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Registered Number:SC447169














SENTINEL OFFSHORE VESSELS LIMITED





ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

 
SENTINEL OFFSHORE VESSELS LIMITED
 

COMPANY INFORMATION


Directors
R S Deans 
J C Mitchell 
R W Ferrari 
C W Chern 
K L Lee 




Company secretary
MacKinnons Solicitors LLP



Registered number
SC447169



Registered office
The Exchange 1 Eighth Floor
62 Market Street

Aberdeen

AB11 5PJ




Independent auditors
AAB Audit & Accountancy Limited

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
SENTINEL OFFSHORE VESSELS LIMITED
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditors' report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 26


 
SENTINEL OFFSHORE VESSELS LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction
 
The directors present the strategic report for the year ended 31 December 2025.  

Results and dividends

The profit for the year after taxation was £1.2m (2024 - £0.1m loss). The net assets of the company at the end of the year were £56.4m (2024 - £51.8m).

Business review

No dividends (2024 - Nil) were paid to the parent company during the year. 

The principal activities of the company are owners and operators of Multi-role Vessels (MRVs). The fleet operates in the energy sector and supports fisheries and coastguard inspection and surveillance activities. 

The MRV design of all our vessels enables them to provide a multi-functional offering including Emergency Response and Rescue Vessel ("ERRV") services, provision of deck and bulk cargo operations, oil spill response, Fire Fighting, Walk-to-Work systems and remote operated vehicle support, features which facilitate diversification into new markets. 

The company's key financial and other performance indicators during the year were as follows:
 


2025
2024
Turnover
£40.4m
£38.1m
EBITDA
£11.4m
£9.5m
Profit/(Loss) for the year
£1.2m
(£0.1m)
Net assets
£56.4m
£51.8m
Average number of employees
5
5
Average number of vessels owned
12
12


Net assets

Net assets at 31 December 2025 are £56.4m, the increase of £4.6m is attributable to shares issued in the year and the profit after tax.

Growth and diversification

The strategic objective of the company is to continue to grow its footprint in the North Sea and internationally, to target long term contract opportunities and "go green", by continuing to diversify our operations and seek new opportunities in emerging markets. There are significant opportunities within the renewable energy sector and the multi-role capabilities of all our vessels facilitate such further diversification, as evidenced by our growth in the fisheries inspection and surveillance market. 

Page 1

 
SENTINEL OFFSHORE VESSELS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025

Growth and diversification (continued)
 
Our fleet is designed to support various offshore activities that facilitate the global energy transition and safeguard marine biodiversity, including offshore wind, fisheries control and maritime surveillance. Our fleet is able to respond to environmental emergencies and promptly launch search and rescue operations to save lives.

Following our successful competitive contract award in FY2022 for the charter of three vessels to undertake fisheries inspection services in international waters throughout Europe and North Atlantic, this sector now represents 37% of group vessel employment and profitability in FY2025. We continue to seek opportunities to increase vessel deployment supporting the varied activities of government agencies. 

Anticipated demand in our existing core markets combined with new opportunities require investment in new tonnage and the directors are planning a program of further fleet expansion to capitalise on these opportunities. Plans to enhance vessel design are in place to ensure an enlarged fleet continues to be best in class and capable of servicing multiple attractive end markets. 

The company is in a strong position to grow by investing in new tonnage to target these markets, especially in offshore renewables. With our strong and experienced team and local know-how, we are well positioned to pivot and capture a slice of the fast-growing offshore wind market in the UK.

Principal risks and uncertainties 
 
The management of the business and the execution of the company strategy are subject to a number of risks. The key business risks affecting the core activities of the company are set out below. Risks are reviewed by the Board and appropriate processes put in place to monitor and mitigate them. 

Oil and gas price
 
The worldwide price of oil and gas directly impacts the number of operating and drilling platforms which the company supports. The Board regularly monitors supply and demand patterns, together with the profile and utilisation of the fleet, to maximise earnings potential. This risk also impacts the company's fuel cost of its relief vessel. 

Labour market
 
The availability of sufficient personnel with appropriate skill and experience and our ability to retain those currently employed by the company impacts our ability to achieve growth.  

