Company registration number 05505237 (England and Wales)
TECHFLOW MARINE LIMITED
ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023
TECHFLOW MARINE LIMITED
COMPANY INFORMATION
Directors
J Straker
K B Beattie
G Clark
J C Fitzpatrick
K L Huntley
Company number
05505237
Registered office
Unit 4, Silverton Court
Northumberland Business Park
Cramlington
Northumberland
NE23 7RY
Auditor
Sumer Auditco Limited
Unit 2
Gosforth Park Avenue
Newcastle Upon Tyne
NE12 8EG
Bankers
Barclays Bank Plc
Northumbria House Unit 50
Cramlington
Northumberland
NE23 6QP
TECHFLOW MARINE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
TECHFLOW MARINE LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 JULY 2023
- 1 -

The directors present the strategic report for the period ended 31 July 2023.

Principal activities

The principal activity of the group is the selling of fluid transfer systems, serving markets within the Marine Transportation - Midstream and Downstream, Ports & Terminals and Renewable Energy Industries.

Review of the business

COVID-19 still impacted the period of trading and continued to slow the underlying positive development of the business as overseas opportunities were stunted by equipment shortages and excessive pricing for equipment and services. All key areas of the business suffered the consequences of reduced trading, but the trading base and offering to our existing client base and those enquiring into our new product lines remain firm for the coming trading year.

 

The demand for Techflow Marine’s engineering and application knowledge remains a positive constant and this has been demonstrated with expansion into the North and South American markets where our technology, offshore and onshore capabilities have been particularly welcomed in those two continents.

 

Despite difficult trading conditions experienced EBITDA excluding FOREX loss for the 18 month period was £1,020,996 (12 months to 31 January 2022 - £765,826), and group net assets as at 31 July 2023 was £8,555,794 (31 January 2022 - £9,830,060).

 

Future developments

The group is continuing to pursue development in current and future markets. It is enhancing and expanding its product range to new and existing sectors. It will look to further develop into all sectors where fluid transfer technology is required both offshore and onshore.

Principal risks and uncertainties

The management of the business and the execution of the group's strategy are subject to a number of risks. The board reviews these risks and puts in place policies to mitigate them. The key business and financial risks are:

 

Employees

The group understands the effect that the loss of key employees may have on the business and therefore provides competitive pay conditions to all its employees.

 

Environment, health and safety incidents

Appropriate measures are implemented to ensure the risk of any environmental and health and safety issues are minimised. The group currently holds a BS ISO 9001:2008 certificate for quality control and strives to maintain high standards in these areas.

 

Credit risk

The group monitors credit risk and considers that its current policy of strict credit checks meets its objectives of managing its exposure.

 

Liquidity risk

The directors regularly monitor the financial information to ensure that any risks in this area are considered on a timely basis.

 

Foreign exchange rate risk

In order to reduce the exposure to fluctuations in foreign exchange rates, the group holds amounts in bank accounts of foreign currencies.

TECHFLOW MARINE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
- 2 -
Key performance indicators

The directors consider turnover, gross profit margin, EBITDA (earnings before interest, tax, depreciation and amortisation) and EBITDA per employee to be the key measures of the group's performance.

 

•    Turnover has increased during the 18 month period to £32,908,436 (12 months to 31 January 2022 -     £18,604,431).

 

•    Gross profit margin has decreased in the 18 month period to 28.6% (12 months to 31 January 2022 -     30.2%).

 

•    EBITDA for the 18 month period was (£166,903) (12 months to 31 January 2022 - £740,219),

 

•    EBITDA excluding FOREX loss for the 18 month period was £1,020,996 (12 months to 31 January 2022 -    £765,826),

 

•    EBITDA per employee for the 18 month period was (£2,692) (12 months to 31 January 2022 - £12,135).

 

The directors consider the group's results to be satisfactory in the light of current trading conditions.

