Company Registration No. SC210525 (Scotland)
X C D LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
PAGES FOR FILING WITH REGISTRAR
X C D LIMITED
CONTENTS
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 12
X C D LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 29 FEBRUARY 2024
29 February 2024
2024
2023
Notes
£
£
£
£
Non-current assets
Investment property
5
212,078
212,078
Investments
6
2,488
2,488
214,566
214,566
Current assets
Trade and other receivables
7
19,351
278,426
Cash and cash equivalents
235,999
133,193
255,350
411,619
Current liabilities
8
(23,984)
(170,435)
Net current assets
231,366
241,184
Net assets
445,932
455,750
Equity
Called up share capital
10
10,000
10,000
Retained earnings
11
435,932
445,750
Total equity
445,932
455,750
The directors of the company have elected not to include a copy of the income statement within the financial statements.
The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to small companies' regime.
The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
Mr Ian Mills
Director
Company Registration No. SC210525
- 1 -
X C D LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
Share capital
Retained earnings
Total
£
£
£
Balance at 1 March 2022
10,000
425,275
435,275
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
20,475
20,475
Balance at 28 February 2023
10,000
445,750
455,750
Year ended 29 February 2024:
Loss and total comprehensive expense for the year
-
(9,818)
(9,818)
Balance at 29 February 2024
10,000
435,932
445,932
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X C D LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
Company information
X C D Limited ("the company) is a private company limited by shares incorporated in Scotland. The registered office is 1 Rubislaw Terrace, Aberdeen, AB10 1XE. The activities range from new country entry, tax optimisation strategies, drilling, completion, logistics, subsea field development, managed pressure drilling, decommissioning, performance improvement and delivering energy transition projects including field life extension, CCS, blended hydrogen storage. The company is a wholly owned subsidiary of Exceed (XCD) Holdings Limited which prepares consolidated financial statements in which the company is included. The consolidated financial statements of Exceed (XCD) Holdings Limited are available from UK Companies House.
1.1
Accounting convention
The financial statements of the company for the year ended 29 February 2024 were authorised for issue by the board of directors on the date per the statement of financial position on page 8, and were signed on the board's behalf by Mr Ian Mills. The financial statements have been prepared in accordance with FRS 101 'Reduced Disclosure Framework' ("FRS 101") and using the historical cost convention. Monetary amounts in these financial statements are rounded to the nearest £.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare group financial statements as it is a wholly owned subsidiary of Exceed (XCD) Holdings Limited which prepares group financial statements that include the company and are publicly available.
In preparing these financial statements, the company applies the recognition, measurement and disclosure requirements of UK-adopted International Accounting Standards, but makes amendments where necessary in order to comply with the Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions have been taken:
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 10(d), 10(f), 16, 38A to 38D, 40A to 40D,111 and 134-136 of IAS 1 Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 30 and 31 of IAS Accounting Policies, Changes in Accounting Estimates and Errors;
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures; and
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
Where required, equivalent disclosures are given in the consolidated financial statements of Exceed (XCD) Holdings Limited. These consolidated financial statements can be obtained via the Companies House website (https://find-and-update.company-information.service.gov.uk/). Exceed (XCD) Holdings Limited's registered office is 1 Rubislaw Terrace, Aberdeen, AB10 1XE.
New accounting standards
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements requiring that an entity discloses its material accounting policies, instead of its significant accounting policies. There are no other amendments to accounting standards or IFRIC interpretations that are effective for the year ended 29 February 2024 that have had a material impact on the company.
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X C D LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
1.2
Going concern
At the time of approving the financial statementstrue and having considered external market conditions coupled with the company's and wider Exceed Group's financial forecasts, the directors are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The directors, therefore have made the informed judgement, at the same time as approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. In making this informed judgement, the directors have considered a period of at least 12 months from the date of approval of the financial statements. As a result, the directors have continued to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Property, plant and equipment
All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the financial year in which they are incurred.
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:
Office equipment
33 % straight line
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if its carrying amount is greater than its estimated recoverable amount.
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 income statement.
1.4
Investment properties
Investment properties are measured initially at cost, including transaction costs. Following initial recognition, the directors have opted to use the cost model to measure the company’s investment property. No depreciation is provided on investment properties under the true and fair override principal noted above.
Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of investment property, is recognised in the statement of profit or loss in the period of derecognition.
1.5
Non-current investments
Investments in subsidiaries, associates and joint ventures are held at historical cost less any applicable provision for impairment.
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X C D LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
1.6
Impairment of non-financial assets
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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X C D LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
1.7
Financial assets
The company classifies its financial assets into the following categories: at fair value through profit or loss ("FVTPL"), at fair value through other comprehensive income ("FVOCI") and at amortised cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. The company has no financial assets classified at FVTPL, FVOCI or any derivative financial instruments.
i) Financial assets at amortised cost
The company classified its financial assets as at amortised cost only if both of the following criteria are met:
The asset is held within a business model whose objective is to collect the contractual cash flows; and;
The contractual terms give rise to cash flows that are solely payments of principal and interest.
ii) Impairment of financial assets
Assets carried at amortised cost
The company assesses, at the end of each reporting period, whether there is objective evidence that a financial asset or group of financial assets is impaired. Refer to the note below.
iii) Trade and other receivables
Trade and other receivables are amounts due from customers for services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business, if longer), they are classified as current assets. If not, they are presented as non-current assets.
