Company Registration No. SC188687 (Scotland)
GLACIER ENERGY SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
GLACIER ENERGY SERVICES LIMITED
COMPANY INFORMATION
Directors
S Martin
A Scott
Secretary
Blackwood Partners LLP
Company number
SC188687
Registered office
Blackwood House
Union Grove Lane
Aberdeen
AB10 6XU
Auditor
Johnston Carmichael LLP
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
GLACIER ENERGY SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
GLACIER ENERGY SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business

The company provides heat exchanger products and services, including onsite machining solutions.

During the year, turnover increased from £11.8m to £14.2m, with a stable gross margin percentage year on year. The company generated an operating profit of £322k compared to a prior year operating loss of £354k, but after exception item credits of £370k (2023: £200k), resulting from a dilapidations charge on the exit of leased premises in Aberdeen, net of intercompany forgiveness by a fellow subsidiary company. Overall the underlying financial performance of the company has continued to improve year on year and management’s ongoing focus is increasing sales volume and associated gross margin.

From the balance sheet perspective, the company had net assets of £322k (2023: £10k) so a continued improvement in this area.

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

 

KPI                    2024    2023    Measure

Turnover per Employee (£'000)        203    200    Turnover / average number of employees

Operating profit per Employee (£'000)    5    (6)    Operating profit / average number of employees

EBITDA margin                0.5%    -3.6%    Earning before Interest, Tax, Depreciation

and Amortisation (pre-Exceptional Costs)

Current ratio                1.00    0.96    Current assets / current liabilities

 

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 its core Energy and Manufacturing markets 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. The business also has significant contracts in the Caspian, which is a key strategic focus to drive further internationalisation.

On behalf of the board

S Martin
Director
14 October 2024
GLACIER ENERGY SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company was that of the provision of heat exchanger products and services and onsite machining solutions.

Results and dividends

The results for the year are set out on page 8.

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

Directors

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

S Martin
A Scott
Qualifying third party indemnity provisions

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

Auditor

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

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments (where applicable).

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 individually 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.

Going concern

As outlined in note 1.2, the directors are comfortable that the company remains a going concern.

Financial management risk

The company does not use derivatives for either financial management risk or for operative purposes. The company's financial risk management objectives, politics 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.

On behalf of the board
S Martin
Director
14 October 2024
GLACIER ENERGY SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors are responsible for preparing the strategic report, directors' 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

GLACIER ENERGY SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLACIER ENERGY SERVICES LIMITED
- 4 -
Opinion

We have audited the financial statements of Glacier Energy Services Limited (the 'company') for the year ended 31 March 2024 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

Other information

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

 

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 ENERGY SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLACIER ENERGY SERVICES LIMITED
- 5 -
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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Director's Responsibilities Statement set out on page 3, 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.

GLACIER ENERGY SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLACIER ENERGY SERVICES LIMITED
- 6 -

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, relevant correspondence with regulatory bodies and board meeting minutes.

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 are to become aware of it.

GLACIER ENERGY SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLACIER ENERGY SERVICES LIMITED
- 7 -

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.

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 ENERGY SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
14,184,839
11,773,473
Cost of sales
(10,350,953)
(8,423,349)
Gross profit
3,833,886
3,350,124
Administrative expenses
(3,881,241)
(3,904,097)
Exceptional items
4
370,000
200,000
Operating profit/(loss)
5
322,645
(353,973)
Interest payable and similar expenses
8
(426)
(2,242)
Profit/(loss) before taxation
322,219
(356,215)
Tax on profit/(loss)
9
-
0
1,441
Profit/(loss) for the financial year
322,219
(354,774)
Total comprehensive income/(expense) for the year
322,219
(354,774)

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 ENERGY SERVICES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
9,254
10,636
Other intangible assets
10
49,313
103,867
Total intangible assets
58,567
114,503
Tangible assets
11
254,422
220,795
Investments
12
100
100
313,089
335,398
Current assets
Stocks
14
1,123,797
502,394
Debtors
15
8,748,455
7,932,263
Cash at bank and in hand
39,281
22,739
9,911,533
8,457,396
Creditors: amounts falling due within one year
16
(9,892,363)
(8,780,360)
Net current assets/(liabilities)
19,170
(322,964)
Total assets less current liabilities
332,259
12,434
Creditors: amounts falling due after more than one year
17
-
0
(2,394)
Net assets
332,259
10,040
Capital and reserves
Called up share capital
21
2
2
Profit and loss reserves
21
332,257
10,038
Total equity
332,259
10,040
The financial statements were approved by the board of directors and authorised for issue on 14 October 2024 and are signed on its behalf by:
S Martin
Director
Company Registration No. SC188687
GLACIER ENERGY SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
2
364,812
364,814
Year ended 31 March 2023:
Loss and total comprehensive expense for the year
-
(354,774)
(354,774)
Balance at 31 March 2023
2
10,038
10,040
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
322,219
322,219
Balance at 31 March 2024
2
332,257
332,259
GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information