Going concern

The directors have assessed the parent company's and group's ability to continue as a going concern for the foreseeable future and the appropriateness of the preparation of the accounts on the going concern basis. In making such an assessment the directors have considered the parent company's and group's exposure to relevant commercial and economic forces effective at the date of approval of these accounts, including but not limited to: the forward order book; financial forecasts in excess of 12 months from accounts sign off, the group's performance since the reporting date, and the availability of facilities and resources to meet its working capital requirements.

 

The directors recognise that the economic climate remains challenging and the oil and gas industry is highly susceptible to liquidity and credit default. The strategy of the group to enhance and expand its product range to new and existing sectors, and intention to further develop into all sectors where fluid transfer technology is required both offshore and onshore will diversify the group’s customer base and help mitigate this risk. The directors have also implemented active measures to increase the efficiency of the business and increase the profitability to mitigate this risk.

 

In light of this the directors have a reasonable expectation that the parent company and group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

On behalf of the board

G Clark
Director
22 October 2024
TECHFLOW MARINE LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 JULY 2023
- 3 -

The directors present their annual report and financial statements for the period ended 31 July 2023.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

J Straker
B P Beattie
(Resigned 4 May 2024)
K B Beattie
G Clark
J C Fitzpatrick
K L Huntley
Auditor

In accordance with the company's articles, a resolution proposing that Sumer Auditco Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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. This includes information on future developments, post reporting date events and the principal risks and uncertainties of the group.

TECHFLOW MARINE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
- 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 auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
G Clark
Director
22 October 2024
TECHFLOW MARINE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TECHFLOW MARINE LIMITED
- 5 -
Opinion

We have audited the financial statements of Techflow Marine Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 July 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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:

TECHFLOW MARINE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TECHFLOW MARINE LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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 directors' responsibilities statement, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

TECHFLOW MARINE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TECHFLOW MARINE LIMITED
- 7 -
Capability of the audit in detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

 

The following laws and regulations were identified as being of significance to the entity:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Slater (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
Statutory Auditor
Unit 2
Gosforth Park Avenue
Newcastle Upon Tyne
NE12 8EG
22 October 2024
TECHFLOW MARINE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 JULY 2023
- 8 -
18 months
12 months
ended
ended
31 July      2023
31 January 2022
Notes
£
£
Turnover
3
32,908,436
18,604,431
Cost of sales
(23,484,124)
(12,982,110)
Gross profit
9,424,312
5,622,321
____________________________________________________________________________________________
Distribution costs
(10,376)
(17,147)
Depreciation
(527,009)
(169,624)
FOREX loss
(1,187,899)
(25,607)
Administrative expenses excluding depreciation and FOREX loss
(8,408,556)
(4,839,348)
Other operating income
15,616
-
EBITDA excluding FOREX loss
1,020,996
765,826
____________________________________________________________________________________________
Distribution costs
(10,376)
(17,147)
Administrative expenses
(10,123,464)
(5,034,579)
Other operating income
15,616
-
Operating (loss)/profit
4
(693,912)
570,595
Interest payable and similar expenses
7
(297,681)
(82,149)
(Loss)/profit before taxation
(991,593)
488,446
Tax on (loss)/profit
8
(383,171)
(62,837)
(Loss)/profit for the financial period
(1,374,764)
425,609
(Loss)/profit for the financial period is all attributable to the owners of the parent company.
TECHFLOW MARINE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 JULY 2023
- 9 -
18 months
12 months
ended
ended
31 July      2023
31 January 2022
£
£
(Loss)/profit for the period
(1,374,764)
425,609
Other comprehensive income
Currency translation gain taken to retained earnings
100,498
12,568
Total comprehensive income for the period
(1,274,266)
438,177
Total comprehensive income for the period is all attributable to the owners of the parent company.
TECHFLOW MARINE LIMITED
GROUP BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 10 -
31 July 2023
31 January 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,140,951
1,675,496
Current assets
Stocks
12
522,898
376,429
Debtors
13
23,199,545
20,860,398
Cash at bank and in hand
1,784,870
1,845,568
25,507,313
23,082,395
Creditors: amounts falling due within one year
14
(18,852,470)
(14,516,134)
Net current assets
6,654,843
8,566,261
Total assets less current liabilities
8,795,794
10,241,757
Creditors: amounts falling due after more than one year
15
(240,000)
(355,697)
Provisions for liabilities
Deferred tax liability
18
-
0
56,000
-
(56,000)
Net assets
8,555,794
9,830,060
Capital and reserves
Called up share capital
20
42,500
42,500
Capital redemption reserve
7,500
7,500
Profit and loss reserves
8,505,794
9,780,060
Total equity
8,555,794
9,830,060
The financial statements were approved by the board of directors and authorised for issue on 22 October 2024 and are signed on its behalf by:
G Clark
Director
Company registration number 05505237 (England and Wales)
TECHFLOW MARINE LIMITED
COMPANY BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 11 -
31 July 2023
31 January 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
644,137
518,257
Investments
10
132
132
644,269
518,389
Current assets
Stocks
12
483,246
376,429
Debtors
13
23,823,432
21,816,345
Cash at bank and in hand
1,598,596
1,843,508
25,905,274
24,036,282
Creditors: amounts falling due within one year
14
(18,669,583)
(14,069,038)
Net current assets
7,235,691
9,967,244
Total assets less current liabilities
7,879,960
10,485,633
Creditors: amounts falling due after more than one year
15
(240,000)
(355,697)
Provisions for liabilities
Deferred tax liability
18
-
0
56,000
-
(56,000)
Net assets
7,639,960
10,073,936
Capital and reserves
Called up share capital
20
42,500
42,500
Capital redemption reserve
7,500
7,500
Profit and loss reserves
7,589,960
10,023,936
Total equity
7,639,960
10,073,936

