Company registration number 06757705 (England and Wales)
PHAROS MARINE AUTOMATIC POWER LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PHAROS MARINE AUTOMATIC POWER LIMITED
COMPANY INFORMATION
Directors
S Dickinson ( U.S.A )
O James
R Foulkes
Secretary
R Foulkes
Company number
06757705
Registered office
14 Castle Mews
Hampton
TW12 2NP
Auditor
Taylor Viney & Marlow Limited
46-54 High Street
Ingatestone
Essex
CM4 9DW
PHAROS MARINE AUTOMATIC POWER LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Independent auditor's report
3 - 5
Statement of income and retained earnings
6
Balance sheet
7
Statement of cash flows
8
Notes to the financial statements
9 - 25
PHAROS MARINE AUTOMATIC POWER 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
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end.
Our review is consistent with the size and complex nature of our business and is written in the context of the risks and uncertainties we face.
Pharos Marine Automatic Power Limited (PMAP) delivered significant growth in 2024, from its core offshore marine and helideck aids to navigation market, reflecting the company’s significant investment in new and existing product development. Going forward PMAP will continue to develop its core business and support the sector with its custom decarbonisation, decommissioning solutions.
Principal risks and uncertainties
Management believes that the principal risks to the business are systemic and include fluctuations in energy prices, interruptions in global supply chains, economic slowdowns to include recessions, and changes to trading patterns driven by political factors such as tariffs. Secondary risks include increased competition, price pressures, and attraction and retention of key personnel. Management seeks to mitigate these risks by maintaining close relations with its customers and end users, constantly monitoring market conditions, developing new products/improving existing products, and aggressively managing its supply chain to protect margins.
Development and performance
Management believes that its employees are its most valuable asset, so it focuses on continued investment in this asset through apprenticeship and staff development.
Key performance indicators
PMAP will continue to focus on meeting its customers’ needs, delivering high quality products and systems in a very time sensitive market. PMAP regularly monitors KPI's such as revenue growth, win rate, margins, and customer satisfaction.
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R Foulkes
Director
16 April 2025
PHAROS MARINE AUTOMATIC POWER LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The directors present their report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activities of the company were that of design, manufacture and sale of navigation aids and related products.
Results and dividends
The results for the year are set out on page 6.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S Dickinson ( U.S.A )
O James
R Foulkes
Research and development
The Company is committed to Research and Development activities in order to maintain its business position as a sector leader in the Marine and Aviation navigation market.
Future developments
The Company aims to maintain and strengthen its position and reputation as a supplier of quality products and systems with effective after-sales support, setting us apart from the lower quality, cheaper end of the market.
Auditor
Taylor Viney & Marlow Limited were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
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
R Foulkes
Director
16 April 2025
PHAROS MARINE AUTOMATIC POWER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PHAROS MARINE AUTOMATIC POWER LIMITED
- 3 -
Opinion
We have audited the financial statements of Pharos Marine Automatic Power Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PHAROS MARINE AUTOMATIC POWER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PHAROS MARINE AUTOMATIC POWER LIMITED (CONTINUED)
- 4 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 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 :
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and making enquiries of management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
PHAROS MARINE AUTOMATIC POWER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PHAROS MARINE AUTOMATIC POWER LIMITED (CONTINUED)
- 5 -
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.
Stuart McCallum (Senior Statutory Auditor)
For and on behalf of Taylor Viney & Marlow Limited, Statutory Auditor
Chartered Accountants
46-54 High Street
Ingatestone
Essex
CM4 9DW
16 April 2025
PHAROS MARINE AUTOMATIC POWER LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
Year
Year
ended
ended
31 December
31 December
2024
2023
Notes
£'000
£'000
Turnover
3
16,315
10,907
Cost of sales
(11,363)
(7,519)
Gross profit
4,952
3,388
Distribution costs
(122)
(188)
Administrative expenses
(3,390)
(2,952)
Other operating income
1
1
Operating profit
5
1,441
249
Interest receivable and similar income
9
1
2
Interest payable and similar expenses
10
(425)
(139)
Amounts written off investments
11
-
(34)
Profit before taxation
1,017
78
Tax on profit
12
17
76
Profit for the financial year
1,034
154
Retained earnings brought forward
(2,263)
(2,417)
Retained earnings carried forward
(1,229)
(2,263)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PHAROS MARINE AUTOMATIC POWER LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 7 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
14
155
231
Investments
15
1
1
156
232
Current assets
Stocks
17
4,129
3,541
Debtors
18
3,619
1,904
Cash at bank and in hand
290
285
8,038
5,730
Creditors: amounts falling due within one year
19
(5,729)
(4,689)
Net current assets
2,309
1,041
Total assets less current liabilities
2,465
1,273
Creditors: amounts falling due after more than one year
20
(6)
Provisions for liabilities
Provisions
22
250
69
Deferred tax liability
23
17
(250)
(86)
Net assets
2,215
1,181
Capital and reserves
Called up share capital
25
3,444
3,444
Profit and loss reserves
(1,229)
(2,263)
Total equity
2,215
1,181
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 16 April 2025 and are signed on its behalf by:
R Foulkes
Director
Company registration number 06757705 (England and Wales)
PHAROS MARINE AUTOMATIC POWER LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
360
(318)
Interest paid
(425)
(139)
Income taxes refunded
75
301
Net cash inflow/(outflow) from operating activities
10
(156)
Investing activities
Purchase of tangible fixed assets
(17)
Proceeds from disposal of subsidiaries
(34)
Interest received
1
2
Net cash generated from/(used in) investing activities
1
(49)
Financing activities
Payment of finance leases obligations
(6)
(6)
Net cash used in financing activities
(6)
(6)
Net increase/(decrease) in cash and cash equivalents
5
(211)
Cash and cash equivalents at beginning of year
285
496
Cash and cash equivalents at end of year
290
285
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
1
Accounting policies
Company information
Pharos Marine Automatic Power Limited is a private company limited by shares incorporated in England and Wales. The registered office is 14 Castle Mews, Hampton, TW12 2NP.
