Company Registration No. SC615249 (Scotland)
UNITY WELL INTEGRITY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
UNITY WELL INTEGRITY LIMITED
COMPANY INFORMATION
Directors
G F Coutts
S Ferguson
M Illingworth
G Smart
D A Perras
N S McGuinness
A J Fettes
Secretary
Burness Paull LLP
Company number
SC615249
Registered office
2 Marischal Square
Broad Street
Aberdeen
AB10 1DQ
Auditor
Johnston Carmichael LLP
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
UNITY WELL INTEGRITY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the group financial statements
15 - 31
UNITY WELL INTEGRITY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Principal activities

The principal activity of Unity Well Integrity Limited ("the Company”) is as a holding company.

 

The principal activities of the Company and its two subsidiaries, Unity Well Integrity UK Limited and Unity Well Integrity Europe Ltd (together “Unity” or “the Group”), are as a leading provider of well integrity and decommissioning technology and services for the global upstream oil and gas industry. Unity is part of the Frontrow Energy Technology Group (“FETGL”).

 

Results, business review and key performance indicators

The directors consider turnover and EBITDA to be key performance indicators in their ability to monitor the company’s strategic and operational effectiveness. Group turnover totalled £17.5M (2023: £18.3M) and adjusted EBITDA £2.9M (2023: £2.9M) after adding back FETGL group management fees of £240k (2023: £240k).

 

On a macro level, 2024 was a year of relatively stable oil prices which remained between $65 and $90, averaging $81 per barrel, closely aligned to $82 average for 2023. Demand for oil weakened in line with a softening in global economic growth, however on supply side geopolitical tensions in Europe and the Middle East, shipping disruption in Red Sea and production cuts from OPEC+ countries maintained the relatively stable price.

 

The demand for our services remained high, with an increasing focus on decommissioning. We continued our investment in our proprietary products and have seen their utilisation and prospective customer base rise.

 

At 31 December 2024 the Group’s net liabilities position was £2.3M (2023: £3.0M). This is after long-term debt of £10.8M (2023: £11.1M).

 

In May 2024, the company increased its loan principal with Shawbrook Bank from £1.6M to £4.9M. The additional £3.3M of funds were used to repay all accrued shareholder loan interest to that point (£1.7M) and £1.5M of shareholder loan capital. As part of the transaction, the shareholder loan note repayment date was extended to June 2028 from October 2027.

 

Principal risks and uncertainties

Unity faces the economic risks associated with the oil sector, particularly the oil price and its impact on industry activity levels, as well as the Energy Price Levy affecting UK activity. Unity also faces increasing technology risk as we continue to develop several new products, many of which are innovative and untested in the market. Unity continually reviews the macro environment and its technology under development to ensure the business can react appropriately.

 

Future developments

2025 activity levels to date have overall been slightly below expectations, primarily due to operator delays in work scopes and budget pressures. However, we are encouraged by growing adoption of our proprietary technology in the UK and overseas, particularly from SIS and CSS technologies. Unity has invested in additional assets in 2025 to expand the availability of these proprietary products, with particular focus on entering new geographies which present significant growth opportunities. Unity has also expanded its service offering in 2025 to include Thru Tubing Services through creation of an experienced team, with service quality as paramount importance. The Thru Tubing is expected to be a growth opportunity in years to come for the group, which will also enhance the service offering for both wells and decommissioning.

UNITY WELL INTEGRITY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Going concern

The fragility of both the UK and wider global economy means significant focus is placed on the adoption of going concern concept for the preparation of the financial statements. The company, along with its subsidiaries, has prepared a detailed consolidated forecast for the remainder of 2025 and financial year 2026 including profit and loss account, cash flow and balance sheet projections to satisfy its going concern position. The company and its subsidiaries will continue to reforecast regularly throughout 2025 and beyond.

 

The forecasts give confidence to the Board that the company and its subsidiaries will be able to meet their liabilities as they fall due from its existing facilities.


