Registered number: 13146439
Company information
Contents
Group strategic report
Year ended 31 December 2024
Enshore Subsea Limited is a leading provider of shallow water cable installation and subsea trenching services in addition to being innovators in UXO (Unexploded Ordnance) technology in the offshore energy market.
The group’s trenching fleet capabilities allow the group to work across a wide range of seabed conditions and water depths and have the ability to offer burial solutions from beach to full field water depth.
Business review
The Directors are proud to publish a record breaking fourth year of trading boasting a stable revenue position and a significant increase in profitability reflecting the continued success of the group. During the year the group secured further projects across its core divisions and successfully achieved key operational milestones in its first Engineering, Procurement, Construction, and Installation (EPCI) contract secured during 2023. This project remains on track for completion in 2025, further strengthening the Group’s market position.
Investment remains a key driver of the group’s expansion strategy. In 2024, the group advanced the development of its patented survey technology, acquired a world-leading trenching vehicle, and secured its first vessel through a Joint Venture with a key global partner. Continued focus on investment increases the group’s capacity to deliver integrated solutions, offering their clients a complete package approach with onshore and offshore capability.
The group recognises that its workforce is integral to sustained success, the group continues to attract and retain high-calibre employees. During the review period, the group expanded and strengthened its workforce across onshore and offshore operations, management, and support functions. Given the highly competitive global talent market, the group remains committed to employee engagement and monitoring industry demand to maintain its position as an employer of choice.
Future developments
The 2025 forecasts indicate continued positive trading results, with revenue and profitability expected to maintain an upward trajectory. Ongoing investment in capital expenditure and operational platforms will further support the group’s growth strategy.
The group’s services are in increasing demand in all of the global offshore markets ensuring that the group is well positioned to continue to benefit from continued growth in the future.
The group’s trenching fleet capabilities allow the group to work across a wide range of seabed conditions and water depths and have the ability to offer burial solutions from beach to full field water depth.
Business review
The Directors are proud to publish a record breaking fourth year of trading boasting a stable revenue position and a significant increase in profitability reflecting the continued success of the group. During the year the group secured further projects across its core divisions and successfully achieved key operational milestones in its first Engineering, Procurement, Construction, and Installation (EPCI) contract secured during 2023. This project remains on track for completion in 2025, further strengthening the Group’s market position.
Investment remains a key driver of the group’s expansion strategy. In 2024, the group advanced the development of its patented survey technology, acquired a world-leading trenching vehicle, and secured its first vessel through a Joint Venture with a key global partner. Continued focus on investment increases the group’s capacity to deliver integrated solutions, offering their clients a complete package approach with onshore and offshore capability.
The group recognises that its workforce is integral to sustained success, the group continues to attract and retain high-calibre employees. During the review period, the group expanded and strengthened its workforce across onshore and offshore operations, management, and support functions. Given the highly competitive global talent market, the group remains committed to employee engagement and monitoring industry demand to maintain its position as an employer of choice.
Future developments
The 2025 forecasts indicate continued positive trading results, with revenue and profitability expected to maintain an upward trajectory. Ongoing investment in capital expenditure and operational platforms will further support the group’s growth strategy.
The group’s services are in increasing demand in all of the global offshore markets ensuring that the group is well positioned to continue to benefit from continued growth in the future.
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Group strategic report (continued)
Year ended 31 December 2024
The offshore sector represents various risks and uncertainties for contractors in the current market, the principal ones being credit, interest rate, foreign exchange and competition risks, which can influence the performance of the group’s offshore projects.
Credit risk
The group monitors its credit risk and considers that its policy of performing internal credit checks on potential new customers, setting appropriate credit limits, reviewing regularly and adjusting accordingly meets its objectives of managing its exposure.
For larger projects the group’s commercial team will negotiate to obtain contractual terms that minimise risk for the group.
Interest rate risk
Interest rate increases could adversely affect the group’s financial position, performance, and liquidity as its borrowings are linked to an index. Current interest rates are monitored by management and a prudent approach is taken to forecast anticipated future rates.
Foreign exchange risk
As a global provider, the group deals with transactions in multiple currencies. Adverse fluctuations in foreign exchange rates could affect the group’s financial performance and its cash flow. The group manages this risk through various strategies such as hedging planning and employing natural hedging techniques by aligning currency inflows and outflows.
