Registered number: SC633398
NEXOS SOLUTIONS LIMITED (FORMERLY GLOBAL ENERGY (ENGINEERING & CONSTRUCTION) LIMITED)
FOR THE YEAR ENDED 31 MARCH 2024
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The principal activity of the business, was the offering of engineering, offshore construction, repair and fabrication solutions to the international energy market.
The business has a significant track record in the integrated EPC market for the oil and gas sector, whilst also offering bespoke equipment for the renewables sectors.
The year ended 2024 marked a transformative year for the company with the business subsequently rebranded as Nexos Solutions Limited, following the acquisition by SCF Partners in 2023. Now part of the D2Zero portfolio, Nexos has embraced a dual focus on traditional energy services and emerging clean energy solutions. The acquisition of OSL Consulting Engineers post balance sheet date has significantly expanded its engineering capabilities, particularly in carbon capture, hydrogen, and wider non carbon infrastructure. Operationally, Nexos supported a large number of offshore assets across the UKCS, reinforcing its commitment to the oil and gas sector while advancing decarbonisation efforts. The development of a modularisation facility further positions Nexos as a key player in delivering innovative infrastructure solutions. With a refreshed leadership team and a clear strategic direction, Nexos is well-placed to bridge the gap between current energy systems and future sustainability goals.
During 2024, issues were identified regarding the accounting for contracts dating back to the prior year, which resulted in a write-off of £1,678,000. A detailed investigation has been carried out, and the Directors have taken various corrective actions to ensure the circumstances leading to the error cannot occur again. Note 20 sets out further details of the prior period adjustment.
The year ended 2024 marked a transformative year for the company with the business subsequently rebranded as Nexos Solutions Limited, following the acquisition by SCF Partners in 2023. Now part of the D2Zero portfolio, Nexos has embraced a dual focus on traditional energy services and emerging clean energy solutions. The acquisition of OSL Consulting Engineers post balance sheet date has significantly expanded its engineering capabilities, particularly in carbon capture, hydrogen, and wider non carbon infrastructure. Operationally, Nexos supported a large number of offshore assets across the UKCS, reinforcing its commitment to the oil and gas sector while advancing decarbonisation efforts. The development of a modularisation facility further positions Nexos as a key player in delivering innovative infrastructure solutions. With a refreshed leadership team and a clear strategic direction, Nexos is well-placed to bridge the gap between current energy systems and future sustainability goals.
During 2024, issues were identified regarding the accounting for contracts dating back to the prior year, which resulted in a write-off of £1,678,000. A detailed investigation has been carried out, and the Directors have taken various corrective actions to ensure the circumstances leading to the error cannot occur again. Note 20 sets out further details of the prior period adjustment.
General/financial
The Company has financial exposure through its considerable investment in facilities and a staff based workforce to perform work. As the oil price affects decisions on capital projects, the Company must prudently manage its cost base and successfully diversify into other end markets. The Company has been successful in previous oil cycles and must continue to be dynamic in its business decision making. The Company has positioned itself well for future workload in the nuclear, petrochemical, water/utilities and renewable energy sectors — as well as pursuing international opportunities in oil and gas. Financial risks can be sub divided as follows:
Liquidity risk
The Company policy is to ensure that sufficient liquidity is available to meet the foreseeable needs and to invest cash assets safely and profitably. Liquidity is achieved by overdraft and other long term bank facilities.
Interest rate risk
The Company finances its operations through bank borrowing at floating rates. The Company policy is to borrow at the lowest rates for periods that do not carry excessive time premiums.
Credit risk
The Company's policy is to minimise exposure to losses of defaulting customers. Credit terms are only granted to customers who satisfy credit worthiness procedures and in certain market sectors where appropriate credit insurance can be obtained. Credit limits are reviewed by finance department staff on a regular basis in conjunction with debt ageing and collection history.
The Company has financial exposure through its considerable investment in facilities and a staff based workforce to perform work. As the oil price affects decisions on capital projects, the Company must prudently manage its cost base and successfully diversify into other end markets. The Company has been successful in previous oil cycles and must continue to be dynamic in its business decision making. The Company has positioned itself well for future workload in the nuclear, petrochemical, water/utilities and renewable energy sectors — as well as pursuing international opportunities in oil and gas. Financial risks can be sub divided as follows:
Liquidity risk
The Company policy is to ensure that sufficient liquidity is available to meet the foreseeable needs and to invest cash assets safely and profitably. Liquidity is achieved by overdraft and other long term bank facilities.
Interest rate risk
The Company finances its operations through bank borrowing at floating rates. The Company policy is to borrow at the lowest rates for periods that do not carry excessive time premiums.
