Company registration number 04598550 (England and Wales)
TEIGNMOUTH MARITIME SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TEIGNMOUTH MARITIME SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr P N J Stenner
Mr G H Squirrell
Mr R Full
Ms T Redhead
Company number
04598550
Registered office
Unit 20 and 22 b
Dawlish Business Park
Dawlish
Devon
EX7 0NH
Auditor
Darnells Audit Limited
Quay House
Quay Road
Newton Abbot
Devon
TQ12 2BU
TEIGNMOUTH MARITIME SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 31
TEIGNMOUTH MARITIME SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Fair review of the recent historical financial results
The directors of Teignmouth Maritime Services Limited consider that the Key Financial Performance Indicators (KFPI's) are Sales Revenue, Gross Margin, Earnings before Interest, Corporation Tax, Depreciation and Amortisation (EBITDA), the Net Assets attributable to the Shareholders Interest together with the available Cash Resources contained therein. Together these KFPI's represent the principal indicators that demonstrate the quality of the trading performance and overall financial strength of the company and, separately, its fifty percent interest in the Equity of Hesselberg Hydro (UK) Limited. An overview of the results, which reflect these performance indicators, for both the latest period and the prior year, is given below.
2024
2023
£'000
£'000
Teignmouth Maritime Services Limited
Sales revenue
27,783
20,664
Gross profit
10,798
7,175
Percentage margin
38.87%
34.72%
EBITDA
6,424
4,148
Cash at bank
5,924
3,344
Net assets
7,621
5,208
2024
2023
£'000
£'000
Hesselberg Hydro (UK) Limited
Sales revenue
10,747
2,110
Gross profit
2,736
895
Percentage margin
25.46%
42.42%
EBITDA
2,374
606
Cash at bank
1,553
523
Net assets
933
670
Note:- Although the company only owns 50% of the issued share capital of Hesselberg Hydro (UK) Limited (HH), for the purpose of explanation and better understanding the results shown in the table immediately above represent 100% of the audited trading results achieved by HH in the year ended 31st March 2024, and the comparative year to 31st March 2023.
The table containing the results of Teignmouth Maritime Services Limited excludes any profit contribution from HH, apart from a dividend received of £750,000.
TEIGNMOUTH MARITIME SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Executive Summary Teignmouth Maritime Services Limited (“TMS”), a specialised marine civil engineering contractor, has a proud history of providing robust, safe, and efficient solutions for marine infrastructure in the United Kingdom. The services provided by our associated company Hesselberg Hydro (UK) Limited, (“HH”) which original business was founded in Norway in 1986, specialises in the extensive use of Asphalt Coatings to provide protection to Dams, River, and Coastal erosion projects. TMS offers a broad range of Maritime Civil Engineering solutions, including coastal defence works, quay wall construction, under water concreting, dredging, installation of pontoons and marine piling. Our broadly based engineering expertise, a sterling safety record, and a commitment to quality, have combined to make TMS a dependable partner across the market in the United Kingdom. Our sister company, Marine Plant Hire (UK) Limited, which, was demerged from TMS on the 1st January 2023 and has shareholders in common, works closely with complements the activities of TMS through the charter and hire of its range of sea going Vessels and major plant items. The Statement of Income, which forms page 11 to these Accounts, records that the financial results for the year ended 31 March 2024, showing the Profit before taxation of £7,048,168, were a record. Within those results is the sum of £750,000 being a dividend received from our associated company HH. |
The Current Year
The current financial year at TMS has started in an encouraging manner with contracts, either in progress or secured, amounting to £10.2 million. In addition, the contracts team have £10.5 million of contracts almost secured and the team believe that in respect of further tenders already submitted, the Company has a high level of expectancy of securing in the region of £5.3 million
Over the past year, our dedicated and highly experienced team of Estimators and Quantity Surveyors at TMS have been and are continuing to work to their capacity.
As reported in last year's Strategic Review, our Associated Company started that year with the benefit of a £20million contract. This project, of which the first phase has now been completed, forms a part of the Southern Shoreline project at Canvey Island in Essex, undertaken to strengthen the Southern Sea Wall and provide erosion protection. The works, which are expected to be completed over the next twelve months are being carried out by HH on behalf of the main contractor, Balfour Beatty. This project is incremental to HH's other normal business opportunities, which continue to be pursued.