Competition risk
Depending on the timing in the market cycle, the Company can experience strong competition in providing its core services. However, given current strong economic growth in all its industry target segments; oil & gas, offshore renewables as well as telecommunications, and with a continued focus on niche service provision and investment in bespoke equipment, the company believes it is well positioned to continue to be competitive in the future.
Health, safety, environment and quality (HSEQ)
The safety of people and protection of property, including the environmental impact of our operations as well as quality of service, continue to be the fundamentals of group policy. In 2024, the group successfully achieved ISO 45001:2018; ISO 14001:2015 and ISO 9001:2015 certification, a testament to the Group’s commitment to occupational health and safety, environmental and quality focus.
Credit risk
The group monitors its credit risk and considers that its policy of performing internal credit checks on potential new customers, setting appropriate credit limits, reviewing regularly and adjusting accordingly meets its objectives of managing its exposure.
For larger projects the group’s commercial team will negotiate to obtain contractual terms that minimise risk for the group.
Interest rate risk
Interest rate increases could adversely affect the group’s financial position, performance, and liquidity as its borrowings are linked to an index. Current interest rates are monitored by management and a prudent approach is taken to forecast anticipated future rates.
Foreign exchange risk
As a global provider, the group deals with transactions in multiple currencies. Adverse fluctuations in foreign exchange rates could affect the group’s financial performance and its cash flow. The group manages this risk through various strategies such as hedging planning and employing natural hedging techniques by aligning currency inflows and outflows.
Competition risk
Depending on the timing in the market cycle, the Company can experience strong competition in providing its core services. However, given current strong economic growth in all its industry target segments; oil & gas, offshore renewables as well as telecommunications, and with a continued focus on niche service provision and investment in bespoke equipment, the company believes it is well positioned to continue to be competitive in the future.
Health, safety, environment and quality (HSEQ)
The safety of people and protection of property, including the environmental impact of our operations as well as quality of service, continue to be the fundamentals of group policy. In 2024, the group successfully achieved ISO 45001:2018; ISO 14001:2015 and ISO 9001:2015 certification, a testament to the Group’s commitment to occupational health and safety, environmental and quality focus.
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Group strategic report (continued)
Year ended 31 December 2024
Section 172 of the Companies Act 2006 requires a director of the group to act in the way that he or she considers, in good faith, would most likely promote the success of the group for the benefit of its members as a whole. The Directors of the group recognise the importance of and the effect that the different groups of stakeholders have on the group and its success. As a result the Directors are careful to consider the effects of the group’s actions on different groups of stakeholders when they make decisions.
Enshore’s mission is to protect and install critical subsea infrastructure for a sustainable future. We believe we do, and will continue to, deliver our mission by being goal orientated; working collaboratively with all stakeholders and being as efficient as possible in everything we do, whilst maintaining integrity and treating all partners with respect.
Our People
The health, safety and wellbeing of our employees is one of the prime considerations in the way we operate, and we have training, processes and support packages to assist our employees in this regard. One of our business objectives is to be a great place to work. As part of this we also strive to operate as a high performance organisation, employing a culture of coaching and empowerment. Information on business performance and prospects are regularly cascaded through management meetings and bi-weekly communications.
Community & Environment
We take our environmental and social responsibilities seriously and, as such, have policies and procedures in place that are designed to minimise the negative impact on the environment.
Risk Management
Consideration of risk is integral to how Enshore operates. Using a combination of KPI’s and forecasting, the business is continually monitoring, assessing and evaluating measures that should be put in place to mitigate those risks. The business assesses each risk on its probability of occurrence and the impact on performance operationally, culturally and financially. This scoring is then used to prioritise risk mitigation activities.
Shareholders
As a board of directors, our intention is to behave responsibly and have an open and honest relationship with our shareholders, staff and other stakeholders, so they may benefit from the success of the group.
Going concern
The global inflationary pressure will continue to have a significant impact on all businesses and Enshore Subsea Limited is no exception. Given the group’s current cash balances, the directors have a reasonable expectation that the group has adequate resources to continue meeting its liabilities as they fall due for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements (further detail is given in note 3.3).
Enshore’s mission is to protect and install critical subsea infrastructure for a sustainable future. We believe we do, and will continue to, deliver our mission by being goal orientated; working collaboratively with all stakeholders and being as efficient as possible in everything we do, whilst maintaining integrity and treating all partners with respect.
