The directors present the strategic report for the year ended 31 December 2024.
The Directors report that this trading year has seen similar level of turnover to 2023, but a reduction in profitability. This has primarily been due to operational challenges that have impacted the Sofia Offshore Wind Farm installation contract although this has been mitigated to some extent by increased offshore wind farm maintenance activity and the commencement of UK subsea rock installation (SRI) contract work by the company.
The Company's key financial and other performance indicators during the year were as follows:
| Unit | 2024 | 2023 |
Turnover | £000 | 233,230 | 245,182 |
(Loss)/ profit before taxation | £000 | (7,526) | 6,723 |
(Loss)/ profit after taxation | £000 | (5,631) | 5,130 |
Shareholder funds | £000 | 1,560 | 7,191 |
Current assets as % of current liabilities | % | 103 | 107 |
Average number of employees | No. | 85 | 83 |
The Directors have reviewed the business risks in the context of economic factors including geopolitical events and their future possible adverse effects on the Company’s future operating profits, cash flow and financial position.
Prices and margins are improving, although clients maintain giving weighting to price rather than quality when awarding contracts. However, by continuously delivering quality and by successful tendering on long term framework agreements, it is expected that a continuous revenue will lead to steady project results.
The Company is supported by a very strong Group structure which maintains favourable liquid resources and the Directors do not believe that the Company will suffer liquidity shortages in the foreseeable future.
The Directors have considered the principal risks and challenges to the continued trading of Van Oord Offshore Wind UK Ltd, over the medium term period to the end of calendar year 2025. The Directors understand the challenges of trading in the installation and maintenance sectors of the offshore wind market. Trading activities have increased in both these sectors in 2024 and are forecasted to increase further going forwards thanks to the award of new contracts to the Company.
The Directors anticipate risks from economic or global factors and plan accordingly. The Company has remained vigilant over any warning signs exhibited in the global economy and uncertainty in the United Kingdom economy. The Company has assessed the potential impact on its business on a short to medium term view of the risks and still considers inflationary pressures to be a risk. The Company continuously assesses the potential impact of inflation on the business and factors this into the price of project work to be delivered in future years.
Section 172 of the Companies Act 2006 requires a director of a Company to act in the way he or she considers, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole. The Directors of the Company recognise the importance of and the effect that different groups of stakeholders have on the Company and its success. As a result, the Directors are careful to consider the effects of the Company’s actions on different groups of stakeholders when they make decisions.
The Directors recognise that customer relationships are critical to the success of the Company. As the nature of business of the Company involves multi-year frame agreements, it is of paramount importance that the Company maintains a positive relationship with its customers in order to be in a position to win repeat business.
The Company carries out regular evaluations with customers to foster and maintain a positive working relationship. The evaluations provide essential feedback, enabling the Company to give an improved service in engineering and project management.
Suppliers
The Directors recognise that the Company’s suppliers also play an important role in the success of the Company. Receiving quality products in a timely and efficient manner from suppliers has a positive effect on the Company’s ability to control costs and delivery project results, this makes suppliers a key group of stakeholders.
The Company maintains an active supplier management process whereby individual suppliers are scored against their agreed supplier contract. The results of this process are presented to the Directors on a regular basis, this enables the Directors to better direct key purchasing decisions.
As the Company’s workforce is primarily derived from the local community, the Directors recognise that they must recognise the local community when they make business decisions as the local community potentially represents a large part of the Company’s future workforce. It is therefore important for the Company to improve its reputation and minimise its negative effects on the community.
The Directors believe that greater awareness of the Company’s activities amongst the community will help to improve the Company’s reputation within the local community and therefore increase the number of quality applicants for positions within the Company which can help to improve the Company’s long-term prospects.
Environment
The Directors recognise that the Company must act in an environmentally responsible manner in all its business activities to ultimately achieve a net - positive impact on people, the planet and prosperity. The Company also seeks to reduce its energy usage through installing fixtures and fittings which reduce energy consumption.
The Directors recognise that the Company’s employees are crucial to the long-term success of the Company. It is important that the Company maintains and improves upon the skill base of its employees as this will directly affect the day to day performance of the Company. A properly trained workforce will enable the Company to meet its customer service goals whilst making efficient use of its resources. The Directors seek to identify the training needs of its employees through the use of regularly scheduled performance appraisals combined with budgeting for training needs on a yearly basis.
