ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

Registered number: SC049538

WELDEX (INTERNATIONAL) OFFSHORE LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

COMPANY INFORMATION

Directors	Dugald M McGilvray
	Catherine A McGilvray
	Margaret J McGilvray
	Iain M McGilvray


Registered number	SC049538


Registered office	18-20 Harbour Road
	Inverness
	IV1 1UA


Independent auditors	AAB Audit & Accountancy Limited
	Kingshill View
	Prime Four Business Park
	Kingswells
	Aberdeen
	AB15 8PU


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3
Directors' responsibilities statement	4
Independent auditors' report	5 - 8
Statement of comprehensive income	9
Balance sheet	10
Statement of changes in equity	11
Notes to the financial statements	12 - 26


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 30 NOVEMBER 2025

Introduction

The directors present their strategic report for the year ended 30 November 2025.

Business review

The principal activity of the company during the year was the hire and supply of cranes, lifting equipment and labour.

The company has traded profitably and the Directors are pleased with the results.

The profit for the year, before taxation, amounted to £1,567k (2024 - £2,507k). As at 30 November 2025 the company had net assets of £28,405k (2024 - £26,975k).

The company is the largest crawler crane hire company in the UK. The crane fleet includes cranes ranging from 40t to 1,350t capacity.

By continuing to reinvest in its fleet the company ensures that it has a very modern fleet of cranes allowing it to offer clients the most up to date equipment.

The directors believe the company is well placed to provide services to the renewable, oil and gas and construction sectors.

Principal risks and uncertainties

Competition - the company continually invests in new equipment to ensure it can offer clients a wide range of the most up to date equipment, thereby ensuring it stays ahead of its competitors.

Liquidity risk - the company's principal financial instruments are bank balances and hire purchase funding. These are used to raise funds for the company's capital expenditure requirements and to finance the company's ongoing operations.

Credit risk - trade debtors are monitored daily to ensure limits are adhered to. Clear policies are in place for new clients.

Financial key performance indicators

A range of financial and non-financial Key Performance Indicators are reviewed by the Board including those relating to Turnover, Gross Margin and Employee Numbers.

	2025	2024	Measure

Financial
Turnover	22.5	23.6	£millions
Gross profit margin	56	62	Gross profit/ turnover (%)

Non-financial
Employee numbers	92	96	Number of employees

Page 1


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 30 NOVEMBER 2025

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

Margaret J McGilvray

Director

Date: 20 August 2026

Page 2


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 NOVEMBER 2025

The directors present their report and the financial statements for the year ended 30 November 2025.

Results and dividends

The profit for the year, before taxation, amounted to £1,567k (2024 - profit £2,507k).

Directors

The directors who served during the year were:

Dugald M McGilvray

Catherine A McGilvray

Margaret J McGilvray

Iain M McGilvray

Future developments

The directors continue to look for opportunities to grow the business where possible.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and

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

Auditors

The auditors, AAB Audit & Accountancy Limited, are deemed to be reappointed in accordance with section 386 of the Companies Act 1985 by virtue of an elective resolution passed by the members on 17 December 2018.

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

Margaret J McGilvray

Director

Date: 20 August 2026

Page 3


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 30 NOVEMBER 2025

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the company's financial statements and then apply them consistently;

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

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE LIMITED

Opinion

We have audited the financial statements of Weldex (International) Offshore Limited (the 'company') for the year ended 30 November 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting 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 our opinion the financial statements:

∙give a true and fair view of the state of the company's affairs as at 30 November 2025 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 5


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE LIMITED (CONTINUED)

Other information

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

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

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

∙certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

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

Page 6


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We 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 Employment, Health and Safety and Taxation legislation plus the Companies Act 2006.

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 group and parent company's key performance indicators to meet targets;

∙Timing and completeness of revenue recognition;

∙Management judgement applied in calculating estimates and provisions; and

∙Compliance with relevant laws and regulations which directly impact the financial statements and those that the group and parent company needs to comply with for the purpose of trading.

Our audit procedures in response 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;

∙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.