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the period was £2,433,976 (31 January 2022 - £682,053 profit).

The financial statements were approved by the board of directors and authorised for issue on 22 October 2024 and are signed on its behalf by:
G Clark
Director
Company registration number 05505237 (England and Wales)
TECHFLOW MARINE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JULY 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 February 2021
42,500
7,500
9,341,883
9,391,883
Year ended 31 January 2022:
Profit for the year
-
-
425,609
425,609
Other comprehensive income:
Currency translation differences
-
-
12,568
12,568
Total comprehensive income
-
-
438,177
438,177
Balance at 31 January 2022
42,500
7,500
9,780,060
9,830,060
Period ended 31 July 2023:
Loss for the period
-
-
(1,374,764)
(1,374,764)
Other comprehensive income:
Currency translation differences
-
-
100,498
100,498
Total comprehensive income
-
-
(1,274,266)
(1,274,266)
Balance at 31 July 2023
42,500
7,500
8,505,794
8,555,794
TECHFLOW MARINE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JULY 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 February 2021
42,500
7,500
9,341,883
9,391,883
Year ended 31 January 2022:
Profit and total comprehensive income for the year
-
-
682,053
682,053
Balance at 31 January 2022
42,500
7,500
10,023,936
10,073,936
Period ended 31 July 2023:
Loss and total comprehensive income for the period
-
-
(2,433,976)
(2,433,976)
Balance at 31 July 2023
42,500
7,500
7,589,960
7,639,960
TECHFLOW MARINE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 JULY 2023
- 14 -
31 July      2023
31 January 2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
2,971,348
1,878,920
Interest paid
(297,681)
(82,149)
Income taxes paid
(949,713)
(680,565)
Net cash inflow from operating activities
1,723,954
1,116,206
Investing activities
Purchase of tangible fixed assets
(511,122)
(1,508,534)
Movement on other loans
(700,843)
(193,320)
Net cash used in investing activities
(1,211,965)
(1,701,854)
Financing activities
Repayment of bank loans
(479,912)
(575,576)
Payment of finance leases obligations
(9,452)
(10,311)
Net cash used in financing activities
(489,364)
(585,887)
Net increase/(decrease) in cash and cash equivalents
22,625
(1,171,535)
Cash and cash equivalents at beginning of period
1,845,568
3,004,535
Effect of foreign exchange rates
(83,323)
12,568
Cash and cash equivalents at end of period
1,784,870
1,845,568
TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023
- 15 -
1
Accounting policies
Company information

