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

During the financial year, Wight Shipyard Company Limited (“WSC” or the “company”) continued its integration into the OCEA Group. The company demonstrated notable improvements in performance, generating a gross profit of £0.9m (2023: £3.8m gross loss). However, challenges remain as legacy projects impacted profitability and cash flow. Management remains focused on strategic initiatives to drive sustainable growth and operational efficiencies.

The company made significant strides in revenue growth, with turnover totalling £19.5m (2023: £10.0m), reflecting the more favourable newbuild commercial contracts signed in late 2023 and 2024. Despite these advancements, legacy projects with cost overruns and contractual obligations, continued to weigh on overall financial performance. The company therefore generated a loss for the financial year of £2.4m (2023: £5.9m loss). Whilst this demonstrates an improving horizon of cost management and operational performance, these areas remain a key focus for the business.

In April 2025, the company signed new commercial contracts for 4 pilot boats and 1 hunt-class vessel to be built, resulting in a solid pipeline of at least 12 months’ secured revenue. The company will deliver its first fully electric vessel in June 2025 keeping it at the forefront of innovation and opening up new market opportunities.

The company continues to leverage its position within the OCEA Group, capitalising on the group’s 38-years’ experience of profitable shipbuilding, particularly in respect of production, scheduling, project management and financial management.

Shipbuilding is susceptible and very sensitive to fluctuations in the uncertain domestic and global shipping markets, however the company’s exposure to this risk is much reduced by being part of a multi-national shipbuilding group, the OCEA Group. For example, the company benefits from allocating spillover work between group entities to best manage capacities and workloads and optimise fixed costs recovery.

Brexit continues to provide risk and opportunity, requiring the company to adapt its operations and market strategies accordingly. OCEA Group’s established customer base offers alternative avenues for British shipbuilding exports from WSC, as well as an expanded supplier network for the procurement of materials.

In respect of IR35 legislation, the company continues to reduce its reliance on contractors and is increasing workforce resilience and stability. In particular, the company leverages its apprenticeship scheme with 15 apprentices currently employed: a key investment in the future and in careers on the Isle of Wight. Around 70% of WSC’s apprentices succeed and stay on at the shipyard after their apprenticeship finishes.

Other risks and uncertainties include:

Price risk

The company retains some exposure to fluctuations in the cost of bought-in-goods and services due to the long-term contract nature of a substantial portion of its turnover.  This risk is reduced through securing pricing for bought-in-goods and services at the start of a project. 

Exchange rate risk

The company has some exposure to changes in foreign currency exchange rates as some customer contracts are non-sterling and, whilst labour is UK-based, certain bought-in-goods and services are non-sterling purchases.  The company will continue to limit its exposure through obtaining foreign exchange rates, where it can, that cover contractual periods or entering into FX hedging arrangements where necessary.

Credit risk

The company’s credit risk relates primarily to its trade receivables. The company directly contracts with its customers who range from blue chip companies operating government contracts to small and medium sized entities in the commercial sector. The credit terms granted are proportional to risk profile and larger contracts are invoiced on a stage payment basis.

The current cash position and short to medium cash flow forecasts are prepared and reviewed on a weekly basis to mitigate cash flow risk and predict any funding requirements, which can be supported by the group.

The ongoing financial performance and financial position of the company are managed through a series of key performance indicators which focus on project performance, turnover, gross profit, EBITDA and cash. All of these measures are reviewed by the senior management team at least once per quarter.

Turnover for 2024 increased substantially to £19.5m (2023: £10.0m) and the company made a gross profit of £0.9m (2023: £3.8m gross loss). The company's business plan forecasts this increased level of turnover for 2025 and subsequent years, as new orders are received on the back of repeat business and new strategic relationships.

The company's 2024 financial results demonstrate significant improvement from 2023, with further improvements from revenue diversification, operational efficiencies, productivity and process improvements, forecast to improve profitability for 2025 and beyond.

On behalf of the board

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

The principal activity of the company continued to be that of the building, refitting and repairing ships and floating structures.

