Company registration number 04641757 (England and Wales)
UNIVERSAL TANKER SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
UNIVERSAL TANKER SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
T Gunn
S Gunn
Secretaries
T Gunn
H Gunn
Company number
04641757
Registered office
Unit 12a Bold Industrial Estate
Neils Road
St Helens
Merseyside
WA9 4TU
Auditor
Cooper Parry Group Limited
St James Building
79 Oxford Street
Manchester
M1 6HT
UNIVERSAL TANKER SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
UNIVERSAL TANKER SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
The directors present the strategic report for the year ended 31 May 2024.
Principal activities
The principal activity of the company continued to be that of effluent removal services
Fair review of the business
The directors consider the overall performance and year-end financial position of the company to be satisfactory. Turnover in the year fell by 1% (2023 decreased by 12%), gross margins remained steady at 43% (2023 - 44%) whilst net margin reduced to 3% (2023 - 7%).
Profitability has been impacted at a net margin level by higher interest costs and higher administrative expenses as a result of high UK inflation. A considerably younger fleet is now in place, with the first phase of the fleet upgrade programme complete. This will in turn reduce repair and maintenance costs across the next financial periods. This investment does result in higher interest costs in the short-term but the directors expect the benefits to soon outweigh these increased costs. UK inflation continues to place pressure on the company's costs and the directors will continue to monitor its impact. Bank of England interest base rate increases also have a negative impact on the company's borrowing costs.
The company and wider group manage gearing to ensure that should the market change, there is the ability to weather significantly higher finance costs. With inflation and interest costs steadying, the Group is well positioned to take advantage of its strong market position and improve both gross and operating margins.
In the current year the company and group have continued with its significant upgrade of their tanker fleet which the directors believe will strengthen the company's position in the coming years by having a state-of-the-art fleet. This tanker upgrade programme is now complete, and management have begun to plan for the next phase of this upgrade and growth of the fleet. This will ensure that the group maintain their pre-eminent position in the market.
The directors consider that the company is therefore well placed, both operationally and financially, for the future.
Key performance indicators
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Turnover (decrease)/increase | | | |
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S Gunn
Director
25 February 2025
- 1 -
UNIVERSAL TANKER SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
The directors present their annual report and financial statements for the year ended 31 May 2024.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
T Gunn
S Gunn
Financial instruments
Objectives and policies
The main risks arising from the company's financial instruments are liquidity risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company is exposed to fair value interest rate risk on its fixed borrowings and cash flow interest rate risk on its overdraft.
Credit risk
Investment of cash surpluses and borrowings are made through banks and companies approved by the board. The main source of funding of the company's operations are through bank overdrafts and loans. In addition, the company has various other financial assets and liabilities such as trade debtors and creditors arising directly from its operations.
Auditor
The audit business of UHY Hacker Young Manchester LLP was acquired by Cooper Parry Group Limited on 30 September 2024. UHY Hacker Young Manchester LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place.
The auditor, Cooper Parry Group Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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UNIVERSAL TANKER SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
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.
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.
On behalf of the board
S Gunn
Director
25 February 2025
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UNIVERSAL TANKER SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNIVERSAL TANKER SOLUTIONS LIMITED
Opinion
We have audited the financial statements of Universal Tanker Solutions Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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.
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.
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UNIVERSAL TANKER SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNIVERSAL TANKER SOLUTIONS LIMITED (CONTINUED)
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
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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.
Extent to which the audit was considered capable of detecting irregularities including fraud
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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Identifying and assessing potential risk related to irrgularties
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance including the design of the company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
the matters discussed among the audit engagement team regarding how and where fraud might occur in the Financial Statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
UNIVERSAL TANKER SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNIVERSAL TANKER SOLUTIONS LIMITED (CONTINUED)
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the Financial Statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions legislation and tax legislation in all relevant jurisdictions where the company operates.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the Financial Statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
In addition to the above, our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the Financial Statements;
enquiring of management concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 or intentional misrepresentations, or through collusion.
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.
