Company Registration No. SC165384 (Scotland)
SALTIRE ENERGY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
SALTIRE ENERGY LIMITED
COMPANY INFORMATION
Directors
M D Loggie
J W Loggie
S Hamilton
P Perfect
Secretary
Peterkins Solicitors
Company number
SC165384
Registered office
100 Union Street
ABERDEEN
AB10 1QR
Auditor
Anderson Anderson & Brown Audit LLP
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
United Kingdom
AB15 8PU
SALTIRE ENERGY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 33
SALTIRE ENERGY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Fair review of the business
The Saltire Energy Group, being Saltire Energy Limited and its subsidiaries (collectively "the group"), is a global market leader in specialist drilling equipment rental. The group comprises three divisions: Saltire Energy Products, Saltire Pressure Controls and Saltire Drilling Products, providing these services and equipment to international markets.
During the current financial year, the group has continued to expand its product offering as a result of customer demand and its continual investment in new, innovative technology. This investment will strengthen the group's long term growth plans.
The group continues to fund the Saltire in the Community initiative, providing life changing opportunities for disadvantaged young people, both locally and internationally.
The group’s statement of comprehensive income is shown on page 8.
The key financial performance indicators during the year were as follows:
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Equity shareholders’ funds | | | |
* As restated
Oil production and prices are reasonably stable internationally however domestically the UK market is less confident about the future of the oil industry than it is in international markets. Accordingly, the group has maintained a tight cost base but the tight margins experienced in recent years are expected to remain.
The directors have assessed that no indicators of impairment or impairment reversal of the group’s tangible fixed assets were present and no impairment is required in 2024.
The directors are pleased the group has been able to deliver another strong operating profit. The group continues to reinvest all profits back into the business to ensure the group is in a healthy financial position to tackle any further changes to the market. The directors are still confident in the group's profitable business model and believe the group will continue to trade profitably in the future.
Principal risks and uncertainties
The principal risks and uncertainties facing the group are broadly grouped as:
Competitive Risks - The group competes with suppliers much larger than itself and with greater resources. The group is able to distinguish itself by availability of product, a wide range of equipment and unparalleled customer service.
Oil Price - Oil price and market expectations of potential changes in the price of oil. These expectations have the ability to impact Rig Operators production levels and consequently impact on the group's financial performance.
Economic instability - Economic uncertainty in key markets is likely to impact operating results. Not least of these uncertainties is the current UK government’s windfall tax policy which is a significant deterrent to future investment by North Sea operators.
Cyber attacks - Systems and infrastructure being targeted.
SALTIRE ENERGY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
M D Loggie
Director
26 June 2025
SALTIRE ENERGY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid (2023: £nil). The directors do not recommend payment of a final dividend (2023: £nil).
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M D Loggie
J W Loggie
S Hamilton
P Perfect
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Future developments
The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments to the extent these are applicable.
Auditor
The auditor, Anderson Anderson & Brown Audit LLP, were appointed during the year. A resolution to appoint Anderson Anderson & Brown Audit LLP as auditor of the company will be proposed at the next general meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company and group 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 auditor of the company and group is aware of that information.
On behalf of the board
M D Loggie
Director
26 June 2025
SALTIRE ENERGY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SALTIRE ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SALTIRE ENERGY LIMITED
- 5 -
Opinion
We have audited the financial statements of Saltire Energy Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group's and the parent company's affairs as at 30 June 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
SALTIRE ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SALTIRE ENERGY LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, 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 assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.
All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent company and the sector in which they operate, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:
SALTIRE ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SALTIRE ENERGY LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)
We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:
Management override of controls to manipulate the group and parent company’s key performance indicators to meet targets;
Timing and completeness of revenue recognition;
Management judgement applied in calculating provisions; and
Compliance with relevant laws and regulations which directly impact the financial statements and those that the group and parent company needs to comply with for the purpose of trading.
Our audit procedures to respond to those risks included:
Testing of journal entries and other adjustments for appropriateness;
Testing a sample of sales transactions and reviewing revenue recognition around the year end;
Evaluating the business rationale of significant transactions outside the normal course of business;
Reviewing judgements made by management in their calculation of accounting estimates for potential management bias;
Enquiries of management about litigation and claims and inspection of relevant correspondence; and
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involved intentional concealment, forgery, collusion, omission or misrepresentation.
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.