Our People
The health, safety and wellbeing of our employees is one of the prime considerations in the way we operate, and we have training, processes and support packages to assist our employees in this regard. One of our business objectives is to be a great place to work. As part of this we also strive to operate as a high performance organisation, employing a culture of coaching and empowerment. Information on business performance and prospects are regularly cascaded through management meetings and bi-weekly communications.
Community & Environment
We take our environmental and social responsibilities seriously and, as such, have policies and procedures in place that are designed to minimise the negative impact on the environment.
Risk Management
Consideration of risk is integral to how Enshore operates. Using a combination of KPI’s and forecasting, the business is continually monitoring, assessing and evaluating measures that should be put in place to mitigate those risks. The business assesses each risk on its probability of occurrence and the impact on performance operationally, culturally and financially. This scoring is then used to prioritise risk mitigation activities.
Shareholders
As a board of directors, our intention is to behave responsibly and have an open and honest relationship with our shareholders, staff and other stakeholders, so they may benefit from the success of the group.
Going concern
The global inflationary pressure will continue to have a significant impact on all businesses and Enshore Subsea Limited is no exception. Given the group’s current cash balances, the directors have a reasonable expectation that the group has adequate resources to continue meeting its liabilities as they fall due for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements (further detail is given in note 3.3).
This report was approved by the board on 21 March 2025 and signed on its behalf by.
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Directors' report
Year ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The profit for the year, after taxation, amounted to £3,922,729 (2023: £2,792,262).
No dividend was paid in the year (2023: £nil). The directors do not recommend the payment of a final dividend.
The directors who served during the year were:
Future developments, which would otherwise be disclosed in the directors' report, is instead disclosed in the
strategic report, as permitted by Section 414C(11) of the Companies Act 2006.
strategic report, as permitted by Section 414C(11) of the Companies Act 2006.
Streamlined Energy and Carbon Reporting
Methodology / Scopes
This report was produced in accordance with the GHG Reporting Protocol methodology and includes all the relevant scopes and their categories that Enshore Subsea has operational control over:
Scope 1: Direct emissions
This report was produced in accordance with the GHG Reporting Protocol methodology and includes all the relevant scopes and their categories that Enshore Subsea has operational control over:
Scope 1: Direct emissions
Scope 2: Indirect emissions linked to energy consumption
Scope 3: All other indirect emissions
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Directors' report (continued)
Year ended 31 December 2024
The Board of Directors confirms that it has not been practical to obtain full and accurate data for Scope 1 and Scope 3 emissions, including the ratio for Scope 2, for the reporting period ending 31 December 2023.
There were assumptions made surrounding the amount of electricity, gas and fuel used when no direct consumption was available. Some energy consumptions were based on average prices and were converted to the relevant units (L, mt, etc.) before being converted to kWh.
The Board of Directors confirms that it has not been practical to obtain full and accurate data for the reporting period ending 31 December 2023.
Energy efficiency action
In 2024, Enshore Subsea prepared its first Streamlined Energy and Carbon Report (SECR), marking an important step in our commitment to energy efficiency and emissions reduction. As part of our efforts, we have taken initial steps to encourage sustainable practices within the company. Key actions implemented during the reporting period include:
• Electric Vehicle Incentive Scheme: In Q3 2024, Enshore Subsea partnered with Octopus Energy to launch a tax-efficient salary sacrifice scheme, encouraging employees to transition to electric vehicles (EVs). This initiative aims to lower the company’s Scope 3 emissions related to employee commuting over time.
• Development of an Emissions Reduction Strategy: Enshore Subsea has engaged with Greenly to develop a comprehensive emissions reduction strategy for 2025. This will set clear targets for reducing our energy consumption and improving operational efficiency.
• Initial Energy Use Assessment: A preliminary review of fuel consumption and energy use patterns was undertaken to establish a baseline for future reduction initiatives.
These actions form the foundation of Enshore Subsea’s long-term energy efficiency plan, with further measures to be introduced in 2025 and beyond as part of a structured sustainability roadmap.
There have been no significant events affecting the group since the year end.
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Directors' report (continued)
Year ended 31 December 2024
The auditor, UNW LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 21 March 2025 and signed on its behalf.
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Directors' responsibilities statement
Year ended 31 December 2024
The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Independent auditor's report to the members of Enshore Subsea Limited
We have audited the financial statements of Enshore Subsea Limited ('the parent company') and its subsidiaries ('the group') for the year ended 31 December 2024, which comprise the consolidated statement of comprehensive income, the consolidated balance sheet, the company balance sheet, the consolidated statement of changes in equity, the company 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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 group 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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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Independent auditor's report to the members of Enshore Subsea Limited
(continued)
(continued)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the group 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 group strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group strategic report or the directors' report.
