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REGISTERED NUMBER: 04089690 (England and Wales)



















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST OCTOBER 2024

FOR

TERRA FIRMA PIPELINE LIMITED

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


TERRA FIRMA PIPELINE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST OCTOBER 2024







DIRECTORS: Mr L Wells
Mr I J Wells





SECRETARY: Ms L Warren





REGISTERED OFFICE: CS110
Codham Hall (South)
Great Warley
Brentwood
Essex
CM13 3JJ





REGISTERED NUMBER: 04089690 (England and Wales)





AUDITORS: ESW Limited
Chartered Accountants
& Registered Auditors
162-164 High Street
Rayleigh
Essex
SS6 7BS

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST OCTOBER 2024

The directors present their strategic report for the year ended 31st October 2024.

REVIEW OF BUSINESS
I am pleased to deliver the financial results for the year ended 31st October 2024.

The company delivered turnover of approximately £35 million and a gross profit of circa £4.5 million (12.9% margin). The 5.3% fall in gross margin levels (in absolute terms) is disappointing given management had targeted a higher margin. The key cost categories that contributed to the lower gross margin continued to be sub-contractors and plant hire (notably Vacuum Excavations). The focus on growing the order book has resulted in a disproportionate increase in cost of sales.

The board was in the process of reviewing its plan to address this when certain unforeseen events resulted in the Company's residential gas main replacement contracts ceasing. Management were then required to focus on realigning the business to its water, commercial gas and complex works customer contracts.

Administrative expenses increased 17% year on year but given the 33% increase in turnover this was to be expected. In the current financial year the business is expected to report significantly lower levels of turnover following the changes in the sector/customer mix away from residential gas main replacement to water, and commercial gas and complex works and are targeting a higher gross margin from this reduced turnover base.

We continue to focus on cost savings throughout the company to seek to improve our gross margin and increase operating profitability. The Company's recycling centre was closed following the changes in sales mix/customers as there was insufficient material being generated outside of the residential gas mains replacement work to warrant running a recycling centre. In addition, the Company also reviewed the number of operating sites it was operating from and decided to consolidate those into two sites. This resulted in the Company's Beckton head office site being sold as it was deemed to be surplus to the Company's requirements (see post Balance Sheet Event note) and the Company entering into a new lease agreement for an operating centre in Brentwood, Essex.

Cost control and growing turnover remain the key focal points for management.

The Key Performance Indicators are considered to be:

Sales £35m (2023 - £26.3m) - up 33%
Gross profit £4.4m (2023 - £4.8m) - down 8%
Gross margin 12.6% (2023 - 18.2%) - down 30%
Operating loss £0.16m (2023 - profit £1.05m) - down 115%

INVESTMENT AND FUTURE DEVELOPMENTS
The investment in plant and machinery in 2023/24 was approximately £1.1m (£1.2m in 2023). Capital investment is expected to decrease in 2024/25 as the business downsizes its fleet to match the current work streams.

The value of the company's fixed asset base excluding property at the end of the 2023/24 financial year was £4 million. The company's bankers and shareholders remain supportive of the company's working capital needs.


TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST OCTOBER 2024

CUSTOMERS
The pipeline for the beginning of 2023/24 financial year was very robust and that is reflected in the turnover growth. The residential gas mains replacement operations ceased around the end of October 2024 and the change in the Company's sales pipeline for 2024/25 has reflected the new sales mix. It is difficult to predict the outturn for the current financial year as we have incurred a significant level of costs relating to the residential gas operations ceasing however it is highly likely that we will show a loss in 2024/25 results.

The Company is now focused on servicing a discreet number of clients in the water, commercial gas and complex works space and those clients are all considered to be blue chip in nature.

ON BEHALF OF THE BOARD:





Mr I J Wells - Director


23rd July 2025

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST OCTOBER 2024

The directors present their report with the financial statements of the company for the year ended 31st October 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of utility contractors.

DIVIDENDS
The total distribution of dividends for the year ended 31st October 2024 will be £ 60,000 .

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st November 2023 to the date of this report.

