Company registration number SC411832 (Scotland)
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
COMPANY INFORMATION
Directors
D M Findlay
K H Mader
C M MacPherson
Secretary
Stronachs Secretaries Limited
Company number
SC411832
Registered office
Howe Moss Terrace
Kirkhill Industrial Estate
Dyce
Aberdeen
AB21 0GR
Auditor
Azets Audit Services
37 Albyn Place
Aberdeen
United Kingdom
AB10 1JB
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Review of the business

The company made a profit after tax of £1,005,571 (2023 - £2,940,487). The results are in line with our expectations.

 

The company’s strong position at the year end means that we can continue to be a strong and reliable partner for our customers in the future.

Principal risks and uncertainties

Market and economic risks

 

The company’s market share is positive and is not reliant upon one geographical market. We use our strong stock position to offer short lead-times to our customers in order to service their needs.

 

Economic factors affecting the industry

 

The business saw a reduction in Revenue and Profit before tax in 2024 mainly due to the uncertainties around the impact that the new UK Labour Government could have in our business sector. This resulted in delayed customer investments in our region until, and even after, the Governments Budget was announced at the end of October 2024.

 

We also consider the price of oil along with the rate of inflation as factors impacting our industry.

 

Funding and liquidity risk

 

The company is not dependant on bank funding and is party to the Group’s treasury management and therefore has adequate resources to meet ongoing working capital requirements.

 

Currency risk

 

The company is exposed to foreign currency risk on transactions where sales and purchases are in currencies other than the company’s functional currency. The currencies other than the functional currency used are relatively stable currencies (Euro and US Dollar). Management believe that the company’s exposure is manageable and therefore it does not enter into forward exchange contracts.

Development and performance

The business will continue to focus on existing customer contracts as well as seeking new opportunities in the marketplace. We do not envisage any significant changes in the company’s operations over the next 12 months.

Key performance indicators

We use the following key performance indicators to analyse the performance of the company:

2024
2023
Movement
£
£
£
Revenue
9,484,334
14,193,432
(4,709,098)
Gross Profit Margin
26%
35%
(9%)
EBITDA
1,881,699
4,323,643
(2,441,944)
Profit before tax
1,281,465
3,866,213
(2,584,748)
Net assets
10,050,339
10,514,768
(464,429)
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

On behalf of the board

D M Findlay
Director
26 March 2025
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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

Principal activities

The principal activities of the company are those of manufacture and repair of drilling equipment and the supply of non magnetic material for the oil industry.

Future developments

There have not been any significant changes in the company's principal activities in the year. The directors are not aware, at the date of this report, of any likely changes in the company's activities in the next year.

Results and dividends

The results for the year are set out on page 8.

Ordinary Dividends were paid amounting to £1,470,000 (2023 - £925,000). The directors do not recommend payment of a final dividend.

Directors

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

D M Findlay
K H Mader
C M MacPherson
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
D M Findlay
Director
26 March 2025
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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.

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
- 5 -
Opinion

We have audited the financial statements of Schoeller-Bleckmann Darron (Aberdeen) Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of financial position, 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 101 Reduced Disclosure Framework (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:

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
- 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 or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

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

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.

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

David Booth (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
26 March 2025
Chartered Accountants
Statutory Auditor
37 Albyn Place
Aberdeen
United Kingdom
AB10 1JB
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
9,484,334
14,193,432
Cost of sales
(6,977,636)
(9,263,982)
Gross profit
2,506,698
4,929,450
Administrative expenses
(1,487,268)
(1,353,110)
Other operating income
318,052
348,278
Operating profit
4
1,337,482
3,924,618
Investment income
7
9,374
3,504
Finance costs
8
(65,391)
(61,909)
Profit before taxation
1,281,465
3,866,213
Tax on profit
9
(275,894)
(925,726)
Profit and total comprehensive income for the financial year
20
1,005,571
2,940,487

The income statement has been prepared on the basis that all operations are continuing operations. There are no other gains or losses for the year, other than those shown above, hence a separate statement of comprehensive income is not presented.

