P R Marriott Drilling Limited - Limited company accounts 20.1
P R Marriott Drilling Limited - Limited company accounts 20.1
| REGISTERED NUMBER: 02592487 (England and Wales) |
| GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 |
| FOR |
| P R MARRIOTT DRILLING LIMITED |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Consolidated Income Statement | 9 |
| Consolidated Other Comprehensive Income | 10 |
| Consolidated Balance Sheet | 11 |
| Company Balance Sheet | 12 |
| Consolidated Statement of Changes in Equity | 13 |
| Company Statement of Changes in Equity | 15 |
| Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Cash Flow Statement | 17 |
| Notes to the Consolidated Financial Statements | 19 |
| P R MARRIOTT DRILLING LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants |
| Statutory Auditor |
| 35 Wilkinson Street |
| Sheffield |
| South Yorkshire |
| S10 2GB |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| The directors present their strategic report of the company and the group for the year ended 31 December 2020. |
| REVIEW OF BUSINESS |
| In 2020 the company was operating a number of long-term overseas contracts. One of these major contracts was suspended as a result of COVID19 restrictions, however the company was fortunate that due to the nature and diversity of the contracts we hold that the majority of our operations were able to continue. There were additional costs incurred with complying with the various complexities of the worldwide COVID19 restrictions, but as can be seen from the strong result for the year the difficulties were overcome with the assistance and hard work from all the employees. The strength of our clients and the long-term nature of these contracts gives the company great comfort in the ability to produce ongoing profits. In addition to the contracts in hand, the company is still being invited to tender for numerous varied and interesting projects, in both new and existing markets. |
| Marriott Drilling maintains a strong team working ethos and a proactive approach to ensure its customer's needs are met as well as being competitive with pricing and remaining commercially realistic. Marriott Drilling has successfully maintained a minimal downtime rate for drilling rigs and associated equipment due to comprehensive routine maintenance programmes that have kept project delivery lead times on target. |
| Over the coming year the group plans to continue consolidating its position in key markets where Marriott Drilling has a market leading position and also seeks to expand into new markets and territories where the right opportunities exist. Marriott Drilling considers the geothermal industry in selected locations as being a key target industry area and as we strive to increase our market share within this part of the deep drilling industry, the group has secured new contracts that will maintain its expansion of activities in East Africa through geothermal activities. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Exchange rate exposure over the long-term nature of our contracts can be a concern for the business however a significant natural hedge is created by purchases being made in overseas currencies, this along with our use of exchange rate hedging help reduce risk to the business. |
| Oil price fluctuations may not affect the short-term prospects of the business but may be an issue long term. The company is actively seeking to expand upon its Geothermal and non Oil & Gas based market to assist in mitigating the long term risk. |
| Political uncertainty both at home and in various overseas territories in which we are currently operating always mean the company needs to be on its guard for the effects of change. |
| With regards to employee protection for both health and security, third party services are utilised where necessary. |
| Default or non-payment by a major customer will always be a risk, but the blue chip and sovereign nature of our customers whilst not fully negating the risk certainly helps to minimise it. |
| KEY PERFORMANCE INDICATORS |
| There are a number of key performance indicators ("KPI") that the management team use to monitor the performance of the business. These are as follows: |
| 12 Months ended 31 December 2020 |
12 Months ended 31December 2019 |
| Turnover | £33.2m | £38.4m |
| EBITDA | £5.9m | £4.0m |
| Return on Capital Employed | 7.4% | 2.7% |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| FUTURE PROSPECTS |
| In the UK our groundwater engineering division continues to grow and diversify, building a strong team to manage the larger market share now held |
| The Marriott Drilling Group continues to invest in the latest drilling technology to ensure the company has the technical capability providing a quality service. The company will also continue to maintain and extend our ISO standard certification to further increase our business credentials as well as the continuing to offer competitive pricing and innovative contracting solutions. |
| Due to the number of new and existing contracts in hand the company will continue to strengthen the management team for both the UK and overseas operations, not only does this assist in the operation and governance of the existing workload but it has proven to expand our capacity to tender for new prospects as they arise. |
