Directors Report 1

The directors present their strategic report for the year ended 30 September 2018.
The company was established in the financial year ending 30 September 2014 as part of an overall group reconstruction and is an intermediate holding company responsible for the overall management of the group.
The group's principal activities are the manufacture and supply of fire retardant coatings, sub-sea insulation and buoyancy and marine products.
Business review The company made (loss)/profit before tax of (f 1,391,590) (2017 - ?3,315,806).
During the year, dividends of fNil (2017 - ?2,000,000) were declared.
Principal risks and uncertainties Group sales are dependent on capital investment in the oil and gas industry. The effect of a low oil price is still evident in the marketplace but increasing market activity has enabled the Group to forecast modest growth in sales and profits for the coming year. The majority of future growth is driven by new products which are currently being introduced to the market.
Margins remain under pressure as our customers look to cut costs and competition intensifies due to the market contraction. It is expected that the Group will deliver a reduced margin in the coming period compared with the current year as it works to deliver customer expectations and defend its market share.
The Group will continue to invest up to 10% of its revenue to support its extensive Research and Development programmes. It is focused on developing new products and enhancing the performance of existing products. The policy is fundamental to ensuring the Group will be well placed to take advantage of future growth in the Oil & Gas industry and in keeping the Group at the forefront of its technologies. Financial risk management objectives and policies The management of the company and the execution of its strategy are subject to a number of risks. The principle risk and uncertainties affecting the group include the following.
Credit risk The company is subject to the risk of financial loss if a customer fails to meet its contractual obligations. Management have prepared a detailed three year forecast which shows each subsidiary should continue to trade as a going concern in the foreseeable future.

Is Page 2 Advanced Insulation Group Limited
Strategic Report for the Year Ended 30 September 2018
Liquidity and interest rate risk In order to maintain liquidity, and to ensure sufficient funds are available for ongoing operations and future developments, the Group use working capital funding from its bankers. The company does not undertake any hedging in this area. Approved by the Board on a:03.72:0.113 and signed on its behalf by:

A D Bennion Director

Page 3 Advanced Insulation Group Limited
Directors' Report for the Year Ended 30 September 2018

The directors present their report and the financial statements for the year ended 30 September 2018.
Directors of the company The directors who held office during the year were as follows: A D Ben nion AM King S H Shepherd D A Williams M 1 Blake
Directors' responsibilities statement The directors acknowledge their responsibilities for preparing the Strategic report, the Directors' report 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), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. 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 of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to: ?select suitable accounting policies and apply them consistently; ?make judgements and accounting estimates that are reasonable and prudent; ?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and ?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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable ' steps for the prevention and detection of fraud and other irregularities.

Page 4

Advanced Insulation Group Limited
Directors' Report for the Year Ended 30 September 2018
Disclosure of information to the auditors The directors confirm that:
?so far as the directors are aware, there is no relevant audit information of which the Company's auditor is unaware, and ?the directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Auditor The auditor, Grant Thornton UK LIP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Approved by the Board on 2-8-*- 10i9 and signed on its behalf by:

A D Ben nion Director

Page 5 Advanced Insulation Group Limited
Independent Auditor's Report to the Members of Advanced Insulation Group Limited
Opinion Our opinion on the financial statements is unmodified We have audited the financial statements of Advanced Insulation Group Limited (the 'company') for the year ended 30 September 2018 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, and 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 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements: ?give a true and fair view of the state of the company's affairs as at 30 September 2018 and of its loss 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 as applied to listed entities, 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.
Who we are reporting to 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 an auditor's report 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.
Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: ?the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or ?the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

44; Page 6 Advanced Insulation Group Limited
Independent Auditor's Report to the Members of Advanced Insulation Group Limited

Overview of our audit approach ?Overall materiality: ?493,000, which represents 2% of the
?No key audit matters were identified. ?Full scope audit procedures were performed on the financial
Key audit matters The graph below depicts the audit risks identified and their relative significance based on the extent of the financial statement impact and the extent of management judgement.
A High

Potential financial statement impact

Low
Low Extent of management judgement High
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those that had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team.
We have determined that there are no key audit matters to communicate in our report.
Our application of materiality We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality in determining the nature, timing and extent of our work and in evaluating the results of that work.
We determined materiality for the audit of the financial statements as a whole to be ?493,000 which is 2% of gross assets capped at 75% of overall group materiality. This benchmark is considered the most appropriate because the company is a holding company with few transactions whose principal asset is its investments in subsidiary companies.

Page 7 Loan note creditors

Interest paid arid payable Management override of controls
Fixed asset investments

Turnover and
receivable Operating costs. Bank balances. Carrying value of intercoiiipany receivables and payables.