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 £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Pharos Marine Automatic Power Limited is a wholly owned subsidiary of Pharos Holdings, Inc. and the results of Pharos Marine Automatic Power Limited are included in the consolidated financial statements of Pharos Holdings, Inc. which are available from 14 Castle Mews, Hampton, England, TW12 2NP.
1.2
Going concern
The company meets its day to day working capital requirements through an invoice finance facility and advances from fellow group companies which are repayable on demand. The nature of the company's business is such that there can be considerable unpredictable variation in the timing of cash inflows. The directors consider that the company will continue to operate within the facility currently agreed with the providers of the invoice finance facility. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources and financial support from fellow group companies to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. The financial statements do not include any adjustments that would result from a withdrawal of the invoice finance facility or the loans from fellow group companies.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (dependent on contract terms), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Where the sales contract is one where we are effectively creating an asset for the customer and we have an enforceable right to be paid for the work completed to date then revenue is recognised over time. The output method is used to determine the extent to which each of the performance obligations has been satisfied.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 10 -
1.5
Intangible fixed assets - goodwill
Negative goodwill arising on the acquisition of trade, assets and liabilities has been written off as follows:
Negative goodwill up to the fair values of non-monetary assets acquired are recognised in the profit and loss account in the periods in which non-monetary assets are recovered, whether through depreciation or sale.
Negative goodwill arising on monetary assets are recognised in the profit and loss account in the period of benefit.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
10% and 21% per annum - straight line
Plant and machinery
10% - 33% per annum - straight line
Motor vehicles
20% per annum - 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.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.8
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.
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 11 -
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.
1.9
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.
Cost is calculated using the weighted average method.
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.
1.10
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.
1.11
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 include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
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.
1.13
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.
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.14
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.18
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.
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£'000
£'000
Turnover analysed by class of business
Aids to navigation
16,315
10,907
2024
2023
£'000
£'000
Turnover analysed by geographical market
Europe
2,924
1,510
Asia
1,579
823
Middle East
7,910
4,608
Other
1,490
1,467
UK-Mainland
1,695
2,103
North America
717
396
16,315
10,907
2024
2023
£'000
£'000
Other revenue
Interest income
1
2
4
Exceptional item
2024
2023
£'000
£'000
Expenditure
Exceptional item - Consultancy costs
70
-
In 2024, the company incurred consultancy expenses related group wide restructuring and refinancing.
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
5
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£'000
£'000
Exchange losses/(gains)
41
(30)
Research and development costs
137
370
Depreciation of owned tangible fixed assets
77
79
Operating lease charges
268
270
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
21
22
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Operations
62
53
Their aggregate remuneration comprised:
2024
2023
£'000
£'000
Wages and salaries
3,126
2,575
Social security costs
278
225
Pension costs
106
91
3,510
2,891
8
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
520
370
Company pension contributions to defined contribution schemes
17
16
537
386
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
301
280
Company pension contributions to defined contribution schemes
10
9
9
Interest receivable and similar income
2024
2023
£'000
£'000
Interest income
Interest on bank deposits
1
2
2024
2023
Investment income includes the following:
£'000
£'000
Interest on financial assets not measured at fair value through profit or loss
1
2
10
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
417
138
Other finance costs:
Other interest
8
1
425
139
11
Amounts written off investments
2024
2023
£'000
£'000
Other gains and losses
-
(34)
12
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
(76)
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Taxation
2024
2023
£'000
£'000
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
(17)
Total tax credit
(17)
(76)
The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£'000
£'000
Profit before taxation
1,017
78
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
254
15
Tax effect of expenses that are not deductible in determining taxable profit
23
22
Tax effect of utilisation of tax losses not previously recognised
(165)
(37)
Effect of change in corporation tax rate
3
Research and development tax credit
(132)
(76)
Taxation credit for the period
(17)
(76)
13
Intangible fixed assets
Goodwill
£'000
Cost
At 1 January 2024 and 31 December 2024
(1,584)
Amortisation and impairment
At 1 January 2024 and 31 December 2024
(1,584)
Carrying amount
At 31 December 2024
At 31 December 2023
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
14
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Motor vehicles
Total
£'000
£'000
£'000
£'000
Cost
At 1 January 2024 and 31 December 2024
556
257
18
831
Depreciation and impairment
At 1 January 2024
379
220
1
599
Depreciation charged in the year
52
21
4
77
At 31 December 2024
430
241
5
676
Carrying amount
At 31 December 2024
126
16
13
155
At 31 December 2023
177
37
17
231
15
Fixed asset investments
2024
2023
Notes
£'000
£'000
Investments in subsidiaries
16
1
1
16
Subsidiaries
Separate company financial statements are required to be prepared by law.