| GOING CONCERN MATTERS |
| The directors have put measures in place to mitigate the impact of COVID19, but the chance of another wave still has to be seen as a possible risk to operating activities. However, we believe that the group will come through the challenging situation in a stronger position as we have built stronger relationships with clients, our employees, and our supply chain. |
| ON BEHALF OF THE BOARD: |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 December 2020. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of drilling and related services to the oil, gas, gas storage, shale gas, CBM, geothermal, mining and water supply industries. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 December 2020. |
| RESEARCH AND DEVELOPMENT |
| During the year, the group continued to reinvest in the research and development of new and innovative processes to gain a competitive advantage in new and existing markets. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report. |
| QUALIFYING THIRD PARTY INDEMNITY PROVISION |
| During the financial year and at the time the directors report is approved, a Qualifying Third Party Indemnity Provision for the benefit of the directors is in force. |
| OVERSEAS BRANCHES |
| The parent company has two branches which are located outside of the United Kingdom. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| As required by Section 414C(11) Companies Act 2006, this statement confirms that certain items that are required to be disclosed in the directors report are set out in the 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. |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| AUDITORS |
| The auditors, Hollis and Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| P R MARRIOTT DRILLING LIMITED |
| Opinion |
| We have audited the financial statements of P R Marriott Drilling Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated Income Statement, Consolidated Other 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 31 December 2020 and of the group's profit 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| P R MARRIOTT DRILLING LIMITED |
| 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 set out on page four, 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. |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| - Enquiry of management and those charged with governance around actual and potential litigation and claims; |
| - Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
| - Reviewing minutes of meetings of those charged with governance; |
| - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
| - Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
| Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the further that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
| 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| P R MARRIOTT DRILLING LIMITED |
| 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. |
| for and on behalf of |
| Chartered Accountants |
| Statutory Auditor |
| 35 Wilkinson Street |
| Sheffield |
| South Yorkshire |
| S10 2GB |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| CONSOLIDATED INCOME STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| TURNOVER | 4 | 33,226,418 | 38,427,702 |
| Cost of sales | 22,778,235 | 28,899,043 |
| GROSS PROFIT | 10,448,183 | 9,528,659 |
| Distribution costs | 487,353 | 1,016,709 |
| Administrative expenses | 7,476,275 | 7,714,704 |
| 7,963,628 | 8,731,413 |
| 2,484,555 | 797,246 |
| Other operating income | 5 | 235,463 | 109,745 |
| OPERATING PROFIT | 7 | 2,720,018 | 906,991 |
| Interest receivable and similar income | 36,336 | 77,714 |
| 2,756,354 | 984,705 |
| Interest payable and similar expenses | 8 | 170,820 | 117,923 |
| PROFIT BEFORE TAXATION | 2,585,534 | 866,782 |
| Tax on profit | 9 | 1,081,797 | 215,785 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 1,627,218 | 1,035,955 |
| Non-controlling interests | (123,481 | ) | (384,958 | ) |
| 1,503,737 | 650,997 |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| CONSOLIDATED OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 1,503,737 | 650,997 |
| OTHER COMPREHENSIVE INCOME |
| Currency translation differences on |
| foreign currency net investments | (182,460 | ) | (374,931 | ) |
| Deferred tax on revaluation reserve |
| Income tax relating to other comprehensive income |
(134,492 |
) |
(22,181 |
) |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(316,952 |
) |
(397,112 |
) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,186,785 |
253,885 |
| Total comprehensive income attributable to: |
| Owners of the parent | 1,331,555 | 729,579 |
| Non-controlling interests | (144,770 | ) | (475,694 | ) |
| 1,186,785 | 253,885 |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| CONSOLIDATED BALANCE SHEET |
| 31 DECEMBER 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 | 439,855 | - |
| Tangible assets | 12 | 27,929,280 | 27,672,266 |
| Investments | 13 | - | - |
| 28,369,135 | 27,672,266 |
| CURRENT ASSETS |
| Stocks | 14 | 787,011 | 1,005,887 |
| Debtors | 15 | 9,423,480 | 13,843,910 |
| Cash at bank and in hand | 10,002,782 | 5,398,463 |