The group’s net liability position and the company’s net current liability and net liability positions, at 31 December 2024, are caused by long-term debt and intragroup liabilities respectively. As such they can be appropriately managed and don’t negatively impact the going concern assessment.

 

As a result, the group and company financial statements, and those of the subsidiaries, have been prepared on a going concern basis.

 

Financial risk management objectives and policies

The group's activities expose it to a number of financial risks including foreign currency exposure and liquidity risk.

 

Foreign currency risk

Unity’s technology is being marketed around the world and the business operates a Danish branch. Unity transacts predominately in GBP or DKK for its Danish branch; however overseas sales are also often transacted in USD and occasionally EUR. Unity translates any material excess currency holdings back to GBP regularly and does not operate currency hedging. In management's view this is an appropriate risk mitigation strategy given the group's current activity.

 

Liquidity risk

Our main liquidity risk is from our customers and risk of overruns on technology development. Our team works hard to ensure that payments are received on time, and we closely manage the investment made in each new product, and regularly assess its viability and marketability.

On behalf of the board

G Smart
Director
30 June 2025
UNITY WELL INTEGRITY 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.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid (2023: nil). The directors do not recommend payment of a further dividend (2023: nil).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G F Coutts
S Ferguson
M Illingworth
G Smart
D A Perras
N S McGuinness
A J Fettes
(Appointed 10 February 2025)
Qualifying third party indemnity provisions

As permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force.

Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

UNITY WELL INTEGRITY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Existence of branches outside the UK

The group has a branch in Denmark.

Matters covered in the Group Strategic Report

The company has chosen, in accordance with section 414C(11) Companies Act 2006, to set out in the company's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors’ Report. Any matters required to be included in the directors' report by virtue of Schedule 7 of Sl 2008/410 which are considered by the directors to be of strategic importance are instead included in the strategic report. This includes future developments and financial risk management disclosures.

 

On behalf of the board
G Smart
Director
30 June 2025
UNITY WELL INTEGRITY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNITY WELL INTEGRITY LIMITED
- 5 -
Opinion

We have audited the financial statements of Unity Well Integrity Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

 

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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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.

UNITY WELL INTEGRITY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNITY WELL INTEGRITY LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

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

 

Responsibilities of directors

As explained more fully in the statement of directors' responsibilities on page 3, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

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

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

UNITY WELL INTEGRITY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNITY WELL INTEGRITY LIMITED
- 7 -

Extent 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 the group and the parent company and the sector in which they operate, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

 

We gained an understanding of how the group and the parent company are 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 group’s and the parent company's 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. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. 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:

 

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 are to become aware of it.

UNITY WELL INTEGRITY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNITY WELL INTEGRITY LIMITED
- 8 -

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 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.

Stephen McIlwaine (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
30 June 2025
Statutory Auditor
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
UNITY WELL INTEGRITY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
17,475,689
18,328,435
Cost of sales
(11,167,247)
(12,333,041)
Gross profit
6,308,442
5,995,394
Administrative expenses
(4,353,612)
(4,456,354)
Operating profit
4
1,954,830
1,539,040
Interest receivable and similar income
8
76,633
12,906
Interest payable and similar expenses
9
(1,212,140)
(1,139,480)
Profit before taxation
819,323
412,466
Tax on profit
10
(1,576)
(41,870)
Profit for the financial year
817,747
370,596
Other comprehensive expense
Currency translation differences
(65,738)
(62,337)
Total comprehensive income for the year
752,009
308,259
Profit and total comprehensive income for the financial year are all attributable to the owners of the parent company.

