Company Registration No. SC170383 (Scotland)
GLACIER MACHINING SOLUTIONS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
GLACIER MACHINING SOLUTIONS LIMITED
COMPANY INFORMATION
Director
S Martin
S Smart
Secretary
Blackwood Partners LLP
S Martin
Company number
SC170383
Registered office
Blackwood House
Union Grove Lane
Aberdeen
AB10 6XU
Auditor
Johnston Carmichael LLP
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
GLACIER MACHINING SOLUTIONS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
GLACIER MACHINING SOLUTIONS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
6
76,094
56,381
Current assets
Stocks
691,276
712,286
Debtors
7
7,950,423
6,822,251
Cash at bank and in hand
14,374
4,842
8,656,073
7,539,379
Creditors: amounts falling due within one year
8
(4,206,056)
(3,736,029)
Net current assets
4,450,017
3,803,350
Total assets less current liabilities
4,526,111
3,859,731
Creditors: amounts falling due after more than one year
9
(97,719)
(154,688)
Net assets
4,428,392
3,705,043
Capital and reserves
Called up share capital
10
1,116,511
1,116,511
Profit and loss reserves
10
3,311,881
2,588,532
Total equity
4,428,392
3,705,043
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
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. SC170383
GLACIER MACHINING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information
Glacier Machining Solutions Limited (SC170383) 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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
1.2
Going concern
The company’s financial results for the year ended 31 March 2024 are positive, with noted improvements in financial underlying performance from the prior year.
The company meets its day to day working capital requirements with the support of a group Confidential Invoice Discounting (“CID”) facility, which 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 net invoiced sales of goods and services, excluding value added tax and is recognised in the financial statements when cash has been received or is receivable.
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 the provision of engineering services, which are primarily short-term, is recognised 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.
GLACIER MACHINING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
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
25% to 50% 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.
1.5
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 and work in progress
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.
1.7
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.
GLACIER MACHINING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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.
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 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.
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
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.
GLACIER MACHINING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
1.11
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.
1.12
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.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.14
Exceptional items comprise costs which the directors consider are material to the profit and loss account, that their 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.
In the directors opinion, there are no judgements or key sources of estimation uncertainty that have a significant effect on amounts recognised in the financial statements.
GLACIER MACHINING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
3
Exceptional item
2024
2023
£
£
Expenditure
Impairment of amounts due from group
550,000
200,000
The amount reflects the impairment of amounts due from fellow group subsidiaries which are not expected to be recovered.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
26
25
5
Taxation
While the company has generated taxable profits in the current and prior years, no current tax liability arises due to the company utilising group relief surrendered from the wider group in both current and prior years. This group relief has not been paid for by the company. The company does not have any deferred tax in either current or prior year.
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2023
2,214,372
Additions
63,389
Disposals
(10,203)
At 31 March 2024
2,267,558
Depreciation and impairment
At 1 April 2023
2,157,991
Depreciation charged in the year
43,676
Eliminated in respect of disposals
(10,203)
At 31 March 2024
2,191,464
Carrying amount
At 31 March 2024
76,094
At 31 March 2023
56,381
GLACIER MACHINING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
612,806
598,451
Amounts owed by group undertakings
7,124,174
6,211,529
Other debtors
213,443
12,271
7,950,423
6,822,251
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
135,329
Trade creditors
382,177
263,429
Amounts owed to group undertakings
3,278,379
2,721,173
Taxation and social security
581
Other creditors
545,500
615,517
4,206,056
3,736,029
Bank loans and overdrafts represent an invoice finance facility which is secured by a floating charge over assets of the company. Obligations under finance leases totalling £78,847 (2023 - £68,749) are included in the other creditors and are secured over the assets to which they relate.
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
97,719
154,688
Other creditors above represent obligations under finance leases and are secured over the assets to which they relate.
10
Called up share capital and reserves
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,116,511
1,116,511
1,116,511
1,116,511
Profit and loss reserves represent cumulative profits and losses, net of dividends.
GLACIER MACHINING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Stephen McIlwaine.
The auditor was Johnston Carmichael LLP.
12
Financial commitments, guarantees and contingent liabilities
The company has provided a cross guarantee as part of the group's security obligations to the 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.
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
153,038
104,622
14
Related party transactions
The company has taken advantage of the exemption available in FRS 102 1A whereby it has not disclosed transactions with wholly owned members of the group.
15
Parent company
The immediate parent company is Glacier Energy Services Holdings Limited, which has its registered office at Blackwood House, Union Grove Lane, Aberdeen, AB10 6XU.
The ultimate parent and controlling 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.