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REGISTERED NUMBER: SC690886 (Scotland)















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2023

for

ENERQUIP HOLDINGS LIMITED

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


ENERQUIP HOLDINGS LIMITED

Company Information
for the Year Ended 31 December 2023







DIRECTORS: A M G Robins
A Polson
S H D Cowie
J P Duncan





REGISTERED OFFICE: 5 Carden Place
Aberdeen
AB10 1UT





REGISTERED NUMBER: SC690886 (Scotland)





AUDITORS: AJB Scholes Ltd
8 Albert Street
Kirkwall
Orkney
KW15 1HP

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Group Strategic Report
for the Year Ended 31 December 2023


The directors present their strategic report of the company and the group for the year ended 31 December 2023.

FAIR REVIEW OF BUSINESS
In the year ended 31 December 2023 the group achieved a turnover of £18.9m (2022: £12.5m) and a profit before tax of £3.9m (2022: £2.5m). Net assets at the balance sheet date were £8.3m (2022: £5.3M). The movement was in line with the expectations of the directors.

PRINCIPAL RISKS AND UNCERTAINTIES
The company face a variety of risks and uncertainties, both foreseeable and unforeseeable. The board consider the main risks to be:

Unpredictability of the oil and gas market
The demand for our products is influenced by both the condition of the oil and gas market, and the oil price. The significant volatility we have seen in recent years is likely to continue with the transition to green energy amid growing worldwide concern about climate change. Low oil and gas prices impact the expenditure plans of our key clients and therefore the demand for our services which could limit our profitability and growth. The company manages its risk by constantly monitoring the status of the oil and gas market and have put in place a strategy to diversify both its client base, ensuring that it services national oil companies, international oil companies and independent clients including other service companies, and the geographical basins in which we operate.

Political risks
Recent global economic conditions have had a significant impact on countries whose economies are exposed to the downturn in commodity pricing, placing greater pressure on governments to find alternative means of raising revenue and increasing the risk of social and labour unrest. The company manages this risk by regularly reviewing current and future operations and new opportunities in locations where political risk is considered to be a key factor in the commercial success of the operations. This is notable for actual and potential operations in the Middle East.

Product development risks
Our success depends, in part, on the continued successful development of our products and the acceptance of those products by our clients. To manage this risk we maintain an active dialogue with all of our customers to understand their business requirements and employ rigorous product development control processes to ensure that our products meet the needs of our clients.

Financial and treasury risks
The company undertakes transactions in multiple currencies and manages working capital positions across a number of different markets and geographical areas. The company actively monitors, evaluates and manages these currencies, working capital and cash flow to ensure all financial commitments are met as they fall due.

KEY PERFORMANCE INDICATORS
The directors consider the key performance indicators of the business to be turnover (2023: £18.9m; 2022: £12.5m), gross margin (2023: 37.6%; 2022: 35.8%) and EBITDA (2023: £4.0m; 2022: £2.7m).

ON BEHALF OF THE BOARD:





A M G Robins - Director


25 March 2025

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Report of the Directors
for the Year Ended 31 December 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

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

A M G Robins
A Polson
S H D Cowie
J P Duncan

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

AUDITORS
The auditors, AJB Scholes Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A M G Robins - Director


25 March 2025

Report of the Independent Auditors to the Members of
Enerquip Holdings Limited


Qualified opinion on financial statements
We have audited the financial statements of Enerquip Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion
We were not appointed as auditor of the group until after 31 December 2022 and thus did not observe the counting of physical stock held at the 31 December 2022. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31 December 2022, which was stated in the balance sheet at £1,845,725, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to the stock balance to be required, the strategic report would also need to be amended.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the "Auditors responsibilities for the audit of the financial statements" section of our report. We are independent of the group 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 qualified 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 the 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £1,845,725 held at 31 December 2022. We have concluded that where the other information refers to the stock or related balances such as cost of sales, it may be materially misstated for the same reason.

