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Financial Statements
Causeway Geotech Limited
For the year ended 31 December 2024
Registered number: NI610766
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Company Information
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Boris Caro Vargas (resigned 19 December 2024)
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Terry James Downes (resigned 6 June 2025)
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John Yeglic (appointed 19 December 2024)
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Sealaska Commercial Services, LLC (appointed 6 June 2025)
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Chartered Accountants & Statutory Auditors
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12 - 15 Donegall Square West
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John W Pinkerton & Son Solicitors
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Contents
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Independent auditor's report
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Statement of comprehensive income
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Statement of changes in equity
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Notes to the financial statements
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Strategic report
For the year ended 31 December 2024
The directors present their Strategic report on the company for the year ended 31 December 2024.
Principal activity and business review
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The principal activity of the Company during the year was offshore and onshore geotechnical investigations.
The profit and loss account for the year shows turnover of £25,464,732 (2023: £22,776,460) and profit for the financial year of £2,124,659 (2023: £1,889,700). Gross profit margin has increased from 22.3% to 25.5%. The directors are positive about continued growth in the future.
Principal risks and uncertainties
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The directors consider that the principal risks and uncertainties faced by the Company are in the following categories:
Credit risk
The Company is exposed to the usual credit and cash flow risks associated with selling on credit and manages these through credit control procedures.
Liquidity risk
The Company maintains a mixture of short-term and long-term debt finance that is designed to ensure that the Company has sufficient funds for current operations and planned expansions.
Foreign exchange risk
The Company has transactional currency exposure arising primarily from sales and purchases in currencies other than sterling. Currently the Company manages exposure to this risk by way of natural hedging and, whilst the Company does not use financial instruments currently to hedge foreign exchange exposure, this is constantly reviewed.
Interest rate risk
The Company finances its operation through a mixture of retained profits, bank borrowings, intercompany loans, hire purchase and finance lease arrangements. The Company's exposure to interest rate fluctuations on its borrowings is managed through annual review of its borrowing requirements, and where appropriate, through the use of fixed or floating interest arrangements.
Inflation risk
Since the latter half of 2021 the UK has experienced the highest levels of inflation for the last 30 years. While inflation is steadily falling, prices still remain historically high and there is a risk that inflation may remain 'sticky' for longer than expected. In the UK this will particularly be the case if labour inflation remains high, which will no doubt be supported by the c10% increase in the National Living Wage in April 2024. We have been successful to date in passing on the inflation suffered in our cost base maintaining our profitability, but there is no guarantee that we will be able to continue to increase prices if inflation persists.
Page 1
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Strategic report (continued)
For the year ended 31 December 2024
Financial key performance indicators
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The Company considers the following measures to be important indicators of the underlying performance of the business:
This report was approved by the board on 16 June 2025 and signed on its behalf.
Page 2
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Directors' report
For the year ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
The profit for the year, after taxation, amounted to £2,124,659 (2023 - £1,889,700).
Dividends of £729,422 have been authorised and approved during the year (2023: £Nil).
The directors who served during the year were:
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Boris Caro Vargas (resigned 19 December 2024)
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Terry James Downes (resigned 6 June 2025)
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John Yeglic (appointed 19 December 2024)
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Sealaska Commercial Services, LLC (appointed 6 June 2025)
Page 3
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Directors' report (continued)
For the year ended 31 December 2024
The Company plans to continue its current activities.
Branches outside the United Kingdom
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The Company operates a branch in the Republic of Ireland.
Matters covered in the Strategic report
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Information the Company has chosen, in accordance with S414C (II) of the Companies Act 2006, to set out in the Strategic report which would otherwise by required Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' to be contained in the Directors' report is as follows:
∙Principal activity and business review;
∙Principal risks and uncertainties; and
∙Financial key performance indicators
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
The auditor, Grant Thornton (NI) LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 16 June 2025 and signed on its behalf.
Page 4
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Independent auditor's report to the members of Causeway Geotech Limited
We have audited the financial statements of Causeway Geotech Limited, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity for the financial year ended 31 December 2024, and the related notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion, Causeway Geotech Limited's financial statements:
∙give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the assets, liabilities and financial position of the Company as at 31 December 2024 and of its financial performance for the financial year then ended; 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 'Responsibilities of the auditor 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 United Kingdom, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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
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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 the date 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.
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Independent auditor's report to the members of Causeway Geotech Limited (continued)
Other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's report thereon, including the Directors' report and the Strategic Report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
∙the information given in the Directors' report and the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements, and
∙the Directors' report and the Strategic Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment we have obtained in the course of the audit, we have not identified material misstatements in the Directors' report and the Strategic 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.
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Independent auditor's report to the members of Causeway Geotech Limited (continued)
Responsibilities of management and those charged with governance for the financial statements
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Management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS102 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, management is 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 management either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Responsibilities of the auditor for the audit of the financial statements
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The objectives of an auditor 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 their 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 an auditor's responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Explanation as to what extent 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, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
Based on our understanding of the Company and the industry, we identified that the principal risks of non-compliance with laws and regulations related to Data Privacy Laws, Employment Law, Environmental Regulations, Pension Regulations and Health and Safety Laws and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK tax legislation. The Audit engagement partner considered the experience and expertise of the engagement team to ensure that the team had appropriate competence and capabilities to identify or recognise non-compliance with the laws and regulations. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions.