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
3,462,866
3,453,663
Current assets
Inventories
12
4,888,302
4,286,722
Trade and other receivables
13
2,144,044
4,535,535
Current tax recoverable
79,530
65,257
Cash and cash equivalents
2,829,893
2,688,549
9,941,769
11,576,063
Current liabilities
Trade and other payables
14
1,024,989
2,209,354
Taxation and social security
289,107
339,148
Lease liabilities
15
26,395
12,378
1,340,491
2,560,880
Net current assets
8,601,278
9,015,183
Total assets less current liabilities
12,064,144
12,468,846
Non-current liabilities
Lease liabilities
15
1,745,254
1,728,642
(1,745,254)
(1,728,642)
Provisions for liabilities
Deferred tax liabilities
16
(268,551)
(225,436)
Net assets
10,050,339
10,514,768
Equity
Called up share capital
18
1,000,001
1,000,001
Share premium account
19
3,000,000
3,000,000
Retained earnings
20
6,050,338
6,514,767
Total equity
10,050,339
10,514,768
The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
D M Findlay
Director
Company registration number SC411832
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Share premium account
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2023
1,000,001
3,000,000
4,499,280
8,499,281
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
2,940,487
2,940,487
Transactions with owners in their capacity as owners:
Dividends
10
-
-
(925,000)
(925,000)
Balance at 31 December 2023
1,000,001
3,000,000
6,514,767
10,514,768
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
1,005,571
1,005,571
Transactions with owners in their capacity as owners:
Dividends
10
-
-
(1,470,000)
(1,470,000)
Balance at 31 December 2024
1,000,001
3,000,000
6,050,338
10,050,339
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information

Schoeller-Bleckmann Darron (Aberdeen) Limited is a private company limited by shares, incorporated and domiciled in Scotland. The registered office is Howe Moss Terrace, Kirkhill Industrial Estate, Dyce, Aberdeen, AB21 0GR. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements of the company for the year ended 31 December 2024 were authorised for issue by the board of directors on the date per the statement of financial position on page 9, and were signed on the board's behalf by D M Findlay. The financial statements have been prepared in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' ("FRS 101") on the the historical cost basis and in accordance with the Companies Act 2006. The principal accounting policies adopted are set out below and have been consistently applied to all the years presented, unless otherwise stated.

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 £.

In preparing these financial statements, the company applies the recognition measurement and disclosure requirements of International Financial Reporting Standards as adopted by the UK (UK-adopted international accounting standards), and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.

 

 

Disclosures are given in the Group financial statements of Schoeller-Bleckmann Oilfield Equipment AG. The group financial statements of Schoeller-Bleckmann Oilfield Equipment AG are available to the public and can be obtained as set out in note 23.

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern

The Company’s business activities, together with the factors likely to affect its future development and position, are set out in the Strategic report on page 1. The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. true

 

At the financial year-end, the Company had positive net current assets of £8,601,278 (2023 - £9,015,183), net assets of £10,050,339 (2023 - £10,514,768), cash balance of £2,829,893 (2023 - £2,688,549) and profit for the year then ended of £1,005,571 (2023 - £2,940,487). The company has no external borrowings.

 

The nature of the Company’s business is such that there is reasonable visibility as to order books in the next 12 months. Beyond this, there is expected to be greater unpredictable variation in the value and timing of cash inflows from customers.

 

As a result, the directors have prepared projected cash flow information for the twelve months from the date of approval of these financial statements, which includes an additional severe but reasonably plausible downside scenario in which revenues are restricted through lower demand for services throughout the forecasted period; and directors would have taken action to reduce the scale of the business. Based on these cash flow forecasts, the directors consider that the Company has adequate resources to continue in operational existence.