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Independent auditor's report to the members of Enshore Subsea Limited
(continued)
(continued)
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 group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience and through discussions with the directors and other management (as required by Auditing Standards) and from inspection of the company's legal correspondence and we discussed with the directors and other management the policies and procedures in place regarding compliance with the laws and regulations. We communicated identified laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit.
Firstly, the group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; health and safety, employment law, data protection, environmental law and certain aspects of company legislation, recognising the nature of the company's activities. Auditing Standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance material to the financial statements.
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Independent auditor's report to the members of Enshore Subsea Limited
(continued)
(continued)
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.
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.
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.
for and on behalf of UNW LLP (Statutory Auditor)
Chartered Accountants
Newcastle upon Tyne
11
Consolidated statement of comprehensive income
Year ended 31 December 2024
12
Consolidated balance sheet
At 31 December 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 March 2025.
The notes on pages 18 to 38 form part of these financial statements.
13
Company balance sheet
At 31 December 2024
14
Company balance sheet (continued)
At 31 December 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 March 2025 .
The notes on pages 18 to 38 form part of these financial statements.
15
Consolidated statement of changes in equity
Year ended 31 December 2024
16
Company statement of changes in equity
Year ended 31 December 2024
17
Notes to the financial statements
Year ended 31 December 2024
Enshore Subsea Limited ('the company') is engaged in providing subsea engineering solutions, they provide seabed intervention services to the oil and gas, telecoms and offshore power markets globally.
The company is a private company limited by shares, incorporated in the United Kingdom and registered in England and Wales. The address of the registered office is given in the company information page of this annual report.
The company is a private company limited by shares, incorporated in the United Kingdom and registered in England and Wales. The address of the registered office is given in the company information page of this annual report.
The financial statements have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland’ (‘FRS 102’), and the Companies Act 2006.
3.Accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented, unless otherwise stated.
These financial statements comprise the consolidated (group) financial statements and the company’s separate financial statements.
These financial statements are prepared on a going concern basis and under the historical cost convention. They are presented in pounds sterling and rounded to the nearest pound.
FRS 102 allows a qualifying entity certain disclosure exemptions. The company meets the definition of a qualifying entity in respect of its separate (non-group) financial statements and has taken advantage of the exemptions relating to financial instruments, presentation of cash flow statement and remuneration of key management personnel.
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4.
These financial statements are prepared on a going concern basis and under the historical cost convention. They are presented in pounds sterling and rounded to the nearest pound.
FRS 102 allows a qualifying entity certain disclosure exemptions. The company meets the definition of a qualifying entity in respect of its separate (non-group) financial statements and has taken advantage of the exemptions relating to financial instruments, presentation of cash flow statement and remuneration of key management personnel.
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4.
The group financial statement consolidate the financial statements of the company and its subsidiary undertakings as if they formed a single entity. Intercompany transactions and balances are therefore eliminated in full.
18
Notes to the financial statements
Year ended 31 December 2024
3.Accounting policies (continued)
The company meets its working capital requirements through its cash reserves, operating cash flows and a long-term loan from a fellow group company, Al Gihaz Energy Holding Co.
Having regard for the company’s forecasts and likely funding requirements, Al Gihaz Contracting Co which is the parent company has confirmed that it will continue to provide such financial and other support as the company may require to continue meeting its liabilities as they fall due in the normal course of business for at least the next twelve months following approval of these financial statements. In addition, the directors have received confirmation Al Gihaz Energy Holding Co will not seek repayment of funds provided until such a time as the company is reasonably able to do so. As with any company placing reliance on the availability of such financial support the directors acknowledge that there is no certainty the support will continue to be available, however, as at the date of approval of these financial statements they have no reason to believe that the necessary support will not continue to be available.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to prepare the financial statements on a going concern basis.
Having regard for the company’s forecasts and likely funding requirements, Al Gihaz Contracting Co which is the parent company has confirmed that it will continue to provide such financial and other support as the company may require to continue meeting its liabilities as they fall due in the normal course of business for at least the next twelve months following approval of these financial statements. In addition, the directors have received confirmation Al Gihaz Energy Holding Co will not seek repayment of funds provided until such a time as the company is reasonably able to do so. As with any company placing reliance on the availability of such financial support the directors acknowledge that there is no certainty the support will continue to be available, however, as at the date of approval of these financial statements they have no reason to believe that the necessary support will not continue to be available.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to prepare the financial statements on a going concern basis.
