The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

OES Oilfield Services (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 10, Orde Wingate Way, Stockton-On-Tees, Cleveland, United Kingdom, TS19 0GA.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

The company has taken advantage of the exemption under section 399 2(A) of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

OES Oilfield Services (UK) Limited is a wholly owned subsidiary of OES Equipment Limited, a company incorporated in the Isle of Man.

The directors' have prepared the accounts on a going concern basis, notwithstanding that the company is reliant on the support of it's immediate parent company, OES Equipment Limited, and it's ultimate controlling company, Joulon Holdings L.P.

The company produced a loss before taxation in the current year of £241,000 after reporting a profit in 2023 of £279,000. The balance sheet reports net liabilities of £486,000 (2023 - £183,000). Future budgets, forecasts and post year end trading suggests that the company will be profit making going forward.

The directors’ have received confirmation that Joulon Holdings L.P. will continue to provide the necessary level of support to enable it to continue to operate for the foreseeable future. In considering the ability of Joulon to provide any necessary support in the context of uncertainties it faces as a result of the current economic climate including the impact of ongoing global economic and geopolitical uncertainties, the directors’ have obtained an up to date understanding of Joulon's current financial position and future forecasts, as well as an understanding of the wider market conditions for the Group.

Taking all these factors into account, the directors’ have a reasonable expectation that the company has adequate support and resources to continue in operational existence and therefore they continue to adopt the going concern basis in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The company is principally engaged in providing onshore and offshore oil and gas field’s services to its customers. Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The company has concluded that it is the principal in its revenue arrangements because it controls the goods or services before transferring them to the customer.

Inspection and project support services

The ompany provides technical support services, which involves services such as downtime analysis, customer inventory optimisation services, equipment inspections, etc. The provision of the services is considered to be one performance obligation which is recognised according to the day rate charged for each day of service provided to the customer. The comp\ny recognises revenue from crew services over time, because the customer simultaneously receives and consumes the benefits provided by the Group.

Sale of goods

Revenue from contracts with customers is recognised at the point in time when control of the goods are transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods. The comapny has generally concluded that it is the principal in its revenue arrangements because it typically controls the goods before transferring them to the customer.

Ancillary support services

Revenue from other ancillary services such as fabrication income, equipment repair and overhaul, etc are recognised according to the day rate charged for each day service is provided to the customer. The comapny recognises revenue from crew services over time, because the customer simultaneously receives and consumes the benefits provided by the Group.

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.

During the year, the company revised the depreciation method applied to certain classes of tangible fixed assets to align with the accounting policies of its parent company. As a result, the company changed from the reducing balance method to the straight-line method for these assets. This change reflects a reassessment of the pattern in which the economic benefits of the assets are consumed and has been accounted for as a change in accounting estimate in accordance with FRS 102 Section 17 and paragraph 10.16. The change has been applied prospectively from the date of revision. The impact of this change was to increase the depreciation charge for the year by £70,460. The effect on future periods will depend on the remaining useful lives of the affected assets.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

In previous periods, depreciation was recognised on the following bases:

Plant and machinery            25% reducing balance

Fixtures, fittings & equipment        15% reducing balance

Computer equipment            33% straight line

Motor vehicles                25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

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

Plant and machinery with a carrying amount of £nil (2023 - £10,744) have been pledged to secure borrowings of the company.

Additions represent a debt to equity swap in the current financial year in OES Asset Integrity Management AS.

Included within amounts owed by group undertakings is £184,069 due from Derrick Services (UK) Limited which is unsecured, repayable on demand and attracts an interest rate of 8.5% per annum. The remaining amounts owed by group undertakings are unsecured, interest free and repayable on demand.

Finance liabilities amounting to £nil (2023 - £4,948) are secured on the assets to which they relate.

The amounts owed to group undertakings are unsecured, interest free and repayable on demand.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

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

The company’s immediate parent company is OES Equipment Limited, a company incorporated in the Isle of Man. The smallest and largest group undertaking for which group accounts are drawn up and of which the Company is a member is that headed by OES Equipment Limited. The registered office of OES Equipment Limited is PO Box 227, Clinch's House, Lord Street, Douglas, Isle of Man. The consolidated financial statements are not available to the public.

Joulon Holdings L.P., a partnership registered in the Cayman Islands which is an investment of Kohlberg Kravis Roberts ("KKR"), is the ultimate parent entity of the group. The directors are of the view that Joulon Holdings L.P. is the controlling party.