| 20,213,273 | 20,248,260 |
| CREDITORS |
| Amounts falling due within one year | 16 | 11,631,710 | 13,992,361 |
| NET CURRENT ASSETS | 8,581,563 | 6,255,899 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
36,950,698 |
33,928,165 |
| CREDITORS |
| Amounts falling due after more than one year | 17 | (18,637,510 | ) | (17,442,841 | ) |
| PROVISIONS FOR LIABILITIES | 21 | (2,347,020 | ) | (1,560,031 | ) |
| NET ASSETS | 15,966,168 | 14,925,293 |
| CAPITAL AND RESERVES |
| Called up share capital | 22 | 73,002 | 73,002 |
| Revaluation reserve | 23 | 2,322,120 | 2,726,494 |
| Capital redemption reserve | 23 | 73,000 | 73,000 |
| Other reserves | 23 | 878,345 | 1,039,516 |
| Retained earnings | 23 | 12,121,238 | 10,224,138 |
| SHAREHOLDERS' FUNDS | 15,467,705 | 14,136,150 |
| NON-CONTROLLING INTERESTS | 24 | 498,463 | 789,143 |
| TOTAL EQUITY | 15,966,168 | 14,925,293 |
| The financial statements were approved by the Board of Directors and authorised for issue on 3 November 2021 and were signed on its behalf by: |
| J W Hobday - Director |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| COMPANY BALANCE SHEET |
| 31 DECEMBER 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 |
| Tangible assets | 12 | 14,111,087 | 12,937,564 |
| Investments | 13 |
| CURRENT ASSETS |
| Stocks | 14 |
| Debtors | 15 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 16 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 17 | ( |
) | ( |
) |
| PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 22 |
| Revaluation reserve |
| Capital redemption reserve |
| Other reserves | ( |
) |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 1,758,802 | 1,845,379 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| Called up | Capital |
| share | Retained | Revaluation | redemption |
| capital | earnings | reserve | reserve |
| £ | £ | £ | £ |
| Balance at 1 January 2019 | 73,002 | 8,922,655 | 3,014,203 | 73,000 |
| Changes in equity |
| Profit for the year | - | 1,035,955 | - | - |
| Other comprehensive income | - | - | (22,181 | ) | - |
| Total comprehensive income | - | 1,035,955 | (22,181 | ) | - |
| Reserve transfer | - | 265,528 | (265,528 | ) | - |
| Balance at 31 December 2019 | 73,002 | 10,224,138 | 2,726,494 | 73,000 |
| Changes in equity |
| Profit for the year | - | 1,627,218 | - | - |
| Other comprehensive income | - | - | (134,492 | ) | - |
| Total comprehensive income | - | 1,627,218 | (134,492 | ) | - |
| Reserve transfer | - | 269,882 | (269,882 | ) | - |
| 73,002 | 12,121,238 | 2,322,120 | 73,000 |
| Non-controlling interest arising on business combination |
- |
- |
- |
- |
| Balance at 31 December 2020 | 73,002 | 12,121,238 | 2,322,120 | 73,000 |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| Other | Non-controlling | Total |
| reserves | Total | interests | equity |
| £ | £ | £ | £ |
| Balance at 1 January 2019 | 1,323,712 | 13,406,572 | 1,264,837 | 14,671,409 |
| Changes in equity |
| Profit for the year | - | 1,035,955 | (384,958 | ) | 650,997 |
| Other comprehensive income | (284,196 | ) | (306,377 | ) | (90,736 | ) | (397,113 | ) |
| Total comprehensive income | (284,196 | ) | 729,578 | (475,694 | ) | 253,884 |
| Balance at 31 December 2019 | 1,039,516 | 14,136,150 | 789,143 | 14,925,293 |
| Changes in equity |
| Profit for the year | - | 1,627,218 | (123,481 | ) | 1,503,737 |
| Other comprehensive income | (161,171 | ) | (295,663 | ) | (21,289 | ) | (316,952 | ) |
| Total comprehensive income | (161,171 | ) | 1,331,555 | (144,770 | ) | 1,186,785 |
| 878,345 | 15,467,705 | 644,373 | 16,112,078 |
| Non-controlling interest arising on business combination |
- |
- |
(145,910 |
) |
(145,910 |
) |
| Balance at 31 December 2020 | 878,345 | 15,467,705 | 498,463 | 15,966,168 |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| Called up |
| share | Retained | Revaluation |
| capital | earnings | reserve |
| £ | £ | £ |
| Balance at 1 January 2019 |
| Changes in equity |
| Profit for the year | - | 1,845,379 | - |
| Other comprehensive income | - | - | ( |
) |
| Total comprehensive income | - | ( |
) |
| Reserve transfer | - | 265,528 | (265,528 | ) |
| Balance at 31 December 2019 |
| Changes in equity |
| Profit for the year | - | 1,758,802 | - |
| Other comprehensive income | - | - | ( |
) |
| Total comprehensive income | - | ( |
) |
| Reserve transfer | - | 269,882 | (269,882 | ) |
| Balance at 31 December 2020 |
| Capital |
| redemption | Other | Total |
| reserve | reserves | equity |
| £ | £ | £ |
| Balance at 1 January 2019 |
| Changes in equity |
| Profit for the year | - | - | 1,845,379 |
| Other comprehensive income | (22,181 | ) |
| Total comprehensive income |
| Balance at 31 December 2019 |
| Changes in equity |
| Profit for the year | - | - | 1,758,802 |
| Other comprehensive income | ( |
) | (140,579 | ) |
| Total comprehensive income | ( |
) |
| Balance at 31 December 2020 | ( |
) |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 6,424,088 | 2,400,333 |
| Interest paid | (39,511 | ) | (22,498 | ) |
| Interest element of hire purchase payments paid |
(42,279 |
) |
(34,475 |
) |
| Finance costs paid | (89,030 | ) | (60,950 | ) |
| Tax paid | (624,609 | ) | (327,208 | ) |
| Taxation refund | - | 170,586 |
