ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 02136427

CENTRE TANK SERVICES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

CENTRE TANK SERVICES LIMITED

COMPANY INFORMATION

Directors	R J Terry
	M S Terry
	G J Morrell
	C P Coutts-Trotter


Registered number	02136427


Registered office	Office 2.3 Design Hub
	Coventry University Technology Park
	Puma Way
	Coventry
	England
	CV1 2TT


Independent auditor	James Cowper Kreston Audit
	Chartered Accountants and Statutory Auditor
	201 Cumnor Hill
	Cumnor
	Oxford
	Oxfordshire
	OX2 9PJ

CENTRE TANK SERVICES LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditor's Report	5 - 8
Statement of Comprehensive Income	9
Balance Sheet	10 - 11
Statement of Changes in Equity	12
Notes to the Financial Statements	13 - 33

CENTRE TANK SERVICES LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The Directors present their Strategic Report for the year ended 31 December 2024.
Review of business
We are pleased with the revenue position and overall performance particularly considering the continued unpredictability of the market during the year. The decline in revenue is attributable to market legislative factors however the Directors are pleased with the business’ resilience. This has a direct impact on overall operating profit.

The Company continues to focus business development to better take advantage of market opportunities in the medium term. The current cash position will enable the Company to take advantage of any short-term market opportunities which may arise and to protect the business from further unpredicted economic shocks.

Principal risks and uncertainties

The Company distinguishes between market related risks, operational risks, customer credit risks, liquidity risks and legal and regulatory risks. The Directors regularly review and update these identified risks. The most significant risks affecting the Company’s operations are described below.
Market related risks
The Company provides their services primarily to the fluid handling equipment market in the UK and Europe and are reliant on a substantial number of suppliers, many of which are based overseas. In addition, there is the risk of lower cost manufacturers entering the Company’s and Group’s markets and a risk of increased inventory lead times due to the conflict in the Red sea.
The Directors regularly review the Company’s product portfolio seeking to identify other markets and other suppliers for existing products, and to identify markets for new products, in order to mitigate the effect of any market related risks on the results of the Company.
Operational risks
The Company is reliant on the knowledge and technical expertise of their key management and staff. Operational risk is mitigated by maintaining key management and staff expertise through on-going training and development programmes.The company is certified under ISO 9001 (2015).
Customer credit risks
The Company is exposed to risk in respect of trade receivables in their markets. Customers are subject to credit checks and the outcome provides the basis for credit and payment terms for each customer. In addition, credit insurance is arranged where appropriate.
Liquidity risks
Uncertainties in the general economic environment can create liquidity risks for the Company. Liquidity risk is managed through close monitoring and control of cash flows to ensure adequate funding for the Company’s day to day operations.
Legal and regulatory risks
From time to time, the Company is involved in disputes in the normal course of business and typically these are resolved promptly and do not involve significant amounts. The risk of product failure or obsolescence is mitigated to some extent by insurance cover and ongoing investment in research and development by the Company.

Page 1

CENTRE TANK SERVICES LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Financial key performance indicators

The performance of the Company in the year ended 31 December 2024 is summarised below.
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Company, these being revenue from contracts with customers, operating profit, profit before tax and total equity.
Revenue from contracts with customers for the year ended 31 December 2024 is £7,208,724 (2023: £7,779,777), a decrease of 7.3% (2023: decrease of 15.4%), operating profit after exceptional items for the year ended 31 December 2024 is £1,142,904 (2023: £1,419,241), a decrease of 19.5% (2023: decrease of 40,0%) and profit after exceptional items for the year ended 31 December 2024 is £1,214,000 (2023: £1,481,590), a decrease of 18.1% (2023: decrease of 39.3%). Total equity and reserves at 31 December 2024 was £3,051,479 (2023: £3,317,515).

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

M S Terry

Director

Date: 1 July 2025

Page 2

CENTRE TANK SERVICES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The Directors present their report and the financial statements for the year ended 31 December 2024.

Directors

The Directors who served during the year were:

R J Terry

M S Terry

G J Morrell

C P Coutts-Trotter

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

∙select suitable accounting policies and then apply them consistently;

∙make judgements and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,296,646 (2023: £1,481,590).

During the year ended 31 December 2024, the Company paid £1,480,036 (2023: £1,562,200) in dividends.

Research and development activities

The Company does not conduct material research and development activities.

Matters covered in the Strategic Report

Certain matters are disclosed in the Strategic Report that would otherwise be disclosed in the Directors' Report.