Revenue comprises the fair value of the consideration received or receivable in respect of services supplied during the year, net of discounts and excluding Value Added Tax.
In respect of long term contracts and contracts for on-going services, revenue represents the value of work done in the year, including estimates of amounts not invoiced. Where a contract has only been partially completed at the balance sheet date, revenue represents the fair value of the service provided to date based on the costs incurred at the balance sheet date. Where services have been provided, and the customer has not yet been invoiced, the amounts are recorded as accrued income and included as part of debtors.
Where contracts are not on a cost-plus basis, revenue is recognised as the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.
Where there is no long-term contract in place, services are performed on a purchase order basis. In this instance, revenue is recognised at the point where services are provided.
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately.
Interest income
Interest income is recognised on an accruals basis, using the effective interest method.
19
Notes to the financial statements
Year ended 31 December 2024
3.Accounting policies (continued)
The company’s presentation currency is the pound sterling. The functional currency is the US dollar, as this is the currency of the primary economic environment in which it operates. The reason for the difference is that the company is located and incorporated in the United Kingdom, and chooses to present the financial statements in its local currency.
Transactions in the functional currency and other foreign currencies are translated into sterling using periodic averages that approximate to the spot exchange rates at the dates of the transactions. At each period end, foreign currency monetary assets and liabilities are translated using the closing rate. Foreign exchange gains and losses are recognised in the profit and loss account.
Transactions in the functional currency and other foreign currencies are translated into sterling using periodic averages that approximate to the spot exchange rates at the dates of the transactions. At each period end, foreign currency monetary assets and liabilities are translated using the closing rate. Foreign exchange gains and losses are recognised in the profit and loss account.
Short-term benefits
Short-term benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense in the period in which the service is received.
Defined contribution pension plan
The company operates a defined contribution pension plan for its employees. Contributions are recognised as an expense when they fall due. Amounts due but not yet paid are included within creditors on the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Short-term benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense in the period in which the service is received.
Defined contribution pension plan
The company operates a defined contribution pension plan for its employees. Contributions are recognised as an expense when they fall due. Amounts due but not yet paid are included within creditors on the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
20
Notes to the financial statements
Year ended 31 December 2024
3.Accounting policies (continued)
Current tax is the amount of income tax payable in respect of the taxable profit for the current or past reporting periods. It is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods, and arises from ‘timing differences’ (where transactions or events are included in the financial statements in periods different from those in which they are assessed for tax). Deferred tax is recognised in respect of all timing differences, except that unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of the timing differences.
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is provided on all intangible assets so as to write off the cost of an asset over its estimated useful life as follows:
Computer software - 0 - 3 years straight line
Intellectual property - 5 years straight line
Development expenditure - 3 years straight line
Development expenditure includes assets under construction, which are not amortised until they are available for use.
Asset residual values and useful lives are reviewed at the end of each reporting period, and adjusted if appropriate. The effect of any change is accounted for prospectively.
Computer software - 0 - 3 years straight line
Intellectual property - 5 years straight line
Development expenditure - 3 years straight line
Development expenditure includes assets under construction, which are not amortised until they are available for use.
Asset residual values and useful lives are reviewed at the end of each reporting period, and adjusted if appropriate. The effect of any change is accounted for prospectively.
21
Notes to the financial statements
Year ended 31 December 2024
3.Accounting policies (continued)
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price plus any further costs directly attributable to bringing the asset to its working condition for its intended use.
Depreciation is provided on all tangible fixed assets, other than assets under construction, at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their estimated useful lives as follows:
Depreciation is provided on all tangible fixed assets, other than assets under construction, at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their estimated useful lives as follows:
Asset residual values and useful lives are reviewed at the end of each reporting period, and adjusted if appropriate. The effect of any change is accounted for prospectively.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
22
Notes to the financial statements
Year ended 31 December 2024
3.Accounting policies (continued)
An entity is treated as a joint venture where the group is a party to a contractual agreement with one or more parties from outside the group to undertake an economic activity that is subject to joint control.