| Net cash from operating activities | 5,628,659 | 2,125,788 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (3,243,371 | ) | (4,042,253 | ) |
| Sale of tangible fixed assets | 13,850 | 85,291 |
| Cash balance - acquisition of subsidiary | 49,242 | - |
| Interest received | 36,336 | 77,714 |
| Net cash from investing activities | (3,143,943 | ) | (3,879,248 | ) |
| Cash flows from financing activities |
| New loans in year | 655,498 | 2,579,709 |
| New HP loans in the year | 2,520,000 | 848,822 |
| Capital repayments in year | (983,207 | ) | (182,330 | ) |
| Amount withdrawn by directors | (93,238 | ) | (454,106 | ) |
| Movement in related party balances | 104,010 | (334,997 | ) |
| Net cash from financing activities | 2,203,063 | 2,457,098 |
| Increase in cash and cash equivalents | 4,687,779 | 703,638 |
| Cash and cash equivalents at beginning of year |
2 |
5,315,003 |
4,611,365 |
| Cash and cash equivalents at end of year | 2 | 10,002,782 | 5,315,003 |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
| 2020 | 2019 |
| £ | £ |
| Profit for the financial year | 1,503,737 | 650,997 |
| Depreciation charges | 3,312,760 | 3,083,670 |
| Profit on disposal of fixed assets | - | (12,906 | ) |
| Foreign exchange differences | 164,927 | 370,454 |
| (Decrease) / Increase in provisions | (45,127 | ) | 433 |
| Finance costs | 170,820 | 117,923 |
| Finance income | (36,336 | ) | (77,714 | ) |
| Taxation | 1,081,797 | 215,785 |
| 6,152,578 | 4,348,642 |
| Decrease/(increase) in stocks | 268,398 | (656,187 | ) |
| Decrease/(increase) in trade and other debtors | 3,601,592 | (7,916,582 | ) |
| (Decrease)/increase in trade and other creditors | (3,598,480 | ) | 6,624,460 |
| Cash generated from operations | 6,424,088 | 2,400,333 |
| 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 31 December 2020 |
| 31/12/20 | 1/1/20 |
| £ | £ |
| Cash and cash equivalents | 10,002,782 | 5,398,463 |
| Bank overdrafts | - | (83,460 | ) |
| 10,002,782 | 5,315,003 |
| Year ended 31 December 2019 |
| 31/12/19 | 1/1/19 |
| £ | £ |
| Cash and cash equivalents | 5,398,463 | 4,611,365 |
| Bank overdrafts | (83,460 | ) | - |
| 5,315,003 | 4,611,365 |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1/1/20 | Cash flow | At 31/12/20 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 5,398,463 | 4,604,319 | 10,002,782 |
| Bank overdrafts | (83,460 | ) | 83,460 | - |
| 5,315,003 | 4,687,779 | 10,002,782 |
| Debt |
| Finance leases | (1,071,256 | ) | (1,536,793 | ) | (2,608,049 | ) |
| Debts falling due within 1 year | (2,687,301 | ) | (562,260 | ) | (3,249,561 | ) |
| (3,758,557 | ) | (2,099,053 | ) | (5,857,610 | ) |
| Total | 1,556,446 | 2,588,726 | 4,145,172 |
| 4. | ACQUISITION OF BUSINESS |
| On 30 June 2020, P R Marriott Drilling Limited acquired 79.02% of the share capital of Soil Mechanics Associates Limited for £226 consideration. |
| The Fair Value of the assets acquired are shown below. |
| £ |
| Tangible fixed assets | 577,750 |
| Stocks and WIP | 49,522 |
| Trade debtors | 86,223 |
| Other debtors and prepayments | 32,006 |
| Cash and cash equivalents | 49,242 |
| Trade creditors | (115,874 | ) |
| Other creditors and accruals | (141,691 | ) |
| Other loan | (1,232,681 | ) |
| Net assets acquired | (695,503 | ) |
| Attributable to Non-controlling interest - 20.98% | 145,910 |
| (549,593 | ) |
| Consideration | (226 | ) |
| Goodwill | 549,819 |
| The amount of Goodwill expected to be deductible for tax purposes is £nil. |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 1. | STATUTORY INFORMATION |
| P R Marriott Drilling Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| The consolidated financial statements cover a group of entities. |
| The figures in the financial statements are rounded to the nearest £ |
| 2. | STATEMENT OF COMPLIANCE |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The directors have considered the impact of the COVID19 pandemic on the group's trade, workforce and supply chain, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the directors are confident that they have in place plans to mitigate any financial impact that may arise. The directors therefore continue to adopt the going concern basis of preparation for these financial statements |
| Basis of consolidation |
| The Group financial statements consolidate the financial statements of P R Marriott Drilling Limited and all its subsidiary undertaking. The Group profit and loss account includes the results of P R Marriott Drilling Limited and all its subsidiary after intra group trading and profits have been eliminated. |
| The Group financial statements consolidate the results of Marriott Geotechnical Drilling Limited, a company which is exempt from the requirement of the Companies Act 2006 relating to the audit of individual accounts by virtue of Section 479A Companies Act 2006. |
| Critical accounting judgements and key sources of estimation uncertainty |
| - Key sources of estimation uncertainty. |
| The Parent company believes that there are no areas of material estimation uncertainty which affect the financial statements. |
| - Critical accounting judgements in applying the Company's accounting policies. |
| The Parent company believes that the major judgements applied are: |