The Directors also want to encourage employee participation in the business as this leads to better employee retention which inevitably leads to a more skilled workforce which is better able to meet the ongoing requirements of the business. In order to encourage employee participation, the Directors organise regular business update presentations where they present updates on the status of the business and seek to include employees through question and answer sessions.
Principle Decisions
The Directors consider principle decisions to be those decisions which are of key strategic importance to the Company and affect one or more groups of stakeholders. The Directors recognise that considering the impact on stakeholders in its decisions is key to the success of the Company.
Pay Award
The Directors approved an average of 8.10% pay increase for its office employees in 2024. During the process of agreeing the increase, the Directors consulted the employees in order to receive feedback on the proposal and ensure that all viewpoints were considered. The pay award was approved by the Directors after it was agreed.
Environmental, quality, health and safety statement
Clients requiring the services of Van Oord Offshore Wind UK Ltd, in our core activities of offshore wind construction and maintenance, are constantly demanding higher standards, with the environment being one of the key indicators. Therefore, good environmental performance is of paramount importance to the Company. The Company strives to continually improve its environmental and quality performance. In 2024 the Company had a good health and safety performance, measured through quarterly Van Oord reporting, which the Directors believe is a direct result of its continued investment in training, education and monitoring systems. However, the Directors are not complacent and understand that constant vigilance is important.
On behalf of the board
The Directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 14.
No ordinary dividends were paid (2023: £nil). The Directors do not recommend payment of a final dividend (2023: £nil).
The Directors who held office during the year and up to the date of signature of the financial statements were as follows:
Interest has been incurred at a floating rate of 3-5% on group facilities. Therefore, financial assets, liabilities, interest income and interest charges and cash flows are not affected by movements in interest rates with no significant exposure.
The Company includes price inflation indices and adjustment mechanisms within contracts in order to mitigate exposure to price changes in costs of operating activity. Pricing changes are factored into forward forecasts of contract outturns and, so, are a central part of ongoing risk planning and management.
The Directors do not consider that there is any significant credit risk due to the nature of the business, its customers and the operation of a tight credit control process.
The Company aims to mitigate liquidity risk by managing cash generated by its operations. The Company achieves this through the use of intercompany loan funding and other banking facilities. The Company also has a cash pooling arrangement with the Parent Company, which sweeps cash on a daily basis.
The Company’s principle transactions in foreign currency are in Euros. As a result, the Company’s future cashflows arising from these transactions can be affected by movements in exchange rates. Any significant payments forecast that are not denominated in Euros are hedged through the Company’s corporate Treasury team in the Netherlands.
High demand for offshore wind farm maintenance and repair has continued into 2025 with another strong year forecast. Going forwards into 2026 and beyond, the contract pipeline looks strong and the Company is well placed in terms of both track record and vessel availability to grow its activity further. The Company also began to contract for and deliver subsea rock installation work in 2024 – this activity is complimentary to the other services delivered by the Company as well as being low risk and steady margin work with strong demand forecast over future years.
In addition to the ongoing Sofia Offshore Wind Farm ECPI contract, the Company is actively bidding for other similar contracts as well as for transport and installation (T&I) work and new subsea rock activities. Stretching UK Government targets for growth in offshore wind electricity generation plus limited contractor and vessel availability to deliver such work puts the Company in a strong position to be awarded further work in this area. These factors are also anticipated to realign commercial and contract terms in order to deliver the works more profitably.
The Company's business activities, together with the factors which the directors foresee will impact upon the future commercial successes of the Company, are set out in this report.
The financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for the foreseeable future and meet its liabilities as they fall due.
At the balance sheet date, the Company had net current assets of £13,500,000 (2023 - £16,954,000) and total net assets of £1,560,000 (2023 - £7,191,000) including amounts owed (from) / to its parent undertaking and other group undertakings (net) of £40,352,000 (2023 - £68,549,000).
The Company meets its day to day working capital requirements through cash deposits held and loans from its parent undertakings. The Company is dependent on continued financial support from its parent undertaking.
Although the overall revenue of the Company has decreased slightly in 2024, the offshore wind farm maintenance activities and revenues have increased significantly in 2024, with sales expected to improve further going forwards due to contracts awarded and good vessel utilisation.
