The directors present their strategic report for the year ended 31 October 2025.

The principal activity of the company continued to be that of ship owners, ship charterers, ship brokers and other maritime related services. During 2025 the company had vessels in the UK, Europe & the Middle East.

In line with company strategy to periodically upgrade and modernise the fleet, the company received strong commercial offers and subsequently sold three vessels in January and one vessel in July 2025. The funds received from the sales were used to reduce debt levels.

Trading was similar in 2025 as demand within our key markets, offshore renewables and oil/gas, continues due to a shortage of vessels available. Vessel utilisation decreased to 88% during the year, compared with 91% the previous year. The decrease was largely due to long term contracts ending. Total revenue for the year was €24.3m (2024 €24.8m). This reduction is due to the disposal of four vessels in the year. Despite the slight decrease in revenue, the gross profit percentage increased to 54% (2024 - 50%). The directors regard operating profit as a more appropriate measure, as profit after interest can be affected by foreign exchange movements on bank borrowings. The company made an operating profit of €5.8m in 2025 (2024 - €3.8m) and has net assets of €25.5m (2024 - €21.7m). This increase is largely due to the gain on sale of vessels in the year.

The principal risks and uncertainties faced by the company are the current global economic market conditions and fluctuating exchange rates. The company is exposed in its trading operations to the risk of changes in foreign currency exchange rates. The main currencies in which the company operates are the Pound, US Dollar, and the Euro. This risk is monitored on a regular basis. Oil price movements are also a concern as they are likely to impact the level of activity in Middle East. Longer term contracts reduce exposure to this risk.

Other potential risks include interest rate risks, availability of credit and restrictions on movement of people.

The directors continually review and identify business risk to manage these and minimise business exposure.

The company has no current planned or future developments, but will continue to assess opportunities to improve financial performance and operational efficiencies as they arise. The company is always looking to refresh the fleet where opportunities arise and two new Swath vessels are currently under construction and are expected to be delivered during 2026 and 2027.

The company uses the level of enquiries for future contracts as the main key performance indicator to monitor its activities. Other key performance indicators of the company are profitability and vessel utilisation, both of which, have been commented on in the fair review of the business.

On behalf of the board

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

The principal activity of the company continued to be that of ship owners, ship charterers, ship brokers and other maritime related services.

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

Ordinary dividends were declared amounting to €899,835 (2024 - €129,030). This comprises dividends paid of €412,228 (2024 - €129,030) and unpaid dividends of €487,607 (2024 - nil) that were declared and credited to the director loan accounts.

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

The company does not currently have in place derivatives for either financial risk management or for speculative purposes. The company's financial risk management objectives, policies and exposure to financial risks are not considered material for the assessment of the company's assets, liabilities, financial position or result for the year and as such, no further disclosure is considered necessary.

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments (where applicable).

The company has reported a profit after tax of €4,708,348 (2024 - €2,146,118), has net current assets of €1,091,521 (2024 – net current liabilities of €6,204,654) and net assets of €25,505,860 (2024 - €21,697,347) for the year ended 31 October 2025. The financial statements have been prepared on a going concern basis following a detailed assessment of the company’s liquidity, current trading and future outlook. The directors assessment involved preparing cash flow projections that cover the period to October 2028.  A key assumption underpinning the projections are the company having continued access to sufficient funding facilities from the company’s Lender’s.

The company has financing facilities covering a 5 year term with a maturity date of 14 August 2029. These facilities provide the company with sufficient funding to support the company’s operational needs and strategic objectives.  The projections assume that the company will introduce new vessels to the fleet during 2026 with build funding in place to support the remaining financing of the builds.

The directors understand that the projections are by their nature inherently uncertain, however the directors are satisfied the company can navigate the impact of any plausible downside scenarios on the company’s cashflow requirements from its existing loan facilities.

Based on current trading projections and the company having continued access to sufficient borrowing and working capital facilities, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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

The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

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

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

We have audited the financial statements of Maritime Craft Services (Clyde) Limited (the 'company') for the year ended 31 October 2025 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, 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 FRS 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 October 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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report.

