Caseware UK (AP4) 2024.0.164 2024.0.164 2024-12-312024-12-3130false2024-01-01supply, installation and maintenance of maritime communication and navigation electronics.25truefalsefalse 01165320 2024-01-01 2024-12-31 01165320 2023-01-01 2023-12-31 01165320 2024-12-31 01165320 2023-12-31 01165320 2023-01-01 01165320 c:Director1 2024-01-01 2024-12-31 01165320 c:Director1 2024-12-31 01165320 c:Director4 2024-01-01 2024-12-31 01165320 c:Director6 2024-01-01 2024-12-31 01165320 c:Director7 2024-01-01 2024-12-31 01165320 c:Director7 2024-12-31 01165320 c:RegisteredOffice 2024-01-01 2024-12-31 01165320 d:Buildings d:ShortLeaseholdAssets 2024-01-01 2024-12-31 01165320 d:Buildings d:ShortLeaseholdAssets 2024-12-31 01165320 d:Buildings d:ShortLeaseholdAssets 2023-12-31 01165320 d:PlantMachinery 2024-01-01 2024-12-31 01165320 d:PlantMachinery 2024-12-31 01165320 d:PlantMachinery 2023-12-31 01165320 d:PlantMachinery d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 01165320 d:MotorVehicles 2024-01-01 2024-12-31 01165320 d:MotorVehicles 2024-12-31 01165320 d:MotorVehicles 2023-12-31 01165320 d:MotorVehicles d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 01165320 d:OfficeEquipment 2024-01-01 2024-12-31 01165320 d:OfficeEquipment 2024-12-31 01165320 d:OfficeEquipment 2023-12-31 01165320 d:OfficeEquipment d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 01165320 d:ComputerEquipment 2024-01-01 2024-12-31 01165320 d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 01165320 d:Goodwill 2024-12-31 01165320 d:Goodwill 2023-12-31 01165320 d:CurrentFinancialInstruments 2024-12-31 01165320 d:CurrentFinancialInstruments 2023-12-31 01165320 d:CurrentFinancialInstruments d:WithinOneYear 2024-12-31 01165320 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 01165320 d:UKTax 2024-01-01 2024-12-31 01165320 d:UKTax 2023-01-01 2023-12-31 01165320 d:ShareCapital 2024-12-31 01165320 d:ShareCapital 2023-12-31 01165320 d:ShareCapital 2023-01-01 01165320 d:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 01165320 d:RetainedEarningsAccumulatedLosses 2024-12-31 01165320 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 01165320 d:RetainedEarningsAccumulatedLosses 2023-12-31 01165320 d:RetainedEarningsAccumulatedLosses 2023-01-01 01165320 d:AcceleratedTaxDepreciationDeferredTax 2024-12-31 01165320 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 01165320 c:OrdinaryShareClass1 2024-01-01 2024-12-31 01165320 c:OrdinaryShareClass1 2024-12-31 01165320 c:OrdinaryShareClass1 2023-12-31 01165320 c:FRS102 2024-01-01 2024-12-31 01165320 c:Audited 2024-01-01 2024-12-31 01165320 c:FullAccounts 2024-01-01 2024-12-31 01165320 c:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 01165320 d:WithinOneYear 2024-12-31 01165320 d:WithinOneYear 2023-12-31 01165320 d:BetweenOneFiveYears 2024-12-31 01165320 d:BetweenOneFiveYears 2023-12-31 01165320 d:MoreThanFiveYears 2024-12-31 01165320 d:MoreThanFiveYears 2023-12-31 01165320 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2024-12-31 01165320 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-12-31 01165320 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2024-12-31 01165320 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2023-12-31 01165320 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2024-12-31 01165320 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2023-12-31 01165320 2 2024-01-01 2024-12-31 01165320 6 2024-01-01 2024-12-31 01165320 e:PoundSterling 2024-01-01 2024-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 01165320









SHIPS ELECTRONIC SERVICES LIMITED









DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
COMPANY INFORMATION


Directors
R Bell (resigned 30 November 2024)
T Heldarskard-Winnerskjold 
P Karisto 
M Alexander Brook (appointed 1 December 2024)




Registered number
01165320



Registered office
Unit 49 Riverside Ii Sir Thomas Longley Road
Medway City Estate

Rochester

Kent

ME2 4DP




Independent auditors
Barnes Roffe LLP
Chartered Accountants & Statutory Auditor

Charles Lake House

Claire Causeway

Crossways Business Park

Dartford

Kent

DA2 6QA





 
SHIPS ELECTRONIC SERVICES LIMITED
 

CONTENTS



Page
Directors' report
 
1 - 2
Independent auditors' report
 
3 - 6
Statement of comprehensive income
 
7
Statement of financial position
 
8
Statement of changes in equity
 
9
Notes to the financial statements
 
10 - 22


 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
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

The directors are responsible for preparing 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 judgments 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 2006They 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.