Christopher Masson (Senior Statutory Auditor)
For and on behalf of Anderson Anderson & Brown Audit LLP
26 June 2025
Statutory Auditor
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
United Kingdom
AB15 8PU
SALTIRE ENERGY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
29,770,879
27,668,058
Cost of sales
(10,457,292)
(8,831,382)
Gross profit
19,313,587
18,836,676
Distribution costs
(40,637)
(118,762)
Administrative expenses
(5,473,247)
(5,008,440)
Gain on sale of fixed assets
383,144
1,715,192
Operating profit
4
14,182,847
15,424,666
Interest receivable and similar income
8
7
Interest payable and similar expenses
9
(1,523,004)
(1,327,769)
Amounts written off investments
13
(282,000)
-
Profit before taxation
12,377,850
14,096,897
Current tax
Total current tax
(1,204,046)
(1,753,098)
Deferred tax
Origination and reversal of timing differences
(1,304,143)
(1,691,674)
Adjustment in respect of prior periods
(828,031)
-
Total deferred tax
(2,132,174)
(1,691,674)
Total tax charge on profit
10
(3,336,220)
(3,444,772)
Profit and total comprehensive income for the financial year
24
9,041,630
10,652,125
Profit and total comprehensive income for the financial year is all attributable to the owners of the parent company.
The group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
SALTIRE ENERGY LIMITED
GROUP BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
88,815,294
86,556,407
Investments
13
282,000
88,815,294
86,838,407
Current assets
Stocks
15
49,501
42,483
Debtors
16
31,543,935
30,867,787
Cash at bank and in hand
1,508,584
2,902,304
33,102,020
33,812,574
Creditors: amounts falling due within one year
17
(21,520,474)
(28,612,873)
Net current assets
11,581,546
5,199,701
Total assets less current liabilities
100,396,840
92,038,108
Creditors: amounts falling due after more than one year
18
(7,262,846)
(10,077,918)
Provisions for liabilities
Deferred tax liability
21
18,042,972
15,910,798
(18,042,972)
(15,910,798)
Net assets
75,091,022
66,049,392
Capital and reserves
Called up share capital
23
1,240
1,240
Profit and loss reserves
24
75,089,782
66,048,152
Total equity
75,091,022
66,049,392
The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
26 June 2025
M D Loggie
Director
SALTIRE ENERGY LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
73,066,099
70,820,954
Investments
13
157,802
439,802
73,223,901
71,260,756
Current assets
Stocks
15
35,848
34,945
Debtors
16
29,463,134
28,358,830
Cash at bank and in hand
1,394,455
2,849,864
30,893,437
31,243,639
Creditors: amounts falling due within one year
17
(23,564,050)
(29,165,623)
Net current assets
7,329,387
2,078,016
Total assets less current liabilities
80,553,288
73,338,772
Creditors: amounts falling due after more than one year
18
(1,915,279)
(3,935,797)
Provisions for liabilities
Deferred tax liability
21
14,086,859
12,114,419
(14,086,859)
(12,114,419)
Net assets
64,551,150
57,288,556
Capital and reserves
Called up share capital
23
1,240
1,240
Profit and loss reserves
24
64,549,910
57,287,316
Total equity
64,551,150
57,288,556
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £7,262,594 (2023 - £10,165,498 profit).
The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
26 June 2025
M D Loggie
Director
Company Registration No. SC165384
SALTIRE ENERGY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2022
1,240
55,396,027
55,397,267
Year ended 30 June 2023:
Profit and total comprehensive income for the year - as restated
-
10,652,125
10,652,125
Balance at 30 June 2023
1,240
66,048,152
66,049,392
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
9,041,630
9,041,630
Balance at 30 June 2024
1,240
75,089,782
75,091,022
SALTIRE ENERGY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2022
1,240
47,121,818
47,123,058
Year ended 30 June 2023:
Profit and total comprehensive income for the year - as restated
-
10,165,498
10,165,498
Balance at 30 June 2023
1,240
57,287,316
57,288,556
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
7,262,594
7,262,594
Balance at 30 June 2024
1,240
64,549,910
64,551,150
SALTIRE ENERGY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
12,843,834
2,712,930
Interest paid
(1,320,085)
(1,304,911)
Income taxes paid
(2,457,349)
(274,751)
Net cash inflow from operating activities
9,066,400
1,133,268
Investing activities
Purchase of tangible fixed assets
(229,369)
(8,538)
Proceeds on disposal of tangible fixed assets
1,291,388
4,496,089
Interest received
7
Net cash generated from investing activities
1,062,026
4,487,551
Financing activities
Refinancing of tangible fixed assets
395,991
613,261
Payment of finance leases obligations
(5,867,993)
(6,828,469)
Net cash used in financing activities
(5,472,002)
(6,215,208)
Net increase/(decrease) in cash and cash equivalents
4,656,424
(594,389)
Cash and cash equivalents at beginning of year
(3,186,949)
(2,592,560)
Cash and cash equivalents at end of year
1,469,475
(3,186,949)
Relating to:
Cash at bank and in hand
1,508,584
2,902,304
Bank overdrafts included in creditors payable within one year
(39,109)
(6,089,253)
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
1
Accounting policies
Company information
Saltire Energy Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 100 Union Street, Aberdeen, AB10 1QR.