Overall Performance Review
Again, as reported last year, TMS continues to see a growth in demand for its services, including, but not limited to, failing coastal and port infrastructures together with longer term environmental concerns.
Market Analysis
Current indicators suggest that the UK Maritime Civil Engineering Services market, where TMS and HH are well-positioned niche operators, is poised for sustained long-term growth. This optimistic outlook is underpinned by a diverse array of requirements. These include the reinstatement of failed river crossing structures, reservoir maintenance, coastal and sea defence projects, and the rehabilitation of neglected Military and Naval Port infrastructures. Additionally, significant opportunities exist in the redevelopment of Ports and Harbours and the restoration of deteriorating Coastal and Victorian Maritime facilities.
Moreover, the concept of Island Working – involving specialized projects on islands and remote coastal areas around the UK – further underscores the potential for expansion and the strategic importance of TMS and HH in addressing these unique challenges
TEIGNMOUTH MARITIME SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Assessment of principal risks and uncertainties
The company's principal operational risks include the potential cost impact of adverse weather, difficult and unforeseen construction site conditions. Where those risks are capable of being identified at an early stage in the construction programme, the company attempts to introduce strategies to implement controls to minimise the worst effects upon the project concerned. The strategies employed include, an in-depth investigation of the risk and its potential effects, followed wherever possible by the introduction of operational alternatives to manage and mitigate the financial impact, accompanied, whenever possible by resorting, at the pre-contract stage, to less unfavourable terms associated with the project.
The company’s risks also include a reliance upon the underlying financial and commercial strength of both its immediate customer base and the company’s specialist sub-contractors, employed in key support roles in the construction process. This risk is managed by a robust credit control approach.
UK Economy risk
The degree of risk primarily relates to the extent and speed of the Company’s ability to react where there is an economic downturn, affecting those sectors within the construction industry we traditionally serve.
Historically, the company has managed to mitigate the worst elements of risk by always aiming to spread the workload over a broad number of sectors within our industry, including major civil engineering contractors, local authorities, port owners and operators, water utilities and a range of private clients.
To further manage this area of risk in times of a slowdown, and at the same time retain our dedicated workforce, the company seeks to redeploy members of its skilled workforce, freed from completed civil engineering projects, to carry out planned and preventative maintenance of the vessel fleet and major plant assets owned and operated by Marine Plant Hire (UK) Limited. Since the acquisition of Hesselberg Hydro, a sharing of resource has been adopted which further evens out the utilisation of the workforce, this works well in both directions.
Significant focus and attention are placed on minimising potential bad debt risk. The company maintains a dedicated credit control department where strict criteria are applied to the recovery of all debts within agreed credit terms. New customers are carefully vetted, including the use of credit agency references, and ensuring credit terms are only agreed within strict limits, approved by the Directors.
Change of government in the UK presents an opportunity for TMS to leverage its size and flexibility within the marine civil engineering sector. Regardless of shifts in policy or budget allocations, TMS's ability to adapt and pivot across various segments of the maritime market positions us advantageously. Should a new administration prioritise environmental sustainability, we are prepared to expand our involvement in coastal defence and climate resilience projects. Conversely, if the focus shifts towards infrastructure modernisation or defence, our expertise in refurbishing Naval and Military ports ensures we can capitalize on those opportunities. Our strategic adaptability allows us to thrive under varying governmental policies, making any changes in spending work to our benefit.
TEIGNMOUTH MARITIME SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Margin Risk
This risk relates to our ability to accurately assess the costs of projects at the tendering stage and the subsequent control of those costs down to the final delivery of a completed project. In addition, there are inherent risks, which arise because of specific contractual terms and conditions being imposed within a particular contract. The company’s ability to manage and mitigate this area of risk is achieved through the company’s formalised bid review process and contractual control procedures, overseen by the Commercial Director’s department.
To maintain and improve margins and, at the same time mitigate risk, the company carries out systematic reviews of the methodology and cost implications of work tendered for. These include situation reviews (SWOT analysis) conducted by the directors as part of a process involving meetings with the estimators, project managers and other members of the project management team. An extension of this process is carried through to contract completion, involving continuous reviews of actual costs to forecasts. The results of the reviews are interrogated during a project to see what variations to working methodologies it may be possible to employ to secure the required margin over the lifespan of the project.