Techflow Marine Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 4, Silverton Court, Northumberland Business Park, Cramlington, Northumberland, NE23 7RY.

 

The group consists of Techflow Marine Limited and all of its subsidiaries.

1.1
Reporting period

The reporting period was extended to 31 July 2023 for commercial reasons. The current period presents the financial statements of the group for 18 months from 1 February 2022 to 31 July 2023, and as such, the prior period financial statements (including the related notes) for the year ended 31 January 2022 are not entirely comparable.

1.2
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 £.

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

Techflow Marine Limited, as an individual entity, meets the definition of a qualifying entity per FRS 102 and has taken advantage of the exemption available in paragraph 1.12 of FRS 102 from presenting a company-only statement of cash flows. These consolidated financial statements include a consolidated statement of cash flows which include the cash flows of Techflow Marine Limited.

 

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Techflow Marine Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 July 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern

The directors have assessed the parent company's and group's ability to continue as a going concern for the foreseeable future and the appropriateness of the preparation of the accounts on the going concern basis. In making such an assessment the directors have considered the parent company's and group's exposure to relevant commercial and economic forces effective at the date of approval of these accounts, including but not limited to: the forward order book; financial forecasts in excess of 12 months from accounts sign off, the group's performance since the reporting date, and the availability of facilities and resources to meet its working capital requirements.

 

The directors recognise that the economic climate remains challenging and the oil and gas industry is highly susceptible to liquidity and credit default. The strategy of the group to enhance and expand its product range to new and existing sectors, and intention to further develop into all sectors where fluid transfer technology is required both offshore and onshore will diversify the group’s customer base and help mitigate this risk. The directors have also implemented active measures to increase the efficiency of the business and increase the profitability to mitigate this risk.

 

In light of this the directors have a reasonable expectation that the parent company and group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

1.5
Turnover

Turnover represents amounts receivable for the installation of hosing systems, exclusive of VAT and trade discounts.

 

In respect of long term contracts, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long term contracts is recognised by reference to the stage of completion. The stage of completion is calculated by reviewing milestones set out in the sales contracts against the work carried out up to the period end. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

 

Service income receivable for use of hosing systems is recognised on a straight line basis over the term of use.

1.6
Tangible fixed assets

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

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

Freehold land and buildings
5% straight line
Plant and equipment
10% straight line
Fixtures and fittings
25% reducing balance

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 recognised in the profit and loss account.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 17 -
1.8
Impairment of fixed assets

At each reporting period end date, the group 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).

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow moving items.

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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Long term contracts

Where the outcome of a long term contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a long term contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 debtors 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. Financial assets classified as receivable within one year are not amortised.

TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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 profit or loss.

 

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 profit or loss.

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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 19 -
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 group’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 if, and only if, there is 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, if considered material to the financial statements.

 

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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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 leased asset are consumed.

TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 20 -
1.17
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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment in assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability. There have been no indicators of impairments identified during the current financial year.

TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

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

Revenue recognition in respect of long term contracts

The group uses the percentage of completion method to recognise project revenue for fixed-price contracts. This method requires the directors to estimate the level of completion by reviewing the milestones set out in the sales contracts and measuring these against the work carried out at each reporting date. Variations to estimates could result in the over or under recognition of revenue.