The group consists of Saltire Energy Limited and all of its subsidiaries (collectively known as "the group").
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements (where applicable):
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Saltire Energy Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources 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.
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Turnover
Turnover represents net income receivable from the sale and rental of drilling equipment.
Turnover from the sale of drilling equipment is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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. Turnover in respect of the rental of drilling equipment is recognised on a straight line basis over the rental period.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.
At each reporting date, goodwill is assessed to determine whether there is any indication of impairment. If any such indication exists, goodwill is formally tested for impairment by comparing its carrying value with its recoverable amount.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Leasehold improvements
over the life of lease
Plant & machinery
not depreciated
Fixtures, fittings & equipment
15/20% straight line
Motor vehicles
25% straight line
Plant and machinery includes drilling equipment that the group rents to its customers. These assets are continually refurbished to a very high standard on return from hire and this is reflected in their high residual values and in the absence of a depreciation charge. Residual values are however periodically reassessed and depreciation applied to any depreciable amount arising following reassessment at rates between 10 and 25% straight line. Refurbishment costs are charged to the statement of comprehensive income. The directors believe this approach fairly reflects the consumption of economic benefits in relation to the rental assets.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of comprehensive income.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Impairment of fixed assets
At each reporting period end date, the group 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.
1.9
Stocks
Stocks and work in progress 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.
1.10
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 certain 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.
Impairment of financial assets
Financial assets 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 the statement of comprehensive income.
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 the statement of comprehensive income.
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 group 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.
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including certain creditors and loans from fellow group companies, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group 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 group.
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 statement of comprehensive income 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 group’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 statement of comprehensive income, 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 if, and only if, there is 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.
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.14
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.
1.15
Retirement benefits
The group operates a defined contribution scheme for the benefit of its employees. The assets of the scheme are held separately from those of the group. Contributions payable are charged to the statement of comprehensive income in the year they are payable.
1.16
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 asset's 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 the statement of comprehensive income 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 leased asset are consumed.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the statement of comprehensive income for the period.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 19 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Carrying value of plant & machinery
Plant and machinery includes drilling equipment that the group rents to its customers. These assets are continually refurbished to a very high standard on return from hire and this amongst other factors is reflected in their high residual values and low depreciation. The assessment of residual value requires the directors to exercise judgement including an annual reassessment based on current market conditions. The directors are satisfied no revision is required to the residual value assessments in the current year and hence no depreciation has been charged.
The carrying value of plant and machinery is outlined in the fixed asset note at note 12.
Amounts due from related parties
Amounts owed from related parties are stated in the accounts at their transaction price less any appropriate provision for irrecoverable amounts. In determining if a provision is required, the directors exercise judgement, considering any specific indicators that the recoverability of the balance may be in doubt.