Advanced Insulation Group Limited
Independent Auditor's Report to the Members of Advanced Insulation Group Limited
Materiality for the current year is higher than the level that we determined for the year ended 30 September 2017 to reflect an increase in group materiality upon which the company's materiality has been capped.
We use a different level of materiality, performance materiality, to drive the extent of our testing and this was set at 75% of financial statement materiality.
The graph below illustrates how performance materiality interacts with our overall materiality and the tolerance for potential uncorrected misstatements. We also determine a lower level of specific materiality for directors' remuneration and related party transactions.
We determined the threshold at which we will communicate misstatements to the audit committee to be ?25,000. In addition we will communicate misstatements below that threshold that, in our view, warrant reporting on qualitative grounds.
An overview of the scope of our audit Our audit approach was a risk-based approach founded on a thorough understanding of the company's business, its environment and risk profile. The focus of our work was on the material balances, where we covered 100% of the investment in subsidiary undertakings and of the loans from related parties. There was no change in our scope from the prior year.
?Other information The directors are responsible for the other information. The other information comprises the information included in the annual report' set out on pages 2 to 25 other than the financial statements and our auditor's report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Page 8
Overall materiality

?Tolerance for potential uncorrected mistatements ?Performance materiality

Advanced Insulation Group Limited
Independent Auditor's Report to the Members of Advanced Insulation Group Limited
Our opinion on other matters prescribed by the Companies Act 2006 are unmodified In our opinion, based on the work undertaken in the course of the audit: ?the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ?the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matter on which we are required to report under the Companies Act 2006 In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ?adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ?the 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 for the financial statements As explained more fully in the directors' responsibilities statement set out on page 4, 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 is 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www .uk/auditorsresponsibilities. This description forms part of our auditor's report.

Tim Lincoln BA ACA Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Bristol Dated: , ?1 Page 9 Advanced Insulation Group Limited
Statement of Comprehensive Income for the Year Ended 30 September 2018
Sheet1 There were no recognised gains and losses for 2018 or 2017 other than those included in the statement of comprehensive income.
There was no other comprehensive income for 2018 (2017: MO.

The notes on pages 13 to 25 form an integral part of these financial statements. Page 10 Advanced Insulation Group Limited
(Registration number: 08848797) Statement of Financial Position as at 30 September 2018
Sheet2 The financial statements were approved and authorised for issue by the Board on a3.:.04.7.20.6.. and signed on its behalf by:

A D Bennion Director

The notes on pages 13 to 25 form an integral part of these financial statements. Page 11 Advanced Insulation Group Limited
Statement of Changes in Equity for the Year Ended 30 September 2018
Sheet3 Sheet4 The notes on pages 13 to 25 form an integral part of these financial statements. Page 12 Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018

1 General information The company is a private company limited by share capital incorporated in England and Wales. The address of its registered office is: Unit E Quedgeley West Business Park Bristol Road Gloucester GL2 4PA The principal activity is that of an intermediate holding company responsible for the overall management of the group. The group's principal activities are the manufacture and supply of fire retardant coatings, sub-sea insulation and buoyancy and marine products.

2 Accounting policies
Basis of preparation of financial statements These financial statements have been prepared in accordance with applicable accounting standards ? and in accordance with Financial Reporting Standard 101 - 'The Reduced Disclosure Framework' (FRS 101). The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have all been applied consistently throughout the year unless otherwise stated.
The financial statements have been prepared on a historical cost basis except for the revaluation of financial instruments.
The financial statements are presented in Sterling (E).
The following principal accounting policies have been applied:
Group accounts not prepared The financial statements contain information about Advanced Insulation Group Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Advanced Insulation Holdings Limited, a company registered in the United Kingdom.
Financial reporting standard 101 - reduced disclosure exemptions The company has taken advantage of the following disclosure exemptions under FRS 101: ?the requirements of IAS 7 Statement of Cash Flows ?the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures

Page 13

Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
?the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
Turnover Turnover represents management charges received from other group companies, excluding value added tax.
Investments Investments in subsidiaries are measured at cost less accumulated impairment.
Trade debtors and other debtors Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Financial instruments The company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets The company classifies all of its financial assets as loans and receivables.
Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.
Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the company will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For trade receivables, which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses in the Statement of comprehensive income. On confirmation that the trade receivable will not be collected, the gross carrying value of the asset is written off against the associated provision.

Page 14

Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
Financial liabilities The company classifies all of its financial liabilities as liabilities at amortised cost.
At amortised cost Financial liabilities at amortised cost including bank borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried into the balance sheet.
Trade creditors and other creditors Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Dividends Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.
Pensions and other post employment benefits Defined contribution pension plan The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.
Short term employee benefits Short term employee benefits including holiday entitlement, are current liabilities included in pension and other employee obligations, measured at the undiscounted amount that the company expects to pay as a result of unsettled entitlement.
Income taxes Tax is recognised in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Calculation of current tax is based on tax rates and laws that have been enacted or substantively enacted by the end of the reporting period.
Page 15 0.0 Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the statement of financial position date, except that: ?the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ?any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the difference between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
3 Judgements in applying accounting policies and key sources of estimation uncertainty
The following are significant management judgements in applying the accounting policies of the company that have the most significant effect on the financial statements.
Impairment of non-financial assets and goodwill
In assessing impairment, management estimates the recoverable amount of each asset based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

4 Turnover The whole turnover is attributable to the principal activity of the company.
All turnover arose within the United Kingdom.

Page 16 Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018

5 Auditors' remuneration The company paid the following amounts to its auditors in respect of the audit of the financial statements and for other services provided to the company: 2018 2017
Audit of the financial statements 5,200 6,000 Taxation advice 41,164 Sheet5 The average monthly number of employees, including the directors, during the year was as follows: Sheet6 During the year, retirement benefits were accruing to 3 directors (2017 - 3) in respect of defined contribution pension schemes.
The highest paid director received remuneration of ?241,832 (2017 -?215,964).
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounts to ?11,962 (2017 - ?14,698).

