GTU also doesn't need to rely on any lines of credit and therefore we consider this risk rather low at this point.
Cashflow risk
Cashflow risk can be defined as the extent to which future cash flows may fall short of expectations as a consequence of changes in market variables. Typical risks could include things like unexpected expenses, decreases in revenue or sudden market fluctuations. Due to the nature of the business it will be unlikely for GTU to receive unexpected expenses which will have a major impact on the cashflow position. Decreases in revenue are already known at an earlier stage due to running contracts and the expected running period per project. Therefore, GTU is able to take necessary measures in order to maintain a healthy cashflow. Further GTU mitigates this risk by reviewing the cash flow planning regularly and by holding a cash reserve.
Future developments
For the year 2024 we expect to have more or less the same amount of revenue. Running 3rd party projects like Hinkley Point C and Woodsmith Mine will remain stable and the same will be with our IC business. We continue making efforts to develop additional revenue streams in providing courses in our training center and with providing permanent placements roles to all major construction projects. Further we keep tendering for all future tunnel projects inside the United Kingdom and are confident that some part of this new business will be awarded to us.
There are no material investments planned for the immediate future. The liquidity position remains very strong and additional funding will not be expected.
Disclosure of information to the auditors
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.
Global Tunnelling Experts UK Limited
Directors' Report for the Year Ended 31 December 2023
Reappointment of auditors
The auditors Milsted Langdon LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the
|
Global Tunnelling Experts UK 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.
Global Tunnelling Experts UK Limited
Independent Auditor's Report to the Members of Global Tunnelling Experts UK Limited
Opinion
We have audited the financial statements of Global Tunnelling Experts UK Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements 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.
Global Tunnelling Experts UK Limited
Independent Auditor's Report to the Members of Global Tunnelling Experts UK Limited
We have nothing to report in this regard.
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, 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 7, 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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
• |
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; |
Global Tunnelling Experts UK Limited
Independent Auditor's Report to the Members of Global Tunnelling Experts UK Limited
• |
inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud; |
• |
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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.
For and on behalf of
Winchester House
Deane Gate Avenue
Somerset
TA1 2UH
Global Tunnelling Experts UK Limited
Profit and Loss Account for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
1,581,314 |
2,531,280 |
|
Other interest receivable and similar income |
|
- |
|
Interest payable and similar expenses |
( |
( |
|
16,433 |
(11,280) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
Global Tunnelling Experts UK Limited
Statement of Comprehensive Income for the Year Ended 31 December 2023
2023 |
2022 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
Global Tunnelling Experts UK Limited
(Registration number: 06353379)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
|
Global Tunnelling Experts UK Limited
Statement of Changes in Equity for the Year Ended 31 December 2023
Share capital |
Retained earnings |
Total |
|
At 1 January 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 December 2023 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 January 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 December 2022 |
10,000 |
5,108,448 |
5,118,448 |
Global Tunnelling Experts UK Limited
Statement of Cash Flows for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
- |
|
Finance costs |
|
- |
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in trade debtors |
( |
|
|
Decrease in creditors |
( |
( |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
- |
|
Acquisitions of tangible assets |
( |
- |
|
Net cash flows from investing activities |
|
- |
|
Cash flows from financing activities |
|||
Interest paid |
( |
- |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
2,460,368 |
5,084,903 |
Global Tunnelling Experts UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
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.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.
Going concern
The financial statements have been prepared on a going concern basis, as the directors believe the company has adequate resources to continue trading and satisfy its debts and obligations as they fall due for the foreseeable future.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover consists of two sources of income. Firstly, management fees received from the company's immediate parent for performing administrative duties on its behalf. Secondly, income received from the company's immediate parent, ultimate parent and external third parties for the supply of personnel to the tunnelling industry. Turnover is measured at the fair value of the consideration received or receivable, net of value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Global Tunnelling Experts UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Government grants
Grants are recognised in the financial statements when there is reasonable assurance that the entity will comply with the conditions attached to them and the grants will be received.