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The Company has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets.
1.8
Trade and other creditors
Trade and other creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects. Dividend distributions to the company’s shareholders are recognised as a liability in the company’s financial statements in the period in which the dividends are approved by the company’s shareholders.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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X C D LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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.
1.11
Rental income
Rental income from investment properties is recognised on a straight line basis over the term of the relevant lease and disclosed under other operating income. Initial direct costs incurred in negotiating and arranging a lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.12
Foreign exchange
The company’s financial statements are presented in sterling, which is also the company’s functional currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies, are recognised in the income statement.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.
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X C D LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
2
Critical accounting estimates and judgements
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Key sources of estimation uncertainty
Fair value of investment property
The investment property held by the company is measured using the cost model, however its fair value is disclosed within the financial statements. The fair value disclosed has been arrived at on the basis of valuation by the directors, made on an open market basis by reference to market evidence of transaction prices for similar properties.
Critical judgements in applying the company's accounting policies
The company has a minority interest in its subsidiary investment, Exceed (XCD) Canada Limited. The investment is treated as a subsidiary because the company can control this investment through holding the majority of the voting rights within it.
There are no other accounting estimates or judgements that have a significant effect on amounts recognised in the financial statements.
3
Employees
Staff costs are borne by the parent company Exceed (XCD) Holdings Limited. There is no recharge to X C D Limited in the current or prior year, reflecting the fact that the company has no employees other than the directors (2023: none).
- 8 -
X C D LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
4
Property, plant and equipment
Office equipment
£
Cost
At 28 February 2023
50,198
At 29 February 2024
50,198
Accumulated depreciation and impairment
At 28 February 2023
50,198
At 29 February 2024
50,198
Carrying amount
At 29 February 2024
At 28 February 2023
5
Investment property
£
Cost
At 1 March 2023 and 29 February 2024
212,078
The investment property (a residential flat) was purchased on 11 September 2013 for an open market value of £200,016. The directors subsequently adopted the cost model to measure the company's investment property. The fair value of investment property is estimated to be £239,000 (2023 - £239,000). The directors use available residential market data to assess fair value of the investment property.
6
Investments
2024
2023
£
£
Shares in group undertakings and participating interests
2,488
2,488
2,488
2,488
- 9 -
X C D LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
7
Trade and other receivables
2024
2023
£
£
Trade receivables
6,099
154,567
VAT recoverable
271
4,173
Amounts owed by fellow group undertakings
5,735
112,440
Other receivables
7,246
7,246
19,351
278,426
Amounts due from group undertakings are unsecured, interest free and repayable on demand.
8
Liabilities
2024
2023
Notes
£
£
Trade and other payables
9
23,984
170,435
9
Trade and other payables
2024
2023
£
£
Trade payables
2,626
1,567
Amounts owed to fellow group undertakings
4,807
2,130
Accruals and deferred income
16,550
18,250
Other payables
1
148,488
23,984
170,435
Amounts due to group undertakings are unsecured, interest free and repayable on demand.
10
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A ordinary shares of £1 each
5,000
5,000
5,000
5,000
B ordinary shares of £1 each
4,500
4,500
4,500
4,500
C ordinary shares of £1 each
500
500
500
500
10,000
10,000
10,000
10,000
The holders of the A ordinary shares are entitled to the profits generated from the Deepwater division. The holders of the B and C ordinary shares are entitled to the profits generated from the non-Deepwater division.
- 10 -
X C D LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
11
Retained earnings
Retained earnings reflect the aggregate of all profits and losses recognised through the income statement, less dividends paid throughout all periods up to the balance sheet date.
12
Financial commitments, guarantees and contingent liabilities
There is a floating charge, held by the bank, over the company’s assets.
13
Related party transactions
The company has taken advantage of the exemption under paragraph 8(k) of FRS 101 not to disclose transactions with fellow wholly owned members of the group.
Sale of goods
Purchase of goods
2024
2023
2024
2023
£
£
£
£
Entities with joint control or significant influence over the company
27,571
2,016
13,948
Other related parties
21,441
20,622
6,560
5,115
21,441
48,193
8,576
19,063
2024
2023
Amounts due to related parties
£
£
Entities with joint control or significant influence over the company
2,016
1,831
Other related parties
1,763
299
3,779
2,130
2024
2023
Amounts due from related parties
£
£
Other related parties
5,735
119,854
Other related parties relate to fellow subsidiary companies within the Exceed (XCD) Holdings Limited group. Exceed (XCD) Holdings Limited's registered office is 1 Rubislaw Terrace, Aberdeen, AB10 1XE.
14
Controlling party
The immediate and ultimate parent of the company is Exceed (XCD) Holdings Limited. Exceed (XCD) Holdings Limited is a company registered in Scotland and is the smallest and largest group to prepare consolidated financial statements, which includes the company's financial results.
- 11 -
X C D LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
15
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Stephen McIlwaine and the auditor was Johnston Carmichael LLP.
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