Glacier Energy Services Limited (SC188687) is a private company limited by shares incorporated and domiciled in Scotland. The registered office 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 company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Glacier Energy Services Limited is a wholly owned subsidiary of Glacier Energy Services Holdings Limited and the results of Glacier Energy Services Limited are included in the consolidated financial statements of Glacier Topco Limited (the ultimate parent company of Glacier Energy Services Holdings Limited), which are available from its registered office at 77 Charlotte Street, London, W1T 4PW.

GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern

In the current year the company has recorded a retained profit of £0.3m (2023: a retained loss of £0.4m), with net current assets of £19k (2023: net current liabilities of £323k) and net assets of £332k (2023: £10k).true

Within current liabilities is a Confidential Invoice Discounting (“CID”) facility balance of £0.9m (2023: £1.4m) and amounts due to group undertakings of £5.4m (2023: £4.4m), which have some flexibility in respect of repayment. With respect to the amounts due to group undertakings, the company has received a letter of support from its ultimate parent, Glacier Topco Limited, confirming the payment deferral of any intercompany balances 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 strong, 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 directors remain 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 directors have 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 represents amounts invoiced during the year in respect of the provision of heat exchanger products and services and onsite machining and consultancy.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on the availability of the goods for customer collection), 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.

Revenue from contracts for the provision of engineering services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

 

Where the outcome of a contract can be assessed with reasonable certainty, profit is recognised as the difference between revenue and related costs. Any foreseeable loss is recognised immediately in profit or loss. Contracts for the provision of engineering services are generally short term in nature.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Development Costs
3 years on cost
Intellectual property & customer lists
10 years
1.7
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 and machinery
20% on cost
Office equipment
10% to 50% on cost
Motor vehicles
25% on cost

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.

1.8
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible 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.

GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -

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.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the profit and loss account.

1.9
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, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Work in progress

Work in progress is valued at the lower of cost and net realisable value, and includes direct expenditure and an appropriate proportion of fixed and variable overheads.

 

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.

1.10
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.

1.11
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 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 ENERGY 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.

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 loans and 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.

 

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. Trade creditors 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.

1.12
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.

1.13
Taxation

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

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.

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

1.14
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.

1.15
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.
1.16
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 leases asset are consumed.

1.17
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 the profit and loss account.

GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.18

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 directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

 

The estimates, assumptions and judgements which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Engineering contract services accounting

Management assess the stage of completion for each engineering services contract on a monthly basis in order to allocate an appropriate level of revenue within each given period. The judgement is calculated by comparing costs incurred as a proportion of total budgeted costs. Total budgeted costs are calculated by individuals with relevant experience to enable them to estimate such values and are reviewed against actual costs incurred on a regular basis. Contracts for the provision of engineering services are generally short term in nature.

There are no other 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
Sale of goods and services
14,184,839
11,773,473
2024
2023
£
£
Turnover analysed by geographical market
UK
13,731,575
11,543,273
Europe
79,154
22,804
Rest of the world
374,110
207,396
14,184,839
11,773,473

 

GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
4
Exceptional items
2024
2023
£
£
Expenditure
Gain on release of amounts due to group
(550,000)
(200,000)
Dilapidations payment
180,000
-
(370,000)
(200,000)

Amounts above relate to the release of amounts due to fellow group members company which the counterparties have released the company from. The dilapidations payment represents the amount agreed with the landlord to exit the company's previous premises at Peterseat Drive, Altens Industrial Estate, Aberdeen.