Inflation risk
At the present time there are fewer signs of a continuation of the recent trend in inflationary pressures upon certain of the key areas within the company’s cost base.
The company seeks various ways to mitigate the full impact of cost inflation upon our margins. These include maintaining a close contact with our key suppliers, contemporaneously reducing lead times between the award of a contract and the start date of a project and, where possible, committing to early ordering of raw materials, as opposed to a “Just in time” approach.
As a result of the company’s strong liquidity position, some mitigation of the full effects of cost inflation has been possible, where our bids for raw materials, involving significant quantities of timber and or steel, the subject of short periods in the validity of supplier prices, is, in most cases, capable of being satisfactorily negotiated, agreed, and the price locked in.
Nevertheless, the unpredictability of cost inflation always remains a source of concern and vigilance.
Skilled Workforce Shortages
The need to train and retain a skilled workforce is of paramount importance to ensure the overall longer-term success of the business. We seek to mitigate this risk by monitoring the training requirements of each of our individual employees. An essential part of this process is to provide our employees with the best practical experience available and to ensure that individuals are given the opportunity to develop their professional engineering and other relevant skills, which in turn provides them with worthwhile opportunities for progression within the Company.
As a part of the Company’s training programme, regular reviews are conducted to ensure the most appropriate personnel are deployed to projects. This monitoring process is completed by a dedicated member of staff logging and managing a bespoke training database.
Supply Chain Risks
The UK marine civil engineering sector faces several supply chain risks that could impact project timelines and costs. A significant risk is the diversion of goods shipped to the UK due to the increased activity of African pirates targeting major shipping lanes. These disruptions can lead to delays in the delivery of critical materials and equipment, which are essential for large-scale projects such as port redevelopments, coastal defences, and maritime facility restorations. The unpredictability of such attacks necessitates rerouting ships through longer, safer routes, thereby increasing shipping times and costs.
This risk area is managed in a similar manner to the Inflation Risk, where the importance of early procurement of materials and bought in services are key.
TEIGNMOUTH MARITIME SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Health and Safety
The management of Health and Safety includes both internal and external audits and inspections. Contributions from regular weekly meetings within the Health & Safety Department, Health & Safety Committee meetings and Monthly Operational Management Meetings track and plan company progression and education of health and safety within our organisation. Internal annual, bi-annual & GAP audits ensure that all Health & Safety documentation within the organisation are up to date and in line with current government legislation.
Periodic reviews carried out by external accreditation bodies contribute to improvements in Health and Safety within our organisation. The entire process is monitored by our dedicated Director of Health and Safety.
The Company always seeks to comply with relevant Government guidelines, to provide a framework for operations to be carried out in a safe manner. This applies in our Offices, Workshops, on board our owned and chartered Vessels and throughout our construction sites.
The company recognises the paramount importance of the safety and wellbeing of the Company’s employees and to that end is continuously seeking to improve the management of the risks associated with Health, Safety and Wellbeing, in an effective manner.
Legislative Risks
The Company always strives to comply with applicable legislation, including various Construction Industry and the Maritime Coastguard Agency Schemes.
Competitive risks The Company recognises that it is always exposed to competitive third-party civil engineering businesses operating within our traditional market. The Company aims to mitigate these risks through a combination of early-stage personal interaction with our customers. This includes advice aimed at cost reduction, often through the adoption of construction methodology with a view to achieving a competitive price advantage. Financial instruments |
The company's primary financial instruments include Trade debtors, Trade creditors, Intra-group loans and a limited recourse to Asset-Backed Finance, currently utilized for the company's vehicles. In some projects, cash flow can be restricted due to the use of Performance Bonds; however, these bonds have never been called upon. Where allowable the company has opted to essentially self-insure rather than seek a bond from the marketplace. Due to the nature of the financial instruments used by the company, there is little or no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments it employs, is summarised below: Liquidity risk is managed by the Chief Financial Officer monitoring cash flow forecasts and maintaining a balance between available cash resources and payment terms with third party suppliers and other creditors. Trade debtors are managed through the strict control of credit and by the implementation of policies that require appropriate credit checks on both existing and potential new customers. Intra-group loans to group undertakings include a loan made in January 2023 which is secured and bears interest at a fixed rate of 1.5% per annum. All other loans to group undertakings are unsecured and interest-free.
|
Mr R Full
Director
7 August 2024
TEIGNMOUTH MARITIME SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
The directors present their annual report and financial statements for the year ended 31 March 2024. Information required to be disclosed under Schedule 7 of the Companies Act 2006 is set out in the Strategic Report on pages 1-5.
