Company Registration No. SC075040 (Scotland)
GLACIER INSPECTION SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
GLACIER INSPECTION SERVICES LIMITED
COMPANY INFORMATION
Director
S Martin
Secretary
Blackwood Partners LLP
Company number
SC075040
Registered office
Blackwood House
Union Grove Lane
Aberdeen
AB10 6XU
Auditor
Johnston Carmichael LLP
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
GLACIER INSPECTION SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
GLACIER INSPECTION SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The director presents the strategic report for the year ended 31 March 2024.

Fair review of the business

The company primarily operates in the Wind sector, supporting capital projects for Offshore Wind and providing services for Operating Onshore Wind Farms, with market conditions remaining favourable.

 

Turnover increased modestly from £9.3m to £9.4m however, gross margin has significantly improved from 24% to 38%. The company has generated an operating loss post exceptional items of £0.5m (2023: loss of £2.0m).

 

From the balance sheet perspective, the company had net liabilities of £2.1m (2023: net liabilities of £1.5m).

 

Key Developments

 

There were no major developments during the year, with the company maintaining its core activities in terms of providing Conventional Non Destructive Testing to its Offshore Wind clients and Advanced Non-Destructive Testing to clients with operating facilities, including support to its sister company, Glacier Energy Services Limited, by way of tube inspection for heat exchangers.

Principal risks and uncertainties

The principal risks and uncertainties affecting the company include the following :

 

Future prospects

The company’s long term prospects remain positive, with the its core Offshore Wind market expected to grow substantially in the next few years. In addition, the company’s other key current market in terms of Oil & Gas has strengthened considerably since the year end with an increase in commodity prices and a renewed drive for energy security.

 

In addition, the company is now active in providing its non destructive testing and inspection services for in-service wind farms and sees this as a significant market opportunity going forward.

GLACIER INSPECTION SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key performance indicators

The following represent the main financial key performance indicators used by the company:

 

KPI

2024

2023

Measure

Turnover per employee (£000’s)

121

114

Turnover / average number of employees

Operating loss per employee (£000’s)

(6)

(23)

Operating Loss / average number of employees

EBITDA margin

(4.5%)

(5.9%)

Earnings before Interest, Tax, Depreciation and Amortisation (pre Exceptional Costs) as a percentage of Turnover

Current ratio

0.84

0.90

Current assets/current liabilities

 

On behalf of the board

S Martin
Director
14 October 2024
GLACIER INSPECTION SERVICES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The director presents his annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of quality assurance engineers, providing non-destructive testing and inspection services.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid (2023: £nil). The director does not recommend payment of a final dividend (2023:£nil).

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

S Martin
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its director during the year. These provisions remain in force at the reporting date.

Future developments

Details of future developments can be found within the strategic report and form part of this report through cross-reference.

Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Going concern

As outlined in note 1.2, the director is comfortable that the company remains a going concern.

Financial management risk

The company does not use derivatives for either financial management risk or for speculative purposes. The company's financial risk management objectives, policies and exposure to financial risks are not considered material for assessment of the company's assets, liabilities, financial position or result for the year, and as such, no further disclosure is considered necessary.

GLACIER INSPECTION SERVICES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the director has taken all the necessary steps that he ought to have taken as a director in order to make himself aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
S Martin
Director
14 October 2024
GLACIER INSPECTION SERVICES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

The director is 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. He is 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.

GLACIER INSPECTION SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLACIER INSPECTION SERVICES LIMITED
- 6 -
Opinion

We have audited the financial statements of Glacier Inspection Services Limited (the ‘company’) for the year ended 31 March 2023 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including significant accounting policies.  The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

 

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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon.  The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

GLACIER INSPECTION SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLACIER INSPECTION SERVICES LIMITED
- 7 -
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 director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of director

As explained more fully in the Directors’ Responsibilities Statement set out on page 5, 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.

 

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.

Extent the audit was considered capable of detecting irregularities, including fraud

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.

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

 

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

 

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management. We corroborated these enquiries through our review of submitted returns and relevant correspondence with regulatory bodies and board meeting minutes.

GLACIER INSPECTION SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLACIER INSPECTION SERVICES LIMITED
- 8 -

Extent the audit was considered capable of detecting irregularities, including fraud (continued)

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:

 

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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 him 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.

Stephen McIlwaine (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
15 October 2024
Chartered Accountants
Statutory Auditor
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
GLACIER INSPECTION SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
9,402,389
9,343,097
Cost of sales
(6,833,309)
(7,112,010)
Gross profit
2,569,080
2,231,087
Administrative expenses
(3,073,461)
(2,890,613)
Exceptional item
4
-
0
(1,263,436)
Operating loss
5
(504,381)
(1,922,962)
Interest payable and similar expenses
7
(24,772)
(30,814)
Loss before taxation
(529,153)
(1,953,776)
Tax on loss
8
(81,000)
-
0
Loss for the financial year
(610,153)
(1,953,776)
Total comprehensive expense for the year
(610,153)
(1,953,776)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

 

There are no recognised gains or losses in the current or prior year other than as included in the profit and loss account. Accordingly, no statement of comprehensive income is presented.