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

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

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

• certain disclosures of Directors’ remuneration specified by law are not made; or

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

As explained more fully in the Directors’ responsibilities statement set out on page 4, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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 assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

• Companies Act 2006;

• UK Tax legislation; and

• UK Generally Accepted Accounting Practice.

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns, external inspections, relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

• Management override of controls; and

• Revenue recognition.

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

• Reviewing minutes of meetings of those charged with governance for reference to: breaches of laws and regulation or for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud;

• Reviewing the level of and reasoning behind the company’s procurement of legal and professional services;

• Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by management in their calculation of accounting estimates for potential management bias;

• Performing audit procedures over revenue cut-off, by agreeing source documentation to the accounting records, to ensure that sales have been accurately recorded;

• Completion of appropriate checklists and use of our experience to assess the Company’s compliance with the Companies Act 2006; and

• Agreement of the financial statement disclosures to supporting documentation.

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

There are no items of other comprehensive income in the current or prior financial period.

Maritime Craft Services (Clyde) Limited is a private company limited by shares incorporated in Scotland. The registered office is Maritime House, 69-71 Main Road, FAIRLIE, KA29 0AD. The company's registered number is SC063205.

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

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

The financial statements have been prepared under the historical cost convention modified to include certain vessels carried at deemed cost. The principal accounting policies adopted are set out below.

As outlined at note 14, the company has taken advantage of the option to exclude immaterial subsidiary undertakings when assessing the requirement to prepare consolidated financial statements in accordance with s399 of the Companies Act 2006.

The company has reported a profit after tax of €4,708,348 (2024 - €2,146,118), has net current assets of €1,091,521 (2024 – net current liabilities of €6,204,654) and net assets of €25,505,860 (2024 - €21,697,347) for the year ended 31 October 2025.true The financial statements have been prepared on a going concern basis following a detailed assessment of the company’s liquidity, current trading and future outlook. The directors assessment involved preparing cash flow projections that cover the period to October 2028.  A key assumption underpinning the projections are the company having continued access to sufficient funding facilities from the company’s Lender’s.

The company has financing facilities covering a 5 year term with a maturity date of 14 August 2029. These facilities provide the company with sufficient funding to support the company’s operational needs and strategic objectives.  The projections assume that the company will introduce new vessels to the fleet during 2026 with build funding in place to support the remaining financing of the builds.

The directors understand that the projections are by their nature inherently uncertain, however the directors are satisfied the company can navigate the impact of any plausible downside scenarios on the company’s cashflow requirements from its existing loan facilities.

Based on current trading projections and the company having continued access to sufficient borrowing and working capital facilities, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents amounts receivable for vessel hire and other maritime related services, stated net of VAT and trade discounts. Turnover for vessel hire is recognised on an accruals basis.

Tangible fixed assets are initially measured at cost or deemed cost and subsequently measured at cost or deemed cost, net of depreciation and any impairment losses. An explanation of certain assets held at deemed cost is outlined in note 12.

Depreciation is provided at rates calculated to write off the cost or deemed cost less estimated residual value of each asset over its expected useful life, as follows:

Assets in the course of construction are not depreciated until they come into use.

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

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the statement of comprehensive income.

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

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

At each reporting period end date, the company 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.

Stocks are stated at the lower of cost and net realisable value. Cost comprises direct materials. Net realisable value is calculated as estimated selling price less costs to complete and sell.

The cost of stock is calculated on a first in, first out basis.

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

Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

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

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

Financial assets are initially measured at transaction price (including transaction costs) and subsequently held at amortised cost, less any impairment.

Financial assets are assessed for indicators of impairment at each reporting end date.

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

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

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities are initially measured at transaction price (after deducting transaction costs) and subsequently held at amortised cost.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

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

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

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

The costs of short-term employee benefits are recognised as a liability and an expense.

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

The pension scheme contributions are in respect of defined contribution schemes, the assets of which are held separately from those of the company. The pension cost charge represents the contributions payable for the year.