Details of amounts owed to the group from related parties is outlined at note 16.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale and hire rental of drilling equipment
29,770,879
27,668,058
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
16,042,257
17,150,926
Europe
3,071,951
3,471,860
Middle East
2,903,042
2,054,023
The Americas
263,373
63,918
Asia, Far East and Australasia
4,988,744
3,241,462
Africa
2,498,680
1,681,564
Other
2,832
4,305
29,770,879
27,668,058
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
4
Operating profit
2024
2023
as restated
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences
137,112
800,352
Depreciation of owned tangible fixed assets
43,835
-
Profit on disposal of tangible fixed assets
(383,144)
(1,715,192)
Operating lease charges
33,156
34,581
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
63,000
52,875
Audit of the financial statements of the company's subsidiaries
11,700
7,000
74,700
59,875
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production staff
34
33
22
21
Administrative staff
15
15
15
15
Management staff
6
6
3
3
Total
55
54
40
39
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,064,933
2,600,143
2,173,338
1,509,869
Social security costs
239,215
217,656
173,135
152,535
Pension costs
108,058
99,401
78,782
70,396
3,412,206
2,917,200
2,425,255
1,732,800
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
225,423
193,160
Company pension contributions to defined contribution schemes
15,599
13,693
241,022
206,853
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
89,327
-
Company pension contributions to defined contribution schemes
8,933
-
As remuneration for qualifying services paid to directors in the comparative reporting period did not exceed £200,000, the disclosure of remuneration paid to the highest paid director is not required for that period.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
7
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
178,766
199,862
Other interest on financial liabilities
326,125
22,858
Interest on finance leases and hire purchase contracts
1,018,113
1,105,049
Total finance costs
1,523,004
1,327,769
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,867,154
1,616,038
Adjustments in respect of prior periods
(763,285)
111
Double tax relief
(189,470)
Total UK current tax
914,399
1,616,149
Foreign current tax on profits for the current period
299,541
136,949
Adjustments in foreign tax in respect of prior periods
(9,894)
Total current tax
1,204,046
1,753,098
Deferred tax
Origination and reversal of timing differences
1,304,143
1,691,674
Adjustment in respect of prior periods
828,031
Total deferred tax
2,132,174
1,691,674
Total tax charge
3,336,220
3,444,772
The actual charge 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
£
£
Profit before taxation
12,377,850
14,096,897
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
3,094,463
2,889,864
Tax effect of expenses that are not deductible in determining taxable profit
272,896
180,148
Tax effect of income not taxable in determining taxable profit
(153,559)
Change in unrecognised deferred tax assets
19,975
Adjustments in respect of prior years
(773,179)
111
Effect of change in corporation tax rate
-
304,780
Other permanent differences
(11,271)
(28,959)
Deferred tax adjustments in respect of prior years
828,031
Other tax adjustments, reliefs and transfers
(72,873)
Fixed asset differences
(1,083)
Other tax adjustments, reliefs and transfers
(29,901)
(197,982)
Foreign tax credits
139,972
136,949
Chargeable gains
41,641
140,969
Taxation charge
3,336,220
3,444,772
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 23 -
A change in the UK Corporation tax rate to 25% took effect from 1 April 2023.
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
25,760
Amortisation and impairment
At 1 July 2023 and 30 June 2024
25,760
Carrying amount
At 30 June 2024
At 30 June 2023
The company had no intangible fixed assets at 30 June 2024 or 30 June 2023.
12
Tangible fixed assets
Group
Leasehold improvements
Plant & machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
15,476
105,543,887
411,846
693,756
106,664,965
Additions
2,461
3,205,353
3,152
3,210,966
Disposals
(967,448)
(490,190)
(1,457,638)
At 30 June 2024
17,937
107,781,792
414,998
203,566
108,418,293
Depreciation and impairment
At 1 July 2023
19,256,193
409,725
442,640
20,108,558
Depreciation charged in the year
5,273
38,562
43,835
Eliminated in respect of disposals
(119,084)
(430,310)
(549,394)
At 30 June 2024
19,137,109
414,998
50,892
19,602,999
Carrying amount
At 30 June 2024
17,937
88,644,683
152,674
88,815,294
At 30 June 2023
15,476
86,287,694
2,121
251,116
86,556,407
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Tangible fixed assets
(Continued)
- 24 -
Company
Plant & machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023
86,696,537
460,476
644,436
87,801,449
Additions
3,194,072
3,152
3,197,224
Disposals
(967,448)
(490,190)
(1,457,638)
At 30 June 2024
88,923,161
463,628
154,246
89,541,035
Depreciation and impairment
At 1 July 2023
16,158,993
391,192
430,310
16,980,495
Depreciation charged in the year
5,273
38,562
43,835
Eliminated in respect of disposals
(119,084)
(430,310)
(549,394)
At 30 June 2024
16,039,909
396,465
38,562
16,474,936
Carrying amount
At 30 June 2024
72,883,252
67,163
115,684
73,066,099
At 30 June 2023
70,537,544
69,284
214,126
70,820,954
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant & machinery
16,287,586
22,370,672
15,886,370
20,920,222
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
157,802
157,802
Unlisted investments
282,000
282,000
282,000
157,802
439,802
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
13
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 July 2023
282,000
Written off
(282,000)
At 30 June 2024
-
Carrying amount
At 30 June 2024
-
At 30 June 2023
282,000
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 July 2023
157,802
282,000
439,802
Written off
-
(282,000)
(282,000)
At 30 June 2024
157,802
-
157,802
Carrying amount
At 30 June 2024
157,802
-
157,802
At 30 June 2023
157,802
282,000
439,802
14
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Saltire Drilling Tools Limited
See below
Dormant
Ordinary
100.00
Saltire Energy (Norway) Limited
See below
Dormant
Ordinary
100.00
Saltire Energy PTE Limited
See below
Provision of oilfield drilling equipment and services
Ordinary
100.00
Saltire Pressure Control Limited
See below
Provision of oilfield drilling equipment and services
Ordinary
100.00
The registered office of Saltire Drilling Tools Limited, Saltire Energy (Norway) Limited and Saltire Pressure Control Limited is 100 Union Street, Aberdeen, AB10 1QR.