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Automatic Power Ltd
1
Dormant
Ordinary
100.00
Sims Systems Limited
2
Dormant
Ordinary
100.00
Registered office addresses (all UK unless otherwise indicated):
1,2
14 Castle Mews, Hampton, TW12 2NP
The investments in subsidiaries are all stated at cost.
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
17
Stocks
2024
2023
£'000
£'000
Work in progress
2,741
2,351
Finished goods and goods for resale
1,388
1,190
4,129
3,541
18
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
3,205
1,506
Corporation tax recoverable
76
Other debtors
99
62
Prepayments and accrued income
315
260
3,619
1,904
The comparative figure for trade debtors has been restated to reflect the fact that debts had been derecognised at 31 December 2023.
19
Creditors: amounts falling due within one year
2024
2023
Notes
£'000
£'000
Obligations under finance leases
21
5
5
Payments received on account
348
359
Trade creditors
2,989
2,427
Amounts owed to group undertakings
1,448
806
Taxation and social security
73
91
Other creditors
260
Accruals and deferred income
606
1,001
5,729
4,689
20
Creditors: amounts falling due after more than one year
2024
2023
Notes
£'000
£'000
Obligations under finance leases
21
6
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
21
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£'000
£'000
Within one year
5
5
In two to five years
6
5
11
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
22
Provisions for liabilities
2024
2023
£'000
£'000
Warranty Provision
250
69
Movements on provisions:
Warranty Provision
£'000
At 1 January 2024
69
Additional provisions in the year
332
Utilisation of provision
(151)
At 31 December 2024
250
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£'000
£'000
Accelerated capital allowances
-
17
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
23
Deferred taxation
(Continued)
- 22 -
2024
Movements in the year:
£'000
Liability at 1 January 2024
17
Credit to profit or loss
(17)
Liability at 31 December 2024
-
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
106
91
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.
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
25
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
3,443,494 Ordinary shares of £1 each
3,443,494
3,443,494
20 Ordinary A shares of £1 each
20
20
3,443,514
3,443,514
The company has two classes of ordinary shares which carry no right to fixed income.
26
Operating lease commitments
Lessee
2024
2023
£'000
£'000
Within one year
189
156
Between two and five years
459
474
648
630
27
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
2024
2023
2024
2023
£'000
£'000
£'000
£'000
AB Pharos Marine PTE Limited
1,068
1,067
-
2
Pharos Marine Automatic Power, Inc
722
332
1,073
809
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£'000
£'000
Sims Systems Limited
1
1
AB Pharos Marine PTE Limited
291
-
Pharos Marine Automatic Power, Inc
1,156
866
Other related parties
-
63
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
27
Related party transactions
(Continued)
- 24 -
2024
2023
Amounts due from related parties
£'000
£'000
AB Pharos Marine PTE Limited
-
31
Pharos Marine Automatic Power, Inc
-
92
28
Ultimate controlling party
At the balance sheet date the parent company of Pharos Marine Automatic Power Limited was Pharos Holdings, Inc. a company incorporated and registered in the U.S.A whose registered office is 2970 Peachtree Road, Suite 510, Atlanta, Ga, 30305.
At the balance sheet date Pharos Holdings, Inc. was the parent undertaking of the smallest and largest group within which Pharos Marine Automatic Power Limited belongs and for which consolidated financial statements are produced. Group financial information can be obtained from Pharos Marine Automatic Power Ltd, 14 Castle Mews, Hampton, TW12 2NP.
In March 2025 a group reorganisation took place whereby Pharos Marine Holdings Limited, whose registered office is 14 Castle Mews, Hampton, TW12 2NP, became the parent company of Pharos Holdings, Inc.
The ultimate controlling party of Pharos Marine Automatic Power Limited is Toxaway Advisory Group, LLC.
29
Cash generated from/(absorbed by) operations
2024
2023
£'000
£'000
Profit after taxation
1,034
154
Adjustments for:
Taxation credited
(17)
(76)
Finance costs
425
139
Investment income
(1)
(2)
Depreciation and impairment of tangible fixed assets
77
79
Other gains and losses
-
34
Increase in provisions
181
39
Movements in working capital:
Increase in stocks
(588)
(1,351)
Increase in debtors
(1,791)
(230)
Increase in creditors
1,040
896
Cash generated from/(absorbed by) operations
360
(318)
PHAROS MARINE AUTOMATIC POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
30
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£'000
£'000
£'000
Cash at bank and in hand
285
5
290
Obligations under finance leases
(11)
6
(5)
274
11
285
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