Page 17

Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
8 Income from shares in group undertakings 2018 2017 ? Dividends received from unlisted investments (500,000) (5,300,000) Sheet7 The tax assessed for the year differs from the standard rate of corporation tax in the UK of 19% Sheet8 At the year end the company had an unrecognised deferred tax asset of ?466,000 (2017: ?304,000) relating to trading losses of ?25,986 (2017: nil) and short term timing differences of ?440,014 (2017: ?304,000).
Page 18
Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018

11 Dividends

Dividends paid on equity capital 2018 2017
2000000.0 12 Fixed asset investments
Sheet9 Page 19 Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018

Details of undertakings
The following were subsidiary undertakings of the company: Sheet10 Page 20 Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
The shares in Advanced Insulation Limited are held directly by Advanced Insulation Group Limited.
Shareholdings in all other companies are held by Advanced Insulation Limited, with the exception of: - 0.75% held by Advanced Insulation Systems Limited, Advanced Insulation Systems do Brazil Ltda 98.75% held by Advanced Insulation Limited Contraflex Kazakhstn LLP - held by Advanced Insulation Contracting Limited AIS FZE - held by AIS Assets Holding Limited Advanced Insulation Korea Limited - held by AIS FZE C-Ling Limited - held by Advanced Insulation Systems Limited The aggregate of the share capital and reserves as at 30 September 2018 and of the profit or loss for the year ended on that date for the subsidiary undertakings were as follows: Sheet11 Page 21 Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
Sheet12 Amounts owed to group undertakings are unsecured, repayable on demand and interest free.
Sheet13 Page 22 Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018

"B" Secured Loan Notes are payable in equal quarterly instalments of ?250,000 from June 2017 to June 2018 and equal quarterly instalments of ?500,000 thereafter until 31 December 2020, followed by a bullet repayment. A number of the quarterly instalment repayments have been temporarily waived during the year with the agreement of the investor.
Post year end the funder confirmed its support for the business, and they have confirmed that the ?7.5 million bullet repayment of "A" Secured loan notes due in March 2019 has been waived until March 2020. Sheet14 Interest accruing on the "C" Loan Notes is capable of being settled (at the option of Advanced Insulation Group Limited) in cash or by way of payment in kind notes (PIK'S), subject to the right to opt out of PIK on the part of the loan note holder, or by being capitalised and added to the debt balance.
The Loan Notes are secured on the assets of the company and its subsidiary undertakings.
Sheet15 Page 23 Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018

17 Share capital
Shares classified as equity
Allotted, called up and fully paid shares
2018 2017 No. No.
Ordinary of ?1 each 26,646,381 26,646,381 26,646,381 26,646,381
18 Pension commitments During the year the company made contributions to a defined contribution pension scheme totalling ?86,806 (2017 - ?103,600). At the year end the company had outstanding contributions owed to the pension scheme of ?9,502 (2017 - ?8,086).

19 Related party transactions During the year, interest was accrued on loan notes held by Growth Capital Partners, a related party by virtue of a common director, as follows:
A Loan Notes: ?450,000 (period ended 30 September 2017 ?449,690) B1 Loan Notes: ?641,555 (period ended 30 September 2017 ?669,460) B2 Loan Notes: ?149,010 (period ended 30 September 2017 ?155,492) C Loan Notes: ?894,891 (period ended 30 September 2017f894,275)
The year end balances to which these loan interest charges relate are included in note 15.
As a wholly owned subsidiary of Advanced Insulation Holdings Limited, the company is exempt from the requirements of FRS 101 to disclose transactions with other members of the group.
During the year the company paid management charges of ?102,313 (2017 - ?87,691) to Growth Capital Partners LLP, a company under the control of Mr J Blake a director of Advanced Insulation Holdings Limited. At the year end ?Nil (2017 - ?7,686) was outstanding to Growth Capital Partners LLP.

Page 24

Advanced Insulation Group Limited
Notes to the Financial Statements for the Year Ended 30 September 2018

20 Parent and ultimate parent undertaking The immediate and ultimate parent undertaking by virtue of its controlling holding in the share capital of the company is Advanced Insulation Holdings Limited, which is incorporated in the United Kingdom. There is no ultimate controlling related party.

Directors Report 2

The directors present their strategic report for the year ending 30 September 2017.
The company was established in the financial year ending 30 September 2014 as part of an overall group reconstruction and is an intermediate holding company responsible for the overall management of the group.
The Group's principal activities are the manufacture and supply of fire retardant coatings, sub-sea insulation and buoyancy and marine products.
Business review The company made a profit before tax of /2,315,806 (2016: ?6,913,050). During the year, dividends of ?2,000,000 (2016: ?6,500,000) were declared. Principal risks and uncertainties
Group sales are dependent on capital investment in the oil and gas industry. The effect of a low oil price is still evident in the marketplace with weak demand. The Group has accordingly forecast a decline in sales and profits in the coming year before returning to growth in 2019. The majority of future growth is driven by new products which are currently being introduced to the market.
Margins remain under pressure as our customers look to cut costs and competition intensifies due to the market contraction. It is expected that the Group will deliver a reduced margin in the coming period compared with the current year as it works to deliver customer expectations and defend its market share.
The Group will continue to invest up to 10% of its revenue to support its extensive Research and Development programmes. It is focused on developing new products and enhancing the performance of existing products. The policy is fundamental to ensuring the Group will be well placed to take advantage of future growth in the Oil & Gas industry and in keeping the Group at the forefront of its technologies.
Financial risk management objectives and policies
The management of the company and the execution of its strategy are subject to a number of risks. The principal risk and uncertainties affecting the company include the following:
Credit risk
The company is subject to the risk of financial loss if a fellow subsidiary fails to meet its contractual obligations. Management have prepared detailed three year forecasts which show each subsidiary should continue to trade as a going concern in the foreseeable future.
Liquidity and interest rate risk
In order to maintain liquidity, and to ensure sufficient funds are available for ongoing operations and future developments, the Group use working capital funding from its bankers.
The company does not undertake any hedging in this area.