| - The use of the going concern principle which is based on the belief that the group will have adequate resources to continue in operational existence for the foreseeable future. |
| - Based on a review of the ongoing trading budgets and forecasts of its investments, that there is no need to impair those investments and debtor balances due to the company from those entities. |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 3. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Turnover is earned primarily through the charging of a day rates to customers for the operation of a drilling rig, together with mobilisation and de-mobilisation costs. |
| Day rate revenues are recognised as and when the service is provided to customers. Mobilisation and de-mobilisation revenues are recognised at the time when rig mobilisation or de-mobilisation is completed. |
| Goodwill |
| Goodwill, being the amount paid in connection with the acquisition of a business in 2020, is being |
| amortised evenly over its estimated useful life of 5 years. |
| An annual review of the carrying value of acquired goodwill is undertaken and if it is considered that the specific acquired goodwill has been impaired, a provision is made to adjust the current carrying value. |
| Goodwill arose on the acquisition of a subsidiary undertaking and represents the excess of cost over the fair value of assets acquired. |
| Tangible fixed assets |
| Improvements to property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| - Revaluation |
| Drilling rigs are stated at fair value less any subsequent accumulated depreciation and impairment losses. |
| Gains on revaluation are recognised in the 'other comprehensive income' statement and accumulated in the revaluation reserve, however the increase is recognised via the profit and loss account to the extent that it reverses a revaluation decrease previously recognised via the profit and loss account. |
| Losses arising on revaluation are recognised in the ' other comprehensive income' statement to the extent of any previously recognised revaluation increases accumulated in the revaluation reserve in respect of that asset. Any excess is recognised via the profit and loss account. |
| Government grants |
| Government grants are accounted for using the accrual model. |
| 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. |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 3. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| - Trade and other debtors/creditors |
| Trade and other debtors are initially recognised at transaction price less attributable transaction costs. Trade and other creditors are initially recognised at transaction price less attributable transaction costs. Subsequently they are measures at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument |
| - Financial Liabilities |
| The company's other loans payable meet the definition of a basic financial instrument, so they are originally recognised at the transaction price. |
| - Debt instruments which are financing transactions at a rate of interest that is not a market rate. |
| Where debt instruments are classified as assets due after more than one year or long term liabilities, then the company measures these at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
| Where debt instruments are classified as current assets or current liabilities, then there is no present value adjustment to the initial measurement based on amortised cost. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
| Research and development |
| Expenditure on research and development is written off in the year in which it is incurred. |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 3. | ACCOUNTING POLICIES - continued |
| 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. |
| The amounts in the balance sheets of overseas branch and subsidiary undertakings are translated into sterling at the rates of exchange ruling at the balance sheet date, whilst the amounts in the profit and loss account are translated into sterling at the average rate of exchange for the year. The exchange difference arising on the re-translation of opening net assets is taken directly to reserves. |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| 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. |
| Joint ventures |
| Were the company is a venturer in a jointly controlled operation, the company has recognised the assets that it controls and the liabilities that it incurs, together with the expenses that it incurs and its share of the income that it earns from the revenue generated from the operation. |
| 4. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by geographical market is given below: |
| 2020 | 2019 |
| £ | £ |
| United Kingdom |
| Overseas | 24,591,275 | 20,752,006 |
| 5. | OTHER OPERATING INCOME |
| 2020 | 2019 |
| £ | £ |
| Government grants |
| Other operating income includes £235,463 (2019: £Nil) relating to CJRS receipts received as a result of the COVID 19 pandemic. In accordance with the accounting policy, this credit is included in other income in the same period as the staff costs for which it compensates. |
| The comparative figure related to a grant that was received to cover costs incurred on an R&D project. |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 6. | EMPLOYEES AND DIRECTORS |