Ryan Wear BSc ACA
Senior Statutory Auditor
For and on behalf of Cooper Parry Group Limited
25 February 2025
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
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UNIVERSAL TANKER SOLUTIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
2024
2023
Notes
£
£
Turnover
3
19,168,193
19,315,050
Cost of sales
(10,836,795)
(10,912,693)
Gross profit
8,331,398
8,402,357
Administrative expenses
(7,759,721)
(6,956,944)
Operating profit
4
571,677
1,445,413
Interest receivable and similar income
7
2,446
338
Interest payable and similar expenses
8
(66,402)
(75,206)
Profit before taxation
507,721
1,370,545
Tax on profit
9
43,679
52,573
Profit for the financial year
551,400
1,423,118
The profit and loss account has been prepared on the basis that all operations are continuing operations.
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UNIVERSAL TANKER SOLUTIONS LIMITED
BALANCE SHEET
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
5,410
Tangible assets
12
1,004,208
1,304,644
1,009,618
1,304,644
Current assets
Stocks
13
106,011
107,330
Debtors
14
4,494,369
4,168,234
Cash at bank and in hand
1,180,254
434,661
5,780,634
4,710,225
Creditors: amounts falling due within one year
15
(2,495,587)
(1,955,480)
Net current assets
3,285,047
2,754,745
Total assets less current liabilities
4,294,665
4,059,389
Creditors: amounts falling due after more than one year
16
(337,584)
(610,029)
Provisions for liabilities
Deferred tax liability
19
105,006
148,685
(105,006)
(148,685)
Net assets
3,852,075
3,300,675
Capital and reserves
Called up share capital
21
150
150
Profit and loss reserves
22
3,851,925
3,300,525
Total equity
3,852,075
3,300,675
The financial statements were approved by the board of directors and authorised for issue on 25 February 2025 and are signed on its behalf by:
S Gunn
Director
Company registration number 04641757 (England and Wales)
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UNIVERSAL TANKER SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2022
150
2,377,407
2,377,557
Year ended 31 May 2023:
Profit and total comprehensive income
-
1,423,118
1,423,118
Dividends
10
-
(500,000)
(500,000)
Balance at 31 May 2023
150
3,300,525
3,300,675
Year ended 31 May 2024:
Profit and total comprehensive income
-
551,400
551,400
Balance at 31 May 2024
150
3,851,925
3,852,075
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UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
Company information
Universal Tanker Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 12a Bold Industrial Estate, Neils Road, St Helens, Merseyside, WA9 4TU.
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 pound sterling.
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 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Universal Tanker Group Ltd. These consolidated financial statements are available from its registered office.
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
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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 the sale of services is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on service provided), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
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 10 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
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Website
over 10 years
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
5% to 25% reducing balance
Plant and equipment
20% straight line
Fixtures and fittings
15% to 20% straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
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At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 12 -
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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.9
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.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
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.
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UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
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 directors have not identified any critical judgements which cause a significant risk of material adjustment to the carrying amount of assets and liabilities in the accounts.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful economic life of tangible assets
The annual depreciation change for tangible assets is sensitive to changes in the estimated useful economics lives and residual values of assets. The useful economic lives and residual values are re-assessed annually. They are amended where necessary to reflect current estimates.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Effluent removal service
19,168,193
19,315,050
All of the company's turnover arose within the UK.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,400
14,500
Depreciation of owned tangible fixed assets
268,025
370,869
Profit on disposal of tangible fixed assets
(58,768)
(18,351)
Amortisation of intangible assets
2,792
Operating lease charges
464,112
217,786
- 15 -
UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Drivers
86
91
Adminstration and Support
33
39
Total
119
130
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,866,082
5,636,092
Social security costs
363,772
216,962
Pension costs
114,144
114,171
6,343,998
5,967,225
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
971,626
606,735
Company pension contributions to defined contribution schemes
2,642
2,642
974,268
609,377
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