Page 3

CENTRE TANK SERVICES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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

M S Terry

Director

Date: 1 July 2025

Page 4

CENTRE TANK SERVICES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CENTRE TANK SERVICES LIMITED

Opinion

We have audited the financial statements of Centre Tank Services Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

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.

Page 5

CENTRE TANK SERVICES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CENTRE TANK SERVICES LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the 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.

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.

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 6

CENTRE TANK SERVICES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CENTRE TANK SERVICES LIMITED (CONTINUED)

Auditor's 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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

∙Enquiry of management and those charged with governance around actual and potential litigation and claims;

∙Reviewing minutes of meetings of those charged with governance;

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

∙Performing audit work 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 reviewing accounting estimates for bias.

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

Page 7

CENTRE TANK SERVICES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CENTRE TANK SERVICES LIMITED (CONTINUED)

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.

James Pitt BA BFP FCA (Senior Statutory Auditor)

for and on behalf of

James Cowper Kreston Audit

Chartered Accountants and Statutory Auditor

201 Cumnor Hill

Cumnor

Oxford

Oxfordshire

OX2 9PJ

2 July 2025

Page 8

CENTRE TANK SERVICES LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	4	7,208,724	7,779,777
Cost of sales		(4,500,939)	(4,781,710)
Gross profit		2,707,785	2,998,067
Administrative expenses		(1,237,881)	(1,317,826)
Impairment charge	12	(327,000)	(261,000)
Operating profit	5	1,142,904	1,419,241
Income from shares in group undertakings		556,519	513,300
Interest payable and similar expenses	9	(53,126)	(55,993)
Profit before tax		1,646,297	1,876,548
Tax on profit	10	(349,651)	(394,958)
Profit for the financial year		1,296,646	1,481,590

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

The notes on pages 13 to 33 form part of these financial statements.

Page 9

CENTRE TANK SERVICES LIMITED

REGISTERED NUMBER: 02136427

BALANCE SHEET

AS AT 31 DECEMBER 2024

			2024		2023
	Note		£		£


Fixed assets
Tangible assets	13		216,054		308,501
Investments	14		3,427,498		3,803,673
			3,643,552		4,112,174
Current assets
Stocks	15	684,845		818,472
Debtors: amounts falling due within one year	16	1,145,077		1,060,848
Cash at bank and in hand	17	330,884		141,410
		2,160,806		2,020,730
Creditors: amounts falling due within one year	18	(1,384,918)		(2,408,704)
Net current assets/(liabilities)			775,888		(387,974)
Total assets less current liabilities			4,419,440		3,724,200

Creditors: amounts falling due after more than one year	19		(1,216,081)		(325,214)
			3,203,359		3,398,986
Provisions for liabilities
Deferred tax	20	(2,081)		(7,085)
Provisions	22	(67,153)		(74,386)
			(69,234)		(81,471)

Net assets			3,134,125		3,317,515

Capital and reserves
Called up share capital	23	100	100
Profit and loss account	24	3,134,025	3,317,415
		3,134,125	3,317,515

Page 10

CENTRE TANK SERVICES LIMITED

REGISTERED NUMBER: 02136427

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

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

M S Terry

Director

Date: 1 July 2025

The notes on pages 13 to 33 form part of these financial statements.

Page 11

CENTRE TANK SERVICES LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2024	100	3,317,415	3,317,515

Profit for the year	-	1,296,646	1,296,646
Dividends paid	-	(1,480,036)	(1,480,036)
At 31 December 2024	100	3,134,025	3,134,125

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2023

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2023	100	3,398,025	3,398,125

Profit for the year	-	1,481,590	1,481,590
Dividends paid	-	(1,562,200)	(1,562,200)
At 31 December 2023	100	3,317,415	3,317,515

The notes on pages 13 to 33 form part of these financial statements.

Page 12

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

Centre Tank Services Limited is a private limited company incorporated and domiciled in the United Kingdom. The address of the registered office is Office 2.3 Design Hub, Coventry University Technology Park, Puma Way, Coventry, CV1 2TT. The principal activity of the Company in the year under review was that of assembly and distribution of oil and fuel handling related products.
The Company's trading address is Unit 41 Minworth Industrial Estate, Forge Lane, Sutton Coldfield, B76 1AH.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.