Report of the Independent Auditors to the Members of
Enerquip Holdings Limited


Opinions on other matters prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In respect solely of the limitation on our work relating to stock, described above:

- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
- we were unable to determine whether adequate accounting records had been maintained.

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Enerquip Holdings Limited


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

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 identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks,including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we considered the following:
· the nature of the industry and sector, and control environment;
· results of our enquiries of management;
· any matters we identified having obtained and reviewed the company's documentation of their policies and
procedures relating to:
· identifying, evaluating and complying with laws and regulations and whether they were aware of
any instances of non-compliance;
· detecting and responding to the risks of fraud and whether they have knowledge of any actual,
suspected or alleged fraud;
· the internal controls established to mitigate risks of fraud or non-compliance with laws and
regulations.
· the matters discussed among the audit engagement team.

As a result of these procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and irregularities. Income recognition, purchases and stock were key areas of focus. In
common with all audits under ISA's (UK), we are also required to perform specific procedures to respond to the risk
of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing
on provisions of those laws and regulations that had a direct effect on the determination of material amounts and
disclosures in the financial statements, such as tax legislation and relevant companies acts.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial
statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material
penalty. These include laws and regulations pertaining to employment regulations; and health and safety legislation.

In addition to the above, our procedures to respond to risks identified included the following:
· reviewing the financial statement disclosures and testing to supporting documentation to assess
compliance with provisions of relevant laws and regulations described as having a direct effect on the
financial statements;
· enquiring of management concerning actual potential litigation and claims;
· performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks
of material misstatement due to fraud;
· reading minutes of meetings of those charged with governance; and
· in addressing the risk of fraud through management override of controls, testing the appropriateness of
journal entries and other adjustments; assessing whether the judgements made in making accounting
estimates are indicative of a potential bias; and evaluating the business rationale of any significant
transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team
members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.


Report of the Independent Auditors to the Members of
Enerquip Holdings Limited

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

Other matters which we are required to address
In the previous accounting period the directors of the group took advantage of the audit exemption under S477 of the Companies Act. Therefore the prior period financial statements were not audited.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Ryan Allan (Senior Statutory Auditor)
for and on behalf of AJB Scholes Ltd
8 Albert Street
Kirkwall
Orkney
KW15 1HP

25 March 2025

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Consolidated Income Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 4 18,923,781 12,537,512

Cost of sales 11,817,755 8,045,368
GROSS PROFIT 7,106,026 4,492,144

Administrative expenses 3,184,079 1,878,296
OPERATING PROFIT 6 3,921,947 2,613,848

Interest receivable and similar income 7,952 385
3,929,899 2,614,233

Interest payable and similar expenses 8 37,789 132,581
PROFIT BEFORE TAXATION 3,892,110 2,481,652

Tax on profit 9 926,509 (68,304 )
PROFIT FOR THE FINANCIAL YEAR 2,965,601 2,549,956
Profit attributable to:
Owners of the parent 2,965,601 2,549,956

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Consolidated Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 2,965,601 2,549,956


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,965,601

2,549,956

Total comprehensive income attributable to:
Owners of the parent 2,965,601 2,549,956

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 72,195 80,795
Tangible assets 12 546,576 141,501
Investments 13 - -
618,771 222,296

CURRENT ASSETS
Stocks 14 1,773,381 1,845,725
Debtors 15 11,778,506 7,229,753
Cash at bank and in hand 1,390,224 1,721,511
14,942,111 10,796,989
CREDITORS
Amounts falling due within one year 16 7,208,043 5,652,269
NET CURRENT ASSETS 7,734,068 5,144,720
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,352,839

5,367,016

CREDITORS
Amounts falling due after more than one
year

17

(18,333

)

(28,333

)

PROVISIONS FOR LIABILITIES 20 (48,723 ) (18,501 )
NET ASSETS 8,285,783 5,320,182

CAPITAL AND RESERVES
Called up share capital 21 1,700,000 1,700,000
Preference shares 22 600,000 600,000
Retained earnings 22 5,985,783 3,020,182
SHAREHOLDERS' FUNDS 8,285,783 5,320,182