Page 7


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WELDEX (INTERNATIONAL) OFFSHORE LIMITED (CONTINUED)

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.

James Pirrie (Senior statutory auditor)

for and on behalf of

AAB Audit & Accountancy Limited

Statutory Auditor

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU

20 August 2026

Page 8


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 NOVEMBER 2025

	2025	2024
Note	£000	£000


Turnover	4	22,545	23,631
Cost of sales		(9,352)	(9,089)
Gross profit		13,193	14,542
Administrative expenses		(9,819)	(9,632)
Operating profit	5	3,374	4,910
Interest receivable and similar income	9	21	78
Interest payable and expenses	10	(1,828)	(2,481)
Profit before tax		1,567	2,507
Tax on profit	11	(137)	(656)
Profit for the financial year		1,430	1,851

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

The notes on pages 12 to 26 form part of these financial statements.

Page 9


WELDEX (INTERNATIONAL) OFFSHORE LIMITED REGISTERED NUMBER:SC049538

BALANCE SHEET

AS AT 30 NOVEMBER 2025

		2025		2024
Note		£000		£000

Fixed assets
Tangible assets	12		66,592		70,139
			66,592		70,139
Current assets
Stocks	13	220		222
Debtors: amounts falling due within one year	14	4,402		5,557
Cash at bank and in hand	15	3,551		2,085
		8,173		7,864
Creditors: amounts falling due within one year	16	(5,040)		(4,709)
Net current assets			3,133		3,155
Total assets less current liabilities			69,725		73,294
Creditors: amounts falling due after more than one year	17		(25,983)		(31,119)
Provisions for liabilities
Deferred tax	19	(15,337)		(15,200)
			(15,337)		(15,200)
Net assets			28,405		26,975

Capital and reserves
Called up share capital	20	25	25
Share premium account	21	515	515
Capital redemption reserve	21	815	815
Profit and loss account	21	27,050	25,620
		28,405	26,975

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

Margaret J McGilvray

Director

Date: 20 August 2026

The notes on pages 12 to 26 form part of these financial statements.

Page 10


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 NOVEMBER 2025

	Called up share capital	Share premium account	Capital redemption reserve	Profit and loss account	Total equity
	£000	£000	£000	£000	£000
At 1 December 2023	25	515	815	23,769	25,124

Total comprehensive income for the year	-	-	-	1,851	1,851

At 1 December 2024	25	515	815	25,620	26,975

Total comprehensive income for the year	-	-	-	1,430	1,430
At 30 November 2025	25	515	815	27,050	28,405

The notes on pages 12 to 26 form part of these financial statements.

Page 11


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

1.	General information

Weldex (International) Offshore Limited (the `company`) is a private company incorporated, domiciled and registered in Scotland. The registered number is SC049538 and the registered address is 18-20 Harbour Road, Inverness, Scotland, IV1 1UA.

The principle activity of the business is the hire and supply of cranes, lifting equipment and labour.

2.Accounting policies

2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; and

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Weldex (International) Offshore Holdings Limited as at 30 November 2024 and these financial statements may be obtained from 18-20 Harbour Road, Inverness, Scotland, IV1 1UA.

Page 12


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

2.Accounting policies (continued)

2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months, following the date of approval of these financial statements. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The Groups asset-based lending facility (ABL) is due for renewal in September 2026. Subsequent to the year end, the Group received credit approval from its principal lender for the refinancing of the ABL facility for a further three-year term on agreed commercial terms. At the date of approval of these financial statements, the refinancing documentation is in the process of being completed. The Directors have received confirmation of the lender's approval and have no reason to believe that the refinancing will not complete as expected. The Directors have therefore considered the anticipated refinancing in their assessment of the Group's ability to continue as a going concern. In addition, the lender has approved the release of certain security previously provided in support of the Group's borrowing arrangements.