The financial statements are rounded to the nearest whole pound Sterling.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:

∙the requirements of IFRS 7 Financial Instruments: Disclosures

∙the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers

∙the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total

∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:

- paragraph 79(a)(iv) of IAS 1;

- paragraph 73(e) of IAS 16 Property, Plant and Equipment;

∙the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements

∙the requirements of IAS 7 Statement of Cash Flows

∙the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures

∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member

This information is included in the consolidated financial statements of Flowmax Limited as at 31 December 2024 and these financial statements may be obtained from the Registrar of Companies.

Page 13

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

The financial statements contain information about Centre Tank Services Limited as an individual company and do not contain consolidated financial information as the parent of the Group. The Company and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Flowmax Limited, a company registered in England and Wales.
Flowmax Limited prepares consolidated financial statements in accordance with UK adopted International Accounting Standards. Copies are available to the public and may be obtained from the Registrar of Companies.

2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 14

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.5

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for goods and warranty services supplied, stated net of discounts, returns and value added taxes. The Company recognises revenue when performance obligations have been satisfied and for the Company this is when the goods or services have transferred to the customer and the customer has control of these. The Company’s activities are described in detail below.
(a) Sales of goods
The Company manufactures and sells oil and fuel handling products for the business to business industrial manufacturing and installation markets. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer and the customer has legal title to the goods. Delivery occurs when the products have been distributed to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract or the Company has objective evidence that all criteria for acceptance have been satisfied.
The Company offers discounts on its sales of goods which are agreed on a customer by customer basis at the sales order stage, and the value of up-front payments received in respect of sales of goods are immaterial to the financial statements.
A receivable is recognised when the performance obligation is satisfied as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.
The Company’s obligation to repair or replace faulty products under the standard warranty terms is recognised as a provision.

2.6

Leases

Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Short term leases or those of low value are recognised as operating leases.

The Company as a lessee

The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. Incremental rate used by the Company equals that of its borrowings, the cost of capital to the Company.

Lease payments included in the measurement of the lease liability comprise:

∙fixed lease payments (including in-substance fixed payments), less any lease incentives;

The lease liability is included in 'Creditors' on the Balance Sheet.

Page 15

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.6

Leases (continued)

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are included in Tangible Fixed Assets in the Balance Sheet.

The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 2.10.

As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.

2.7

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 16

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.8

Current and deferred taxation

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

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

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

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

2.10

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.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 17

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.10

Tangible fixed assets (continued)

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:

Fixtures and fittings	-	20-30%
Motor vehicles	-	25%
Right-of-use assets	-	Straight line over lease term

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.12

Stocks

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

At each 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 profit or loss.

2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.15

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

Page 18

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.16

Provisions for liabilities

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

Increases in provisions are generally charged as an expense to profit or loss.

2.17

Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:

Financial assets and financial liabilities are initially measured at fair value.

Financial assets

All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.

Financial liabilities

At amortised cost

Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.

Where loans are made to the Company’s subsidary at below market-rate, the loan is recognised initially at fair value, which is the present value of future cash flows discounted using a market rate of interest for a similar instrument with comparable terms and credit risk. The difference between the loan amount received and the fair value is recognised as a distribution from its subsidary.

2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 19

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The Company makes estimates and assumptions concerning the future and judgements in applying the Company's accounting policies. The resulting accounting estimates will, by definition, seldom equal the actual results. The following estimates and assumptions have a significant risk of causing a material adjustment to the carrying value of assets and liabilities within the next financial year:
Provision for doubtful debts
Management provides for doubtful debts on the perceived risk profile and payment history of the debtor.
Provision for slow moving, damaged and obsolete stock
There is a provision to write stock down to the lower of cost and net realisable value. Management have made estimates of the selling price and direct costs to sell on certain stock items.
Provision for warranty costs
The Company gives warranties on certain systems sold and undertakes to make good by repair or replacement any manufacturing faults that become apparent within two years from the date of sale. Management provides for the estimated cost of the outstanding warranty work to be carried out in future periods.
Impairment of investments
The Company assesses at each reporting period, whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset.
The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. The reduction is an impairment loss. An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately in profit or loss.
Leases
IFRS 16 requires the Company to account for its leases as right-of-use assets over the life of the lease agreement. The present value of the lease liability on inception requires management to assess various factors including the discount rate and the life of the lease and the extent to which any options to extend or break the lease are exercised. These factors have a resulting impact in determining the present value of the lease liability on inception.
Non-market rate loans from subsidary
IFRS 9 requires the Company to account for non-market rate loans at fair value which is calculated as the
present value of the future cash flows discounted using a market rate of interest for a similar instrument
with comparable terms and credit risk. The requires management to determine an appropriate market rate
of interest.