Mr L Wells
Mr I J Wells

FINANCIAL INSTRUMENTS
The company's operations expose it to a variety of financial risks that include the effect of changes in liquidity risk and interest rate risk.The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.

Liquidity risk
The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure it has sufficient available funds for operations and planned extensions.

Interest rate cash flow risk
The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include only cash balances held on deposit.

Credit risk
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board.

Price risk
The company's exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.


TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST OCTOBER 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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 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 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, ESW Limited, will be proposed for appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr I J Wells - Director


23rd July 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TERRA FIRMA PIPELINE LIMITED

Opinion
We have audited the financial statements of Terra Firma Pipeline Limited (the 'company') for the year ended 31st October 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31st October 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Emphasis of matter
We draw attention to Note 2 to the financial statements, which describes the directors’ assessment of the company’s ability to continue as a going concern. The company incurred a loss during the year and is dependent on continued financial support from its shareholders and bank facilities. As stated in Note 2, the directors have received confirmation of ongoing support and have concluded that the going concern basis of preparation is appropriate. Our opinion is not modified in respect of this matter.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TERRA FIRMA PIPELINE LIMITED


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have 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 Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TERRA FIRMA PIPELINE LIMITED


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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The company is subject to numerous laws and regulations that could reasonably be expected to have a material effect on the financial statements. From our general commercial experience and discussion with management, we identified the following laws and regulations; health and safety, employment law and taxes, financial reporting and distributable profits.

Our audit procedures to address potential fraud and non-compliance with laws and regulations included:

- Enquiry of management and staff
- Review of legal documentation and correspondence
- Analytical review to identify unexpected account movements and investigation of variances
- Assessment of potential management override by review of journals and unusual accounting entries
- Identification and review of transactions with related parties
- Review of year end cut-off and after date 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 Report of the Auditors.

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 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 a Report of the Auditors 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.




Stephen Cracknell (Senior Statutory Auditor)
for and on behalf of ESW Limited
Chartered Accountants
& Registered Auditors
162-164 High Street
Rayleigh
Essex
SS6 7BS

23rd July 2025

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

INCOME STATEMENT
FOR THE YEAR ENDED 31ST OCTOBER 2024

2024 2023
Notes £    £   

TURNOVER 3 34,919,086 26,340,722

Cost of sales (30,516,296 ) (21,545,122 )
GROSS PROFIT 4,402,790 4,795,600

Administrative expenses (4,638,777 ) (3,970,710 )
(235,987 ) 824,890

Other operating income 72,464 221,350
OPERATING (LOSS)/PROFIT 5 (163,523 ) 1,046,240

Interest receivable and similar income 1,554 3,437
(161,969 ) 1,049,677

Interest payable and similar expenses 6 (297,174 ) (250,898 )
(LOSS)/PROFIT BEFORE TAXATION (459,143 ) 798,779

Tax on (loss)/profit 7 567,961 (116,553 )
PROFIT FOR THE FINANCIAL YEAR 108,818 682,226

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST OCTOBER 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 108,818 682,226


OTHER COMPREHENSIVE INCOME
Property revaluation reserve movement (9,560 ) (9,560 )
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

(9,560

)

(9,560

)
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

99,258

672,666

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

BALANCE SHEET
31ST OCTOBER 2024

2024 2023
Notes £    £   
FIXED ASSETS
Tangible assets 9 7,992,015 7,818,929

CURRENT ASSETS
Debtors 10 4,559,465 4,753,398
Cash at bank 876,720 98,663
5,436,185 4,852,061
CREDITORS
Amounts falling due within one year 11 (4,254,102 ) (3,271,066 )
NET CURRENT ASSETS 1,182,083 1,580,995
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,174,098

9,399,924

CREDITORS
Amounts falling due after more than one
year

12

(2,578,647

)

(2,741,187

)

PROVISIONS FOR LIABILITIES 16 (914,001 ) (1,016,545 )
NET ASSETS 5,681,450 5,642,192

CAPITAL AND RESERVES
Called up share capital 17 99 99
Revaluation reserve 18 369,460 379,020
Capital redemption reserve 18 99 99
Retained earnings 18 5,311,792 5,262,974
SHAREHOLDERS' FUNDS 5,681,450 5,642,192