Page 1

? Advanced Insulation Group Limited
Strategic Report (continued) For the Year Ended 30 September 2017

This report was approved by the board and signed on its behalf.

?A D Bennion Director

Date: 2416-1(

?

Page 2 Advanced Insulation Group Limited
Directors' Report For the Year Ended 30 September 2017
The directors present their report and the financial statements for the year ended 30 September 2017.
Directors
The directors who served during the year were:
A D Bennion S H Shepherd D A Williams A M King (appointed 18 April 2017) M J Blake (appointed 24 August 2017) A Sweeney (resigned 30 November 2016) E Weeks (resigned 31 December 2016) K McDonald (resigned 24 August 2017)
Directors' responsibilities statement
The directors are responsible for preparing the Strategic report, the Directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. 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 and profit or loss of the Company 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; ?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ?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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

? Advanced Insulation Group Limited
Directors' Report (continued) For the Year Ended 30 September 2017 Disclosure of information to auditor The directors confirm that:
?so far as each director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ?the directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Auditor
The auditor, Grant Thornton UK LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.

A D Bennion Director
Date: at-V

? Page 4

Gra ntThornton

Independent Auditor's Report to the Members of Advanced Insulation Group Limited
Opinion Our opinion on the financial statements is unmodified
We have audited the financial statements of Advanced Insulation Group Limited (the 'company') for the year ended 30 September 2017, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and 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 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements: ?give a true and fair view of the state of the company's affairs as at 30 September 2017 and of its 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 as applied to listed entities, 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.
Who we are reporting to
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 an auditor's report 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.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: ?the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or ?the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Page 5

GrantThornton

Independent Auditor's Report to the Members of Advanced Insulation Group Limited (continued)
Overview of our audit approach Overall materiality: ?426,000, which represents 2% of the company's total assets capped at 90% of overall group materiality; ?We have determined that there are no key audit matters to communicate in our report; and ?There were no changes in scope of the audit from the prior year.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those that had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters We have determined that there are no key audit matters to communicate in our report. Our application of materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality in determining the nature, timing and extent of our work and in evaluating the results of that work.
We determined materiality for the audit of the financial statements as a whole to be ?426,000, which is 2% of total assets, capped at 90% of overall group materiality. This benchmark is considered the most appropriate because the company is a holding company with few transactions whose principal asset is its investment in subsidiary companies.
Materiality for the current year is lower than the level that we determined for the year ended 30 September 2016 which was ?430,000.
We also determine a lower level of specific materiality for directors' remuneration and related party transactions.
We determined the threshold at which we will communicate misstatements to the audit committee to be ?21,300. In addition we will communicate misstatements below that threshold that, in our view, warrant reporting on qualitative grounds.
An overview of the scope of our audit
Our audit approach was a risk-based approach. founded on a thorough understanding of the company's business, its environment and risk profile. The focus of our work was on the largest balances, where we covered 100% of the investment in subsidiary undertakings and of the loans from related parties. There was no change in our scope from the prior year.

Page 6

Grant Thornton

Independent Auditor's Report to the Members of Advanced Insulation Group Limited (continued)
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Our opinion on other matters prescribed by the Companies Act 2006 is unmodified
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matter on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ?adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ?the 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.

Page 7

? ? GrantThornton

Independent Auditor's Report to the Members of Advanced Insulation Group Limited (continued)

Responsibilities of directors for the financial statements
As explained more fully in the directors' responsibilities statement set out on page 3, 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 is 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
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 auditor's report.

Timothy Lincoln BA ACA Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Bristol 14;691; 9-0

Date: Page 8
Advanced Insulation Group Limited

Directors Report 3

The directors present their strategic report for the year ending 30 September 2016.
The company was established in the financial year ending 30 September 2014 as part of the overall group reconstruction and is an intermediate holding company responsible for the overall management of the group.
Advanced Insulation Holdings Limited The Group's principal activities are the manufacture and supply of fire retardant coatings, sub-sea insulation and buoyancy and marine products.
Business review The company made a profit before tax of ?6,913,050 (2015:L6,759,761). During the year, dividends of L6,500,00 (2015: ?5,800,000) were declared. Principal risks and uncertainties
Group sales are dependant on capital investment in the oil and gas industry. The current low oil price has reduced capital investment into the sector. The Group has accordingly reduced the rate of growth in its forecasts for the next three years to reflect the current market situation with the majority of future growth coming from new products currently being introduced to the market. However, the Group has a very strong order book and a solid pipeline of future projects.
Margins are also under pressure from our major customers as they look to reduce costs. It is expected that the Group will deliver a slightly reduced margin in the coming period as compared to the current year as it works with its customers to deliver savings.
Financial risk management objectives and policies
The management of the company and the execution of its strategy are subject to a number of risks. The principal risk and uncertainties affecting the company include the following:
Credit risk
The company is subject to the risk of financial loss if a fellow subsidary fails to meet its contractual obligations. Management have prepared detailed three year forecasts which show each subsidary should continue to trade as a going concern in the foreseable future..
Liquidity and interest rate risk
In order to maintain liquidity, and to cnsurc sufficient funds arc available for ongoing operations and future developments, the Group use working capital funding from its bankers.
The company does not undertake any hedging in this area.
This report was approved by the board on 19 ()aerate( 201?, and signed on its behalf.

