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REGISTERED NUMBER: 04005938 (England and Wales)






















Parkol Marine Engineering Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st May 2024






Parkol Marine Engineering Limited (Registered number: 04005938)






Contents of the Financial Statements
for the year ended 31st May 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


Parkol Marine Engineering Limited

Company Information
for the year ended 31st May 2024







DIRECTORS: J R Morrison
I D A Paton
A J Oliver
J S Morrison
S Atkinson





REGISTERED OFFICE: Eskside Wharf
Church Street
Whitby
North Yorkshire
Y022 4AE





REGISTERED NUMBER: 04005938 (England and Wales)





AUDITORS: Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire
HU2 8BA

Parkol Marine Engineering Limited (Registered number: 04005938)

Strategic Report
for the year ended 31st May 2024

The directors present their strategic report for the year ended 31st May 2024.

REVIEW OF BUSINESS
In light of the sustained poor economic climate, The Directors are pleased with the Company's performance for the period ending 31st May 2024.

Overall turnover reduced by £622k to £11,418,295 (2023 £12,040,932) which was mainly due to delayed completions (due to supply chain delays) of prior year boat builds which in turn meant delayed starts on the current year builds.

Gross profit margin increased to 15.8% (2023 7.3% and 2022 10.2%). This was partly due to £360k of office salaries being moved to 'administration costs' from 'cost of sales' plus a return to normal profit margins.

The Company continues to be successful in attracting new customers by providing a complete service from design to construction, service and maintenance.

The business continues to invest in systems and infrastructure to sustain growth and ensures that we continue to offer the best possible service to our customers.

The Company bid on public and private tenders and achieved an excellent success rate. These bids are supported by investment in new staff, systems and business certifications.

Key Performance Indicators

The Directors closely monitor cash flow and working capital and use several KPI's to further monitor the Company's performance. These include a range of financial and operational ratios as follows:

- Gross profit/turnover
- Operating profit/turnover
- Debtor days
- Work in progress days
- Cash balance
- Staff utilisation
- Actual vs budgeted direct labour hours
- Actual vs budgeted direct materials and stock purchases
- Order book profile

The Directors are involved in the day to day activities of the company which also allows them to monitor performance.The operational performance indicators are commercially sensitive and have not been disclosed.


Parkol Marine Engineering Limited (Registered number: 04005938)

Strategic Report
for the year ended 31st May 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The directors are aware of the various risks inherent in the business and meet regularly to consider them. The key business risks are:

Market risk:
Although rates are less than prior recent years, a continued period of inflation, high interest rates and economic uncertainty present financial risk. This has led to lower enquiries in certain sectors.

Long term contracts are monitored regularly and managed very closely. Forecasting models are updated and reviewed on a regular basis and the Directors are confident of maintaining financial security.

Foreign currency risk:
Foreign currency fluctuations are a potential financial risk to the Company. Currency requirements are monitored on a contract by contract basis and measures taken in the contract to safeguard against short and medium term risks. Contract terms either pass on currency risks to customers or forward currency contracts are utilised to fix long-term contract rates.

Credit risk:
The Company raises milestone invoices on long term contracts in line with agreed terms in order to mitigate credit risk.

Staff risk:
The Company has been exposed to a lack of supply of skilled shipbuilding labour in recent years. This has been mitigated by utilising subcontracted agency labour where required.

FUTURE DEVELOPMENTS
The Company continues to review and develop its internal systems and processes to improve efficiencies and ensure its high standards are maintained. This includes certification to Quality and Environmental, occupational Health & Safety standards ISO standards and ERP systems.

Staff retention and recruitment helps expand the knowledge and experience within the Company. New measures and annual reviews of employment benefits which contributed positively to staff retention.

The client sector has being expanded to remove the historical risk presented by a reliance on one industry.

RESEARCH AND DEVELOPMENT ACTIVITIES
The Company is recognised throughout the industry for its innovative custom designs and retrofitting/refitting existing boats to a more efficient design. The Company is continually exploring innovative solutions to make boats more efficient in operation and in terms of space utilisation and enhancing crew safety and operational efficiency.

ON BEHALF OF THE BOARD:





S Atkinson - Director


21st February 2025

Parkol Marine Engineering Limited (Registered number: 04005938)

Report of the Directors
for the year ended 31st May 2024

The directors present their report with the financial statements of the Company for the year ended 31st May 2024.

