Company Registration No. SC479967 (Scotland)
THREE60 EPCC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
THREE60 EPCC LIMITED
COMPANY INFORMATION
Directors
Mr C J Bruce
Mr W Thain
Mr A J Smith
Mrs K R D Murray
(Appointed 16 July 2024)
Secretary
Brodies Secretarial Services Limited
Company number
SC479967
Registered office
c/o Brodies LLP
31-33 Union Grove
Aberdeen
AB10 6SD
Auditor
Johnston Carmichael LLP
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
THREE60 EPCC LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
THREE60 EPCC LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the Strategic Report and financial statements of Three60 EPCC Limited (“the Company”) for the year ended 31 December 2024.
Fair review of the business
The Company offers Engineering, Procurement, Construction and Commissioning to the Energy industry, focusing on safely delivering a more complete solution for owners, developers and operators of energy assets.
2024 was another strong year for the Company with Turnover of £48,258k (2023: £32,586k) representing a 48% growth over the previous financial period driven by increased work on existing contracts while continuing to grow market share. Following on from this, gross profit for the year increased to £6,817k (2023: £5,292k). A key performance indicator for the Company is EBITDA performance and for the period this was £2,477k (2023: £1,995k) as outlined below:
| Year ended 31 December 2024 £000’s | Year ended 31 December 2023 £000’s |
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Depreciation and amortisation | | |
Exceptional non-recurring costs | | |
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Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
In making their assessment, the directors have reviewed cashflow and trading forecasts for the next 12 months, which include consideration of the compliance with terms associated with the Company lending facilities.
Based on their assessment, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Principal risks and uncertainties
The Company delivered strong results in 2024, in addition 2025 performance to date is showing further growth and the directors are confident in the overall financial outlook for the Company.
The management of the business and the execution of the Company’s strategy are subject to a number of risks. The key business risks affecting the core activities of the Company are set out below. Risks are reviewed by the board and appropriate processes put in place to monitor and mitigate them.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Company monitors the timing of cash flows and align this with its strategic planning. Forecasts are produced to assist management in identifying liquidity requirements and maintaining adequate resources.
The Company’s primary sources of finance are the operating cash flows, bank finance and shareholder investment.
THREE60 EPCC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties (continued)
Credit risk
The Company’s principal financial assets are bank balances and cash and trade and other receivables. Its credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identifiable loss event which, based on previous experience, is evidence of a reduction in the recoverability of cash flows. The credit risk in liquid funds is limited because the counterparties are banks with credit ratings assigned by international credit rating agencies.
The Company has no significant concentration of credit risk, with exposure spread over a number of customers.
Oil and gas prices/market
Although the Company is establishing a wider footprint with a different energy mix, the Company’s principal customers are oil and gas operating companies and as a result the main price risk to the Company relates to the price of oil and gas. The Company considers that volatility in oil and gas prices is a regular part of its business. In addition, the Company is focused on diversifying activity into other energy sectors, and supporting the wider Energy Transition with lower carbon and sustainable energy solutions.
Future developments
The strategy of the directors is to offer and grow the Company's service lines and energy solutions in key geographic locations which will lead to an increase in overall market share.
Mrs K R D Murray
Director
18 July 2025
THREE60 EPCC LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of Engineering, Procurement, Construction and Commissioning services for the energy industry.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amount to £nil (2023 - £nil). The directors do not recommend payment of a further dividend. Subsequent to the year-end, the company declared a dividend of £984,000.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr K Sutherland
(Resigned 7 August 2024)
Mr C J Bruce
Mr S S Shoker
(Resigned 16 July 2024)
Mr W Thain
Mr A J Smith
Mr I S Macdonald
(Resigned 16 July 2024)
Mrs K R D Murray
(Appointed 16 July 2024)
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.
Auditor
The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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.
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
Mrs K R D Murray
Director
18 July 2025
THREE60 EPCC LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The directors are responsible for preparing the strategic report, 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 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 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; and
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.
THREE60 EPCC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THREE60 EPCC LIMITED
- 5 -
Opinion
We have audited the financial statements of Three60 EPCC Limited (‘the company’) for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 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.
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 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.
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 the 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.
THREE60 EPCC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THREE60 EPCC LIMITED
- 6 -
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 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.
The Directors were not entitled to prepare the financial statements in accordance with the small companies regime and 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 4, 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.
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.
THREE60 EPCC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THREE60 EPCC LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)
We obtained an understanding of the legal and regulatory frameworks that are applicable to company and the sector in which it operates, 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:
We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies and board meeting minutes.
We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:
In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:
Reviewing minutes of meetings of those charged with governance for reference to: breaches of laws and regulation or for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud;
Reviewing the level of and reasoning behind the company’s procurement of legal and professional services;
Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and assessing judgements made by management in their calculation of accounting estimates for potential management bias;
Performing audit procedures over the occurrence and cut-off of revenue by selecting a sample from the nominal ledger and agreeing back to sales invoice, ensuring it has been recorded in the correct financial year;
Completion of appropriate checklists and use of our experience to assess the company’s compliance with the Companies Act 2006; and
Agreement of the financial statement disclosures to supporting documentation.
Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
THREE60 EPCC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THREE60 EPCC LIMITED
- 8 -
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.
Jenny Junnier (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
18 July 2025
Statutory Auditor
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
THREE60 EPCC LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
48,258,376
32,586,300
Cost of sales
(41,440,462)
(27,294,721)
Gross profit
6,817,914
5,291,579
Administrative expenses
(4,451,359)
(3,370,696)
Other operating income
41,465
62,946
Operating profit
5
2,408,020
1,983,829
Interest receivable and similar income
8
5,387
Interest payable and similar expenses
9
(145,932)
(37,033)
Profit before taxation
2,262,088
1,952,183
Tax on profit
10
(592,472)
(430,167)
Profit and total comprehensive income for the financial year
1,669,616
1,522,016
The Statement of Comprehensive income has been prepared on the basis that all operations are continuing operations.
THREE60 EPCC LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
95,673
Tangible assets
12
237,882
247,141
333,555
247,141
Current assets
Debtors
13
14,527,864
10,636,916
Cash at bank and in hand
77,328
110,955
14,605,192
10,747,871
Creditors: amounts falling due within one year
14
(9,232,507)
(7,201,429)
Net current assets
5,372,685
3,546,442
Total assets less current liabilities
5,706,240
3,793,583
Provisions for liabilities
Provisions
15
221,474
Deferred tax liability
16
73,260
51,693
(294,734)
(51,693)
Net assets
5,411,506
3,741,890
Capital and reserves
Called up share capital
18
1,000
1,000
Share premium account
19
199,000
199,000
Profit and loss reserves
20
5,211,506
3,541,890
Total equity
5,411,506
3,741,890
The financial statements were approved by the board of directors and authorised for issue on 18 July 2025 and are signed on its behalf by:
Mrs K R D Murray
Director
Company Registration No. SC479967
THREE60 EPCC LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2023
1,000
199,000
2,019,874
2,219,874
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,522,016
1,522,016
Balance at 31 December 2023
1,000
199,000
3,541,890
3,741,890
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
1,669,616
1,669,616
Balance at 31 December 2024
1,000
199,000
5,211,506
5,411,506
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information
Three60 EPCC Limited is a private company limited by shares and incorporated and domiciled in Scotland. The registered office is 31-33 Union Grove, Aberdeen, AB10 6SD. The business address is Annan House, 33-35 Palmerston Road, Aberdeen, AB11 5QN.
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 pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 33 'Related Party Disclosures' Transactions entered into with any wholly-owned subsidiary of the group; and
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Three60 Energy Limited. These consolidated financial statements are available from its registered office, c/o Brodies LLP, 90 Bartholomew Close, London, EC1A 7EB.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.true
In making their assessment, the directors have reviewed cashflow and trading forecasts through to 31 December 2026, which include consideration of the compliance with terms associated with the Company lending facilities.
Based on their assessment, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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 other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue is recognised for services as they are provided.
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
33% straight line
1.5
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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10% Straight Line
Plant and equipment
20% Straight Line
Fixtures and fittings
20% Straight Line
Computers
33% Straight Line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company 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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
Classification of financial liabilities
Financial liabilities are classified according to the substance of the contractual arrangements entered into.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans 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.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any leases 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.
1.15
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 in the period are included in profit or loss.
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Recoverability of amounts owed by group undertakings
The recoverability of amounts owed by fellow group undertakings is a judgement exercised by management which has an effect on the company's balance sheet (see note 13). Management review the level of debt and assess recoverability on a regular basis.
The directors consider that there are no other judgements, estimates or underlying assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Provision of services
48,258,376
32,586,300
All turnover has been derived within the United Kingdom.
2024
2023
£
£
Other significant revenue
Interest income
-
5,387
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional costs included within administrative expenses
-
1,923
Exceptional costs relate to relocation expenditure incurred as a result of new office premises.
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
5
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Foreign exchange differences
3,657
3,292
Fees payable to the company's auditor for the audit of the company's financial statements
25,700
19,750
Depreciation of owned tangible fixed assets
78,426
71,855
Amortisation of intangible assets
31,872
-
Operating lease charges
557,548
561,066
6
Employees
The average monthly number of persons disclosed by category (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administrative
9
6
Sales and operational
63
48
Total
72
54
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,191,017
3,625,481
Social security costs
485,085
350,383
Pension costs
24,339
121,710
5,700,441
4,097,574
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
250,547
265,916
Company pension contributions to defined contribution schemes
11,502
10,563
262,049
276,479
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 2).
