REGISTERED NUMBER: SC370985 (Scotland)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

PHOENIX DRILLING LTD.

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

Mr S H Glover

REGISTERED OFFICE:

2 Nairn Road

Deans

Livingston

EH54 8AY

REGISTERED NUMBER:

SC370985 (Scotland)

ACCOUNTANTS:

S&W Partners (Scotland) Limited

Wallace House

Maxwell Place

Stirling

FK8 1JU

FIXED ASSETS

Tangible assets

4

1,427,886

1,060,476

CURRENT ASSETS

Stocks

5

659,455

623,891

Debtors

6

2,313,763

952,553

Cash at bank

6,569

58,810

2,979,787

1,635,254

CREDITORS

Amounts falling due within one year

7

(2,280,213

)

(1,594,206

)

NET CURRENT ASSETS

699,574

41,048

TOTAL ASSETS LESS CURRENT LIABILITIES

2,127,460

1,101,524

CREDITORS

Amounts falling due after more than one year

8

(728,930

)

(558,883

)

PROVISIONS FOR LIABILITIES

11

(210,258

)

(160,828

)

NET ASSETS

1,188,272

381,813

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

1,188,172

381,713

1,188,272

381,813

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2025 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the director and authorised for issue on 31 July 2026 and were signed by:

Mr S H Glover - Director

1.	STATUTORY INFORMATION

Phoenix Drilling Ltd. is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

TURNOVER

Turnover is measured at the fair value of the consideration received or receivable in relation to test drilling, excluding value added tax. Turnover is recognised when services are performed.

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% per annum reducing balance and 10% on reducing balance

Fixtures and fittings

-

25% per annum reducing balance

Motor vehicles

-

25% per annum reducing balance

Computer equipment

-

33% per annum on cost

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

STOCKS

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the

present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

HIRE PURCHASE AND LEASING COMMITMENTS

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 41 (2024 - 31 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2025

1,539,308

26,900

607,036

31,615

2,204,859

Additions

402,364

6,438

167,607

13,563

589,972

At 31 December 2025

1,941,672

33,338

774,643

45,178

2,794,831

DEPRECIATION

At 1 January 2025

788,108

20,842

310,383

25,050

1,144,383

Charge for year

123,442

2,573

90,869

5,678

222,562

At 31 December 2025

911,550

23,415

401,252

30,728

1,366,945

NET BOOK VALUE

At 31 December 2025

1,030,122

9,923

373,391

14,450

1,427,886

At 31 December 2024

751,200

6,058

296,653

6,565

1,060,476

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 1 January 2025

225,000

239,122

10,906

475,028

Additions

240,000

166,774

-

406,774

Transfer to ownership

-

(47,168

)

-

(47,168

)

Reclassification/transfer

431,811

251,589

-

683,400

At 31 December 2025

896,811

610,317

10,906

1,518,034

DEPRECIATION

At 1 January 2025

-

48,367

5,398

53,765

Charge for year

52,501

64,203

3,599

120,303

Transfer to ownership

-

(36,183

)

-

(36,183

)

Reclassification/transfer

308,432

183,418

-

491,850

At 31 December 2025

360,933

259,805

8,997

629,735

NET BOOK VALUE

At 31 December 2025

535,878

350,512

1,909

888,299

At 31 December 2024

225,000

190,755

5,508

421,263

5.

STOCKS

2025

2024

£

£

Stocks

659,455

623,891

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

2,262,941

813,861

Other debtors

50,822

138,692

2,313,763

952,553

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts

656,899

627,334

Hire purchase contracts (see note 9)

274,526

185,474

Trade creditors

486,974

194,445

Taxation and social security

655,016

463,341

Other creditors

206,798

123,612

2,280,213

1,594,206

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Hire purchase contracts (see note 9)

728,930

558,883

9.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

Hire purchase

contracts

2025

2024

£

£

Net obligations repayable:

Within one year

274,526

185,474

Between one and five years

728,930

558,883

1,003,456

744,357

As at the balance sheet date the total minimum lease payments due under non-cancellable operating leases amounted to £33,750 (2024: £78,750).

10.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Invoice factoring

656,899

494,256

Advantedge Commercial Finance (North) Ltd hold a floating charge over all the property and undertakings of the company.

11.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

210,258

160,828

Deferred

tax

£

Balance at 1 January 2025

160,828

Provided during year

49,430

Balance at 31 December 2025

210,258

12.	RELATED PARTY DISCLOSURES

Included within 'Other creditors' are loans of £123,368 (2024: £104,368) due to the director.

Included within 'Other debtors' are loans of £Nil (2024: £121,265) due from a company in which the director holds an interest. During the year these loans were written off and included within bad debts.

These loans are interest free and no fixed terms of repayment have been agreed.