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PSI GROUP SERVICES LIMITED |
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PREVIOUSLY KNOWN AS |
PETROSAUDI INTERNATIONAL (UK) LIMITED |
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Audited Financial Statements |
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for the Year Ended 31 December 2018 |
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PSI GROUP SERVICES LIMITED |
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PREVIOUSLY KNOWN AS |
PETROSAUDI INTERNATIONAL (UK) LIMITED |
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Audited Financial Statements |
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for the Year Ended 31 December 2018 |
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PSI GROUP SERVICES LIMITED (REGISTERED NUMBER: 06822985) |
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Contents of the Financial Statements |
for the year ended 31 December 2018 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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PSI GROUP SERVICES LIMITED |
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Company Information |
for the year ended 31 December 2018 |
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Director: |
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Registered office: |
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Registered number: |
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Auditors: |
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Chartered Accountants & Statutory Auditor |
New Derwent House |
69-73 Theobalds Road |
London |
WC1X 8TA |
PSI GROUP SERVICES LIMITED (REGISTERED NUMBER: 06822985) |
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Balance Sheet |
31 December 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 4 |
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Current assets |
Debtors | 5 |
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Cash at bank |
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Creditors |
Amounts falling due within one year | 6 |
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Net current assets |
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Total assets less current liabilities |
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Capital and reserves |
Called up share capital | 7 |
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Retained earnings | 8 |
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Shareholders' funds |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the director on
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PSI GROUP SERVICES LIMITED (REGISTERED NUMBER: 06822985) |
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Notes to the Financial Statements |
for the year ended 31 December 2018 |
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1. | Statutory information |
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PSI Group Services Limited is a private company incorporated in England and Wales. The address of the |
registered office is 200 Strand, London, WC2R 1DJ. |
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2. | Accounting policies |
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Basis of preparing the financial statements |
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The financial statements have been prepared under the historical cost convention and in accordance with |
applicable accounting standards, on a going concern basis. |
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Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party |
transactions with wholly owned subsidiaries within the group. |
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Significant judgements and estimates |
The preparation of financial statements in conformity with generally accepted accounting practice requires |
management to make estimates and judgement that affect the reported amounts of assets and liabilities as well |
as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of |
revenues and expenses during the reporting period. |
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There is estimation uncertainty in calculating bad debt provisions in relation to third party and intercompany |
debts. A full review of debtors has been carried out and whilst every attempt is made to ensure that the bad |
debt provisions are as accurate as possible, there remains a risk that the provision do not match the level of |
debts which ultimately prove to be uncollectable. The potential risk of this is considered to be low. |
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Turnover |
Turnover is derived entirely from its parent company and fellow group subsidiaries. The turnover represents all |
the company's cost plus a 5-8% mark up. |
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Tangible fixed assets |
Short-term leasehold property | Over the life of the lease |
Motor vehicles | 33.3% straight line |
Fixtures and fittings | 13.3% - 20% straight line |
Computer Equipment | 20% - 33.3% straight line |
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PSI GROUP SERVICES LIMITED (REGISTERED NUMBER: 06822985) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2018 |
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2. | Accounting policies - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to |
the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Deferred Tax |
Deferred tax is recognised in respect of all timing differences between taxable profits and total comprehensive |
income that have originated but not reversed at the balance sheet date where transactions or events that result |
in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance |
sheet date. |
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Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available |
against which the temporary differences can be utilised. |
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Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or |
the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates to items charged |
or credited directly to other comprehensive income, in which case the deferred tax is also dealt with in other |
comprehensive in come. |
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Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets |
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and |
intends to settle on a net basis. |
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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. |
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Operating leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the |
lease. |
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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. |
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Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a |
party to the contractual provisions of the instrument. |
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Trade and other debtors and creditors are classified as basic financial instruments and measured at initial |
recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the |
effective interest rate method. A provision is established when there is objective evidence that the company will |
not be able to collect all amounts due. |