5
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange differences
8,012
9,624
Fees payable to the company's auditor for the audit of the company's financial statements
18,000
17,000
Depreciation of owned tangible fixed assets
58,814
68,773
Depreciation of tangible fixed assets held under finance leases
2,308
2,308
Profit on disposal of tangible fixed assets
-
(5,510)
Amortisation of intangible assets
57,436
56,936
Operating lease charges
327,345
369,121
6
Employees

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

2024
2023
Number
Number
Administrative
23
22
Direct
47
37
Total
70
59

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,540,481
2,947,793
Social security costs
379,883
309,156
Pension costs
175,703
80,720
4,096,067
3,337,669
GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
139,338
110,200
Company pension contributions to defined contribution schemes
16,569
5,150
155,907
115,350
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
426
2,242
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
(1,441)

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

2024
2023
£
£
Profit/(loss) before taxation
322,219
(356,215)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
80,555
(67,681)
Tax effect of expenses that are not deductible in determining taxable profit
6,687
2,274
Tax effect of income not taxable in determining taxable profit
(137,500)
(38,000)
Adjustments in respect of prior years
-
0
(1,441)
Group relief surrendered
791,501
109,173
Fixed asset differences
(19,317)
(1,667)
Other items
-
0
(787)
Deferred tax not recognised
(721,926)
(3,312)
Taxation charge/(credit) for the year
-
(1,441)

No deferred tax has been recognised in both the current and prior years due to timing differences not being material plus no deferred tax asset recognised on historic trading losses, as the directors take a prudent approach to such recognition where uncertainty exists around future trading profits. As at 31 March 2024 the unrecognised deferred tax asset was £513,000 (2023: 1,280,000).

GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
10
Intangible fixed assets
Goodwill
Development Costs
Intellectual property & customer lists
Total
£
£
£
£
Cost
At 1 April 2023
13,821
159,761
23,000
196,582
Additions
-
0
1,500
-
0
1,500
At 31 March 2024
13,821
161,261
23,000
198,082
Amortisation and impairment
At 1 April 2023
3,185
73,594
5,300
82,079
Amortisation charged for the year
1,382
53,754
2,300
57,436
At 31 March 2024
4,567
127,348
7,600
139,515
Carrying amount
At 31 March 2024
9,254
33,913
15,400
58,567
At 31 March 2023
10,636
86,167
17,700
114,503
11
Tangible fixed assets
Plant and machinery
£
Cost
At 1 April 2023
851,971
Additions
94,749
Disposals
(168,558)
At 31 March 2024
778,162
Depreciation and impairment
At 1 April 2023
631,176
Depreciation charged in the year
61,122
Eliminated in respect of disposals
(168,558)
At 31 March 2024
523,740
Carrying amount
At 31 March 2024
254,422
At 31 March 2023
220,795
GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Tangible fixed assets
(Continued)
- 21 -

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 and machinery
16,363
18,671
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
100
100
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Aberdeen Radiators Limited
1
Non-trading
Ordinary
100.00
Registered Office addresses:
1
Blackwood House, Union Grove Lane, Aberdeen, AB10 6XU
14
Stocks
2024
2023
£
£
Raw materials and consumables
1,778
14,652
Work in progress
1,122,019
487,742
1,123,797
502,394
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,015,691
2,356,822
Amounts owed by group undertakings
5,217,194
4,812,631
Other debtors
148,434
132,621
Prepayments and accrued income
1,367,136
630,189
8,748,455
7,932,263
GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Debtors
(Continued)
- 22 -

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

16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
928,552
1,422,597
Obligations under finance leases
19
2,393
7,181
Trade creditors
1,024,466
706,202
Amounts owed to group undertakings
5,377,978
4,409,217
Other creditors
-
0
66
Accruals and deferred income
2,558,974
2,235,097
9,892,363
8,780,360

Bank loans and overdrafts represent an invoice finance liability which is secured.

 

Included within other creditors are obligations due under finance leases amounting to £2,393 (2023 - £7,181). Finance leases are secured against the assets to which they relate.

 

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

17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
-
0
2,394

Other creditors due after more than one year wholly relate to obligations under finance leases and are secured against the assets to which they relate.

18
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
928,552
1,422,597
Payable within one year
928,552
1,422,597
GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
2,393
7,182
In two to five years
-
0
2,393
2,393
9,575

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

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
175,703
80,720

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.

21
Share capital and profit and loss reserves
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2

Profit and loss reserves represent cumulative profits and losses, net of dividends and other adjustments.

22
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.

23
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
34,647
75,060
Between two and five years
25,185
26,450
59,832
101,510
GLACIER ENERGY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
24
Related party transactions

The company has taken the exemption in FRS 102 Section 33.1A of the requirement to disclose transactions with other wholly-owned companies within the same group.

25
Ultimate controlling party

The company's parent company is Glacier Energy Services Holdings Limited. The ultimate holding company and controlling party is Glacier Topco Limited.

Glacier Topco Limited 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 accounts are available from the registered office.

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