The financial statements were approved by the Board of Directors and authorised for issue on 23rd July 2025 and were signed on its behalf by:





Mr I J Wells - Director


TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST OCTOBER 2024

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1st November 2022 99 4,680,748 388,580 99 5,069,526

Changes in equity
Dividends - (100,000 ) - - (100,000 )
Total comprehensive income - 682,226 (9,560 ) - 672,666
Balance at 31st October 2023 99 5,262,974 379,020 99 5,642,192

Changes in equity
Dividends - (60,000 ) - - (60,000 )
Total comprehensive income - 108,818 (9,560 ) - 99,258
Balance at 31st October 2024 99 5,311,792 369,460 99 5,681,450

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST OCTOBER 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,048,347 85,145
Interest paid (179,442 ) (163,183 )
Interest element of hire purchase payments
paid

(117,732

)

(81,659

)
Finance costs paid - (6,056 )
Taxation refund 268,815 125,446
Net cash from operating activities 2,019,988 (40,307 )

Cash flows from investing activities
Purchase of tangible fixed assets (22,387 ) (189,360 )
Sale of tangible fixed assets 203,734 15,250
Interest received 1,554 3,437
Net cash from investing activities 182,901 (170,673 )

Cash flows from financing activities
New loans in year - 350,000
Loan repayments in year (341,342 ) (458,937 )
Hire purchase repayments in year (1,012,631 ) (882,144 )
Amount withdrawn by directors (10,859 ) 12,468
Equity dividends paid (60,000 ) (100,000 )
Net cash from financing activities (1,424,832 ) (1,078,613 )

Increase/(decrease) in cash and cash equivalents 778,057 (1,289,593 )
Cash and cash equivalents at beginning of
year

2

98,663

1,388,256

Cash and cash equivalents at end of year 2 876,720 98,663

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST OCTOBER 2024

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
(Loss)/profit before taxation (459,143 ) 798,779
Depreciation charges 537,559 509,658
Loss on disposal of fixed assets 178,199 101,220
Finance costs 297,174 250,898
Finance income (1,554 ) (3,437 )
552,235 1,657,118
Decrease/(increase) in trade and other debtors 267,108 (2,210,177 )
Increase in trade and other creditors 1,229,004 638,204
Cash generated from operations 2,048,347 85,145

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st October 2024
31.10.24 1.11.23
£    £   
Cash and cash equivalents 876,720 98,663
Year ended 31st October 2023
31.10.23 1.11.22
£    £   
Cash and cash equivalents 98,663 1,388,256


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.11.23 Cash flow At 31.10.24
£    £    £   
Net cash
Cash at bank and in hand 98,663 778,057 876,720
98,663 778,057 876,720
Debt
Finance leases (1,388,104 ) (294,543 ) (1,682,647 )
Debts falling due within 1 year (287,517 ) (46,908 ) (334,425 )
Debts falling due after 1 year (1,911,644 ) 388,249 (1,523,395 )
(3,587,265 ) 46,798 (3,540,467 )
Total (3,488,602 ) 824,855 (2,663,747 )

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

1. STATUTORY INFORMATION

Terra Firma Pipeline Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements have been prepared on a going concern basis. The company incurred a loss of £459,000 for the year ended 31st October 2024 and is forecasting a further loss in the current financial year. These losses primarily reflect the company's ongoing strategic realignment of its operations, transitioning away from residential gas-related activities toward water infrastructure services and commercial gas-related activities as detailed in the strategic report.

The company is reliant on the continued financial support of its principal shareholder and existing banking facilities. The shareholder has confirmed their intention to provide financial support for the foreseeable future, and the company continues to have access to its existing bank facilities.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services
provided in the normal course of business and is shown net of VAT and discounts.