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Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at |
bank, which are an integral part of the company's cash management. |
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Financial liabilities and equity instruments issued by the company are classified in accordance with the |
substance of the contractual arrangements entered into and the definitions of a financial liability and an equity |
instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company |
after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds |
received, net of direct issue costs. |
PSI GROUP SERVICES LIMITED (REGISTERED NUMBER: 06822985) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2018 |
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2. | Accounting policies - continued |
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Going concern |
PSI Group Services Limited receives loans from fellow group companies which enable the business to continue |
investing and developing for the future. Whilst no fixed repayment date is set by the group companies the loans |
have been granted on the basis of them being repayable on demand if the group needed to withdraw funding. |
The directors have obtained a letter from those companies confirming the terms and that it is their current |
intention to continue to loan PSI Group Services Limited further monies as needed so that the group is able to |
maintain a base in the United Kingdom. |
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An affiliate of the group, PetroSaudi Oil Services (Venezuela) Limited ("PSOSVL"), is currently involved in a |
legal dispute with its main client, PDVSA Service's S.A. ("PDVSA"), primarily regarding unpaid invoices under a |
drilling contract entered into between the parties in 2010. |
An arbitral tribunal was appointed under the Rules of the United Nations Commission on International Trade |
law ("UNCITRAL") to preside over the matter and rule on the claims and counter-claims. To date, the tribunal |
has issued several partial awards, the most notable of which was a partial award delivered in April 2017 |
following a hearing at the end of 2016. In that award the tribunal found predominantly in PSOSVL's favour with |
regard to the issues determined which related primarily to entitlement to day-rate remuneration. |
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The final hearing to address all remaining claims took place in London between the 3rd and 21st of December |
2018. PDVSA's remaining claims relate to periods prior to 2015 and include claims for damages for (in |
essence) alleged negligence in the performance of the drilling contract. The Company's remaining claims relate |
to Day Rate invoices earned since May 2016, interest due on outstanding or underpaid invoices and damages |
for various breaches by PDVSA of, amongst other things, its contractual obligation to provide tax |
documentation and the warranty of legality under the drilling contract. The Company is pleased with how the |
final hearing progressed and remains confident of a positive outcome. |
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Cost submissions were made in June 2019 with replies to those submissions made in July 2019. All |
submissions relating to the case have now been made by both parties and now follows a period of waiting for a |
final award to be issued by the tribunal. The Company has no indication, nor can it exert any influence, over the |
timing of the award with the most optimistic estimates being in September 2019 and the most pessimistic into |
2020. |
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Notwithstanding the successful collection of outstanding amounts under the drilling contract, sufficient funds |
are available, due to successful collection of amounts under the standby letter of credit and tribunal awards, to |
ensure that PSI Group Services Limited has adequate resources to continue in operational existence for a |
period of at least twelve months. |
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Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the annual |
financial statements. |
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3. | Employees and directors |
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The average number of employees during the year was
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PSI GROUP SERVICES LIMITED (REGISTERED NUMBER: 06822985) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2018 |
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4. | Tangible fixed assets |
Fixtures |
Short | and | Motor | Computer |
leasehold | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 January 2018 |
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Disposals | ( |
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At 31 December 2018 |
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Depreciation |
At 1 January 2018 |
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Charge for year |
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Eliminated on disposal | ( |
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At 31 December 2018 |
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Net book value |
At 31 December 2018 |
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At 31 December 2017 |
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5. | Debtors: amounts falling due within one year |
2018 | 2017 |
£ | £ |
Amounts owed by group undertakings |
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Other debtors |
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6. | Creditors: amounts falling due within one year |
2018 | 2017 |
£ | £ |
Trade creditors |
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Amounts owed to group undertakings |
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Other creditors |
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7. | Called up share capital |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
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Ordinary shares | £0.01 | 442,327 | 442,327 |
PSI GROUP SERVICES LIMITED (REGISTERED NUMBER: 06822985) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2018 |
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8. | Reserves |
Retained |
earnings |
£ |
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At 1 January 2018 |
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Profit for the year |
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At 31 December 2018 |
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9. | Disclosure under Section 444(5B) of the Companies Act 2006 |
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The Auditors' Report was unqualified. |
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for and on behalf of
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10. | Ultimate controlling party |
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The company's immediate parent is PetroSaudi International Limited, a company incorporated and registered in |
the Cayman Islands, by virtue of them holding the entire issued share capital of the company. |
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The company's ultimate parent company is PetroSaudi Holdings (Cayman) Limited, a company incorporated |
and registered in the Cayman Islands. No group financial statements are maintained by the company or group |
as there is no requirement. |