Grants intended as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which they become receivable. Grants towards capital expenditure are initially recognised as deferred revenue and then released to the profit and loss account over the expected useful life of the assets.
Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
Foreign currency transactions and balances
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 change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation 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 income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible assets
Tangible assets are stated in the Balance Sheet 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 |
Leasehold land and buildings |
20% straight line method |
Office equipment |
20% straight line method |
Motor vehicles |
20% straight line method |
Global Tunnelling Experts UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
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.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Leases
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership to the lessee. All other leases are classified as operating leases. The rights of use and obligations under finance lease are initially recognised as assets and liabilities at amounts equal to the lower of the fair value of the leased assets or the present value of the minimum lease payments due. Finance lease liabilities are subsequently measured at amortised cost using the effective interest rate method. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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
A dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Global Tunnelling Experts UK 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.
Financial instruments
Classification
Recognition and measurement
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Impairment
Global Tunnelling Experts UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Fees |
|
|
Management Charges |
|
|
|
|
The analysis of the company's turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Operating profit |
Arrived at after charging/(crediting):
2023 |
2022 |
|
Depreciation expense |
|
|
Operating lease expense - property |
|
|
Operating lease expense - plant and machinery |
- |
|
Operating lease expense - other |
|
|
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on bank deposits |
|
- |
Interest payable and similar expenses |
2023 |
2022 |
|
Interest expense on other finance liabilities |
|
- |
Foreign exchange losses |
|
|
|
|
Global Tunnelling Experts UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:
2023 |
2022 |
|
Administration and support |
|
|
Fieldworkers |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
118,261 |
118,261 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
All other assurance services |
|
|
Global Tunnelling Experts UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Taxation |
Tax charged/(credited) in the income statement:
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
110,984 |
484,706 |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
- |
Tax increase from effect of capital allowances and depreciation |
|
|
Decrease from effect of different UK tax rates on some earnings |
( |
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Tax decrease from effect of adjustment in research and development tax credit |
( |
- |
Total tax charge |
|
|
During the year the current tax rate increased to 25% from 19%.
In March 2021, changes to the UK corporation tax rate were announced by the Chancellor of the Exchequer, including an increase in the main rate of corporation tax from 19% to 25% from April 2023 which was substantially enacted in May 2021. The enacted rates at the balance sheet date have been appropriately reflected in the calculation of deferred tax in the company's financial statements.
Global Tunnelling Experts UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Tangible assets |
Leasehold land and buildings |
Office equipment |
Motor vehicles |
Total |
|
Cost |
||||
At 1 January 2023 |
|
|
|
|
Additions |
- |
- |
|
|
At 31 December 2023 |
|
|
|
|
Depreciation |
||||
At 1 January 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 December 2023 |
|
|
|
|
Carrying amount |
||||
At 31 December 2023 |
|
|
|
|
At 31 December 2022 |
|
|
|
|
Debtors |
Current |
Note |
2023 |
2022 |
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Income tax asset |
|
- |
|
|
|
Cash and cash equivalents |
2023 |
2022 |
|
Cash at bank |
|
|
Global Tunnelling Experts UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other creditors |
|
|
|
Accruals |
|
|
|
Corporation tax liability |
- |
298,294 |
|
|
|
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 £
Contributions totalling £
Global Tunnelling Experts UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
10,000 |
|
10,000 |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
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 |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dividends |
2023 |
2022 |
|||
£ |
£ |
|||
Interim dividend of £250.00 (2022 - £ |
2,500,000 |
1,000,000 |
||
Analysis of changes in net cash |
At 1 January 2023 |
Financing cash flows |
At 31 December 2023 |
|
Cash and cash equivalents |
|||
Cash |
5,084,903 |
(2,624,535) |
2,460,368 |
|
( |
|
|
|
Global Tunnelling Experts UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Related party transactions |
Summary of transactions with all subsidiaries
Financial instruments |
Categorisation of financial instruments
2023 |
2022 |
|
Financial assets that are debt instruments measured at amortised cost |
|
|
Financial liabilities measured at amortised cost |
|
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
The most senior parent entity producing publicly available financial statements is