2020 Annual Report & Notice of 2021 AGM

Modification flexibility for clients

GMS' vessels are built to be as flexible as possible allowing the Company to compete for a wide share of the market, helping it to maximise utilisation levels and charter day rates. The Group is capable of modifying assets to satisfy client requirements.

Continuous communication with clients

The Group maintains strong relationship with its clients through continuous communication and a history of providing safe and reliable services.

Business segment and geographical diversity

The Group has established businesses outside its core Middle Eastern markets (particularly in the North Sea), and outside of oil and gas (renewables). It is continually reviewing opportunities looking to diversify its market footprint through increasing the client base.

Vessel monitoring

The Group has procedures in place, such as the Planned Maintenance System, to ensure that the vessels undergo regular preventative maintenance. The Group's robust operating standards result in minimal downtime.

Renegotiation of bank facilities

The Group recently announced improved terms on its bank facilities and plans for raising a minimum of US$ 25 million of new equity (net) by 30 June 2021, with the remaining balance of up to US$ 75 million in total by the end of 2022. The need to obtain shareholder approval and raise the first tranche of US$ 25 million of equity by 30 June 2021 to avoid an event of default indicates a material uncertainty that may cast significant doubt as to the Group's ability to continue as a going concern. Notwithstanding this material uncertainty, the Directors believe that there is good reason to believe that there will be sufficient shareholder support to complete the first equity raise on time. Refer to Note 3 of the consolidated financial statements.

Beyond that, the Board is focused on sustaining operational excellence while enhancing performance and utilisation of GMS' assets to explore and secure new opportunities. This will be key to driving improved profitability and cash flow, which is expected to deliver shareholder confidence and a higher share price.

Local content requirements

GMS embraces local content requirements, with a long history of operating for NOCs in the Middle East and established offices in each of the MENA countries the Group operates. The Group actively manages its supply chain to ensure that they also are focused on maximising local content and where necessary will work with local partners in specific markets to ensure it positions itself in the best possible position to win work. Often during the tendering process companies with a higher audited local content score are given the offer of first refusal to price match any lower bids

during tendering.

Market knowledge and operational expertise

The Group has a track record of established long-term relationships in the MENA region which provides an understanding of clients' requirements and operating standards.

Safety awareness

Safety and reliability are top priorities and are underpinned by the HSEQ management

system and a strong safety-focused culture. Management ensures appropriate safety

practices and procedures; disaster recovery plans and insurance cover of all commercial contracts in place.

All of our vessels are designed to withstand extreme weather events as specified by the Class Society.

Training and compliance

Our employees undergo continuous training on operational best practices.

Scheduled maintenance

The Group follows regular maintenance schedules on its vessels and the condition of the vessels is consistently monitored.

Business continuity plan

The Group has in place a business continuity management plan which it regularly maintains.

Insurance

The Group regularly liaises with insurance brokers to ensure sufficient coverage is in place.

Liquidity management

The Group continues to manage liquidity carefully through focusing on receivables collections and managing the timing of supplier payments.

Cost management

The Group has implemented a comprehensive cost reduction programme, removing over US$ 20 million of annualised costs in order to generate higher EBITDA and increased cash to service debt. Continual review of costs and search for further efficiencies is ongoing.

Minimising capital expenditure

The Group is focused on restricting capital expenditure to essential spending only, to ensure the safe and reliable operations of its vessels.

Covenant compliance

The management team and Board regularly examine future covenant compliance based on the latest forecasts and take necessary actions to avoid any potential where a future breach of covenant is forecast.

Communication and engagement

Communication has remained a key practice of management, especially during the COVID-19 pandemic. During the year, the focus for employees has been on safety and wellbeing through working remotely, regular testing and enhanced cleaning procedures.

In 2021, Rashed Al Jarwan was appointed as the new Workforce Engagement Director, explicitly tasked with monitoring the level of engagement and alignment across the organisation.

Remuneration Policy

The Short-Term Incentive Plan (STIP) is based on a single Business Scorecard to ensure all staff are incentivised around delivering a single set of common goals.

Equal opportunities

GMS is engaged in fair and transparent recruitment practices. It has a zero-tolerance policy towards discrimination, and provides equal opportunities for all employees.

Resource planning

The Group is in the process of identifying critical roles and preparing plans to ensure smooth transition in case of changes in personnel.

Refer to the Governance Report on pages 34 to 37 for details of changes at the Board level and assessment of what skills the new Board brings to GMS.

Emergency response planning and insurance

For all our major assets and areas of operation, the Group maintains emergency

preparedness plans. It regularly reviews the insurance cover over the Group's assets

to ensure adequate cover is in place.

Workforce planning and monitoring

Workforce planning and demographic analysis is completed in order to increase diversity.

Code of Conduct

The Group has a Code of Conduct which includes anti-bribery and corruption policies, and all employees are required to comply with this Code when conducting business on behalf of the Group. Employees are required to undergo in-house training on anti-corruption. All suppliers are pre-notified of anti-bribery and corruption policies, and required to confirm compliance with these policies.

Regulations

A central database is maintained which documents all of GMS' policies and procedures which comply with laws and regulations within the countries in which we operate. On specialist topics, the Group makes use of external advisers, where appropriate. A dedicated Company Secretary is in place to help monitor compliance, in particular with regard to UK legal and corporate governance obligations.

External review

The Internal Audit function helps ensure compliance with GMS policies, procedures,

internal controls and business processes. The Group's vessels are also audited by external bodies such as the American Bureau of Shipping (ABS).

Hygiene measures

GMS implemented extensive hygiene control and prevention measures across the fleet and onshore offices. Clients have adopted similar measures, in many cases in compliance with strict government directives in force across the countries in which the Group operates.

COVID-19 vaccinations

COVID-19 vaccines are available in some of the countries where GMS operates and have been made available to staff, both onshore and offshore.

Offshore rotations

Crew rotations have been extended as a temporary measure to minimise impact of quarantine requirements of some clients.

Vessel maintenance

The Group has in place a strict management of change process, which ensures where it has been unable to have equipment tested, inspected or certified offshore, due to the availability of suitably qualified personnel offshore, that an appropriate risk management process is in place.

Contract delays

Through strong relationships with its client base, GMS is in regular communication around any operational delays that are expected that could impact the Group. In such circumstances and with client agreement, GMS will seek other opportunities to utilise the fleet and minimise the financial impact on all parties.

Cybersecurity monitoring and defence

GMS operates multi-layer cyber-security defences which are monitored for effectiveness to ensure they remain up to date.

GMS engages with third party specialists to provide security services.