Company registration number 08451894 (England and Wales)
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
COMPANY INFORMATION
Directors
T Gunn
S Gunn
Secretary
T Gunn
Company number
08451894
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 GROUP LTD AND SUBSIDIARY COMPANIES
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

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

Principal activities

The principal activity of the company is that of a holding company whilst the group carries out effluent removal

services.

Review of the business

The directors consider the overall performance and year-end financial position of the Group 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 1% (2023 7%).

 

Group turnover has stabilised in 2024 as the Group integrates its recent acquisitions and consolidates its market position. Daily and monthly revenues have begun to increase towards the year-end and this has accelerated post year-end, with the Directors forecasting revenue and margin growth for FY25. The directors view 2024 as a transitional year as the business stabilised its cost base, upgraded its fleet and maintained its market-leading position.

 

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 Group'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 Group's borrowing costs. The 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 Group has continued with its significant upgrade of it's tanker fleet which the directors believe will strengthen the Group'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 Group continues to actively look for M&A opportunities that either expand the Group’s geographical coverage or assist the group in securing and growing new waste revenue streams. The Group has closed one transaction post year-end, with a number of other opportunities in the current pipeline.

 

The directors consider that the Group is therefore well placed, both operationally and financially, for the future.

Principal risks and uncertainties

The group operates a centralised treasury function that is responsible for managing the liquidity risk, interest

risk and credit risk associated with the group's activities.

Key performance indicators

Financial KPIs             Unit 2024 2023

Turnover (decrease)/increase          % (1) (12)

Gross Profit margin              % 43 44

Net Profit margin                 % 1 6

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

On behalf of the board

S Gunn
Director
25 February 2025
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

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 8.

Ordinary dividends were paid amounting to £342,162. The directors do not recommend payment of a further 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
Object and policies

The main risks arising from the group'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 group 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 need of the

business.

Interest rate risk

The group 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 group's operations are through bank overdrafts and loans. In addition, the

group has various other financial assets and liabilities such as trade debtors and creditors arising directly from its operations. In accordance with the group's treasury policy, derivative instruments are not entered into for

speculative purposes.

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.

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
S Gunn
Director
25 February 2025
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
- 5 -
Opinion

We have audited the financial statements of Universal Tanker Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 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:

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent 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 risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we considered the following:

 

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 area: 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 GROUP LTD AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
- 7 -

We also obtained an understanding of the legal and regulatory frameworks the company operates in, focussing 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 and tax legislation in all relevant jurisdictions where the group 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 group’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:

 

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.

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 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
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
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
(7,569,539)
(6,864,921)
Operating profit
4
761,859
1,537,436
Interest receivable and similar income
8
3,861
3,481
Interest payable and similar expenses
9
(642,671)
(453,154)
Profit before taxation
123,049
1,087,763
Tax on profit
10
(321,016)
(227,999)
(Loss)/profit for the financial year
25
(197,967)
859,764
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
GROUP BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
4,844,972
5,758,882
Other intangible assets
12
5,410
-
0
Total intangible assets
4,850,382
5,758,882
Tangible assets
13
10,531,712
8,796,679
15,382,094
14,555,561
Current assets
Stocks
16
106,011
107,330
Debtors
17
5,208,965
4,733,391
Cash at bank and in hand
1,426,198
547,097
6,741,174
5,387,818
Creditors: amounts falling due within one year
18
(5,285,742)
(4,183,254)
Net current assets
1,455,432
1,204,564
Total assets less current liabilities
16,837,526
15,760,125
Creditors: amounts falling due after more than one year
19
(6,811,200)
(5,515,322)
Provisions for liabilities
Deferred tax liability
22
1,698,776
1,377,124
(1,698,776)
(1,377,124)
Net assets
8,327,550
8,867,679
Capital and reserves
Called up share capital
24
150
150
Profit and loss reserves
25
8,327,400
8,867,529
Total equity
8,327,550
8,867,679
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:
25 February 2025
S Gunn
Director
Company registration number 08451894 (England and Wales)
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
COMPANY BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
4,844,972
5,758,882
Tangible assets
13
9,527,504
7,492,035
Investments
14
150
150
14,372,626
13,251,067
Current assets
Debtors
17
815,270
573,271
Cash at bank and in hand
245,944
112,436
1,061,214
685,707
Creditors: amounts falling due within one year
18
(2,881,903)
(2,226,962)
Net current liabilities
(1,820,689)
(1,541,255)
Total assets less current liabilities
12,551,937
11,709,812
Creditors: amounts falling due after more than one year
19
(6,473,616)
(4,905,293)
Provisions for liabilities
Deferred tax liability
22
1,575,232
1,209,901
(1,575,232)
(1,209,901)
Net assets
4,503,089
5,594,618
Capital and reserves
Called up share capital
24
150
150
Profit and loss reserves
25
4,502,939
5,594,468
Total equity
4,503,089
5,594,618