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Independent auditor's report to the members of Causeway Geotech Limited (continued)
We apply professional scepticism throughout the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.
In response to these principal risks, our audit procedures included but were not limited to:
∙inquiries of management on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
∙inspection of the Company's regulatory and legal correspondence and review of minutes of the board of directors' meetings during the year to corroborate inquiries made;
∙gaining an understanding of the entity's current activities, the scope of authorisation and the effectiveness of its control environment to mitigate risks related to fraud;
∙discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of the financial statements throughout the audit;
∙identifying and testing journal entries to address the risk of inappropriate journals and management override of controls;
∙designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
∙challenging assumptions and judgements made by management in their significant accounting estimates, including estimating the useful lives of tangible fixed assets and estimating an allowance for the impairment of stock and trade debtors; and
∙review of the financial statements disclosures to underlying supporting documentation and inquiries of management.
The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.
The purpose of our audit work and to whom we owe our responsibilities
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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.
Bronagh Bourke FCA (Senior statutory auditor)
for and on behalf of
Grant Thornton (NI) LLP
Chartered Accountants &
Statutory Auditors
Belfast
16 June 2025
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Statement of comprehensive income
For the year ended 31 December 2024
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Interest payable and similar expenses
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Profit for the financial year
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There was no other comprehensive income for 2024 (2023: £Nil).
All amounts relate to continuing operations.
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The notes on pages 12 to 28 form part of these financial statements.
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Page 9
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Causeway Geotech Limited
Registered number:NI610766
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Balance sheet
As at 31 December 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 June 2025.
The notes on pages 12 to 28 form part of these financial statements.
Page 10
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Statement of changes in equity
For the year ended 31 December 2024
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Dividends: Equity capital
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Statement of changes in equity
For the year ended 31 December 2023
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The notes on pages 12 to 28 form part of these financial statements.
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Page 11
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Notes to the financial statements
For the year ended 31 December 2024
Causeway Geotech Limited is a private company limited by shares and incorporated in Northern Ireland. The registered office is 8 Drumahiskey Road, Bendooragh, Ballymoney, County Antrim, BT53 7QL.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The financial statements are presented in Sterling (£).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Sealaska Services International Holdings Limited as at 31 December 2024 and these financial statements may be obtained from 5th Floor One New Change, London.
After reviewing the Company’s forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.
Page 12
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Page 13
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Page 14
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 15
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are
Page 16
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not the market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Investments in non-derivative instruments that are equity to the issuer are measured:
∙at fair value with changes recognised in the Income statement if the shares are publicly traded or their fair value can otherwise be measured reliably;
∙at cost less impairment for all other investments.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an 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.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Hire purchase and finance leases
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Assets held under finance leases are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Page 17
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Notes to the financial statements
For the year ended 31 December 2024
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Judgements in applying accounting policies and key sources of estimation uncertainty
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When preparing the financial statements, management makes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. The following are significant management judgments in applying the accounting policies of the Company that have the most significant effect on the financial statements.
a) Useful lives of tangible fixed assets
The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of fair values and residual values. The directors annually review these asset lives and adjust them as necessary to reflect current thinking on remaining lives in light of technological change, prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have significant impact on depreciation charges for the period. It is not practical to quantify the impact of changes in asset lives on an overall basis, as asset lives are individually determined, and there are a significant number of asset lives in use. The impact of any change would vary significantly depending on the individual changes in assets and the classes of assets impacted.
b) Allowance for impairment of stock
Management estimates the net realisable values of stock, taking into account the most reliable evidence available at each reporting date, as well as the current state of the stock held. The future realisation of these stocks may be affected by future technology or other market-driven changes that may reduce future selling prices.
c) Allowance for impairment of trade debtors
The Company estimates the allowance for doubtful debtors based on assessment of specific accounts where the Company has objective evidence comprising default in payment terms or significant financial difficulty that certain customers are unable to meet their financial obligations.
The whole of the turnover is attributable to the principal activity of the Company.
No analysis of revenue by activity or geographical area has been provided as, in the opinion of the directors, such disclosure would be seriously prejudicial to the interests of the Company.
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The operating profit is stated after charging:
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Depreciation of owned assets
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Depreciation of leased assets
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Capital grant amortisation
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Profit on disposal of fixed assets
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Page 18
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Notes to the financial statements
For the year ended 31 December 2024
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.
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The highest paid director received remuneration of £158,400 (2023 - £133,400).
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The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £50,000 (2023 - £34,000).