GLACIER INSPECTION SERVICES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
373,736
244,118
Current assets
Stocks
10
2,000
18,297
Debtors
11
12,078,533
11,575,222
Cash at bank and in hand
37,796
8,538
12,118,329
11,602,057
Creditors: amounts falling due within one year
12
(14,388,442)
(13,146,465)
Net current liabilities
(2,270,113)
(1,544,408)
Total assets less current liabilities
(1,896,377)
(1,300,290)
Creditors: amounts falling due after more than one year
13
(114,808)
(181,742)
Deferred tax liability
16
(81,000)
-
0
Net liabilities
(2,092,185)
(1,482,032)
Capital and reserves
Called up share capital
18
5,000
5,000
Share premium account
19
2,200
2,200
Profit and loss reserves
19
(2,099,385)
(1,489,232)
Total deficit
(2,092,185)
(1,482,032)
The financial statements were approved and signed by the director and authorised for issue on 14 October 2024
S Martin
Director
Company Registration No. SC075040
GLACIER INSPECTION SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
5,000
2,200
464,544
471,744
Year ended 31 March 2023:
Loss and total comprehensive expense for the year
-
-
(1,953,776)
(1,953,776)
Balance at 31 March 2023
5,000
2,200
(1,489,232)
(1,482,032)
Year ended 31 March 2024:
Loss and total comprehensive expense for the year
-
-
(610,153)
(610,153)
Balance at 31 March 2024
5,000
2,200
(2,099,385)
(2,092,185)
GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Glacier Inspection Services Limited (SC075040) is a private company limited by shares incorporated and domiciled in Scotland. The registered office and trading address is Blackwood House, Union Grove Lane, Aberdeen, AB10 6XU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Glacier Topco Limited. These consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.

GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern

In the current year the company has recorded a retained loss of £0.6m (2023 - £2.0m), with net current liabilities of £2.3m (2023 - £1.5m) and net liabilities of £2.1m (2023 - £1.5m). true

 

Within current liabilities is a Confidential Invoice Discounting (“CID”) facility balance of £0.4m (2023 - £1.1m) and amounts due to group undertakings of £11.0m (2023 - £9.2m). Excluding this combined debt of £11.4m (2023 - £10.3m), the company has net assets and positive current assets in both the current and prior years. The CID facility is a group facility and is in place for the foreseeable future; as part of the director’s going concern assessment, the director has obtained a letter of support from the company’s ultimate parent, Glacier Topco Limited, confirming the payment deferral of any intercompany liabilities beyond 12 months from the approval of these financial statements, were payment of such might call into question the company’s going concern applicability.

 

The CID is a group facility and is in place for the foreseeable future. Current year trading for the company continues to be promising, with detailed projections having been prepared at a group level for an appropriate future period, which demonstrate the group is able to generate sufficient cashflow to allow for adequate headroom within its group CID facility. Appropriate stress testing scenarios have also been illustrated, to ensure the robustness of these projections. While the director remains confident in these projections, it should be noted that projections by their very nature are uncertain and require a degree of estimation.

 

Based on the above considerations, the director has reasonable assurance over the company’s financial resilience going forward and as such, have adopted the going concern basis of accounting in preparing these financial statements.

1.3
Turnover

Turnover is derived from the provision of quality assurance, non-destructive testing and inspection services, and is recognised at the fair value of the consideration received or receivable for services provided, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Revenue is recognised within the financial statements when cash is received or receivable.

Revenue from the provision of engineering services is recognised when the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This revenue is primarily short-term in nature and recognition is normally on completion of the work based on the value agreed with the customer.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant, machinery and equipment
25% - 33% straight line
Fixtures, fittings & equipment
25% - 33% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.

GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit and loss account.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is measured on a first in, first out basis. Cost comprises direct materials and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, amounts due from fellow group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the profit and loss account.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit and loss account.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank overdrafts and amounts due to fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

The company participates in the defined contribution pension scheme operated by the group. The assets of the scheme are held separately from those of the company in an independently administered fund. The amount charged to the profit and loss account represents the contributions payable to the scheme in respect of the accounting period.

1.13
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.14
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
1.15

Exceptional items

Exceptional items comprise costs which the directors consider as material to the profit and loss account, that their separate disclosure is necessary for an appropriate understanding of the company's financial performance.

2
Judgements and key sources of estimation uncertainty

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

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

There are no judgements or estimation uncertainties that have a significant effect on amounts recognised in the financial statements.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Provision of services
9,402,389
9,343,097
2024
2023
£
£
Turnover analysed by geographical market
UK and Europe
9,401,865
8,999,563
Rest of the world
524
343,534
9,402,389
9,343,097

 

GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional costs on settlement
-
1,263,436

The company were in on-going dialogue with Belgium tax authorities regarding the company's operations in Belgium. A settlement agreement has been reached with the Belgium tax authorities and has been fully provided within the year to 31 March 2023 financial statements.