As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

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

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

2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Page 13


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

2.Accounting policies (continued)

2.6

Operating leases: the company as lessee

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

2.7

Leased assets: the company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.8

Interest income

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

2.9

Finance costs

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

2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.11

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 14


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

2.Accounting policies (continued)

2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

2.13

Tangible fixed assets

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

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

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:

Freehold property	-	2%	per annum on a straight line basis
Plant and machinery - Cranes	-	5%	per annum on a straight line basis
Plant and machinery - Other	-	25%	per annum on reducing balance basis
Motor vehicles	-	25%	per annum on reducing balance 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 15


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

2.Accounting policies (continued)

2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.15

Debtors

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

2.16

Cash and cash equivalents

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

2.17

Creditors

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

2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.19

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

Page 16


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments (continued)

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 17


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments (continued)

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported during the year for revenue and costs. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgements and estimates have had the most significant impact on amounts recognised in the financial statements:

Fixed asset impairment

The carrying amounts of the company's assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. 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 the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the `cash generating unit` (`CGU`)).

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss.

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Fixed asset depreciation

Depreciation is calculated using the straight line method for freehold property, and reducing balance for motor vehicles and plant & machinery, with the exception of Cranes which are depreciated using the straight line method.

It is company policy to review annually; the assets residual value, useful life and depreciation method. Appropriate adjustments will be made if there is a significant change since the last reporting date.

Page 18


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

Turnover

All turnover in the current and prior year is attributable to the company's principal activity.

Analysis of turnover by country of destination:

					2025	2024
					£000	£000

United Kingdom	22,545	23,631
	22,545	23,631

Depreciation of tangible fixed assets	6,048	5,883
Exchange differences	(17)	(2)
Other operating lease rentals	30	30
(Gain)/loss on disposal of tangible fixed assets	(133)	(82)

6.	Auditors' remuneration
		2025	2024
		£000	£000

Fees payable to the company's auditors for the audit of the company's financial statements	31	30
Fees payable to the company's auditors in respect of:
Preparation of financial statements	3	3
Non audit services - taxation compliance services	7	6

Page 19


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

Wages and salaries	6,188	6,303
Social security costs	761	669
Cost of defined contribution scheme	343	326
	7,292	7,298

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

	2025	2024
	No.	No.

Operational	70	75
Administrative	22	21

	92	96

8.	Directors' remuneration
		2025	2024
		£000	£000

Directors' emoluments	890	867
Company contributions to defined contribution pension schemes	20	20
	910	887

During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £274k (2024 - £269k).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £10k (2024 - £10k).

9.	Interest receivable
		2025	2024
		£000	£000

	Other interest receivable	21	78
		21	78

Page 20


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

10.	Interest payable and similar expenses
		2025	2024
		£000	£000

	Bank interest payable	1,828	2,481
		1,828	2,481

Deferred tax
Origination and reversal of timing differences	137	656
Total deferred tax	137	656


	Taxation on profit on ordinary activities	137	656

Profit on ordinary activities before tax

1,567

2,507

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	393	627
Effects of:
Expenses not deductible for tax purposes	(115)	(206)
Fixed asset differences	9	8
Adjustments to tax charge in respect of prior periods	-	108
Adjustments to tax charge in respect of previous periods - deferred tax	(2)	117
Group Relief	(148)	-
Other permanent differences	-	2
Total tax charge for the year	137	656

Page 21


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

12.	Tangible fixed assets

	Freehold property	Plant and machinery	Motor vehicles	Total
	£000	£000	£000	£000
Cost or valuation
At 1 December 2024	2,781	116,569	576	119,926
Additions	-	4,057	129	4,186
Disposals	-	(4,142)	(99)	(4,241)
At 30 November 2025	2,781	116,484	606	119,871
Depreciation
At 1 December 2024	985	48,473	329	49,787
Charge for the year on owned assets	55	5,912	81	6,048
Disposals	-	(2,472)	(84)	(2,556)
At 30 November 2025	1,040	51,913	326	53,279
Net book value
At 30 November 2025	1,741	64,571	280	66,592
At 30 November 2024	1,796	68,096	247	70,139

Page 22


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

13.	Stocks
		2025	2024
		£000	£000

Raw materials and consumables	220	222
	220	222

14.

