Company registration number SC492748 (Scotland)
Island Offshore Subsea UK Limited
financial statements
for the year ended 31 December 2023
Pages for filing with Registrar
Island Offshore Subsea UK Limited
Company information
Director
Havard Ulstein
Secretary
Henderson Loggie LLP
Company number
SC492748
Registered office
45 Queens Road
Aberdeen
AB15 4ZN
Auditor
Anderson Anderson & Brown Audit LLP
Kingshill View
Prime Four Business Park
Kingswells
AB15 8PU
Island Offshore Subsea UK Limited
Contents
Page
Director's responsibilities statement
1
Balance sheet
2
Notes to the financial statements
3 - 7
Island Offshore Subsea UK Limited
Director's responsibilities statement
for the year ended 31 December 2023
- 1 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Island Offshore Subsea UK Limited
Balance Sheet
as at 31 December 2023
31 December 2023
- 2 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
3
58,582
2,101,177
Cash at bank and in hand
75,847
108,528
134,429
2,209,705
Creditors: amounts falling due within one year
4
(17,813)
(2,103,457)
Net current assets
116,616
106,248
Capital and reserves
Called up share capital
5
1,000
1,000
Profit and loss reserves
6
115,616
105,248
Total equity
116,616
106,248

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 and in accordance with the provisions of FRS 102 Section 1A – small entities.

The financial statements were approved by the board of directors and authorised for issue on 17 October 2024 and are signed on its behalf by:
Havard Ulstein
Director
Company Registration No. SC492748
Island Offshore Subsea UK Limited
Notes to the financial statements
for the year ended 31 December 2023
- 3 -
1
Accounting policies
Company information

Island Offshore Subsea UK Limited is a private company limited by shares incorporated in Scotland. The registered office is 45 Queens Road, Aberdeen, AB15 4ZN.

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 £.

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

The financial statements of the company are consolidated in the financial statements of Island Offshore Shipholding LP. These consolidated financial statements are available from Borgstein AS, c/o Borgstein AS, Stålhaugen 9, 6065 Ulsteinvik, Norway.

1.2
Going concern

The company is dependent on the financial support from its ultimate parent company, Island Offshore Shipholding L.P (“the Group”) for its ability to continue as a going concern. The director has confirmed that the company retains the financial support of the group. Noted below is an extract from the 31 December 2023 audited financial statements of Island Offshore Shipholding L.P. detailing issues facing the group and the discussions regarding its financing.true

"The vessels owned by the Group operate in the offshore service market, which has suffered a significant downturn from 2015 due to the low oil price and reduced offshore activity.

The previous Restructuring Agreement with secured and unsecured lenders was made effective in May 2020, whereby unsecured lenders agreed to extend facilities until the end of 2023 or later at amended interest terms. All ship owning entities within the IOSH group have serviced all debt in accordance with the Restructuring Agreement, including both amortisation and interest. Since December 2023, agreement has been reached with the senior secured lenders and unsecured lenders financing the ship-owning companies. The agreements include extended runways and amended amortisation and interest terms.

The offshore service market has continued to improve in 2024, and the Group has a satisfactory backlog for the fleet. The assessment is that the Island Offshore Shipholding Group has the resources, organisation, competence, assets and customer base for the Company to continue being a going concern.

In accordance with the Norwegian Accounting Act § 3-3a the Board of Directors thus confirms that the financial statements are prepared on the basis of a going concern assumption. The basis for this assumption is the financial position, cash, and backlog of the Group at 31/12/23, and that a sustainable financing agreement has been agreed and made effective with secured and unsecured lenders in December 2023."

As a result, the director has continued to adopt the going concern basis of accounting in preparing the annual financial statements.

 

Island Offshore Subsea UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 4 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 dispatch of the goods), 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 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 are recoverable.

1.4
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.5
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 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.

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.

Island Offshore Subsea UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 5 -
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.

1.6
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.

1.7
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.

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.

1.8
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.

Island Offshore Subsea UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 6 -
2
Employees

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

2023
2022
Number
Number
Total
2
2
3
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
-
0
1,221,275
Corporation tax recoverable
9,697
-
0
Amounts owed by group undertakings
14,046
-
0
Other debtors
2,275
921
Prepayments and accrued income
-
0
862,809
26,018
2,085,005
Deferred tax asset (note )
32,564
16,172
58,582
2,101,177
4
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,651
-
0
Amounts due to group undertakings
-
0
1,220,255
Corporation tax
-
0
16,172
Accruals and deferred income
16,162
867,030
17,813
2,103,457

Amounts due to group undertakings relates to trade creditor balances due to group companies and outstanding at the year end.

5
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary shares of £1 each
1,000
1,000
Island Offshore Subsea UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 7 -
6
Profit and loss reserves

Profit and loss reserves include all current and prior years retained profit and losses.

7
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 auditor was Derek Mair (Senior Statutory Auditor) for and on behalf of Anderson Anderson & Brown Audit LLP
8
Parent company

The company is a subsidiary of Island Offshore UK Limited, a company incorporated in the UK.

 

The ultimate parent undertaking is Island Offshore Shipholding LP, incorporated in the Cayman Islands. The largest and smallest group in which the results of the company are consolidated is the Island Offshore Shipholding LP. Consolidated accounts of this company are available to the public and may be obtained from Borgstein AS, c/o Borgstein AS, Stålhaugen 9, 6065 Ulsteinvik, Norway.

 

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