Directors

The directors who served during the year were:

R Bell (resigned 30 November 2024)
T Heldarskard-Winnerskjold 
P Karisto 
M Alexander Brook (appointed 1 December 2024)

Engagement with suppliers, customers and others

The company takes supplier and customer involvement seriously and ensures that any concerns that they raise are dealt with by the management team.

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Page 1

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





M Brook
Director

Date: 4 June 2025

Page 2

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHIPS ELECTRONIC SERVICES LIMITED
 

Opinion


We have audited the financial statements of Ships Electronic Services Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 3

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHIPS ELECTRONIC SERVICES LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 4

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHIPS ELECTRONIC SERVICES LIMITED (CONTINUED)

Auditors' 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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows:
• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• We identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience of the marine electronics sector;
• The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows:
o Companies Act 2006;
o FRS102;
o ISO standards;
o Accreditations specific to the marine electronics industry;
o UK sanctions regime relating to Russia;
o Employment legislation; and
o Tax legislation.
• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes, reviewing internal audit reports and inspecting legal
correspondence and invoices;
• Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:
• Making enquires of management as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
• Reviewing the financial statements and testing the disclosures against supporting documentation;
• Inspecting and testing journal entries to identify unusual or unexpected transactions;
• Assessing whether judgement and assumptions made in determining significant accounting estimates, including accruals, bad debt provision and depreciation were indicative of management bias; and
• Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.
The areas that we identified as being susceptible to misstatement through fraud were:
• Management bias in regard to accounting estimates and judgements made;
• Management override of controls; and
 
Page 5

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHIPS ELECTRONIC SERVICES LIMITED (CONTINUED)

• Posting of unusual journals or transactions.
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 involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our 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 Auditors' report.


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.





M.Cientanni (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants & Statutory Auditor
Charles Lake House
Claire Causeway
Crossways Business Park
Dartford
Kent
DA2 6QA
 

4 June 2025
Page 6

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
  
7,602,892
8,443,820

Cost of sales
  
(5,501,306)
(6,201,549)

Gross profit
  
2,101,586
2,242,271

Administrative expenses
  
(1,990,653)
(1,655,387)

Operating profit
  
110,933
586,884

Income from fixed assets investments
  
-
235,735

Interest receivable and similar income
 7 
145,237
106,334

Interest payable and similar expenses
 8 
(1,271)
(163)

Profit before tax
  
254,899
928,790

Tax on profit
 9 
(63,724)
(173,395)

Profit for the financial year
  
191,175
755,395

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 10 to 22 form part of these financial statements.

Page 7

 
SHIPS ELECTRONIC SERVICES LIMITED
REGISTERED NUMBER:01165320

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 10 
-
-

Tangible assets
 11 
16,185
19,944

Investments
  
1
1

  
16,186
19,945

Current assets
  

Stocks
 12 
1,087,461
1,324,455

Debtors: amounts falling due within one year
 13 
4,317,056
3,926,136

Cash at bank and in hand
 14 
203,140
214,576

  
5,607,657
5,465,167

Creditors: amounts falling due within one year
 15 
(1,048,546)
(1,100,990)

Net current assets
  
 
 
4,559,111
 
 
4,364,177

Total assets less current liabilities
  
4,575,297
4,384,122

Provisions for liabilities
  

Deferred tax
 16 
(12,667)
(12,667)

  
 
 
(12,667)
 
 
(12,667)

Net assets
  
4,562,630
4,371,455


Capital and reserves
  

Called up share capital 
 17 
350,000
350,000

Profit and loss account
  
4,212,630
4,021,455

  
4,562,630
4,371,455


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




M Brook
Director

Date: 4 June 2025

The notes on pages 10 to 22 form part of these financial statements.

Page 8

 
SHIPS ELECTRONIC SERVICES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2024
350,000
4,021,455
4,371,455



Profit for the year
-
191,175
191,175


At 31 December 2024
350,000
4,212,630
4,562,630



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
350,000
3,266,060
3,616,060



Profit for the year
-
755,395
755,395


At 31 December 2023
350,000
4,021,455
4,371,455


The notes on pages 10 to 22 form part of these financial statements.

Page 9

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Ships Electronic Services Limited is a private company limited by shares and incorporated in England and Wales. The registered office address of the company is Spinnaker House, Waterside Gardens, Fareham, PO16 8SD. The company's principal acitvities during the year were those of supply and maintenance of marine electronic navigation, communication and entertainment equipment and services.
 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 following principal accounting policies have been applied:

 
2.2

Foreign currency translation

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.

Page 10

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Revenue

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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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.

 
2.4

Operating leases: the company as lessee

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.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 11

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.6

Pensions

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 statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

 
2.7

Current and deferred taxation

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 reporting 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 reporting 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 reporting date.


 
2.8

Tangible fixed assets

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.