| 2020 | 2019 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2020 | 2019 |
| Directors | 2 | 2 |
| Administration | 31 | 23 |
| Operational/drilling | 104 | 111 |
| 2020 | 2019 |
| £ | £ |
| Directors' remuneration |
| 7. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2020 | 2019 |
| £ | £ |
| Hire of plant and machinery |
| Other operating leases |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Profit on disposal of fixed assets | ( |
) |
| Auditors' remuneration |
| Foreign exchange differences |
| 8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2020 | 2019 |
| £ | £ |
| Bank interest |
| Hire purchase |
| Overseas subsidiary finance costs |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 9. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2020 | 2019 |
| £ | £ |
| Current tax: |
| Overseas taxation | 220,851 | 551,767 |
| Deferred tax: |
| Deferred tax - timing differences | ( |
) |
| Deferred tax - change in tax rates | 569,673 | - |
| Total deferred tax | ( |
) |
| Tax on profit |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2020 | 2019 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2019 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | ( |
) | ( |
) |
| tax |
| Differences between UK and overseas tax rates | 151,324 | (86,126 | ) |
| Deferred tax reserve movement | 860,946 | (129,640 | ) |
| adjustment |
| R&D tax credits and enhanced R&D expenditure | (31,362 | ) | - |
| Tax losses (utilised) / carry forward | (258,319 | ) | 291,917 |
| Restricted double tax relief on overseas branch profits | - | 32,010 |
| Total tax charge | 1,081,797 | 215,785 |
| Tax effects relating to effects of other comprehensive income |
| 2020 |
| Gross | Tax | Net |
| £ | £ | £ |
| Currency translation differences on |
| foreign currency net investments | ( |
) | - | (182,460 | ) |
| Deferred tax on revaluation reserve | (134,492 | ) | (134,492 | ) |
| (182,460 | ) | (134,492 | ) | (316,952 | ) |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 9. | TAXATION - continued |
| 2019 |
| Gross | Tax | Net |
| £ | £ | £ |
| Currency translation differences on |
| foreign currency net investments | ( |
) | - | (374,931 | ) |
| Deferred tax on revaluation reserve | (22,181 | ) | (22,181 | ) |
| (374,931 | ) | (22,181 | ) | (397,112 | ) |
| The parent company's corporation tax liability has been reduced due to the availability of relief from double taxation on its overseas branch profits. Without such relief, the corporation tax liability would have been £133,700 (2019: £292,000) |
| 10. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 11. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| Additions |
| At 31 December 2020 |
| AMORTISATION |
| Impairments |
| At 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 12. | TANGIBLE FIXED ASSETS |
| Group |
| Improvements | Fixtures |
| to | Plant and | and |
| property | machinery | fittings |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 January 2020 | 176,529 | 45,625,519 | 98,387 |
| Additions | 116,269 | 3,570,129 | 6,642 |
| Disposals | - | (19,279 | ) | - |
| Exchange differences | - | (670,724 | ) | (1,750 | ) |
| At 31 December 2020 | 292,798 | 48,505,645 | 103,279 |
| DEPRECIATION |
| At 1 January 2020 | 45,392 | 18,458,676 | 47,417 |
| Charge for year | 7,899 | 3,044,811 | 10,135 |
| Eliminated on disposal | - | (2,926 | ) | - |
| Exchange differences | - | (325,008 | ) | (5 | ) |
| At 31 December 2020 | 53,291 | 21,175,553 | 57,547 |
| NET BOOK VALUE |
| At 31 December 2020 | 239,507 | 27,330,092 | 45,732 |
| At 31 December 2019 | 131,137 | 27,166,843 | 50,970 |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 January 2020 | 630,815 | 84,293 | 46,615,543 |
| Additions | 110,557 | 17,524 | 3,821,121 |
| Disposals | - | - | (19,279 | ) |
| Exchange differences | - | (229 | ) | (672,703 | ) |
| At 31 December 2020 | 741,372 | 101,588 | 49,744,682 |
| DEPRECIATION |
| At 1 January 2020 | 307,513 | 84,279 | 18,943,277 |
| Charge for year | 134,711 | 5,240 | 3,202,796 |
| Eliminated on disposal | (2,503 | ) | - | (5,429 | ) |
| Exchange differences | - | (229 | ) | (325,242 | ) |
| At 31 December 2020 | 439,721 | 89,290 | 21,815,402 |
| NET BOOK VALUE |
| At 31 December 2020 | 301,651 | 12,298 | 27,929,280 |
| At 31 December 2019 | 323,302 | 14 | 27,672,266 |
| Tangible fixed assets with a carrying value of £24,500,828 (2019: £25,281,260 ) are pledged as security to the company's bankers. |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 12. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Cost or valuation at 31 December 2020 is represented by: |
| Improvements | Fixtures |
| to | Plant and | and |
| property | machinery | fittings |
| £ | £ | £ |
| Valuation in 2018 | - | 42,177,315 | - |
| Cost | 292,798 | 6,328,330 | 103,279 |
| 292,798 | 48,505,645 | 103,279 |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| Valuation in 2018 | - | - | 42,177,315 |
| Cost | 741,372 | 101,588 | 7,567,367 |
| 741,372 | 101,588 | 49,744,682 |
| The valuation of the groups Rigs was undertaken by an independent commercial valuer. The Rigs were valued on an open market basis. |