Estimating value in use

Where an indication of impairment exists the directors will carry out an impairment review to determine the recoverable amount, which is the higher of fair value less costs to sell and value in use. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the asset and a suitable discount rate in order to calculate present value.

Determining residual values and useful economic lives of fixed assets

The group depreciate tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management.

 

Judgement is applied by management when determining the residual values of tangible assets. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life.

 

The carrying amount of tangible fixed assets at the reporting date was £2,140,951 (31 January 2022 - £1,675,496).

Recoverability of debtors

The group establishes a provision for debtors that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the ageing of the debtors, past experience of recoverability, and the credit profile of individual or groups of customers. No provision was deemed necessary by the directors at 31 July 2023 and 31 January 2022.

Stock provision

The group establishes a provision for any impairments in stock value identified. When assessing impairment the directors consider factors such as the estimated selling price and costs to complete and sell. No provision was deemed necessary by the directors at 31 July 2023 and 31 January 2022.

3
Turnover
31 July      2023
31 January 2022
£
£
Turnover analysed by class of business
Contract sales
29,301,145
17,959,891
Service income
3,607,291
644,540
32,908,436
18,604,431
TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
3
Turnover
(Continued)
- 22 -
31 July      2023
31 January 2022
£
£
Turnover analysed by geographical market
United Kingdom
590,043
361,846
Rest of the World
32,318,393
18,242,585
32,908,436
18,604,431
4
Operating (loss)/profit
31 July      2023
31 January 2022
£
£
Operating (loss)/profit for the period is stated after charging:
Exchange losses
1,187,899
25,607
Fees payable to the group's auditor for the audit of the group's financial statements
15,450
15,450
Depreciation of owned tangible fixed assets
527,009
169,624
Loss on disposal of tangible fixed assets
2,479
-
5
Employees

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

Group
Company
31 July      2023
31 January 2022
31 July      2023
31 January 2022
Number
Number
Number
Number
Admin
21
17
21
17
Directors
6
6
6
6
Engineers
30
33
30
33
Managers
5
5
5
5
Total
62
61
62
61
TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
5
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
31 July      2023
31 January 2022
31 July      2023
31 January 2022
£
£
£
£
Wages and salaries
4,625,072
2,952,318
4,340,423
2,952,318
Social security costs
512,168
335,508
512,168
335,508
Pension costs
176,104
150,465
176,104
150,465
5,313,344
3,438,291
5,028,695
3,438,291
6
Directors' remuneration
31 July      2023
31 January 2022
£
£
Remuneration for qualifying services
791,633
619,622
Company pension contributions to defined contribution schemes
17,412
41,004
809,045
660,626

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (31 January 2022 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
31 July      2023
31 January 2022
£
£
Remuneration for qualifying services
223,605
184,211
Company pension contributions to defined contribution schemes
4,768
3,179
7
Interest payable and similar expenses
31 July      2023
31 January 2022
£
£
Interest on bank overdrafts and loans
9,314
-
Other interest on financial liabilities
206,689
42,818
Other interest
81,678
39,331
Total finance costs
297,681
82,149
TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
- 24 -
8
Taxation
31 July      2023
31 January 2022
£
£
Current tax
Adjustments in respect of prior periods
-
0
(51,381)
Foreign current tax on profits for the current period
439,171
118,661
Total current tax
439,171
67,280
Deferred tax
Origination and reversal of timing differences
(56,000)
(4,443)
Total tax charge
383,171
62,837

The main rate of corporation tax increased to 25% from 1 April 2023 under the Finance Bill 2021. Deferred tax has been provided at the rates expected to be in place when the timing differences reverse. A marginal rate of 20.34% has been used for the period to 31 July 2023 when assessing the corporation tax charge as below.

