Company registration number SC261216 (Scotland)
Safehouse Habitats (Scotland) Limited
financial statements
for the year ended 29 May 2024
Pages for filing with registrar
Safehouse Habitats (Scotland) Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 11
Safehouse Habitats (Scotland) Limited
Balance sheet
as at 29 May 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
84,322
83,232
Tangible assets
5
463,351
858,296
Investments
6
20,000
849,856
567,673
1,791,384
Current assets
Stocks
210,377
105,748
Debtors
8
8,148,544
6,365,316
Cash at bank and in hand
321,763
38,416
8,680,684
6,509,480
Creditors: amounts falling due within one year
9
(2,971,179)
(2,995,434)
Net current assets
5,709,505
3,514,046
Total assets less current liabilities
6,277,178
5,305,430
Creditors: amounts falling due after more than one year
10
(10,162)
Net assets
6,277,178
5,295,268
Capital and reserves
Called up share capital
95
95
Other reserves
5
5
Profit and loss reserves
11
6,277,078
5,295,168
Total equity
6,277,178
5,295,268
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 23 May 2025 and are signed on its behalf by:
C Maver
Director
Company registration number SC261216 (Scotland)
Safehouse Habitats (Scotland) Limited
Notes to the financial statements
for the year ended 29 May 2024
- 2 -
1
Accounting policies
Company information
Safehouse Habitats (Scotland) Limited is a private company limited by shares incorporated in Scotland. The registered office is Strathmore House, Charles Bowman Avenue, Claverhouse Industrial Park, Forfar Road, Dundee, DD4 9UB.
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 as applicable to companies subject to the small companies' regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated financial statements. The financial statements present information about the company as an individual entity and not about its group.
Safehouse Habitats (Scotland) Limited is a wholly owned subsidiary of Starn Group Limited and the results of Safehouse Habitats (Scotland) Limited are included in the consolidated financial statements of Starn Group Limited which are available from its registered office.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the annual budget, forecast future cash flows and, most notably, the agreement reached by the Group with its lenders in May 2025 to extend its banking arrangements to 31 May 2027 in making their assessment. The directors have performed a robust analysis of the forecasts and projections, which make reasonable and realistic assumptions regarding possible changes in trading performance and take accounts of these amendments to its structure and funding arrangements. The forecasts and projections show that the company will be able to operate within the terms of its revised banking facilities agreements.
Based on these assessments and having regard to the resources available to the group and therefore the company, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Turnover
Turnover is stated net of VAT, other sales taxes and trade discounts. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Turnover from the supply of services represents the value of services provided under contracts to the extent there is a right to consideration, and is recorded at the value of consideration due. Where a contract for services has only been partially completed at the balance sheet date, turnover represents the value of the services provided to that date based on the contract terms and pricing. Where payments are received from customers in advance of services provided, the amounts are recorded as Deferred Income and included as part of Creditors due within one year.
Safehouse Habitats (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 29 May 2024
1
Accounting policies (continued)
- 3 -
1.4
Intangible fixed assets other than goodwill
Intangible assets - software development
Software development expenditure is written off, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is capitalised as an intangible asset and amortised over the period during which the Company is expected to benefit. The period is between 3 and 5 years. Provision is made for any impairment.
Intangible assets – research and development
Research expenditure is written off as incurred. Development expenditure is also written off, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is deferred and amortised over the period during which the company is expected to benefit. This period is between 3 and 5 years. Provision is made for any impairment.
Intangible assets – patents and trademarks
Patents and trademarks are included at cost and depreciated in equal annual instalments over a period of 3 years which is their estimated useful economic life. Provision is made for any impairment.
1.5
Tangible fixed assets
Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment.
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset on a straight line basis over its expected useful life as follows:
Leasehold improvements
2.5 to 10 years straight line
Plant and equipment
1.5 to 4 years straight line
Fixtures and fittings
4 years straight line
Motor vehicles
4 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
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.
1.7
Stocks
Stocks are stated at the lower of cost and met realisable value. Net realisable value is based on estimated net selling price, less further costs expected to be incurred up to the point of sale. Provision is made for obsolete, slow-moving or defective items where appropriate.
1.8
Cash and cash equivalents
Cash at bank and in hand are basic financial instruments and include cash in hand, and deposits held at call with banks.
Safehouse Habitats (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 29 May 2024
1
Accounting policies (continued)
- 4 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which 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.
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.
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Safehouse Habitats (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 29 May 2024
1
Accounting policies (continued)
- 5 -
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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
The amounts charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the contributions payable in the year and solely arises from defined contribution pension schemes. Differences between contributions payable in the year and contributions actually paid are shown as accruals or prepayments in the balance sheet.
1.14
Leases
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term, except where the period to the review date on which rent is first expected to be adjusted to the prevailing market rate is short than the full lease term, in which case the shorter period is used.
1.15
Foreign exchange
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the prevailing rates of exchange at that date. All differences are taken to the profit and loss account.
1.16
Finance costs of financial liabilities are recognised in the profit and loss account over the term of the debt instruments concerned at a constant rate on the carrying amount.
Safehouse Habitats (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 29 May 2024
- 6 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Carrying value of investments
The company initially recognises investments in subsidiaries at cost. The Board perform regular reviews of the current and expected future trading performance of subsidiaries and considers any adverse impact on the carrying value of investments in subsidiaries. Any impairment losses are recognised through the profit and loss account. The expected future trading performance involves an element of judgement and actual results may differ materially, impacting the assessment of the carrying value of investments in subsidiaries.