Liquidity risk 
 
The directors manage vessel chartering, cost of operations and working capital in order to meet the company’s financial obligations to stakeholders including employees, suppliers, bankers and shipbuilding yards. Forecasts are prepared to assist management identify liquidity requirements and maintain adequate resources. The company's primary sources of finance are operating cash inflows, bank debt and equity. Bank term loan facilities and equity have been applied to finance vessel acquisitions.

Page 2

 
SENTINEL OFFSHORE VESSELS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025

Interest rate risk
 
The company's bank borrowings have interest charges based on SONIA/SOFR. Increases in SONIA/SOFR rates could result in a higher interest charge and reduce profitability. This risk has been mitigated by an interest rate hedging agreement which has fixed the SONIA rate until 31 December 2026. 

Competitive risks

The ERRV market is competitive although the statutory requirement for ERRV's to be on location during energy sector operations does provide some insulation on demand for ERRV's during periods of reduced activity. 

The low average age of our fleet provides significant competitive advantages over older vessels. The fleet is fuel efficient, multipurpose and provides environmental benefits. The hybrid power management system on our new vessels is 30% more efficient than vessels built 20 years ago, which provides cost savings to our customers. An environmental benefit from the Tier 3 compatible modern engines would be a reduction in emissions by up to 86% compared to older tonnage. The multi-role capabilities of our vessels include provision of deck and bulk cargo operations, oil spill response, Fire Fighting, Walk-to-Work systems and remote operated vehicle support, features which facilitate diversification into additional activities and new markets. The high level of utilisation achieved reflects the competitive advantages of our fleet.

Legislative risk

UK legislation in relation to the operation of ERRV's in the UKCS is prescriptive and the company continually ensures that it is compliant in all respects. 

Future developments

Market conditions are improving with overall high ERRV utilisation in UKCS at the present time and there are significant opportunities for our multi-role vessels in attractive, new markets. Accordingly, the directors are confident regarding prospects for the group.

Going Concern

The directors have prepared detailed long term financial projections. Taking into consideration the net asset value, liquidity, trading prospects and obligations of the company, the directors believe it appropriate to prepare the company financial statements on a going concern basis.

 

This report was approved by the board and signed on its behalf.


R S Deans
Director

Date: 15 May 2026

Page 3

 
SENTINEL OFFSHORE VESSELS LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025

The directors present their report and the financial statements for the year ended 31 December 2025.

Results and dividends

The profit for the year, after taxation, amounted to £1,180,779 (2024 - loss £99,914).

Ordinary dividends we paid amounting to £nil (2024: £nil). The directors do not recommend payment of a dividend.

Directors

The directors who served during the year were:

R S Deans 
J C Mitchell 
R W Ferrari 
C W Chern 
K L Lee 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

The auditorsAAB Audit & Accountancy Limitedwill 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.
 





R S Deans
Director

Date: 15 May 2026

Page 4

 
SENTINEL OFFSHORE VESSELS LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025

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;
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  comply with the Companies Act 2006They 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.

Page 5

 
SENTINEL OFFSHORE VESSELS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SENTINEL OFFSHORE VESSELS LIMITED
 

Opinion


We have audited the financial statements of Sentinel Offshore Vessels Limited (the 'company') for the year ended 31 December 2025, 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 policiesThe 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 2025 and of its profit 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 Auditors' 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.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for 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.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 6

 
SENTINEL OFFSHORE VESSELS LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SENTINEL OFFSHORE VESSELS LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 5, 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.


Page 7

 
SENTINEL OFFSHORE VESSELS LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SENTINEL OFFSHORE VESSELS LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

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 Auditors' 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 considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: 

timing and completeness of revenue recognition;
compliance with relevant laws and regulations which may impact on the financial statements and those that the company needs to comply with for the purpose of trading;
management judgements applied in calculating provisions, and;
management override of controls to manipulate the company's key performance indicators to meet targets.

We discussed these risks with client management, designed audit procedures to address these risks including:

reviewed internal documentation and correspondence with regulators for evidence or irregularities;
testing a sample of sales transactions to source documents and vouching recognition is in the correct period;
consideration of the assumptions applied whether the judgements applied in calculation of provisions were appropriate;
reviewed areas of judgement and tested a sample of journal entries for indicators of management bias, and;
performed analytical procedures to identify any unusual or unexpected relationships which may be an indication of material misstatement due to fraud.

