REGISTERED NUMBER: 11039615 (England and Wales)

Financial Statements for the Year Ended 31 December 2022

for

METAL YAPI ENGINEERING (UK) LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

Mr Alper Guzelis

REGISTERED OFFICE:

124 City Road

London

EC1V 2NX

REGISTERED NUMBER:

11039615 (England and Wales)

AUDITORS:

BLS Burnells LLP

The Atrium

1 Harefield Road

Uxbridge

Middlesex

UB8 1EX

ACCOUNTANTS:

ADPL LLP

Chartered Certified Accountants

293 Green Lanes

Palmers Green

London

N13 4XS

CURRENT ASSETS

Stocks

46,124

51,632

Debtors

4

209,582

889,607

Cash at bank

17,695

77,123

273,401

1,018,362

CREDITORS

Amounts falling due within one year

5

1,799,199

988,718

NET CURRENT (LIABILITIES)/ASSETS

(1,525,798

)

29,644

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,525,798

)

29,644

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

(1,525,799

)

29,643

(1,525,798

)

29,644

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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

The financial statements were approved by the director and authorised for issue on 29 September 2023 and were signed by:

Mr Alper Guzelis - Director

1.	STATUTORY INFORMATION

Metal Yapi Engineering (UK) Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

In respect of long-term contracts, turnover represents the value of work done in the year, including estimates of amounts not invoiced and is reference to the stage of completion of each contract , once their outcome can be assessed with reasonable certainty. The profit recognised reflects the proportion of work completed to the Balance sheet on each project. Full provision is made for losses estimated by the directors on all contracts in the year in which the loss is first foreseen. Such estimates are based upon the director's experience and relevant professional advice.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other debtors and creditors, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade creditors or debtors, are measured, initially and subsequently, at the undiscounted amount of the cash and other consideration, expected to be paid or received.

However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The financial statements are prepared on a going concern basis.

The parent undertaking, ENG Metal Yapi Insaat Sanayi Ticaret A.S, registered in Turkey, has agreed to continue supporting the company. The directors have received a written undertaking from ENG Metal Yapi Insaat Sanayi Ticaret A.S, that this level of support will continue for the foreseeable future.

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

The stage of completion is measured by reference to the ratio of work performed to date to the total contract price.

Significant judgements and estimates

In the application of the company's accounting policies, the directors required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Recognition of revenue and profit is based on judgements made in respect of the ultimate profitability of a contract. Such judgements are arrived at through the use of estimates in relation to the costs and value of work performed to date and to be performed in bringing contracts to completion. The company has appropriate control procedures to ensure all estimated are determined on a consistent basis and subject to appropriate review and authorisation.

Revenue recognition on long term contract

Recognition of revenue and profit is based on judgement made in respect of the ultimate profitability of a contract. Such judgements are arrived at through use of estimates in relation to the costs and value of work performed to date and to be performed in bringing contracts to completion. The company has appropriate control procedures to ensure all estimates are determined on a consistent basis and subject to appropriate review an authorisation.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2021 - 2 ) .

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

as restated

£

£

Trade debtors

-

17,500

Amounts owed by group undertakings

28,206

-

Other debtors

169,574

259,589

Tax

-

29,541

VAT

-

4,084

Prepayments and accrued income

11,802

578,893

209,582

889,607

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

as restated

£

£

Trade creditors

478,702

26,238

Amounts owed to group undertakings

1,086,810

852,857

Tax

-

14,131

Irish tax

4,924

-

Social security and other taxes

8,386

1,924

Pension

514

358

VAT

6,407

-

Other creditors

-

1,753

Net wages

8,226

-

Provision for losses

170,980

-

Directors' current accounts

21,000

-

Accrued expenses

13,250

91,457

1,799,199

988,718

6.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Vishal Bhatt (Senior Statutory Auditor)

for and on behalf of BLS Burnells LLP

In auditing the financial statement, we have concluded that the directors use of going concern basis of accounting is based on the fact that the letter of support was received from the parent company.

Based on the figures we have identified the company made a loss of £1,555,443 and that lead to net current liabilities of £1,525,798 this leads to a position where there can be material uncertainty, outcome of the future is not known and if the support is not available or received the company may struggle to pay its short-term liabilities. Majority of the balance payable is to the group companies which is the parent company, they have confirmed that the balance will not be demanded in the near future till the company shows positive results and has positive cash flow.

Based on the explanation and supporting letters provided, explained in note 2 of the notes to the accounts we have not modified the report but feel this needs to be made aware to the user of the financial statement.

7.	RELATED PARTY DISCLOSURES

Included in amounts owed to group undertakings is a balance of £1,086,810 (2021: £832,411) payable to Eng Metal Yapi Insaat Taahhut Sanayi Dis Ticaret, receivable £26,586 (2021: £12,041 payable) to Metal Yapi (UK) Ltd, NIL (2021: £8,405) to S&G Construction Srl and receivable of £1,620 (2021: NIL) from Metal ve Yapi Sistemleri A.S

8.	ULTIMATE CONTROLLING PARTY

The company's immediate parent company is Eng Metal Yapi Insaat Taahur Sanayi Di Ticaret and the immediate parent company is part of the larger group whose ultimate parent company is Metal Yapi Holding A.S (Turkey).