561,943
363,391
Company pension contributions to defined contribution schemes
1,320
1,320
- 16 -
UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
696
338
Other interest income
1,750
Total income
2,446
338
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
21,139
19,547
Interest on finance leases and hire purchase contracts
45,263
55,659
66,402
75,206
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
18,513
Deferred tax
Origination and reversal of timing differences
(43,679)
(71,086)
Total tax credit
(43,679)
(52,573)
The actual credit 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
507,721
1,370,545
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
126,930
274,109
Tax effect of expenses that are not deductible in determining taxable profit
18,658
6,491
Adjustments in respect of prior years
18,513
Effect of change in corporation tax rate
(71,086)
Group relief
(184,638)
(338,164)
Permanent capital allowances in excess of depreciation
57,564
Other permanent differences
(4,629)
Taxation credit for the year
(43,679)
(52,573)
- 17 -
UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
Dividends
2024
2023
£
£
Interim paid
500,000
11
Intangible fixed assets
Goodwill
Website
Total
£
£
£
Cost
At 1 June 2023
365,000
365,000
Additions
5,410
5,410
At 31 May 2024
365,000
5,410
370,410
Amortisation and impairment
At 1 June 2023 and 31 May 2024
365,000
365,000
Carrying amount
At 31 May 2024
5,410
5,410
At 31 May 2023
12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
322,024
479,414
124,029
1,365,394
2,290,861
Additions
11,925
2,980
117,415
132,320
Disposals
(350,621)
(350,621)
At 31 May 2024
322,024
491,339
127,009
1,132,188
2,072,560
Depreciation and impairment
At 1 June 2023
33,782
284,458
73,000
594,977
986,217
Depreciation charged in the year
18,021
71,280
18,154
160,570
268,025
Eliminated in respect of disposals
(185,890)
(185,890)
At 31 May 2024
51,803
355,738
91,154
569,657
1,068,352
Carrying amount
At 31 May 2024
270,221
135,601
35,855
562,531
1,004,208
At 31 May 2023
288,242
194,956
51,029
770,417
1,304,644
- 18 -
UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
12
Tangible fixed assets
(Continued)
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
549,852
675,449
Leasehold improvements
256,686
270,196
806,538
945,645
13
Stocks
2024
2023
£
£
Other stock
106,011
107,330
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,954,148
3,885,726
Corporation tax recoverable
50,000
Amounts owed by group undertakings
100,674
Other debtors
212,356
84,323
Prepayments and accrued income
227,191
148,185
4,494,369
4,168,234
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
730,914
129,490
Obligations under finance leases
18
238,737
340,636
Trade creditors
598,007
506,576
Amounts owed to group undertakings
8,114
Taxation and social security
414,962
465,251
Other creditors
77,270
1,151
Accruals and deferred income
435,697
504,262
2,495,587
1,955,480
- 19 -
UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
90,000
180,000
Obligations under finance leases
18
247,584
430,029
337,584
610,029
17
Loans and overdrafts
2024
2023
£
£
Bank loans
180,000
270,000
Bank overdrafts
640,914
39,490
820,914
309,490
Payable within one year
730,914
129,490
Payable after one year
90,000
180,000
National Westminster Bank CBILS Loan is denominated in sterling with a nominal interest rate of 7.91%, and the final instalment is due on 14 May 2026. The carrying amount at year end is £180,000 (2023 - £270,000), and is supported by a government guarantee, a charge over the assets of the company and a cross guarantee from Universal Tanker Group Limited.
The bank overdraft is secured against all assets of the company.
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
275,234
390,458
In two to five years
286,590
479,427
561,824
869,885
Less: future finance charges
(75,503)
(99,220)
486,321
770,665
Hire purchase creditors is denominated in sterling with an average nominal interest rate of 7%, and the final instalment is due on 30 June 2029. The carrying amount at year end is £486,321 (2023 - £770,665), and is secured by way of a charge over specific motor vehicles and assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
- 20 -
UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
19
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
105,006
148,685
2024
Movements in the year:
£
Liability at 1 June 2023
148,685
Credit to profit or loss
(43,679)
Liability at 31 May 2024
105,006
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
114,144
114,171
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.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
150
150
150
150
22
Profit and loss reserves
The profit and loss reserve includes all current and prior period retained profits and losses, less dividends paid.
- 21 -
UNIVERSAL TANKER SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
275,889
159,472
Between two and five years
471,685
357,208
In over five years
156,542
76,000
904,116
592,680
24
Related party transactions
The company is exempt from disclosing related party transactions with companies that are wholly owned within the group.
25
Ultimate controlling party
The company's ultimate parent company is Universal Tanker Group Limited, incorporated in England & Wales.
Universal Tanker Group Limited prepares group financial statements and copies can be obtained from Unit 12a Bold Industrial Estate, Neills Road, St.Helens, Merseyside, WA9 4TU.
The ultimate controlling party is S Gunn by virtue of his majority shareholding in the ultimate parent company.
- 22 -
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