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 Auditors' report.


Page 8

 
SENTINEL OFFSHORE VESSELS LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SENTINEL OFFSHORE VESSELS LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





Derek Mair (Senior statutory auditor)
  
for and on behalf of
AAB Audit & Accountancy Limited
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

15 May 2026
Page 9

 
SENTINEL OFFSHORE VESSELS LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025

2025
2024
Note
£
£

  

Turnover
 4 
40,366,514
38,134,074

Cost of sales
  
(26,902,722)
(26,953,540)

Gross profit
  
13,463,792
11,180,534

Administrative expenses
  
(2,101,781)
(1,693,233)

Operating profit
 5 
11,362,011
9,487,301

Depreciation
  
(6,652,730)
(6,820,150)

Total operating profit
  
4,709,281
2,667,151

Interest receivable and similar income
 7 
374,146
120,966

Interest payable and similar expenses
 8 
(2,457,001)
(2,504,405)

Fair value movements
  
(1,441,601)
(379,237)

Profit/(loss) before tax
  
1,184,825
(95,525)

Tax on profit/(loss)
 10 
(4,046)
(4,389)

Profit/(loss) for the financial year
  
1,180,779
(99,914)

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 13 to 26 form part of these financial statements.

Page 10

 
SENTINEL OFFSHORE VESSELS LIMITED
REGISTERED NUMBER:SC447169

BALANCE SHEET
AS AT 31 DECEMBER 2025

2025
2024
Note
£
£

Fixed assets
  

Tangible assets
 11 
95,199,123
94,310,351

  
95,199,123
94,310,351

Current assets
  

Debtors: amounts falling due after more than one year
 12 
4,833,314
5,398,231

Debtors: amounts falling due within one year
 12 
1,049,454
2,332,550

Cash at bank and in hand
  
628,087
427,824

  
6,510,855
8,158,605

Creditors: amounts falling due within one year
 13 
(6,703,772)
(5,925,218)

Net current (liabilities)/assets
  
 
 
(192,917)
 
 
2,233,387

Total assets less current liabilities
  
95,006,206
96,543,738

Creditors: amounts falling due after more than one year
 14 
(38,607,072)
(44,747,976)

  

Net assets
  
56,399,134
51,795,762


Capital and reserves
  

Called up share capital 
 17 
49,387,186
45,964,593

Profit and loss account
 18 
7,011,948
5,831,169

  
56,399,134
51,795,762


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




R S Deans
Director

Date: 15 May 2026

The notes on pages 13 to 26 form part of these financial statements.

Page 11

 
SENTINEL OFFSHORE VESSELS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2024
45,964,593
5,931,083
51,895,676


Comprehensive income for the year

Loss for the year
-
(99,914)
(99,914)



At 1 January 2025
45,964,593
5,831,169
51,795,762


Comprehensive income for the year

Profit for the year
-
1,180,779
1,180,779

Shares issued during the year
3,422,593
-
3,422,593


At 31 December 2025
49,387,186
7,011,948
56,399,134


The notes on pages 13 to 26 form part of these financial statements.

Page 12

 
SENTINEL OFFSHORE VESSELS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

1.


General information

Sentinel Offshore Vessels Limited is a private limited company incorporated in Scotland.  The registered office is, 8th Floor, The Exchange 1, 62 Market Street, Aberdeen AB11 5PJ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

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:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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 Sentinel Offshore Holdings Limited as at 31 December 2025 and these financial statements may be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.

 
2.3

Going concern

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. 
 
The company and wider Group has operated successfully meeting all financial obligations in the current period to date and this has continued in Q1 2026.  The Group has prepared long term  forecasts and these continue to show significant cash generation and meeting of bank covenants, in the years ending 31 December 2026 and beyond.  During the year these facilities have been increased and extended till the end of 2027.  These facilities along with further equity injections post year end will enable the company to fund the capital commitments disclosed in Note 20.

Therefore, at the time of approving the financial statements the directors have a reasonable expectation that the company and wider Group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.  

Page 13

 
SENTINEL OFFSHORE VESSELS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

Turnover represents vessel charter and related services and is recognised as these services are provided.