5
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
45,524
16,343
Fees payable to the company's auditor for the audit of the company's financial statements
10,750
10,000
Depreciation of owned tangible fixed assets
42,968
19,660
Depreciation of tangible fixed assets held under finance leases
38,735
50,991
Operating lease charges
316,997
327,852
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administrative
12
10
Direct
66
72
78
82

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,992,909
4,564,891
Social security costs
479,290
475,174
Pension costs
388,174
152,162
5,860,373
5,192,227
GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
8,306
4,248
Interest on finance leases and hire purchase contracts
16,466
26,566
24,772
30,814
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
81,000
-
0

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(529,153)
(1,953,776)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(132,288)
(371,217)
Tax effect of expenses that are not deductible in determining taxable profit
3,552
2,816
Group relief surrendered
169,421
150,256
Fixed asset differences
63
(7,983)
Remeasurement of deferred tax for changes in tax rates
-
0
(62,481)
Deferred tax not recognised
40,252
288,609
Taxation charge for the year
81,000
-

No deferred tax asset has been recognised on historic trading losses, or short term timing differences in the current or prior years, as the director takes a prudent approach to such recognition where uncertainty exists around future trading profits. At 31 March 2024 the unrecognised deferred tax asset was £719,000 (2023: £724,000).

GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
9
Tangible fixed assets
Plant, machinery and equipment
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
650,648
400,760
33,721
1,085,129
Additions
173,574
37,747
-
0
211,321
Disposals
(31,837)
(163,190)
(21,951)
(216,978)
At 31 March 2024
792,385
275,317
11,770
1,079,472
Depreciation and impairment
At 1 April 2023
492,402
314,888
33,721
841,011
Depreciation charged in the year
66,138
15,565
-
0
81,703
Eliminated in respect of disposals
(31,837)
(163,190)
(21,951)
(216,978)
At 31 March 2024
526,703
167,263
11,770
705,736
Carrying amount
At 31 March 2024
265,682
108,054
-
0
373,736
At 31 March 2023
158,246
85,872
-
0
244,118

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant, machinery and equipment
115,160
153,895
10
Stocks
2024
2023
£
£
Raw materials and consumables
2,000
18,297
GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,789,781
1,627,404
Amounts owed by group undertakings
10,151,423
9,730,506
Other debtors
76,247
167,951
Prepayments and accrued income
61,082
49,361
12,078,533
11,575,222

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
432,360
1,050,855
Obligations under finance leases
15
66,934
66,934
Trade creditors
459,507
259,511
Amounts owed to group undertakings
10,994,603
9,217,019
Taxation and social security
237,810
273,444
Other creditors
879,531
893,699
Accruals and deferred income
1,317,697
1,385,003
14,388,442
13,146,465

Bank loans and overdrafts relate to an invoice discounting facility.

 

Amounts owed to group are unsecured, interest free and repayable on demand.

13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
15
114,808
181,742

Obligations under finance leases are secured over the assets to which they relate.

GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
14
Loans and overdrafts
2024
2023
£
£
Invoice discounting facility
432,360
1,050,855
Payable within one year
432,360
1,050,855

The bank holds a floating charge over all of the assets of the company.

15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
66,934
66,934
In two to five years
114,808
181,742
181,742
248,676

Finance lease payments represent rentals payable by the company for certain items of plant, machinery and equipment. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Obligations under finance leases are secured over the assets to which they relate.

16
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
81,000
-
2024
Movements in the year:
£
Liability at 1 April 2023
-
Charge to profit or loss
81,000
Liability at 31 March 2024
81,000
GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
388,174
152,162

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the year end there were no outstanding amounts due from the company (2023 - £nil).

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,000
5,000
5,000
5,000
19
Reserves
Share premium

The share premium reserve represents premiums received on the issuing of share capital at amounts in excess of nominal value.

Profit and loss reserves

The profit and loss reserve represents accumulated profits and losses for the current period and prior periods less dividends paid.

20
Financial commitments, guarantees and contingent liabilities

The company has provided a cross guarantee as part of the group's security obligations to the group's institutional investor (Averroes Capital Limited) and the provider of its debt facilities (IGF Business Credit Limited), in respect of the group's A loan notes and debt facilities.

21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
62,502
42,321
Between two and five years
196,461
91,670
In over five years
7,500
-
0
266,463
133,991
GLACIER INSPECTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
22
Related party transactions

The company has taken the exemption in FRS 102 Section 33 of the requirement to disclose transactions with other wholly-owned companies within the same group.

23
Ultimate controlling party

The parent company is Glacier Inspection Services UK Limited which has its registered office at Blackwood House, Union Grove Lane, Aberdeen, AB10 6XU.

The ultimate parent company is Glacier Topco Limited, which has its registered office at 77 Charlotte Street, London, W1T 4PW.

Glacier Topco Limited is the smallest and largest group of companies into which the company is consolidated. Group financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.

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