The group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

UNITY WELL INTEGRITY LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
485,581
602,696
Tangible assets
12
1,461,427
1,158,964
1,947,008
1,761,660
Current assets
Stocks
15
878,710
1,431,956
Debtors
16
3,917,781
4,569,269
Cash at bank and in hand
4,419,552
3,247,780
9,216,043
9,249,005
Creditors: amounts falling due within one year
17
(2,656,058)
(2,878,695)
Net current assets
6,559,985
6,370,310
Total assets less current liabilities
8,506,993
8,131,970
Creditors: amounts falling due after more than one year
18
(10,761,842)
(11,138,828)
Net liabilities
(2,254,849)
(3,006,858)
Capital and reserves
Called up share capital
22
98,400
98,400
Merger reserve
23
(1,567,679)
(1,567,679)
Foreign exchange reserve
23
(146,413)
(80,675)
Profit and loss reserves
23
(639,157)
(1,456,904)
Total deficit
(2,254,849)
(3,006,858)
The financial statements were approved by the board of directors and authorised for issue on 30 June 2025 and are signed on its behalf by:
G Smart
N S McGuinness
Director
Director
UNITY WELL INTEGRITY LIMITED
COMPANY BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
343,749
378,283
Investments
13
8,454,840
8,454,840
8,798,589
8,833,123
Current assets
Debtors
16
184,515
113,864
Cash at bank and in hand
2,814,762
1,342,019
2,999,277
1,455,883
Creditors: amounts falling due within one year
17
(7,440,775)
(4,264,122)
Net current liabilities
(4,441,498)
(2,808,239)
Total assets less current liabilities
4,357,091
6,024,884
Creditors: amounts falling due after more than one year
18
(10,761,842)
(11,138,828)
Net liabilities
(6,404,751)
(5,113,944)
Capital and reserves
Called up share capital
22
98,400
98,400
Profit and loss reserves
23
(6,503,151)
(5,212,344)
Total deficit
(6,404,751)
(5,113,944)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,290,807 (2023: £1,271,105 loss).

The financial statements were approved by the board of directors and authorised for issue on 30 June 2025 and are signed on its behalf by:
G Smart
N S McGuinness
Director
Director
Company Registration No. SC615249
UNITY WELL INTEGRITY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Merger reserve
Foreign exchange reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2023
98,400
(1,567,679)
(18,338)
(1,827,500)
(3,315,117)
Year ended 31 December 2023:
Profit for the year
-
-
-
370,596
370,596
Other comprehensive expense:
Currency translation differences
-
-
(62,337)
-
(62,337)
Total comprehensive income for the year
-
-
(62,337)
370,596
308,259
Balance at 31 December 2023
98,400
(1,567,679)
(80,675)
(1,456,904)
(3,006,858)
Year ended 31 December 2024:
Profit for the year
-
-
-
817,747
817,747
Other comprehensive expense:
Currency translation differences
-
-
(65,738)
-
(65,738)
Total comprehensive income for the year
-
-
(65,738)
817,747
752,009
Balance at 31 December 2024
98,400
(1,567,679)
(146,413)
(639,157)
(2,254,849)
UNITY WELL INTEGRITY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
98,400
(3,941,239)
(3,842,839)
Year ended 31 December 2023:
Loss and total comprehensive expense for the year
-
(1,271,105)
(1,271,105)
Balance at 31 December 2023
98,400
(5,212,344)
(5,113,944)
Year ended 31 December 2024:
Loss and total comprehensive expense for the year
-
(1,290,807)
(1,290,807)
Balance at 31 December 2024
98,400
(6,503,151)
(6,404,751)
UNITY WELL INTEGRITY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
3,237,035
1,699,034
Income taxes (paid)/refunded
(43,114)
47,259
Net cash inflow from operating activities
3,193,921
1,746,293
Investing activities
Purchase of intangible assets
(93,607)
(50,126)
Purchase of tangible fixed assets
(768,807)
(610,175)
Proceeds on disposal of tangible fixed assets
14,679
17,591
Interest received
76,633
12,906
Net cash used in investing activities
(771,102)
(629,804)
Financing activities
New bank facilities
3,203,817
-
Repayment of shareholder loans and accrued interest
(3,275,001)
-
Repayment of bank borrowings
(695,833)
(458,334)
Interest paid
(418,292)
(430,021)
Net cash used in financing activities
(1,185,309)
(888,355)
Net increase in cash and cash equivalents
1,237,510
228,134
Cash and cash equivalents at beginning of year
3,247,780
3,081,983
Effect of foreign exchange rates
(65,738)
(62,337)
Cash and cash equivalents at end of year
4,419,552
3,247,780
UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information

