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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2025
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal activities
The principal activities of the group 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 enable diversification into new markets.
Key performance indicators
The group’s key financial and other performance indicators during the year were as follows:
Financial results
The group experienced another record year and now owns and operates a fleet of 14 vessels. Turnover has increased by £4.2m coupled with a profitability increase of £1.8m in FY2025 and is attributable to increased fleet size and effective control of operating costs. Utilisation across all our vessels remains very high at 95.9%. EBITDA of £14.6m represents another record performance in this key profitability metric since the group was formed more than a decade ago. Our fleet is the youngest in the sector with an average age of 8 years, which is significantly lower than our competition. During the year the group commenced investment in a Newbuild 65m MRV scheduled for delivery in 2027. Two independent desktop valuations of the fleet were commissioned at the year end. The average valuation was £166m, which compares with the depreciated historical cost fleet net book value of £106m as recorded in the year-end balance sheet. Total bank debt at the year-end amounted to £44.6m which represents a loan to value ratio of 27%. Net assets at 31 December 2025 are £77m, the increase of £6.4m is attributable to shares issued in the year and the profit after tax for the year given the increase in the vessel fleet. This profit is stated after reporting a loss of £1.4m (FY2024 loss £0.4m) representing the decrease in the fair market value of interest rate and foreign currency hedging agreements. This fair market value adjustment arises principally from the change in outlook for interest rates over the remaining period of these financial instruments and actual fixed interest rate hedge receipts in FY2025. If the fleet had been recorded in the accounts at valuation rather than depreciated historical cost, the group net asset value at the year-end would have been stated as £137m.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Change in ownership and rationale for the investment
On 29 February 2024, Singapore-based Cyan Renewables, a portfolio company of Seraya Partners and Asia's first dedicated offshore wind vessel operator, completed an agreement to acquire a majority stake in Sentinel Offshore Holdings Ltd group. During the year Sentinel Marine Ltd was rebranded to Cyan Sentinel Ltd. Through this acquisition, Cyan Sentinel's multi-role vessels will complement Cyan Renewables' vessel portfolio, while placing the latter in a strategic position to bring its expertise to the offshore wind market in the UK. By leveraging and extending Cyan Sentinel's proficiency in marine life and biodiversity protection beyond the UK, it will also create synergies in the Asia market to reinforce marine conservation efforts, which is a significant step in supporting the global transition from blue to green economy. Growth and diversification The strategic objective of the group 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. 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 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. In addition to the current investment taking place in a Newbuild 65M MRV, the group is thrilled to announce the commitment to invest in 2x state-of-the-art 60.6m MRVs to add to our UK fleet with an expected delivery in 2027 which would bring the total fleet up from 14 to 17. These new cutting-edge vessels enhance our commitment to safety, reliability, and operational excellence, offering advanced emergency response capabilities alongside versatile support functions. Designed to meet the highest industry standards, these newbuilds strengthen our ability to serve offshore energy sectors while reinforcing our position as a leader in maritime safety and support. The directors welcome Cyan Renewables as the majority shareholder. With its strong financial capability, the group is now in a much stronger position to grow by investing in new tonnage to target existing and new 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.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The management of the business and the execution of the group strategy are subject to several risks. The key business risks affecting the core activities of the group 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 group 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 group'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 group impacts our ability to achieve growth. Liquidity risk The directors manage vessel chartering, cost of operations and working capital in order to meet the group'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 group'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. Interest rate risk The group'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 interest rate hedging agreements which have 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.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
UK legislation in relation to the operation of ERRV's in the UKCS is prescriptive and the group 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 group, the directors believe it appropriate to prepare the group financial statements on a going concern basis.
This report was approved by the board and signed on its behalf.
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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.
The profit for the year, after taxation, amounted to £2,932,025 (2024 - £1,105,329).
No ordinary dividends were paid (2024 - £nil). The directors do not recommend payment of a dividend.
The directors who served during the year were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Greenhouse gas emissions, energy consumption and energy efficiency action
This is the third year Sentinel Offshore Holdings 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. We fully recognise our responsibility to protect the environment and we have a strong environmental policy, objectives and guidelines in place which we review and update regularly. The Group complies with all regulations covering the processing and disposal of toxic and non-toxic waste and uses qualified licensed contractors for the collection and disposal of waste where appropriate. We make every effort to keep our neighbours in the local community safe from any potential harm caused by our activities by closely managing our emissions and waste. Our GHG emissions are reported in tonnes of carbon dioxide equivalent (tCO2e), and the second submission covers the period 1 January 2025 to 31 December 2025. 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 vessels 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).