 

Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

1.3
Revenue

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for goods and maintenance services supplied, stated net of discounts, returns and value added taxes. The company recognises revenue when performance obligations have been satisfied and for the company, this is when the goods or service have transferred to the customer and the customer has control over these, which is considered to be on delivery of the goods and rendering of the maintenance services.

 

For goods supplied, delivery occurs when the goods have been shipped to the specific location or collected from the company's premises by the customer, the risks of obsolescence and loss have been transferred to the customer and either the customer has accepted the goods in accordance with the sales contract, the acceptance provision has lapsed or the company has the objective evidence that all criteria for acceptance have been satisfied. Revenue from providing maintenance services is recognised in the accounting period in which the services are rendered.

 

A receivable is recognised when the goods are delivered or services rendered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

 

Recharges to other group companies is recognised as the corresponding costs are incurred and is recognised within other operating income.

1.4
Property, plant and equipment

Property, plant and equipment 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:

Buildings
5-20% on cost
Plant and machinery
10-25% on cost
Motor vehicles
20-33% on cost
Right of use asset
Over the lease term
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -

Property, plant and equipment is depreciated over the useful lives of the assets. Useful lives are based on management's estimate of the period that the assets will generate economic benefit and these are reviewed annually. The carrying values are tested for impairment when there are indicators of impairment. When carrying out impairment tests, these are based upon future cash flow forecasts and these forecasts include management judgements. Future events could cause the assumptions to change, therefore this could have an adverse effect on the future results of the company. The directors do not believe there is signifiant estimation uncertainty in setting these economic useful lives.

 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible 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.

 

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.

1.6
Inventories

Inventories 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 inventories to their present location and condition.

 

Inventories 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.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

 

Inventories are shown net of a provision for slow moving and aged inventories.

 

The company produces a variety of products for the oil and gas industry. The market for such goods varies and as such, it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When assessing the level of inventory provision required, management take into account future orders for goods and the selling price agreed with third parties along with historic inventory movements. The directors do not believe there is signifiant estimation uncertainty in the creation this provision.

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition. The company's financial assets are classified at amortised cost.

 

Financial assets are initially measured at fair value plus transaction costs, other than those classified as fair value through profit and loss ("FVTPL"), which are measured at fair value.

 

The company classified its financial assets at amortised cost only if both of the following criteria are met:

 

Subsequent to initial recognition, these are measured at amortised cost using the effective interest method.

Impairment of financial assets

The company assesses on a forward-looking basis the expected credit loss associated with its financial assets. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the company applies the simplified approach permitted by IFRS 9 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

 

To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including trade payables, amounts due to group undertakings and other payables, are initially measured at fair value, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.

 

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company and approved by the company's shareholders.

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 income statement 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 is provided in full on timing differences which result in an obligation at the balance sheet date, to pay more tax, or a right to pay less tax, at a future date, at the rates expected to apply when they crystallise based on current rates and law. Timing differences arise from the inclusion of items of income and expenditure in tax computations in periods different from those in which they are included in the financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets and liabilities are not discounted.

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 inventories or non-current 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.

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.14
Leases

All material leases (being the company's long term ground lease and motor vehicles) are accounted for by recognising a right-of-use asset and a lease liability except for:

 

 

Rentals on low value assets or leases with a duration of twelve months or less are charged to the profit and loss account on a straight line basis over the term of the relevant lease.

 

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless this is not readily determinable, in which case the company's incremental borrowing rate on commencement of the lease is used.

 

On initial recognition, the carrying value of the lease liability also includes:

 

 

Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received and increased for:

 

 

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are depreciated on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term.

 

When the company revises its estimate of the lease payments (because, for example, it becomes aware of annual rent reviews), it adjusts the carrying value of the lease liability to reflect the payments over the existing term, discounted at the same discount rate that applied on lease commencement. An equivalent adjustment is made to the carrying value of the right-of-use asset which is presented as an addition, with the revised carrying amount being depreciated over the remaining (revised) lease term.