A D Bennion Director
Page 1 Advanced Insulation Group Limited
Directors' Report For the Year Ended 30 September 2016
The directors present their report and the financial statements for the year ended 30 September 2016.
Directors responsibilities statement
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires thc directors to prepare financial statcmcnts for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. 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 of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: ?select suitable accounting policies and then apply them consistently; ?make judgments and accounting estimates that are reasonable and prudent; ?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ?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 transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Directors
The directors who served during the year were:
A D Bennion K McDonald S H Shepherd A Sweeney (resigned 30 November 2016) E Weeks D A Williams
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
?so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ?the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Page 2 Advanced Insulation Group Limited

Directors' Report (continued) For the Year Ended 30 September 2016

Auditor
The auditor, Grant Thornton UK LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 19 eeeeryibef 20 it, and signed on its behalf.

A D Bennion Director

Page 3

GrantThornton

Independent Auditor's Report to the Shareholders of Advanced Insulation Group Limited
We have audited the financial statements of Advanced Insulation Group Limited for the year ended 30 September 2016, set out on pages 6 to 22. The relevant financial reporting framework that has been applied in their preparation is the Companies Act 2006 and the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 'Reduced Disclosure Framework'.
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 an Auditor's report 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.
Respective responsibilities of Directors and Auditor
As explained more fully in the Directors' responsibilities statement on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors'.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at WWW. frc.org.uk/auditscopeukprivate. Opinion on financial statements In our opinion the financial statements:
?give a true and fair view of the state of the Company's affairs as at 30 September 2016 and of its profit or loss 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. Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with those financial statements.

Page 4

GrantThornton

Independent Auditor's Report to the Shareholders of Advanced Insulation Group Limited (continued)
Matters on which we are required to report by exception
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, or returns adequate for our audit have not been received from branches not visited by us; or ?the 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 th ation and explanations we require for our audit.

Tim Lincoln (Senior s ory auditor) for and on behalf of Grant Thornton UK TIP Chartered Accountants Statutory Auditor Bristol Date: IC 'D.R....calAdocapj

Page 5 Advanced Insulation Group Limited

Directors Report 4

The directors present their strategic report for the year ending 30 September 2015.
The company was established in the previous financial year as part of the overall group reconstruction and is an intermediate holding company responsible for the overall management of the group.
The Group's principal activities are the manufacture and supply of fire retardant costings, sub-sea insulation and buoyancy and marine products.
Business review
The company made a profit before tax of ?6,764,125 (2014 - ?3,099,313).
Principal risks and uncertainties
Group sales are dependent on capital investment in the oil and gas industry. The current low oil price has reduced capital investment into the sector. The Group has accordingly reduced the rate of growth in its forecasts for the next three years to reflect the current market situation with the majority of future growth coming from new products currently being introduced to the market. However, the group has a very strong order book and a solid pipeline of future projects.
Margins are also under pressure from our major customers as they look to reduce costs. It is expected that the Group will deliver a slightly reduced margin in the coming period as compared to the current year as it works with its customers to deliver savings.

This report was approved by the board on and signed on its behalf.

A D Bennion Director

Page 1

Advanced Insulation Group Limited
Directors' Report For the year ended 30 September 2015
The directors present their report and the audited financial statements for the year ended 30 September 2015. Directors responsibilities statement
The directors are responsible for preparing the Strategic report, the Directors' report 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 of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: ?select suitable accounting policies and then apply them consistently; ?make judgments and accounting estimates that are reasonable and prudent; ?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ?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 transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Principal activities
The principal activity of the company in the period under review was that of an intermediate holding company, managing group activities.
Dividends
During the year, dividends of L5,800,000 (2014: L4,000,000) was recommended.
Directors
The directors who served during the year were:
A D Bennion K McDonald S H Shepherd A Sweeney (appointed 28 January 2015) E Weeks D A Williams

?Page 2 Advanced Insulation Group Limited
Directors' Report For the year ended 30 September 2015
Financial instruments risk and management
Foreign currency risk It is group policy that exposures resulting from sales and purchases in foreign currency are matched where possible, and the net exposure may be hedged by the use of forward exchange contracts. The group does not undertake speculative foreign exchange dealings for which there is no underlying exposure.
The company also faces currency exposures on the translation into sterling of the profits and net assets of overseas subsidiaries. The company does hedge these profit translation exposures on larger contracts to reduce the risk of losses through exchange rate fluctuations.
Credit risk Management has a credit policy in place and exposure to credit risk is monitored on an ongoing basis. Credit evaluations are carried out on all customers requiring credit and, where appropriate, the group endeavours to minimise risk by the use of trade finance instruments such as letters of credit and insurance. At the balance sheet date there were no significant concentrations of credit risk.
Interest rate risk The group does not undertake any hedging activity in this area.
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that: ?so far as that director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ?that director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Auditor
Under section 487(2) of the Companies Act 2006, Grant Thornton UK LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on )2. t?-IcaA col and signed on its behalf.