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £749,367 (2023 - £44,817 loss).

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:
25 February 2025
S Gunn
Director
Company registration number 08451894 (England and Wales)
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2022
150
8,279,765
8,279,915
Year ended 31 May 2023:
Profit and total comprehensive income
-
859,764
859,764
Dividends
11
-
(272,000)
(272,000)
Balance at 31 May 2023
150
8,867,529
8,867,679
Year ended 31 May 2024:
Loss and total comprehensive income
-
(197,967)
(197,967)
Dividends
11
-
(342,162)
(342,162)
Balance at 31 May 2024
150
8,327,400
8,327,550
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2022
150
5,911,285
5,911,435
Year ended 31 May 2023:
Loss and total comprehensive income for the year
-
(44,817)
(44,817)
Dividends
11
-
(272,000)
(272,000)
Balance at 31 May 2023
150
5,594,468
5,594,618
Year ended 31 May 2024:
Profit and total comprehensive income
-
(749,367)
(749,367)
Dividends
11
-
(342,162)
(342,162)
Balance at 31 May 2024
150
4,502,939
4,503,089
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
4,067,303
4,258,520
Interest paid
(642,671)
(453,154)
Income taxes refunded/(paid)
50,636
(872,388)
Net cash inflow from operating activities
3,475,268
2,932,978
Investing activities
Purchase of intangible assets
(5,410)
-
Purchase of tangible fixed assets
(131,239)
(60,404)
Proceeds from disposal of tangible fixed assets
846,196
323,423
Repayment of loans
(372,491)
-
Interest received
3,861
3,480
Net cash generated from investing activities
340,917
266,499
Financing activities
Repayment of borrowings
-
(719,600)
Repayment of bank loans
(90,000)
(90,000)
Payment of finance leases obligations
(3,106,346)
(2,507,401)
Dividends paid to equity shareholders
(342,162)
(272,000)
Net cash used in financing activities
(3,538,508)
(3,589,001)
Net increase/(decrease) in cash and cash equivalents
277,677
(389,524)
Cash and cash equivalents at beginning of year
507,607
897,131
Cash and cash equivalents at end of year
785,284
507,607
Relating to:
Cash at bank and in hand
1,426,198
547,097
Bank overdrafts included in creditors payable within one year
(640,914)
(39,490)
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
1
Accounting policies
Company information

Universal Tanker Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Universal Tanker Group Ltd and all of its subsidiaries.

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 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Universal Tanker Group Ltd together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

Notwithstanding net current liabilities in the company of £1,820,689, at the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

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

Revenue from 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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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.

1.7
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
1.8
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.

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -

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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
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.

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
1.13
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all 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.

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 group 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 group after deducting all of its liabilities.

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -
1.16
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.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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 and intangible assets

The annual depreciation change for tangible and intangible 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.

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Effluent removal services
19,168,193
19,315,050
2024
2023
£
£
Other revenue
Interest income
3,861
3,481

All of the group's turnover arose within the UK.

