Company registration number 06441514 (England and Wales)
NEXT GEOSOLUTIONS UKCS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
NEXT GEOSOLUTIONS UKCS LIMITED
COMPANY INFORMATION
Directors
G Maffia
G Ranieri
A Ievioli
Company number
06441514
Registered office
6th Floor, Manfield House
1 Southampton Street
WC2R 0LR
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
Business address
69-75 Thorpe Road
Norwich
Norfolk
NR1 1UA
NEXT GEOSOLUTIONS UKCS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
NEXT GEOSOLUTIONS UKCS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present their strategic report and audited financial statements for the year ended 31 December 2024.

Principal activities

Next Geosolutions UKCS Limited ("the company") is headquartered in Norwich, United Kingdom and has a registered office in London, United Kingdom. The company is a 100% owned subsidiary of Next Geosolutions Europe SpA, which is registered in Italy and listed on Euronext. The company provides geophysical, geotechnical, environmental, unexploded ordnance (UXO), and oceanography services, mainly targeting offshore wind farms, interconnectors, oil and gas, and defence markets across Europe and primarily in the North Sea. Within the offshore project lifecycle, the company primarily focuses on the concept phase, offering integrated desktop studies and surveys, and the design & engineering phase, including onshore, nearshore, and offshore surveys.

Review of the business

The profit after tax for the financial period amounted to £4.4 million (2023: £2.9 million), with net assets totalling £7.4 million (2023: £3.1 million).

 

Throughout 2024, the company experienced significant growth, benefiting from major contract awards, expansion of service lines, and the addition of new tonnage. Among the key projects delivered in 2024, the company successfully executed comprehensive survey and geotechnical activities across multiple major offshore infrastructure developments, including:

 

Norfolk Offshore Wind Zone - client: Vattenfall

A large-scale offshore wind development off the east coast of England, part of the UK's efforts to expand its renewable energy capacity. The company played a crucial role by conducting geotechnical site investigation activities to support foundation design and installation planning.

 

EGL (Eastern Green Link) 3 – client: National Grid

A major subsea electricity interconnector that will enhance the UK's grid resilience, supporting renewable energy transmission and improving power stability between Scotland and England. Here, the company conducted geotechnical and benthic surveys, both nearshore and offshore, along the cable routes and landfall.

 

Sealink – client: National Grid

Another significant interconnector project designed to strengthen the UK’s energy infrastructure by facilitating the transmission of electricity between key regions and enabling better integration of offshore wind energy. For this project, the company executed comprehensive geophysical, geotechnical, and benthic surveys, ensuring robust data acquisition for planning and installation.

 

LionLink – client: National Grid

A groundbreaking subsea electricity interconnector between the UK and the Netherlands, supporting cross-border energy trading and enabling the efficient integration of offshore wind energy. For this project, the company executed comprehensive geophysical, geotechnical, and benthic surveys along all the cable corridors. Delivering high-quality data.

 

These projects solidified the company’s market position, showcasing its ability to deliver high-quality offshore survey and geotechnical solutions across multiple sectors.

 

Looking ahead, the company and wider group anticipates continued positive market conditions and plans strategic investments in assets and personnel. These investments aim to enhance the company’s core capabilities while maintaining flexibility to address increasing demand and manage risks. The company and wider group will continue to monitor market conditions, seeking opportunities to consolidate and expand its position within the offshore survey market. As part of its strategic roadmap, the company has increased the geotechnical capabilities, both in terms of personnel, by entering into a contractual agreement with three companies specialised in offshore personnel, focused on the offshore drilling activities of the company, and both finalizing (still ongoing) the development of an in-house Geotechnical Lab Test, aimed at providing high-precision and advanced soil analysis for offshore infrastructure foundation design, reinforcing its leadership in geotechnical expertise.

NEXT GEOSOLUTIONS UKCS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

 

Financial risks

Price Risk: Changes in sales prices or supply costs (e.g., fuel/bunkers) may impact financial performance, particularly for long-term projects. Costs and pricing are closely monitored to ensure profitability.