Rendering of services:
Turnover from rendering of 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:
1. the amount of turnover can be measured reliably;
2. it is probable that the Company will receive the consideration due under the contract;
3. the stage of completion of the contract at the end of the reporting period can be measured reliably; and
4. the costs incurred and the costs to complete the contract can be measured reliably.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Improvements to property - 20% on reducing balance
Plant and machinery - 10% on reducing balance
Motor vehicles - 10% on reducing balance
Computer equipment - 33% on reducing balance

Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12
'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the
instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include trade and other 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.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of
impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit and loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated party.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including trade and other creditors and bank loans, 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.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire.

Equity instruments
Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.


TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Rendering of services 34,919,086 26,340,722
34,919,086 26,340,722

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 34,919,086 26,340,722
34,919,086 26,340,722

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,484,607 2,255,660
Social security costs 255,337 240,511
Other pension costs 65,551 47,442
2,805,495 2,543,613

The average number of employees during the year was as follows:
2024 2023

Employees 47 50
Directors 2 2
49 52

2024 2023
£    £   
Directors' remuneration 73,162 70,950

5. OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging:

2024 2023
£    £   
Hire of plant, machinery and
vehicles 4,794,075 3,149,823
Depreciation - owned assets 197,656 253,605
Depreciation - assets on hire purchase contracts 349,466 265,612
Loss on disposal of fixed assets 178,199 101,220
Auditors' remuneration 30,000 20,000
Auditors' remuneration for non audit work - 16,000

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest 179,442 163,183
Hire purchase 117,732 81,659
Corporation tax interest - 6,056
297,174 250,898

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024

7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax - 60,706
Over provision prior year (465,417 ) (153,569 )
Total current tax (465,417 ) (92,863 )

Deferred tax (102,544 ) 209,416
Tax on (loss)/profit (567,961 ) 116,553

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
(Loss)/profit before tax (459,143 ) 798,779
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
19% (2023 - 25%)

(87,237

)

199,695

Effects of:
Expenses not deductible for tax purposes 40,300 16,892
Capital allowances in excess of depreciation (109,827 ) (149,189 )
Tax losses carried forward 156,764 -
Deferred tax movement (102,544 ) 209,416
Overprovided tax in previous year (465,417 ) (153,569 )
Change in tax rate - (6,692 )
Total tax (credit)/charge (567,961 ) 116,553

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£    £    £   
Property revaluation reserve movement (9,560 ) - (9,560 )

2023
Gross Tax Net
£    £    £   
Property revaluation reserve movement (9,560 ) - (9,560 )

8. DIVIDENDS
2024 2023
£    £   
Interim 60,000 100,000

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024

9. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST OR VALUATION
At 1st November 2023 4,446,099 36,020 3,815,752
Additions - - 1,024,075
Disposals - - (940,534 )
At 31st October 2024 4,446,099 36,020 3,899,293
DEPRECIATION
At 1st November 2023 436,730 12,874 1,473,456
Charge for year 88,922 4,630 305,035
Eliminated on disposal - - (624,505 )
At 31st October 2024 525,652 17,504 1,153,986
NET BOOK VALUE
At 31st October 2024 3,920,447 18,516 2,745,307
At 31st October 2023 4,009,369 23,146 2,342,296

Motor Computer
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1st November 2023 1,925,046 21,416 10,244,333
Additions 99,779 2,687 1,126,541
Disposals (130,457 ) - (1,070,991 )
At 31st October 2024 1,894,368 24,103 10,299,883
DEPRECIATION
At 1st November 2023 490,881 11,463 2,425,404
Charge for year 144,364 4,171 547,122
Eliminated on disposal (40,153 ) - (664,658 )
At 31st October 2024 595,092 15,634 2,307,868
NET BOOK VALUE
At 31st October 2024 1,299,276 8,469 7,992,015
At 31st October 2023 1,434,165 9,953 7,818,929

The freehold property at 5 Eastbury Road, Beckton was valued on an open market basis in January 2022 by RES Property Surveyors, a chartered surveyor, at approximately £1.7 million. The company's other freehold property is valued at cost, which the directors believe is a fair representation of the current market value.

As detailed in Note 20, both properties were sold following the year end.