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
2,799,365
2,008,285
(Profit)/loss on disposal of tangible fixed assets
(208,343)
5,109
Amortisation of intangible assets
913,910
916,702
Operating lease charges
464,112
217,786
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
10,000
10,000
Audit of the financial statements of the company's subsidiaries
15,400
14,500
25,400
24,500
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Drivers
86
89
-
-
Administration and support
35
41
2
2
Total
121
130
2
2
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
6
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,866,082
5,636,092
-
0
-
0
Social security costs
363,772
216,962
-
-
Pension costs
114,144
114,171
-
0
-
0
6,343,998
5,967,225
-
0
-
0
7
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 includes 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
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,111
3,481
Other interest income
1,750
-
Total income
3,861
3,481
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
9
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
621,532
433,607
Total finance costs
642,671
453,154
10
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(636)
18,513
Deferred tax
Origination and reversal of timing differences
321,652
209,486
Total tax charge
321,016
227,999

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
123,049
1,087,763
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
30,762
217,553
Tax effect of expenses that are not deductible in determining taxable profit
19,710
6,491
Adjustments in respect of prior years
(636)
18,512
Permanent capital allowances in excess of depreciation
235,888
(14,557)
Other permanent differences
(4,470)
-
0
Deferred tax adjustments in respect of prior years
39,762
-
0
Taxation charge
321,016
227,999
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
342,162
272,000
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
12
Intangible fixed assets
Group
Goodwill
Website
Total
£
£
£
Cost
At 1 June 2023
9,503,003
-
0
9,503,003
Additions
-
0
5,410
5,410
At 31 May 2024
9,503,003
5,410
9,508,413
Amortisation and impairment
At 1 June 2023
3,744,121
-
0
3,744,121
Amortisation charged for the year
913,910
-
0
913,910
At 31 May 2024
4,658,031
-
0
4,658,031
Carrying amount
At 31 May 2024
4,844,972
5,410
4,850,382
At 31 May 2023
5,758,882
-
0
5,758,882
Company
Goodwill
£
Cost
At 1 June 2023 and 31 May 2024
9,139,103
Amortisation and impairment
At 1 June 2023
3,380,221
Amortisation charged for the year
913,910
At 31 May 2024
4,294,131
Carrying amount
At 31 May 2024
4,844,972
At 31 May 2023
5,758,882
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
13
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
323,329
518,976
121,853
14,303,559
15,267,717
Additions
-
0
69,425
2,980
5,099,846
5,172,251
Disposals
-
0
-
0
-
0
(2,395,941)
(2,395,941)
At 31 May 2024
323,329
588,401
124,833
17,007,464
18,044,027
Depreciation and impairment
At 1 June 2023
35,087
304,437
70,824
6,060,690
6,471,038
Depreciation charged in the year
18,021
77,238
18,154
2,685,952
2,799,365
Eliminated in respect of disposals
-
0
-
0
-
0
(1,758,088)
(1,758,088)
At 31 May 2024
53,108
381,675
88,978
6,988,554
7,512,315
Carrying amount
At 31 May 2024
270,221
206,726
35,855
10,018,910
10,531,712
At 31 May 2023
288,242
214,539
51,029
8,242,869
8,796,679
Company
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 June 2023
25,000
12,816,604
12,841,604
Additions
57,500
4,982,431
5,039,931
Disposals
-
0
(2,045,320)
(2,045,320)
At 31 May 2024
82,500
15,753,715
15,836,215
Depreciation and impairment
At 1 June 2023
5,417
5,344,152
5,349,569
Depreciation charged in the year
5,958
2,525,382
2,531,340
Eliminated in respect of disposals
-
0
(1,572,198)
(1,572,198)
At 31 May 2024
11,375
6,297,336
6,308,711
Carrying amount
At 31 May 2024
71,125
9,456,379
9,527,504
At 31 May 2023
19,583
7,472,452
7,492,035
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
13
Tangible fixed assets
(Continued)
- 25 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
9,856,733
7,801,021
9,306,881
7,125,572
Leasehold improvements
256,686
270,196
-
-
10,113,419
8,071,217
9,306,881
7,125,572
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
150
150
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023 and 31 May 2024
150
Carrying amount
At 31 May 2024
150
At 31 May 2023
150
15
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Universal Tanker Solutions Limited
Unit 12a, Bold Industrial Estate  Neills Road  St Helens  Merseyside  England & Wales
Ordinary
100.00
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Other stock
106,011
107,330
-
-
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,954,148
3,885,726
-
0
-
0
Corporation tax recoverable
-
0
50,000
-
0
-
0
Amounts owed by group undertakings
-
-
-
8,115
Other debtors
1,023,626
648,280
811,270
563,956
Prepayments and accrued income
231,191
149,385
4,000
1,200
5,208,965
4,733,391
815,270
573,271

Directors loan accounts of receivable of £677,982 (2023: £305,491) are included in other debtors of the company and group.