Debtors

					2025	2024
					£000	£000


Trade debtors	2,901	3,585
Amounts owed by group undertakings	1,055	1,055
Other debtors	397	842
Prepayments and accrued income	49	75
	4,402	5,557

Amounts owed by group undertakings are interest free and repayable on demand.

Trade debtors are stated after provisions for impairment of £71k (2024: £140k).

15.	Cash and cash equivalents
		2025	2024
		£000	£000

Cash at bank and in hand	3,551	2,085
	3,551	2,085

Page 23


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

16.	Creditors: Amounts falling due within one year
		2025	2024
		£000	£000

Trade creditors	1,056	1,083
Amounts owed to group undertakings	869	819
Corporation tax	-	108
Other taxation and social security	203	201
Other creditors	2,327	1,981
Accruals and deferred income	585	517
	5,040	4,709

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

17.	Creditors: Amounts falling due after more than one year
		2025	2024
		£000	£000

Other loans	25,983	31,119
	25,983	31,119

Other loans	25,983	31,119
	25,983	31,119

The bank loans represents an Asset Based Loan (`ABL`). The ABL is secured over the fixed assets to which it relates and attracts an interest rate of 1.95% above the Bank of England base rate. The ABL operates on a rolling basis with no fixed repayment terms but a borrowing ceiling based on the market value of assets held by the company.

The facility is due for renewal in September 2026. Subsequent to the year end, the Group received credit approval from its principal lender for the refinancing of the ABL facility for a further three-year term on agreed commercial terms. At the date of approval of these financial statements, the refinancing documentation is in the process of being completed. The Directors have received confirmation of the lender's approval and have no reason to believe that the refinancing will not complete as expected.

Page 24


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

19.	Deferred taxation

	2025	2024
	£000	£000

At beginning of year	(15,200)	(14,652)
Charged to profit or loss	(137)	(548)
At end of year	(15,337)	(15,200)

The provision for deferred taxation is made up as follows:
	2025	2024
	£000	£000

Accelerated capital allowances	(15,200)	(15,577)
Short term timing differences	(139)	13
Over/(under) provided	2	-
Tax losses	-	364
	15,337	15,200

20.	Share capital
		2025	2024
		£000	£000

Allotted, called up and fully paid

24,742 (2024 - 24,742) Ordinary shares shares of £1.00 each	25	25

21.

Reserves

Share premium account

This reserve records the amount above nominal value received in respect of the company's share capital.

Capital redemption reserve

This reserve records the amounts which are transferred following the redemption or purchase of a company's own shares out of distributable profits.

Profit and loss account

This reserve records the accumulated distributable profits and losses made by the group and parent company net of distributions to shareholders.

Page 25


WELDEX (INTERNATIONAL) OFFSHORE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

22.	Guarantees and security

The bank retains a mixture of floating and fixed charges over the assets of the company.

Subsequent to the re-financing above, post year end, the lender has approved the release of certain security previously provided on property owned by the Group.

23.	Pension commitments

The company operates a defined contribution pension plan. The total expense relating to these plans in the current year was £343k (2024 - £325k). Outstanding contributions accrued at the year end amounted to £nil (2024 - £nil).

	Not later than 1 year	30	30
		30	30

25.

Related party transactions

The company has taken advantage of the exemption, in FRS 102 Section 33, from disclosing related party transactions with other companies that are wholly owned by the group headed by Weldex (International) Offshore Holdings Limited.

During the year, the company recharged expenses of £5k (2024 - £3k) to entities under common ownership. At the year end the amounts outstanding were £nil (2024 - £nil).

During the year, the company also paid rental expenses of £55k (2024 - £30k) to a company under common ownership. At the year end the amounts outstanding were £nil (2024 - £nil).

26.	Controlling party

The company is a subsidiary undertaking of Weldex (International) Offshore Holdings Limited which is the immediate controlling party and is incorporated in Scotland.

The ultimate controlling party is the McGilvray family.

The only group in which the results of the company are consolidated is that headed by Weldex (International) Offshore Holdings Limited. The consolidated financial statements of this group are available to the public and may be obtained from 18-20 Harbour Road, Inverness, Scotland, IV1 1UA.

Page 26