The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2025 and were signed on its behalf by:





A M G Robins - Director


ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Company Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 - -
Investments 13 4,522,500 4,522,500
4,522,500 4,522,500

CURRENT ASSETS
Debtors 15 648,386 231,426

CREDITORS
Amounts falling due within one year 16 2,870,886 2,453,926
NET CURRENT LIABILITIES (2,222,500 ) (2,222,500 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,300,000

2,300,000

CAPITAL AND RESERVES
Called up share capital 21 1,700,000 1,700,000
Preference shares 600,000 600,000
SHAREHOLDERS' FUNDS 2,300,000 2,300,000

Company's profit for the financial year - -

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2025 and were signed on its behalf by:





A M G Robins - Director


ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Preference Total
capital earnings shares equity
£    £    £    £   
Balance at 1 January 2022 1,700,000 470,226 600,000 2,770,226

Changes in equity
Total comprehensive income - 2,549,956 - 2,549,956
Balance at 31 December 2022 1,700,000 3,020,182 600,000 5,320,182

Changes in equity
Total comprehensive income - 2,965,601 - 2,965,601
Balance at 31 December 2023 1,700,000 5,985,783 600,000 8,285,783

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Company Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Preference Total
capital earnings shares equity
£    £    £    £   
Balance at 1 January 2022 1,700,000 - 600,000 2,300,000

Changes in equity
Balance at 31 December 2022 1,700,000 - 600,000 2,300,000

Changes in equity
Balance at 31 December 2023 1,700,000 - 600,000 2,300,000

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,079,691 (757,877 )
Interest paid (37,789 ) (132,581 )
Tax paid (60,316 ) 320,030
Net cash from operating activities 981,586 (570,428 )

Cash flows from investing activities
Purchase of intangible fixed assets - (84,988 )
Purchase of tangible fixed assets (492,389 ) (127,169 )
Sale of tangible fixed assets 988 (29,329 )
Interest received 7,952 385
Net cash from investing activities (483,449 ) (241,101 )

Cash flows from financing activities
Loan repayments in year (10,000 ) (10,000 )
Amount introduced by directors 1 100,000
Amount withdrawn by directors (100,000 ) (2 )
Loans from associated parties (719,425 ) 999,136
Movement in share in group undertaking - (85 )
Rounding - 2
Net cash from financing activities (829,424 ) 1,089,051

(Decrease)/increase in cash and cash equivalents (331,287 ) 277,522
Cash and cash equivalents at beginning of
year

2

1,721,511

1,443,989

Cash and cash equivalents at end of year 2 1,390,224 1,721,511

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2023 2022
£    £   
Profit before taxation 3,892,110 2,481,652
Depreciation charges 94,926 51,426
Loss on disposal of fixed assets - 5,097
Finance costs 37,789 132,581
Finance income (7,952 ) (385 )
4,016,873 2,670,371
Decrease/(increase) in stocks 72,344 (677,636 )
Increase in trade and other debtors (4,576,551 ) (5,000,310 )
Increase in trade and other creditors 1,567,025 2,249,698
Cash generated from operations 1,079,691 (757,877 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 1,390,224 1,721,511
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 1,721,511 1,443,989


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 1,721,511 (331,287 ) 1,390,224
1,721,511 (331,287 ) 1,390,224
Debt
Debts falling due within 1 year (10,000 ) - (10,000 )
Debts falling due after 1 year (28,333 ) 10,000 (18,333 )
(38,333 ) 10,000 (28,333 )
Total 1,683,178 (321,287 ) 1,361,891

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023


1. STATUTORY INFORMATION

Enerquip Holdings Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

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

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

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2023, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - in accordance with the property
Plant and machinery - 20% on cost and Straight line over 3 years
Fixtures and fittings - Straight line over 3 years
Motor vehicles - Straight line over 4 years

Improvements to property are to be depreciated over the remaining lease term once completed.