Page 20

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Sale of goods	7,201,392	7,767,583
Servicing	7,332	12,194
	7,208,724	7,779,777

Analysis of turnover by country of destination:

					2024	2023
					£	£

United Kingdom	6,597,289	7,112,777
Rest of the World	611,435	667,000
	7,208,724	7,779,777

Depreciation of tangible fixed assets including right-of-use assets	97,919	15,448
Exchange differences	(40,132)	(33,636)
Defined contribution pension cost	22,795	20,715
Cost of stocks recognised as an expense	4,295,295	4,563,555
Short-term lease costs	7,600	6,395

6.	Auditor's remuneration
		2024	2023
		£	£

Fees payable to the Company's auditor for the audit of the Company's financial statements and non-audit services

17,100

16,642

Page 21

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Wages and salaries	878,302	926,889
Social security costs	93,743	95,901
Cost of defined contribution scheme	22,795	20,715
	994,840	1,043,505

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

	2024	As restated 2023
	No.	No.

Sales and administration	24	24
Directors	4	4

	28	28

The prior year comparative employee figures were restated due to an inconsistency noted in the comparative employee staff numbers.

8.	Directors' remuneration
		2024	2023
		£	£

Directors' emoluments	168,102	226,954
Company contributions to defined contribution pension schemes	4,628	4,423
	172,730	231,377

	During the year retirement benefits were accruing to 2 Directors (2023 - 2) in respect of defined contribution pension schemes.
	The highest paid Director received remuneration of £89,175 (2023 - £125,923).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £2,468 (2023 - £2,359).

Page 22

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

9.	Interest payable and similar expenses
		2024	2023
		£	£

Bank interest payable	16,207	28,640
Loans from group undertakings	30,992	17,208
IFRS 16 leases	5,927	10,145
	53,126	55,993

Corporation tax
Current tax on profits for the year	345,534	394,958
Adjustments in respect of previous periods	9,121	-
	354,655	394,958

Total current tax	354,655	394,958

Deferred tax
Origination and reversal of timing differences	(5,004)	-
Total deferred tax	(5,004)	-


	Tax on profit	349,651	394,958

Page 23

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.Taxation (continued)

Profit on ordinary activities before tax

1,646,297

1,876,548

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)	411,574	440,989
Effects of:
Expenses not deductible for tax purposes	76,021	62,571
Group income	(110,720)	(120,731)
Adjustments to tax charge in respect of prior periods	(9,121)	-
Fixed asset differences	-	(17)
Other timing differences leading to an increase (decrease) in taxation	(18,103)	12,146
Total tax charge for the year	349,651	394,958

Page 24

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.	Dividends
		2024	2023
		£	£

Dividends declared

1,480,036

1,562,200

For the year ended 31 December 2024, the following dividends were declared:
Dividends of £4,144 per share were paid in April 2024;
Dividends of £870 per share were paid in May 2024;
Dividends of £655 per share were paid in June 2024;
Dividends of £1,726 per share were paid in July 2024;
Dividends of £610 per share were paid in August 2024;
Dividends of £628 per share were paid in September 2024
Dividends of £1,330 per share were paid in October 2024;
Dividends of £486 per share were paid in November 2024;
Dividends of £4,351 per share were paid in December 2024.
Of the above dividends declared, £100,000 remained unpaid at 31 December 2024.
For the year ended 31 December 2023, the following dividends were paid:
Dividends of £3,830 per share were paid in April 2023;
Dividends of £680 per share were paid in May 2023;
Dividends of £850 per share were paid in June 2023;
Dividends of £800 per share were paid in July 2023;
Dividends of £800 per share were paid in August 2023;
Dividends of £500 per share were paid in September 2023
Dividends of £850 per share were paid in October 2023;
Dividends of £540 per share were paid in November 2023;
Dividends of £3,672 per share were paid in December 2023.
No amounts remained unpaid at 31 December 2023.