The Sofia Offshore Wind Farm EPCI (Engineering, Procurement, Construction and Installation) contract was priced and awarded prior to signing of supply sub-contracts. Since then the unprecedented cost inflationary pressures (particularly energy and steel prices) resulting from macroeconomic events such as the Ukraine war as well as operational challenges in project delivery have impacted the contract’s potential profitability significantly.
In order to monitor the situation and ensure that the Company remains a going concern, the Directors are reviewing weekly and monthly forecasts of the Company’s expected future performance based on the most up to date information that is available. The information that these forecasts are based on changes on an almost daily basis and therefore regular reviews are essential in order to control the Company’s exposure to risks.
The Company is dependent on continuing financial support being made available from its parent undertaking. The Directors have received formal confirmation via a letter from Van Oord N.V (the Parent Company) that financial assistance will be provided, for the period ending 30 September 2026 from the date of the approval of these financial statements. On this basis, the financial statements have been prepared on a going concern basis.
The Directors have determined that the Parent Company will be able to provide financial support to the Company as and when required as detailed cashflow analysis has been done by the Parent Company for both current and future years. The results of this analysis is that the Parent Company will be able to support the Company for the period ending 30 September 2026 from the date of the approval of these financial statements.
In view of the circumstances referred to above, the Directors have satisfied themselves that financial support will continue to be available to the Company in the foreseeable future. Accordingly, the Directors of the Company believe that it is appropriate to prepare the financial statement on a going concern basis.
In accordance with the company's articles, a resolution proposing that Ernst & Young LLP be reappointed as auditor of the company will be put at a General Meeting.
Sustainability, innovation and collaboration are key to successfully facing today’s global challenges. Together we can create new solutions that contribute to a better world. The ultimate goal of our sustainability framework is to have a net-positive impact on people, the planet and prosperity.
Environmental protection and climate change are among the greatest challenges we face, both as a society and as a business. We have a key part to play through minimising the environmental impact and carbon footprint of our operations to ensure the long-term sustainability of the services we provide.
Policies & Management
Our Environmental Policy sets out our commitment to integrating the assessment, management and control of environmental issues into the management of our business. This is complemented by our Energy Policy, which recognises the impact of energy use on climate change and commits us to effectively and efficiently manage our energy use.
Our policies require us to play our part in accelerating the energy transition, minimising the amount of waste going to landfill by designing out and reducing waste, reusing materials wherever possible, recycling more, and increasing the use of recycled and recovered materials.
We identify, manage and mitigate our environmental impacts from project to company level through our ISO 14001 certified management system, supported by our QSHE department. We make our people aware of environmental standards and policies that are integrated into our management system, through extensive training and promoting the right behaviours we expect of our employees, as set out in our Code of Conduct. Compliance with our environmental standards and policies is assessed through the same process as our Health and Safety standards. We also monitor environmental performance improvement using key indicators (for example carbon), which are regularly reviewed and reported. All environmental incidents are fully investigated and reported by our SHEQ department to ensure any appropriate lessons are learned to prevent further recurrences.
In order to calculate the required information, we have used:
The 2019 UK Government Environmental Reporting Guidance;
The Greenhouse Gas (GHG) Reporting Protocol – Corporate Standard (revised edition);
UK Governments Greenhouse Gas Conversion Factors and Methodology for Company Reporting 2019; and
UK Government Greenhouse Gas Conversion Factors for 2024.
We have reported carbon dioxide equivalent emissions (tCO2e) from sources required under the Companies (Director’s Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. Emissions cover all those from our own marine fleet, fuel used directly on our project sites, electricity in our offices and fuel used in private/hire cars for business use. Where energy use was not directly recorded in kWH and where data was obtained in litres used and distance travelled, relevant conversion factors have been used to convert to CO2e and kWH. The sources of energy use that have been quantified are as follows:
Scope 1 – Direct greenhouse gas emissions
Scope 2 – Indirect energy emissions
Scope 3 – Indirect emissions (upstream and downstream supply chain)
The carbon quantification encompasses activities undertaken in the UK by Van Oord Offshore Wind UK Ltd.