| If the group's Rig's had not been revalued they would have been included at a historical cost net book value of £16,757,631 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Improvements |
| to | Plant and | Motor |
| property | machinery | vehicles | Totals |
| £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 January 2020 | 52,955 | 1,419,991 | 224,440 | 1,697,386 |
| Additions | - | 2,100,000 | - | 2,100,000 |
| At 31 December 2020 | 52,955 | 3,519,991 | 224,440 | 3,797,386 |
| DEPRECIATION |
| At 1 January 2020 | 2,471 | 98,566 | 31,737 | 132,774 |
| Charge for year | 2,118 | 172,709 | 61,333 | 236,160 |
| At 31 December 2020 | 4,589 | 271,275 | 93,070 | 368,934 |
| NET BOOK VALUE |
| At 31 December 2020 | 48,366 | 3,248,716 | 131,370 | 3,428,452 |
| At 31 December 2019 | 50,484 | 1,321,425 | 192,703 | 1,564,612 |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 12. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Improvements | Fixtures |
| to | Plant and | and |
| property | machinery | fittings |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 January 2020 | 176,529 | 20,045,941 | 90,625 |
| Additions | 116,269 | 2,263,999 | 3,256 |
| Disposals | - | (19,279 | ) | - |
| Exchange differences | - | - | (1,552 | ) |
| At 31 December 2020 | 292,798 | 22,290,661 | 92,329 |
| DEPRECIATION |
| At 1 January 2020 | 45,392 | 7,606,249 | 47,206 |
| Charge for year | 7,899 | 1,094,340 | 8,591 |
| Eliminated on disposal | - | (2,926 | ) | - |
| At 31 December 2020 | 53,291 | 8,697,663 | 55,797 |
| NET BOOK VALUE |
| At 31 December 2020 | 239,507 | 13,592,998 | 36,532 |
| At 31 December 2019 | 131,137 | 12,439,692 | 43,419 |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 January 2020 | 630,815 | 75,304 | 21,019,214 |
| Additions | - | 16,961 | 2,400,485 |
| Disposals | - | - | (19,279 | ) |
| Exchange differences | - | - | (1,552 | ) |
| At 31 December 2020 | 630,815 | 92,265 | 23,398,868 |
| DEPRECIATION |
| At 1 January 2020 | 307,513 | 75,290 | 8,081,650 |
| Charge for year | 96,052 | 4,678 | 1,211,560 |
| Eliminated on disposal | (2,503 | ) | - | (5,429 | ) |
| At 31 December 2020 | 401,062 | 79,968 | 9,287,781 |
| NET BOOK VALUE |
| At 31 December 2020 | 229,753 | 12,297 | 14,111,087 |
| At 31 December 2019 | 323,302 | 14 | 12,937,564 |
| Tangible fixed assets with a carrying value of £10,682,635 (2019: £10,560,962) are pledged as security to the company's bankers. |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 12. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Cost or valuation at 31 December 2020 is represented by: |
| Improvements | Fixtures |
| to | Plant and | and |
| property | machinery | fittings |
| £ | £ | £ |
| Valuation in 2018 | - | 15,957,600 | - |
| Cost | 292,798 | 6,333,061 | 92,329 |
| 292,798 | 22,290,661 | 92,329 |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| Valuation in 2018 | - | - | 15,957,600 |
| Cost | 630,815 | 92,265 | 7,441,268 |
| 630,815 | 92,265 | 23,398,868 |
| The valuation of the company's Rigs was undertaken by an independent commercial valuer. The Rigs were valued on an open market basis. |
| If the company's Rigs had not been revalued they would have been included at a historical cost net book value of £3,547,814 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Improvements |
| to | Plant and | Motor |
| property | machinery | vehicles | Totals |
| £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 January 2020 |
| Additions |
| At 31 December 2020 |
| DEPRECIATION |
| At 1 January 2020 |
| Charge for year |
| At 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 13. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2020 |
| Additions |
| At 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: L.R.Plot No 209/2486, 1st Floor, Trust Mansion Building, Tubman Street, P.O.Box 5601 - 00100, Nairobi, KENYA |
| Nature of business: |
| % |
| Class of shares: | holding |
| Registered office: C/O Ocorian (Mauritius) Limited, 3rd Floor, Absa House, 68 - 68a Cybercity, Ebene, Republic of Mauritius |
| Nature of business: |
| % |
| Class of shares: | holding |
| Registered office: Av. Kenneth Kaunda,No.609,Sommerschield, Maputo, Mozambique. |
| Nature of business: |
| % |
| Class of shares: | holding |
| Registered office: Springwater House, Old Pit Lane, Danesmoor, Chesterfield, S45 9BQ |
| Nature of business: |
| % |
| Class of shares: | holding |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 14. | STOCKS |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Raw materials and consumables | 767,317 | 1,005,887 |
| Work-in-progress | 19,694 | - |
| 787,011 | 1,005,887 |
| The total carrying amount of stock is pledged as security to the company's bankers. |
| 15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Trade debtors | 5,619,504 | 7,070,019 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 138,879 | 986,397 |
| Amounts due from related entities | - | 1,196,351 | - | 1,196,351 |
| Tax | 245,751 | 153,485 |
| Deferred tax asset | 167,019 | - | - | - |
| Prepayments | 3,252,327 | 4,437,658 |
| 9,423,480 | 13,843,910 |
| 16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 18) | 605,498 | 83,460 |
| Other loans (see note 18) | 2,644,063 | 2,687,301 |
| Hire purchase contracts (see note 19) | 775,389 | 292,925 |
