Orwell Offshore Ltd - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 06564547 (England and Wales)

Unaudited Financial Statements

for the Period 1 May 2016 to 24 April 2017

for

Orwell Offshore Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr M S Evans

Mrs B A Evans

Mr S W Hunt

Mr N J Clark

REGISTERED OFFICE:

6 Quay Point

Woodbridge

Suffolk

IP12 4AL

REGISTERED NUMBER:

06564547 (England and Wales)

ACCOUNTANTS:

Guymer King Limited

4 Stone Street Court

Stone Street

Hadleigh

Suffolk

IP7 6HY

FIXED ASSETS

Intangible assets

4

155,417

56,605

Tangible assets

5

41,696

94,755

Investments

6

100,000

100,000

297,113

251,360

CURRENT ASSETS

Inventories

1,370,566

-

Debtors

7

4,163,951

7,746,529

Cash at bank

40,029

347,194

5,574,546

8,093,723

CREDITORS

Amounts falling due within one year

8

5,061,534

7,652,700

NET CURRENT ASSETS

513,012

441,023

TOTAL ASSETS LESS CURRENT LIABILITIES

810,125

692,383

CREDITORS

Amounts falling due after more than one year

9

(121,900

)

-

PROVISIONS FOR LIABILITIES

(13,760

)

(13,760

)

NET ASSETS

674,465

678,623

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

674,365

678,523

674,465

678,623

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 24 April 2017.

The members have not required the company to obtain an audit of its financial statements for the period ended 24 April 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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

The financial statements were approved by the Board of Directors on 23 April 2018 and were signed on its behalf by:

Mr M S Evans - Director

1.	STATUTORY INFORMATION

Orwell Offshore Ltd 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting

Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland', not to disclose related party transactions with wholly owned subsidiaries within the

group.

Critical accounting judgments

In the application of the company's accounting policies, the directors are required to make

judgments that have a significant impact on the amounts recognised. The following are the

critical judgements that the directors have made in the process of applying the company's

accounting policies and that have the most significant effect on the amounts recognised in

the financial statements.

Long term contract recognition

Assessing the expected financial outcome of long term contracts requires an estimate of the

total monies the company will receive under the contract and an estimate of the total costs

that will be incurred. The directors have reviewed each significant contract outstanding at

the end of the financial period to ensure that to the best of their knowledge the appropriate

costs and revenue were correctly recognised. In making its judgment, the directors

considered the detailed criteria for the recognition of the receivables and liabilities. The

directors are satisfied that the amount recognised in the current period is appropriate.

Inventories

Expenditure was incurred in the previous financial year on the design, engineering and

purchase of goods and equipment to be used in the fulfilment of long term contracts. Where

these goods were not delivered for a period of time due to non-payment by a client, and

where there are contractual terms that allow for these goods to remain the property of the

company until full payment has been received, these items have been classified as inventory

where it is either known or there is an expectation that full payment will not be received.

Management have valued the inventory in line with company and accounting policies.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to

the company and the turnover can be reliably measured. Turnover is measured as the fair

value of the consideration received or receivable, excluding discounts, rebates, value added

tax and other sales taxes. The following criteria must also be met before turnover is

recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services

are provided in accordance with the stage of completion of the contract when all of the

following conditions are satisfied:

the amount of turnover can be measured reliably;

it is probable that the company will receive the consideration due under the contract;

the stage of completion of the contract at the end of the reporting period can be

measured reliably; and

the costs incurred and the costs to complete the contract can be measured reliably.

Where applicable, profit on long term contracts is taken as the work is carried out if the final

outcome can be assessed with reasonable certainty. The profit included is calculated on a

prudent basis to reflect the proportion of the work carried out at the period end, by recording

revenue and related costs on a percentage of completion basis as contract activity

progresses. Revenue is calculated as that proportion of total contract value which costs

incurred to date bear to total expected costs for the contract. Revenues derived from

variations on contracts are recognised once the work has been completed. Full provision is

made for losses on all contracts in the period in which they are first foreseen.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are

measured at cost less any accumulated amortisation and any accumulated impairment

losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Tangible fixed assets are measured at cost less accumulated depreciation and accumulated

impairment losses.