Credit risk
The Company's policy is to minimise exposure to losses of defaulting customers. Credit terms are only granted to customers who satisfy credit worthiness procedures and in certain market sectors where appropriate credit insurance can be obtained. Credit limits are reviewed by finance department staff on a regular basis in conjunction with debt ageing and collection history.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The directors use the following KPIs to monitor the delivery of strategic targets:
Gross Profit (%) - 15.2% (2023 restated - 14.8%)
EBITDA (%) - 5.0% (2023 restated - 4.6%)
Free Cash Flow - £1.3m (2023 - £1.4m)
Days Sales Outstanding - 76 (2023 - 81)
Gross Profit (%) - 15.2% (2023 restated - 14.8%)
EBITDA (%) - 5.0% (2023 restated - 4.6%)
Free Cash Flow - £1.3m (2023 - £1.4m)
Days Sales Outstanding - 76 (2023 - 81)
The Directors have acted in accordance with their duties codified in law, which include their duty to act in the way in which they consider, in good faith, would be most likely to promote the success of the group for the benefit of its shareholders as a whole, having regard to the stakeholders and matters set out in section 172(1) of the Companies Act 2006.
Section 172 considerations are embedded in decision making at board level with the directors holding themselves and each other to a high standard of business conduct. The directors ensure long term consequences of all key decisions are considered in detail as part of the decision making process. We have set out in the strategic report, our vision, purpose and values we also detail the risks facing our organisation and our responses to these. Information about our employee involvement is included within the Directors' report.
Business relationships with key stakeholders such as suppliers and customers are fundamental to the business and the directors look to ensure all decisions made at board level gives due consideration to the needs of these groups to ensure that any outcome will have mutual benefit for ourselves and our stakeholders.
Section 172 considerations are embedded in decision making at board level with the directors holding themselves and each other to a high standard of business conduct. The directors ensure long term consequences of all key decisions are considered in detail as part of the decision making process. We have set out in the strategic report, our vision, purpose and values we also detail the risks facing our organisation and our responses to these. Information about our employee involvement is included within the Directors' report.
Business relationships with key stakeholders such as suppliers and customers are fundamental to the business and the directors look to ensure all decisions made at board level gives due consideration to the needs of these groups to ensure that any outcome will have mutual benefit for ourselves and our stakeholders.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present their report and the financial statements for the year ended 31 March 2024.
The profit for the year, after taxation, amounted to £2,015,000 (2023 - £4,212,000).
Dividends of £NIL were paid in the year (2023 - £NIL).
The director who served during the year was:
The directors will continue to grow the business both organically and by acquisition.
The Company continues to manage its cost base and continues to develop and seek innovative solutions within the digital space to provide a unique offering to the market to go alongside its track record in delivery.
The Company continues to manage its cost base and continues to develop and seek innovative solutions within the digital space to provide a unique offering to the market to go alongside its track record in delivery.
Employee involvement continues to form a crucial part of our approach to employee engagement throughout the Company.
The voice of the employee plays an integral part in our decision making therefore we hold regular engagements throughout the year to gauge what is working well and areas for continual improvement. The benefits seen in the Company though the regular engagement with its employees are improved motivation, promotion of greater health and wellbeing, improved employee experiences and a sense of common goals.
The voice of the employee plays an integral part in our decision making therefore we hold regular engagements throughout the year to gauge what is working well and areas for continual improvement. The benefits seen in the Company though the regular engagement with its employees are improved motivation, promotion of greater health and wellbeing, improved employee experiences and a sense of common goals.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
At Nexos Solutions Limited, meaningful engagement with our suppliers, customers, and wider stakeholders is central to our operational philosophy and long-term success. In 2024, we continued to strengthen these relationships through transparency, innovation, and collaboration.
Customer Engagement:
We support our customers across the full lifecycle of their projects—from concept to execution and asset enhancement. Our digital platforms, including Slingshot, provide real-time analytics and project visibility, enabling data-driven decision-making and reducing operational risk. Nexos also expanded our customer base across both traditional energy and clean energy sectors, offering integrated EPC services that align with their evolving sustainability goals.
Supplier Collaboration:
We maintain a robust and ethical supply chain, underpinned by transparent procurement practices and a commitment to shared values. Our partnerships are built on mutual trust, performance accountability, and a shared drive for innovation. The integration of OSL Consulting
Engineers into the Nexos group has further enhanced our supplier network, particularly in the areas of hydrogen, carbon capture, and process engineering.
Wider Stakeholder Engagement:
Nexos actively collaborates with industry bodies, regional authorities, and community partners to support the energy transition. Our presence in the Humber region has grown significantly, where we are contributing to key decarbonisation initiatives. Through platforms like D2ZTrack, we also engage stakeholders on sustainability metrics, offering transparent reporting on carbon intensity and environmental impact.
By fostering open dialogue and long-term partnerships, Nexos continues to build a resilient ecosystem that supports innovation, compliance, and sustainable growth.
