Edda Supply Ships (UK) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC058774 (Scotland)

EDDA SUPPLY SHIPS (UK) LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

J Ostensjo

REGISTERED OFFICE:

Nautilis House

Waterloo Quay

Aberdeen

Aberdeenshire

AB11 5BS

REGISTERED NUMBER:

SC058774 (Scotland)

AUDITORS:

Hopper Williams & Bell Limited

Statutory Auditor

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

BANKERS:

Royal Bank of Scotland

78 Union Street

Aberdeen

AB10 1HH

SOLICITORS:

Peterkins Solicitors

100 Union Street

Aberdeen

AB11 5PW

FIXED ASSETS

Tangible assets

4

3,301

-

Investments

5

1

1

3,302

1

CURRENT ASSETS

Debtors

6

73,745

89,666

Cash at bank

58,398

59,313

132,143

148,979

CREDITORS

Amounts falling due within one year

7

(42,100

)

(69,692

)

NET CURRENT ASSETS

90,043

79,287

TOTAL ASSETS LESS CURRENT LIABILITIES

93,345

79,288

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

93,245

79,188

93,345

79,288

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 29 April 2020 and were signed by:

J Ostensjo - Director

1.	STATUTORY INFORMATION

Edda Supply Ships (UK) Limited is a private company, limited by shares , registered in Scotland. The

company's registered number and registered office address can be found on the Company Information page.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary

amounts in these financial statements are rounded to the nearest £1.

The company has taken advantage of the small companies exception not to prepare consolidated accounts.

Going concern

Covid-19 and reduced oil price

The outbreak of virus Covid-19 resulted in a significant reduction in oil prices in the first quarter of 2020. The

virus and the impact on oil prices will in time affect the Company's operations in 2020 and beyond. The extent

and effects of this will depend on further developments, and it is not possible to estimate the effect of this at the

present time.

The Company operates within a market where oil prices are a significant indicator of activity levels. The

Company's vessels are assessed annually for impairment based on an expectation of future cash flows, which

include estimates for future utilization and expected market rates. A change in these assumptions will affect

the fair value of the vessels. If oil prices continue to be at a low level for an extended period, this could affect

revenues, and also increase the credit risk related to accounts receivable.

The Group is closely monitoring the developments related to the Covid-19 outbreak, and makes ongoing

assessments and measures to minimize the impact on the Company's employees, operations and financial

results.

At the present time, as a result, a material uncertainty exists in this respect.

Turnover

Turnover from the supply of services represents the value of services provided under contracts to the extent that

there is a right to consideration which is recorded at the value of the consideration due, or in the case of

rentals, through passage of time when other contractual obligations have been met. Turnover is stated net of

VAT and trade discounts.

Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand and deposits held at call

with banks.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' FRS 102 to all its

financial instruments.

Financial instruments are recognised 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 statement, 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 debtors, cash and bank balances and loans to fellow group

undertakings 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 financial asset is measured at the present value of the future receipts discounted at a

market rate of interest.

Basic financial liabilities

Basic financial liabilities, include trade and other creditors, bank loans, loans from fellow group companies

and preference shares that are classified as debt, are initially recognised at transaction price unless the

arrangement constitute a financing transaction, where the debt instrument is measured at the present value of

the future payments discounted at a market rate of interest.

Equity instruments

Equity instruments issued by the company are recorded at the fair value of proceeds received, net of direct issue

costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the

discretion of the company.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at the

following annual rates in order to write off each asset over its estimated useful life.

Equipment 4 to 10 years 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.

Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated

impairment losses. The investments are assessed for impairment at each reporting date and any impairment

losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. control is the power to govern the financial and operating

polices of the entity so as to obtain benefits from its activities.

Taxation

The tax expense represents the sum of of the current tax expense and deferred tax expenses. Current tax assets

are recognised when tax paid exceeds the tax payable.

Current and deferred tax is charged or credited to the profit or loss, except when it relates to items charged or

credited to other comprehensive income or equity, when the tax follows the transactions or event it related to

and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities are deferred tax assets and deferred tax liabilities are offset, it and

only if there is a legal enforceable right to set off the amounts and the entity intends either to settle on the net

basis or to realise the assets and settle the liability simultaneously.

Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax

rates that have been enacted or substantively enacted by the reporting period.

Deferred tax is recognised in respect of all timing difference 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 accrued at the balance sheet date.

Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing

differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted

by the balance sheet date. Deferred tax is measured on a non-discounted basis.

Employee benefits

The costs of employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period which the employee's services are

received.

Retirement Benefits

For defined contribution schemes the amount charged the profit or loss is the contributions payable in the year.

Differences between the contributions payable and the contributions actually paid are shown as either accruals

or prepayments.

Foreign exchange

Transactions in currencies other than the functional currency are initially recorded at the exchange rate

prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies re translated into sterling at the rates of

exchange ruling at the balance sheet date. Non-monetary assets and liabilities and transactions in foreign

currencies are translated into sterling at the rate of exchange ruling at the date of the transaction.

Exchange differences are taken into account in arriving at the operating profit.

Leases

Where no rights or obligations are conferred in relation to leased assets, no legal costs or liabilities are

recorded in the financial statements in line with the substance of the agreement.

Interest received in respect of the hire of vessels under finance lease arrangements is recognised in the profit

and loss account over the term of the lease in proportion to the balance of future rentals receivable. Assets

subject to these finance leases are not included in the fixed assets. The amounts due under such contracts, less

provision for doubtful debts, are included in the balance sheet as debtors.

Operating lease arrangements

Rentals applicable to operating leases, where substantially all the benefits and risks of ownership remain with

the lessor, are charged against profits on a straight line basis over the period of the lease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2018 - 5 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

Additions

3,668

At 31 December 2019

3,668

DEPRECIATION

Charge for year

367

At 31 December 2019

367

NET BOOK VALUE

At 31 December 2019

3,301

5.	FIXED ASSET INVESTMENTS

2019

2018

£

£

Investment in subsidiary undertaking

1

1

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Amounts owed by group undertakings

68,852

56,920

Other debtors

4,893

32,746

73,745

89,666

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade creditors

3,991

4,022

Amounts owed to group undertakings

17,131

26,980

Taxation and social security

15,078

7,678

Other creditors

5,900

31,012

42,100

69,692

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2019

2018

£

£

Within one year

21,885

5,586

Between one and five years

14,293

5,121

36,178

10,707

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

D Brookes FCA (Senior Statutory Auditor)

for and on behalf of Hopper Williams & Bell Limited

10.	POST BALANCE SHEET EVENTS

On 25 March 2020 the entire Ordinary share capital of the company's subsidiary Edda Crewing Services

Limited was transferred to Johannes Østensjø dy AS.

COVID-19 and its effects on the business represent a non-adjusting post balance sheet event.

11.	PARENT COMPANY

Johannes Østensjø dy AS is regarded by the directors as being the company's ultimate parent company, a

company incorporated in Norway.

The smallest group for which consolidated accounts are drawn up of which the company is a member is

Johannes Østensjø dy AS.

The consolidated accounts can be obtained from the parent company's registered office of Smedasundet 97B,

5525 Haugesund, Norway.