PRINCIPAL ACTIVITIES
The principal activities of the Company in the year under review were those of ship building and repairing.

DIVIDENDS
The directors do not recommend the payment of a final dividend. The total distribution of dividends for the year ended 31st May 2024 will be £152,750.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st June 2023 to the date of this report.

J R Morrison
I D A Paton
A J Oliver
J S Morrison
S Atkinson

DISCLOSURE IN THE STRATEGIC REPORT
Disclosures required relating to financial instruments and future developments, including research and development activities, are set out in the Strategic Report in accordance with s.414C(11) of the Companies Act 2006.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Parkol Marine Engineering Limited (Registered number: 04005938)

Report of the Directors
for the year ended 31st May 2024


AUDITORS
The auditors, Smailes Goldie, will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





S Atkinson - Director


21st February 2025

Report of the Independent Auditors to the Members of
Parkol Marine Engineering Limited

Opinion
We have audited the financial statements of Parkol Marine Engineering Limited (the 'Company') for the year ended 31st May 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 31st May 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.

Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Parkol Marine Engineering Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' 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 Statement of Directors' Responsibilities set out on page four, 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 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.

Report of the Independent Auditors to the Members of
Parkol Marine Engineering Limited


Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Parkol Marine Engineering Limited


Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in a Report of the Auditors 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.




Michael Stocks ACA (Senior Statutory Auditor)
for and on behalf of Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire
HU2 8BA

21st February 2025

Parkol Marine Engineering Limited (Registered number: 04005938)

Statement of Comprehensive Income
for the year ended 31st May 2024

2024 2023
Notes £    £   

TURNOVER 3 11,418,295 12,040,932

Cost of sales 9,618,377 11,158,573
GROSS PROFIT 1,799,918 882,359

Administrative expenses 1,351,654 1,078,624
448,264 (196,265 )

Other operating income 2,855 3,874
OPERATING PROFIT/(LOSS) 5 451,119 (192,391 )

Interest receivable and similar income 7,345 2,317
458,464 (190,074 )

Interest payable and similar expenses 6 5,809 9,208
PROFIT/(LOSS) BEFORE TAXATION 452,655 (199,282 )

Tax on profit/(loss) 7 114,197 (53,854 )
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

338,458

(145,428

)

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

338,458

(145,428

)

Parkol Marine Engineering Limited (Registered number: 04005938)

Balance Sheet
31st May 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 533,105 491,569
533,105 491,569

CURRENT ASSETS
Stocks 11 649,160 683,709
Debtors 12 3,740,264 3,203,339
Cash at bank and in hand 630,178 406,257
5,019,602 4,293,305
CREDITORS
Amounts falling due within one year 13 3,837,968 3,210,981
NET CURRENT ASSETS 1,181,634 1,082,324
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,714,739

1,573,893

PROVISIONS FOR LIABILITIES 15 49,138 94,000
NET ASSETS 1,665,601 1,479,893

CAPITAL AND RESERVES
Called up share capital 16 2,993 2,993
Capital redemption reserve 17 186 186
Retained earnings 17 1,662,422 1,476,714
SHAREHOLDERS' FUNDS 1,665,601 1,479,893

The financial statements were approved by the Board of Directors and authorised for issue on 21st February 2025 and were signed on its behalf by:




J R Morrison - Director



S Atkinson - Director


Parkol Marine Engineering Limited (Registered number: 04005938)

Statement of Changes in Equity
for the year ended 31st May 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1st June 2022 2,993 1,883,642 186 1,886,821

Changes in equity
Dividends - (261,500 ) - (261,500 )
Total comprehensive income - (145,428 ) - (145,428 )
Balance at 31st May 2023 2,993 1,476,714 186 1,479,893

Changes in equity
Dividends - (152,750 ) - (152,750 )
Total comprehensive income - 338,458 - 338,458
Balance at 31st May 2024 2,993 1,662,422 186 1,665,601

Parkol Marine Engineering Limited (Registered number: 04005938)

Notes to the Financial Statements
for the year ended 31st May 2024

1. STATUTORY INFORMATION

Parkol Marine Engineering Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis. The directors have taken note of the guidance issued by the Financial Reporting Council on Going Concern Assessments in determining that this is the appropriate basis of preparation of the financial statements and have considered a number of factors. This has specifically included reviewing banking facilities in place and detailed forecasting using sensitivity analysis to ensure that the worst case scenario situation does not put the going concern concept at risk.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirement of paragraph 33.7.