 

Interest Rate Fluctuation Risk: Changes in market interest rates can affect financial assets, liabilities, and net financial expenses. The company mainly holds variable-rate debts but considers the risk insignificant.

 

Exchange Rate Fluctuation Risk: Foreign currency fluctuations can impact revenue and costs in international operations. Exchange rate trends are monitored, but no major hedging policies are currently in place.

Credit Risk: Potential losses from clients failing to meet financial obligations. Considered low due to relationships with reputable, financially stable clients.

 

Liquidity Risk: Risk of insufficient financial resources to meet short-term obligations. Managed through strict cash flow control, credit lines, and financial planning.

 

Risk of Changes in Cash Flows: Unexpected operational challenges (e.g., weather, technical issues) may affect cash flows. Constant monitoring of projects helps mitigate risks.

 

Fiscal Risk: Exposure to tax regulation changes in UK and other operating regions. Potential changes in tax incentives (e.g., tonnage tax) could have minor financial impacts.

 

Strategic risks

Competitive pressure: Changes in market conditions (competition, technology, pricing) may impact business performance. Mitigated through diversification across different market segments and investment in technology to enhance and maintain high specialised expertise to maintain high barrier for entry.

 

Risks Associated with Availability of Qualified Personnel: Strong recruitment, retention, and employee well-being initiatives to attract and retain talent. Mitigated by a flexible workforce strategy, leveraging specialized non-employee personnel to maintain agility.

 

Operational risks and mitigation measures

Project Implementation Risks: Complex operations may lead to delays, quality issues, penalties, or contract termination. Mitigated through contractual safeguards, risk assessments, dedicated risk managers, and strong budgeting/reporting systems.

 

International Operations Risks: Exposure to geopolitical, macroeconomic, and regulatory changes may affect operations and costs. Continuous monitoring of geopolitical and economic conditions to anticipate and adapt to risks.

 

Environmental, Health & Safety (EHS) Risks: Strict compliance requirements with significant financial and legal consequences for violations. Proactive EHS management, legal oversight, and adherence to international safety and environmental standards.

 

Legal Risks: Potential litigation from contract disputes or operational issues could impact financial performance. Managed through in-house legal teams, external advisors, and rigorous contract review procedures.

 

Cybersecurity Risks: Threats include data loss, cyberattacks, and supply chain vulnerabilities. Addressed through specialized cybersecurity processes, advanced threat detection, and response protocols.

 

NEXT GEOSOLUTIONS UKCS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Key performance indicators

The company utilises financial and non-financial KPIs to monitor and manage business performance effectively. Below are the key metrics for the year:

 

KPI 

2024 (£000)

2023 (£000) 

Revenue 

40,230 

34,606 

Gross profit 

10,131 

8,007 

Gross margin % 

25

23% 

Operating profit (EBIT) 

6,084 

4,017 

Operating margin % 

15% 

12% 

Net profit

4,361

2,924 

Net margin % 

11

8% 

Future developments

Next Geosolutions UKCS Ltd aims to expand its presence in the UK offshore market by leveraging the growing demand for renewable energy infrastructure. The offshore wind market in the UK and Northern Europe is set to experience significant expansion, driven by ambitious national targets and increasing investment. With approximately 16 GW of offshore wind installed capacity, the UK leads the European market and has planned a capital expenditure of around EUR 85 billion over the next ten years for further offshore wind farm (OWF) developments.

 

The interconnector sector is also set for rapid expansion, with 53,800 km of new subsea cable infrastructure expected to be developed across Europe by 2035. The North Sea region is projected to account for approximately 60% of these projects, reinforcing its role as a central hub for energy transmission.

 

Next Geosolutions UKCS Ltd is uniquely positioned to capitalize on these opportunities by expanding its geophysical and geotechnical survey capabilities, reinforcing its role in the full lifecycle of offshore infrastructure projects, and leveraging its expertise to support the operations and maintenance (O&M) sector. The company will continue to invest in advanced survey technologies to enhance data accuracy, improve operational efficiency, and ensure full compliance with stringent environmental and regulatory frameworks.