The company has no permanent establishments outside the UK, although occasionally makes use of its parent company facilities in France.

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

The company undertakes development work in relation to new technologies during the construction of its vessels for customers. This includes overcoming feasibility issues and studies on alternative manufacturing methods.

The auditor, Alliott Wingham Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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

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

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

• select suitable accounting policies and then apply them consistently;

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

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

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

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

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

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

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended;

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

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

Basis for opinion

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

Material uncertainty related 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.

We draw attention to the profit and loss account within these financial statements, which indicates that the company made a significant loss before tax for the year of £2,907,074 (2023: £7,206,363). It is noted that the company did achieve a gross profit of £918,913 during the year (2023: gross loss of £3,845,084).

We also draw attention to the fact a deferred tax asset has been recognised in respect of the tax losses being carried forward to offset against future profits. Following discussions with the directors and reviewing their business plan for the next 3-5 years, we believe that should the company achieve its intended plan, the deferred tax asset will be realised.

These events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our opinion is not modified in respect of this matter.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. Our audit procedures were designed at Company and significant component levels to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involved deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, financial reporting legislation, the Companies Act 2006 and UK tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and review of correspondence with external legal advisors.

There are inherent limitations in the audit procedures described above and, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates. We addressed the risk of management override of internal controls through testing journals, in particular any entries posted with unusual account combinations or posted by senior management. We evaluated whether there was evidence of bias by the Directors in accounting estimates that represented a risk of material misstatement due to fraud. We challenged assumptions and judgements made by management in their significant accounting estimates.

A further description of our responsibilities is available 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.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Wight Shipyard Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kintyre House, 70 High Street, Fareham, Hampshire, United Kingdom, PO16 7BB.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

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

Wight Shipyard Company Limited is a wholly owned subsidiary of OCEA Holding S.A. and the results of Wight Shipyard Company Limited are included in the consolidated financial statements of the OCEA Group which are available from Les Sables d'Olonne (85100), Quai de la Cabaude, France.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The shareholder demonstrated their engagement to invest in the company through capital increases so that total net assets at the reporting date are £50,890 (2023: £886,954).

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Management have determined that with the measures being put into place following the financial loss in this period and the previous years, no other material uncertainties exist that would need to be disclosed within the financial statements.

Revenue from long term new build contracts is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business of boat building, refit and repair, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from long term new build contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Investment income is recognised when it is probable that the economic benefits will flow to the company and the amount can be measured reliably.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

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

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

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

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

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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

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

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Cost is calculated using first in first out method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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

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

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

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

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

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, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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.

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

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

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

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

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

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

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

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

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

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

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

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

Development costs require judgement in determining whether the specific costs fall under the group's policy on capitalisation. A key area of judgement is around the technical, financial and commercial feasibility of the development costs incurred to ensure that future economic benefits are achievable for the company as a result of undertaking these development costs.

Development costs capitalised at 31 December 2024 totalled £4,917,743 (2023: £2,951,000).

Establishing the value of stock to be carried forward requires judgement of the net realisable value to ensure stock is valued at the lower of this and its original cost.

Calculation of ongoing project work at the year end relies upon judgement as to when the profit will be realised, based on the stage of completion of each project.

Stock at 31 December 2024 was valued at £55,837 (2023: £Nil). Work in progress at 31 December 2024 totalled £454,160 (2023: £599,997).

Calculation of the amount of revenue to be recognised each year relies upon judgement based on the stage of completion of each project.

Accrued income at 31 December 2024 is £387,104 (2023: £1,961,919). Deferred income at 31 December 2024 is £4,651,689 (2023: £2,410,246).

A loan has been provided to a fellow group company. Judgement is needed on whether the fellow group company can repay this loan to the company.

The loan balance outstanding at 31 December 2024 was £281,022 (2023: £194,558).

The investment in the joint venture is required to be assessed for impairment annually. This requires an estimation of the valuation of the company's share in the joint venture at each reporting date. The joint ventures reporting date is not co-terminus with Wight Shipyard Company Limited meaning information to establish a valuation is not as readily available due to reliance on interim figures which may lack full accounting adjustments.