Monetary assets and liabilities denominated in foreign currencies are translated into Euros at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the statement of comprehensive income. Currency exchange differences on bank borrowings denominated in a currency other than Euros are presented within interest payable or receivable as applicable.

Exceptional items

Exceptional items comprise costs which the directors consider material (either by their nature or amount) to the statement of comprehensive income and where separate disclosure is necessary for an appropriate understanding of the company's financial performance.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Vessels are depreciated over their useful lives taking into account residual values (30% of cost), where appropriate. The actual lives of the assets and residual values are assessed on a periodic basis and may vary depending on a number of factors. In re-assessing useful lives, factors such as market trends, vessel durability and vessel demand are taken into account. Residual value assessments consider issues such as future market conditions, the remaining useful life of the asset and projected disposal value.

In addition to performing an assessment over the useful lives and residual values of vessels, the directors periodically review the fleet for any indicators of impairment, This involves an assessment of the recoverable amount of each vessel, being the higher of the anticipated fair value less cost to sell and its value in use.

The carrying amount of vessels at the reporting end date is set out at note 12.

Recoverability of trade debtors is assessed by management reviewing aged debts and assessing against normal expected payment terms. A provision is recognised when recoverability of trade debtors is in doubt. At the year-end, no provision (2024: no provision) was deemed necessary by management.

An analysis of the company's turnover is as follows:

Exceptional items in the prior year related to one off, non-recurring costs associated with two of the company's vessels which came into service during that year.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 3).

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

Included with tangible fixed assets above are vessels (including those under construction) with a carrying value of €64,038,279 (2024: €63,740,664) which are pledged as security over bank borrowings.

Included in assets under construction are two vessels expected to be delivered; one in 2026 and another in Spring 2027. Assets under construction also include €609,870 (2024: €Nil) in respect of borrowing costs capitalised which represent 100% of the directly attributable borrowing costs incurred on the assets under construction.

In accordance with the transitional provisions of FRS 102, an election was made to revalue vessels owned by the company at the date of transition to their fair value and to treat these values as deemed cost from the transition date. The date of transition was 1 November 2014.

Details of the company's subsidiaries at 31 October 2025 are as follows:

The registered address of MCS Projects FZ-LLC is MCS Projects FZ-LLC, RAK Amenity Building (RAKEZ), Tower 2, Level 6, Room No. 6E, Al Hamra, Al Jazeera, Ras Al Khaimah, United Arab Emirates.

The company has taken advantage of the option to exclude immaterial subsidiary undertakings when assessing the requirement to prepare consolidated financial statements in accordance with s399 of the Companies Act 2006. The option to exclude immaterial subsidiaries is available under s405(2) of the Companies Act 2006 and having regarded MCS Projects FZ-LLC as an immaterial subsidiary, the company has prepared standalone financial statements for the company only.

The comparative year bank loans and overdrafts stated above included a loan of €6.5m which was presented as falling due within one following a breach in one of the financial covenants attached to the loan during the prior reporting period (which was as a result of exceptional operating costs). The covenant breach was remedied by a waiver during the current year and before the financial statements for the prior year were authorised. There was no change to the terms or conditions of the loan as a result of the covenant breach and the loan remains payable by instalments over a 10 year period as outlined at note 19.

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

Bank loans and overdrafts are secured by a bond and floating charge over the company's assets and ship mortgages over the vessels.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company has one class of ordinary shares that carry equal voting rights and no rights to fixed income.

Capital redemption reserve represents amounts retained as fixed capital following redemption of share capital under companies legislation.

Other reserves represent the resulting surplus from an election made to revalue vessels on transition to FRS 102. The revaluation is being released over the remaining useful life of the vessels.

Profit and loss reserves represent accumulated comprehensive income or expenditure for the year and prior periods less dividends paid.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

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

Key management personnel remuneration

The directors regard key management as being those individuals who held office as directors during the reporting period. Details of directors' remuneration charged in the reporting period is outlined at note 7.

Other information

The company has taken advantage of disclosure exemptions available under Section 33 of FRS 102 whereby it has not disclosed transactions entered into with any wholly-owned subsidiary.

The company is controlled by the directors, who are its shareholders.