Principal activities
The principal activity of the company during the year continued to be that of marine civil engineering contractors and marine vessel and plant hire specialists.
Results and dividends
The results for the year are set out on page 11.
Ordinary dividends were paid amounting to £3,061,026.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P N J Stenner
Mr G H Squirrell
Mr R Full
Ms T Redhead
Future developments
The directors remain very optimistic and upbeat as they continue their assertive focus on reducing costs and improving margins, whilst striving to expand the company's operations and maintain turnover in the upcoming financial year.
Auditor
The auditor, Darnells Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
TEIGNMOUTH MARITIME SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr R Full
Director
7 August 2024
TEIGNMOUTH MARITIME SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TEIGNMOUTH MARITIME SERVICES LIMITED
- 8 -
Opinion
We have audited the financial statements of Teignmouth Maritime Services Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
TEIGNMOUTH MARITIME SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TEIGNMOUTH MARITIME SERVICES LIMITED
- 9 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor'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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
However, the primary responsibility for the prevention and detection of fraud rests with those charged with governance of the company and management.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and determined the most significant are the Health & Safety at Work Act 1974, SOLAS 1974 and the Health & Safety Regulations 1992 & 1999 (as well as FRS102, the Companies Act 2006 and relevant tax compliance regulations in the UK).
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
We evaluated the conditions in the context of incentives and/or pressure to commit fraud, considering the opportunity to commit fraud and the potential rationalisation of the fraudulent act.
TEIGNMOUTH MARITIME SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TEIGNMOUTH MARITIME SERVICES LIMITED
- 10 -
Based on this understanding, we designed our audit procedures to detect material misstatements in respect of irregularities, including fraud, and to identify non-compliance with the laws and regulations above, as follows:
Enquiry of management and those charged with governance around actual and potential litigation and claims.
Enquiry of management in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing compliance with employment, environmental and health and safety legislation.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Investigated the rationale behind significant or unusual transactions.
We corroborated our enquiries through inspection of supporting documentation and records, as well as reviewing correspondence with regulatory bodies where available.
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.
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.
Paul Beard (Senior Statutory Auditor)
For and on behalf of Darnells Audit Limited
8 August 2024
Statutory Auditor
Quay House
Quay Road
Newton Abbot
Devon
TQ12 2BU
TEIGNMOUTH MARITIME SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
27,782,571
20,664,138
Cost of sales
(16,984,713)
(13,488,847)
Gross profit
10,797,858
7,175,291
Administrative expenses
(4,667,067)
(3,274,383)
Other operating income
89,139
75,676
Operating profit
4
6,219,930
3,976,584
Interest receivable and similar income
7
835,546
17,972
Interest payable and similar expenses
8
(7,308)
(42,798)
Profit before taxation
7,048,168
3,951,758
Tax on profit
9
(1,574,427)
(522,009)
Profit for the financial year
5,473,741
3,429,749
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TEIGNMOUTH MARITIME SERVICES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,664
Tangible assets
12
2,396,156
1,730,726
Investments
13
50,000
50,000
2,446,156
1,782,390
Current assets
Stocks
15
23,156
9,975
Debtors
16
4,540,851
5,523,620
Cash at bank and in hand
5,923,745
3,344,086
10,487,752
8,877,681
Creditors: amounts falling due within one year
17
(4,873,325)
(5,032,910)
Net current assets
5,614,427
3,844,771
Total assets less current liabilities
8,060,583
5,627,161
Creditors: amounts falling due after more than one year
18
(20,427)
(63,087)
Provisions for liabilities
Deferred tax liability
21
418,957
355,590
(418,957)
(355,590)
Net assets
7,621,199
5,208,484
Capital and reserves
Called up share capital
23
154,322
154,322
Share premium account
463,214
463,214
Own shares
(637,628)
(735,128)
Profit and loss reserves
24
7,641,291
5,326,076
Total equity
7,621,199
5,208,484
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 7 August 2024 and are signed on its behalf by:
Mr R Full
Ms T Redhead
Director
Director
Company registration number 04598550 (England and Wales)
TEIGNMOUTH MARITIME SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Share premium account
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
154,322
463,214
(735,128)
2,681,812
2,564,220
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
3,429,749
3,429,749
Dividends
10
-
-
-
(785,485)
(785,485)
Balance at 31 March 2023
154,322
463,214
(735,128)
5,326,076
5,208,484
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
5,473,741
5,473,741
Dividends
10
-
-
-
(3,061,026)
(3,061,026)
Other movements
-
-
97,500
(97,500)
-
Balance at 31 March 2024
154,322
463,214
(637,628)
7,641,291
7,621,199
TEIGNMOUTH MARITIME SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
6,627,834
3,587,664
Interest paid
(7,308)
(42,798)
Income taxes paid
(894,829)
(381,768)
Net cash inflow from operating activities
5,725,697
3,163,098
Investing activities
Proceeds from disposal of intangibles
88,285