| Trade creditors | 2,779,209 | 3,024,544 |
| Tax | 197,221 | 178,446 |
| Social security and other taxes | 240,529 | 161,627 |
| VAT | 853,718 | 596,690 | 752,644 | 596,690 |
| Other creditors | 511,931 | 1,177,058 |
| Accrued expenses | 3,024,152 | 5,790,310 |
| 11,631,710 | 13,992,361 |
| 17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Hire purchase contracts (see note 19) | 1,832,660 | 778,331 |
| Amounts due to related entities | 16,804,850 | 16,664,510 | 8,674,112 | 8,892,141 |
| 18,637,510 | 17,442,841 |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 18. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank overdrafts | - | 83,460 |
| Bank loans | 605,498 | - |
| Other loans | 64,354 | 107,592 | 14,354 | 107,592 |
| Pre financing arrangement | 2,579,709 | 2,579,709 | 2,579,709 | 2,579,709 |
| 3,249,561 | 2,770,761 |
| 19. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2020 | 2019 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 775,389 | 292,925 |
| Between one and five years | 1,832,660 | 778,331 |
| 2,608,049 | 1,071,256 |
| Company |
| Hire purchase contracts |
| 2020 | 2019 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| 20. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Hire purchase contracts | 2,608,049 | 1,071,256 | 2,608,049 | 1,071,256 |
| The hire purchase and finance lease obligations are secured over the assets to which they relate. |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 21. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Deferred tax |
| Accelerated capital allowances | 1,569,650 | 871,963 |
| Revaluation of fixed assets | 774,041 | 639,538 | 774,041 | 639,538 |
| 2,343,691 | 1,511,501 | 2,343,691 | 1,348,253 |
| Other provisions | 3,329 | 48,530 | - | 45,640 |
| Aggregate amounts | 2,347,020 | 1,560,031 | 2,343,691 | 1,393,893 |
| Group |
| Deferred | Other |
| tax | provisions |
| £ | £ |
| Balance at 1 January 2020 | 1,511,501 | 48,530 |
| Charge to Income Statement during year | 860,946 | 513 |
| Utilised during year | - | (45,640 | ) |
| Unused amounts reversed during year | (159,088 | ) | - |
| Foreign exchange difference on |
| overseas provisions | (4,160 | ) | (74 | ) |
| Amount on revaluation |
| shown in other comprehensive |
| income | 134,492 | - |
| Balance at 31 December 2020 | 2,343,691 | 3,329 |
| Company |
| Deferred | Other |
| tax | provisions |
| £ | £ |
| Balance at 1 January 2020 |
| Charge to Income Statement during year |
| Utilised during year | ( |
) |
| Amount on revaluations |
| shown in other comprehensive |
| income | 134,492 | - |
| Balance at 31 December 2020 |
| 22. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2020 | 2019 |
| value: | £ | £ |
| Ordinary | £1 | 73,002 | 73,002 |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 23. | RESERVES |
| Other reserves relate to the foreign exchange translation differences which arise on the translation of the groups net investment in its foreign subsidiaries. |
| 24. | NON-CONTROLLING INTERESTS |
| The minority interest represents the proportion of the share capital and reserves of subsidiary company's that are not owned by the group. |
| 25. | OTHER FINANCIAL COMMITMENTS |
| The parent company has provided cash guarantees equivalent to £1,224,890 relating to certain overseas contracts |
| Additionally, the parent company has had to provide a performance bond amounting to B$21,029,020 (equivalent to $US 3,128,015) relating to a contract for the operation and maintenance of drilling rigs in Central America. This bond has been guaranteed by the company's bankers and UK Export Finance. |
| The directors are not aware of any reasons why there would be a call on the guarantees or the performance bond. |
| 26. | RELATED PARTY DISCLOSURES |
| Entities over which the entity has control, joint control or significant influence |
| 2020 | 2019 |
| £ | £ |
| Sales | 756,098 | 175,691 |
| Recharge of costs to related party | - | 1,509,027 |
| Amount due from related party | 4,414,364 | 3,776,265 |
| Amount due to related party | - | 1,509,027 |
| Key management personnel of the entity or its parent (in the aggregate) |
| 2020 | 2019 |
| £ | £ |
| Rents payable | 89,667 | 107,600 |
| Amount due to related party | 14,354 | 107,592 |
| A member of the company's key management personnel has provided the parent company's bank with a guarantee amounting to £1.4million as security for the parent company's overdraft facility. |
| Additionally a member of the company's key management personnel owns 25% of one of the company's subsidiaries. |
| Other related parties |
| 2020 | 2019 |
| £ | £ |
| Sales | 285,853 | 162,827 |
| Purchases | - | 51,217 |
| Amount due from related party | - | 1,196,351 |
| Amount due to related party | 16,804,850 | 16,664,510 |
| During the year, a total of key management personnel compensation of £ 237,520 (2019 - £ 237,799 ) was paid. |
| P R MARRIOTT DRILLING LIMITED (REGISTERED NUMBER: 02592487) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 27. | AUDITOR LIABILITY LIMITATION AGREEMENT |
| The parent company entered into an agreement on 16 April 2019 to limit the liability of the auditors to £1,000,000. |
| 28. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is Mr P R Marriott. |