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST OR VALUATION
At 1st November 2023 1,945,900 1,214,636 3,160,536
Additions 1,011,075 93,079 1,104,154
At 31st October 2024 2,956,975 1,307,715 4,264,690
DEPRECIATION
At 1st November 2023 490,255 279,774 770,029
Charge for year 246,672 102,794 349,466
At 31st October 2024 736,927 382,568 1,119,495
NET BOOK VALUE
At 31st October 2024 2,220,048 925,147 3,145,195
At 31st October 2023 1,455,645 934,862 2,390,507

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 635,552 257,702
Other debtors 1,089,119 1,011,903
Tax - 121,571
Prepayments and accrued income 2,834,794 3,362,222
4,559,465 4,753,398

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 334,425 287,517
Hire purchase contracts (see note 14) 627,395 558,561
Trade creditors 1,986,405 1,096,359
Tax - 350,851
Social security and other taxes 156,062 181,149
VAT 158,294 178,733
Other creditors 29,061 36,577
Directors' current accounts 2,460 13,319
Accruals and deferred income 960,000 568,000
4,254,102 3,271,066

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 13) 1,523,395 1,911,644
Hire purchase contracts (see note 14) 1,055,252 829,543
2,578,647 2,741,187

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 334,425 287,517

Amounts falling due between two and five years:
Bank loans - 2-5 years 691,733 723,490

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more than 5 years
by instalments 831,662 1,188,154
831,662 1,188,154

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Gross obligations repayable:
Within one year 740,562 642,566
Between one and five years 1,270,600 975,496
2,011,162 1,618,062

Finance charges repayable:
Within one year 113,167 84,005
Between one and five years 215,348 145,953
328,515 229,958

Net obligations repayable:
Within one year 627,395 558,561
Between one and five years 1,055,252 829,543
1,682,647 1,388,104

Non-cancellable operating leases
2024 2023
£    £   
Within one year 91,467 104,466
Between one and five years 158,565 259,162
250,032 363,628

15. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 1,857,820 2,199,161
Hire purchase contracts 1,682,647 1,388,104
3,540,467 3,587,265

Assets acquired under hire purchase are secured by those agreements.

The bank loans are secured by registered charges over the company's freehold properties. Lloyds bank also hold a fixed and floating charge over the assets of the company.

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 801,183 903,727
Other timing differences 112,818 112,818
914,001 1,016,545

Deferred
tax
£   
Balance at 1st November 2023 1,016,545
Accelerated capital allowances (102,544 )
Property revaluation
Balance at 31st October 2024 914,001

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
99 Ordinary shares £1 99 99

18. RESERVES
Capital
Retained Revaluation redemption
earnings reserve reserve Totals
£    £    £    £   

At 1st November 2023 5,262,974 379,020 99 5,642,093
Profit for the year 108,818 108,818
Dividends (60,000 ) (60,000 )
Depreciation movement - (9,560 ) - (9,560 )
At 31st October 2024 5,311,792 369,460 99 5,681,351

19. RELATED PARTY DISCLOSURES

The balance sheet includes balances with companies which have common directors and shareholders in Terra Firma Pipeline Limited;

2024 2023


AW Rentals Limited Other debtors 155,000 155,000
AW Rentals Limited Trade debtors - 42,000
AW Rentals Limited Trade creditors (137,057 ) (57,757 )
Terra Firma Housing Ltd Other debtors 10,000 10,000
Goliath Mouldings Ltd Other debtors 281,519 264,519
Bucks Training Academy Ltd Other debtors 51,378 51,378
Terra Firma Rail Ltd Other debtors 288,597 498,506
Terra Firma Rail Ltd Trade debtors 37,440 24,480

TERRA FIRMA PIPELINE LIMITED (REGISTERED NUMBER: 04089690)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2024

20. POST BALANCE SHEET EVENTS

In October 2024 following an incident on one of our residential gas mains replacement contracts the Company's residential gas operations ceased. This resulted in certain closure costs for redundancies and other associated costs being incurred. Following these operational changes the Company entered into negotiations to sell its principal operating facility and head office. A sale was agreed in Q1 of 2025. In addition, the Company's investment property in Buckinghamshire was acquired, on an arms length basis, by a company owned and controlled by the Company's principal shareholder.

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr L Wells.