Unity Well Integrity Limited (“the company”) is a private company limited by shares incorporated in Scotland. The registered office is 2 Marischal Square, Broad Street, Aberdeen, AB10 1DQ. The principal place of business is Wellheads Crescent, Wellheads Industrial Estate, Dyce, Aberdeen, AB21 7GA. The group consists of Unity Well Integrity Limited and all of its subsidiaries. The principal activities of the group and the company and the nature of the operations are set out in the Strategic Report on page 1.

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, as this is the currency of the primary economic environment in which the company operates. The functional currency of the Danish branch is Danish Krone (DKK). Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Financial Reporting Standard 102 - reduced disclosure exemptions

The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102:

 

 

The parent company has also taken advantage of the exemptions available under FRS 102, Section 33, and not disclosed transactions with wholly owned members of the Unity Well Integrity Limited group of companies.

 

Where relevant for the purposes of the reduced disclosure exemptions, appropriate information is included within the consolidated financial statements of FrontRow Energy Technology Group Limited as at 31 December 2024 and these financial statements may be obtained from the UK Companies House website.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Unity Well Integrity Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Going concern

The fragility of both the UK and wider global economy means significant focus is placed on the adoption of going concern concept for the preparation of the financial statements. The company, along with its subsidiaries, has prepared a detailed consolidated forecast for remainder of 2025 and financial year 2026 including profit and loss account, cash flow and balance sheet projections to satisfy its going concern position. The company and its subsidiaries will continue to reforecast regularly throughout 2025 and beyond.

 

The forecasts give confidence to the Board that the company and its subsidiaries will be able to meet their liabilities as they fall due from its existing facilities.


The group’s net liability position and the company’s net current liability and net liability positions, at 31 December 2024, are caused by long-term debt and intragroup liabilities respectively. As such they can be appropriately managed and don’t negatively impact the going concern assessment.

 

As a result, the group and company financial statements, and those of the subsidiaries, have been prepared on a going concern basis.

1.4
Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group 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:

 

1.5
Research and development expenditure

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.

 

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

1.6
Intangible fixed assets - goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the consolidated statement of comprehensive income over its useful economic life, which the directors have estimated to be 5 years.

1.7
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.

UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:

Freehold property
15%
Leasehold property
over the term of the lease
Plant and machinery
2-8 years
Fixtures and fittings
2-5 years
IT
2-5 years
Motor vehicles
5 years

Assets in the course of construction are not depreciated.

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 the consolidated statement of comprehensive income.

1.8
Fixed asset investments

Investments in subsidiaries are measured at cost less accumulated impairment.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.10
Stocks

Stocks are stated at the lower of cost and net realisable value. Net realisable value is calculated as the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the consolidated statement of comprehensive income.

1.11
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.

UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.12
Financial instruments

The group 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 related parties and other third parties, loans to related parties and investments in ordinary shares.

 

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

 

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the consolidated statement of comprehensive income.

 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the balance sheet date.

 

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs.

1.14
Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the consolidated statement of comprehensive income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

 

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the group operate and generate income.

 

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

 

 

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.15
Retirement benefits

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

 

The contributions are recognised as an expense in the consolidated statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the group in independently administered funds.

1.16
Leases

Rentals paid under operating leases are charged to the consolidated statement of comprehensive income on a straight-line basis over the lease term.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

 

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in foreign exchange reserves.

1.18

Interest income

Interest income is recognised in the consolidated statement of comprehensive income using the effective interest method.

1.19

Finance costs

Finance costs are charged to the consolidated statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Research and development

Determining when a project moves from research to development requires significant judgement of the commercial opportunities and technical feasibility of the product under development. Management closely monitor project performance and commercial opportunities for impairment. Intangible assets from research and development in the group at the balance sheet date were £485,581 (2023: £602,696) and in the company at the balance sheet date was £343,749 (2023: £378,283).