Purchase of tangible fixed assets
(870,516)
(1,145,327)
Proceeds from disposal of tangible fixed assets
6,300
1,183,157
Interest received
85,546
17,972
Other income received from investments
750,000
Net cash (used in)/generated from investing activities
(28,670)
144,087
Financing activities
Repayment of bank loans
(9,887)
(232,365)
Payment of finance leases obligations
(46,455)
(133,898)
Dividends paid
(3,061,026)
(785,485)
Net cash used in financing activities
(3,117,368)
(1,151,748)
Net increase in cash and cash equivalents
2,579,659
2,155,437
Cash and cash equivalents at beginning of year
3,344,086
1,188,649
Cash and cash equivalents at end of year
5,923,745
3,344,086
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information
Teignmouth Maritime Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 20 and 22b Dawlish Business Park, Dawlish, Devon, EX7 0NH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Teignmouth Maritime Properties and Holdings Limited. These consolidated financial statements are available from its registered office: Unit 20, Dawlish Business Park, Dawlish, Devon EX7 ONH.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
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
1% per annum on a straight-line basis
Plant and equipment
10% per annum on a reducing balance basis
Fixtures and fittings
25% per annum on a reducing balance basis
Motor vehicles
25% per annum on a reducing balance basis
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 profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long-term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. 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.
1.8
Cash and cash equivalents
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.
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.9
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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.
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
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.
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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Contract values and outcomes
Valuations which include an estimate of costs to complete and remaining revenues are carried out monthly with particular consideration at the year end. These assessments may include a degree of inherent uncertainty when estimating contract profitability and any accruals for further costs to come that may be required.
At 31 March 2024 the accrual for further costs to come on contracts included in Gross amounts due to contract customers under Creditors falling due within one year totalled £553,718 (2023: £464,400).
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Marine and civil engineering contracting services
27,782,571
20,664,138
2024
2023
£
£
Other revenue
Interest income
85,546
17,972
All of the turnover above relates to the company's principal activities performed in the UK.
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
20
Fees payable to the company's auditor for the audit of the company's financial statements
15,750
18,750
Depreciation of owned tangible fixed assets
181,057
151,696
Depreciation of tangible fixed assets held under finance leases
21,847
17,450
Profit on disposal of tangible fixed assets
(4,118)
(9,631)
Amortisation of intangible assets
1,664
2,004
Profit on disposal of intangible assets
-
(88,285)
The profit on disposal of intangible assets of £Nil (2023: £88,285) arose on the transfer of a business to Marine Plant Hire (UK) Limited, a fellow subsidiary company.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
4
4
Operational staff
56
61
Administrative staff
19
19
Total
79
84
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,263,782
3,551,033
Social security costs
435,418
444,762
Pension costs
1,066,089
601,724
5,765,289
4,597,519
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
250,208
252,607
Company pension contributions to defined contribution schemes
118,835
79,388
369,043
331,995
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Directors' remuneration
(Continued)
- 22 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
153,694
146,576
Company pension contributions to defined contribution schemes
37,257
28,516
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
69,563
15,273
Interest receivable from group companies
15,983
2,699
Total interest revenue
85,546
17,972
Income from fixed asset investments
Income from participating interests - joint ventures
750,000
Total income
835,546
17,972
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
933
31,854
Interest on finance leases and hire purchase contracts
4,128
7,055
Other interest
2,247
3,889
7,308
42,798
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,570,359
561,382
Adjustments in respect of prior periods
(59,299)
Total current tax
1,511,060
561,382
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
2024
2023
£
£
(Continued)
- 23 -
Deferred tax
Origination and reversal of timing differences
63,367
(39,373)
Total tax charge
1,574,427
522,009
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
7,048,168
3,951,758
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,762,042
750,834
Tax effect of expenses that are not deductible in determining taxable profit
65,077
(1,692)
Tax effect of income not taxable in determining taxable profit
(187,500)
Adjustments in respect of prior years
(59,299)
Permanent capital allowances in excess of depreciation
(6,686)
(188,141)
Depreciation on assets not qualifying for tax allowances
793
381
Other non-reversing timing differences
(39,373)
Taxation charge for the year
1,574,427
522,009
10
Dividends
2024
2023
£
£
Interim paid
3,061,026
785,485
The dividends paid above were all paid to the directors or companies controlled by the directors.