UK energy use
The following gross emissions / intensity ratios are noted below: Sentinel Offshore Holdings is pleased with the underlying trend which is showing a reduction in tonnes of CO2 emissions over time.
Energy efficiency action
The Group is committed to energy efficiency and have a number of policies to decrease energy usage where possible. The directors acknowledge that they have a significant journey ahead in reducing the Group's carbon footprint and are committed to looking for improvements in how we run the business day to day.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The auditors, AAB Audit & Accountancy Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group'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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SENTINEL OFFSHORE HOLDINGS LIMITED
We have audited the financial statements of Sentinel Offshore Holdings Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated analysis of net debt, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SENTINEL OFFSHORE HOLDINGS LIMITED (CONTINUED)
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SENTINEL OFFSHORE HOLDINGS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and Taxation legislation. We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:
∙Management override of controls to manipulate the company's key performance indicators to meet targets;
∙Timing and completeness of revenue recognition;
∙Management judgement applied in calculating provisions, and;
∙Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading.
Our audit procedures to respond to these risks included:
∙Testing of journal entries and other adjustments for appropriateness;
∙Evaluating the business rationale of significant transactions outside the normal course of business;
∙Reviewing judgements made by management in their calculation of accounting estimates for potential management bias, including estimates with regard to revenue recognition;
∙Enquiries of management about litigation and claims and inspection of relevant correspondence;
∙Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations, and;
∙Performing a disclosure checklist on the financial statements to ensure Companies Act 2006 requirements are satisfied.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SENTINEL OFFSHORE HOLDINGS LIMITED (CONTINUED)
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.
for and on behalf of
Statutory Auditor
Kingshill View
Prime Four Business Park
Kingswells
AB15 8PU
15 May 2026
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 39 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 39 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Sentinel Offshore Holdings Limited ('the company') is a private limited company domiciled and incorporated in Scotland. The registered office is The Exchange 1 Eighth Floor, 62 Market Street, Aberdeen, AB11 5PJ.
The group consists of Sentinel Offshore Holdings Limited and all of its subsidiaries (collectively known as 'the group'). The nature of the company's and group's operations and its principal activities are given within the Directors' Report on page 5.
2.Accounting policies
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The following principal accounting policies have been applied: The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Group has made a profit of £2,932,025 for the year ended 31 December 2025 (2024 - £1,105,329). The Group's principal KPI that is used to monitor performance is EBITDA (Earnings before interest, taxation, depreciation and amortisation) which was £14,616,964 for the year ended 31 December 2025 (2024 - £12,168,414). The Group had net assets of £76,964,497 (2024 - £70,609,879) at the balance sheet date.
During the year the 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 group to fund the capital commitments disclosed in Note 24. Therefore, at the time of approving the financial statements the directors have a reasonable expectation that the company and 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.
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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 income statement so as to produce a constant periodic rate of interest on the remaining balance of the liability.
The cost of short term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. The Group contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.
Page 22
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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.
Page 23
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
Page 24
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
Page 25
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Group 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 Group's Balance sheet when the Group 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
Discounting is omitted where the effect of discounting is immaterial. The Group'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.
Page 26
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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 27
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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.
Page 28
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 29
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 30
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent company for the year was £
Page 31
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 32
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
14.Tangible fixed assets (continued)
Page 33
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 34
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Subsidiary undertakings (continued)
Page 35
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 36
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The company has 5 loan facilities (2024 - 5), during the year all loan facilities have been extended and are now repayable quarterly up to December 2027. The loans bear interest at a rate of 3.15% above SONIA/SOFR.
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. Ltd. The cross company guarantee is in respect of total bank indebtedness which at the year ended amounted to the value of the bank term loan of £44,567,337 (2024 - £50,654,500). The bank funding has a 1st marine mortgage securities over the vessels which the group holds.
Page 37
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Profit and loss account
The group and company contributes to a defined contribution pension plan for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The charge to the profit and loss in respect of defined contribution schemes during the year was £
Page 38
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The company considers its ultimate beneficial owner to be
Page 39
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