The directors consider that there are no other judgements or estimates 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
Sale of goods
2,376,933
2,567,883
Rendering services
15,098,756
15,760,552
17,475,689
18,328,435

Turnover relates to the provision of well integrity technology and services (including decommissioning services) for the global upstream oil and gas industry.

 

Turnover analysed by geographical market has not been disclosed because in the opinion of the directors, to do so would be seriously prejudicial to the interests of the company.

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
16,170
(4,874)
Research and development costs
236
(4,631)
Depreciation of owned tangible fixed assets
466,344
461,026
Profit on disposal of tangible fixed assets
-
(16,417)
Amortisation of intangible assets
196,043
697,423
Operating lease charges
320,294
332,435
UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
13,400
12,500
Audit of the financial statements of the company's subsidiaries
38,600
37,025
52,000
49,525
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Technical and operational
90
94
-
-
Administration and sales
21
21
-
-
Directors
7
6
7
9
Total
118
121
7
9

Their aggregate remuneration comprised:

Group
2024
2023
£
£
Wages and salaries
6,997,686
6,868,316
Social security costs
696,585
661,266
Pension costs
527,751
422,458
8,222,022
7,952,040

The parent company had no employees other than the directors in the current and prior years.

7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
449,975
440,094
Company pension contributions to defined contribution schemes
34,175
26,406
484,150
466,500
UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Directors' remuneration
(Continued)
- 22 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
252,000
247,000
Company pension contributions to defined contribution schemes
16,653
14,820
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
76,633
12,906
9
Interest payable and similar expenses
2024
2023
£
£
Other interest
1,212,140
1,139,480
10
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(8,638)
332
Foreign current tax on profits for the current period
10,214
41,538
Total current tax
1,576
41,870
UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
- 23 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
819,323
412,466
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
204,831
96,930
Tax effect of expenses that are not deductible in determining taxable profit
3,534
2,650
Change in unrecognised deferred tax assets
(196,088)
(63,714)
Adjustments in respect of prior years
(8,638)
332
Effect of change in corporation tax rate on deferred tax
-
8,743
Other tax adjustments
(2,063)
(3,071)
Taxation charge
1,576
41,870
11
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 January 2024
2,790,844
1,071,749
3,862,593
Additions
-
0
93,607
93,607
Disposals
-
0
(92,083)
(92,083)
At 31 December 2024
2,790,844
1,073,273
3,864,117
Amortisation and impairment
At 1 January 2024
2,790,844
469,053
3,259,897
Amortisation charged for the year
-
0
196,043
196,043
Disposals
-
0
(77,404)
(77,404)
At 31 December 2024
2,790,844
587,692
3,378,536
Carrying amount
At 31 December 2024
-
0
485,581
485,581
At 31 December 2023
-
0
602,696
602,696
UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Intangible fixed assets
(Continued)
- 24 -
Company
Development costs
£
Cost
At 1 January 2024
606,674
Additions
86,626
Disposals
(77,181)
At 31 December 2024
616,119
Amortisation and impairment
At 1 January 2024
228,391
Amortisation charged for the year
108,947
Disposals
(64,968)
At 31 December 2024
272,370
Carrying amount
At 31 December 2024
343,749
At 31 December 2023
378,283

Amortisation on intangible assets is charged to administrative expenses.

UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
12
Tangible fixed assets
Group
Freehold property
Leasehold property
Assets under construction
Plant and machinery
Fixtures and fittings
IT
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 January 2024
19,350
201,664
-
0
3,170,890
84,172
451,851
73,893
4,001,820
Additions
-
0
48,877
277,707
406,767
17,727
22,759
-
0
773,837
Exchange adjustments
-
0
(193)
-
0
(24,721)
(1,362)
(1,981)
(406)
(28,663)
At 31 December 2024
19,350
250,348
277,707
3,552,936
100,537
472,629
73,487
4,746,994
Depreciation and impairment
At 1 January 2024
19,350
160,231
-
0
2,134,992
57,975
423,277
47,031
2,842,856
Depreciation charged in the year
-
0
17,450
-
0
399,761
11,075
20,465
17,593
466,344
Exchange adjustments
-
0
(193)
-
0
(20,129)
(1,223)
(1,826)
(262)
(23,633)
At 31 December 2024
19,350
177,488
-
0
2,514,624
67,827
441,916
64,362
3,285,567
Carrying amount
At 31 December 2024
-
0
72,860
277,707
1,038,312
32,710
30,713
9,125
1,461,427
At 31 December 2023
-
0
41,433
-
0
1,035,898
26,197
28,574
26,862
1,158,964
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
8,454,840
8,454,840
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
8,454,840
Carrying amount
At 31 December 2024
8,454,840
At 31 December 2023
8,454,840
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Unity Well Integrity UK Limited
2 Marischal Square, Broad Street, Aberdeen, United Kingdom AB10 1DQ
Provider of well integrity   technology and services
Ordinary
100.00
-
Unity Well Integrity Europe Limited
Bessemer Way, Great Yarmouth, Norfolk, NR31 0LX
Provider of well integrity   technology and services
Ordinary and Preference
0
100.00

Unity Well Integrity Europe Limited is 100% owned by Unity Well Integrity UK Limited.

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
149,383
680,804
-
-
Finished goods and goods for resale
729,327
751,152
-
0
-
0
878,710
1,431,956
-
-
UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,663,875
3,050,349
-
0
-
0
Amounts owed by group undertakings
237,081
135,948
-
25,933
Other debtors
200,191
97,019
184,515
87,931
Prepayments and accrued income
816,634
1,285,953
-
0
-
0
3,917,781
4,569,269
184,515
113,864

Amounts owed by group undertakings includes amounts owed by other companies in the FrontRow Energy Technology Group. All amounts are unsecured, interest free and repayable on demand.

17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
975,000
500,000
975,000
500,000
Trade creditors
500,807
919,645
3,985
35,598
Amounts owed to group undertakings
24,000
105,616
6,359,902
3,693,000
Corporation tax payable
-
0
41,538
-
0
-
0
Other taxation and social security
278,044
189,740
-
-
Other creditors
4,276
4,737
-
0
-
0
Accruals and deferred income
873,931
1,117,419
101,888
35,524
2,656,058
2,878,695
7,440,775
4,264,122

Amounts owed to group undertakings includes amounts owed to other companies in the FrontRow Energy Technology Group. All amounts are unsecured, interest free and repayable on demand.

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
3,437,500
1,333,333
3,437,500
1,333,333
Other borrowings
19
7,324,342
9,805,495
7,324,342
9,805,495
10,761,842
11,138,828
10,761,842
11,138,828
UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
4,412,500
1,833,333
4,412,500
1,833,333
Loans from related parties
7,324,342
9,805,495
7,324,342
9,805,495
11,736,842
11,638,828
11,736,842
11,638,828
Payable within one year
975,000
500,000
975,000
500,000
Payable after one year
10,761,842
11,138,828
10,761,842
11,138,828

In May 2024, the company increased its loan principal with Shawbrook Bank from £1.6m to £4.9m.

 

The bank loan, now comprising two facilities, is due for repayment by 30 May 2028. Facility A is payable by equal monthly instalments and Facility B has a bullet payment due on 30 May 2028. The bank loan attracts interest at 4.9% above SONIA per annum for facility A and 5.9% above SONIA per annum for facility B and is secured over the assets of the company.

 

The shareholder loan notes are due for repayment in June 2028 with first interest payments due in December 2025, however the company has the option to repay interest earlier where funds allow. The loan notes bear interest at 10% per annum and are unsecured.

 

Interest of £813,176 was accrued in 2024 (2023: £662,378) in relation to the shareholder loan notes. Following full payment of accumulated interest in May 2024, accrued interest on loans as at 31 December 2024 was £405,644 (2023: £1,320,051).

20
Deferred taxation
The company has no recognised deferred tax assets or liabilities.
There were no deferred tax movements in the year.