Depreciation is provided on the following basis:

Motor vehicles 25% reducing balance

Fixtures & fittings 20% straight line

Office equipment 33% straight line

Investments in subsidiaries

Investments are included in the balance sheet at a value determined by the directors to be

reasonable based on the net assets of the investment company at that date, and are not

depreciated.

Inventories

Inventories have been valued at the lower of cost and estimated selling price to sell. In

respect of work in progress and finished goods, cost included a relevant proportion of

overheads according to the stage of completion.

Financial instruments

All financial assets and liabilities are initially measured at transaction price (including

transaction costs). Debt instruments which meet the conditions of being "basic" financial

instruments as defined in paragraph 11.9 of FRS 102 are subsequently measured at

amortised cost using the effective interest method.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the 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 period 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 period in which it is incurred.

Foreign currencies

Foreign currency transactions are translated into functional currency (GBP) using the spot

exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate.

Non-monetary items measured at historical cost are translated using the exchange rate at

the date of the transaction and non-monetary items measured at fair value are measured

using the exchange rate when fair value was determined.

Hire purchase and leasing commitments

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 company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The directors have a reasonable expectation that the company has adequate resources to

continue in operational existence for the foreseeable future. As is typical within the industry

in which the company operates, this is dependent on the successful completion of certain

long term contracts in respect of which the directors are optimistic. Accordingly the financial

statements are prepared on the going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 16 (2016 - 21 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 May 2016

169,815

Additions

193,065

At 24 April 2017

362,880

AMORTISATION

At 1 May 2016

113,210

Charge for period

94,253

At 24 April 2017

207,463

NET BOOK VALUE

At 24 April 2017

155,417

At 30 April 2016

56,605

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 May 2016

and 24 April 2017

30,870

138,168

169,038

DEPRECIATION

At 1 May 2016

9,432

64,851

74,283

Charge for period

10,290

42,769

53,059

At 24 April 2017

19,722

107,620

127,342

NET BOOK VALUE

At 24 April 2017

11,148

30,548

41,696

At 30 April 2016

21,438

73,317

94,755

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 May 2016

and 24 April 2017

100,000

NET BOOK VALUE

At 24 April 2017

100,000

At 30 April 2016

100,000

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

24.4.17

30.4.16

£

£

Trade debtors

3,662,652

6,678,671

Amounts owed by group undertakings

81,187

-

Other debtors

420,112

1,067,858

4,163,951

7,746,529

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

24.4.17

30.4.16

£

£

Bank loans and overdrafts

-

8,848

Trade creditors

4,715,980

3,359,735

Amounts owed to group undertakings

-

138,300

Taxation and social security

59,014

48,823

Other creditors

286,540

4,096,994

5,061,534

7,652,700

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

24.4.17

30.4.16

£

£

Other creditors

121,900

-

10.	GUARANTEES AND OTHER FINANCIAL COMMITMENTS

24.4.17

30.4.16

£

£

Contracted but not provided for in the

financial statements

579,195

-

In addition to the above intangible asset commitment the company had other operating lease

commitments of £56,300 (2016 - £72,000)

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following interest free advances and credits to a director subsisted during the period

ended 24 April 2017 and the year ended 30 April 2016:

24.4.17

30.4.16

£

£

Mr M S Evans

Balance outstanding at start of period

61,110

-

Amounts advanced

-

61,110

Amounts repaid

(61,110

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of period

-

61,110

12.	FIRST TIME ADOPTION OF FRS 102

The policies applied under the entity's previous accounting framework are not materially

different to FRS102 and have not impacted on equity or income statement.