The joint venture valuation at 31 December 2024 remains at cost of £502,500 (2023: £502,500).

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.

Determining whether there are indicators of impairment of the company's tangible assets requires judgement. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.

Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

The net book value of tangible fixed assets at 31 December 2024 was £3,667,334 (2023: £3,815,791).

Provisions for onerous contracts are calculated by estimating the costs of certain projects based on the works still to be carried out under obligation of the contract and offset against the benefits due to be derived from those contracts.

There are no onerous contracts as of 31 December 2024 and 31 December 2023.

Bad debt provision is estimated based on an assessment of the company's ability to recover debts from it's trade customers, having taken into account the individual customers circumstances and previous history in terms of payment.

The bad debt provision at 31 December 2024 is £42,249 (2023: £84,763).

An estimate of how long the economic benefits arising from the development costs incurred will last is needed in order to determine the amortisation rate. The useful life varies from project to project and depends on a number of factors, ranging from potential orders for future vessels in that class through to obsolescence due to technology advancements.. Where development projects can be used across multiple product ranges, this also varies the useful life of those costs.

The net book value of development costs at 31 December 2024 is £4,789,422 (2023: £2,951,000).

In order to determine the recoverability of the losses incurred, for which a deferred tax asset has been recognised, it requires a forecast of profitability over the next 3-5 years. With each year into the future, comes increased levels of estimation and uncertainty. Historical results are also not an indicator of future performance.

The deferred tax asset in relation to unutilised tax losses at 31 December 2024 is £2,549,369 (2023: £2,120,790).

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

Their aggregate remuneration comprised:

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

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

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax asset set out above is only expected to partially reverse within 12 months and relates to unpaid loan interest and the utilisation of tax losses against future expected profits of the same period. Likewise the deferred tax liability set out above is only expected to partially reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

The directors believe that the deferred tax asset in respect of tax losses will be utilised in the next 3 -5 years. Thus, they believe it remains appropriate to recognise a deferred tax asset.

The company received Government grant funding in 2022 of £2,271,800 as part of the levelling up fund in relation to the acquisition of its new marine hoist and associated shipyard improvement works. The grant is being released to profit and loss over the useful lives of the assets it relates to. The amount remaining to be released to profit and loss is £1,641,375.

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.

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:

The remuneration of key management personnel is as follows.

Key management personnel are deemed to be the directors of the company and its CFO, as they have authority and responsibility for planning, directing and controlling the activities of the entity.

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

Loans to the value of £17,163,814 have been provided by the parent company. £9,342,211 of the loan balance has been repaid in exchange for shares issued up to the reporting date, including £5,342,211 during this year. A further £1,600,000 has also been repaid in exchange for shares which were in the process of being issued at the reporting date. Interest of £201,317 had accrued on this loan at the reporting date. Therefore, the total loan balance due at the reporting date is £6,743,218 (2023: £8,141,901). There is currently no intention to recall this loan.

The parent company has also charged management fees to Wight Shipyard Company Limited during the year. The amount owing at 31 December 2024 in relation to these management charges was £36,922 (2023: £Nil).

£4,171,495 (2023: £Nil) was owed to OCEA S.A., a fellow group company, in relation labour and materials for work done on behalf of Wight Shipyard Company Limited. The purchases made by Wight Shipyard Company Limited in the year for this work totalled £5,434,197.

The following amounts were outstanding at the reporting end date:

The company is owed £281,022 (2023: £194,558) from OCEA Shipbuilding (UK) Limited, a fellow group company. There are no concerns on recoverability of this balance.

The parent company is OCEA Holding S.A, a company registered in France. Their registered office is Les Sables d'Olonne (85100), Quai de la Cabaude.

OCEA Holding S.A. is part of the OCEA Group, of which Mr R P Joassard has ultimate control.

Wight Shipyard Company Limited results will be consolidated into the OCEA Group's accounts.

The £1,398,683 under acquisitions and disposals is £1,600,000 of loan which has been capitalised during the year, less rolled up interest charged of £201,317.