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

31 July      2023
31 January 2022
£
£
(Loss)/profit before taxation
(991,593)
488,446
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 20.34% (31 January 2022: 19.00%)
(201,690)
92,805
Tax effect of expenses that are not deductible in determining taxable profit
8,939
159,341
Tax effect of income not taxable in determining taxable profit
(1,282)
(307,970)
Unutilised tax losses carried forward
544,002
-
0
Adjustments in respect of prior years
51,381
-
0
Effect of change in corporation tax rate
(96,579)
-
Foreign taxation
134,400
118,661
Deferred tax movement
(56,000)
-
0
Taxation charge
383,171
62,837
TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
- 25 -
9
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 February 2022
175,838
1,227,676
639,858
2,043,372
Additions
-
0
424,492
386,630
811,122
Disposals
-
0
-
0
(24,713)
(24,713)
Exchange adjustments
-
0
183,821
-
0
183,821
At 31 July 2023
175,838
1,835,989
1,001,775
3,013,602
Depreciation and impairment
At 1 February 2022
5,861
70,437
291,578
367,876
Depreciation charged in the period
12,536
268,738
245,735
527,009
Eliminated in respect of disposals
-
0
-
0
(22,234)
(22,234)
At 31 July 2023
18,397
339,175
515,079
872,651
Carrying amount
At 31 July 2023
157,441
1,496,814
486,696
2,140,951
At 31 January 2022
169,977
1,157,239
348,280
1,675,496
Company
Freehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 February 2022
175,838
639,858
815,696
Additions
-
0
386,630
386,630
Disposals
-
0
(24,713)
(24,713)
At 31 July 2023
175,838
1,001,775
1,177,613
Depreciation and impairment
At 1 February 2022
5,861
291,578
297,439
Depreciation charged in the period
12,536
245,735
258,271
Eliminated in respect of disposals
-
0
(22,234)
(22,234)
At 31 July 2023
18,397
515,079
533,476
Carrying amount
At 31 July 2023
157,441
486,696
644,137
At 31 January 2022
169,977
348,280
518,257
TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
- 26 -
10
Fixed asset investments
Group
Company
31 July      2023
31 January 2022
31 July      2023
31 January 2022
Notes
£
£
£
£
Investments in subsidiaries
11
-
0
-
0
132
132
11
Subsidiaries

Details of the company's subsidiaries at 31 July 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Techflow Marine Industrial Services LTDA
Avenida Rio Branco, no. 43, 15th floor, Centro, Zip Code 20090-003, Rio de Janeiro, Brazil
Selling of hosing systems for the oil, gas and offshore industries.
Ordinary
99.00
12
Stocks
Group
Company
31 July      2023
31 January 2022
31 July      2023
31 January 2022
£
£
£
£
Raw materials and consumables
522,898
376,429
483,246
376,429
13
Debtors
Group
Company
31 July      2023
31 January 2022
31 July      2023
31 January 2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,248,023
1,808,270
2,025,593
1,687,801
Gross amounts owed by contract customers
11,822,407
10,995,269
11,822,407
10,995,269
Corporation tax recoverable
1,221,076
984,662
1,221,076
984,662
Amounts owed by group undertakings
-
-
1,103,601
1,094,906
Other debtors
5,512,200
4,504,672
5,511,005
4,487,339
Prepayments and accrued income
2,395,839
2,567,525
2,139,750
2,566,368
23,199,545
20,860,398
23,823,432
21,816,345
TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
- 27 -
14
Creditors: amounts falling due within one year
Group
Company
31 July      2023
31 January 2022
31 July      2023
31 January 2022
Notes
£
£
£
£
Bank loans
16
194,512
318,727
194,512
318,727
Obligations under finance leases
17
60,000
9,452
60,000
9,452
Payments received on account
2,754,185
68,297
2,754,185
68,297
Trade creditors
6,952,067
8,658,481
6,845,251
8,341,774
Corporation tax payable
352,599
626,727
352,599
626,727
Other taxation and social security
520,644
327,387
520,644
327,387
Other creditors
2,645,286
1,686,384
2,569,215
1,555,995
Accruals and deferred income
5,373,177
2,820,679
5,373,177
2,820,679
18,852,470
14,516,134
18,669,583
14,069,038