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

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

Current or deferred taxation assets and liabilities are not discounted.

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


ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


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

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

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

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

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

Going concern
The directors having considered information about the future of the group are of the opinion that the group is a going concern. They are of the opinion that the group will continue to trade in the 12 months following the date of signing the financial statements.

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

In categorising leases as finance leases or operating leases, management make judgement as to whether significant risks and rewards of ownership have transferred to the company as lessee.

In determining depreciation rates, management must consider and make judgements on the residual value of the assets and their residual lives in order to set depreciation rates.

Useful Economic life of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Impairment of debtors
The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 1,361,192 741,936
Rest of the world 17,562,589 11,795,576
18,923,781 12,537,512

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 4,418,830 3,305,446
Social security costs 475,691 326,031
Other pension costs 123,788 77,150
5,018,309 3,708,627

The average number of employees during the year was as follows:
2023 2022

Administration 16 10
Production 60 42
Management 7 6
83 58

2023 2022
£    £   
Directors' remuneration 179,783 166,024

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 21,660 7,264
Other operating leases 229,378 222,566
Depreciation - owned assets 86,325 47,234
Loss on disposal of fixed assets - 5,097
Goodwill amortisation 8,386 4,193
Development costs amortisation 214 -
Foreign exchange differences 176,867 (293,135 )

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


7. AUDITORS' REMUNERATION
2023 2022
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

22,000

-

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 30,296 132,581
Other interest 7,493 -
37,789 132,581

9. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 868,491 (81,134 )
Adjustment re prior years 27,796 -
Total current tax 896,287 (81,134 )

Deferred tax 30,222 12,830
Tax on profit 926,509 (68,304 )

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


9. TAXATION - continued

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

2023 2022
£    £   
Profit before tax 3,892,110 2,481,652
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2022 - 19 %)

973,028

471,514

Effects of:
Expenses not deductible for tax purposes 10,231 3,352
Capital allowances in excess of depreciation (31,579 ) (13,414 )
R&D Relief - (535,315 )
Movement in deferred tax 30,222 12,830
Adjustment to tax charge in respect of previous periods 27,796 -
Element of profit charged at 19% (54,628 ) -
US Tax Charge (219 ) 3,816
Australian Tax Loss 14,850 -
Enerquip Engineering Tax adjustment (43,192 ) 21,250
Management Charge Credited - (32,337 )
Total tax charge/(credit) 926,509 (68,304 )

10. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


11. INTANGIBLE FIXED ASSETS

Group
Development
Goodwill costs Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 83,860 1,128 84,988
AMORTISATION
At 1 January 2023 4,193 - 4,193
Amortisation for year 8,386 214 8,600
At 31 December 2023 12,579 214 12,793
NET BOOK VALUE
At 31 December 2023 71,281 914 72,195
At 31 December 2022 79,667 1,128 80,795

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


12. TANGIBLE FIXED ASSETS

Group
Improvements Fixtures
to Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 - 503,554 80,047 69,338 652,939
Additions 297,970 106,974 59,645 27,799 492,388
Disposals - - - (988 ) (988 )
At 31 December 2023 297,970 610,528 139,692 96,149 1,144,339
DEPRECIATION
At 1 January 2023 - 418,683 51,509 41,246 511,438
Charge for year - 50,274 23,219 12,832 86,325
At 31 December 2023 - 468,957 74,728 54,078 597,763
NET BOOK VALUE
At 31 December 2023 297,970 141,571 64,964 42,071 546,576
At 31 December 2022 - 84,871 28,538 28,092 141,501

13. FIXED ASSET INVESTMENTS

Company
Other
investments
£   
COST
At 1 January 2023
and 31 December 2023 4,522,500
NET BOOK VALUE
At 31 December 2023 4,522,500
At 31 December 2022 4,522,500

