Company Registration No. 10161344 (England and Wales)
AKER SYSTEMS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
PAGES FOR FILING WITH REGISTRAR
AKER SYSTEMS LIMITED
COMPANY INFORMATION
Directors
A Fawsitt
A T S Crawford
D B Thomas
(Appointed 16 July 2020)
S J Halstead
(Appointed 1 December 2020)
Secretary
S J Halstead
Company number
10161344
Registered office
25a Market Square
Bicester
Oxfordshire
OX26 6AD
Auditors
Crowe U.K. LLP
Aquis House
49-51 Blagrave Street
Reading
RG1 1PL
AKER SYSTEMS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
AKER SYSTEMS LIMITED
BALANCE SHEET
AS AT 31 MAY 2020
31 May 2020
- 1 -
Unaudited
2020
2019
as restated
Notes
£
£
£
£
Current assets
Debtors
3
5,532,103
1,051,110
Cash at bank and in hand
4,402,785
2,528,861
9,934,888
3,579,971
Creditors: amounts falling due within one year
4
(2,399,672)
(903,080)
Net current assets
7,535,216
2,676,891
Capital and reserves
Called up share capital
6
1
1
Other reserves
301,173
301,173
Profit and loss reserves
7,234,042
2,375,717
Total equity
7,535,216
2,676,891
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A.
The financial statements were approved by the board of directors and authorised for issue on 23 February 2021 and are signed on its behalf by:
S J Halstead
Director
Company Registration No. 10161344
AKER SYSTEMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2020
- 2 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 May 2019:
Balance at 1 June 2018
1
395,886
395,887
Year ended 31 May 2019:
Profit and total comprehensive income for the year
-
-
1,979,831
1,979,831
Other movements
-
301,173
-
301,173
Balance at 31 May 2019
1
301,173
2,375,717
2,676,891
Year ended 31 May 2020:
Profit and total comprehensive income for the year
-
-
4,858,325
4,858,325
Balance at 31 May 2020
1
301,173
7,234,042
7,535,216
Movements in other reserves in the prior year represents an equity reserve created on transfer of shares at below market value. It has been introduced through a restatement in the current year. Further detail is found in Note 10.
AKER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
- 3 -
1
Accounting policies
Company information
Aker Systems Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
25a Market Square, Bicester, Oxfordshire, OX26 6AD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
As at 31 May 2019 the company was exempt from the requirement to have a statutory audit as it met the requirement of being a small sized company as defined by the Companies Act 2006.
The financial statements are
presented
in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that
the current pandemic will have limited or no impact on the operations of the company and as such
the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover
is measured at the fair value of the consideration received or receivable for the rendering of services in the normal course of business, and is shown net of discounts and VAT.
Rendering of services
Revenue arises from the provision of technology services.
Where these services represent a project, revenue is recognised on milestone completion where these milestones are independent of each other, throughout the performance period of the contract. Where the milestones are not independent or there is a service performance obligation, revenue is recognised over the period of service being performed by reference to the stage of completion of the transaction at the end of the reporting period.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ”Basic Financial Instruments” 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.
AKER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 4 -
Basic financial assets
Short term debtors are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.
Basic financial liabilities
Short term creditors are measured at transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.
1.6
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
Unpaid holiday pay is accrued on a pro-rata basis and recognised in the period to which it relates.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Share-based payments
Equity-settled share-based payments are measured
and recognised
at fair value at the date of grant by reference to the fair value of the equity instruments granted. A corresponding adjustment is made to equity.
1.10
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease.
1.11
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
.
AKER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
15
8
3
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
3,659,211
295,164
Corporation tax recoverable
81,250
81,250
Other debtors
1,791,642
674,696
5,532,103
1,051,110
Corporation tax recoverable of £81,250 (2019: £81,250) is due after more than one year.
4
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
546,748
167,104
Corporation tax
892,339
358,190
Other taxation and social security
766,150
320,886
Other creditors
194,435
56,900
2,399,672
903,080
5
Share-based payment transactions
Equity instruments other than share options
As disclosed in Note 10 below, £301,173 of equity instruments other than share options were granted during 2019. The weighted average fair value of those instruments at the measurement date was £2,151 per share. No equity instruments were granted during 2020.
The fair value of the equity instruments granted was calculated with reference to valuations of the company based on the available financial information as at the grant date. The valuations of the company were undertaken by a professionally qualified independent third party.
Liabilities and expenses
During the year, the company recognised total share-based payment expenses of £nil (2019: £301,173) which related to equity settled share based payment transactions.
AKER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 6 -
6
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary shares of 0.1p each
1
1
7
Events after the reporting date
On 16 July 2020, the entire share capital of the company was acquired by Ensco 1366 Limited.
8
Directors' transactions
At the reporting date, a director owed the company £1,750,000 (2019: £250,000) in respect of a loan and £18,309 (2019: £661) in respect of interest on the loan. The loans were repaid in full in July 2020. Interest was charged on the loan at the official rate of 2.5%.
At the reporting date, the company owed a director £2,223 (2019: £46) in respect of expenses. The balance was repaid in full in June 2020.
9
Ultimate controlling party
The director, A Fawsitt, is considered to be the ultimate controlling party by virtue of his majority shareholding in Aker Systems Limited.
10
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 May 2019
£
£
£
Current assets
Stocks
358,885
(358,885)
Debtors due within one year
545,825
505,285
1,051,110
Bank and cash
2,473,961
54,900
2,528,861
Creditors due within one year
Taxation
(679,718)
642
(679,076)
Other creditors
(2,000)
(54,900)
(56,900)
Net assets
2,696,953
147,042
2,843,995
Capital and reserves
Other reserves
-
301,173
301,173
Profit and loss
2,529,848
(154,131)
2,375,717
Total equity
2,529,849
147,042
2,676,891
AKER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
10
Prior period adjustment
(Continued)
- 7 -
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 May 2019
£
£
£
Turnover
5,632,101
65,150
5,697,251
Administrative expenses
(165,365)
(301,173)
(466,538)
Taxation
(358,832)
81,892
(276,940)
Profit for the financial period
2,133,962
(154,131)
1,979,831
Notes to adjustments
Prior period adjustments
The prior year reclassifications in the balance sheet relate to £358,885 of accrued income previously treated as stock that has been reclassified as an other debtor, £65,150 of accrued income that has been omitted from the accounts, £54,900 of omitted accruals against bank and cash, and a recoverable tax charge under s455 CTA2010 of £81,250 that had been incorrectly classified in the 2019 accounts and which has now been introduced as a taxation debtor.
The prior year reclassification in the profit and loss account relates to a £301,173 grant of shares which had been omitted from the accounts and corresponding corporation tax saving of £57,223. In addition, the corporation tax research and development claim for the year ended 31 May 2019 was amended, which resulted in an increase in corporation tax of £44,202. The incorrectly classified s455 tax charge of £81,250 was removed from the profit and loss account, and a £12,379 corporation tax increase was introduced as a consequence of the adjustment to accrued income, bringing the total net adjustment in taxation to £81,892.
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Christine Dobson.
The auditor was Crowe U.K. LLP.
In the previous accounting period, the directors were satisfied that the company met the requirements for audit exemption under section 477 of the Companies Act 2006 and therefore, the comparative information has not been audited.