An entity is treated as an associated undertaking where the group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The consolidated statement of comprehensive income includes the group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the group. In the consolidated balance sheet, the interests in associated undertakings are shown as the group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy
An entity is treated as an associated undertaking where the group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The consolidated statement of comprehensive income includes the group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the group. In the consolidated balance sheet, the interests in associated undertakings are shown as the group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy
The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, cash and bank balances, bank loans and loans to or from related parties, including fellow group companies.
Debt instruments are measured initially at the transaction price, and subsequently at amortised cost using the effective interest method.
At the end of each reporting period, financial assets are assessed for impairment, and their carrying
value reduced if necessary. Any impairment charge is recognised in the profit and loss account.
Debt instruments are measured initially at the transaction price, and subsequently at amortised cost using the effective interest method.
At the end of each reporting period, financial assets are assessed for impairment, and their carrying
value reduced if necessary. Any impairment charge is recognised in the profit and loss account.
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount of the obligation can be estimated reliably.
Provisions are charged as an expense to the profit and loss account in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet
Provisions are charged as an expense to the profit and loss account in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet
23
Notes to the financial statements
Year ended 31 December 2024
Significant judgments in applying the entity's accounting policies
The directors do not consider there were any significant areas of judgment that were required in applying the company’s accounting policies as set out above.
Key sources of estimation uncertainty
Revenue recognition - long term contract accounting - the amount of revenue and profit recognised in relation to contracts which are part complete at the balance sheet date is dependent on estimates of the future costs that will be required to complete the contract and hence the stage of completion and overall profitability of the contract. Estimates of further costs (and potential revenue variations) are continually evaluated and updated based on managements detailed knowledge of project status and contractual requirements.
Useful lives of fixed assets - the annual depreciation and amortisation charges for tangible fixed assets is sensitive to changes in the estimated useful lives and the residual values of the assets, which are re-assessed annually and amended to reflect current estimates. There have been no changes in the estimation bases during the current reporting period. See note 14 for the carrying amount of tangible fixed assets and note 3.11 for the estimated useful lives of each class of asset.
Other sources of estimation uncertainty
Other estimates included within these financial statements include asset impairments, such as provisions against debtors. None of the other estimates made in the preparation of these financial statements are considered to carry significant estimation uncertainty, nor to bear significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
The whole of the revenue is attributable to the provision of subsea engineering services.
Analysis of turnover by country of destination:
24
Notes to the financial statements
Year ended 31 December 2024
25
Notes to the financial statements
Year ended 31 December 2024
26
Notes to the financial statements
Year ended 31 December 2024
27
Notes to the financial statements
Year ended 31 December 2024
12.Taxation (continued)
There are no factors which are expected to significantly affect future tax charges.
28
Notes to the financial statements
Year ended 31 December 2024
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29
Notes to the financial statements
Year ended 31 December 2024
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30
Notes to the financial statements
Year ended 31 December 2024
14.Tangible fixed assets (continued)
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31
Notes to the financial statements
Year ended 31 December 2024
14.Tangible fixed assets (continued)
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32
Notes to the financial statements
Year ended 31 December 2024
33
Notes to the financial statements
Year ended 31 December 2024
34
Notes to the financial statements
Year ended 31 December 2024
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35
Notes to the financial statements
Year ended 31 December 2024
20.Deferred taxation (continued)
Revaluation reserve
Profit and loss account
36
Notes to the financial statements
Year ended 31 December 2024
The group operates two defined contribution pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the group to the funds and amounted to £461,885 (2023: £300,807). £84,814 (2023: £49,667) was payable to the funds at the balance sheet date and is included within other creditors.
Group and Company
In the year, the company made sales to Al Gihaz Contracting Co. which is the majority shareholder and of the company. Total sales in the year amounted to £690,649 (2023: £24,880,407). At the year end there is a balance of £25,968,656 (2023: £23,588,550) due from the parent, which is included within amounts owed by group undertakings. At year end there is a balance of £nil (2023: £2,568,135) due to the parent, which is included within amounts owed to group undertakings. There is a balance of £225,639 (2023: £1,389,298) due to Enshore Subsea Limited within accrued income.
The company also has a debtor with Calderdale Wind Farm Ltd of £13 (2023: £13).
The company also has a loan with Al Gihaz Energy Holding Co., which was transferred from Al Gihaz Contracting Co. during the year. The total balance due is £24,220,717 (2023: 20,573,985), as disclosed in note 19. The interest expense in the year was £2,028,567 (2023: £1,109,381), with a balance of £3,728,991 (2023: £1,263,013) payable at year end.