Section 172 statement

In accordance with Section 172 of the Companies Act 2006, the directors confirm that they have acted in the best interests of stakeholders, including shareholders, employees, customers, and suppliers. The company fosters strong relationships with clients and partners, ensuring transparency, compliance, and ethical business practices. Employee engagement remains a priority, with investments in training and development to support a high-performing workforce.

This report was approved by the board of directors on 28th February 2025, and signed on behalf of the board by:

G Maffia
Director
17 March 2025
NEXT GEOSOLUTIONS UKCS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G Maffia
G Ranieri
A Ievioli
Auditor

The auditor, Alliotts LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
G Maffia
Director
17 March 2025
NEXT GEOSOLUTIONS UKCS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEXT GEOSOLUTIONS UKCS LIMITED
- 5 -
Opinion

We have audited the financial statements of Next Geosolutions UKCS Limited (the 'company') for the year ended 31 December 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:

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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:

NEXT GEOSOLUTIONS UKCS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEXT GEOSOLUTIONS UKCS LIMITED (CONTINUED)
- 6 -
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 and 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

NEXT GEOSOLUTIONS UKCS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEXT GEOSOLUTIONS UKCS LIMITED (CONTINUED)
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

Audit response to risks identified

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

 

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.

NEXT GEOSOLUTIONS UKCS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEXT GEOSOLUTIONS UKCS LIMITED (CONTINUED)
- 8 -
Sudheer Gupta BA FCA (Senior Statutory Auditor)
For and on behalf of Alliotts LLP, Statutory Auditor
Chartered Accountants
Manfield House
1 Southampton Street
London
WC2R 0LR
18 March 2025
NEXT GEOSOLUTIONS UKCS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
40,229,995
34,606,267
Cost of sales
(30,098,934)
(26,599,110)
Gross profit
10,131,061
8,007,157
Administrative expenses
(4,047,305)
(3,989,783)
Operating profit
4
6,083,756
4,017,374
Interest payable and similar expenses
7
(143,298)
(75,547)
Profit before taxation
5,940,458
3,941,827
Tax on profit
8
(1,579,387)
(1,017,618)
Profit for the financial year
4,361,071
2,924,209

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

The notes on pages 12 to 25 form part of these financial statements.

NEXT GEOSOLUTIONS UKCS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
146,000
195,352
Tangible assets
10
80,068
74,414
226,068
269,766
Current assets
Stocks
11
146,558
150,384
Debtors
12
13,072,121
12,272,948
Cash at bank and in hand
6,947,692
6,499,258
20,166,371
18,922,590
Creditors: amounts falling due within one year
13
(12,962,899)
(16,135,798)
Net current assets
7,203,472
2,786,792
Total assets less current liabilities
7,429,540
3,056,558
Provisions for liabilities
Deferred tax liability
15
11,911
-
0
(11,911)
-
Net assets
7,417,629
3,056,558
Capital and reserves
Called up share capital
17
1,000
1,000
Other reserves
758,400
758,400
Profit and loss reserves
6,658,229
2,297,158
Total equity
7,417,629
3,056,558

The notes on pages 12 to 25 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 17 March 2025 and are signed on its behalf by:
G Maffia
Director
Company registration number 06441514 (England and Wales)
NEXT GEOSOLUTIONS UKCS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Capital contribution reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2023
1,000
758,400
(627,051)
132,349
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
2,924,209
2,924,209
Balance at 31 December 2023
1,000
758,400
2,297,158
3,056,558
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
4,361,071
4,361,071
Balance at 31 December 2024
1,000
758,400
6,658,229
7,417,629

The notes on pages 12 to 25 form part of these financial statements.

NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Next Geosolutions UKCS Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, Manfield House, 1 Southampton Street, WC2R 0LR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Next Geosolutions Europe SpA. These consolidated financial statements are available from its registered office, Via Santa Brigida, 39, 80133 - Naples (Italy).

1.2
Going concern

At 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. In considering their assessment, directors have considered the successfully tendered projects in the pipeline trueproviding future contracted revenues. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover relates to geophysical, geotechnical, environmental, unexploded ordnance (UXO) and oceanography services, and is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and consumables, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
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.