A D Bennion Director

Page 3

Gra ntThornton

Independent Auditor's Report to the Members of Advanced Insulation Group Limited

We have audited the financial statements of Advanced Insulation Group Limited for the year ended 30 September 2015, which comprise the Profit and loss account, the Balance sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 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 an Auditor's report 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.
Respective responsibilities of directors and auditor As explained more fully in the Directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements In our opinion the financial statements: ?give a true and fair view of the state of the Company's affairs as at 30 September 2015 and of its 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.
Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Page 4

GrantThornton
Independent Auditor's Report to the Members of Advanced Insulation Group Limited

Matters on which we are required to report by exception 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, or returns adequate for our audit have not been received from branches not visited by us; or ?the 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.

James Morter (Senior statutory auditor) for and on behalf of Grant Thornton UK LLP Statutory Auditor Chartered Accountants Bristol Date: t 11/4,1 goo eujik

Page 5 Advanced Insulation Group Limited

Directors Report 5

The directors present their strategic report for the period 16 January 2014 to 30 September 2014.
The company was established in the current financial year as part of the overall group reconstruction and is an intermediate holding company responsible for the overall management of the group.
The Group's principal activities are the manufacture and supply of fire retardant coatings, sub-sea insulation and buoyancy and marine products.
REVIEW OF BUSINESS The company made a loss before tax of f901k due primarily to the interest charge of f1,151k on Loan Notes due to Growth Capital Partners.
PRINCIPAL RISKS AND UNCERTAINTIES Group sales are dependent on capital investment in oil and gas infrastructure. Energy usage is forecast to increase as a result of population and income growth which is driving strong capital expenditure growth. However, the current low oil price will affect the group in the short term as oil companies reduce their expenditure. To offset this the group will continue to expand geographically but will also look to reduce its cost base in the next period. However, in the long term the Directors still expect to see strong growth over a three to five year period.
ON BEHALF OF THE BOARD:

A D Bennion - Director

Date:

Page 2
ADVANCED INSULATION GROUP LIMITED
Report of the Directors FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

The directors present their report with the financial statements of the company for the period 16 January 2014 to 30 September 2014.
INCORPORATION AND COMMENCEMENT OF TRADING The company was incorporated on 16 January 2014 and commenced trade on 21 March 2014.
PRINCIPAL ACTIVITY The principal activity of the company in the period under review was that of an intermediate holding company, managing group activities.
DIVIDENDS An interim dividend of ?0.1559 per share was paid on 30 September 2014. The directors recommend that no final dividend be paid.
The total distribution of dividends for the period ended 30 September 2014 will be ?4,000,000.
DIRECTORS The directors who have held office during the period from 16 January 2014 to the date of this report are as follows:
S H Shepherd - appointed 21 March 2014 A D Bennion - appointed 21 March 2014 E Weeks - appointed 7 February 2014 D A Williams - appointed 21 March 2014 Miss K McDonald - appointed 7 February 2014 M J McNair - appointed 16 January 2014 - resigned 7 February 2014 J B Pentland - appointed 7 February 2014 - resigned 7 February 2014
FINANCIAL INSTRUMENTS RISK AND MANAGEMENT Foreign currency risk It is group policy that exposures resulting from sales and purchases in foreign currency are matched where possible, and the net exposure may be hedged by the use of forward exchange contracts. The group does not undertake speculative foreign exchange dealings for which there is no underlying exposure.
The company also faces currency exposures on the translation into sterling of the profits and net assets of overseas subsidiaries. The company does hedge these profit translation exposures on larger contracts to reduce the risk of losses through exchange rate fluctuations.
Credit risk Management has a credit policy in place and exposure to credit risk is monitored on an ongoing basis. Credit evaluations are carried out on all customers requiring credit and, where appropriate, the group endeavours to minimise risk by the use of trade finance instruments such as letters of credit and insurance. At the balance sheet date there were no significant concentrations of credit risk.
Interest rate risk The group does not undertake any hedging activity in this area.

Page 3
ADVANCED INSULATION GROUP LIMITED
Report of the Directors FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

STATEMENT OF DIRECTORS' RESPONSIBILITIES The directors are responsible for preparing 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 of the profit or loss of the company 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; -state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.
AUDITORS The auditors, Haines Watts Bristol Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
ON BEHALF OF THE BOARD:

A D Bennion - Director
Date: *)-i

Page 4
Report of the Independent Auditors to the Members of Advanced Insulation Group Limited

We have audited the financial statements of Advanced Insulation Group Limited for the period ended 30 September 2014 which comprise the Profit and Loss Account, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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.
Respective responsibilities of directors and auditors 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. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Strategic Report and the Report of the Directors to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements In our opinion the financial statements: -give a true and fair view of the state of the company's affairs as at 30 September 2014 and of its profit for the period 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.
Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the 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.

Page 5
Report of the Independent Auditors to the Members of Advanced Insulation Group Limited

Matters on which we are required to report by exception 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, or returns adequate for our audit have not been received from branches not visited by us; or -the 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.

CfLI.LJA Matthew J Bracher FCA (Senior Statutory Auditor) for and on behalf of Haines Watts Bristol Limited Chartered Accountants and Statutory Auditors Hyland Mews 21 High Street Clifton Bristol BS8 2YF Date: -lel c'11"2-0

Page 6 Sheet1
CONTINUING OPERATIONS None of the company's activities were acquired or discontinued during the current period.
TOTAL RECOGNISED GAINS AND LOSSES The company has no recognised gains or losses other than the profit for the current period.

