Solent Towage Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02789253 (England and Wales)

SOLENT TOWAGE LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

J Ostensjo

REGISTERED OFFICE:

Second Floor, Testwood House

Testwood Park

Salisbury Road

Totton

Hampshire

SO40 2RW

REGISTERED NUMBER:

02789253 (England and Wales)

AUDITORS:

Hopper Williams & Bell Limited

Statutory Auditor

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

BANKERS:

HSBC Bank plc

165 High Street

Southampton

Hampshire

SO14 2NZ

FIXED ASSETS

Tangible assets

4

65,764

13,059,721

CURRENT ASSETS

Debtors

5

1,261,456

1,049,400

Cash at bank and in hand

2,595,162

864,132

3,856,618

1,913,532

CREDITORS

Amounts falling due within one year

6

(2,105,765

)

(5,382,965

)

NET CURRENT ASSETS/(LIABILITIES)

1,750,853

(3,469,433

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,816,617

9,590,288

CREDITORS

Amounts falling due after more than one year

7

-

(5,843,000

)

NET ASSETS

1,816,617

3,747,288

CAPITAL AND RESERVES

Called up share capital

100,000

100,000

Retained earnings

1,716,617

3,647,288

1,816,617

3,747,288

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the director and authorised for issue on 14 March 2022 and were signed by:

J Ostensjo - Director

1.	STATUTORY INFORMATION

Solent Towage Limited is a private company, limited by shares , registered in England and Wales. 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 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 amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

Going concern

The company meets its day to day working capital requirements through financial support received from the parent undertaking. On this basis, the director considers it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of this financial support. The group have indicated that this support will continue until at least 12 months post the date of signing these accounts.

Turnover

Turnover is measured at the fair value of consideration received or receivable and represents amounts receivable for the construction of tugs and the provision of towage facilities provided in the normal course of business, net of discounts, VAT and other sales related taxes, recognised once the service has been provided.

Tangible fixed assets

Dry / wet dock costs are estimated and capitalised and included within additions, at cost. These costs relate to expenses that are required to comply with the lease legal obligations. These costs are expensed to the profit and loss over the period until the next required dry / wet dock or end of the current towage facilities contract, whichever is earlier.

Tangible fixed assets are stated at cost less accumulated depreciation and any impairment losses. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Dry / wet dock

Over shorter of the term to the next dry / wet dock or end of towage contract

Vessels

Between 15 and 30 years straight line

Fixtures and fittings

10 years straight line

The directors will consider asset valuations and consider if an asset requires impairment.

Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss or there has been a change in market value of the Norwegian krone. 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 an asset (or cash generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit or loss.

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' of FRS 102 to all of 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 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, other debtors, amounts due from group undertakings 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 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, including 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 constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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.

Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.

Current and deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction for event it relates to and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset 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 date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

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.

Foreign currencies

Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date or the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined.

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 in which the employee's services are received.

Leasing commitments

Rentals applicable to operating leases where substantially all of 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 1 (2020 - 1 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Vessels

fittings

Totals

£

£

£

COST

At 1 January 2021

16,991,676

648,769

17,640,445

Additions

20,146

5,244

25,390

Disposals

(16,902,769

)

(654,013

)

(17,556,782

)

At 31 December 2021

109,053

-

109,053

DEPRECIATION

At 1 January 2021

4,294,855

285,869

4,580,724

Charge for year

355,256

30,127

385,383

Eliminated on disposal

(4,606,822

)

(315,996

)

(4,922,818

)

At 31 December 2021

43,289

-

43,289

NET BOOK VALUE

At 31 December 2021

65,764

-

65,764

At 31 December 2020

12,696,821

362,900

13,059,721

Included in the cost of vessels is a dry / wet dock amount relating to costs that are required to comply with legal obligations of £109,053 (2020 - £862,523). Costs are capitalised and are then expensed to the profit and loss over the shorter of the period until the date of the next required dry dock or the end of the current towage facilities contract. Depreciation in relation to this totals £43,289 (2020 - £475,184).

Sale and leaseback

During the year, the vessels and were sold to a third party under a sale and leaseback agreement. There are no unique or unusual provisions included in this agreement. Rental payments have been recorded in line with the leasing commitments accounting policy. Details of the operating lease commitments in relation to this agreement are disclosed in note 11.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

1,116,275

947,310

Amounts owed by group undertakings

-

25,183

Other debtors

66,413

-

Prepayments and accrued income

78,768

76,907

1,261,456

1,049,400

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

1,260,035

367,603

Amounts owed to group undertakings

70,186

4,371,028

Corporation tax

66,916

-

Social security and other taxes

83,761

87,214

Other creditors

555,848

430,440

Accruals and deferred income

69,019

126,680

2,105,765

5,382,965

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Amounts owed to group undertakings

-

5,843,000

8.	LEASING AGREEMENTS

Total operating lease commitments as at 31 December 2021 were £2,253,327 (2020 - £6,640) comprising £3,649 (2020 - £6,640) in relation to motor vehicles and £2,249,678 (2020 - nil) in relation to bareboat charters.

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.	DEFERRED TAXATION

As at the balance sheet date, the company had unrecognised deferred tax assets on losses of £nil (2020 - £986,017).

11.	PARENT COMPANY

Verteks 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 BT Holding AS.

The consolidated accounts can be obtained from the parent company's registered office of Smedasundet 97B, 5525 Haugesund, Norway.