Customer Engagement:
We support our customers across the full lifecycle of their projects—from concept to execution and asset enhancement. Our digital platforms, including Slingshot, provide real-time analytics and project visibility, enabling data-driven decision-making and reducing operational risk. Nexos also expanded our customer base across both traditional energy and clean energy sectors, offering integrated EPC services that align with their evolving sustainability goals.
Supplier Collaboration:
We maintain a robust and ethical supply chain, underpinned by transparent procurement practices and a commitment to shared values. Our partnerships are built on mutual trust, performance accountability, and a shared drive for innovation. The integration of OSL Consulting
Engineers into the Nexos group has further enhanced our supplier network, particularly in the areas of hydrogen, carbon capture, and process engineering.
Wider Stakeholder Engagement:
Nexos actively collaborates with industry bodies, regional authorities, and community partners to support the energy transition. Our presence in the Humber region has grown significantly, where we are contributing to key decarbonisation initiatives. Through platforms like D2ZTrack, we also engage stakeholders on sustainability metrics, offering transparent reporting on carbon intensity and environmental impact.
By fostering open dialogue and long-term partnerships, Nexos continues to build a resilient ecosystem that supports innovation, compliance, and sustainable growth.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
This is the second year Nexos Solutions Limited (Formerly Global Energy (Engineering & Construction) Limited) has been required to report greenhouse gas (‘GHG’) emissions in the Directors’ report in line with the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.
Our GHG emissions are reported in tonnes of carbon dioxide equivalent (tCO2e), and this submission covers the period 1st April 2023 – 31st March 2024.
Our GHG emissions are reported in tonnes of carbon dioxide equivalent (tCO2e), and this submission covers the period 1st April 2023 – 31st March 2024.
Methodology/Reporting
Our approach to reporting is based on the GHG Protocol Corporate Accounting and Reporting Standard. In line with the guidance on SECR, we have included the energy and emissions for the buildings we own and operate (those within our financial control boundary) and those where we lease facilities and are responsible for the energy consumption (but which are outside our financial control).
We have also included emissions from vehicles that Nexos Solutions Limited are obliged to report.
Conversion factors used for emissions are the UK Government GHG Conversion Factors for Company Reporting provided by the Department for Energy Security and Net Zero / Department for Environment, Food & Rural Affairs
Our approach to reporting is based on the GHG Protocol Corporate Accounting and Reporting Standard. In line with the guidance on SECR, we have included the energy and emissions for the buildings we own and operate (those within our financial control boundary) and those where we lease facilities and are responsible for the energy consumption (but which are outside our financial control).
We have also included emissions from vehicles that Nexos Solutions Limited are obliged to report.
Conversion factors used for emissions are the UK Government GHG Conversion Factors for Company Reporting provided by the Department for Energy Security and Net Zero / Department for Environment, Food & Rural Affairs
UK energy use
The following gross emissions / intensity ratios are noted below:
GHG emissions and energy use data for period 1 April 2023 to 31 March 2024
The following gross emissions / intensity ratios are noted below:
GHG emissions and energy use data for period 1 April 2023 to 31 March 2024
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
UK energy use (continued)
* The company uses 100% Renewable Electricity and has certificates from the supplier covering 01/04/2023 to 31/03/2024, resulting in zero for Scope 2 emissions.
Energy efficiency action
The company is committed to energy efficiency and have several policies to decrease energy usage where possible. This includes the continued upgrading of lighting to LED with PIR sensors wherever possible, the use of a BMS for heating in offices, staff environmental sustainability awareness training, use of electric forklifts as alternatives to gas and diesel (where appropriate). Alternative fuels and fuel efficiency will be considered when renewing fleet vehicles and EV charging points have been installed at offices.
To ensure transparency and inclusivity, emissions are written to the company’s own blockchain D2ZChain and reported on the bespoke company platform D2ZTrack where all staff can see the environmental performance. Customers and visitors can also access the emissions data via QR code displayed in each facility.
The company will maintain its commitment to using 100% renewable electricity.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The directors acknowledge that they have a significant journey ahead in reducing the company’s carbon footprint and are committed to looking for improvements in how the business is run day to day.
To cover the remaining Scope 1 & 2 emissions for 2022-2023 the company bought 165 tonnes carbon offsets from a Methane Recovery Project in the Netherlands, which was a VERRA Verified Carbon Standard, these carbon credits were confirmed retired in Feb 2024. The company has evaluated several offsetting schemes and is in the process of purchasing offsets from the Methane Recovery Project for 2023-2024 as it consistent demonstrated the removal of carbon that would not happen without the project.
The company has begun to record the following Scope 3 categories which will be available for future reports – 1, 2, 3, 5, 6 and 7.
Where mandatory disclosures in the Directors' report are considered by the directors to be of stategic importance, these are disclosed in the stategic report.