Carrying value of stock
At the end of each financial period, the company makes a provision against obsolete and slow moving stock. Such provisions are calculated using actual current information.
Carrying value of intercompany balances
Intercompany debtors are assessed at each reporting date for any indication of impairment. If any such indication exists, the entity determines the recoverable amount of the intercompany debtor. The calculation of recoverable amount involves the use of net assets but, in some cases, it uses projected future cash flows which use estimates and assumptions on various inputs such as turnover, growth rates, margins, earnings multiples, risk-adjusted discount rate, as well as future economic and market conditions.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
24
18
Safehouse Habitats (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 29 May 2024
- 7 -
4
Intangible fixed assets
Other
£
Cost
At 30 May 2023
1,397,330
Additions
57,814
At 29 May 2024
1,455,144
Amortisation and impairment
At 30 May 2023
1,314,098
Amortisation charged for the year
56,724
At 29 May 2024
1,370,822
Carrying amount
At 29 May 2024
84,322
At 29 May 2023
83,232
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 30 May 2023
843,713
4,656,882
5,500,595
Additions
105,402
105,402
Disposals
(301,135)
(301,135)
At 29 May 2024
843,713
4,461,149
5,304,862
Depreciation and impairment
At 30 May 2023
828,155
3,814,144
4,642,299
Depreciation charged in the year
6,545
375,333
381,878
Eliminated in respect of disposals
(182,666)
(182,666)
At 29 May 2024
834,700
4,006,811
4,841,511
Carrying amount
At 29 May 2024
9,013
454,338
463,351
At 29 May 2023
15,558
842,738
858,296
Safehouse Habitats (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 29 May 2024
- 8 -
6
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
20,000
849,856
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 30 May 2023
849,856
Disposals
(25,531)
At 29 May 2024
824,325
Impairment
At 30 May 2023
-
Impairment losses
804,325
At 29 May 2024
804,325
Carrying amount
At 29 May 2024
20,000
At 29 May 2023
849,856
On 1 August 2023, the company sold the assets and trade of Safehouse Habitats Middle East Oil Well & Gas Equipments Installations for a total consideration of £782,000. Any remaining assets and liabilities have been brought into the company balance sheet at the year end, meaning this subsidiary is now dormant. The transaction has been treated as a disposal in the current year.
Post year end, the intention is to hive up subsidiary Safe-Ex Limited into the company and so the investment value has been fully impaired.
Safehouse Habitats (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 29 May 2024
- 9 -
7
Subsidiaries
Details of the company's subsidiaries at 29 May 2024 are as follows:
Name of undertaking
Registered office
Class of shares held
% Held
Direct
Starn USA LLC
United States of America
Ordinary
100
Safehouse Habitats Do Brasil Serivicos Technicos E Manutebcao Em Habitataculos LTDA
Brazil
Ordinary
100
Safehouse Habitats Middle East Oil Well & Gas Equiments Installations **
United Arab Emirates
Ordinary
100
Safe-Ex Limited
United Kingdom
Ordinary
100
**The company owns 49% of the equity interest - but has de facto control
The principal activity of all the directly held companies comprises the sale and rental of specialist, engineered, secure enclosures (habitats) to a range of sectors including energy, marine, industrial and, more recently, medical and healthcare. Those indirectly held are engaged in rope access, inspection and training services for the oil & gas industry.
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,257,262
1,536,223
Amounts owed by group undertakings
5,125,529
3,363,386
Other debtors
416,086
403,685
7,798,877
5,303,294
Deferred tax asset
61,659
7,860,536
5,303,294
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
288,008
897,341
Deferred tax asset
164,681
288,008
1,062,022
Total debtors
8,148,544
6,365,316
Amounts due from group undertakings are interest free, unsecured and repayable on demand and arise from arm's length intra-group trading.
Safehouse Habitats (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 29 May 2024
- 10 -
9
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
406,239
676,293
Amounts owed to group undertakings
1,676,134
1,605,275
Taxation and social security
50,382
58,118
Other creditors
838,424
655,748
2,971,179
2,995,434
Certain amounts owed to group undertakings attract interest at 3.5%, are unsecured and have no set repayment dates.
10
Creditors: amounts falling due after more than one year
2024
2023
£
£
Taxation and social security
10,162
11
Profit and loss reserves
The profit and loss account comprises accumulated profits net of dividends.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Gavin Black
Statutory Auditor:
Henderson Loggie LLP
Date of audit report:
23 May 2025
13
Financial commitments, guarantees and contingent liabilities
The Company has a contingent liability under the Group's banking facility arising from the cross guarantees it has given which enable it to access funding. At 29 May 2024, the potential liability to the Company under these arrangements amounted to £3.1m (2023 - £3.7m). Of that facility, £Nil (2023 - £Nil) of the revolving credit facility remains undrawn.
HSBC holds a fixed and floating charge over all the property or undertaking of the Company.
Safehouse Habitats (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 29 May 2024
- 11 -
14
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
1,099,250
1,227,000
15
Parent company
Energy Growth Investors, through the investing fund EGM Cayman L.P. control the company as a result of controlling the majority of the issued share capital and voting interest.
The smallest group in which the results of the Company are consolidated is that headed by Starn Group Limited, a company incorporated in Scotland. Copies of its Group financial statements are available from: Starn Group Limited, 2 Marischal Square, Broad Street, Aberdeen, AB10 1DQ.
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