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


13. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Enerquip Group Limited
Registered office: 5 Carden Place, Aberdeen, Scotland, AB10 1UT
Nature of business: Head Office
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 7,900,000 5,100,000
Profit for the year 2,800,000 2,000,000

Enerquip Limited
Registered office: 5 Carden Place, Aberdeen, Scotland, AB10 1UT
Nature of business: Engineering
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 2,653,317 2,601,958
Profit for the year 2,851,359 2,493,458

Enerquip Middle East Limited
Registered office: 5 Carden Place, Aberdeen, Scotland, AB10 1UT
Nature of business: Holding Company
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 1 1

Enerquipe Torque Solutions inc
Registered office: 7862 S Cypress Cir, Humble, Houston, Texas, 77396
Nature of business: Engineering
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves (16,751 ) (17,627 )
Profit/(loss) for the year 876 (1,853 )

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


13. FIXED ASSET INVESTMENTS - continued

Enerquip Engineering Limited
Registered office: 5 Carden Place, Aberdeen, Scotland, AB10 1UT
Nature of business: Engineering
%
Class of shares: holding
Ordinary 100.00
30/4/23
£   
Aggregate capital and reserves (14,807 )
Profit for the year 14,807

Enerquip Australia
Registered office: 3/55 Gawler Place, Adelaide, SA 5000
Nature of business: Engineering
%
Class of shares: holding
Ordinary 100.00
2023
£   
Aggregate capital and reserves 59,400
Loss for the year (59,400 )


14. STOCKS

Group
2023 2022
£    £   
Stocks 1,773,381 1,845,725

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 10,045,910 5,793,695 - -
Amounts owed by group undertakings - - 231,426 231,426
Other debtors 1,345,897 174,015 416,960 -
Directors' current accounts 18 19 - -
Tax 57,614 85,410 - -
VAT 219,712 197,402 - -
Prepayments and accrued income - 920,945 - -
Prepayments 109,355 58,267 - -
11,778,506 7,229,753 648,386 231,426

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 18) 10,000 10,000 - -
Trade creditors 2,198,840 2,014,947 - -
Amounts owed to group undertakings - - 2,545,954 1,232,299
Amounts owed to associates - 719,425 - -
Tax 808,175 - - -
Social security and other taxes 184,136 118,397 - -
Other creditors 357,723 1,537,229 324,932 1,221,627
Directors' current accounts - 100,000 - -
Accrued expenses 3,649,169 1,152,271 - -
7,208,043 5,652,269 2,870,886 2,453,926

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
2023 2022
£    £   
Bank loans (see note 18) 18,333 28,333

18. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,000 10,000
Amounts falling due between two and five years:
Bank loans - 2-5 years 18,333 28,333

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 263,475 301,990
Between one and five years 1,105,200 900,000
In more than five years 562,500 675,000
1,931,175 1,876,990

20. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 48,723 18,501

Group
Deferred
tax
£   
Balance at 1 January 2023 18,501
Provided during year 30,222
Balance at 31 December 2023 48,723

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,700,000 Ordinary 1 1,700,000 1,700,000

22. RESERVES

Group
Retained Preference
earnings shares Totals
£    £    £   

At 1 January 2023 3,020,182 600,000 3,620,182
Profit for the year 2,965,601 2,965,601
At 31 December 2023 5,985,783 600,000 6,585,783


ENERQUIP HOLDINGS LIMITED (REGISTERED NUMBER: SC690886)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2023 and 31 December 2022:

2023 2022
£    £   
A M G Robins
Balance outstanding at start of year 19 19
Amounts repaid (1 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 18 19

24. RELATED PARTY DISCLOSURES

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

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Entities that provide key management personnel services to the entity

During the year under review, a loan from Polson Properties Limited a company under the control of Andrew Polson in the amount of £500,000 was repaid in full. The company rented two properties from Polson Properties Limited, the amount paid in the year of £185,000 represented an open market rate.

During the year under review, a loan from company director J Duncan of £100,000 was repaid in full.