 

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:

Charter vessel improvements
5 years straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
25% reducing balance
Computers
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

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.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.7
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which includes trade debtors, amounts owed by group undertakings, other debtors, accrued income 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.

NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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 trade creditors, bank loans, amounts owed to group undertakings, other creditors and accruals, 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.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

1.14
Leases

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.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Accrued contract retention income

Under the terms of certain long term contracts to which the company is a party, a portion of the amount receivable by the company for the completion of relevant milestones is withheld until the contract is completed to the agreed standard.

 

In determining whether to recognise the full revenue associated with completion of the relevant milestone, including amounts not receivable until completion, management consider whether it is probable that the contract will be completed in line with the agreed standard. Where management considers this to be probable, the amount retained is recognised as revenue.

Onerous contracts

In applying the revenue recognition policy for the company's contracts with customers, management have performed a review of the underlying contracts to evaluate whether the contract is expected to be loss making. In determining this, management have considered the cost to completion as at the balance sheet date based on internal budgets. Where the cost to completion is greater than future revenue to be recognised under the contract, the loss has been recognised immediately in 'Administrative expenses', with a corresponding provision recorded as 'Onerous contracts provision' in 'Provisions for liabilities'.

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.

Long term contracts - Stage of completion

In applying the revenue recognition policy for the company's contracts with customers, management have performed a review of the underlying contracts to evaluate the appropriate revenue recognition point. Contracts are set based on specific terms, contain staged payments which vary according to the individual commercial arrangement, transfer certain outputs to the customer during the course of the contract, and contain obligations for the company which must be discharged under the terms of the contract.

 

In determining the appropriate revenue recognition point, management have estimated the stage of completion of the contract by reference to the terms of the contract and the outputs delivered, with the excess of revenue recognised over the value of invoices raised recorded in 'Prepayments and accrued income' in 'Debtors'.

NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Wind Farm
5,314,740
28,149,116
Interconnector
33,296,957
5,041,164
Other
1,618,298
1,415,987
40,229,995
34,606,267
2024
2023
£
£
Turnover analysed by geographical market
UK
36,355,158
29,720,483
Europe
3,874,837
4,885,784
40,229,995
34,606,267
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(182,172)
(9,936)
Fees payable to the company's auditor for the audit of the company's financial statements
25,750
18,500
Depreciation of owned tangible fixed assets
63,886
68,783
Amortisation of intangible assets
48,667
48,667
Operating lease charges
274,934
186,153
5
Employees

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

2024
2023
Number
Number
Executive
5
5
Manager
22
22
Officer
3
3
Seaman
38
17
Total
68
47
NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,712,827
2,307,471
Social security costs
240,688
220,830
Pension costs
47,847
45,567
3,001,362
2,573,868
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
405,336
229,759
Company pension contributions to defined contribution schemes
1,321
1,547
406,657
231,306

Included in the above is £316,935 (2023: £nil) paid to the directors by the immediate parent company and recharged to the company in respect of qualifying services.

 

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
144,234
179,759
Company pension contributions to defined contribution schemes
1,321
1,345
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
126,798
75,406
Other interest on financial liabilities
-
0
141
Other interest
16,500
-
0
143,298
75,547
NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,499,649
594,466
Adjustments in respect of prior periods
64,975
-
0
Total current tax
1,564,624
594,466
Deferred tax
Origination and reversal of timing differences
(2,573)
423,152
Adjustment in respect of prior periods
17,336
-
0
Total deferred tax
14,763
423,152
Total tax charge
1,579,387
1,017,618