Significant judgements and estimates
In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates

Critical accounting estimates and assumptions
Management estimate the stage of completion of a new build contract by reference to the percentage of costs incurred. The attributable profit which is recognised at each stage is assessed by management consideration of the overall costs and anticipated profitability of the build when the build has reached a stage whereby this can be foreseen with reasonable certainty.

The directors do not consider that any of the estimates and assumptions used in the preparation of these financial statements have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The amount of profit attributable to the stage of completion of a contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Revenue for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses as soon as they are foreseeable. Amounts invoiced in excess of revenue recognised are included as payments on account.

Parkol Marine Engineering Limited (Registered number: 04005938)

Notes to the Financial Statements - continued
for the year ended 31st May 2024

2. ACCOUNTING POLICIES - continued

Goodwill
Goodwill has been written off over its original estimated useful life of ten years.

Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Leasehold improvements- over the length of the lease
Plant and machinery- 20% on reducing balance or 2% on cost
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on reducing balance

Stocks and work in progress
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

If payments on account are greater than turnover to date they are classified as a deduction from long term work in progress with any excess being classified as creditors.

Financial instruments
The company mainly enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade, other accounts receivable and payable and loans from related parties.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Debt instruments such as loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised costs using the effective interest method.

The company does enter into some derivative financial instruments to manage exposures to foreign currency risk, including exposures arising from forecast transactions.

Derivative financial instruments are classified as other financial instruments and accounted for at fair value.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Parkol Marine Engineering Limited (Registered number: 04005938)

Notes to the Financial Statements - continued
for the year ended 31st May 2024

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the principal activities of the Company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Ship building 9,083,004 10,127,952
Repairs and maintenance 2,335,291 1,912,980
11,418,295 12,040,932

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,996,118 2,116,440
Social security costs 206,555 219,258
Other pension costs 26,656 23,019
2,229,329 2,358,717

Parkol Marine Engineering Limited (Registered number: 04005938)

Notes to the Financial Statements - continued
for the year ended 31st May 2024

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2024 2023

Directors 3 4
Employees 54 60
57 64

2024 2023
£    £   
Directors' remuneration 28,108 31,243
Directors' pension contributions to money purchase schemes 1,650 -

5. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging:

2024 2023
£    £   
Hire of plant and machinery 1,967 11,903
Other operating leases 296,167 351,533
Depreciation - owned assets 74,709 77,466
Loss on disposal of fixed assets 1,039 4,236
Auditors' remuneration 9,450 18,450
Foreign exchange differences 8,605 31,499
Vehicle leases 39,612 23,570

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Directors' loan interest 5,790 8,885
Other interest paid 19 323
5,809 9,208

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2024 2023
£    £   
Deferred tax 114,197 (53,854 )
Tax on profit/(loss) 114,197 (53,854 )

UK corporation tax has been charged at 25% (2023 - 25%).

Parkol Marine Engineering Limited (Registered number: 04005938)

Notes to the Financial Statements - continued
for the year ended 31st May 2024

7. TAXATION - continued

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit/(loss) before tax 452,655 (199,282 )
Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of 25% (2023 - 25%)

113,164

(49,821

)

Effects of:
Expenses not deductible for tax purposes 1,033 1,925
Change in tax rate - (3,404 )
deduction
Enhanced capital allowances - (2,554 )
Total tax charge/(credit) 114,197 (53,854 )

Losses carried forward as a result of research and development enhanced expenditure deductions are provided for as deferred tax assets, net of deferred tax liabilities arising on accelerated capital allowances and other short term timing differences.

8. DIVIDENDS
2024 2023
£    £   
Ordinary A shares of £1 each
Interim 7,500 40,000
Ordinary B shares of £1 each
Interim 85,250 161,500
Ordinary C shares of £1 each
Interim 60,000 60,000
152,750 261,500

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1st June 2023
and 31st May 2024 300,000
AMORTISATION
At 1st June 2023
and 31st May 2024 300,000
NET BOOK VALUE
At 31st May 2024 -
At 31st May 2023 -

Parkol Marine Engineering Limited (Registered number: 04005938)