The notes form part of these financial statements

Page 7
ADVANCED INSULATION GROUP LIMITED (REGISTERED NUMBER: 08848797) Sheet2
The fmancial statements were approved and authorised for issue by the Board of Directors on were signed on its behalf by: '41 1?-0 is
?
A D Bermion - Director S H Shepherd - Director

The notes form part of these financial statements

Page 8
ADVANCED INSULATION GROUP LIMITED
Notes to the Financial Statements FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

1. ACCOUNTING POLICIES
Accounting convention The financial statements have been prepared under the historical cost convention and are in accordance with applicable accounting standards.
Preparation of consolidated financial statements The financial statements contain information about Advanced Insulation Group Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Advanced Insulation Holdings Limited, a company registered in England & Wales..
Financial Reporting Standard number 1 Exemption has been taken from preparing a cash flow statement on the grounds that the parent company includes the subsidiary in its published financial statements.
Turnover Turnover represents management charges made to other group companies, excluding value added tax.
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 have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.
Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Hire purchase and leasing commitments Rentals paid under operating leases are charged to the profit and loss account 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 the profit and loss account in the period to which they relate.
Investments Investments are stated at cost, less any provision for an impairment in value. The carrying value of investments is examined each year and any fall in value below cost is immediately provided for.
Financial instruments Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

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ADVANCED INSULATION GROUP LIMITED
Notes to the Financial Statements - continued FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

2.TURNOVER
The turnover and profit before taxation are attributable to the one principal activity of the company.
An analysis of turnover by geographical market is given below:

United Kingdom 802729.0
802729.0
3.STAFF COSTS Wages and salaries 359,724 Social security costs 40,790 Other pension costs 13,272
413786.0
The average monthly number of employees during the period was as follows:
Management staff 7
4.OPERATING PROFIT
The operating profit is stated after charging:

Other operating leases 386 Auditors' remuneration 1,850 Other non-audit services 875
Directors' remuneration 256,849 Directors' pension contributions to money purchase schemes 9,585
The number of directors to whom retirement benefits were accruing was as follows:
Money purchase schemes 2
Information regarding the highest paid director is as follows:
Emoluments etc 122,924 Pension contributions to money purchase schemes 5,063

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ADVANCED INSULATION GROUP LIMITED
Notes to the Financial Statements - continued FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

5.INCOME FROM SHARES IN GROUP UNDERTAKINGS
The company received a dividend in the period of ?4,000,000 from its subsidiary, Advanced Insulation Limited.
6.INTEREST PAYABLE AND SIMILAR CHARGES
Loan note interest 1,150,223 Hire purchase 557
1150780.0
7.TAXATION
Analysis of the tax charge No liability to UK corporation tax arose on ordinary activities for the period.
Factors affecting the tax charge The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Profit on ordinary activities before tax 3,099,314
Profit on ordinary activities multiplied by the standard rate of corporation tax in the UK of 23% 712,842
Effects of: Expenses not deductible for tax purposes 31,211 Income not taxable for tax purposes (920,000) Group relief given 175,947
Current tax charge
8.DIVIDENDS
Ordinary shares of ?1 each Interim 4,000,000

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ADVANCED INSULATION GROUP LIMITED
Notes to the Financial Statements - continued FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

9. FIXED ASSET INVESTMENTS Shares in
undertakings
COST Additions 51,950,295
At 30 September 2014 51,950,295
NET BOOK VALUE At 30 September 2014 51,950,295
The company's investments at the balance sheet date in the share capital of companies include the following:
Advanced Insulation Limited Nature of business: Oil and gas infrastructure support
Class of shares: holding Ordinary 100.00

Aggregate capital and reserves Profit for the period 2014.0
4484693.0 5634435.0
MS Assets Holdings Limited Country of incorporation: British Virgin Islands Nature of business: Intermediate holding company
Class of shares: holding Ordinary 100.00 2014.0
Aggregate capital and reserves 30,266
The shares are held by Advanced Insulation Limited.

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ADVANCED INSULATION GROUP LIMITED
Notes to the Financial Statements - continued FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

9. FIXED ASSET INVESTMENTS - continued
Advanced Insulation Systems Limited Nature of business: Oil and gas industry infrastructure support % Class of shares: holding Ordinary 100.00

Aggregate capital and reserves Profit for the period

2014.0 ? 7882328.0 3844127.0 The shares are held by Advanced Insulation Limited.
Advanced Insulation Contracting Limited Nature of business: Oil and gas industry infrastructure support % Class of shares: holding Ordinary 100.00

Aggregate capital and reserves Profit for the period

2014.0 ? 514521.0 1545394.0 The shares are held by Advanced Insulation Limited.
Advanced Insulation Systems do Brazil Ltda Country of incorporation: Brazil Nature of business: Oil and gas industry infrastructure support % Class of shares: holding Ordinary 100.00 2014.0 ? Aggregate capital and reserves Loss for the period 57356.0 -98297.0
51% of the shares are held by Advanced Insulation Limited and 49% by Advanced Insulation Systems Limited.
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ADVANCED INSULATION GROUP LIMITED
Notes to the Financial Statements - continued FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

9. FIXED ASSET INVESTMENTS - continued
Advanced Insulation Angola Lda Country of incorporation: Angola Nature of business: Oil and gas industry infrastructure support
Class of shares: holding Ordinary 49.00

Aggregate capital and reserves Profit for the period
Advanced Insulation Angola Lda is 49% owned but 100% controlled by Advanced Insulation Limited, which has entitlement to 100% of the profits.
Advanced Insulation Korea Limited Country of incorporation: South Korea Nature of business: Oil and gas industry infrastructure support
Class of shares: holding Ordinary 75.00 2014.0
2014.0
6197.0 15434.0 Aggregate capital and reserves Profit for the period

The shares are held by Advanced Insulation Systems FZE, who are entitled to 100% of the profits.
Advanced Insulation Systems FZE Country of incorporation: United Arab Emirates Nature of business: Oil and gas industry infrastructure support
Class of shares: holding Ordinary 100.00

Aggregate capital and reserves Profit for the period

The shares are held by MS Assets Holdings Limited.