Page 12

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives on the following bases:


Short-term leasehold property
-
Term of lease
Plant and machinery
-
33% on cost per annum
Motor vehicles
-
25% on cost per annum
Office equipment
-
20% on cost per annum
Computer equipment
-
33% on cost per annum

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.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

Stocks

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 weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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.

 
2.11

Debtors

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.

 
2.12

Cash and cash equivalents

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.

 
2.13

Creditors

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.

Page 13

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.15

Financial instruments

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

a) Critical judgments in applying the company's accounting policies
There were no significant judgments and estimates exercised by management in the preparation of the financial statements.
b) Key accounting estimates and assumptions
The company has made key assumptions regarding the useful economic life of tangible fixed assets and this is further described in note 2.8.
The company has made key assumptions regarding dilapidations provisions included within accruals and this is further described in note 2.14.
The company has also made key assumptions regarding slow moving stock provision included within stock and this is further described in note 2.10 and 2.14. 


4.


Auditors' remuneration

2024
2023
£
£

Fees payable to the company's auditors and their associates for the audit of the company's financial statements
13,350
13,800

Page 14

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
2,557,716
2,191,967

2,557,716
2,191,967


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Engineering
15
12



Sales and administration
15
13

30
25


6.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
5,421
-

5,421
-



7.


Interest receivable

2024
2023
£
£


Other interest receivable
145,237
106,334

145,237
106,334

Page 15

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
1,271
163

1,271
163


9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
63,724
168,463


63,724
168,463


Total current tax
63,724
168,463

Deferred tax


Origination and reversal of timing differences
-
4,932

Total deferred tax
-
4,932


Tax on profit
63,724
173,395
Page 16

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
254,899
928,790


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
63,724
218,266

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
1,079

Capital allowances for year in excess of depreciation
-
4,516

Exempt dividends
-
(55,398)

Deferred Tax movement
-
4,932

Total tax charge for the year
63,724
173,395


Factors that may affect future tax charges

There are no factors that may affect future tax charges.

Page 17

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Intangible assets




Goodwill

£



Cost


At 1 January 2024
49,319



At 31 December 2024

49,319



Amortisation


At 1 January 2024
49,319



At 31 December 2024

49,319



Net book value



At 31 December 2024
-



At 31 December 2023
-



Page 18

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
56,363
87,643
36,915
127,690
308,611


Additions
-
-
-
8,653
8,653


Disposals
-
-
(6,250)
(10,989)
(17,239)



At 31 December 2024

56,363
87,643
30,665
125,354
300,025



Depreciation


At 1 January 2024
46,693
87,171
30,870
123,933
288,667


Charge for the year on owned assets
2,904
472
4,020
5,016
12,412


Disposals
-
-
(6,250)
(10,989)
(17,239)



At 31 December 2024

49,597
87,643
28,640
117,960
283,840



Net book value



At 31 December 2024
6,766
-
2,025
7,394
16,185



At 31 December 2023
9,670
472
6,045
3,757
19,944


12.


Stocks and work in progress

2024
2023
£
£

Work in progress
89,754
156,011

Goods for resale
997,707
1,168,444

1,087,461
1,324,455


Page 19

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Debtors

2024
2023
£
£


Trade debtors
1,467,355
1,238,915

Amounts owed by group undertakings
2,650,000
2,615,260

Other debtors
87,962
11,013

Prepayments and accrued income
111,739
60,948

4,317,056
3,926,136



14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
203,140
214,576

203,140
214,576



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
403,508
511,649

Corporation tax
-
69,689

Other taxation and social security
61,194
32,037

Other creditors
-
2,942

Accruals and deferred income
583,844
484,673

1,048,546
1,100,990


Page 20

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Deferred taxation




2024
2023


£

£






At beginning of year
(12,667)
(7,064)


Charged to profit or loss
-
(5,603)



At end of year
(12,667)
(12,667)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(12,667)
(12,667)

(12,667)
(12,667)


17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



350,000 (2023 - 350,000) Ordinary Shares shares of £1.00 each
350,000
350,000



18.


Pension commitments

The company operates a defined contribution 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 £76,120 (2023 - £64,405). Contributions totalling £nil (2023 - £2,942) were payable to the fund at the year end date and are included in creditors.

Page 21

 
SHIPS ELECTRONIC SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Commitments under operating leases

At 31 December 2024 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£

Land and Buildings


Not later than 1 year
92,766
62,787

Later than 1 year and not later than 5 years
118,571
94,312

Later than 5 years
5,440
27,200

216,777
184,299

2024
2023

£
£

Other


Not later than 1 year
63,379
81,740

Later than 1 year and not later than 5 years
73,736
92,608

137,115
174,348


20.


Controlling party

The immediate parent company is Wartsilla UK Limited, a company incorporated in England and Wales. Wartsila OYJ Abp, a company incorporated in Finland, is the ultimate parent undertaking.
 
Page 22