18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
730,914
129,490
-
0
-
0
Obligations under finance leases
21
2,969,415
2,420,627
2,730,678
2,079,991
Trade creditors
598,559
533,447
552
26,871
Amounts owed to group undertakings
-
0
-
0
100,674
-
0
Other taxation and social security
414,962
465,251
-
-
Other creditors
126,196
117,945
40,000
107,868
Accruals and deferred income
445,696
516,494
9,999
12,232
5,285,742
4,183,254
2,881,903
2,226,962
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
90,000
180,000
-
0
-
0
Obligations under finance leases
21
6,721,200
5,335,322
6,473,616
4,905,293
6,811,200
5,515,322
6,473,616
4,905,293
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
180,000
270,000
-
0
-
0
Bank overdrafts
640,914
39,490
-
0
-
0
820,914
309,490
-
-
Payable within one year
730,914
129,490
-
0
-
0
Payable after one year
90,000
180,000
-
0
-
0

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 group and a cross guarantee from the group.

 

The bank overdraft is secured against all assets of the group.

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
3,659,909
2,901,269
3,384,675
2,510,811
In two to five years
7,822,421
5,924,596
7,535,831
5,445,169
11,482,330
8,825,865
10,920,506
7,955,980
Less: future finance charges
(1,791,715)
(1,069,916)
(1,716,212)
(970,696)
9,690,615
7,755,949
9,204,294
6,985,284

 

Hire purchase creditors is denominated in sterling with a nominal interest rate of 7%, and the final instalment is due on paid on 31 May 2029. The carrying amount at year end is £9,690,615 (2023 - £7,755,889). All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Secured by way of charge over specific motor vehicles and equipment.

 

 

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 28 -
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
2,358,551
1,841,938
Tax losses
(659,775)
(464,814)
1,698,776
1,377,124
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
2,235,007
1,674,715
Tax losses
(659,775)
(464,814)
1,575,232
1,209,901
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
1,377,124
1,209,901
Charge to profit or loss
321,652
365,331
Liability at 31 May 2024
1,698,776
1,575,232

 

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
114,144
114,171

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 29 -
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
76
76
76
76
Ordinary B shares of £1 each
74
74
74
74
150
150
150
150

All classes of shareholding rank pari passu in all respects.

25
Profit and loss reserves

The profit and loss reserve includes all current and prior period retained profits and losses, less dividends paid.

26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
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
-
-
27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
2,014,182
4,710,607
2,014,182
4,710,607
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 30 -
28
Related party transactions

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Yammont Limited
40,000
-
29
Directors' transactions

There are no fixed repayment terms and no interest is charged by the company in respect of this balance.

Description
Opening balance
Amounts advanced
Closing balance
£
£
£
T Gunn -
305,491
315,615
621,106
S Gunn -
-
56,876
56,876
305,491
372,491
677,982
30
Cash generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(197,967)
859,764
Adjustments for:
Taxation charged
321,016
227,999
Finance costs
642,671
453,154
Investment income
(3,861)
(3,481)
(Gain)/loss on disposal of tangible fixed assets
(208,343)
5,109
Amortisation and impairment of intangible assets
913,910
916,702
Depreciation and impairment of tangible fixed assets
2,799,365
2,008,285
Movements in working capital:
Decrease in stocks
1,319
30,499
Increase in debtors
(153,083)
(165,967)
Decrease in creditors
(47,724)
(73,544)
Cash generated from operations
4,067,303
4,258,520
UNIVERSAL TANKER GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 31 -
31
Analysis of changes in net debt - group
1 June 2023
Cash flows
New finance leases
31 May 2024
£
£
£
£
Cash at bank and in hand
547,097
879,101
-
1,426,198
Bank overdrafts
(39,490)
(601,424)
-
(640,914)
507,607
277,677
-
785,284
Borrowings excluding overdrafts
(270,000)
90,000
-
(180,000)
Obligations under finance leases
(7,755,949)
3,106,346
(5,041,012)
(9,690,615)
(7,518,342)
3,474,023
(5,041,012)
(9,085,331)
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