The parent company has a potential deferred tax asset of £393,000 (2023: £534,000) in respect of trading losses and short term timing differences measured at a rate of 25% (2023: 25%). The group has a potential deferred tax asset of £332,000 (2023: £319,000) in respect of trading losses and short term timing differences measured at a rate of 25% (2023: 25%). These have not been recognised as it is uncertain as to when the group and parent company will be in a tax paying position to justify their recognition.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
527,751
422,458

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions totalling £nil (2023: £30,300) were payable to the fund at the balance sheet date and are included in creditors.

UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
59,977
59,977
59,977
59,977
A Ordinary shares of £1 each
25,950
25,950
25,950
25,950
B Ordinary shares of £1 each
2,823
2,823
2,823
2,823
C Ordinary shares of £1 each
9,650
9,650
9,650
9,650
98,400
98,400
98,400
98,400

All share types rank pari passu with regards to return on capital, distribution and voting rights. The shares are allotted and fully paid.

23
Reserves
Profit and loss reserves

The profit and loss account includes all current and prior period retained profits and losses.

 

Merger reserve

This reserve represents the difference between the carrying value of the investments when acquired and the nominal value of the shares issued when the group was formed. The directors have considered it more appropriate to present this in a separate merger reserve.

 

Foreign exchange reserve

Comprises translation differences arising from the translation of financial statements of the group's foreign branch into Sterling (£) which forms part of the net investment in the foreign operation.

24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
2024
2023
£
£
Within one year
328,709
313,477
Between two and five years
1,303,489
1,171,871
In over five years
1,695,785
2,045,491
3,327,983
3,530,839

The majority of the operating lease commitments relate to long term property leases.

 

The company has no operating lease commitments.

UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
25
Related party transactions
Transaction
Balance at
Transaction
Balance at
value
year end
value
year end
2024
2024
2023
2023
£
£
£
£
Management fees payable to FrontRow Energy Technology Group Limited
240,000
(24,000)
240,914
-
Recharge of costs to Frontrow Energy Technology Group Limited
4,273
-
-
-
Accrued interest on loan from FrontRow Energy Technology Group Limited
498,395
(248,788)
559,569
(406,217)
Loans payable to FrontRow Energy Technology Group Limited
2,000,434
(4,243,335)
-
(5,595,695)
Accrued interest on loan from directors
16,612
(8,287)
19,769
(14,352)
Accrued interest on loans from other shareholders
298,172
(148,570)
333,039
(241,809)
Loan payable to directors
66,899
(141,341)
-
(197,695)
Loan payable to other shareholders
1,207,667
(2,534,022)
-
(3,330,386)
26
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
817,747
370,596
Adjustments for:
Taxation charged
1,576
41,870
Finance costs
1,212,140
1,139,480
Investment income
(76,633)
(12,906)
Gain on disposal of tangible fixed assets
-
(16,417)
Amortisation and impairment of intangible assets
196,043
697,423
Depreciation and impairment of tangible fixed assets
466,344
461,026
Movements in working capital:
Decrease/(increase) in stocks
553,246
(307,574)
Decrease/(increase) in debtors
722,671
(768,866)
(Decrease)/increase in creditors
(656,099)
94,402
Cash generated from operations
3,237,035
1,699,034
UNITY WELL INTEGRITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
27
Analysis of changes in net debt - group
1 January 2024
Cash flows
Other non-cash changes
Exchange rate movements
31 December 2024
£
£
£
£
£
Cash at bank and in hand
3,247,780
1,237,510
-
(65,738)
4,419,552
Borrowings
(11,638,828)
767,017
(865,031)
-
(11,736,842)
(8,391,048)
2,004,527
(865,031)
(65,738)
(7,317,290)
28
Controlling party

The immediate parent company is FrontRow Energy Technology Group Limited. The smallest and largest group in which the results of the company are consolidated is that headed by FrontRow Energy Technology Group Limited whose group financial statements can be obtained from the UK Companies House website.

 

In the opinion of the directors, there is no ultimate controlling party.

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