The acquisition of OSL Consulting Engineers continued to influence Nexos’ operational footprint post-March 2024, particularly in the Humber region. This move has enhanced the company’s capabilities in hydrogen, carbon capture, and process engineering, positioning it as a key contributor to national decarbonisation efforts.
Global E&C rebranded as Nexos, marking a strategic evolution aligned with its acquisition by SCF Partners and integration into the D2Zero portfolio, which focuses on clean energy and decarbonisation. This rebrand reflects Nexos’ commitment to bridging traditional energy operations with emerging technologies, including hydrogen, carbon capture, and renewable infrastructure.
Global E&C rebranded as Nexos, marking a strategic evolution aligned with its acquisition by SCF Partners and integration into the D2Zero portfolio, which focuses on clean energy and decarbonisation. This rebrand reflects Nexos’ commitment to bridging traditional energy operations with emerging technologies, including hydrogen, carbon capture, and renewable infrastructure.
This report was approved by the board and signed on its behalf.
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DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 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 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 Company will continue in business.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEXOS SOLUTIONS LIMITED (FORMERLY GLOBAL ENERGY (ENGINEERING & CONSTRUCTION) LIMITED)
We have audited the financial statements of Nexos Solutions Limited (Formerly Global Energy (Engineering & Construction) Limited) (the 'Company') for the year ended 31 March 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEXOS SOLUTIONS LIMITED (FORMERLY GLOBAL ENERGY (ENGINEERING & CONSTRUCTION) LIMITED) (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 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 NEXOS SOLUTIONS LIMITED (FORMERLY GLOBAL ENERGY (ENGINEERING & CONSTRUCTION) 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.
∙Manipulation of the timing of revenue recognition and associated costs
∙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.
∙Vouching timing and completeness of revenue
∙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.
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 NEXOS SOLUTIONS LIMITED (FORMERLY GLOBAL ENERGY (ENGINEERING & CONSTRUCTION) 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 MARCH 2024
Page 13
BALANCE SHEET
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 32 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Nexos Solutions Limited (formerly Global Energy (Engineering & Construction) Limited) is a limited liability company incorporated in Scotland. The registered office is Blackwood House, Union Grove Lane, Aberdeen, AB10 6XU.
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 judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Buchan 1 Limited as at 31 December 2023 and these financial statements may be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.
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. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Defined contribution pension plan
The Company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
The Company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
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 ten years.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Financial liabilities
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Long term contracts
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonably certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year-end by recording turnover and related costs as contract activity progresses Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Turnover derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year which they are first foreseen.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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FOR THE YEAR ENDED 31 MARCH 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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FOR THE YEAR ENDED 31 MARCH 2024
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The accounts for the prior year have been restated to incorporate an amendment to the recognition of deferred project costs within prepayments which has been incorrectly applied, the directors consider this to be an error in accordance with FRS 102 10.19. The adjustment has resulted in an increase in cost of sales in the prior period of £1,678,000 and a decrease in the tax charge of £319,000 therefore, leading to an overall reduction in the profit for the financial year. Net assets and the profit and loss account available for distribution have decreased by £1,359,000.
The Company contributes a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £991,000 (2023 - £723,000) . Contributions totaling £216,000 (2023 - £206,000) were payable to the fund at the balance sheet date and are included in creditors.
The bank hold a floating charge over the assets of the company.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
The Company's immediate parent undertaking is Jigsaw Bidco Limited, a company registered in Scotland. The ultimate parent is D2Zero Limited, a company based in Scotland.
These financial statements are included in the consolidated financial statements of Buchan 1 Limited, whose audited financial statements are available from its registered office at Blackwood House, Union Grove Lane, Aberdeen, Scotland, AB10 6XU. Funds managed by SCF Partners Inc are the majority shareholder of Buchan 1 Limited.
The parent of the smallest group for which consolidated accounts are prepared of which this Company is a part is Buchan 1 Limited, a Company registered in Scotland. The financial statements of Buchan 1 Limited are available from the above address.
The directors consider funds managed by SCF Partners Inc to be the ultimate controlling party through their controlling interest in D2Zero Limited, which controls Buchan 1 Limited.
These financial statements are included in the consolidated financial statements of Buchan 1 Limited, whose audited financial statements are available from its registered office at Blackwood House, Union Grove Lane, Aberdeen, Scotland, AB10 6XU. Funds managed by SCF Partners Inc are the majority shareholder of Buchan 1 Limited.
The parent of the smallest group for which consolidated accounts are prepared of which this Company is a part is Buchan 1 Limited, a Company registered in Scotland. The financial statements of Buchan 1 Limited are available from the above address.
The directors consider funds managed by SCF Partners Inc to be the ultimate controlling party through their controlling interest in D2Zero Limited, which controls Buchan 1 Limited.
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