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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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COMPANY INFORMATION
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CONTENTS
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STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present the financial statements of Rotech Holdings Limited.
The principal activity of Rotech Holdings Limited, the parent company, and its subsidiaries (the Group), is the research, development, manufacturing, and provision of specialised subsea excavation services for the global offshore energy industries.
Rotech Holdings Limited acts as the central strategic, R&D, and manufacturing hub for the Group, providing a vertically integrated service model.
The Integrated Business Model:
∙R&D and Manufacturing (Rotech Holdings/Engineering): Conducts research and development into proprietary subsea excavation products to optimise them for market needs, and manufactures this equipment at its facilities in Aberdeen, Scotland.
∙Service Delivery (Rotech Subsea): Deploys the patented, manufactured equipment to clients globally, generating the majority of the Group's turnover.
Our core offering is thus founded on the creation of proprietary technology and its application to precision excavation, essential for enabling the installation, maintenance, and decommissioning of critical infrastructure.
Strategic Pillars:
∙Leading the Energy Transition: Prioritise investment and service delivery to support the rapid growth of the offshore renewable sector.
∙Integrated Asset-Led Growth: The Group continually invests in the expansion of its patented fleet, manufactured internally by Rotech Engineering Limited, driving capacity and technological differentiation for the entire Group.
∙Global Penetration: Expand the Group’s service presence in high-growth international markets. This model successfully targets international contracts, with 87.7% of consolidated turnover generated outside the UK.
The Board has assessed the principal risks that could affect the Group’s future development:
∙Market Concentration Risk: The high concentration of consolidated revenue in the offshore wind sector (81%) exposes the Group to risks from regulatory and investment policy changes. This is mitigated by pursuing contracts in diversified sectors and through continued geographical expansion, while leveraging core technology for counter-cyclical decommissioning and maintenance services.
∙Vertical Integration / Manufacturing Risk: The reliance on internal manufacturing (Rotech Engineering Limited) for the proprietary fleet introduces risk related to production capacity, rising input costs, and skill shortages in specialised manufacturing. This is mitigated by rigorous planning and strategic investment in Rotech Engineering's manufacturing capacity in Aberdeen.
∙Geopolitical Risk: Geopolitical tensions have the potential to disrupt international activity. However, the Group is able to mitigate against localised uncertainties and regulatory hurdles due to the inherent mobility of the service fleet (Rotech Subsea) and its operational capability to re-deploy assets across multiple global geographies as required.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Performance Summary
The financial year 2024 represented a period of exceptional consolidated growth and successful strategic execution, validating the Group’s integrated, asset-led investment strategy.
Geographical Analysis
The Group's strong performance is underpinned by the operational success of Rotech Subsea across international markets. A total of 87.7% of consolidated turnover was generated outside the UK, demonstrating both the global demand for our specialized services and the successful execution of our global penetration strategy. Overseas growth was particularly pronounced, with turnover in Asia increasing by 74% and Europe by 31%. Analysis of Financial Performance Consolidated turnover increased by an impressive 62%. This significant uplift is seen by the Directors as a direct validation that the continued investment in the proprietary fleet, manufactured by Rotech Engineering, is successfully capturing market share and meeting rising international demand. Segmental Review The Group’s focus on the offshore energy industries yielded the following consolidated revenue split:
∙Offshore Wind: Maintained its dominant position, accounting for 81% of total turnover, reinforcing the Group's alignment with the global energy transition.
∙Energy Transition, Power and Utilities: Contributed the remaining 19%, encompassing services related to specialised seabed preparation for inter-connector cables, power infrastructure, and other energy transition projects.
Position and Investment
The vertical integration of the Group ensures that capital investment is tightly aligned with operational deployment.
Fleet Investment
As the manufacturing and R&D hub, Rotech Holdings Limited committed £3.00m (£2.40m in 2023) to the construction of new equipment through Rotech Engineering Limited. This brings the total cost of the Group’s subsea excavation fleet to £14,869,965. This investment is central to the Group’s strategy, as it ensures the fleet has the necessary capacity and technological capability to win large-scale, international contracts. Competitive Advantage The Group’s competitive differentiation is primarily derived from its strong portfolio of international patents covering the subsea excavation equipment, which is developed and manufactured internally. This intellectual property barrier provides a significant advantage in terms of unmatched efficiency and operational capability in the market.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors are highly optimistic following the exceptional consolidated performance of 2024. The significant investment in proprietary equipment, driven by Rotech Engineering, is validated by the 62% turnover growth, and market fundamentals, particularly in offshore wind, remain strong. The focus for 2025 and beyond will be to expand the size and breadth of the subsea excavation fleet and optimise its utilisation, while continuing to penetrate high-growth International markets to maintain a high-growth trajectory.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The profit for the year, after taxation, amounted to £1,766,207 (2023 - £161,413).
Dividends of £1,350,000 were issued in the year (2023 - £Nil).
The directors who served during the year were:
The auditor, AAB Audit & Accountancy Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 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 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 for the company's financial statements and then apply them consistently;
∙make judgements 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 company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROTECH HOLDINGS LIMITED
We have audited the financial statements of Rotech Holdings Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROTECH HOLDINGS LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROTECH HOLDINGS LIMITED (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 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 obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and Taxation legislation. We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:
∙Management override of controls to manipulate the company’s key performance indicators to meet targets;
∙Timing and completeness of revenue recognition; and
∙Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading.
Our audit procedures to respond to these risks included:
∙Testing of journal entries and other adjustments for appropriateness;
∙Reviewing judgements made by management in their calculation of accounting estimates for potential management bias;
∙Enquiries of management about litigation and claims and inspection of relevant correspondence;
∙Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations; and
∙Performing a disclosure checklist on the financial statements to ensure Companies Act 2006 requirements are satisfied.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROTECH HOLDINGS LIMITED (CONTINUED)
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
Statutory Auditor
Kingshill View
Prime Four Business Park
Kingswells
AB15 8PU
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 23 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Rotech Holdings Limited is a private limited company incorporated in Scotland. The registered office is Rotech House, Whitemyres Avenue, Mastrick Industrial Estate, Aberdeen, AB16 6HQ.
The principal activity of the company during the year was a holding company for the groups trading subsidiaries.
2.Accounting policies
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months.
This assessment is underpinned by projected profitable post year end trading and cash generation by the wider Rotech International group along with the continued support of the group's loan note holders which has been provided. This projection is based on the investments made in the group in recent years. As part of this assessment management have considered possible downside scenarios and concluded that there are adequate reserves in place to meet obligations as they fall due. Given these circumstances, the directors consider it appropriate to prepare the financial statments on a going concern basis.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The company, being a subsidiary undertaking where 90% or more of the voting rights are controlled within the group whose consolidated financial statements are publicly available, is exempt from the requirement to draw up a cash flow statement in accordance with FRS 102.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Development costs are reviewed annually and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Statement of comprehensive income. Patent fees are capitalised at cost and amortised over the life of the patent to which they related. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed five.
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from related parties. These are measured at amortised cost and are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that: Fixed asset investment valuation Management estimation is required to determine a market value of investments held in subsidiary companies. The estimate is made on an annual basis using all available information and giving due consideration to current market conditions and future prospects for each subsidiary.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
8.Taxation (continued)
The deferred tax charge has been calculated based on the rate of 25%.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors consider
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