464056.0 398514.0 2014.0
1683439.0 658497.0
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ADVANCED INSULATION GROUP LIMITED
Notes to the Financial Statements - continued FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

9. FIXED ASSET INVESTMENTS - continued
Contraflex Kazakhstan Country of incorporation: Kazakhstan Nature of business: Oil and gas industry infrastructure support
Class of shares: holding Ordinary 50.00 2014.0
Aggregate capital and reserves Profit for the period 207559.0 206217.0
50% of the shares are held by Advanced Insulation Limited, which is entitled to 70% of the profits.
Manuplas Limited Nature of business: Oil and gas industry infrastructure support
Class of shares: holding Ordinary 100.00 2014.0
Aggregate capital and reserves Profit for the period

The shares are are held by Advanced Insulation Limited.
Alderley Materials Limited Nature of business: Dormant
Class of shares: holding Ordinary 100.00
The shares are held by Advanced Insulation Limited.
Al Consultants Inc Country of incorporation: Canada Nature of business: Alternative energy research
Class of shares: holding Ordinary 100.00
The shares are held by Advanced Insulation Limited.

201222.0 201222.0
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ADVANCED INSULATION GROUP LIMITED
Notes to the Financial Statements - continued FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

10.DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Amounts owed by group undertakings 4,019,132 VAT 90,321 Prepayments and accrued income 107
4109560.0
11.CRED1TOFtS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors 50,532 Amounts owed to group undertakings 2,708,924 Social security and other taxes 19,542 Other creditors 4,031 Accrued expenses 702,249
3485278.0
12.CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Loan notes 26,828,914
Falling Due in 2- 5 Years
"A"Loan Notes with a 6% coupon rate ?7,500,000
Interest accruing on the loan note is capable of being settled (at the option of Advanced Insulation Group Limited) in cash or by way of payment in kind notes (PIK's), subject to the right to opt out of PIK on the part of the loan note holder, or by being capitalised and added to the debt balance.
Falling Due After 5 Years
"B"Loan Notes with an 8% coupon rate ?10,380,000 "C"Loan Notes with a 10% coupon rate ?8,948,914
19328914.0
Interest accruing on the loan note is capable of being settled (at the option of Advanced Insulation Group Limited) in cash or by way of payment in kind notes (PIK's), subject to the right to opt out of PIK on the part of the loan note holder, or by being capitalised and added to the debt balance.

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ADVANCED INSULATION GROUP LIMITED
Notes to the Financial Statements - continued FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

13. CALLED UP SHARE CAPITAL
Allotted, issued and fully paid: Number: Class: Nominal value: 26,646,381 Ordinary ?1 26,646,381
26,646,381 Ordinary shares of ?1 each were allotted and fully paid for during the year through the following consideration:
i)?433,500 in cash ii)?48,500 in part consideration for the acquisition by the company of certain shares in Advanced Insulation Limited iii)?26,164,381 of the capitalisation of debt owed by the company to Advanced Insulation Holdings Limited held in the form of unsecured Rollover Loan Notes.
14. RESERVES Profit
account

Profit for the period 3,099,314 Dividends (4,000,000) At 30 September 2014 (900,686)

15.PENSION COMMITMENTS
At the year end, contributions of ?4,031 had yet to be paid to the pension provider.
16.RELATED PARTY DISCLOSURES
The company is controlled by Advanced Insulation Holdings Limited which is the ultimate parent company.
The company considers S H Shepherd to be the ultimate controlling party by virtue of his majority shareholding in Advanced Insulation Holdings Limited, the ultimate parent company.
As the company is a wholly owned subsidiary within a group that prepares consolidated financial statements, the company has taken advantage of the exemption from disclosing transactions with group entities.
The loan notes issued to Growth Capital Partners attract a mix of interest that is payable and rolled up with capital. During the period, the loan notes held by Growth Capital Partners attracted the following interest:
- Interest paid on A Loan Notes - ?237,946 -Interest paid on BI Loan Notes - ?356,326 -Interest paid on B2 Loan Notes - ?82,762 - Interest accrued on C Loan Notes - ?473,189

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ADVANCED INSULATION GROUP LIMITED
Notes to the Financial Statements - continued FOR THE PERIOD 16 JANUARY 2014 TO 30 SEPTEMBER 2014

17.ULTIMATE CONTROLLING PARTY
In the opinion of the directors the company's ultimate parent company is Advanced Insulation Holdings Limited, a company incorporated in Great Britain, and registered in England and Wales. Advanced Insulation Holdings Limited prepares group financial statements and copies can be obtained from Unit E Quedgeley West Business Park, Bristol Road, Gloucester, GL2 4PA.
18.RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS ? Profit for the financial period 3,099,314 Dividends (4,000,000) New share capital subscribed 26,646,381 Net addition to shareholders' funds Opening shareholders' funds
25745695.0 _ Closing shareholders' funds 25,745,695
Equity interests 25,745,695

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