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
196,418
146,250
Company pension contributions to defined contribution schemes
24,338
8,438
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
5,387
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
145,932
36,434
Interest payable to group undertakings
599
145,932
37,033
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
551,274
397,272
Adjustments in respect of prior periods
17,790
(29,249)
Total UK current tax
569,064
368,023
Foreign current tax on profits for the current period
1,841
Total current tax
570,905
368,023
Deferred tax
Origination and reversal of timing differences
21,096
63,344
Adjustment in respect of prior periods
471
(1,200)
Total deferred tax
21,567
62,144
Total tax charge
592,472
430,167
2024
2023
£
£
Profit before taxation
2,262,088
1,952,183
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
565,522
459,153
Tax effect of expenses that are not deductible in determining taxable profit
8,819
4,660
Adjustments in respect of prior years
17,790
(29,249)
Group relief
(2,758)
Deferred tax adjustments in respect of prior years
471
(1,200)
Deferred tax not recognised
787
(411)
Remeasurement of deferred tax for changes in tax rates
3,748
R&D expenditure credits
(6,534)
Withholding taxes suffered
1,841
Taxation charge for the year
592,472
430,167
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
11
Intangible fixed assets
Software
£
Cost
At 1 January 2024
Additions
127,545
At 31 December 2024
127,545
Amortisation and impairment
At 1 January 2024
Amortisation charged for the year
31,872
At 31 December 2024
31,872
Carrying amount
At 31 December 2024
95,673
At 31 December 2023
12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2024
65,008
38,656
6,040
460,655
570,359
Additions
3,389
65,778
69,167
At 31 December 2024
68,397
38,656
6,040
526,433
639,526
Depreciation and impairment
At 1 January 2024
2,945
18,792
4,383
297,098
323,218
Depreciation charged in the year
6,557
6,143
652
65,074
78,426
At 31 December 2024
9,502
24,935
5,035
362,172
401,644
Carrying amount
At 31 December 2024
58,895
13,721
1,005
164,261
237,882
At 31 December 2023
62,063
19,864
1,657
163,557
247,141
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
9,980,710
7,655,963
Amounts owed by group undertakings
409,376
843,047
Other debtors
52,857
74,294
Prepayments and accrued income
4,084,921
2,063,612
14,527,864
10,636,916
Amounts owed from group undertakings are unsecured, interest free and receivable on demand.
14
Creditors: amounts falling due within one year
2024
2023
£
£
Bank overdrafts
2,939,490
843,567
Trade creditors
2,775,965
3,229,013
Amounts owed to group undertakings
393,721
636,684
Corporation tax
506,588
272,855
Other taxation and social security
572,550
460,693
Deferred income
74,760
Other creditors
207,002
202,447
Accruals
1,837,191
1,481,410
9,232,507
7,201,429
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
Bank facilities are secured by a charge over the debtor book and a floating charge over the assets and undertakings of the company.
15
Provisions for liabilities
2024
2023
£
£
221,474
-
Movements on provisions:
£
Additional provisions in the year
221,474
A provision has been recognised in respect of certain contractual obligations where management considers it probable that an outflow of economic benefits will be required to settle the obligation. The amount provided is based on management’s best estimate of the expenditure required to settle the present obligation at the reporting date.
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities/
Liabilities/
(assets)
(assets)
2024
2023
Balances:
£
£
Accelerated capital allowances
76,977
54,963
Short term timing differences
(3,717)
(3,270)
73,260
51,693
2024
Movements in the year:
£
Liability at 1 January 2024
51,693
Charge to profit or loss
21,567
Liability at 31 December 2024
73,260
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
24,339
121,710
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
The company has one class of ordinary shares which carry no right to fixed income and have no voting rights.
19
Share premium account
The share premium account represents the amount received for shares issued by the company in excess of their nominal values.
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
20
Profit and loss reserves
Profit and loss reserves represent the accumulated profits and losses of the company, less distributions made to the shareholders.
21
Financial commitments, guarantees and contingent liabilities
The company is subject to a cross guarantee provided in respect of certain group-wide banking facilities. These facilities are secured by fixed and floating charges over the assets and undertakings of the company and all other group-wide facility participants.
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
409,121
409,121
Between two and five years
784,149
1,193,270
1,193,270
1,602,391
23
Events after the reporting date
Subsequent to the year-end, the company declared a dividend of £984,000.
24
Related party transactions
The company entered in to the following related party transactions during the current year:
The company made sales of £3,592,128 (2023: £802,532) to entities under common control. Amounts due at the year end totalled £663,208 (2023: £648,873).
The company made purchases of £303,961 (2023: £3,671,332) from entities under common control. Amounts owed at the year end totalled £809,540 (2023: £524,779).
The company was charged management fees of £675,604 (2023: £464,839) and made sales of £94,747 (2023: £43,920) to the ultimate parent company during the year. There is £68,294 (2023: £63,095) due to the ultimate parent entity at the year end.
THREE60 EPCC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
25
Ultimate controlling party
The immediate parent company of the entity is Three60 EPCC Holdings Limited.
The ultimate parent company is Three60 Energy Limited, a company which prepares consolidated financial statements, is registered in England and Wales.
The ultimate controlling party of Three60 Energy Limited is considered to be Simmons Private Equity II LP, a Limited Partnership incorporated in Guernsey, by virtue of its ownership of the share capital.
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