The registered office of Saltire Energy PTE Limited is 30 Cecil Street, 19-08, Prudential Tower, Singapore 049712.
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
49,501
42,483
35,848
34,945
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,995,982
7,735,924
4,642,957
6,628,649
Gross amounts owed by contract customers
316,261
329,150
Corporation tax recoverable
523,297
Amounts owed by group undertakings
-
-
498,154
-
Amounts owed by related parties
23,415,165
20,916,763
23,771,773
20,623,799
Other debtors
201
49,951
-
40
Prepayments and accrued income
1,293,029
1,835,999
550,250
1,106,342
31,543,935
30,867,787
29,463,134
28,358,830
Amounts owed by related parties are interest free and have no formal repayment date.
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
as restated
as restated
Notes
£
£
£
£
Bank loans and overdrafts
19
39,109
6,089,253
39,109
3,248,748
Obligations under finance leases
20
5,215,558
5,541,622
4,980,361
5,073,955
Trade creditors
2,407,697
2,663,064
1,508,393
1,829,032
Amounts owed to group undertakings
1,099,162
3,036,017
Amounts owed to related parties
8,871,713
8,823,440
11,676,181
10,454,996
Corporation tax payable
1,327,252
2,057,258
1,286,077
2,506,992
Other taxation and social security
87,586
947,602
61,276
876,171
Other creditors
1,517,062
1,382,600
1,498,932
1,368,576
Accruals and deferred income
2,054,497
1,108,034
1,414,559
771,136
21,520,474
28,612,873
23,564,050
29,165,623
Obligations under finance lease agreements are secured by standard securities as well as a floating charge over the group's assets.
Included within other creditors of the group and company is £1,253,680 (2023 - £1,291,643) relating to tax settlements on the winding up of historic employer pension and trust arrangements.
Amounts owed to related parties and group undertakings are interest free and have no formal repayment date.
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
2,071,386
4,235,727
1,915,279
3,935,797
Other borrowings
19
5,191,460
5,842,191
7,262,846
10,077,918
1,915,279
3,935,797
Other borrowings are in respect of a director's loan. Details of movements in the year are outlined at note 27.
Obligations under finance lease agreements are secured by standard securities as well as a floating charge over the group's assets.
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
39,109
6,089,253
39,109
3,248,748
Other borrowings
5,191,460
5,842,191
5,230,569
11,931,444
39,109
3,248,748
Payable within one year
39,109
6,089,253
39,109
3,248,748
Payable after one year
5,191,460
5,842,191
Bank overdrafts are secured by standard securities as well as a floating charge over the assets of the group and cross guarantees between Saltire Energy Limited, Saltire Pressure Control Limited, Saltire Drilling Tools Limited, Foxley Energy Limited and Saltire Energy LLC.
Other borrowings are unsecured.
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
5,215,558
5,541,622
4,980,361
5,073,955
In two to five years
2,071,386
4,235,727
1,915,279
3,935,797
7,286,944
9,777,349
6,895,640
9,009,752
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
20
Finance lease obligations
(Continued)
- 28 -
Finance lease payments represent rentals payable by the company or group 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Group
£
£
Fixed asset timing differences
18,064,022
16,095,886
Short term timing differences
(21,050)
(18,439)
Losses and other deductions
-
(166,649)
18,042,972
15,910,798
Liabilities
Liabilities
2024
2023
Company
£
£
Fixed asset timing differences
14,107,313
12,132,858
Short term timing differences
(20,454)
(18,439)
14,086,859
12,114,419
Group
Company
2024
2024
Movements in the year:
£
£
Restated liability at 1 July 2023
15,910,798
12,114,419
Charge to profit or loss
2,132,174
1,972,440
Liability at 30 June 2024
18,042,972
14,086,859
Deferred tax balances are not expected to reverse within the next 12 months.