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
40,000
Amortisation and impairment
At 1 April 2023
38,336
Amortisation charged for the year
1,664
At 31 March 2024
40,000
Carrying amount
At 31 March 2024
At 31 March 2023
1,664
12
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
284,393
1,349,704
72,586
450,230
2,156,913
Additions
515,950
122,895
19,356
212,315
870,516
Disposals
(1,024)
(15,162)
(16,186)
At 31 March 2024
800,343
1,471,575
91,942
647,383
3,011,243
Depreciation and impairment
At 1 April 2023
24,482
132,280
49,199
220,226
426,187
Depreciation charged in the year
3,172
122,487
8,430
68,815
202,904
Eliminated in respect of disposals
(503)
(13,501)
(14,004)
At 31 March 2024
27,654
254,264
57,629
275,540
615,087
Carrying amount
At 31 March 2024
772,689
1,217,311
34,313
371,843
2,396,156
At 31 March 2023
259,911
1,217,424
23,387
230,004
1,730,726
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
65,537
87,384
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in joint ventures
14
50,000
50,000
In addition to the above, the company holds 660,376 of its own shares with a nominal value of £66,038 (2023: £66,038).
14
Joint ventures
Details of the company's joint ventures at 31 March 2024 are as follows:
Name of undertaking
Registered office
Interest
% Held
held
Direct
Hesselberg Hydro (UK) Limited
Unit 20, Dawlish Business Park, Dawlish, DEVON, EX7 ONH
Ordinary shares
50.00
Investments in joint ventures are measured at cost less impairment on the basis that they represent shares in entities that are not publicly traded and the fair value cannot be measured reliably.
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
23,156
9,975
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,853,998
3,752,916
Gross amounts owed by contract customers
1,684,416
Amounts owed by group undertakings
792,794
1,321,747
Amounts owed by undertakings in which the company has a participating interest
32
148,952
Other debtors
44,486
38,284
Prepayments and accrued income
165,125
151,530
4,540,851
5,413,429
2024
2023
Amounts falling due after more than one year:
£
£
Unpaid share capital
110,191
Total debtors
4,540,851
5,523,620
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Debtors
(Continued)
- 26 -
Amounts owed by group undertakings include a balance of £734,673 (2023: £1,266,919) which is secured and bears interest at a fixed rate of 1.5% per annum. All other amounts owed by group undertakings are interest free and unsecured.
Amounts owed by undertakings in which the company has a participating interest are unsecured, interest free and repayable on demand.
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
10,142
9,909
Obligations under finance leases
20
32,539
46,454
Trade creditors
928,426
851,314
Gross amounts owed to contract customers
749,096
2,080,101
Corporation tax
1,010,537
394,306
Other taxation and social security
858,062
934,888
Other creditors
42,931
43,357
Accruals and deferred income
1,241,592
672,581
4,873,325
5,032,910
Included in Bank loans is a loan of £24,948 (2023: £34,835) secured by a fixed and floating charge over the company's assets - see note 19 to the financial statements.
Obligations under finance leases and hire purchase contracts are secured upon the assets acquired.
Included in Gross amounts owed to contract customers are accrued costs to come of £553,718 (2023: £464,400).