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Page 19
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Notes to the financial statements
For the year ended 31 December 2024
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Interest payable and similar expenses
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Finance leases and hire purchase contracts
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Foreign tax on income for the year
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Origination and reversal of timing differences
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Page 20
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Notes to the financial statements
For the year ended 31 December 2024
9.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
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Expenses not deductible for tax purposes
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Income not taxable for tax purposes
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Fixed asset timing differences
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Effects of taxes in foreign jurisdictions
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Adjustment to tax in respect of prior periods
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
Page 21
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Notes to the financial statements
For the year ended 31 December 2024
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Transfers between classes
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Plant and machinery with a net book value of £283,720 (2023: £324,784) have been pledged as security over the Company's borrowing.
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Page 22
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Notes to the financial statements
For the year ended 31 December 2024
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There is no material difference between the replacement cost of stocks and their balance sheet values.
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Amounts owed by group undertakings
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Prepayments and accrued income
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An impairment loss of £61,861 (2023: £71,116) was recognised against trade debtors.
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
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Cash and cash equivalents
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Page 23
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Notes to the financial statements
For the year ended 31 December 2024
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Trade and other creditors are payable at various dates over the coming months in accordance with the suppliers' usual and customary credit terms.
Corporation tax and other taxes are repayable at various dates over the coming months in accordance with the applicable statutory provisions.
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
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Creditors: Amounts falling due after more than one year
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Obligations under finance leases and hire purchase contracts
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Amounts owed to group undertakings
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Government grants received
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Amounts owed to group undertakings are deemed to be financing in nature and have a market rate of interest applied. These loans are due for repayment on or before 9 April 2028.
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Page 24
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Notes to the financial statements
For the year ended 31 December 2024
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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The bank loans relate to the Coronavirus Business Interruption Loan (CBIL) scheme. Under the CBIL scheme, the UK Government may provide a guarantee to Bank of Ireland in the event of non-payment by the Company in respect of the Loan on the terms agreed by the Bank, the British Business Bank and the UK Government subject to certain eligibility criteria, up to 80% of the outstanding debt.
The remaining 20% is secured by:
- A Chattels mortgage over certain assets of the Company;
- A floating debenture over the assets of the Company; and
- Life policy agreement of £225,000 in respect of D O'Mahony and P Dunlop.
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Finance leases and hire purchase contracts are secured on the assets to which they relate.
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Page 25
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Notes to the financial statements
For the year ended 31 December 2024
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Fixed asset timing differences
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Short term timing differences
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Losses and other deductions
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The grants are being amortised in line with the depreciation rate applied to the respective asset to which it relates.
The Company may have to repay government grants if certain conditions are not met. In the opinion of the directors the terms of offer have been complied with and thus there are no indications that the Company will suffer any loss in relation to the potential liabilities.
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Page 26
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Notes to the financial statements
For the year ended 31 December 2024
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Allotted, called up and fully paid
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50,000 (2023 - 50,000) Ordinary shares of £1.00 each
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Called up share capital
This represents the nominal value of shares that have been issued.
Profit and loss account
This includes all current and prior period retained profits and losses.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £260,110 (2023: £188,155). The contributions payable to the fund at the balance sheet date were £19,981 (2023: £40,400).
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Commitments under operating leases
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At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Between one and five years
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Page 27
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Notes to the financial statements
For the year ended 31 December 2024
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Related party transactions
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During the year the Company made purchases totalling £173,546 (2023: £25,565) with Scantech Geoscience Limited. At 31 December 2024 there is an amount owing by Scantech Geoscience Limited totalling £Nil (2023: £8,875). Causeway Geotech Limited and Scantech Geoscience Limited are related by virtue of common directors and ultimate common shareholders.
During the year the Company was advanced loans totalling £Nil (2023: £2,175,898) from Sealaska Services International Holdings Limited and made repayments on those loans totalling £405,900 (2023: £263,777). At 31 December 2024 there is an amount owing to Sealaska Services International Holdings Limited totalling £2,650,906 (2023: £2,817,739). Interest was charged on the loans of £222,427. Causeway Geotech Limited and Sealaska Services International Holdings Limited are related by virtue of common directors and ultimate common shareholders.
During the year the Company had incurred rental charges totalling £18,818 (2023: £18,270) from Balnamore Properties Limited. At 31 December 2024 there is an amount owing to Balnamore Properties Limited totalling £Nil (2023: £Nil). Causeway Geotech Limited and Balnamore Properties Limited are related by virtue of common directors.
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Post balance sheet events
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There are no post balance sheet events requiring disclosure.
The Company had capital commitments for fixed assets of £48,373 (2023: £216,038)
The immediate parent undertaking of the Company is Sealaska Services International Holdings Limited, a company incorporated in England.
The ultimate parent undertaking of the Company is Sealaska Corporation, a company incorporated in the United States of America.
The smallest group in which the results of Causeway Geotech Limited are consolidated is that headed by Sealaska Services International Holdings Limited. Copies of the group financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
The largest group in which the results of Causeway Geotech Limited are consolidated is that headed by Sealaska Corporation. Copies of the group financial statements are available from One Sealaska Plaza, Suite 400, Juneau, AK, 99801.
The directors consider there to be no ultimate controlling party.
Page 28
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