 
2.6

Operating leases: the company as lessee

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the asset's fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the Statement of Comprehensive Income so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 14

 
SENTINEL OFFSHORE VESSELS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are charged to profit or loss over the term of the debt. 

 
2.10

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 15

 
SENTINEL OFFSHORE VESSELS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)


2.11
Tangible fixed assets (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:

Vessels
-
5 - 25 years
Assets under construction
-
Not depreciated
Drydocking expenditure
-
5 years

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.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 16

 
SENTINEL OFFSHORE VESSELS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

 
2.15

Financial instruments

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.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

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.

Basic 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.

Page 17

 
SENTINEL OFFSHORE VESSELS LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)


2.15
Financial instruments (continued)

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.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Page 18

 
SENTINEL OFFSHORE VESSELS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

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.

Critical judgements

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

Depreciation of vessels

Vessels are depreciated over their useful lives. Useful lives are based on management's estimate of the period that the assets will generate revenue, which are reviewed annually for continued appropriateness.

Impairment of non-financial assets

Where there are indicators of impairment of individual assets, the company performs impairment tests based on fair value less costs to sell or a value in use calculation. The fair value less costs to sell calculation is based on available data from sales transaction in an arm's length transaction on similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the company is not yet committed to or significant future investments that will enhance the asset's performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash flows and the growth rate used for extrapolation purposes.

The directors have considered whether or not there were indicators of impairment and concluded that at the balance sheet date none were identified. The assessment included both external sources such as the market conditions, and internal sources such as physical damage and obsolescence.

Key sources of estimation uncertainty

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.

Recoverability of group receivables

The company makes an assessment of the recoverable value of amounts due from fellow group
undertakings. When assessing the recoverability of these amounts owed, management considers factors such as the ongoing trading performance of group undertakings.

Page 19

 
SENTINEL OFFSHORE VESSELS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

4.


Turnover

An analysis of turnover by class of business is as follows:


2025
2024
£
£

Charter of vessels
40,366,514
38,134,074

40,366,514
38,134,074


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Exchange differences
(30,947)
151,256

Fees payable to the company's auditor for the audit of the company's financial statements
7,750
7,166

Depreciation of owned tangible fixed assets
6,652,730
6,820,150


6.


Employees




The average monthly number of employees, including the directors, during the year was as follows:


        2025
        2024
            No.
            No.







Employees
5
5

The directors received no remuneration in respect of their services to this company and were remunerated through a fellow group undertaking.


7.


Interest receivable

2025
2024
£
£


Interest receivable from group companies
374,146
120,966

374,146
120,966

Page 20

 
SENTINEL OFFSHORE VESSELS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

8.


Interest payable and similar expenses

2025
2024
£
£


Bank interest payable
2,299,814
2,375,461

Bank commitment fees
53,025
26,417

Bank arrangement fees
104,162
102,527

2,457,001
2,504,405


9.


Loss on financial instruments designated as fair value through profit or loss

2025
2024
£
£

Loss on hedging instrument in a fair value hedge
1,441,601
379,237

1,441,601
379,237



10.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
4,046
4,389


4,046
4,389


Total current tax
4,046
4,389

Deferred tax


Tax on profit/(loss)
4,046
4,389
Page 21

 
SENTINEL OFFSHORE VESSELS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Profit/(loss) on ordinary activities before tax
1,184,825
(95,525)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
296,206
(23,881)

Effects of:


Capital allowances for year in excess of depreciation
1,662,904
1,705,038

Non-taxable income
(1,959,389)
(1,684,977)

Tonnage tax profits
4,046
4,389

Other permanent differences
279
3,820

Total tax charge for the year
4,046
4,389


11.


Tangible fixed assets


Vessels
Assets under construction
Drydocking expenditure
Total

£
£
£
£



Cost or valuation


At 1 January 2025
126,107,614
-
5,642,420
131,750,034


Additions
221,540
3,669,388
3,650,574
7,541,502


Transfers between classes
(419,504)
419,504
-
-



At 31 December 2025

125,909,650
4,088,892
9,292,994
139,291,536



Depreciation


At 1 January 2025
34,046,898
-
3,392,785
37,439,683


Charge for the year on owned assets
5,368,192
-
1,284,538
6,652,730



At 31 December 2025

39,415,090
-
4,677,323
44,092,413



Net book value



At 31 December 2025
86,494,560
4,088,892
4,615,671
95,199,123



At 31 December 2024
92,060,716
-
2,249,635
94,310,351

Page 22

 
SENTINEL OFFSHORE VESSELS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

12.