VOOW UK’s GHG reporting covers all operations conducted in the UK for which VOOW UK has operational control. The associated energy use and emissions (in terms of equivalent carbon) for scope 1, 2 and business travel by car (scope 3) for the reporting period (this being 2024) are set out below. As we undertook mandatory reporting last year (2023), the same information for 2023 is also presented.
Our main source of emissions and energy use is fuel used in our marine equipment, which is related to the volume of work we undertake and also the type of work we deliver. The selected intensity ratio therefore relates emissions to turnover. 2024 saw a significant increase in emissions due to extra vessel activity for the operational phase of the Sofia Offshore Windfarm project plus subsea rock installation work undertaken by VOOW UK for the first time.
95% of Van Oord’s global carbon emissions is associated with the fuel we use in our vessels, so reducing the emissions associated with marine fuel is our area of focus – we are achieving this through workstreams focused on technology, energy, governance & behaviour. Short, mid, and long-term initiatives are summarised as follows:
Short Term (Biofuels): We are adopting renewable biofuels, such as FAME and HVO, as drop-in solutions for our existing vessels. These biofuels allow us to reduce emissions without major modifications to our fleet.
Mid Term (Fleet Upgrades): We are retrofitting vessels to improve compatibility with renewable fuels and enhance energy efficiency, prioritising upgrades for the highest-emitting vessels to maximise impact.
Long Term (New Builds): We are constructing new vessels, such as Calypso and Boreas, designed specifically to run on renewable fuels like green methanol. These vessels represent our long-term commitment to a sustainable and future-proof fleet.
In the period covered by the report we have continued to undertake a number of energy efficiency actions including the following:
Each vessel in the Van Oord fleet has a Ship Energy Efficiency Management Plan (SEEMP) in order to help document, target and monitor ship efficiency performance. Key energy saving measures include:
Sailing with reduced speed whenever possible in order to reduce fuel consumption;
Clean hull & remove all unnecessary weight (e.g. used spare parts) to reduce drag;
Conversion of all onboard lighting to LED in order to reduce electricity use;
Thermal insulation fitted to cabins to reduce heat loss;
Installation of Lidar windmeter to reduce unnecessary crane operation time;
Provision of fuel and power consumption data to crew to raise awareness of usage;
Installation of tumble dryers with heat pumps to reduce energy consumption.
Most of the electricity supplied to our permanent office has come from renewable sources.
To bridge the financial gap and accelerate our transition to renewable fuels, Van Oord have now established the Green Fuel Fund (GFF). The GFF is a dedicated financial mechanism that supports the additional costs associated with purchasing renewable fuels, ensuring we remain on track with our sustainability commitments. Recognising the increasing importance of sustainability for our clients, we've made the Sustainable (i.e. lower carbon) offer our default option. In cases where clients are not ready to fully embrace the Sustainable offer, the GFF allows us to:
Proactively reduce emissions: We can still invest in renewable fuels for strategic projects, ensuring ongoing progress toward our emission goals.
Demonstrate leadership: By taking the initiative, we reinforce our position as a leader in sustainable maritime solutions.
Van Oord has also begun executing and monitoring progress on the company’s 3-year plan with a focus on delivering positive impact across our 4 sustainability pillars which are:
Enhancing the energy transition,
Accelerating climate actions,
Empowering nature and communities;
Achieving net zero emissions.
We have audited the financial statements of Van Oord Offshore Wind UK Ltd. for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, the Statement of Changes in Equity and the related notes 1 to 22, 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 the period ending 30 September 2026 from whtn 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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company’s ability to continue as a going concern.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and directors' report have been prepared in accordance with applicable legal requirements.
Explanation as to what extent 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 irregularities, including fraud. 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those relating to the reporting framework (FRS102 and Companies Act 2006) and the relevant direct and indirect tax legislation in the United Kingdom. In addition, the Company is required to comply with laws and regulations relating to its operations including the Health and Safety Act and employment regulations.