Page 25

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

12.	Exceptional items
		2024	2023
		£	£

Impairment charge

327,000

261,000

If there are indicators of impairment, the Directors test cash- generating units for impairment. A review for indicators of impairment was undertaken by the Directors in respect of the carrying value of investments held in subsidiaries at 31 December 2024. The Directors assessed there to be such an indicator of impairment in respect of a subsidiary due to the expected future operating performance. This subsidiary represents a separate cash-generating unit.
In assessing the impairment of the investment, the Company has determined the recoverable amount based on value in use calculations. Calculation of the value-in-use is determined by covering a detailed five-year forecast approved by Management, followed by an extrapolation of expected cash flows for the remaining useful lives using a growth rate determined by Management. The present value of the expected cash flows is determined by applying a suitable discount rate reflecting current market assessments of the time value of money.
The key assumptions used reflect historical data from both external and internal sources. The key assumptions used are as follows:
- Gross margin 28% to 30% (2023: 29% to 30%)
- Growth rate of 9% up to six years taken to perpetuity (2023: 8%)
- Cost of capital of 14.65%. (2023: 14.57%)

Page 26

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.	Tangible fixed assets

	Motor vehicles	Fixtures and fittings	Right-of-use assets	Total
	£	£	£	£
Cost or valuation
At 1 January 2024	10,495	355,883	731,931	1,098,309
Additions	-	5,472	-	5,472
Disposals	-	-	(133,439)	(133,439)
At 31 December 2024	10,495	361,355	598,492	970,342
Depreciation
At 1 January 2024	10,495	338,745	440,568	789,808
Charge for the year on owned assets	-	8,902	-	8,902
Charge for the year on right-of-use assets	-	-	89,017	89,017
Disposals	-	-	(133,439)	(133,439)
At 31 December 2024	10,495	347,647	396,146	754,288
Net book value
At 31 December 2024	-	13,708	202,346	216,054
At 31 December 2023	-	17,138	291,363	308,501

The net book value of owned and leased assets included as "Tangible fixed assets" in the Balance Sheet is as follows:
	2024	2023
	£	£


Tangible fixed assets owned	13,708	17,138
Right-of-use tangible fixed assets	202,346	291,363
	216,054	308,501

Information about right-of-use assets is summarised below:
Net book value
	2024	2023
	£	£

Property	192,687	275,620
Plant and machinery	9,659	15,743
	202,346	291,363

Page 27

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.Tangible fixed assets (continued)

Depreciation charge for the year ended
	2024	2023
	£	£

Property	82,933	76,843
Motor vehicles	6,084	13,093
	89,017	89,229

14.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2024	4,064,673
	Disposals	(49,175)
	At 31 December 2024	4,015,498
	Impairment
	At 1 January 2024	261,000
	Charge for the period	327,000
	At 31 December 2024	588,000
	Net book value
	At 31 December 2024	3,427,498
	At 31 December 2023	3,803,673

See note 12 for further details regarding the impairment during the year ended 31 December 2024.
Disposals relate the to the sale of shares in Whisper Pumps during the year ended 31 December 2024. The Company sold 2% of of the Orindary shares for a consideration of £75,500.

Page 28

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding

Castle Pumps Limited	Ordinary	100%
Annex Valves Limited	Ordinary	100%
Whisper Pumps Limited	Ordinary	86%

15.	Stocks
		2024	2023
		£	£

	Finished goods and goods for resale	684,845	818,472

Inventories above included a provision of £45,331 (2023: £36,763) for slow moving and obsolete stock.

16.

Debtors

					2024	2023
					£	£


Trade debtors	950,746	951,951
Amounts owed by group undertakings	15,480	7,295
Other debtors	122,579	42,436
Prepayments and accrued income	29,521	27,760
Tax recoverable	26,751	31,406
	1,145,077	1,060,848

Amounts owed by group undertakings are unsecured, non-interest bearing and repayable on demand.

17.	Cash and cash equivalents
		2024	2023
		£	£

	Cash at bank and in hand	330,884	141,410

Page 29

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

18.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Contract liabilities	62,086	69,175
Trade creditors	800,543	772,407
Amounts owed to group undertakings	17,228	1,114,208
Other taxation and social security	235,375	234,040
Lease liabilities	95,145	130,990
Other creditors	10	10
Accruals and deferred income	74,531	87,874
Dividends declared	100,000	-
	1,384,918	2,408,704

Amounts owed to group undertakings are unsecured, non-interest bearing and repayable on demand.