Notes to the Financial Statements - continued
for the year ended 31st May 2024

10. TANGIBLE FIXED ASSETS
Fixtures
Leasehold Plant and and Motor
improvements machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1st June 2023 164,099 1,308,316 113,808 25,230 1,611,453
Additions - 84,116 13,818 22,750 120,684
Disposals - (15,000 ) - (6,700 ) (21,700 )
At 31st May 2024 164,099 1,377,432 127,626 41,280 1,710,437
DEPRECIATION
At 1st June 2023 164,099 841,011 97,128 17,646 1,119,884
Charge for year - 61,909 8,674 4,126 74,709
Eliminated on disposal - (13,068 ) - (4,193 ) (17,261 )
At 31st May 2024 164,099 889,852 105,802 17,579 1,177,332
NET BOOK VALUE
At 31st May 2024 - 487,580 21,824 23,701 533,105
At 31st May 2023 - 467,305 16,680 7,584 491,569

11. STOCKS
2024 2023
£    £   
Engineering stores 649,160 681,739
Work-in-progress - 1,970
649,160 683,709

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,467,880 677,524
Amounts owed by group undertakings 947,120 787,032
Amounts recoverable on contract 919,037 951,365
Other debtors 571 10,126
Directors' current accounts 73,175 23,083
VAT 147,379 207,098
Deferred tax asset - 65,059
Prepayments and accrued income 185,102 482,052
3,740,264 3,203,339

Parkol Marine Engineering Limited (Registered number: 04005938)

Notes to the Financial Statements - continued
for the year ended 31st May 2024

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Payments on account 2,568,070 891,501
Trade creditors 703,054 1,853,802
Social security and other taxes 51,916 52,095
Other creditors 14,419 251
Directors' current accounts 115,158 206,914
Accruals and deferred income 385,351 206,418
3,837,968 3,210,981

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 164,115 191,786
Between one and five years 159,451 286,245
323,566 478,031

15. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 49,138 -
Other provisions - 94,000
49,138 94,000

Deferred Other
tax provisions
£    £   
Balance at 1st June 2023 (65,059 ) 94,000
Provided during year 114,197 -
Balance at 31st May 2024 49,138 94,000

The deferred tax asset relates to taxable losses carried forward as a result of trading losses and research and development enhanced expenditure deductions, net of accelerate capital allowances and other short term timing differences. The expected net reversal of deferred tax assets and liabilities in 2025 is £28,162.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
816 Ordinary A £1 816 816
1,177 Ordinary B £1 1,177 1,177
1,000 Ordinary C £1 1,000 1,000
2,993 2,993

Parkol Marine Engineering Limited (Registered number: 04005938)

Notes to the Financial Statements - continued
for the year ended 31st May 2024

17. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1st June 2023 1,476,714 186 1,476,900
Profit for the year 338,458 - 338,458
Dividends (152,750 ) - (152,750 )
At 31st May 2024 1,662,422 186 1,662,608

Retained earnings

Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

Capital redemption reserve

The capital redemption reserve represents the Company's repurchase of own shares.

18. PENSION COMMITMENTS

Employer contributions to defined contribution schemes for the year amounted to £26,656 (2023 £23,019). At 31st May 2024 there was £5,925 outstanding (2023 £6,927).

19. CONTINGENT LIABILITIES

The company has provided a guarantee supported by a debenture on behalf of its parent undertaking in favour of National Westminster Bank Plc in respect of group borrowings which are secured by fixed and floating charges over all assets of the company. The potential liability under the arrangement as at 31st May 2024 was £146,524 (2023: £159,460).

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Included within other creditors falling due within one year are amounts due to the directors of £47,658 (2023: £23,082). Included within other debtors are amounts due from a director of £73,175 (2023: £206,911). During the year, total amounts advanced to the directors amounted to £333,271, total amounts repaid amounted to £124,007. The loan amounts to and from the directors are repayable on demand and accrue interest at 6%.

21. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

The directors are considered to be the key management personnel of the company and as such key management personnel compensation is the same as disclosed at note 4.

Amounts due from/to directors are disclosed at notes 12 and 13 respectively. Amounts owed are repayable on demand and accrue interest at 6%.

Parkol Marine Engineering Limited (Registered number: 04005938)

Notes to the Financial Statements - continued
for the year ended 31st May 2024

22. ULTIMATE CONTROLLING PARTY

The ultimate parent company is Parkol Marine Holdings Limited, the registered address is that shown on page 1. The parent company is under the control of the directors but has no ultimate controlling party.

The group in which the results of the company are consolidated is that headed by Parkol Marine Holdings Limited. The consolidated financial statements of the group are available to the public and may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.