Debtors

2025
2024
£
£

Due after more than one year

Amounts owed by group undertakings
4,833,314
5,398,231

4,833,314
5,398,231


2025
2024
£
£

Due within one year

Amounts owed by group undertakings
334,557
187,172

Other debtors
7,981
2,636

Prepayments and accrued income
34,942
29,167

Financial instruments
671,974
2,113,575

1,049,454
2,332,550


Amounts due from fellow group undertakings are unsecured.


13.


Creditors: Amounts falling due within one year

2025
2024
£
£

Bank loans
5,796,872
5,708,970

Trade creditors
62,311
31,871

Amounts owed to group undertakings
792,282
171,042

Corporation tax
3,988
3,566

Accruals and deferred income
48,319
9,769

6,703,772
5,925,218


Amounts due to group undertakings are unsecured, interest free and repayable on demand.


14.


Creditors: Amounts falling due after more than one year

2025
2024
£
£

Bank loans
38,607,072
44,747,976

38,607,072
44,747,976


Page 23

 
SENTINEL OFFSHORE VESSELS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

15.


Loans


Analysis of the maturity of loans is given below:


2025
2024
£
£

Amounts falling due within one year

Bank loans
5,796,872
5,708,970


5,796,872
5,708,970

Amounts falling due 1-2 years

Bank loans
38,607,072
44,747,976


38,607,072
44,747,976



44,403,944
50,456,946


At the year end the company has five loan facilities in place, during the year all the loans have been extended and are repayable quarterly up to 31 December 2027. The loans bear interest at a rate of 3.15% above SONIA/SOFR.  See Note 19 for details of the bank funding security.


16.


Financial instruments

2025
2024
£
£

Financial assets


Financial assets measured at fair value through profit or loss
628,087
427,824

Financial assets that are debt instruments measured at amortised cost
5,175,852
5,588,039

5,803,939
6,015,863


Financial liabilities


Financial liabilities measured at amortised cost
(45,306,856)
(50,669,628)


Financial assets measured at fair value through profit or loss comprise cash at bank.


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed to group undertakings and other debtors.


Financial liabilities measured at amortised cost comprise trade creditors, bank loans, accruals and amounts owed to Group undertakings.

Page 24

 
SENTINEL OFFSHORE VESSELS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

17.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



49,387,186 (2024 - 45,964,593) Ordinary shares of £1.00 each
49,387,186
45,964,593


During the year 3,422,593 Ordinary £1 shares were issued at par.


18.


Reserves

Profit and loss account

The profit and loss account reserve represents accumulative profits and losses net of dividends and other adjustments.


19.


Financial commitments, guarantees and contingent liabilities

The group bank funding is secured by a floating charge over all the assets of the company and there is a cross corporate guarantee between the following group companies: Sentinel Crewing Limited, Cyan Sentinel Limited, Sentinel Offshore Vessels Limited, Sentinel Offshore Vessels 54 Limited, Sentinel Offshore Holdings Limited and Sentinel Offshore Vessels Pte Limited. The cross company guarantee is in respect of total bank indebtedness which at the year end amounted to the value of the bank term loan of £44,567,337 (2024 - £50,654,500).

Bank's funding has 1st marine mortgage securities over all vessels which this company holds.


20.


Capital commitments


At 31 December 2025 the company had capital commitments as follows:

2025
2024
£
£


Contracted for but not provided in these financial statements
13,031,678
-

13,031,678
-

Page 25

 
SENTINEL OFFSHORE VESSELS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

21.


Related party transactions

The company has taken advantage of the exemption available in accordance with section 33 of FRS 102 ‘Related Party Disclosures’ not to disclose related party transactions with any wholly owned members of the group.


22.


Controlling party

The company considers Sentinel Offshore Holdings Limited as its parent company, a company registered in Scotland. Copies of the group financial statements can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. The company considers its ultimate beneficial owner to be Seraya Management Pte. Ltd.

Throughout the year, the company was controlled by the directors.

Page 26