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

15
Creditors: amounts falling due after more than one year
Group
Company
31 July      2023
31 January 2022
31 July      2023
31 January 2022
Notes
£
£
£
£
Bank loans
16
-
0
355,697
-
0
355,697
Obligations under finance leases
17
240,000
-
0
240,000
-
0
240,000
355,697
240,000
355,697

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

16
Loans and overdrafts
Group
Company
31 July      2023
31 January 2022
31 July      2023
31 January 2022
£
£
£
£
Bank loans
194,512
674,424
194,512
674,424
Payable within one year
194,512
318,727
194,512
318,727
Payable after one year
-
0
355,697
-
0
355,697

Bank loans are repayable in monthly instalments until May 2024 and interest is charged at 2.07% per annum. Loans are secured on the assets of Techflow Marine Limited.

TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
- 28 -
17
Finance lease obligations
Group
Company
31 July      2023
31 January 2022
31 July      2023
31 January 2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
60,000
9,452
60,000
9,452
In two to five years
240,000
-
0
240,000
-
0
300,000
9,452
300,000
9,452

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. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
31 July      2023
31 January 2022
Group and Company
£
£
Accelerated capital allowances
-
56,000
Group
Company
31 July      2023
31 July      2023
Movements in the period:
£
£
Liability at 1 February 2022
56,000
56,000
Credit to profit or loss
(56,000)
(56,000)
Asset at 31 July 2023
-
-
19
Retirement benefit schemes
31 July      2023
31 January 2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
176,104
150,465
TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
19
Retirement benefit schemes
(Continued)
- 29 -

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

Included within creditors at year end are pension contributions payable of £17,007 (31 January 2022 - £23,370).

20
Share capital
Group and company
31 July      2023
31 January 2022
31 July      2023
31 January 2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
4,250,000
4,250,000
42,500
42,500
21
Financial commitments, guarantees and contingent liabilities

Bank guarantees given by the company are secured over all monies due, or to become due, from the company to Barclays Bank Plc.

 

No liabilities are expected to arise as a result of the above guarantees.

22
Related party transactions
Remuneration of key management personnel

More detailed information is shown in the directors' remuneration note (note 6).

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
31 July      2023
31 January 2022
£
£
Company
Companies under common influence
933,090
1,011,473

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
31 July      2023
31 January 2022
Balance
Balance
£
£
Company
Companies under common influence
1,532,072
1,072,118
Directors
2,202,777
1,473,733
TECHFLOW MARINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
- 30 -
23
Directors' transactions

Transactions in relation to loans with directors during the period are outlined in the table below:

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Directors' loan account
-
1,473,733
729,044
2,202,777
1,473,733
729,044
2,202,777

There are no fixed terms for repayment or interest payable on the loan.

24
Cash generated from group operations
31 July      2023
31 January 2022
£
£
(Loss)/profit for the period after tax
(1,374,764)
425,609
Adjustments for:
Taxation charged
383,171
62,837
Finance costs
297,681
82,149
Loss on disposal of tangible fixed assets
2,479
-
Depreciation and impairment of tangible fixed assets
527,009
169,624
Movements in working capital:
Increase in stocks
(146,469)
(82,433)
Increase in debtors
(1,401,890)
(3,807,585)
Increase in creditors
4,684,131
5,028,719
Cash generated from operations
2,971,348
1,878,920
25
Analysis of changes in net funds - group
1 February 2022
Cash flows
New finance leases
Exchange rate movements
31 July 2023
£
£
£
£
£
Cash at bank and in hand
1,845,568
22,625
-
(83,323)
1,784,870
Borrowings excluding overdrafts
(674,424)
479,912
-
-
(194,512)
Obligations under finance leases
(9,452)
9,452
(300,000)
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1,161,692
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(300,000)
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