 

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 are included in the income statement for the period.

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Critical accounting estimates and judgements

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Provision of goods
4,095,850
7,696,618
Rendering of services
5,388,484
6,496,814
9,484,334
14,193,432
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
7,190,523
9,080,269
Rest of Europe
1,916,564
3,230,493
United States of America
65,499
56,802
Africa
141,254
1,316,817
Middle East
170,494
509,051
9,484,334
14,193,432
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(11,532)
(22,465)
Fees payable to the company's auditor for the audit of the company's financial statements
35,600
32,750
Depreciation of property, plant and equipment
503,718
370,736
Depreciation of right of use asset
40,499
37,989
Profit on disposal of property, plant and equipment
(46,201)
(9,700)
Cost of inventories recognised as an expense
4,766,443
7,081,993
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
5
Employees

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

2024
2023
Number
Number
Production
34
37
Administration
5
6
Control and accounting
3
3
Management
1
1
Total
43
47

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,031,282
2,081,542
Social security costs
223,995
220,360
Pension costs
76,158
68,427
2,331,435
2,370,329
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
127,732
134,965
Company pension contributions to defined contribution schemes
12,853
9,292
140,585
144,257
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
8,001
-
0
Interest on overpaid taxation
1,373
3,504
Total income
9,374
3,504
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
62,677
61,909
Other interest payable
2,714
-
0
65,391
61,909
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
228,751
819,371
Adjustments in respect of prior periods
1,786
(6,255)
Other tax reliefs
-
(3,914)
Total UK current tax
230,537
809,202
Foreign taxes and reliefs
2,242
3,914
232,779
813,116
Deferred tax
Origination and reversal of temporary differences
43,115
96,587
Adjustment in respect of prior periods
-
0
16,023
43,115
112,610
Total tax charge
275,894
925,726

The charge for the year can be reconciled to the profit per the income statement as follows:

2024
2023
£
£
Profit before taxation
1,281,465
3,866,213
Expected tax charge based on a corporation tax rate of 25.00% (2023: 23.52%)
320,366
909,333
Effect of expenses not deductible in determining taxable profit
422
3,657
Adjustment in respect of prior years
(1,786)
(6,255)
Fixed asset differences
3,065
(2,748)
Remeasurement of deferred tax
-
21,739
Adjustment for repayment of withholding tax
1,786
-
Under provided taxation
(47,959)
-
Taxation charge for the year
275,894
925,726
SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 20 -

A change in the future UK Corporation tax rate to 25% with effect from 1 April 2023 was announced in the March 2021 budget, and subsequently enacted on 24 May 2021. The company's deferred tax liability has been measured using this rate.

10
Dividends
2024
2023
2024
2023
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary
Final dividend paid
1.47
0.93
1,470,000
925,000
11
Property, plant and equipment
Buildings
Plant and machinery
Motor vehicles
Right of use asset
Total
£
£
£
£
£
Cost
At 1 January 2024
1,370,368
2,964,585
4,630
1,797,830
6,137,413
Additions
58,835
434,668
-
0
60,444
553,947
Disposals
(64,425)
(528,134)
-
0
(42,949)
(635,508)
At 31 December 2024
1,364,778
2,871,119
4,630
1,815,325
6,055,852
Accumulated depreciation and impairment
At 1 January 2024
1,085,781
1,455,707
4,630
137,632
2,683,750
Charge for the year
85,293
418,425
-
0
40,499
544,217
Eliminated on disposal
(64,425)
(527,607)
-
0
(42,949)
(634,981)
At 31 December 2024
1,106,649
1,346,525
4,630
135,182
2,592,986
Carrying amount
At 31 December 2024
258,129
1,524,594
-
0
1,680,143
3,462,866
At 31 December 2023
284,587
1,508,878
-
0
1,660,198
3,453,663

The net carrying value of tangible fixed assets includes £1,680,143 (2023: £1,660,198) in respect of assets held under lease agreements. The depreciation charge in respect of such assets amounted to £40,499 (2023: £37,989) for the year.