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
14,806
24,926
Obligations under finance leases
20
5,621
38,161
20,427
63,087
Bank loans are secured by a fixed and floating charge over the company's assets - see note 19 to the financial statements.
Obligations under finance leases and hire purchase contracts are secured upon the assets acquired.
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
19
Loans and overdrafts
2024
2023
£
£
Bank loans
24,948
34,835
Payable within one year
10,142
9,909
Payable after one year
14,806
24,926
The bank loans above comprise a Covid Bounce Back loan of £24,948 (2023: £34,835) which is unsecured, repayable by monthly instalments of £887 and bears interest at 2.5% per annum.
20
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
33,937
50,582
In two to five years
5,709
39,647
39,646
90,229
Less: future finance charges
(1,486)
(5,614)
38,160
84,615
Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
418,957
355,590
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Deferred taxation
(Continued)
- 28 -
2024
Movements in the year:
£
Liability at 1 April 2023
355,590
Charge to profit or loss
63,367
Liability at 31 March 2024
418,957
The deferred tax liability set out above is expected to reverse over the life of the related fixed assets.
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
364,422
214,700
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
15,432,230
15,432,230
154,322
154,322
By ordinary and special resolution on 3rd March 2022 the issued ordinary shares of 10 pence each were sub-divided into 1 pence shares. The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company. The company's ordinary - treasury shares are non-voting, non equity, non redeemable and have no dividend rights. Unpaid share capital holds no voting or distribution rights until such time they become paid.
Included in Debtors due after one year is unpaid share premium in relation to the above shares of £Nil (2023: £110,191) - see note 16 to the financial statements.
The company holds Treasury shares comprising 6,603,760 Ordinary of 1 pence each with a nominal value of £66,038, bought back from shareholders but not cancelled.
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
24
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
5,326,076
2,681,812
Profit for the year
5,473,741
3,429,749
Dividends declared and paid in the year
(3,061,026)
(785,485)
Other
(97,500)
-
At the end of the year
7,641,291
5,326,076
The reserves of the Company comprise the following:
Share Premium
Consideration received for shares issued above their nominal value net of transaction costs.
Share-based Payment Reserve
The cumulative share-based payment expense.
Treasury Shares
The fair value of the consideration paid by the Company to reacquire its own shares still in issue.
Profit and loss account
Cumulative profit and loss net of distribution to owners.
25
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sale of services
Purchase of services
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
48,153
44,425
48,153
44,425
Entities over which the entity has control, joint control or significant influence
160,052
45,756
5,745
19,740
Other related parties
58,171
97,848
1,357,134
271,760
Other related parties include fellow group companies which are not wholly-owned by the group and entities in which a director, or a member of a director's close family, has an interest.
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
25
Related party transactions
(Continued)
- 30 -
2024
2023
Amounts due to related parties
£
£
Other related parties
5,638
8,122
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities over which the entity has control, joint control or significant influence
58,153
202,020
26
Ultimate controlling party
The ultimate parent company is Teignmouth Maritime and Property Holdings Limited, a company incorporated in England & Wales whose registered office is Unit 20, Dawlish Business Park, Dawlish, Devon, EX7 ONH.
The ultimate controlling party is Mr P N J Stenner, the majority shareholder.
27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
5,473,741
3,429,749
Adjustments for:
Taxation charged
1,574,427
522,009
Finance costs
7,308
42,798
Investment income
(835,546)
(17,972)
Gain on disposal of tangible fixed assets
(4,118)
(9,631)
Gain on disposal of intangible assets
-
(88,285)
Amortisation and impairment of intangible assets
1,664
2,004
Depreciation and impairment of tangible fixed assets
202,904
169,146
Movements in working capital:
(Increase)/decrease in stocks
(13,181)
5,534
Decrease/(increase) in debtors
982,769
(2,184,762)
(Decrease)/increase in creditors
(762,134)
1,717,074
Cash generated from operations
6,627,834
3,587,664
TEIGNMOUTH MARITIME SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
28
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
3,344,086
2,579,659
5,923,745
Borrowings excluding overdrafts
(34,835)
9,887
(24,948)
Obligations under finance leases
(84,615)
46,455
(38,160)
3,224,636
2,636,001
5,860,637
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