REGISTERED NUMBER: 02226135 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 28th February 2025

for

MMS Ship Repair and Dry Dock Co. Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

18

DIRECTORS:

R S Langton

Mrs L Napierski

A G Marshall

SECRETARY:

Mrs L Napierski

REGISTERED OFFICE:

North East Corner

Alexandra Dock

Hull

East Yorkshire

HU9 1TA

REGISTERED NUMBER:

02226135 (England and Wales)

AUDITORS:

Sadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

BANKERS:

Virgin Money

214 Holderness Road

Kingston Shopping Centre

Hull

HU9 2AA

SOLICITORS:

Andrew M. Jackson

Essex House

Hull

HU1 1XH

The directors present their strategic report of the company and the group for the year ended 28th February 2025.

REVIEW OF BUSINESS

The key performance indicators of turnover, turnover growth and net profit before taxation communicate the financial performance of the group as a whole.

The key performance indicators for the last four years are as follows:

2025

2024

2023

2022

£

£

£

£

Turnover

7,136,957

6,262,896

7,020,459

5,457,068

Turnover Growth

13.96%

-10.79%

28.68%

-4.49%

Profit/ (loss) before tax

(167,220

)

91,488

727,942

184,202

Profit before tax margin

-2.34%

1.46%

10.37%

3.38%

Turnover of the main trading company operating the ship repair and dry dock facility increased by 10% due to strong demand. Effective management and cost control resulted in excellent trading results for the financial year. However

it was also necessary to impair the carrying value of a stock vessel by £1m to reflect current market value of the vessel in Europe. This impairment adjustment reduced the trading profit before tax of the ship repair division to £76,351.

Although turnover of the subsidiary company operating the offshore supply vessel fleet also increased the winter period of 2024/25 was very difficult with one vessel laid up. An opportunity arose to sell a converted barge which was not operating profitably and this sale brought valuable cash into the business. The sale resulted in a book loss of £370,781 which impacted on the trading result of the subsidiary company.

In the circumstances the directors are satisfied with the performance of the businesses within the group and the results for the financial year.

PRINCIPAL RISKS AND UNCERTAINTIES

The group's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds and finance the company's operations.

Price risk

Due to the well located and varied operations of the group, there is a minimal amount of price risk.

Foreign exchange risk

The group has a small amount of exposure to foreign exchange risks. These are considered to be an immaterial amount in the company's transactions.

Credit risk

The group has little experience of material bad debts in general and therefore does not consider credit risk to be significant.

Liquidity risk

The group's liquidity risk is managed by ensuring sufficient funds are available to meet amounts due and does not consider that liquidity poses a significant risk.

Interest rate and cash flow risk

The group had a favourable cash balance during the year and therefore does not consider that interest rates or cash flow pose a significant risk.

FUTURE DEVELOPMENTS

MMS are in a good position to benefit from continued increased demand for ship repair and dry dock bookings for 2026 are already mounting up. The facility is continually being updated and recent appointments have been made

to strengthen the management team to cope with the extra work.

Although finding regular work for the offshore fleet during the winter period is challenging there are firm enquiries in the pipeline and the opening of an office in Aberdeen has generated interest from wind farms off Scotland.

MMS Offshore continues to adapt vessels in the fleet in order to reduce emissions. The directors are expecting improved contribution from this subsidiary company.

ON BEHALF OF THE BOARD:

R S Langton - Director

20th November 2025

The directors present their report with the financial statements of the company and the group for the year ended 28th February 2025.

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of ship repairing, maintenance and fabrication, marine engineering, workboat building and hire of vessels.

DIVIDENDS

An interim dividend of £1515.15 per share was paid on 6th April 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 28th February 2025 will be £ 150,000 .

FUTURE DEVELOPMENTS

These details have been provided in the company's strategic report.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st March 2024 to the date of this report.

R S Langton

Mrs L Napierski

Other changes in directors holding office are as follows:

Mrs P Langton - resigned 4th November 2024

A G Marshall - appointed 8th April 2024

FINANCIAL INSTRUMENTS

The group's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds and finance the group's operations.

Revenue Maintenance

The group actively markets and manages its services to focus on revenue building and maintenance which can contribute to the future profits of the business.

Risks and uncertainties

These details have been provided in the group's strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Sadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R S Langton - Director

20th November 2025

Opinion

We have audited the financial statements of MMS Ship Repair and Dry Dock Co. Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 28th February 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 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 group's and of the parent company affairs as at 28th February 2025 and of the group's loss 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

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

-	the parent company 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 Statement of Directors' Responsibilities, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the manufacturing sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK tax legislation, and data protection, anti-bribery, employment, environmental, health and safety legislation along with industry specific regulations and requirements.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Alan Brocklehurst (Senior Statutory Auditor)

for and on behalf of Sadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

20th November 2025

TURNOVER

3

7,136,957

6,262,896

Cost of sales

4,842,882

4,231,934

GROSS PROFIT

2,294,075

2,030,962

Administrative expenses

2,309,939

1,804,320

OPERATING (LOSS)/PROFIT

5

(15,864

)

226,642

Interest receivable and similar income

18,893

12,569

3,029

239,211

Interest payable and similar expenses

6

170,249

147,723

(LOSS)/PROFIT BEFORE TAXATION

(167,220

)

91,488

Tax on (loss)/profit

7

(38,250

)

28,100

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(128,970

)

63,388

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(128,970

)

63,388

(Loss)/profit attributable to:

Owners of the parent

(128,970

)

63,388

Total comprehensive income attributable to:

Owners of the parent

(128,970

)