 

The total cash outflow for the right of use asset in the period were £92,492 (2023: £82,632).

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
12
Inventories
2024
2023
£
£
Raw materials
4,413,168
3,761,196
Work in progress
487,467
529,832
Provision for impairment
(12,333)
(4,306)
4,888,302
4,286,722

In the year, inventory costs of £4,766,443 (2023: £7,081,993) were recognised in cost of sales.

 

At the year end, the carrying amount of provisions relating to slow moving inventories and those with net realisable values of less than cost was £12,333 (2023 - £4,306).

13
Trade and other receivables
2024
2023
£
£
Trade receivables
1,742,646
3,918,399
Amounts owed by fellow group undertakings
125,765
356,206
Other receivables
734
1,430
Prepayments and accrued income
274,899
259,500
2,144,044
4,535,535

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

14
Trade and other payables
2024
2023
£
£
Trade payables
214,440
307,126
Amounts owed to fellow group undertakings
520,823
1,442,128
Accruals and deferred income
269,508
442,123
Other payables
20,218
17,977
1,024,989
2,209,354

Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
15
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
87,175
73,740
In two to five years
287,322
264,855
In over five years
5,079,811
5,143,709
Total undiscounted liabilities
5,454,308
5,482,304
Future finance charges and other adjustments
(3,682,659)
(3,741,284)
Lease liabilities in the financial statements
1,771,649
1,741,020

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
26,395
12,378
Non-current liabilities
1,745,254
1,728,642
1,771,649
1,741,020
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
62,677
61,909

Lease obligations are secured over the assets to they relate to.

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

ACAs
£
Liability at 1 January 2023
112,826
Deferred tax movements in prior year
Charge to profit or loss
112,610
Deferred tax liability at 1 January 2024
225,436
Deferred tax movements in current year
Charge  to profit or loss
43,115
Deferred tax liability at 31 December 2024
268,551
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
76,158
68,427

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.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Authorised, issued and fully paid
Ordinary of £1 each
1,000,001
1,000,001
1,000,001
1,000,001

The share capital account records the nominal value of shares issued. The ordinary shares carry no right to fixed income.

19
Share premium account
2024
2023
£
£
At the beginning and end of the year
3,000,000
3,000,000

Share premium arises when the company issues shares at a premium above their par value. The share premium reserve is restricted in use and can only be used to write off expenses or commissions from the issue of related shares or to pay for the allotment of new bonus shares to members.

SCHOELLER-BLECKMANN DARRON (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
20
Retained earnings

Retained earnings represents accumulated profits and losses net of dividends and other distributions.

21
Capital commitments
2024
2023
£
£

At 31 December 2024 the company had capital commitments as follows:

Contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment
292,457
108,810
22
Related party transactions

During the year the company made sales of £193,457 (2023 - £726,882) and purchases of £3,147,973 (2023- £3,166,512) to/from fellow subsidiary undertakings. During the year the company received other income of £250,137(2023 - £26,217) from transactions with fellow subsidiaries. The balance due at the year-end is comprised of receivables of £125,765 (2023 - £356,206) and payables of £520,500 (2023 - £1,442,128).

 

During the year the company incurred management charges of £106,953 (2023 - £135,344) to the ultimate parent company.

 

During the year the company paid dividends of £44,100 (2023 - £27,750) to shareholders who are also directors.

23
Controlling party

The company's immediate parent undertaking is Schoeller-Bleckmann Oilfield Equipment (UK) Limited.

 

The directors consider Schoeller-Bleckmann Oilfield Equipment AG, incorporated in Austria, to be the company's ultimate parent undertaking and controlling party. Schoeller-Bleckmann Oilfield Equipment AG prepares group financial statements which include this company, are available for public inspection at Handelsgericht Wr. Neustadt, 2700 Wr. Neustadt, Austria.

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