During the year Algihaz Contracting Co. settled creditors on behalf of Enshore Subsea. The amounts owed to Al Gihaz Contracting Co. relating to this arrangement at year end are £794,779 (2023: £103,316).
Similarly, Algihaz Contracting Co. Bahrain, a group company owned by the ultimate parent company, Al Gihaz Holding, settled creditors on behalf of Enshore Subsea. The amounts owed to Al Gihaz Contracting Co. Bahrain relating to this arrangement at year end are £nil (2023: £785,813).
In the year, the company made sales to Al Gihaz Contracting Co. which is the majority shareholder and of the company. Total sales in the year amounted to £690,649 (2023: £24,880,407). At the year end there is a balance of £25,968,656 (2023: £23,588,550) due from the parent, which is included within amounts owed by group undertakings. At year end there is a balance of £nil (2023: £2,568,135) due to the parent, which is included within amounts owed to group undertakings. There is a balance of £225,639 (2023: £1,389,298) due to Enshore Subsea Limited within accrued income.
The company also has a debtor with Calderdale Wind Farm Ltd of £13 (2023: £13).
The company also has a loan with Al Gihaz Energy Holding Co., which was transferred from Al Gihaz Contracting Co. during the year. The total balance due is £24,220,717 (2023: 20,573,985), as disclosed in note 19. The interest expense in the year was £2,028,567 (2023: £1,109,381), with a balance of £3,728,991 (2023: £1,263,013) payable at year end.
During the year Algihaz Contracting Co. settled creditors on behalf of Enshore Subsea. The amounts owed to Al Gihaz Contracting Co. relating to this arrangement at year end are £794,779 (2023: £103,316).
Similarly, Algihaz Contracting Co. Bahrain, a group company owned by the ultimate parent company, Al Gihaz Holding, settled creditors on behalf of Enshore Subsea. The amounts owed to Al Gihaz Contracting Co. Bahrain relating to this arrangement at year end are £nil (2023: £785,813).
During the year, the settled creditor amounts on behalf of Enshore Subsea by Al Gihaz Contracting Co. and Al Gihaz Contracting Co. Bahrain as above were transferred to Algihaz Energy Holding Co. The amounts owed to Algihaz Energy Holding Co. relating to this arrangement at year end are £240,387 (2023: £nil).
In the year, the company charged a management fee of £231,211 to Combined Marine Offshore Service NV, with a balance of £231,211 debtor at year end.
The directors consider the directors of the company to be key management personnel. The directors' remuneration is disclosed in note 9.
The company has taken advantage of the exemption conferred by FRS102 in not disclosing the transactions between wholly owned group companies included in these consolidated financial statements.
37
Notes to the financial statements
Year ended 31 December 2024
26.Other financial commitments
The company has enterred into a performance guarantee, issued by HSBC Bank PLC, in relation to customer contract, in which the bank undertakes to pay amount, not exceeding in aggregate $1,016,815.70 USD (2023: nil), to the customer should the company not fufil their obligations under the contract terms.
The immediate parent undertaking is Al Gihaz Contracting Co. The registered office address is Al Gihaz Holding Building, 435 Al Orouba Road, PO Box 7451, Riyadh 11462.
The smallest group in which the results of the company are consolidated is that headed by Al Gihaz Contracting Co. The largest group in which the results of the company are consolidated is headed by Al Gihaz Holding, a company incorporated in Saudi Arabia. The consolidated financial statements of Al Gihaz Contracting Co. and Al Gihaz Holding are available to the public and may be obtained from their registered addresses 435 Al Orouba Road, PO Box 7451, Riyadh 11462 or https://mci.gov.sa/en /eservices/Pages/ServiceDetails .aspx?sID =13.
The directors do not consider there to be an ultimate controlling party.
The smallest group in which the results of the company are consolidated is that headed by Al Gihaz Contracting Co. The largest group in which the results of the company are consolidated is headed by Al Gihaz Holding, a company incorporated in Saudi Arabia. The consolidated financial statements of Al Gihaz Contracting Co. and Al Gihaz Holding are available to the public and may be obtained from their registered addresses 435 Al Orouba Road, PO Box 7451, Riyadh 11462 or https://mci.gov.sa/en /eservices/Pages/ServiceDetails .aspx?sID =13.
The directors do not consider there to be an ultimate controlling party.
38