63,388

FIXED ASSETS

Tangible assets

10

6,874,495

7,873,743

Investments

11

-

-

6,874,495

7,873,743

CURRENT ASSETS

Stocks

12

2,464,476

3,327,648

Debtors

13

1,361,499

826,669

Cash at bank

1,233,600

540,657

5,059,575

4,694,974

CREDITORS

Amounts falling due within one year

14

1,557,668

1,319,948

NET CURRENT ASSETS

3,501,907

3,375,026

TOTAL ASSETS LESS CURRENT LIABILITIES

10,376,402

11,248,769

CREDITORS

Amounts falling due after more than one year

15

(2,240,500

)

(2,795,647

)

PROVISIONS FOR LIABILITIES

19

(888,842

)

(927,092

)

NET ASSETS

7,247,060

7,526,030

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

7,246,960

7,525,930

SHAREHOLDERS' FUNDS

7,247,060

7,526,030

The financial statements were approved by the Board of Directors and authorised for issue on 20th November 2025 and were signed on its behalf by:

R S Langton - Director

FIXED ASSETS

Tangible assets

10

2,573,502

2,654,412

Investments

11

200

200

2,573,702

2,654,612

CURRENT ASSETS

Stocks

12

2,464,476

3,327,648

Debtors

13

2,227,609

1,814,435

Cash at bank

940,492

299,799

5,632,577

5,441,882

CREDITORS

Amounts falling due within one year

14

981,046

797,612

NET CURRENT ASSETS

4,651,531

4,644,270

TOTAL ASSETS LESS CURRENT LIABILITIES

7,225,233

7,298,882

PROVISIONS FOR LIABILITIES

19

372,055

350,957

NET ASSETS

6,853,178

6,947,925

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

6,853,078

6,947,825

SHAREHOLDERS' FUNDS

6,853,178

6,947,925

Company's profit for the financial year

55,253

6,762

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

The financial statements were approved by the Board of Directors and authorised for issue on 20th November 2025 and were signed on its behalf by:

R S Langton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st March 2023

100

7,463,542

7,463,642

Changes in equity

Dividends

-

(1,000

)

(1,000

)

Total comprehensive income

-

63,388

63,388

Balance at 29th February 2024

100

7,525,930

7,526,030

Changes in equity

Dividends

-

(150,000

)

(150,000

)

Total comprehensive income

-

(128,970

)

(128,970

)

Balance at 28th February 2025

100

7,246,960

7,247,060

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st March 2023

100

6,942,063

6,942,163

Changes in equity

Dividends

-

(1,000

)

(1,000

)

Total comprehensive income

-

6,762

6,762

Balance at 29th February 2024

100

6,947,825

6,947,925

Changes in equity

Dividends

-

(150,000

)

(150,000

)

Total comprehensive income

-

55,253

55,253

Balance at 28th February 2025

100

6,853,078

6,853,178

Cash flows from operating activities

Cash generated from operations

1

1,356,313

1,022,436

Interest paid

(170,249

)

(147,723

)

Net cash from operating activities

1,186,064

874,713

Cash flows from investing activities

Purchase of tangible fixed assets

(78,950

)

(660,000

)

Sale of tangible fixed assets

402,475

-

Interest received

17,434

12,569

Net cash from investing activities

340,959

(647,431

)

Cash flows from financing activities

Capital repayments in year

(434,010

)

(432,039

)

Amount withdrawn by directors

(250,070

)

(138,645

)

Equity dividends paid

(150,000

)

(1,000

)

Net cash from financing activities

(834,080

)

(571,684

)

Increase/(decrease) in cash and cash equivalents

692,943

(344,402

)

Cash and cash equivalents at beginning of year

2

540,657

885,059

Cash and cash equivalents at end of year

2

1,233,600

540,657

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

(Loss)/profit before taxation

(167,220

)

91,488

Depreciation charges

307,417

379,172

Loss on disposal of fixed assets

368,306

-

Finance costs

170,249

147,723

Finance income

(18,893

)

(12,569

)

659,859

605,814

Decrease in stocks

863,172

454,656

Increase in trade and other debtors

(402,616

)

(19,287

)

Increase/(decrease) in trade and other creditors

235,898

(18,747

)

Cash generated from operations

1,356,313

1,022,436

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 28th February 2025

28/2/25

1/3/24

£

£

Cash and cash equivalents

1,233,600

540,657

Year ended 29th February 2024

29/2/24

1/3/23

£

£

Cash and cash equivalents

540,657

885,059

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/3/24

Cash flow

At 28/2/25

£

£

£

Net cash

Cash at bank

540,657

692,943

1,233,600

540,657

692,943

1,233,600

Debt

Debts falling due within 1 year

(328,320

)

(121,137

)

(449,457

)

Debts falling due after 1 year

(2,795,647

)

555,147

(2,240,500

)

(3,123,967

)

434,010

(2,689,957

)

Total

(2,583,310

)

1,126,953

(1,456,357

)

1.	STATUTORY INFORMATION

MMS Ship Repair and Dry Dock Co. Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General 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" 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, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold

-

in accordance with the property

Improvements to property

-

in accordance with the property

Plant and machinery

-

33% on cost, 20% on cost and 15% on reducing balance

Fixtures and fittings

-

33% on cost and 15% on reducing balance

Motor vehicles

-

25% on reducing balance and 25% on cost

Catamaran Support Vessel

-

33% on cost and straight line over 30 years

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

3.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the principal activities of the group.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Repairs, maintenance and build

4,285,734

3,597,430

Hire of vessels

2,851,223

2,665,466

7,136,957

6,262,896

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,507,987

2,302,809

Social security costs

263,002

245,424

Other pension costs

48,818

36,377

2,819,807

2,584,610