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
5,940,458
3,941,827
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
1,485,115
927,118
Tax effect of expenses that are not deductible in determining taxable profit
11,167
66,073
Under/(over) provided in prior years
64,975
-
0
Fixed asset differences
18,130
1,052
Remeasurement of deferred tax for changes in tax rates
-
0
23,375
Taxation charge for the year
1,579,387
1,017,618
NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
9
Intangible fixed assets
Charter vessel improvements
£
Cost
At 1 January 2024
244,019
Transfers
(685)
At 31 December 2024
243,334
Amortisation and impairment
At 1 January 2024
48,667
Amortisation charged for the year
48,667
At 31 December 2024
97,334
Carrying amount
At 31 December 2024
146,000
At 31 December 2023
195,352
10
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2024
128,138
194,146
322,284
Additions
22,449
46,406
68,855
Transfers
-
0
685
685
At 31 December 2024
150,587
241,237
391,824
Depreciation and impairment
At 1 January 2024
76,791
171,079
247,870
Depreciation charged in the year
33,072
30,814
63,886
At 31 December 2024
109,863
201,893
311,756
Carrying amount
At 31 December 2024
40,724
39,344
80,068
At 31 December 2023
51,347
23,067
74,414
NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
11
Stocks
2024
2023
£
£
Raw materials and consumables
146,558
150,384
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
261,216
8,401,260
Amounts owed by group undertakings
55,111
-
0
Other debtors
30,168
74,159
Prepayments and accrued income
12,725,626
3,794,677
13,072,121
12,270,096
Deferred tax asset (note 15)
-
0
2,852
13,072,121
12,272,948

All amounts owed by group undertakings are interest free, unsecured and repayable on demand.

13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
4,171,296
1,268,405
Trade creditors
3,517,519
4,484,487
Amounts owed to group undertakings
1,398,851
3,571,445
Corporation tax
653,743
594,466
Other taxation and social security
1,257,312
351,081
Other creditors
14,381
6,521
Accruals
1,949,797
5,859,393
12,962,899
16,135,798

All amounts owed to group undertakings are interest free, unsecured and payable on demand.

14
Loans and overdrafts
2024
2023
£
£
Bank loans
4,171,296
1,268,405
Payable within one year
4,171,296
1,268,405
NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Loans and overdrafts
(Continued)
- 23 -

During the prior year, the company took out an uncommitted facility of EUR 1,000,000. All borrowings under the agreement are unsecured and repayable within 180 days.

During the year, the company took out two additional facilities totalling EUR 4,000,000. All borrowings under these agreements are short term loans and are unsecured.

15
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
15,452
-
-
2,852
Other short term timing differences
(3,541)
-
-
-
11,911
-
-
2,852
2024
Movements in the year:
£
Asset at 1 January 2024
(2,852)
Charge to profit or loss
14,763
Liability at 31 December 2024
11,911

The deferred tax liability set out above is expected to reverse within 12 to 36 months and primarily relates to accelerated capital allowances that are expected to mature within the same period.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
47,847
45,567

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. The amount payable at the reporting date to the scheme totalled £14,166 (2023: £11,719).

NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
400
400
400
400
A Ordinary shares of £1 each
400
400
400
400
B Ordinary shares of £1 each
200
200
200
200
1,000
1,000
1,000
1,000

The ordinary shares issued are non redeemable and have equal voting rights. Also carrying rights to participate in all approved dividend distributions for that class of share and rights to participate in any capital distribution on winding up.

 

The ordinary A shares have full voting rights and dividends issues as per decision of directors and shareholders.

The ordinary B shares have full voting rights and dividends issued as per regular meetings and decision of directors and shareholders.

18
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
120,000
120,000
Between two and five years
360,000
360,000
In over five years
480,000
600,000
960,000
1,080,000
19
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
175,131
1,438
4,170,449
7,257,707
NEXT GEOSOLUTIONS UKCS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Related party transactions
(Continued)
- 25 -

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
1,398,851
3,571,445

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
55,111
-
Other information

The company has taken advantage of the exemption available in Paragraph 33.1A of FRS102 whereby it has not disclosed transactions with other companies that are wholly owned within the group.

20
Ultimate controlling party

The immediate parent company is Next Geosolutions Europe SpA, a company incorporated in Naples, Italy and listed on Euronext, with registered office of Via Santa Brigida 39, 80133, Napoli, Italy. A copy of the group financial statements is available from the registered office.

 

The ultimate parent company is Marnavi SpA, a public company incorporated in Naples, Italy.

The ultimate controlling party is Domenico Ievoli.

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