19.	Creditors: Amounts falling due after more than one year
		2024	2023
		£	£

Lease liabilities	122,904	179,622
Amounts owed to group undertakings	1,093,177	145,592
	1,216,081	325,214

Included amounts owed to group undertakings are loans totalling £78,823 (2023: £145,592) that are unsecured, repayable in equal instalments to be repaid in full by 30 April 2026 and interest bearing at a rate of Lloyds base rate plus 1.75%.
Included amounts owed to group undertakings are loans totalling £200,000 (2023: £200,000) that are unsecured, repayable by 31 December 2026 and interest bearing at a rate of 2.75%. The loan term on this was extended during the year ended 31 December 2024 to be repaid by 31 December 2026.
Included amounts owed to group undertakings are loans totalling £297,000 (2023: £297,000) that are unsecured, repayable by 31 December 2026 and interest bearing at a rate of Bank of England base rate plus 1.12%. The loan term on this was extended during the year ended 31 December 2024 to be repaid by 31 December 2026.
Included amounts owed to group undertakings are loans totalling £600,000 (2023: £600,000) that are unsecured, repayable on demand and non-interest bearing. The loan of £600,000 was a below market rate loan and has been discounted to its present value of £517,354. The difference between the loan amount and the fair value has been accounted for as a distribution from its subsidary. The loan term on this was extended during the year ended 31 December 2024 to be repaid by 31 December 2026.

Page 30

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

20.	Deferred taxation

		2024
		£

	At beginning of year	(7,085)
	Charged to profit or loss	5,004
	At end of year	(2,081)

The provision for deferred taxation is made up as follows:
	2024	2023
	£	£

Accelerated capital allowances

(2,081)

(7,085)

21.	Leases
	Company as a lessee
	The Company leases its principal place of business. The periodic rent is fixed over the lease term. The Company also leases motor vehicles.
	Lease liabilities are due as follows:
		2024	2023
		£	£

Within one year	95,145	130,990
1-5 yrs	122,904	179,622
	218,049	310,612

The following amounts in respect of leases, where the Company is a lessee, have been recognised in profit or loss:
	2024	2023
	£	£

Expenses relating to short-term leases

7,600

14,897

Total cash outflows in respect of IFRS 16 leases was £99,329 (2023: £109,477)

Page 31

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

22.	Provisions

		Warranty provision
		£

	At 1 January 2024	74,386
	Charged to profit and loss	255,639
	Utilised in year	(262,872)
	At 31 December 2024	67,153

The Company gives warranties on certain systems sold and undertakes to make good by repair or replacement any manufacturing faults that become apparent within two years from the date of sale. A provision has therefore been made for the estimated costs of the outstanding warranty work to be carried out in future periods.

23.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

100 (2023 - 100) Ordinary shares of £1.00 each	100	100

Ordinary shares carry full voting rights and rights to dividends and capital distributions.

24.

Reserves

Profit and loss account

The profit and loss account is the Company's accumulated retained profits or losses as at the year end.

25.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £22,795 (2023: £20,715). Contributions totalling £Nil (2023: £Nil) were payable to the fund at the balance sheet date.

Page 32

CENTRE TANK SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

26.	Related party transactions
	During the year ended 31 December 2024, the Company undertook the following transactions with group companies.

		2024	2023
		£	£

Purchases from group companies	169,424	195,601
Sales to group companies	368,225	422,343
Recharges to group companies	59,188	57,169
	596,837	675,113

At the year end the Company owed £1,193,051 (2023: £1,259,800) to group companies.
At the year end the Company was owed £15,480 (2023: £7,295) from group companies.
During the year ended 31 December 2024, the Company declared dividends to the following shareholders:
Flowmax Limited - £1,332,032 (2023: £1,405,980). Of this dividend declared, £90,000 was unpaid at 31 December 2024 (2023: £nil).
R J Terry - £74,002 (2023: £78,110). Of this dividend declared, £5,000 was unpaid at 31 December 2024 (2023: £nil).
M S Terry - £74,002 (2022: £78,110). Of this dividend declared, £5,000 was unpaid at 31 December 2024 (2023: £nil).
During the year ended 31 December 2024, the Company received dividends of £35,000 (2023: £31,500) from Castle Pumps Limited.
During the year ended 31 December 2024, the Company received dividends of £407,232 (2023: £481,800) from Whisper Pumps Limited.

27.	Controlling party

The Company is a subsidiary undertaking of Flowmax Limited, incorporated in England and Wales.
The Directors regard Flowmax Limited as the smallest group and SA Bias Industries (Pty) Limited, a company registered in South Africa, as the largest group within which the subsidiary belongs and for which group accounts are prepared. Flowmax Limited's registered office is Office 2.3 Design Hub, Coventry University Technology Park, Puma Way, Coventry, CV1 2TT. Copies of the Flowmax Limited group accounts are available from the Registrar of Companies.

Page 33