CALEY OCEAN SYSTEMS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
Company Registration No. SC200730 (Scotland)
PAGES FOR FILING WITH REGISTRAR
CALEY OCEAN SYSTEMS LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 9
CALEY OCEAN SYSTEMS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 DECEMBER 2019
30 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
3
1,249,344
1,322,583
Current assets
Inventories
145,003
145,003
Trade and other receivables
4
11,557,365
14,403,516
Cash and cash equivalents
5
3,442
11,702,373
14,551,961
Current liabilities
5
(4,296,423)
(6,338,013)
Net current assets
7,405,950
8,213,948
Total assets less current liabilities
8,655,294
9,536,531
Provisions for liabilities
-
(60,000)
Net assets
8,655,294
9,476,531
Equity
Called up share capital
6
80,000
80,000
Retained earnings
8,575,294
9,396,531
Total equity
8,655,294
9,476,531
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
These financial statements have been prepared and delivered 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 30 December 2020 and are signed on its behalf by:
Mr Gordon Kerr
Director
Company Registration No. SC200730
CALEY OCEAN SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
- 2 -
1
Accounting policies
Company information
Caley Ocean Systems Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
375 Govan Road, Watermark Business Park, Govan, Glasgow, G51 2SE.
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.
The financial statements are prepared 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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Seanamic Group Limited
. These consolidated financial statements are available from its registered office.
1.2
Going concern
Based on the Company’s financial projections, it is expected that the Company will have adequate cash to enable it to meet its liabilities in the ordinary course of business as they fall due for the next 12 months.
true
Nevertheless, in the event of a short-term working capital need, the parent company Seanamic Group Limited, intends to provide the necessary financial support should it be necessary to allow the company to meet its liabilities as they fall due for the 12 months following the approval of the financial statements. Therefore, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The accompanying financial statements have been prepared assuming that the group will continue as a going concern.
CALEY OCEAN SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2019
1
Accounting policies
(Continued)
- 3 -
1.3
Revenue
Turnover represents amounts receivable for the design of lifting and handling equipment and other special purpose machinery net of VAT.
Revenue from contracts is recognised by reference to the stage of completion when the stage of completion and overall contract value can be estimated reliably. The stage of completion is calculated by reviewing work completed in comparison to contract milestones and the directors’ assessment based on their expertise within that market. Due to the nature of the contracts undertaken, many major costs are incurred later in the contract during the build and fabrication stage and an estimate of accrued costs is required when reaching contract milestones. The estimate for accrued costs is judgemental and based upon proportion of turnover recognised as income and expected gross margin such that profit accrues evenly throughout the term of the contract.
1.4
Property, plant and equipment
Property, plant and equipment
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
2% p. a. straight line
Land and buildings Leasehold
10% p.a straight line
Plant and machinery
25% p.a straight line
Fixtures, fittings & equipment
25% p.a straight line
Computer equipment
33% p.a straight line
Motor vehicles
25% p.a straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of non-current assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. 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 which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
CALEY OCEAN SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Inventories
Inventories
are stated at the lower of cost and
estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method 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.
Financial assets classified as receivable within one year are not amortised.
Classification of 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 deducting all of its liabilities.
CALEY OCEAN SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
CALEY OCEAN SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2019
1
Accounting policies
(Continued)
- 6 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 41
(2018 - 41).
CALEY OCEAN SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2019
- 7 -
3
Property, plant and equipment
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 31 December 2018
1,353,432
435,026
1,788,458
Additions
-
5,979
5,979
At 30 December 2019
1,353,432
441,005
1,794,437
Depreciation and impairment
At 31 December 2018
111,165
354,710
465,875
Depreciation charged in the year
7,524
71,694
79,218
At 30 December 2019
118,689
426,404
545,093
Carrying amount
At 30 December 2019
1,234,743
14,601
1,249,344
At 30 December 2018
1,242,267
80,316
1,322,583
4
Trade and other receivables
2019
2018
Amounts falling due within one year:
£
£
Trade receivables
1,704,331
1,870,502
Corporation tax recoverable
677,770
2,184,241
Amounts owed by group undertakings
6,568,923
8,409,870
Other receivables
2,606,341
1,938,903
11,557,365
14,403,516
5
Current liabilities
2019
2018
£
£
Bank loans and overdrafts
816,912
1,493,094
Trade payables
2,286,771
2,096,057
Amounts owed to group undertakings
102,486
83,424
Taxation and social security
61,491
58,820
Other payables
1,028,763
2,606,618
4,296,423
6,338,013
The bank overdraft is secured by a floating charge over the company's assets. The bank also has security over the assets of the company by virtue of a a group cross guarantee.
CALEY OCEAN SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2019
- 8 -
6
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
51,200 Ordinary A shares of £1 each
51,200
51,200
28,800 Ordinary B shares of £1 each
28,800
28,800
80,000
80,000
7
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 audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
We draw attention to the 'Events after the reporting date' note in the financial statements which indicates the effect of the Covid-19 virus on the Company and the Directors’ assessment of the effect on future activities. In assessing the impact of Covid-19, The Directors undertook a review of the company’s operational activities along with income
and expenditure for
the
coming 12 months. Covid-19
impacted fully post year end and does not affect
the results as shown in the financial statements
for the year ended 31 December 2019. Covid-19 continues to affect most organisations and is
likely to do so for the foreseeable future. The future impact of the Covid-19
virus is uncertain and
this uncertainty could, in its extreme, affect the company’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of
the disclosure made in the 'Events after the reporting date' note to the financial statements concerning the company’s ability to
continue as a going concern. The Company has traded strongly against budget through the initial Covid-19 crisis, and the Directors anticipate that the changes implemented will allow it to continue to do so.
On this basis, the Directors have continued to prepare financial statements on a going
concern basis. The financial statements do not include adjustments that would result if the company
was unable to continue as a going concern.
The senior statutory auditor was Graeme Bryson CTA.
The auditor was William Duncan + Co Ltd.
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
196,800
210,467
CALEY OCEAN SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2019
- 9 -
9
Events after the reporting date
At the date on which the financial statements were approved, the overall financial implications arising from the Coronavirus (Covid-19) outbreak, which has affected the UK from February 2020, remain uncertain. The Directors implemented changes as a result of the Covid-19 crisis, which have allowed the Company to continue to trade strongly in the current financial year, and it is anticipated the company will continue to do so in the foreseeable future.
The Directors are of the opinion that the Covid-19 outbreak is a non-adjusting Post Balance Sheet event and that the company remains a going concern.
10
Parent company
The parent company of the smallest group that prepares consolidated accounts is Seanamic Group Limited, a company registered in Scotland. Seanamic Group Limited's registered office is Units 8-9, Technology Centre Aberdeen Energy Park, Claymore Drive, Aberdeen, AB23 8GD.
The majority of the equity of the parent company, Seanamic Group Limited, is owned by Simmons Private Equity II LP, a private equity fund registered in Guernsey. Simmons Private Equity II LP is controlled by its general partner, the ultimate controlling party, Parallel General Partner Limited, a non-cellular Guernsey limited company.
2019-12-30
2018-12-31
false
30 December 2020
CCH Software
CCH Accounts Production 2020.310
No description of principal activity
This audit opinion is unqualified
Blackwood Partners LLP
Mr David Cooper
Mr James McPherson
Mr Ross McLellan
Mr David Hutchinson
Mr Gordon Kerr
Blackwood Partners LLP
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