The group has estimated unrecognised tax losses of £2.0m (2023 - £0.7m) available for offset against future trading profits.
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
108,058
99,401
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,240
1,240
1,240
1,240
24
Reserves
Profit and loss reserves
Profit and loss reserves represent the total comprehensive income for the year and prior periods less dividends paid.
25
Financial commitments, guarantees and contingent liabilities
The company is party to an unlimited cross guarantee alongside Saltire Pressure Control Limited, Saltire Drilling Tools Limited, Foxley Energy Limited and Saltire Energy LLC. The potential liability to the company at 30 June 2024 was £nil (2023 - £nil) relating to the borrowings of other entities party to the cross guarantee.
26
Related party transactions
Remuneration of key management personnel
The directors of the company are regarded as the group's key management personnel. Details of remuneration paid to directors is outlined at note 7.
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
5,199,038
2,928,852
2,456,021
2,860,612
Company
Other related parties
3,671,793
2,281,081
1,716,165
1,999,942
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
26
Related party transactions
(Continued)
- 30 -
Rent paid
Sale of assets
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
780,000
888,000
-
4,034,880
Company
Other related parties
540,000
648,000
-
2,102,370
Company
The company has taken advantage of disclosure exemptions available under Section 33 of FRS 102 whereby it has not disclosed transactions entered into with any wholly-owned subsidiary of the group.
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
as restated
£
£
Group
Other related parties
8,871,713
8,823,440
Company
Other related parties
11,676,181
10,454,996
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
£
£
Group
Other related parties
23,415,165
20,916,763
Company
Other related parties
23,771,773
20,623,799
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
27
Directors' transactions
An interest free loan has been granted by a director to the group with the following amounts repaid to the director in the year:
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Director's loan
-
5,842,191
(650,731)
5,191,460
5,842,191
(650,731)
5,191,460
The director's loan is repayable a year and a day after notice being given and a postponement has been granted in favour of the group's bankers.
28
Controlling party
The company is controlled by M D Loggie, director.
29
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
9,041,630
10,652,125
Adjustments for:
Taxation charged
3,336,220
3,444,772
Finance costs
1,523,004
1,327,769
Investment income
(7)
Gain on disposal of tangible fixed assets
(383,144)
(1,715,192)
Depreciation and impairment of tangible fixed assets
43,835
-
Write off of fixed asset investments
282,000
-
Movements in working capital:
(Increase)/decrease in stocks
(7,018)
32,645
Increase in debtors
(152,851)
(8,467,123)
(Decrease)/increase in creditors
(598,953)
3,987,934
HMRC settlement creditor
(240,882)
(6,550,000)
Cash generated from operations
12,843,834
2,712,930
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 32 -
30
Analysis of changes in net debt - group
1 July 2023
Cash flows
New finance leases
30 June 2024
£
£
£
£
Cash at bank and in hand
2,902,304
(1,393,720)
-
1,508,584
Bank overdrafts
(6,089,253)
6,050,144
-
(39,109)
(3,186,949)
4,656,424
-
1,469,475
Borrowings excluding overdrafts
(5,842,191)
650,731
-
(5,191,460)
Obligations under finance leases
(9,777,349)
5,867,993
(3,377,588)
(7,286,944)
(18,806,489)
11,175,148
(3,377,588)
(11,008,929)
31
Prior period adjustment
Reconciliation of changes in equity - group
1 July
30 June
2022
2023
£
£
Adjustments to prior year
Foreign exchange adjustment to related party loans
-
(843,324)
Equity as previously reported
55,397,267
66,892,716
Equity as adjusted
55,397,267
66,049,392
Analysis of the effect upon equity
Profit and loss reserves
-
(843,324)
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Foreign exchange adjustment to related party loans
(843,324)
Profit as previously reported
11,495,449
Profit as adjusted
10,652,125
SALTIRE ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
31
Prior period adjustment
(Continued)
- 33 -
Reconciliation of changes in equity - company
1 July
30 June
2022
2023
£
£
Adjustments to prior year
Foreign exchange adjustment to related party loans
-
(843,324)
Equity as previously reported
47,123,058
58,131,880
Equity as adjusted
47,123,058
57,288,556
Analysis of the effect upon equity
Profit and loss reserves
-
(843,324)
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Foreign exchange adjustment to related party loans
(843,324)
Profit as previously reported
11,008,822
Profit as adjusted
10,165,498
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