We understood how the Company is complying with those frameworks by making enquiries of management to understand how the Company maintains and communicates its policies in these areas. These enquiries confirmed that the Company has a process for monitoring legal requirements; has training policies designed to determine that all employees are properly trained and understand the code of conduct relating to compliance with laws and regulations and has a process for reporting matters of non-compliance and taking appropriate action. We corroborated our enquiries through review of Board minutes and correspondence with relevant authorities.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by assessing revenue to be a fraud risk. Our procedures were designed to address the risk of the potential for revenue to be misstated due to the complexity in estimating the costs to complete on projects as it involves forecasts that are inherently uncertain. We tested the revenue recognised and management’s forecasts of projected costs, focusing on the key assumptions to address the risk. We also tested the historical accuracy of management’s forecasts to assess the reliability of the forecasting process. Applying our data techniques, we identified the manual journal population deemed most susceptible to fraud (based on fraud risk criteria) and substantiated those transactions back to supporting documentation including appropriate authorisation.
Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved making enquiries of management and those charged with governance as to their awareness of non-compliance with laws and regulations. We also considered the results of our substantive procedures on other areas of the audit that may indicate non-compliance with such laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
Van Oord Offshore Wind UK Ltd. is a private company limited by shares incorporated in England and Wales. The registered office is Resolution House, 18 Ellerbeck Court, Stokesley, North Yorkshire, TS9 5PT.
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 £'000.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income.'
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Van Oord N.V. These consolidated financial statements are available from its registered office, PO Box 8574, 3009 AN Rotterdam, the Netherlands, and are available on the group website: www.vanoord.com/news/publications.
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.
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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Long-term contracts
Profit on long-term contracts is taken as the work is carried out, if the final outcome can be assessed with reasonable certainty. The profit included is calculated to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as the contract activity progresses.
Stage of completion is measured by reference to costs incurred to date as a percentage of total estimate costs for each contract. Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. An expected loss on the contract is recognised immediately as an expense.
Turnover is stated as the value which has been certified. Revenues derived from variations on contracts are recognised to the extent that it has been accepted by the client. Amounts recoverable on contracts, which are included in debtors, are stated at cost plus attributable profit, to the extent that reliability is reasonably certain. Cost for this purpose includes valuation of all work undertaken by subcontractors.
Long-term contract balances represent total cost incurred net of amount transferred to profit and loss in respect of work carried out to date, less foreseeable losses and applicable payments on account. Payments received from customers in advance are deducted from work in progress to the extent of the cost of the work carried out and any excess is shown as payments on account on long-term contracts.
During the period, Management reviewed the allocation of £3,444k of general overheads which have been incorrectly recharged to project cost of sales. As a result of this review, an adjustment has been made to recatagorise these costs within administrative expenses as opposed to cost of sales. The prior year comparative figures have not been adjusted on the grounds of materiality.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
Employees project wages and salaries costs are recharged to associated Companies. The project recharges for the year were £6,824,194 (2023 - £5,226,987).
The Company contributes to a defined contribution pension scheme. Contributions in the year totalled £349,620 (2023 - £321,278). There were contributions amounting to £Nil (2023 - £71,460) outstanding at the balance sheet date.
There are £nil (2023: £nil) company contributions paid to a pension scheme in respect of Directors' qualifying services.
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
Factors that may affect future tax charges:
In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). There has been no change to corporation tax rates for the financial year ended 31 December 2024. For the financial year ended 31 December 2024 the weighted average tax rate is 25% (31 December 2023 weighted average tax rate was 23.5%).
Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements
Amounts owed from fellow group undertakings are non-interest bearing and are repayable on demand.
Amounts owed to fellow group undertakings are non-interest bearing and are repayable on demand, with the exception of Van Oord Finance, where interest has been payable at a floating rate of 2-5%.
A provision is recognised for the expected loss on the Sofia project. It is anticipated that these costs will be incurred in 2025, and therefore the full amount of £12,043,000 is forecast to crystallise within one year.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Ordinary shares have the following rights, preferences and restrictions:
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
This reserve records the nominal value of the issued share capital of the Company.
Consideration received for shares issued above their nominal value net of transaction costs.
This reserve records cumulative profits and losses less any dividends paid.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
As the Company is a wholly owned subsidiary within the group headed by Van Oord N.V. the Company has taken advantage of the exemption contained in FRS 102 paragraph 33.1A and has therefore not disclosed transactions or balances with entities which form part of the group due to all other group Companies being 100% owned within the Van Oord Group. The consolidated financial statements of Van Oord N.V. within which this Company is included, can be obtained from the address given in note 22.